title-11•Title 11 — Counties and Municipal Corporations
# Title 11 — Counties and Municipal Corporations
## **Title 1** Provisions Applicable to Counties Only
### **Chapter 1** General Provisions
##### **§ 11-1-1** Number and Names of Counties {#sec-11-1-1 omnilex-key=us-al-statutes--title-11--11-1-1}
The state is divided into 67 counties, named: Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Colbert, Conecuh, Coosa, Covington, Crenshaw, Cullman, Dale, Dallas, DeKalb, Elmore, Escambia, Etowah, Fayette, Franklin, Geneva, Greene, Hale, Henry, Houston, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone, Lowndes, Macon, Madison, Marengo, Marion, Marshall, Mobile, Monroe, Montgomery, Morgan, Perry, Pickens, Pike, Randolph, Russell, Shelby, St. Clair, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington, Wilcox, and Winston.
*(Code 1852, §25; Code 1867, §26; Code 1876, §23; Code 1886, §23; Code 1896, §1396; Code 1907, §121; Code 1923, §179; Code 1940, T. 12, §1.)*
##### **§ 11-1-2** County Declared a Body Corporate {#sec-11-1-2 omnilex-key=us-al-statutes--title-11--11-1-2}
Every county is a body corporate, with power to sue or be sued in any court of record.
*(Code 1852, §763; Code 1867, §897; Code 1876, §815; Code 1886, §886; Code 1896, §1397; Code 1907, §123; Code 1923, §181; Code 1940, T. 12, §3.)*
##### **§ 11-1-3** Jurisdiction Over Navigable Streams Not Within Limits of Any County; Execution of Process on Said Streams {#sec-11-1-3 omnilex-key=us-al-statutes--title-11--11-1-3}
The jurisdiction over navigable streams not included within the limits of any county belongs to the county or counties whose jurisdiction extends to the margin thereof, and all process may be executed on such streams by officers of either county.
*(Code 1852, §24; Code 1867, §25; Code 1876, §27; Code 1886, §27; Code 1896, §1400; Code 1907, §128; Code 1923, §207; Code 1940, T. 12, §175.)*
##### **§ 11-1-5** Uniform Designation for County Governing Bodies {#sec-11-1-5 omnilex-key=us-al-statutes--title-11--11-1-5}
(a) In order to eliminate confusion and to provide clarity and uniformity of designation, each county governing body in this state shall, after October 1, 1970, be designated and known as the __________ county commission.
(name of county)
(b) The provision of this section shall effect a change in name only and shall in no way affect the existing organization, establishment, composition, function, power, duties, authority, compensation, term, or manner of electing the members of any governing body in this state.
(c) The governing bodies of the several counties of this state are hereby authorized and directed to promulgate such rules and regulations and to initiate such procedures as are necessary to implement the provisions of this section.
*(Acts 1970, Ex. Sess., No. 26, p. 2628, §§1-3.)*
##### **§ 11-1-6** Transfer of Money Erroneously Paid into County Treasury, Etc., to State Treasury {#sec-11-1-6 omnilex-key=us-al-statutes--title-11--11-1-6}
Whenever any money to which the state is entitled and which should be paid into the State Treasury is erroneously or wrongfully paid into the county treasury to the credit of any fund therein or whenever any money from any source is in the county treasury and belongs to the state, the county commission in such county shall draw a warrant in favor of the person whose duty it is to collect and pay said money into the State Treasury, and it shall be the duty of the person in whose favor the warrant is drawn to collect said money and pay it into the State Treasury as in other cases.
*(Code 1907, §122; Code 1923, §180; Code 1940, T. 12, §2.)*
##### **§ 11-1-7** Appointment and Use of Public Depositories; Liability {#sec-11-1-7 omnilex-key=us-al-statutes--title-11--11-1-7}
(a) Upon the application of the county tax collectors, revenue commissioners, license commissioners, county treasurers, judges of probate, circuit court clerks, or registers of the circuit court, it shall be the duty of the county commission of the county to appoint a bank or savings association, that is a qualified public depository under Chapter 14A of Title 41, as a depository in which such officers may deposit money coming into their hands as such officers, which appointment shall be by proper resolutions spread upon the minutes of such commission.
(b) Upon the application of the custodian of county school funds, it shall be the duty of the county board of education of the county to appoint a bank or savings association that is a qualified public depository under Chapter 14A of Title 41, as a depository in which such officers may deposit money coming into their hands as such officers, which appointment shall be by proper resolution spread upon the minutes of such county school board.
(c) If and when a depository is or has been designated by the county board of education for the public school funds, or by the county commission for the funds of the tax collector, revenue commissioner, license commissioner, or county treasurer, the minimum amount of the bonds of such officers may be fixed at an amount not less than twice the amount of the average daily balance of funds on hand under the control of such office during that month in the preceding fiscal year when such average daily balance was greatest, but not to exceed a maximum of one hundred thousand dollars ($100,000).
(d) If any of such funds are dissipated or lost by reason of the insolvency or failure of such qualified public depository appointed as such depository, as provided herein, such dissipation or loss shall not constitute a liability on the official bond of such officers nor a liability on the sureties thereon.
(e) In the event of this dissipation or loss of any of such funds because of such insolvency or failure of such depository, the county and state shall have a preferred claim against such qualified public depository for the amount of such dissipation or loss.
(f) In the event of the naming of such depository for the county tax collector, revenue commissioner, or license commissioner of any county and the use of such depository by him, such county tax collector shall make reports, distributions, and remittances to the proper authorities of the funds so deposited on October 15 of each year and on the first and fifteenth of each month thereafter until he or she makes his or her final settlement for such year; provided, that if, on the fifteenth day of any month following final settlement and before October 15 following, the tax collector, revenue commissioner, or license commissioner has on hand collections in an amount equal to one half of his or her official bond, he or she shall make reports, distributions, and remittances to the proper authorities in like manner as now required by law, these reports, distributions, and remittances to be in addition to those now required of such officer by Section 40-5-36.
(g) The provisions of this section are not exclusive but cumulative and remedial, and this section shall not be construed as abolishing any other method or manner now provided by law for the making of official bonds of county officers or handling funds of county officers coming into their hands as such officers. Nothing in this section shall relieve any public official from making official bonds as is now required by law, nor from liability thereon except as is provided by this section.
*(Acts 1933, Ex. Sess., No. 60, p. 51; Acts 1933, Ex. Sess., No. 191, p. 203; Acts 1935, No. 531, p. 1119; Acts 1936, Ex. Sess., No. 141, p. 101; Code 1940, T. 12, §4; Code 1940, T. 41, §78; Acts 1949, No. 634, p. 975; Acts 1959, No. 159, p. 684; Acts 1971, 3rd Ex. Sess., No. 83, p. 4295; Acts 1975, No. 1121, §1; Act 2000-748, p. 1669, §2.)*
##### **§ 11-1-8** Closing of County Offices on Legal Holidays and for Special Circumstances; Deadlines Extended for Filing Documents {#sec-11-1-8 omnilex-key=us-al-statutes--title-11--11-1-8}
The county commission of any county in the State of Alabama may by resolution close the offices in the county courthouse or other county buildings on legal holidays set pursuant to Section 1-3-8, or for special circumstances deemed necessary or appropriate. Notice of the closing shall be posted at the courthouse and shall be published otherwise in the manner as the county commission may direct. In the event that any documents required to be filed by a time certain deadline cannot be filed in a timely manner due to the closing of an office under this section, the deadline for filing shall be extended to the date that the office is reopened as provided in Section 1-1-4.
*(Acts 1945, No. 74, p. 72; Acts 1967, No. 418, p. 1079; Act 2007-488, p. 1037, §1.)*
##### **§ 11-1-9** Payment of Costs of Defense of Lawsuits Against County Officials; Validation of Prior Payments {#sec-11-1-9 omnilex-key=us-al-statutes--title-11--11-1-9}
(a) Any law to the contrary notwithstanding, the county commission of any county of the state of Alabama may, in its discretion, defray the costs of defending any lawsuit brought against any county official when such lawsuit is based upon and grows out of the performance by said official of any duty in connection with his office and does not involve a willful or wanton personal tort or a criminal offense committed by the official. The expenses of defending such litigation may include witness fees, transportation, toll and ferry expenses of witnesses, attorney’s fees, court costs, and any other cost in connection with the defense of said litigation.
(b) If any county has expended money for the purposes set out in subsection (a) of this section, such expenditure is hereby validated and shall not be charged back to the official making such payment nor shall the person who received such payment be liable for any reimbursement of same.
*(Acts 1967, No. 92, p. 422.)*
##### **§ 11-1-10** Contracts with Federal, State, and Other County Governments {#sec-11-1-10 omnilex-key=us-al-statutes--title-11--11-1-10}
(a) The county commission in addition to all other powers and authority is hereby authorized and empowered to enter into contracts, leases, compacts, or any other form of agreement with the United States of America or any of its agencies, departments, bureaus, divisions, or institutions, with the State of Alabama or any of its agencies, departments, bureaus, divisions, or institutions and with any other county or municipality within or without the state for the purpose of receiving or acquiring funds, matching funds, services, materials, supplies, buildings, structures, waterways and docking facilities, and any and all other benefits deemed for the public interest in the promotion of industrial, agricultural, recreational, or any other beneficial development.
(b) The contracts, leases, compacts, or other forms of agreement may contain such covenants and considerations as considered reasonable and necessary and for public use only, including, but not limited to, contributions by the county either in funds or materials, supplies, machinery, services, labor, rights-of-way, easements, buildings, terminals, and related facilities for waterway improvements and expansion and may contain other provisions required by the contracting agencies to provide a useful and feasible development for use by the public.
*(Acts 1973, No. 1122, p. 1890; Act 2015-53, §1.)*
##### **§ 11-1-11** Payment of Membership Fees in State Organizations, Etc., for Sheriffs, Tax Assessors, Tax Collectors, Circuit Clerks and Registers, License Commissioners, Etc {#sec-11-1-11 omnilex-key=us-al-statutes--title-11--11-1-11}
(a) The county commissions of the several counties of the state are hereby authorized to pay all dues, fees, and expenses of the sheriffs, tax assessors, tax collectors, circuit clerks and registers and license commissioners, or other like officials in their respective counties that are incurred by such individuals through membership in and/or attendance at official functions of their state organizations.
(b) Such dues, fees, and expenses may be paid from the general fund of each county.
(c) Membership dues and fees may be paid by remittance to the secretary/treasurer of such organization upon presentation of a statement therefor.
(d) Expenses may be remitted directly to the individual concerned upon presentation of an itemized statement, supported by receipts, indicating actual expenses incurred. Such statement may be properly sworn to and notarized.
*(Acts 1973, No. 1281, p. 2194.)*
##### **§ 11-1-12** Preparation, Etc., of County Assessment Maps or Plats {#sec-11-1-12 omnilex-key=us-al-statutes--title-11--11-1-12}
The county commissions shall have prepared county assessment maps or plats showing the county boundary lines, main creeks, rivers, railroads, exempt lands, public roads, schoolhouses, and churches and all lands which have escaped state and county taxation for the next preceding five years in their respective counties, and which shall also show all subdivisions of lands made for the assessment of taxes or other purposes and shall pay for the same out of the county treasury.
*(Code 1907, §157; Code 1923, §249; Code 1940, T. 12, §227.)*
##### **§ 11-1-13** Alteration, Etc., of Precinct or Beat Lines or Creation of New Precincts or Beats {#sec-11-1-13 omnilex-key=us-al-statutes--title-11--11-1-13}
The county commissions of the several counties of the State of Alabama may alter or rearrange the boundary of beat or precinct lines of their respective counties so as to include in them any territory which has been or may be detached from one county and added to another or they may in their discretion create a new precinct or beat in said county out of the territory added to said county and detached from an adjoining county.
*(Acts 1932, Ex. Sess., No. 174, p. 201; Code 1940, T. 12, §228.)*
##### **§ 11-1-14** Provision of Voting Places Where Precinct or Beat Lines Altered, Etc., or New Precincts or Beats Created {#sec-11-1-14 omnilex-key=us-al-statutes--title-11--11-1-14}
The county commissions of the several counties of the State of Alabama may provide voting places in all precincts or beats which have been established or where the boundaries of precincts or beats have been altered or rearranged as provided in Section 11-1-13.
*(Acts 1932, Ex. Sess., No. 174, p. 201; Code 1940, T. 12, §229.)*
##### **§ 11-1-15** Authority to Join National and State Association of County Commissions {#sec-11-1-15 omnilex-key=us-al-statutes--title-11--11-1-15}
(a) The county commission of each of the several counties of the state shall be authorized to join and to participate in a national and state association of county commissions organized for the purpose of promoting better county government, economy, efficiency in office, and representing the interests of the several counties before state departments, the state Legislature, and the United States Congress.
(b) The county commissions of the several counties shall be authorized to appropriate for the maintenance and support of such associations such sums as it may deem necessary and appropriate.
*(Acts 1975, No. 1219, §§1, 2.)*
##### **§ 11-1-16** Warrants for Borrowing Purposes - Execution {#sec-11-1-16 omnilex-key=us-al-statutes--title-11--11-1-16}
All warrants issued under the provisions of this title for borrowing purposes shall be signed by the presiding officer of the county commission and by each of the members of said county commission and shall have attached thereto the seal of said county commission. Coupons for interest need be signed only by such presiding officer.
*(Code 1923, §6787; Code 1940, T. 12, §82.)*
##### **§ 11-1-17** Warrants for Borrowing Purposes - Form of Warrants, Refunding Warrants, Coupons, Etc {#sec-11-1-17 omnilex-key=us-al-statutes--title-11--11-1-17}
(a) Warrants. The warrants issued under this title for borrowing purposes may be substantially in the following form, which is declared to be sufficient:
The State of Alabama, County of _______ $________Warrant Number _______
The County of _____ acknowledges itself indebted and promises to pay to _______, or order, on the _______ day of _______, 2__, for value received, the sum of _______ dollars, with interest at the rate of _______ percent per annum at the proper depository of the county.
This warrant is issued pursuant to law and an order of the county commission of the said county, who represent that all provisions of law have been complied with and that this warrant is legal in all respects.
In testimony whereof, we, the undersigned presiding officer and members of the county commission of said county have hereunto set our hands and affixed the seal of said county commission, this the _______ day of _______, 2__.
(b) Retiring, adjusting, or refunding warrants. The retiring, adjusting, or refunding warrants issued under this title may be in substantially the following form, which is declared to be sufficient: The State of Alabama,Retiring, adjusting, or refunding warrants.County of _______ Warrant Number _____Number _____
The county of _____ will pay to the registered holder hereof, or his registered transferee or indorsee, at the proper county depository, the sum of $_____, on the _____ day of _____, 2__.
This debt bears interest at the rate of _____ percent per annum payable annually (or semiannually), evidenced by the _____ interest coupons hereto attached (if coupons are attached) each in the sum of $_____ (if the right is reserved to retire the certificate before maturity, the following may be added: The right is reserved to retire this debt at any interest period, or as the case may be).
This warrant is issued pursuant to law and an order of the county commission of said county, who represent that all provisions of law have been complied with and that this warrant is legal in all respects.
In testimony whereof, we, the undersigned presiding officer and members of the county commission of said county, have hereunto set our hands and affixed the seal of said county commission, this the _____ day of _____, 2__.
(c) Coupons. The coupons attached to said warrant may be in substantially the following form, which is declared to be sufficient: County of _______, AlabamaWarrant Number _____This interest coupon is a part of the attached warrant and entitles the registered holder thereof, or his registered transferee or indorsee, upon proper endorsement of this coupon, to the sum of $_____, on the _____ day of _____, 2__.
*(Code 1923, §6788; Code 1940, T. 12, §83.)*
### **Chapter 2** Bonds of County Officers, Employees, Etc., Generally
#### **Article 1** General Provisions
##### **§ 11-2-1** Bonds Requirements {#sec-11-2-1 omnilex-key=us-al-statutes--title-11--11-2-1}
(a) For the purposes of this chapter, the following words have the following meanings:
(1) COUNTY EMPLOYEE. An employee or clerk, deputy, or employee in any county office, but shall not mean an employee of the county board of education.
(2) COUNTY OFFICIAL or COUNTY OFFICER. A county commissioner, county taxing official, judge of probate, sheriff, coroner, or constable.
(3) COUNTY TAXING OFFICIAL. A tax assessor, tax collector, revenue commissioner, license commissioner, or other person charged by law in a county with the assessing or collecting of taxes.
(b) All county officials of all counties in this state and any county employee designated by law or the county commission shall be required to execute official bonds for the faithful performance of their duties and such additional official bonds as from time to time the public interest may demand and as may be required by the provisions of law. Except for a local taxing official executing bond pursuant to Section 40-4-1 or 40-5-3, any official bond executed on behalf of a county official or county employee on and after May 22, 2009, shall be made payable to the county treasury.
(c)(1) In addition to the foregoing, the county commission may require any person appointed by the county commission to serve as director or member of any public board or commission to execute an official bond for the faithful performance of his or her duties on the public board or commission, which bond shall be in an amount set by the county commission and made payable to the board or commission upon which the person will serve.
(2) The governing body of any public board or commission created by the county commission may require an official bond for the faithful performance of his or her duties from any person employed by the public board or commission, which bond shall be set by the governing body of the board or commission and payable to the board or commission employing the person.
(d) Any official bond executed under this section shall be obligatory on the principal and sureties for any of the grounds set out in Section 36-5-18, and in the event of forfeiture, the proceeds shall be distributed to the state or county fund or funds entitled to payment or reimbursement as a result of the breach of office. Payment shall be made to each eligible entity in proportion to the loss of or reduction in public funds caused by the breach of office resulting in the forfeiture.
*(Acts 1932, Ex. Sess., No. 290, p. 284; Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §73; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-2** Conditions of Bonds; Provisions of Law Governing Bonds {#sec-11-2-2 omnilex-key=us-al-statutes--title-11--11-2-2}
The bonds required to be made of county officials by the provisions of this Code shall be conditioned as now provided by law and shall in all respects be subject to and governed by the provisions of law governing, regulating, concerning, and pertaining to official bonds, except as may be in conflict with provisions of this article.
*(Acts 1932, Ex. Sess., No. 290, p. 284; Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §74.)*
##### **§ 11-2-3** Filing and Recordation of Bonds of County Officers and Employees {#sec-11-2-3 omnilex-key=us-al-statutes--title-11--11-2-3}
The bonds of all county officers and county employees required by the provisions of this Code, with the exception of the bond of the judge of probate, shall be filed and recorded in the office of the judge of probate, and the bond of the judge of probate shall be filed and recorded in the office of the clerk of the circuit court, and duplicate copies of the bonds of the probate judge and tax assessor and tax collector shall be filed with the comptroller.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §82.)*
##### **§ 11-2-4** Payment of Premiums on Bonds {#sec-11-2-4 omnilex-key=us-al-statutes--title-11--11-2-4}
Except as otherwise provided by law or in this section, the premiums on all bonds of all county officials and county employees required by this chapter, when made by surety companies shall be paid by the respective counties out of the general funds of the county. The premiums on the bonds of county taxing officials shall be paid on a pro rata basis by each fund, except the State General Fund, or agency receiving noneducational ad valorem taxes paid in the county determined by computing the percentage that the total collections for each fund, except the State General Fund, or agency bears to the total collections of noneducational ad valorem taxes. The premiums on the bonds of the superintendent of education and of the chief school financial officer of the county shall be paid by the board of education of the county out of the three mill school tax.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §96; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-5** Reduction of Bonds {#sec-11-2-5 omnilex-key=us-al-statutes--title-11--11-2-5}
Whenever, in the judgment of the board of education of any county the amount of the bond of the superintendent of education or of the chief school financial officer is greater than is necessary, the board of education may reduce the amount of the bond, but not below the minimum fixed by this chapter. A resolution to that effect shall be adopted by the board and spread upon its minutes and a certified copy thereof served upon all of the obligors in the bond. The liability of the obligors under the bond reduced for any breach occurring after the reduction shall not exceed the amount of the bond as reduced. In event of the reduction, the obligors shall refund to the board of education the pro rata net unearned premium on the amount of the reduction.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §85; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-6** Bonds to Be Made by Surety or Guaranty Companies; Time for Filing; Expiration {#sec-11-2-6 omnilex-key=us-al-statutes--title-11--11-2-6}
Official bonds required of all county officials or county employees of the various county commissions, boards, agencies, and commissions or any additional bond that may be required shall be made by a surety company or surety companies or a guaranty company or guaranty companies authorized by the laws of this state to make bonds and qualified to do business in this state. Section 36-5-2 notwithstanding, the bond for a county official shall be filed no later than the date that the official takes office or, in the case of appointment to an office, within five working days of the date the appointment is made. County officials and county employees required to post bond shall be required to renew or execute a new official bond at any time that the original bond expires as a result of the end of a term of office or otherwise.
*(Acts 1965, 2nd Ex. Sess., No. 126, p. 179, §1; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-7** Discharge of Sureties on Bonds {#sec-11-2-7 omnilex-key=us-al-statutes--title-11--11-2-7}
Any person or corporation who is surety upon the official bond of any county official or county employee may discharge himself or itself of the suretyship upon making sworn application in writing addressed to the official, county commission, board, or commission required to approve the bonds, setting forth the reason for requesting discharge. Upon the filing of the application, the official, board, or commission to whom the application is addressed shall forthwith cause personal written notice to be served upon the county official or county employee as principal fixing a day not less than 15 nor more than 30 days after the date of the filing of the application requiring the county official or county employee to provide a new bond. Upon the failure of the county official or county employee to provide the bond within the time specified in the notice, he or she vacates his or her office or employment, and the official, county commission, board, or commission giving the notice shall at once certify the vacation to the appointing power required by law to fill the vacancy. If a new bond is filed, it shall be in the amount and filed and approved as provided in this chapter. On the execution, approval, and filing of the new bond, the original surety is discharged from all liability for any breach of the bond occurring thereafter, but the discharge shall not affect the liability of any of the obligors for any actions or inactions occurring prior to the execution, approval, and filing of the new bond. In case of the discharge of any one or more obligors under this section, the discharge shall operate as a discharge of all other obligors on the bond. When the sureties on either bond have made any payments thereon on account of the principal obligor therein, they are entitled to the same remedies and recoveries against the sureties in the remaining bonds as provided in Section 11-2-29. Every such new or additional bond approved and filed as provided in this section is binding upon the obligors from the time of its approval and subjects them to the same liabilities, proceedings, and remedy as are provided in relation to the first official bond of the county official or county employee.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §97; Act 2009-744, p. 2229, §1.)*
#### **Article 2** Requirement of New or Additional Bonds
##### **§ 11-2-20** Requirement of Additional Bonds of County Officials, Etc. - Authority {#sec-11-2-20 omnilex-key=us-al-statutes--title-11--11-2-20}
(a) Except where otherwise specifically provided by law for county taxing officials and judges of probate, the bond for each county official shall be one-half of one percent of the amount budgeted in the then current county budget for activities conducted by or under the direction of the individual county official, but the bond amount for any county official shall not exceed fifty thousand dollars ($50,000). The bond for any county employee required to post bond shall be set in an amount determined proper by the county commission. In the alternative, the county commission may execute a blanket bond covering the performance of duties of all county employees in an amount determined by the county commission to adequately protect all county funds and revenue.
(b) When in the judgment of the county commission, the bond provided for in this chapter for a county official or county employee is insufficient to fully protect the public interests and safeguard the public funds, the county commission may require the county official or county employee to make an additional bond in the amount and with the sureties as may be approved by resolution of the county commission.
(c) When, in the judgment of the county school board, the bond of the superintendent of education or the chief school financial officer of the county is insufficient either in penalty or surety to fully safeguard the public school funds, the county school board shall require the officer to make additional bonds in the amounts and with the sureties as may be approved by the board.
*Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §83; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-21** Requirement of Additional Bonds of County Officials, Etc. - Procedures {#sec-11-2-21 omnilex-key=us-al-statutes--title-11--11-2-21}
Whenever any county commission or county board of education, pursuant to this article, requires any additional bond from any county official, county employee, or employee of the board of education, the requirement shall be adopted by resolution of the county commission or board of education signed by the chair and personally served on the county official, county employee, or employee of the board of education required to give additional bond. The resolution shall state the amount of additional bond required when and where to give such bond. The official or employee shall give additional bond within 15 days after the date specified in the resolution, or vacates his or her office or employment if he or she fails to comply.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §84; Act 2009-744, p. 2229, §1.)*
##### **§ 11-2-22** Requirement of Additional Bonds for County Officers Whose Terms Extended - Authority; Amount, Conditions, Effect, Etc., of Bonds Generally {#sec-11-2-22 omnilex-key=us-al-statutes--title-11--11-2-22}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1907, §1527; Code 1923, §2661; Code 1940, T. 41, §60.)*
##### **§ 11-2-23** Requirement of Additional Bonds for County Officers Whose Terms Extended - Form and Contents of Requisition for County Officer’s Bond; Service of Same {#sec-11-2-23 omnilex-key=us-al-statutes--title-11--11-2-23}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §137; Code 1867, §176; Code 1876, §186; Code 1886, §281; Code 1896, §3113; Code 1907, §1529; Code 1923, §2663; Code 1940, T. 41, §61.)*
##### **§ 11-2-24** Requirement of Additional Bonds for County Officers Whose Terms Extended - When Bond to Be Given; Effect of Failure to Give Bond and Proceedings Thereupon {#sec-11-2-24 omnilex-key=us-al-statutes--title-11--11-2-24}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §138; Code 1867, §177; Code 1876, §187; Code 1886, §282; Code 1896, §3114; Code 1907, §1530; Code 1923, §2664; Code 1940, T. 41, §62.)*
##### **§ 11-2-25** Requirement of Additional Bonds for County Officers Whose Terms Extended - Failure of Officer to File Bond Within Prescribed Time After Approval {#sec-11-2-25 omnilex-key=us-al-statutes--title-11--11-2-25}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §§140, 149; Code 1867, §§179, 188; Code 1876, §§4164, 4165; Code 1886, §3955; Code 1896, §5157; Code 1907, §7450; Code 1923, §5042; Code 1940, T. 41, §63.)*
##### **§ 11-2-26** Requirement of Additional Bonds for County Officers Whose Terms Extended - Penalty, Conditions, Etc., of Bond {#sec-11-2-26 omnilex-key=us-al-statutes--title-11--11-2-26}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §139; Code 1867, §178; Code 1876, §188; Code 1886, §283; Code 1896, §3115; Code 1907, §1531; Code 1923, §2665; Code 1940, T. 41, §64.)*
##### **§ 11-2-27** Requirement of Additional Bonds for County Officers Whose Terms Extended - Effect of Additional Bond Generally; Remedies on Additional Bond {#sec-11-2-27 omnilex-key=us-al-statutes--title-11--11-2-27}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §141; Code 1867, §180; Code 1876, §189; Code 1886, §284; Code 1896, §3116; Code 1907, §1532; Code 1923, §2666; Code 1940, T. 41, §65.)*
##### **§ 11-2-28** Requirement of Additional Bonds for County Officers Whose Terms Extended - Effect of Execution of Additional Bond Upon Official Bonds Previously Executed {#sec-11-2-28 omnilex-key=us-al-statutes--title-11--11-2-28}
In no case provided for under section 11-2-22 shall any of the official bonds previously executed be discharged; but each remains of the same force and obligation as if the additional bonds had not been given, and any person aggrieved can have his remedy upon either or all of such bonds in the same or in separate proceedings.
*(Code 1852, §142; Code 1867, §181; Code 1876, §190; Code 1886, §285; Code 1896, §3117; Code 1907, §1533; Code 1923, §2667; Code 1940, T. 41, §66.)*
##### **§ 11-2-29** Requirement of Additional Bonds for County Officers Whose Terms Extended - Rights and Remedies of Sureties on Bonds Among Themselves {#sec-11-2-29 omnilex-key=us-al-statutes--title-11--11-2-29}
In any case when an additional bond has been required, the sureties in either bond, who may have been compelled to make any payment thereon for the principal obligor, have the same remedies against the sureties in the remaining bonds as cosureties have against each other and may recover against such sureties such an amount as shall be in the same proportion to the sum paid by the plaintiff as the aggregate penalty of the two bonds bears to the penalty of the bond of the defendant, apportioning the same among the solvent sureties.
*(Code 1852, §143; Code 1867, §182; Code 1876, §191; Code 1886, §286; Code 1896, §3118; Code 1907, §1534; Code 1923, §2668; Code 1940, T. 41, §67.)*
##### **§ 11-2-30** Proceedings as to Sufficiency of Bonds of Certain County Officers - Application by County Freeholders for Order Requiring New Bond {#sec-11-2-30 omnilex-key=us-al-statutes--title-11--11-2-30}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1876, §192; Code 1886, §287; Code 1896, §3119; Code 1907, §1535; Code 1923, §2669; Code 1940, T. 41, §68.)*
##### **§ 11-2-31** Proceedings as to Sufficiency of Bonds of Certain County Officers - Oath and Bond of Applicants {#sec-11-2-31 omnilex-key=us-al-statutes--title-11--11-2-31}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1876, §196; Code 1886, §291; Code 1896, §3123; Code 1907, §1539; Code 1923, §2673; Code 1940, T. 41, §69.)*
##### **§ 11-2-32** Proceedings as to Sufficiency of Bonds of Certain County Officers - Appointment of Date for Hearing of Application; Hearing; Entry of Order Requiring Officer to Execute New Bond {#sec-11-2-32 omnilex-key=us-al-statutes--title-11--11-2-32}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1876, §193; Code 1886, §288; Code 1896, §3120; Code 1907, §1536; Code 1923, §2670; Code 1940, T. 41, §70.)*
##### **§ 11-2-33** Proceedings as to Sufficiency of Bonds of Certain County Officers - Filing of Application, Order, and Minutes of Proceedings {#sec-11-2-33 omnilex-key=us-al-statutes--title-11--11-2-33}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1876, §194; Code 1886, §289; Code 1896, §3121; Code 1907, §1537; Code 1923, §2671; Code 1940, T. 41, §71.)*
##### **§ 11-2-34** Proceedings as to Sufficiency of Bonds of Certain County Officers - Proceedings Upon Failure of Officer to Execute New Bond Within Prescribed Time {#sec-11-2-34 omnilex-key=us-al-statutes--title-11--11-2-34}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1876, §195; Code 1886, §290; Code 1896, §3122; Code 1907, §1538; Code 1923, §2672; Code 1940, T. 41, §72.)*
### **Chapter 2A** Compensation of County Officials
##### **§ 11-2A-1** Categorization of Counties {#sec-11-2a-1 omnilex-key=us-al-statutes--title-11--11-2A-1}
(a) For purposes of determining the amount of annual compensation that a county shall pay to a county commissioner, the chair of a county commission, a judge of probate, a sheriff, a tax assessor, a tax collector, a revenue commissioner, a license commissioner, or an elected assistant tax assessor or collector, the 67 counties of the state shall be placed in categories based on population according to the 1990 federal decennial census.
(b) The population categories of counties are as follows:
(1) CATEGORY 1. Population of 450,000 or greater.
(2) CATEGORY 2. Population from 350,001 to 449,999.
(3) CATEGORY 3. Population from 200,001 to 350,000.
(4) CATEGORY 4. Population from 50,001 to 200,000.
(5) CATEGORY 5. Population from 19,000 to 50,000.
(6) CATEGORY 6. Population of less than 19,000.
*(Act 2000-108, p. 148, §1; Act 2026-238, §1.)*
##### **§ 11-2A-2** Annual Compensation of Certain Local Officials {#sec-11-2a-2 omnilex-key=us-al-statutes--title-11--11-2A-2}
(a) The annual compensation which a county shall pay to a county commissioner, the chair of a county commission, a judge of probate, a sheriff, a tax assessor, a tax collector, a revenue commissioner, a license commissioner, and an elected assistant tax assessor or collector shall be the annual base compensation paid to the holder of the office on May 31, 2026.
(b) Unless otherwise provided by law, no individual holding supernumerary office shall be entitled to any increases in compensation or expenses as a result of the implementation of any salary adjustments provided for in this chapter.
(c)(1) If implementation of the salaries in this chapter increases the salary of an incumbent office holder, the increase shall be paid as an expense allowance until the beginning of the next term of office whereupon the amount of the expense allowance shall be included in the base salary for the office holder and the expense allowance shall be voided. Deductions from the increase shall be made for supernumerary programs as provided by law as if the increase were salary.
(2) Notwithstanding subdivision (1), a county shall pay the salary increase during a term of office at the beginning of the next fiscal year if payment of the increase is sanctioned by an amendment to the Constitution of Alabama of 2022.
(d) Notwithstanding this section or any other provision of this chapter, the increases in fees under Section 12-19-90 provided for by Act 2000-108 shall not apply to any county in Category 1 or 3 on June 1, 2000.
*(Act 2000-108, p. 148, §2; Act 2001-344, p. 446, §1; Act 2001-697, p. 1487, §§1, 2; Act 2026-238, §1.)*
##### **§ 11-2A-3** Additional Compensation {#sec-11-2a-3 omnilex-key=us-al-statutes--title-11--11-2A-3}
**THIS SECTION WAS REPEALED BY ACT 2026-238, EFFECTIVE JUNE 1, 2026.**
*(Act 2000-108, p. 148, §3; Act 2026-238, §2.)*
##### **§ 11-2A-4** Compensation Increases {#sec-11-2a-4 omnilex-key=us-al-statutes--title-11--11-2A-4}
(a)(1) The local officials covered by this chapter shall be entitled to receive the same uniform increases in compensation, whether the uniform increases are based on a percentage of compensation or a flat dollar amount, which are granted equally to all full-time county employees by the county commission. The increases shall be in the same amount or percentage, as the case may be, as that amount or percentage increase provided to the county’s employees and shall apply to the official’s base salary and to any expense allowance the official receives pursuant to this subdivision.
(2) If the implementation of this chapter increases the compensation of an incumbent office holder, the increase shall be paid as provided in Section 11-2A-2.
(3) The base compensation of any local official initially elected or appointed after July 1, 2025, shall be the compensation of the immediately prior officeholder including any uniform increases received by the prior officeholder, but excluding any compensation based on the previous office holder’s longevity or that was awarded based on merit, including, but not limited to, a local merit system. Any official shall continue to be entitled to receive uniform increases in compensation as provided in subdivision (1).
(4) If a county commission grants a uniform increase to all county employees other than those employees serving their probationary period, the increase shall qualify as a uniform increase to all county employees for the purposes of this subsection.
(5) A merit-based increase shall not qualify as a uniform increase unless all county employees receive the same percentage or dollar increase.
(6) In a county with a classification system for employees which includes annual step raises for each classification of employee, the step raises shall be considered a uniform increase for the purposes of this section if the steps are based on a uniform dollar amount or percentage and the service credits for elected officials are calculated and administered in the same manner as other employees.
(b) Any provision of this chapter to the contrary notwithstanding, the Legislature, by local law, may increase the compensation for local officials covered under this chapter.
(c)(1) Any local official whose compensation is tied to compensation of a state official shall not be entitled to receive any uniform increases in compensation under this chapter.
(2) Any provision of any local law enacted prior to the 2026 Regular Session which contradicts subdivision (1) shall be invalid once the individual serving in that office on May 31, 2026, vacates that office.
(3) Following the 2025 Regular Session, no local law may authorize a local official to receive uniform increases in contradiction to subdivision (1).
(4) Beginning with the next term of office following October 1, 2025, the compensation of any local official subject to a local law that sets his or her compensation in whole or in part on the salary of a circuit or district judge shall be calculated using the base amounts in Section 12-10B-1, and any adjustment based on service or longevity must be based on the actual time in office of the local official.
*(Act 2000-108, p. 148, §4; Act 2016-335, §1; Act 2025-324, §1; Act 2026-238, §1.)*
##### **§ 11-2A-5** Relation to Section 40-6A-2 {#sec-11-2a-5 omnilex-key=us-al-statutes--title-11--11-2A-5}
This chapter shall be read in pari materia with Section 40-6A-2. All compensation paid under the provisions of this chapter to tax assessors, tax collectors, revenue commissioners, license commissioners, elected assistant tax assessors, or elected assistant tax collectors, or any official whose salary is prorated under the provisions of Section 40-6A-2, shall continue to be prorated and paid from the same funds and in the same manner as provided under that section.
*(Act 2000-108, p. 148, §5.)*
##### **§ 11-2A-6** Increase to Compensation Exceeding Minimums {#sec-11-2a-6 omnilex-key=us-al-statutes--title-11--11-2A-6}
**THIS SECTION WAS REPEALED BY ACT 2026-238, EFFECTIVE JUNE 1, 2026.**
*(Act 2000-108, p. 148, §6; Act 2026-238, §2.)*
##### **§ 11-2A-7** Applicability of Article {#sec-11-2a-7 omnilex-key=us-al-statutes--title-11--11-2A-7}
**THIS SECTION WAS REPEALED BY ACT 2026-238, EFFECTIVE JUNE 1, 2026.**
*(Act 2000-108, p. 148, §7; Act 2001-697, p. 1487, §§1, 2; Act 2026-238, §2.)*
##### **§ 11-2A-8** Judge of Probate - Income Cap Inapplicable {#sec-11-2a-8 omnilex-key=us-al-statutes--title-11--11-2A-8}
**THIS SECTION WAS REPEALED BY ACT 2026-238, EFFECTIVE JUNE 1, 2026.**
*(Act 2000-108, p. 148, §8; Act 2026-238, §2.)*
### **Chapter 3** County Commission
#### **Article 1** General Provisions
##### **§ 11-3-1** Qualifications of Candidates for County Commissioner; Vacancies; Composition of Commission; Meetings {#sec-11-3-1 omnilex-key=us-al-statutes--title-11--11-3-1}
(a) Any person who is a qualified elector of the county and has resided in the county for at least one year prior to the date upon which he or she would take office is eligible to seek office as county commissioner. In counties where the county commissioners represent a certain district, any person seeking office as county commissioner shall be a qualified elector of and reside within the district which he or she seeks to represent upon election or appointment for at least one year prior to the date that he or she would take office. Notwithstanding the foregoing, the one-year residency requirement provided above shall not apply to the first election following any redistricting of county commission districts in a county. Any person serving as county commissioner, at all times while in office, shall meet the qualified elector and residency requirements set out herein, and in the case of a district commissioner shall reside in the district as it existed at the time of his or her election.
(b) Unless a local law authorizes a special election, any vacancy on the county commission shall be filled by appointment by the Governor. If the appointment occurs at least 30 days before the closing of party qualifying as provided in Section 17-13-5, the person appointed to the vacated office shall only serve until seven days after the next general election following the appointment as provided herein. The person so appointed to fill the vacancy shall meet the residency requirements in subsection (a), and shall hold office from the date of appointment until the eighth day following the next general election. If the original term in which the vacancy occurred would not have expired on the eighth day following the next general election after the appointment, the person elected at the election required by operation of this subsection shall serve for a period of time equal to the remainder of the term in which the vacancy was created. Thereafter, election for the county commission seat shall be as otherwise provided by law.
(c) Unless otherwise provided by local law, by court order, or governed by Section 11-80-12, and as otherwise provided in subsection (d), there shall be in every county a county commission, composed of the judge of probate, who shall serve as chairman, and four commissioners, who shall be elected at the time prescribed by law and shall hold office for four years until their successors are elected and qualified.
(d) Notwithstanding any other provision of law related to election canvassing, certification, or contest, the term of office for county commissioner shall commence at 12:00 a.m. on the second Wednesday following the general election at which he or she is elected and shall expire at 11:59 p.m. on the first Tuesday following the day of the general election at which the successor to that office is elected.
(e) Each county commission shall meet on the Wednesday following the election and tabulation of provisional ballots pursuant to Section 17-10-2 of any one of its members whose term commences on that day pursuant to subsection (d), and at this meeting, shall establish the regular meeting days for the county commission as provided in Section 11-3-8. The meeting shall be in lieu of any meeting of the county commission required by law to be held within the same calendar week and shall be in all respects and for all purposes a regular meeting of the county commission. The county commission shall not meet following the election of any one of its members until the meeting provided by this subsection, unless there is a declared emergency.
An emergency may be declared for the purposes of this subsection upon a unanimous vote of the entire membership of the county commission.
(f) Except as specifically provided in subsections (b) and (c), this section applies in all counties and may not be altered or amended by local law. Any existing local law or portion thereof in conflict with this section is specifically repealed to the extent of the conflict effective with the next election following September 1, 2007. It is the intent of the foregoing that a portion of a local law in direct conflict with this section shall be repealed, and any remaining portions of the local law not in conflict shall remain in full force and effect.
*(Code 1852, §697; Code 1867, §825; Code 1876, §739; Code 1886, §819; Code 1896, §951; Code 1907, §3306; Code 1923, §6748; Code 1940, T. 12, §5; Acts 1980, No. 80-808, p. 1663; Acts 1989, No. 89-301, §1; Acts 1997, No. 97-640, p. 1170, §1; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-1.1** Authority of Single-Member District Commissioners to Alter District Boundaries {#sec-11-3-1.1 omnilex-key=us-al-statutes--title-11--11-3-1.1}
(a) Following the release of any federal decennial census, any county commission of this state which is at that time electing its members from single-member districts, pursuant to either state or local law or a court order, may, by resolution, alter the boundaries of the districts.
(b) Any revised single-member district arrangement to be used, in whole or in part, in the 1992 primary and general election shall be adopted by the county commission not later than 75 days prior to the primary election in 1992. Any revised district arrangement to be used, in whole or in part, for the first time in any year after 1992 shall be approved by the county commission not later than 180 days prior to the primary election in which it will first be used.
(c) No resolution making changes in the boundaries of existing districts shall be adopted by the county commission unless the commission shall first have advertised in a newspaper of general circulation in the county for at least two consecutive weeks the time and place of the meeting at which the resolution shall be considered. The advertisement shall include one or both of the following items: (1) A map of the county indicating the proposed district boundaries. (2) Notification that a map indicating the proposed district boundaries is available for inspection at a specified public location where the map shall be displayed for at least two consecutive weeks preceding the meeting of the commission in which the resolution shall be considered.
(d) Any resolution making changes in district boundaries shall describe the revised district boundaries by reference to standard census units or county voting precincts, or both.
(e) Upon passage of any resolution effecting changes in district boundaries pursuant to this section, the county commission shall file with the judge of probate of the county a certified copy of the resolution, together with a map of the county showing the boundaries of the revised districts.
*(Acts 1992, 1st Ex. Sess., No. 92-1, p. 3, §§1-5.)*
##### **§ 11-3-1.2** Contesting County Commission Redistricting or Reapportionment Actions {#sec-11-3-1.2 omnilex-key=us-al-statutes--title-11--11-3-1.2}
Any legal action which contests or challenges the validity of any county commission redistricting or reapportionment action by a county commission pursuant to its authority under Section 11-3-1.1, or seeks to require the county commission to exercise its authority pursuant to Section 11-3-1.1, shall be commenced in the circuit court of the county for which the county commission redistricting or reapportionment plan was or allegedly should have been adopted.
*(Act 2001-728, 2nd Sp. Sess., p. 206, §3.)*
##### **§ 11-3-3** Bond of Commissioners {#sec-11-3-3 omnilex-key=us-al-statutes--title-11--11-3-3}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Acts 1932, Ex. Sess., No. 290, p. 284; Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §75; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-2** Eligibility of Commissioners to Serve on Public Boards, Etc {#sec-11-3-2 omnilex-key=us-al-statutes--title-11--11-3-2}
(a) Subject to the restrictions of Section 280 of the Constitution of Alabama of 1901, and the laws of this state, any member of a county commission may be appointed to and may serve on public boards, commissions, and authorities within this state unless otherwise prohibited by law. Except where otherwise specifically authorized or required by general state or federal law, only one member from a particular county commission may serve on any particular public board, commission, or authority. Notwithstanding the foregoing, this subsection shall not be interpreted to authorize a county commission to appoint a member to serve on the board of any authority, corporation, or association organized pursuant to Chapter 21 of Title 22 unless the appointment is authorized in the articles of incorporation of the authority, corporation, or association.
(b) All service on a board, commission, or authority by a member of a county commission prior to September 1, 2007, meeting the requirements of subsection (a) and all actions taken by any member of a county commission acting in his or her official capacity on the board, commission, or authority are ratified and confirmed.
(c) A member of a county commission shall not be reimbursed for expenses by both the public board, commission, or authority, and the county commission on which he or she serves. The member may elect to be reimbursed from either the public board, commission, or authority, or the county commission.
*(Code 1852, §699; Code 1867, §827; Code 1876, §741; Code 1886, §821; Code 1896, §953; Code 1907, §3308; Code 1923, §6750; Code 1940, T. 12, §7; Acts 1945, No. 355, p. 574; Act 99-703; 2nd Sp. Sess., p. 220, §1; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-4** Reimbursement of Travel Expenses of Commissioners {#sec-11-3-4 omnilex-key=us-al-statutes--title-11--11-3-4}
Each member of the county commission, including the judge of probate when he or she serves as chair of the county commission shall be entitled to reimbursement of all actual travel expenses, other than mileage, and mileage at the mileage rate allowed by the Internal Revenue Code for income tax deduction while traveling in his or her personal vehicle within or outside of the county, in performing the duties of the office of county commissioner. Reimbursement shall be paid on warrants drawn on the county treasury on the order of the county commission provided he or she presents proper documentation of such expenses under procedures adopted by the county commission and in compliance with Article 1, commending with Section 36-7-1, of Chapter 7 of Title 36. This section shall not operate to repeal or amend any local law affecting any county with respect to the matters contained in this section. In the discretion of the county commission, the mileage reimbursement authorized herein may be paid out of the county gasoline tax revenues when the mileage is incurred by a member while occupied in the discharge of his or her duties in inspecting, accepting, building, repairing, or supervising any of the county roads or bridges. Travel reimbursement based on number of miles traveled and/or actual expenses incurred shall not be deemed to constitute salary compensation under this section, Section 11-3-4.1, or Chapter 2A of this title.
*(Code 1852, §697; Code 1867, §825; Code 1876, §739; Code 1886, §834; Code 1896, §967; Code 1907, §3322; Code 1923, §6771; Acts 1939, No. 662, p. 1049, §1; Code 1940, T. 12, §28; Acts 1953, No. 880, p. 1182; Acts 1959, No. 172, p. 697; Acts 1980, No. 80-808, p. 1663; Acts 1991, No. 91-550, p. 1013, §1; Act 2004-519, §1.)*
##### **§ 11-3-4.1** Compensation of Commissioners {#sec-11-3-4.1 omnilex-key=us-al-statutes--title-11--11-3-4.1}
(a) For the purposes of this section, Section 11-3-4, and Chapter 2A of this title, the following terms shall have the following meanings:
(1) COUNTY COMMISSION CHAIRMAN. Those persons elected or appointed to such office by any and all lawful means but, except where specifically provided, shall not include those persons who serve as chair by virtue of their having been elected or appointed as judge of probate of the county.
(2) COMPENSATION. All salary, expense allowance, or any other compensation received for serving as commissioner or chair of the county commission, but shall not include any reimbursement for mileage traveled or actual and necessary expenses incurred which are otherwise payable by law.
(3) LOCAL LAW. Any and all applicable statutes that apply to any part of the state which is less than the whole and shall include statutes otherwise known as “general laws of local application” or “population bracket acts.”
(b) No county commissioner shall receive compensation for serving as such officer, that is less than $14,600.00 per year. No county commission chairman shall receive compensation for serving as such officer, that is less than $18,600.00 per year.
(c) No county commissioner that is required by local law to serve full time as county commissioner, shall receive compensation for serving as such officer, that is less than $25,000.00 per year. No county commission chairman that is required by local law to serve full time as county commission chairman, shall receive compensation for serving as such officer, that is less than $30,000.00 per year.
(d) The provisions of this section shall in no way affect the compensation of county commissioners or county commission chairmen whose compensation is in excess of the minimum provided herein. Nor shall such provisions in any way affect subsequent local laws or general laws which provide compensation in excess of such minimums. Nor shall such provisions apply unless approved by a resolution of the county governing body. The resolution to adopt the pay raise must be published in the local newspaper for four consecutive weeks before the commission takes final action on the resolution. The provisions of this section shall in no way affect the compensation of judges of probate. All compensation affected hereby shall be payable from the respective county’s general fund or any other fund from which the officer’s compensation may now be paid by law.
(e) The provisions of this section which serve to increase any commissioner’s or county commission chair’s compensation shall not take effect until the first day of the next term of office for the official; provided however where the county commission members’ terms do not run concurrently, any increase provided under this section shall become effective as to all the members thereof immediately after the expiration of the term or terms of office of the member or members whose term or terms first expire.
(f) This section shall be read in para materia with Chapter 2A of this title and where a county is covered by the provisions of that chapter, this section shall be applicable only for the purpose of the calculation of annual minimum compensation to be paid to a county commissioner pursuant to subdivision (2) of Section 11-2A-2.
*(Acts 1982, No. 82-552, p. 912; Acts 1985, No. 85-365, p. 309; Act 2004-519, §1.)*
##### **§ 11-3-5** Awarding of Contracts, Etc., with Related Family and Business Interests; Employment of Family Members {#sec-11-3-5 omnilex-key=us-al-statutes--title-11--11-3-5}
(a) Except where a contract for goods or services is competitively bid regardless of whether bidding is required under Alabama’s competitive bid law, no member of any county commission and no business with which any county commissioner is associated shall be a party to any contract with the county commission on which he or she serves. Except where a contract for goods or services is competitively bid regardless of whether bidding is required under Alabama’s competitive bid law, no county commission shall award any contract to a family member of a county commissioner. Under no circumstances shall a county commissioner participate in the bid preparation or review of a bid received from the county commissioner, a business with which he or she is associated, or a family member of the county commissioner and a county commissioner shall not deliberate or vote on acceptance of a bid submitted by the county commissioner, a business with which he or she is associated, or a family member of the county commissioner.
(b) No county commissioner shall employ a family member to do any work for the county; provided, however, the family member of a county commissioner may be employed by the county if the family member is hired pursuant to a county personnel policy that does not require a vote of the county commission or if the county commissioner does not participate in the hiring process through recommendation, deliberation, vote, or otherwise.
(c) Any county commissioner in violation of this section shall be guilty of a Class A misdemeanor.
(d) In compliance with Section 36-25-11, any contract executed with a member of the county commission or with a business with which a county commissioner is associated shall be filed with the Ethics Commission within 10 days after the contract has been executed. Any contract executed in violation of this section shall be void by operation of law and any person employed by the county in violation of this section shall forfeit his or her employment by operation of law. For the purposes of this section, the definition of family member shall be the same as the definition in subdivision (15) of Section 36-25-1 for the family member of a public official.
*(Acts 1923, No. 477, p. 630; Code 1923, §5076; Code 1940, T. 12, §29; Act 2015-53, §1.)*
##### **§ 11-3-6** Vacancies {#sec-11-3-6 omnilex-key=us-al-statutes--title-11--11-3-6}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Code 1852, §698; Code 1867, §826; Code 1876, §740; Code 1886, §820; Code 1896, §952; Code 1907, §3307; Code 1923, §6749; Code 1940, T. 12, §6; Act 2004-455, p. 809, §1.)*
##### **§ 11-3-7** Quorum {#sec-11-3-7 omnilex-key=us-al-statutes--title-11--11-3-7}
A majority of members serving on a county commission shall constitute a quorum. A judge of probate or chair elected countywide shall be considered a member of the county commission for purposes of determining a quorum. No ordinance, resolution, policy, or motion shall be voted on and approved by a county commission unless a quorum is present in the meeting chamber while the vote is taken and the matter is approved by an affirmative vote of the majority of the members present and voting, unless otherwise required by Alabama law.
*(Code 1852, §700; Code 1867, §828; Code 1876, §742; Code 1886, §822; Code 1896, §954; Code 1907, §309; Code 1923, §6751; Code 1940, T. 12, §8; Acts 1980, No. 80-808, p. 1663; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-8** Scheduling of Regular and Special Meetings {#sec-11-3-8 omnilex-key=us-al-statutes--title-11--11-3-8}
(a) At the first county commission meeting held pursuant to Section 11-3-1 following each election of county commissioners, the county commission shall establish the day or days of each month on which regular meetings of the county commission shall be held. A county commission, by resolution, may alter the regular meeting days as necessary. The regular meeting days and the time and place where the meetings will be held shall at all times be posted in a public and conspicuous location in the courthouse and in other public buildings determined appropriate by the county commission and shall be forwarded to all local news media who have on file with the county commission a written request for notification of the schedule of regular meetings of the county commission.
(b) A county commission may schedule a special meeting when determined necessary in writing by a majority of the members of the commission, or in case of an emergency, upon call of the chair. The purpose for and agenda of the meeting shall be included in all public notices of the meeting, and no other items shall be considered at the special meeting. Upon scheduling, except in an emergency, at least five days prior to the special meeting, notice of the meeting time, place, and agenda shall be posted in a public and conspicuous location in the courthouse and in other public buildings determined appropriate by the county commission and shall be forwarded to all local news media who have on file with the county commission a written request for notification of special meetings of the county commission.
(c) When a regular meeting day of a county commission falls on a legal public holiday, the county commission may meet on any day of the following week instead of on the holiday, or at another time determined by the county commission, provided that at least five days prior to the meeting, notice of the meeting time and place shall be posted in a public and conspicuous location in the courthouse and in other public buildings determined appropriate by the county commission and shall be forwarded to all local news media who have on file with the county commission a written request for notification of the schedule of regular meetings of the county commission.
(d) All meetings scheduled and held as provided herein shall be deemed to be in compliance with the notice provisions of Chapter 25A of Title 36.
*(Code 1852, §701; Code 1867, §829; Code 1876, §743; Code 1886, §823; Code 1896, §955; Code 1907, §3310; Acts 1919, No. 467, p. 703; Code 1923, §6752; Acts 1939, No. 577, p. 932; Code 1940, T. 12, §9; Act 2004-384, p. 639, §1; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-8.1** Meetings When Regular Meeting Day Falls on Holiday {#sec-11-3-8.1 omnilex-key=us-al-statutes--title-11--11-3-8.1}
*[Repealed]*
Repealed by Act 2004-384, p. 639, §2, effective May 3, 2004.
*(Acts 1980, No. 80-703, p. 1422.)*
##### **§ 11-3-9** Special Meetings {#sec-11-3-9 omnilex-key=us-al-statutes--title-11--11-3-9}
*[Repealed]*
Repealed by Act 2004-384, p. 639, §2, effective May 3, 2004.
*(Code 1852, §702; Code 1867, §830; Code 1876, §744; Code 1886, §824; Code 1896, §956; Code 1907, §3311; Code 1923, §6753; Code 1940, T. 12, §10; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-3-10** Authority as to Establishment, Etc., of Roads, Bridges, Ferries, Etc {#sec-11-3-10 omnilex-key=us-al-statutes--title-11--11-3-10}
The county commission shall possess authority in relation to the establishment, change, or discontinuance of roads, bridges, causeways, and ferries within the county, except where otherwise provided by law, to be exercised in conformity with the provisions of this Code.
*(Code 1852, §703; Code 1867, §831; Code 1876, §745; Code 1886, §825; Code 1896, §957; Code 1907, §3312; Code 1923, §6754; Code 1940, T. 12, §11.)*
##### **§ 11-3-11** Powers and Duties Generally {#sec-11-3-11 omnilex-key=us-al-statutes--title-11--11-3-11}
(a) The county commission shall have authority:
(1) To direct, control, and maintain the property of the county as it may deem expedient according to law, and in this direction and control it has the sole power to locate the courts in the rooms of the courthouse and to designate the rooms to be occupied by the officers entitled to rooms therein, including the circuit judge if resident in the county, and to change the location of the courts and the designation of the rooms for officers as it may deem best and most expedient, and this shall be done by order of the county commission entered upon the minutes of the county commission at a regular meeting of the county commission. In the event the courthouse is inadequate to supply office rooms for such officers, the county commission may lease such office rooms in a convenient location in the county site and pay the rental from the county fund.
(2) To levy a general tax, for general county purposes and a special tax, for special purposes, according to this Code.
(3) To examine, settle, and allow all accounts and claims chargeable against the county.
(4) To examine and audit the accounts of all officers having the care, management, collection, or disbursement of money belonging to the county or appropriated for its use and benefit.
(5) To make such rules and regulations for the support of the poor in the county as are not inconsistent with any law of the state.
(6) To punish for contempt by fine not exceeding $10.00 and imprisonment not exceeding six hours.
(7) To subpoena, examine, and compel the attendance of witnesses and the production of books and papers before the county commission in the same manner as the probate court.
(8) To contract for and have made map or plat books showing all subdivisions of land that have been heretofore or that may hereafter be made in the county.
(9) To compromise on such terms as it may deem just all doubtful claims in favor of the county when such claims arise on account of moneys heretofore paid in good faith by order of such county commission or in any case where they deem it to the best interest of the county.
(10) To make an appropriation, in no case to exceed $750.00 per year, to install and maintain an exhibit of the agricultural and mineral resources of the county.
(11) To pay at the regular legal rate for the advertising of notice and substance of local bills which may be introduced in the Legislature for the benefit of the county, or in reference to subjects or matters exclusively relating to county business or affairs.
(12) To procure and provide telephones for the offices of the circuit judge, the clerk and register of the circuit court, the sheriff and jailer, the tax assessor and tax collector and the judge of probate in the county, and to pay for the same out of the general funds of the county, and said county commission may, in like manner and for the same officers, establish telephones in both courthouses where the said officers maintain two offices in the county and must install such telephone upon the request of the officer entitled thereto.
(13) To make appropriations out of the county treasury to pay premiums on livestock that may be exhibited in livestock shows held in the county.
(14) To appropriate, where the state or federal authorities have taken up the works of farm demonstration or the organization of farm life clubs for the promotion of agriculture, such sum or sums as it may deem adequate and necessary for aiding in such work.
(15) To expend money for the purpose of improving the sanitary conditions of the county by laying trunk lines of sewers and constructing sewage disposal plants located in localities contiguous to thickly populated communities and to prescribe the terms on which the owners of houses or householders may connect with such lines of sewers, but no such lines of sewers shall be laid without the written approval of the executive officer of the State Board of Health, such approval to be based on the belief that the laying of any proposed line will materially improve health conditions. The county commission shall have the power to require owners of property in the county to connect to its sewer system any facilities used in the collection or disposal of sewage. If the owner of any property in the county fails to connect any such facility located on such property to such sewer within 10 days after delivery to the occupant of such property of written notice to make such connection, the county commission may cause such connection to be made and shall have the right to enter upon private property to the extent required to make such connection. The cost to the county of connecting to such system any facility used in the collection or disposal of sewage shall be reimbursed to the county by the owner of the property on which such facility is located, and the obligation of the owner of such property to pay such cost to the county shall be secured by a lien on such property to be collected as other debts are collected or liens enforced. The notice required by this subdivision shall be by personal service or by posting a notice on the premises. Any other provisions of this subdivision to the contrary notwithstanding, no county commission shall have the power to require any owner of property to connect to a county sewer system if (i) the property of such owner is served by any other sewer system as of the date (the “prospective connection date”) that the construction of such county sewer system has advanced to the point that operational sewer lines belonging to such system are adjacent to the property of such owner, (ii) the property of such owner is served by a septic tank installed as of the prospective connection date, or (iii) any building to be served by such county sewer system is located on the property of such owner at a distance greater than 200 feet from the collector line of such county sewer system.
(16) To appropriate money to promote or enforce the health and quarantine laws of the state for the benefit of the county and its inhabitants when requested so to do by the State Board of Health.
(17) To pay out of any funds in the county treasury all the expenses, including a reasonable attorney’s fee, incurred by the county treasurer in resisting the payment of any warrant where said resistance on the part of the county treasurer is successful.
(18) To set aside such part of the revenue of the county as may be deemed expedient for the purpose of creating a sinking fund for the payment of bonds or other indebtedness and to invest such sinking fund in such interest-bearing securities or deposit the same on interest-bearing account within the state as it may deem wise.
(19) To set aside, appropriate, and use county funds or revenues for the purpose of developing, advertising, and promoting the agricultural, mineral, timber, water, labor, and all other resources of every kind of the county and for the purpose of locating and promoting agricultural, industrial, and manufacturing plants, factories, and other industries in the county. The county commission is authorized to enter into contracts with any person, firm, corporation, or association to carry out the purposes set forth in this subdivision.
(20) To insure in solvent companies the courthouse, jail, machine shops, and other buildings of the county against loss by fire and storm and the trucks, tractors, machines, shovels, graders, equipment, vehicles, and other personal property of the county against loss by fire and theft and against liability for damages to persons and property. Payment of premiums on such insurance coverage shall be made from the general fund of the county, except that payments of premiums on insurance coverage on vehicles, items of equipment or other personal property used and employed exclusively in connection with the establishment, construction, repair, and maintenance of the public roads and bridges of the county may be made from the gasoline funds of the county and payments of premiums on insurance coverage on the courthouse, jail, machine shops, and other buildings of the county may be made from the proceeds of special taxes levied for erection, repairing, furnishing, or maintenance of public buildings, bridges, or roads. Payments heretofore made for these purposes are validated.
(21) To use convict labor and any county equipment or machinery or expend any necessary sum of money for the improvement, beautification, or decoration of the grounds, campus, or premises of any county school or schools under the control of the board of education in such county.
(22) To exercise such other powers as are or may be given by law.
(b) It shall be the duty of the county commission to provide a janitor for the courthouse and to see that the janitor keeps clean and in a sanitary condition all courtrooms, corridors, halls, and offices in the courthouse of the county.
*(Code 1852, §704; Code 1867, §832; Code 1876, §746; Code 1886; §826; Code 1896, §958; Code 1907, §3313; Acts 1909, No. 165, p. 236; Acts 1909, No. 179, p. 178; Acts 1915, No. 447, p. 384; Acts 1915, No. 489, p. 548; Acts 1915, No. 733, p. 845; Acts 1915, No. 830, p. 945; Acts 1919, No. 583, p. 839; Acts 1919, No. 618, p. 861; Acts 1920, No. 105, p. 152; Code 1923, §6755; Acts 1927, No. 75, p. 57; Acts 1931, No. 622, p. 759; Acts 1933, Ex. Sess., No. 184, p. 201; Code 1940, T. 12, §12; Acts 1945, No. 344, p. 560; Acts 1957, No. 750, p. 1184; Acts 1961, Ex. Sess., No. 45, p. 1898; Acts 1987, No. 87-767, p. 1495.)*
##### **§ 11-3-11.1** Authorization, Adoption, Levy, Assessment, Collection, or Enforcement of Excise, Privilege, or License Taxes Ratified {#sec-11-3-11.1 omnilex-key=us-al-statutes--title-11--11-3-11.1}
The action of the governing body of any county in levying, authorizing, adopting, assessing, collecting, and enforcing any excise, privilege, or license tax levied, assessed, collected, and enforced on the effective date hereof is hereby ratified, approved, validated, and confirmed, regardless of any defect which might exist in the authorization, adoption, levy, assessment, collection, or enforcement of any such tax, including, without limitation, defects in the adoption of any underlying act of the Legislature authorizing such authorization, adoption, levy, assessment, collection, or enforcement, any failure to publish any notice which might otherwise be required with respect to any of the foregoing, or any failure by any such governing body to comply with any statutory requirement with respect to any of the foregoing matters; provided that this section shall not apply to any such tax, the validity of which is on the effective date hereof being challenged in any proceeding pending in any court in this state.
*(Acts 1989, No. 89-151.)*
##### **§ 11-3-11.2** Collection of Local Taxes - County Commission {#sec-11-3-11.2 omnilex-key=us-al-statutes--title-11--11-3-11.2}
(a) The county commission may, by ordinance or resolution, administer and collect, or contract for the collection of, any local sales and use taxes or other local county taxes levied or authorized to be levied by a general or local act. Where the county commission provides by ordinance or resolution for the administration and collection of the local taxes, the collection of the local sales and use taxes shall occur at the same time as state sales and use taxes are due to be paid to the Department of Revenue, unless otherwise provided by law.
(b) Any county commission which elects to administer and collect, or contract for the collection of, any local sales and use taxes or other local taxes, shall have the same rights, remedies, power, and authority, including the right to adopt and implement the same procedures, as would be available to the Department of Revenue if the tax or taxes were being administered, enforced, and collected by the Department of Revenue. Any rules and regulations adopted or utilized by the county or its designee shall be consistent with the rules and regulations adopted through the provisions of the Alabama Administrative Procedure Act by the Department of Revenue for the corresponding state tax. If a specific provision of the rules and regulations of the Department of Revenue is inconsistent with a specific provision of a local act, resolution, or general law authorizing or levying a local tax, including a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), which was enacted or adopted prior to February 25, 1997, the local act, resolution, or general law provision shall prevail. Any taxpayer that possesses a direct pay permit issued by the Department of Revenue shall pay to the county the sales and use taxes and other county taxes pursuant to the direct pay permit in accordance with rules and regulations promulgated by the Department of Revenue.
(c) In any county in which there exists on February 25, 1997, a local act which authorizes a county commission only to contract with a designee to administer and enforce any tax enacted by the county, the tax or taxes shall continue to be collected and enforced by a designee pursuant to the provisions of the local act, unless the local act is amended to provide otherwise or repealed.
(d) A county commission which elects to administer and collect, or contract for collection of local taxes pursuant to subsection (a), may retain, as its fee for the cost of collection of its local taxes no more than five percent of the tax proceeds or the county’s actual cost of collection, whichever is less. Notwithstanding the previous sentence, in any county in which there exists on February 25, 1997, a local act which establishes or limits the amount which can be retained by the county for costs of collection or which limits the amount that can be paid by the county to a designee for providing collection and enforcement services, the provisions in the local act with regard to the costs and amounts shall continue to have force and effect unless the local act is amended to provide otherwise or is repealed.
*(Acts 1996, No. 96-471, p. 584, §§1-4; Act 98-192, p. 310, §3.)*
##### **§ 11-3-11.3** Collection of Local Taxes - Department of Revenue {#sec-11-3-11.3 omnilex-key=us-al-statutes--title-11--11-3-11.3}
(a) Counties may, upon request of the county commission, engage the Department of Revenue to collect and administer any county sales, use, rental, lodgings, tobacco, or other local taxes for which there is a corresponding state levy. Subject to subsections (d) and (e) below, the department shall collect and administer a county sales, use, rental, lodgings, tobacco, or other tax for which there is a corresponding state levy on behalf of the requesting county. Any county sales, use, rental, or lodgings tax levy administered and collected by the Department of Revenue pursuant to this section, whether the levy is imposed pursuant to the authority of Section 40-12-4, or any general, special, or local act of the Legislature, shall parallel the corresponding state tax levy, except for the rate of tax, and shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules, regulations, direct pay permits and drive-out certificate procedures, statutes of limitation, penalties, fines, punishments, and deductions as applicable to the corresponding state tax, except where otherwise provided in this section, including provisions for the enforcement and collection of taxes. The Department of Revenue shall make available to those counties for which it collects and administers a sales, use, rental, or lodgings tax collected and administered pursuant to this section the same services which are made available to municipal governments pursuant to Division 4 of Article 2 of Chapter 51 and Article 3 of Chapter 51.
(b) The department shall prepare and distribute those reports, forms, and other information as may be necessary to provide for its collection and administration of any county tax it collects and administers and, on request, shall make all reports available for inspection by the governing body of the county. In collecting and administering a county sales, use, rental, or lodgings tax, the department shall have all the authority and duties as it has in connection with the collection and administration of the corresponding state tax including, without limitation, the provisions of Chapters 2A, 12, 23, and 26 of Title 40.
(c)(1) The Commissioner of Revenue shall deposit into the State Treasury all county taxes collected and, on a bi-weekly basis, shall certify to the Comptroller the amount of taxes collected for the approximate two-week period immediately preceding the certification and the amount, less the department’s actual cost of collection and administration, to be distributed to each county and which shall be paid to the treasurer or other custodian of funds of the county within three days after certification thereof.
(2) The department shall charge each county the actual cost to the department for collecting and administering a tax. Notwithstanding the preceding sentence, however, the charge shall not exceed two percent of the amount collected for each county. At least once each month, the Comptroller shall issue a warrant to the department for the collection and administration charges due as determined by the Commissioner of Revenue. Payment shall be from funds collected under this section and shall be the actual cost of collection and administration, not to exceed two percent of the amount collected for each county.
(3) Notwithstanding any other provisions of law, the department shall not charge a fee to the county for the cost of filing, payment processing, and remittance services relating to any tax authorized to be filed under the ONE SPOT system of the department. References in this subsection to filing, payment processing, and remittance services shall mean and refer only to the ONE SPOT system to file and pay taxes authorized to be filed thereunder, and shall not include the collection and administration of local taxes as defined in subsection (i).
(4) Within 60 days after the end of each fiscal year, the department, in cooperation with the office of the Examiner of Public Accounts, shall recompute its actual costs for collection and administration of county taxes for the preceding fiscal year. Any collection and administration over-charge shall be redistributed to the counties for which the department collects and administers local taxes, on a pro rata basis of each county’s receipts. No under-charge shall be recovered, either directly or indirectly, from any county.
(d) Except where the department is collecting on July 1, 1998, any county which has a tax levy that will be collected and administered by the department pursuant to the provisions of this section shall forward a certified copy of the enabling ordinance or resolution to the department at least 60 days prior to the first day of the month on which it is to begin collecting and administering the tax.
(e) A new levy, or a levy changed by an amendment of a heretofore adopted levy, which will be collected and administered under this section shall not be subject to collection and administration by the department until the first day of the month following the expiration of 60 days after receipt by the department of a certified copy of the enabling ordinance or resolution with any amendment thereto.
(f) The department shall from time to time issue such rules for making returns and for ascertainment, assessment, collection, and administration of taxes subject to the provisions of this section as it may deem necessary to enforce its provisions and shall make available any municipal or county government a copy of those rules. Upon request, the department shall furnish any taxpayer with a copy of those rules.
(g) Any self-administered county governing body, as defined in Section 40-2A-3(21), may elect, by the adoption of an ordinance or resolution, to assess interest on any tax delinquency. Any such assessment of interest shall be consistent with the provisions of Section 40-23-2.1. Any self-administered county governing body may also elect, by the adoption of an ordinance or resolution, to pay interest on any refund of tax erroneously paid. In the event that the governing body elects to assess interest on any tax delinquency, the governing body must also elect to pay interest, at the same rate charged by the county on tax delinquencies, on any refund of tax erroneously paid. The applicable interest rate to be charged by or due from the county shall be determined pursuant to Section 40-1-44. References in this subsection to “erroneously paid” taxes on which interest shall be due to the taxpayer shall only mean and refer to taxes paid to the self-administered county or its agent as a result of any error, omission, or inaccurate advice by or on behalf of the self-administered county, including in connection with a prior examination of its books and records by the self-administered county or its agent.
(h) The applicable interest rate to be assessed on any tax delinquency or paid on any refund of erroneously paid taxes with respect to all county sales, use, rental, and lodgings tax levies collected by the department shall be determined in accordance with Section 40-1-44.
(i) For the purpose of this section, the terms collection and administration are defined as the act or process of managing local taxes and local tax assignments; this process includes, but is not limited to, any or all functions required or performed, or both, to receive, reconcile, process, audit, assess, collate, and distribute local taxes.
*(Act 98-192, p. 310, §4; Act 2017-415, §1; Act 2018-150, §1.)*
##### **§ 11-3-12** Designation of Courthouse Offices for Installation of Telephones {#sec-11-3-12 omnilex-key=us-al-statutes--title-11--11-3-12}
The county commission may designate which offices in the courthouse may have telephones installed therein.
*(Acts 1933, Ex. Sess., No. 184, p. 201; Code 1940, T. 12, §13.)*
##### **§ 11-3-13** Adoption of Budget System for County; Appropriation of Funds for Payment of Actual Expenses {#sec-11-3-13 omnilex-key=us-al-statutes--title-11--11-3-13}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1919, No. 485, p. 722; Code 1923, §6789; Code 1940, T. 12, §14.)*
##### **§ 11-3-14** Disposition of Funds from Special Tax Levy {#sec-11-3-14 omnilex-key=us-al-statutes--title-11--11-3-14}
The county commission may deposit any funds arising from any special tax levied to pay bonds issued by said county which are in excess of amounts then payable on said bonds in some solvent savings bank in the State of Alabama in the name of the county or invest the same in interest-bearing securities issued by the United States government or by the State of Alabama. The interest accruing on such deposit or from such securities shall be a part of such special fund and shall be devoted to the same uses as the principal of said fund. The county commission shall require adequate bond of said bank to secure the safety of said deposit, which bond shall be in such sum as such county commission shall fix, having due regard to the safety of county funds.
*(Acts 1923, No. 509, p. 680; Code 1923, §6756; Code 1940, T. 12, §15.)*
##### **§ 11-3-14.1** Disposition of Funds from Tax Levied Upon Sale, Use, Consumption {#sec-11-3-14.1 omnilex-key=us-al-statutes--title-11--11-3-14.1}
*[Repealed]*
Repealed by Act 2024-288, effective January 1, 2026.
*(Act 2024-288, §1.)*
##### **§ 11-3-15** Operation, Etc., of Bridges Over Navigable, Etc., Streams - Authorized Generally; Expenditure of County Funds Therefor {#sec-11-3-15 omnilex-key=us-al-statutes--title-11--11-3-15}
The county commissions of the several counties of the State of Alabama are vested with the following authority in connection with and in addition to any authority, general or special, heretofore vested in them by law. For and on behalf of the respective county which it represents, the county commission may contract for and take over, by lease or otherwise, the operation of bridges over navigable or other streams and may maintain the same as public highways and may expend county funds in the pursuance of such contracts, whether for the purpose of such leases or for the payment of the cost of maintenance or for liability accruing to such county or to the owners or lessors of such bridges on account of accidents or injuries that may arise from such operations.
*(Acts 1923, No. 238, p. 230; Code 1923, §6759; Code 1940, T. 12, §16.)*
##### **§ 11-3-16** Operation, Etc., of Bridges Over Navigable, Etc., Streams - Joint Operation, Etc., by Several Counties {#sec-11-3-16 omnilex-key=us-al-statutes--title-11--11-3-16}
The several counties of the state through their respective county commissions shall have the authority to contract with each other on such terms or basis as to them may seem satisfactory for the joint taking over, leasing, maintenance, and operation of such bridges and for meeting such contractual obligations as are provided for in Section 11-3-15 for liability accruing to such counties on account of accidents or injuries that may arise from the operation of such bridges.
*(Acts 1923, No. 238, p. 230; Code 1923, §6760; Code 1940, T. 12, §17.)*
##### **§ 11-3-17** Operation, Etc., of Bridges Over Navigable, Etc., Streams - Authority Where Bridges in Incorporated Cities, Towns, or Municipalities {#sec-11-3-17 omnilex-key=us-al-statutes--title-11--11-3-17}
The several counties of the state, through their respective county commissions, shall be vested with the authority set out in sections 11-3-15 and 11-3-16 with regard to the maintenance and operation of such bridges, whether or not such bridges lie in part or wholly within the limits of any incorporated city, town, or municipality.
*(Acts 1923, No. 238, p. 230; Code 1923, §6761; Code 1940, T. 12, §18.)*
##### **§ 11-3-18** Chief Administrative Officer {#sec-11-3-18 omnilex-key=us-al-statutes--title-11--11-3-18}
A county commission may employ a chief administrative officer, who shall carry out the administrative duties of the county and shall perform all of the following duties:
(1) Keep and record minutes of all meetings of the county commission.
(2) Have prepared and presented to the commission chair for proper execution all appropriate documents, such as resolutions, orders, contracts, or directives, as are necessary to carry out the actions of the county commission.
(3) Maintain at all times a detailed record of the financial status of the county which shall be kept up to date at all times and shall reflect the true status of all outstanding obligations of the county and the estimated revenue for the current fiscal year.
(4) Perform any other duties with reference to accounting, auditing claims, issuing warrants, and supplying the county commission with information as the county commission may deem necessary for the administration of the financial affairs of the county.
(5) Serve as signatory for the county on all appropriate documents as authorized or directed by policy adopted by resolution of the county commission.
(6) Perform any other duties as may be assigned from time to time and under procedures established by the county commission.
*(Code 1852, §705; Code 1867, §833; Code 1876, §747; Code 1886, §827; Code 1896, §959; Code 1907, §3314; Code 1923, §6763; Code 1940, T. 12, §19; Acts 1980, No. 80-808, p. 1663; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-19** Proceedings at Meetings of County Commission - Appointment of Special Clerk {#sec-11-3-19 omnilex-key=us-al-statutes--title-11--11-3-19}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Code 1852, §706; Code 1867, §834; Code 1876, §748; Code 1886, §828; Code 1896, §960; Code 1907, §3315; Code 1923, §6764; Code 1940, T. 12, §20; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-3-20** Proceedings at Meetings of County Commission - Presiding Officer {#sec-11-3-20 omnilex-key=us-al-statutes--title-11--11-3-20}
(a) The chair of the county commission shall preside over county commission meetings, provided however, the county commission may elect or authorize the chair to appoint a vice chair to serve in his or her absence. The chair shall only vote on a matter in the event that the votes cast by the other members of the commission are evenly divided on the issue except, when the chair serves on the county commission as a district commissioner, he or she may vote once on all matters that come before the county commission.
(b) In addition to presiding over all meetings as set out in subsection (a), the chair of a county commission, or in his or her absence or at his or her request, the vice chair, shall have the following duties:
(1) To ensure that an accurate record of all meetings is made and kept as required by Section 11-3-18.
(2) Except where the chief administrative officer has been directed to serve pursuant to subdivision (5) of Section 11-3-18, to serve as signatory for the county commission on all appropriate documents, such as resolutions, orders, contracts, or directives, as are necessary to carry out the actions of the county commission.
(3) To oversee and supervise the upkeep of the financial records of the county.
(4) Except as provided in Section 11-8-9, to issue and sign all warrants.
(5) To perform other duties as required by law or determined appropriate by the county commission pursuant to resolution duly adopted by a majority of the members of the county commission.
*(Code 1852, §707; Code 1867, §835; Code 1876, §749; Code 1886, §829; Code 1896, §961; Code 1907, §3316; Code 1923, §6765; Code 1940, T. 12, §21; Acts 1980, No. 80-808, p. 1663; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-21** Statement of Financial Status - Required {#sec-11-3-21 omnilex-key=us-al-statutes--title-11--11-3-21}
As soon as practical after closing the fiscal year, but no later than December 31 of each year, the county commission shall have published in a newspaper of general circulation in the county a statement of the county’s financial status for the 12-month period ending on September 30 of that year, which statement shall include at a minimum all of the following:
(1) An itemized report of the county’s receipts by source and disbursements by functions or purposes or both.
(2) The outstanding indebtedness of the county of any kind or character.
(3) The schedule by years for retiring indebtedness, separating funded indebtedness from unfunded indebtedness.
(4) The resources available to pay unfunded indebtedness.
*(Code 1876, §750; Code 1886, §830; Code 1896, §962; Code 1907, §3317; Acts 1919, No. 330, p. 451; Code 1923, §6766; Acts 1927, No. 592, p. 691; Acts 1935, No. 524, p. 1111; Acts 1936-37, Ex. Sess., No. 216, p. 258; Code 1940, T. 12, §22; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-22** Statement of Financial Status - Compliance with Publication Requirement {#sec-11-3-22 omnilex-key=us-al-statutes--title-11--11-3-22}
If the county commission fails to make the publication required by Section 11-3-21, the district attorney may bring a civil action to compel compliance, and the court may assess all costs of court to the county.
*(Code 1923, §6767; Acts 1935, No. 524, p. 1111; Code 1940, T. 12, §23; Act 2007-488, p. 1037, §1.)*
##### **§ 11-3-23** Semiannual Publication of County Receipts and Expenditures - Penalty for Failure to Publish {#sec-11-3-23 omnilex-key=us-al-statutes--title-11--11-3-23}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Code 1876, §4273; Code 1886, §3902; Code 1896, §5139; Code 1907, §7482; Code 1923, §5074; Code 1940, T. 12, §24.)*
##### **§ 11-3-24** Replacement of Destroyed Record Books {#sec-11-3-24 omnilex-key=us-al-statutes--title-11--11-3-24}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Code 1867, §654; Code 1876, §561; Code 1886, §655; Code 1896, §964; Code 1907, §3319; Code 1923, §6768; Code 1940, T. 12, §25.)*
##### **§ 11-3-25** Acquisition, Etc., of Copies of Field Notes of Original Government Survey of County Lands {#sec-11-3-25 omnilex-key=us-al-statutes--title-11--11-3-25}
The county commission is authorized to contract with the Secretary of State at an amount not greater than six and one-half cents per 100 words for certified copies of the field notes of the original government surveys of all lands in the county to be made in a book of proper size to be furnished by the county commission, and such books shall be deposited in the office of the judge of probate, free to inspection and making of copies of said field notes by all citizens of the state and when the same is completed and delivered to the judge of probate, the county commission must draw a warrant on the county treasurer for the amount due the Secretary of State, which shall be a preferred claim against such county.
*(Code 1876, §751; Code 1886, §832; Code 1896, §965; Code 1907, §3320; Code 1923, §6769; Code 1940, T. 12, §26.)*
##### **§ 11-3-26** Supernumerary County Commissioners {#sec-11-3-26 omnilex-key=us-al-statutes--title-11--11-3-26}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1986, No. 86-509, p. 993.)*
##### **§ 11-3-27** Certain County Commissions Authorized to Prohibit Topless, Bottomless, or Nude Dancing {#sec-11-3-27 omnilex-key=us-al-statutes--title-11--11-3-27}
(a) The county commission of any county in which a Class III municipality is located may pass an ordinance prohibiting topless, bottomless, or nude dancing for monetary consideration within the boundaries of the county. The ordinance shall be enforced by the sheriff of the county.
(b) A conviction for a violation of an ordinance passed pursuant to subsection (a) shall be punished by a fine of not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) and imprisonment in the county jail for not more than six months.
*(Acts 1994, No. 94-585, p. 1078, §§1, 2.)*
##### **§ 11-3-28** Management of County Juvenile Detention Facilities {#sec-11-3-28 omnilex-key=us-al-statutes--title-11--11-3-28}
(a) Upon written request by the presiding juvenile judge of the county, a county commission, by resolution adopted no later than August 11, 2025, may assume the supervision and administration of the county’s juvenile detention facility and the individuals employed to work in the facility. Upon the passage of a resolution, the commission may hire a detention superintendent to manage the facility and the facility’s employees on behalf of the commission.
(b) The Supreme Court of Alabama shall review and revise as necessary the Rules of Juvenile Procedure to ensure compliance with this section.
*(Act 2025-325, §1.)*
#### **Article 2** Alabama Local Government Training Act
##### **§ 11-3-40** Short Title {#sec-11-3-40 omnilex-key=us-al-statutes--title-11--11-3-40}
This article shall be known and cited as the “Alabama Local Government Training Act.”
*(Acts 1994, No. 94-598, p. 1109, §1.)*
##### **§ 11-3-41** Legislative Intent {#sec-11-3-41 omnilex-key=us-al-statutes--title-11--11-3-41}
The Legislature finds and declares that it is in the best interests of the citizens of this state to require newly elected county commissioners to participate in a course of training and education on matters pertaining to the administration and operation of county government. The purpose of the course shall be to instruct the individuals in the powers, duties, and responsibilities of their positions of public trust.
*(Acts 1994, No. 94-598, p. 1109, §2.)*
##### **§ 11-3-42** Definitions {#sec-11-3-42 omnilex-key=us-al-statutes--title-11--11-3-42}
As used in this article, the following terms have the following meanings, except where the context clearly indicates a different meaning:
(1) BOARD. The Board of Directors of the Buddy Sharpless Education Institute.
(2) COUNTY COMMISSION. The governing body as created in Section 11-3-1 and each county governing body created by local act.
(3) INSTITUTE. The Buddy Sharpless Education Institute, named in memory of O.H. “Buddy” Sharpless, the former executive director of the Association of County Commissions of Alabama, under whose leadership the institute was established in 1994.
(4) STATE. The State of Alabama and any department, board, bureau, commission, or other agency thereof.
*(Acts 1994, No. 94-598, p. 1109, §3; Act 2025-49, §1.)*
##### **§ 11-3-43** Course of Training and Education in Matters of County Government Administration and Operation {#sec-11-3-43 omnilex-key=us-al-statutes--title-11--11-3-43}
(a) All persons elected as members of a county commission who were not serving as members of a county commission on June 1, 1994, may enroll in, participate in, and satisfactorily complete a course of training and education of at least 50 hours on matters pertaining to the administration and operations of county government. The course of training and education shall include, but not be limited to, instruction in local government operations finance and budgeting; planning; public works and utilities; environmental management; personnel management; responsiveness to the community; ethics, duties, and responsibilities of members of the county commission; and all other matters deemed necessary and appropriate by the board.
(b) All expenses incurred by a county commissioner related to the course of training and education pursuant to this article, including the reasonable costs of housing, travel, and meals, shall be paid from the general fund of the county.
(c) The course of training and education required by this article may be offered by any four-year institution of higher education located in Alabama.
*(Acts 1994, No. 94-598, p. 1109, §4.)*
##### **§ 11-3-44** Buddy Sharpless Education Institute {#sec-11-3-44 omnilex-key=us-al-statutes--title-11--11-3-44}
(a) There is created and established the Buddy Sharpless Education Institute. All costs of operating and conducting the institute shall be paid from public funds appropriated for this purpose.
(b) The institute shall have the power, duty, and authority to design, implement, and administer the course of training and education pursuant to this article.
(c) The course of training and education required by Section 11-3-43 shall be conducted by the institute as soon as practicable after each general election at which county commissioners are elected. The training and education shall be completed no later than two years from the election. The institute shall have sole responsibility for determining the specific date or dates the course of training and education shall be conducted.
(d) The board shall establish guidelines and procedures to permit an individual elected or appointed as a member of a county commission who is unable to attend or complete the course of training and education when offered by the institute due to the appointment of a commissioner to fill a vacant office during a term, medical disability, providential cause, or another reason deemed sufficient by the board to comply with the requirements of this article.
(e) The board shall perform all other duties and have other powers and authority necessary and proper or as prescribed by general law.
*(Acts 1994, No. 94-598, p. 1109, §5; Act 2025-49, §1.)*
##### **§ 11-3-45** Board; Powers and Duties; Membership; Terms; Election of Officers; Compensation {#sec-11-3-45 omnilex-key=us-al-statutes--title-11--11-3-45}
(a) The institute shall be under the direction and supervision of the Board of the Buddy Sharpless Education Institute. The board shall have the power and duty to organize, administer, control, oversee, and advise the institute so that the institute shall be operated pursuant to this article.
(b) The board shall be composed of the following members:
(1) One representative of a four-year institution of higher education in Alabama appointed by the Alabama Commission on Higher Education.
(2) The President of the Association of County Commissions of Alabama.
(3) The Executive Director of the Association of County Commissions of Alabama.
(4) Three members who shall serve at the pleasure of and be appointed by the Board of Directors of the Association of County Commissions of Alabama.
(5) The Chair of the Senate Governmental Affairs Committee.
(6) The Chair of the Local Government Committee of the House of Representatives.
(7) One member appointed by the Governor.
(8) One member appointed by the Lieutenant Governor.
(9) One member appointed by the Speaker of the House of Representatives.
(c) Members of the board appointed by the Governor, Lieutenant Governor, and Speaker of the House of Representatives shall be county commissioners who shall serve for four-year terms.
(d) The appointing authorities shall coordinate their appointments to assure the board membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state.
(e) The board shall annually elect a chair and other officers deemed expedient. The officers shall serve at the pleasure of the board and shall have the duties and powers determined by the board.
(f) The board may accept appropriations, grants, gifts, donations, or contributions from the federal government and the state government; a county, municipal, or local government; a board, bureau, commission, agency, or establishment of any such government; another organization, firm, or corporation, public or private; and an individual or groups of individuals in furtherance of the services, purposes, duties, responsibilities, or functions vested in the board and institute.
(g) The board shall make contracts, leases, or agreements necessary and convenient to carry out the duties and purposes for which the board is created. The board shall enter into contracts, leases, or agreements with an individual, firm, or corporation, public or private, upon terms and for purposes deemed advisable.
(h) The board shall provide advanced or continuing training and education to county commissioners through the institute in addition to that required by Section 11-3-43. Public funds may be expended for the advanced or continuing training and education in the same manner as the required training and education, but a county commissioner’s enrollment in, attendance at, or completion of an advanced course of study shall be voluntary and shall not be required.
(i) The board shall provide for the grant of awards, degrees, diplomas, or other forms of recognition for successful completion of its programs as it deems proper. The board may also award certification to county employees and programs meeting the criteria established by the board or by state agencies.
(j) The members of the board shall receive no additional compensation for their service pursuant to this article.
(k) Five members of the board shall constitute a quorum for the purpose of transacting business.
*(Acts 1994, No. 94-598, p. 1109, §6; Act 2017-440, p. 1470, §1; Act 2025-49, §1.)*
##### **§ 11-3-46** Annual Report {#sec-11-3-46 omnilex-key=us-al-statutes--title-11--11-3-46}
(a) On or before the fifth legislative day of the regular session of the Legislature, the chair of the board, on behalf of the board, shall make a report to the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives. A copy of the report shall be delivered to the Clerk of the House of Representatives and the Secretary of the Senate who shall provide for the reading of the report into the journals of the respective houses.
(b) The report shall include a summary of the accomplishments of the institute during the preceding calendar year, including, but not limited to: The total number and names of county commissioners who attended the course of training and education offered by the institute; an outline of the programs of the institute for the current calendar year; an evaluation of the programs and services offered by the institute; and recommendations, if any, for legislation necessary to improve the programs and services offered by the institute.
*(Acts 1994, No. 94-598, p. 1109, §7.)*
#### **Article 3** Purchases of Approved Tangible Personal Property or Services
##### **§ 11-3-60** Use of Credit or Debit Cards Issued to County Commission for Certain Purchases; Rewards or Rebates {#sec-11-3-60 omnilex-key=us-al-statutes--title-11--11-3-60}
(a) For the purposes of this article, the following words shall have the following meanings:
(1) CHIEF ADMINISTRATIVE OFFICER. A person employed by the county commission of a county pursuant to Section 11-3-18.
(2) CREDIT CARD. A line of credit issued by a domestic lender or credit card bank.
(3) DEBIT CARD. A card issued by a bank in relation to a checking or savings account held by the county commission.
(b) To provide for convenience in making purchases of tangible personal property or services approved by the county commission, the county commission of a county may establish procedures for the chief administrative officer to make certain purchases through use of a credit or debit card issued to the county commission. The county commission shall promulgate written policy and procedures governing the utilization of credit or debit cards which, at a minimum, shall include each of the following:
(1) A monetary limit on the amount of any individual purchase which may be made with a credit or debit card.
(2) A monetary limit on the total monthly amount that may be purchased with a credit or debit card, taking into consideration the debt limit of the county, which shall not be greater than one-fourth of one percent (.25%) of the general fund budget of the county.
(3) Procedures to ensure that the chief administrative officer has sole access to any credit or debit card issued to the county commission.
(4) Procedures to ensure that the chief administrative officer has sole access to credit or debit card numbers, access codes, or security codes.
(5) Procedures for public officials and department heads to properly submit purchase orders to the chief administrative officer for the purchase of items or services which may be paid for utilizing a credit or debit card.
(6) Procedures for the chief administrative officer to keep accurate records of all purchases made with a credit or debit card, which records shall be periodically reviewed by the chair of the county commission and may be reviewed periodically by any other member of the county commission.
(7) Procedures to ensure that all credit or debit card bills are carefully reviewed by the chief administrative officer each month to make sure that no unauthorized charges appear on the bill.
(8) Procedures to ensure that all credit or debit card bills are paid in full on a timely basis each month to avoid service charges, late fees, or interest payments.
(9) Procedures to ensure that the county is at all times in compliance with the provisions of Title 39 and Article 3 of Chapter 16, Title 41.
(c) The county commission shall select the credit or debit card provider or providers taking into consideration each of the following:
(1) Whether the credit or debit card issuer requires an annual fee for utilizing the card.
(2) Whether the credit or debit card issuer offers rewards or rebates based upon purchases made utilizing the account.
(3) What interest rates, service charges, finance charges, or late fees will be assessed in the event a bill from the credit or debit card issuer is paid late or the balance is not paid in full.
(4) Whether penalties or fees will be assessed against the county in the event it decides to terminate the credit or debit card.
(5) Any other consideration deemed relevant by the county commission.
(d) In the event the credit or debit card provides rewards or rebates based upon use of the card, any rewards or rebates earned form the card or cards shall be deposited into the general fund of the county.
*(Act 2013-211, p. 481, §1.)*
##### **§ 11-3-61** Procurement or Purchasing Programs {#sec-11-3-61 omnilex-key=us-al-statutes--title-11--11-3-61}
**AMENDED BY ACT 2026-57, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) In addition to authority granted in Section 11-3-60, a county commission may adopt a procurement or purchasing program designed to simplify the purchasing of certain tangible personal property provided the program is designed in a manner that shall provide significant cost savings to the county and includes written policy and procedures for implementation and administration of the program as set out in subsection (c). For the purposes of this article, a “procurement or purchasing program” is a purchase payment program utilized as an alternative purchase order process with vendors agreeing to participate in such process. The program shall be approved by the county commission in order to allow individualized purchases of tangible personal property items which have received prior approval by the county commission through use of a card programmed for limited purchases of specific items by an individual designated by the county commission to make the purchases.
(b) Prior to implementation of a procurement or purchasing program, the county commission shall make the following determinations:
(1) That the program to be implemented meets governmental accounting standards and practices for development and administration of such program.
(2) That the program will provide significant cost savings to the county.
(3) That the program has been developed and designed in a manner that provides all necessary purchasing and accounting documentation required by the Department of Examiners of Public Accounts.
(4) That the program has been developed and designed with sufficient safeguards to significantly reduce the risk of mismanagement or misappropriation of funds.
(5) That the program will be carefully supervised and overseen by the county chief administrative officer.
(c) The county commission shall adopt written policy and procedures for the implementation, administration, and operation of the program, which policy and procedures shall include at a minimum, each of the following:
(1) A monetary limit on the amount of any individual purchase which may be made using a procurement or purchasing card.
(2) A monetary limit on the total monthly amount that may be purchased with a procurement or purchasing card, taking into consideration the county’s debt limit.
(3) Procedures to ensure that any person utilizing a procurement or purchasing card has been properly trained regarding use of the card, including purchases which are allowed, proper process for documenting purchases, and daily and monthly monetary limits.
(4) Procedures to ensure that the chief administrative officer carefully supervises and oversees the administration of the program and the use of procurement or purchasing cards within the county.
(5) Procedures for the chief administrative officer to keep accurate records of all purchases made with a procurement or purchasing card, which records shall be periodically reviewed by the chair of the county commission and may be reviewed periodically by any member of the county commission.
(6) Procedures to ensure that all procurement or purchasing card bills are carefully reviewed by the chief administrative officer each month to make sure that no unauthorized charges appear on the bill.
(7) Procedures to ensure the full cost of every purchase made through the use of a procurement card is paid or settled by electronic transfer within not more than 45 days of the purchase.
(8) Procedures to ensure that the county is at all times in compliance with the provisions of Article 3 of Chapter 16 of Title 41.
(d) Any company, financial institution, or other organization providing procurement card services as authorized under this article shall ensure the county commission’s purchasing authority is suspended immediately should the payment or electronic settlement for any item fail to be received within the 45-day limit required in subdivision (7) of subsection (c).
*(Act 2013-211, p. 481, §2.)*
##### **§ 11-3-62** Public Bid Requirements {#sec-11-3-62 omnilex-key=us-al-statutes--title-11--11-3-62}
The authorization to utilize a credit card or procurement card provided in this article shall in no way relieve or supersede the requirements for public bids applicable to the county commissions in Article 3 of Chapter 16 of Title 41. The Department of Examiners of Public Accounts shall audit the utilization of credit cards and procurement cards to ensure compliance with all public bid requirements and the specific provisions of this article.
*(Act 2013-211, p. 481, §3.)*
### **Chapter 3A** Alabama Limited Self-Governance Act
##### **§ 11-3A-1** Short Title {#sec-11-3a-1 omnilex-key=us-al-statutes--title-11--11-3A-1}
This chapter shall be known as “The Alabama Limited Self-Governance Act.”
*(Act 2005-200, p. 399, §1.)*
##### **§ 11-3A-2** Powers for Public Welfare, Health, and Safety; Authorization; Scope {#sec-11-3a-2 omnilex-key=us-al-statutes--title-11--11-3A-2}
(a) Except where otherwise specifically prohibited or provided for either heretofore or hereafter by general law or the constitution of this state and subject to the procedures and limitations set out in this chapter, the county commission of a county may provide for its property and affairs; and for the public welfare, health, and safety of the citizens throughout the unincorporated areas of the county by exercising certain powers for the protection of the county and public property under its control. The powers granted herein to provide for the public welfare, health, and safety of its citizens shall only include the following:
(1) Abatement of weeds as a public nuisance as defined in Section 11-67-60.
(2) Subject to the provisions of Section 6-5-127, control of animals and animal nuisances.
(3) Control of litter as defined in subsection (b) of Section 13A-7-29, or rubbish as defined in subdivision (4) of Section 22-27-2.
(4) Junkyard control of areas which create a public nuisance because of an accumulation of items described in the definition of a junkyard under Section 11-80-10.
(5) Subject to the provisions of Section 6-5-127, abatement of noise, unsanitary sewage, or pollution creating a public nuisance as defined in Sections 6-5-120 and 6-5-121.
(b) Except as provided in subsection (h), the process for implementation of the powers set out in subsection (a) may be authorized by resolution of the majority of the county commission or in response to a petition signed by 10 percent of the total number of qualified electors of the county who reside in the unincorporated areas of the county. A petition shall only be accepted if signed by 10 percent of the total number of qualified electors who reside in the unincorporated areas of the county. The petition shall include the full legal names and addresses of all persons signing the petition and shall be filed in the office of the judge of probate. The judge of probate shall within 60 days verify that all of the persons signing the petition are in fact qualified electors and legal residents of the unincorporated areas of the county and shall immediately thereafter forward the petition to the chairperson of the county commission. Following receipt of the verified petition, the county commission shall, at its next regularly scheduled meeting, make preparations for the referendum on the issue as set out in Section 11-3A-5.
(c) The powers granted to a county commission by this chapter shall not be construed to extend to any matters which the Legislature by general law has heretofore preempted by operation of law and the powers granted by this chapter shall not be limited or superseded by local law enacted after May 26, 2005. The legislative intent of this chapter is not to diminish any local law previously enacted and such local laws are to be read in pari materia with this chapter. The county commission may adopt ordinances to effectuate the orderly implementation of the powers granted herein under the procedures set out in Section 11-3A-3. Ordinances adopted by the county commission shall provide a process for notice to any persons cited for violation of such ordinance, and shall also include procedures for appeal to the county commission to contest any citation issued for an alleged violation of any ordinance adopted by the county commission pursuant to this chapter.
(d) The powers granted to a county commission by this chapter shall not include any of the following:
(1) The authority of a county to levy or collect any tax, to levy or collect any fee except an administrative fee as provided in this chapter, or to implement a county land use plan or to establish and enforce planning and zoning.
(2) Any action extending the power of regulation over any business activity regulated by the federal Surface Transportation Board, the Public Service Commission, the Department of Agriculture and Industries, or the Department of Environmental Management beyond that authorized by general law or by the Constitution of Alabama of 1901.
(3) Any action affecting any court or the personnel thereof.
(4) Any action affecting any public school system.
(5) Any action affecting pari-mutuel betting or any pari-mutuel betting facility.
(6) Any action affecting in any manner the property, affairs, boundaries, revenues, powers, obligations, indebtedness, or government of a municipality or any municipal or public corporation organized pursuant to Chapter 50 of this title.
(7) Any action affecting the private or civil law governing private or civil relationships, except as is incident to the exercise of an independent governmental power.
(8) Any action extending the power of regulation over the construction, maintenance, operation, or removal of facilities used in the generation, transmission, or distribution of water, sewer, gas, telecommunications, or electric utility services.
(9) Any action affecting the rights granted to an agricultural, manufacturing, or industrial plant or establishment, or farming operation pursuant to Section 6-5-127, or other general laws in effect on May 26, 2005, or thereafter.
(10) Any action affecting or enforcing environmental easements or, except as authorized in this section, to abate a public nuisance, any use of private property otherwise authorized under the constitution and laws of the State of Alabama.
(11) Any action restricting or regulating surface mining or underground mining activities that have been granted federal or state permits and any operation or facility engaged in the activities of processing or distributing any product or material resulting from the mining activity.
(e) Unless otherwise provided by general law, a county may not exercise any of the powers or provide any service authorized by this chapter inside the corporate limits of any municipality or within any other territory in which a municipality or an instrumentality of a municipality is authorized by general law to exercise the power or provide those services, or within any other county, except by contract with the municipality, municipal instrumentality, or county affected.
(f) Nothing in this chapter shall be construed to grant the county commission of a county any general authority to establish or adopt a comprehensive plan for zoning or land use regulation in the unincorporated areas of the county or to grant any taxing authority except as otherwise provided for by law.
(g) This chapter shall not preclude municipal utilities from expanding into the county as otherwise provided by law and shall not grant counties the authority to govern or regulate municipal water and sewer systems which operate within the county.
(h) In counties with a Class 3 municipality with a county commission which is presided over by a chairman elected countywide, a four-fifths majority vote of the county commission members elected by single member districts shall be required for the implementation of this chapter by the commission pursuant to subsection (b) and Section 11-3A-6 and such four-fifths majority vote shall also be required on all matters related to the utilization of the powers granted under this chapter.
(i) Nothing in this chapter shall be construed to allow a county commission to expend any county funds for any improvement on private property.
*(Act 2005-200, p. 399, §2.)*
##### **§ 11-3A-3** Adoption Procedures for Ordinances; Administrative Fees; Penalties {#sec-11-3a-3 omnilex-key=us-al-statutes--title-11--11-3A-3}
(a) Following the notice requirements set out in subsection (b), the county commission, by majority vote, may adopt ordinances for the implementation and enforcement of the powers set out in Section 11-3A-2. The county commission, in its discretion, may hold a separate public hearing on the adoption of the proposed ordinances except the vote on approval of a proposed ordinance shall be taken only at a regularly scheduled county commission meeting and only following notice as set out in subsection (b). The style of all ordinances shall be, “Be it ordained by the _________ County Commission as follows:” inserting the name of the county as the case may be.
All ordinances adopted by the county commission pursuant to this chapter shall be kept in a separate book maintained in the county commission office and on a county maintained website if one is available, and shall be available at all times for public inspection.
(b) Prior to the adoption of any ordinance pursuant to subsection (a), the county commission shall post notice of its intention to consider the adoption of the ordinance at the courthouse and at any other place it determines appropriate for a period of no less than 30 days. Notice shall also be published at least twice beginning three weeks prior to the county commission meeting at which the matter will be addressed in all newspapers published in the county that are authorized to publish legal advertisements. All notices shall state the date, time, and location of the meeting at which the proposed ordinance will be considered and shall advise where copies of all proposed ordinances may be obtained for review.
(c) Subject to any limitations set out in the constitution or the general laws of this state, the county commission may utilize the ordinance procedure in this section to establish administrative fees only for the purpose of administering the powers in subsection (a) of Section 11-3A-2, which shall not exceed the actual cost of the implementation and enforcement of any ordinance adopted under authority granted herein.
(d) The powers granted in this chapter shall not be construed to authorize any assessments, rates, charges, fees for services, or other similar monetary impositions not constituting taxes to be made or imposed against any person or property, unless the services related to the assessments, rates, charges, fees for services, or other similar monetary impositions may be provided to the person or the powers related thereto may be exercised with respect to the property.
(e) The county commission may establish and enforce administrative and civil penalties, including fines, for the enforcement of ordinances adopted under authority granted in this chapter. The fine shall not exceed one hundred fifty dollars ($150). Each day the violation continues shall constitute a separate offense, however, the total fine shall not exceed five thousand dollars ($5,000). The ordinances, including any penalties and fines, shall be adopted in accordance with the procedures set out in subsections (a) and (b). All fines and penalties collected shall be paid into the county general fund of the county and earmarked for the administration of the ordinances adopted pursuant to this chapter. Compliance may also be pursued through civil or equitable action filed in the circuit court of the county seeking injunctive relief or other appropriate remedy.
*(Act 2005-200, p. 399, §3.)*
##### **§ 11-3A-4** Alcoholic Beverage Licenses in Class 3 Municipalities with Elected County Commission Chair {#sec-11-3a-4 omnilex-key=us-al-statutes--title-11--11-3A-4}
(a) This section shall apply to any county with a Class 3 municipality that has an elected county commission chair.
(b) All other provisions of law, rules, or regulations to the contrary notwithstanding, the Alabama Alcoholic Beverage Control Board may not issue in the unincorporated area of any applicable county any form of license, including, but not limited to, off-premise consumption licenses, restaurant licenses, or club licenses, for the retail sale of any form of intoxicating beverages, including, but not limited to, malt liquor, beer, wine, liquor, or other alcoholic beverage regulated by the board, unless one of the following requirements are satisfied:
(1) The application has first been approved by the county commission.
(2) The denial of approval by the county commission has been set aside by order of the circuit court of the county on the grounds that approval by the county commission was arbitrarily or capriciously denied without a showing of one of the following:
a. The creation of a nuisance.
b. Circumstances clearly detrimental to or which would adversely affect the public health, safety, and welfare of the adjacent residential neighborhoods.
c. A violation of applicable zoning restrictions or regulations.
d. An individual applying for the license has a prior conviction involving the use of alcohol or a controlled substance.
e. The proximity of the business to a school or child care facility and the business hours of the operation will create a harmful environment for the children.
f. The traffic congestion created by licensing the proposed location will endanger others.
g. Any other reason that poses a risk.
(c) A proceeding in the circuit court to review an action of the county commission denying approval of an application shall be an expedited de novo proceeding heard by a circuit judge without a jury who shall consider any testimony presented by the county commission and any new evidence presented in explanation or contradiction of the testimony. Any proceeding to review the denial of approval of a license application shall be commenced within 14 days of the action by the county commission and shall be set for hearing by the court within 30 days thereafter.
(d) Notwithstanding any other provision of law, the county commission may adopt ordinances regulating the location of retail licenses for the sale of alcoholic beverages.
*(Act 2005-200, p. 399, §4.)*
##### **§ 11-3A-5** Referendum Election to Approve Application of Powers {#sec-11-3a-5 omnilex-key=us-al-statutes--title-11--11-3A-5}
The powers authorized under this chapter shall be effective in a county only after an affirmative vote of a majority of the qualified electors of the county residing in the unincorporated areas of the county and voting in a referendum election held on the question of whether the powers authorized under this chapter shall be effective in the county. Except as provided in subsection (h) of Section 11-3A-2, the election shall be called upon resolution adopted by affirmative vote of the majority of the members of the county commission. The referendum election shall be conducted in accordance with the election laws of the state and may be held only in conjunction with a primary, general, or special election held for another purpose in the county. In no case may any election authorized by this chapter be held more often than once every 48 months.
*(Act 2005-200, p. 399, §5.)*
##### **§ 11-3A-6** Referendum Election to Repeal Application of Powers {#sec-11-3a-6 omnilex-key=us-al-statutes--title-11--11-3A-6}
Except as provided in subsection (h) of Section 11-3A-2, the county commission of a county shall call for a referendum election on the repeal of the application of the powers authorized under this chapter in the county following a resolution of the majority of the county commission or in response to a petition signed by 10 percent of the total number of qualified electors of the county who reside in the unincorporated areas of the county requesting that the application of the powers authorized under this chapter in the county be repealed. The procedures for calling and holding a referendum election provided in Section 11-3A-2 and Section 11-3A-4 shall also apply to a referendum election for the repeal of the application of the powers authorized under this chapter in the county.
*(Act 2005-200, p. 399, §6.)*
##### **§ 11-3A-7** Savings Provision {#sec-11-3a-7 omnilex-key=us-al-statutes--title-11--11-3A-7}
Act 562, 1953 Regular Session (Acts 1953, p. 799); Act 463, 1957 Regular Session (Acts 1957, p. 630); Act 716, 1957 Regular Session (Acts 1957, p. 1112); Act 87-758, 1987 Regular Session (Acts 1987, p. 1479); Act 89-527, 1989 Regular Session (Acts 1989, p. 1077); and Act 91-193, 1991 Regular Session (Acts 1991, p. 354), which are local acts applicable to Jefferson County only, shall remain in full force and effect following May 26, 2005, and shall constitute the exclusive regulatory authority to be exercised by the Jefferson County Commission in regard to any powers that would otherwise be granted in this chapter. Nothing authorizing the Jefferson County Commission to exercise any power in this chapter shall apply unless the local act named above relating to the power is specifically repealed by separate local act of the Legislature.
*(Act 2005-200, p. 399, §7.)*
### **Chapter 4** Treasurer or Depository
#### **Article 1** General Provisions
##### **§ 11-4-1** Applicability of Provisions of Chapter {#sec-11-4-1 omnilex-key=us-al-statutes--title-11--11-4-1}
The provisions of this chapter shall not apply to any county in which the county treasurer, or county depository, or other custodian of its funds in lieu of a county treasurer is governed by a local law or a law, the application of which is determined by the population of the county, insofar as the same are in conflict herewith.
*(Code 1940, T. 12, §41.)*
#### **Article 2** Treasurer
##### **§ 11-4-20** Election; Term of Office {#sec-11-4-20 omnilex-key=us-al-statutes--title-11--11-4-20}
A county treasurer for each county having a population of more than 56,000 according to the 1930 federal census and not otherwise having a county depository or other custodian of its funds in lieu of a county treasurer shall be elected by the qualified voters thereof and he shall hold office for four years from the first Monday after the second Tuesday in January next after his election and until his successor is elected and qualified.
*(Code 1852, §787; Code 1867, §922; Code 1876, §841; Code 1886, §910; Code 1896, §1426; Code 1907, §208; Code 1923, §300; Code 1940, T. 12, §30.)*
##### **§ 11-4-21** Vacancies {#sec-11-4-21 omnilex-key=us-al-statutes--title-11--11-4-21}
Vacancies in the office of county treasurer shall be filled by appointment by the county commission, and the person appointed shall hold office for the unexpired term and until his successor is elected and qualified.
*(Code 1886, §913; Code 1896, §1427; Code 1907, §209; Code 1923, §301; Code 1940, T. 12, §31.)*
##### **§ 11-4-22** Bonds {#sec-11-4-22 omnilex-key=us-al-statutes--title-11--11-4-22}
Before entering on the duties of his office, the county treasurer must give bond as provided by law, which bond shall be in a sum not less than $15,000.00, and in counties where the population is over 150,000, it shall not be less than $50,000.00, such bond to be payable to the county and conditioned as prescribed by law and to be fixed and approved by the county commission. Said bond, after being approved shall be filed and recorded in the office of the judge of probate of such county.
The county commission may in its discretion require an additional bond when any special fund is to be received by the treasurer and pay the premium therefor.
*(Code 1852, §788; Code 1867, §923; Code 1876, §842; Code 1886, §911; Code 1896, §1428; Code 1907, §210; Code 1923, §302; Acts 1933, Ex. Sess., No. 191, p. 203; Acts 1936, Ex. Sess., No. 141, p. 101; Code 1940, T. 12, §32; Acts 1943, No. 468, p. 432.)*
##### **§ 11-4-23** Duties Generally {#sec-11-4-23 omnilex-key=us-al-statutes--title-11--11-4-23}
It shall be the duty of the county treasurer:
(1) To receive and keep the money of the county and disburse the same as below stated:
a. To pay out of the general fund of the county, on presentation and without being audited and allowed by the county commission, all grand and petit juror certificates and to pay all other claims against the general funds that must be allowed and audited only after they have been audited and allowed and a warrant has issued therefor, but only to the extent so allowed, any warrant to the contrary notwithstanding, and in making payments from said fund he shall observe the order of preference as prescribed by Section 11-12-15.
b. To keep in well-bound books separate registers of claims presented against the general fund, the special fund if any and the fine and forfeiture fund.
c. To number and register in the order in which they are presented all claims against the general fund which have been audited and allowed by the county commission as claims against such fund, such register to show the number of the claim, the date presented for registration, to whom allowed, when allowed, the character of the claim and the amount thereof and, except as otherwise provided by law, to pay the same in order of their registration. He must in like manner number, register, and pay all claims allowed against a fund raised for a special purpose.
d. To number and register in the order in which they are presented all claims against the fine and forfeiture fund which have been duly authenticated as claims against such fund and without being audited and allowed by the county commission, such register to show the number of the claim, the date presented for registration, to whom payable, when it accrued, the character of the claim and the amount thereof and to pay the registered claims of state witnesses in the order of their registration, and, whenever there is a surplus of such fund over and above the sum required to pay the registered claims of state witnesses, he must apply such surplus to the payment of the claims of officers of court in the order of their registration. All local laws in conflict herewith are hereby expressly repealed.
e. To endorse, upon the registration of a claim, the number and date of registration and sign his name thereto.
f. To give a receipt when a claim is received in payment of a debt due the county, showing a description of the claim and the name of the person and character of the debt on whose account the claim was received.
g. To make a receipt on the payment of any claim and when a claim of any character is paid or received by him, he must cancel the same by defacing or mutilating it so as to show that it is of no further value and, if registered, write upon the register against the claim the word “paid” and the date of such payment.
h. To keep a correct account of the receipts and disbursements of all money received by him for the county, according to the forms prescribed in this section, charging himself with all moneys so received, from whom, on what account and the amount and crediting himself with all payments, stating the number and character of the claim, in whose favor and the amount.
(2) To examine the dockets of the circuit courts and sheriff semiannually, to demand and receive all moneys due to the county and to institute proceedings against defaulters.
(3) To submit to the county commission at the first term in October of each year the register of claims, his account for the year balanced, vouchers for the payments, and an estimate of the indebtedness of the county for the coming year and the means of providing for the same.
(4) To make reports and give information to the county commission, when required, respecting all matters relating to the finances of the county.
(5) To furnish the chairman of the county commission in October of each year a verified statement of all moneys received by him for the county during the preceding year and of all claims received by him in lieu of money which are receivable in payment of county taxes, which statement must designate the time and person from whom such moneys or claims were received.
(6) To keep his office within one mile of the courthouse of the county.
(7) To perform such other duties as are or may be by law required of him.
*(Code 1852, §791; Code 1867, §926; Code 1876, §845; Code 1886, §915; Code 1896, §1429; Code 1907, §211; Acts 1919, No. 615, p. 860; Code 1923, §303; Acts 1936-37, Ex. Sess., No. 154, p. 177; Acts 1936-37, Ex. Sess., No. 155, p. 178; Code 1940, T. 12, §33; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-4-24** Compensation {#sec-11-4-24 omnilex-key=us-al-statutes--title-11--11-4-24}
The county treasurer shall receive such compensation as may be allowed by the county commission, in no case exceeding two and one-half percent on the money received, and two and one-half percent of the money paid out by him. His compensation in no case shall exceed the aggregate sum of $1,000.00 in any one year.
*(Code 1852, §799; Code 1867, §934; Code 1876, §851; Code 1886, §921; Code 1896, §1435; Code 1907, §217; Code 1923, §310; Code 1940, T. 12, §39.)*
##### **§ 11-4-25** Transfer of Balance of Fine and Forfeiture Fund to General Fund, Etc {#sec-11-4-25 omnilex-key=us-al-statutes--title-11--11-4-25}
The county treasurer of any county in this state may transfer any balance on hand at the end of the fiscal year of the fine and forfeiture fund in excess of the registered claims and lawful claims or charges against said fund to the general fund or to any special fund to which by resolution of the county commission, expressed in writing and spread upon the minutes of the county commission, he may be directed.
*(Acts 1907, Ex. Sess., No. 84, p. 178; Code 1923, §304; Code 1940, T. 12, §34.)*
##### **§ 11-4-26** When Claim to Be Paid Though Prior Claims Outstanding {#sec-11-4-26 omnilex-key=us-al-statutes--title-11--11-4-26}
The county treasurer must not refuse the payment of any lawful and valid claim for the reason that claims of prior registration have not been paid if there is money in the treasury belonging to the fund sufficient to pay such prior claims and the claim so presented.
*(Code 1896, §1430; Code 1907, §212; Code 1923, §305; Code 1940, T. 12, §35.)*
##### **§ 11-4-27** Books {#sec-11-4-27 omnilex-key=us-al-statutes--title-11--11-4-27}
The books of the county treasurer are to be provided at the expense of the county.
*(Code 1852, §793; Code 1867, §928; Code 1876, §847; Code 1886, §917; Code 1896, §1431; Code 1907, §213; Code 1923, §306; Code 1940, T. 12, §36.)*
##### **§ 11-4-28** Recordation and Posting of Copy of Annual Account {#sec-11-4-28 omnilex-key=us-al-statutes--title-11--11-4-28}
The annual account of the county treasurer, when examined and approved by the county commission, must be recorded and a copy of the same posted at the courthouse door.
*(Code 1852, §794; Code 1867, §929; Code 1876, §848; Code 1886, §918; Code 1896, §1432; Code 1907, §214; Code 1923, §307; Code 1940, T. 12, §37.)*
##### **§ 11-4-29** Proceedings Upon Resignation, Removal, Death, Etc., of Treasurer {#sec-11-4-29 omnilex-key=us-al-statutes--title-11--11-4-29}
In case of the resignation, expiration of his term, or removal from office, the county treasurer, or if he dies his personal representatives, must state his account and deliver all the money, books, papers, and property of the county to his successor, who must report the same to the meeting of the county commission held next thereafter, and if satisfied that such account is correct and that all the money, books, papers, and property of the county have been delivered to such successor, such county commission must cause an entry thereof to be made of record.
*(Code 1852, §798; Code 1867, §933; Code 1876, §850; Code 1886, §920; Code 1896, §1434; Code 1907, §216; Code 1923, §309; Code 1940, T. 12, §38.)*
##### **§ 11-4-30** Settlement with County Commission Prior to Leaving Office {#sec-11-4-30 omnilex-key=us-al-statutes--title-11--11-4-30}
The treasurer of each county before going out of office shall make a settlement with the county commission of the county and shall pay over the balance of the money on hand to the order of the said county commission to the credit of said county.
*(Acts 1915, No. 378, p. 348; Code 1923, §313; Code 1940, T. 12, §40.)*
#### **Article 3** Depository
##### **§ 11-4-40** Established {#sec-11-4-40 omnilex-key=us-al-statutes--title-11--11-4-40}
In all counties having a population of not more than 56,000 according to the 1930 federal census there shall be established a county depository in lieu of a county treasurer, except as otherwise provided by local act.
*(Acts 1915, No. 378, p. 348; Code 1923, §312; Acts 1932, Ex. Sess., No. 218, p. 227; Code 1940, T. 12, §43.)*
##### **§ 11-4-41** Selection {#sec-11-4-41 omnilex-key=us-al-statutes--title-11--11-4-41}
The county commission shall select as the county depository for the placing therein of county funds a qualified public depository under Chapter 14A of Title 41. Where permitted by law, the commission shall select a qualified public depository or qualified public depositories that provide proposals offering the highest rate of interest to the county on daily balances of bank deposits at the time of the selection.
*(Acts 1915, No. 378, p. 348; Code 1923, §316; Code 1940, T. 12, §44; Acts 1956, 2nd Ex. Sess., No. 108, p. 436; Act 2000-748, p. 1669, §2; Act 2018-149, §1.)*
##### **§ 11-4-42** Bond or Security {#sec-11-4-42 omnilex-key=us-al-statutes--title-11--11-4-42}
*[Repealed]*
Repealed by Act 2000-748, p. 1669, §2, effective January 1, 2001.
*(Acts 1915, No. 378, p. 348; Code 1923, §317; Acts 1933, Ex. Sess., No. 30, p. 19; Code 1940, T. 12, §47.)*
##### **§ 11-4-43** Duties and Liabilities Generally {#sec-11-4-43 omnilex-key=us-al-statutes--title-11--11-4-43}
The county depositories shall be charged with all the duties and subject to the same liabilities insofar as the receipt, disbursement, and safekeeping of funds of the county are concerned as are now imposed by law upon county treasurers in Article 2 of this chapter.
*(Acts 1915, No. 378, p. 348; Code 1923, §318; Code 1940, T. 12, §48.)*
##### **§ 11-4-44** Compensation {#sec-11-4-44 omnilex-key=us-al-statutes--title-11--11-4-44}
The qualified public depository or depositories acting as county depositories pursuant to Section 11-4-41 shall not receive any compensation or commission or other allowance for services as county depositories.
*(Acts 1915, No. 378, p. 348; Code 1923, §320; Code 1940, T. 12, §50; Act 2000-748, p. 1669, §2.)*
##### **§ 11-4-45** Payment of Moneys into Depository; Settlements and Reports {#sec-11-4-45 omnilex-key=us-al-statutes--title-11--11-4-45}
All moneys heretofore required by law to be paid to the county treasurer shall be put into such bank or savings association, which is a qualified public depository under Chapter 14A of Title 41, as the county commission of said county may elect to the credit of said county and all settlements heretofore required by law to be made with said treasurer shall be made with said county commission, the receipt of said qualified public depository so designated being sufficient voucher, and all sworn reports heretofore required by law to be made by said treasurer shall be made by such county commission.
*(Acts 1915, No. 378, p. 348; Code 1923, §314; Code 1940, T. 12, §45; Act 2000-748, p. 1669, §2.)*
##### **§ 11-4-46** Opening of Accounts, Disbursement of Funds, Etc.; Statement of Receipts and Disbursements {#sec-11-4-46 omnilex-key=us-al-statutes--title-11--11-4-46}
Accounts shall be opened and kept in said bank in such manner and funds as such county commission may direct, disbursements to be made upon the order of the county commission and said bank shall furnish said county commission with a full and detailed statement of the receipts and disbursements on the second Monday of January and July in each and every year.
*(Acts 1915, No. 378, p. 348; Code 1923, §315; Code 1940, T. 12, §46.)*
##### **§ 11-4-47** Civil Actions and Proceedings by and Against Depositories {#sec-11-4-47 omnilex-key=us-al-statutes--title-11--11-4-47}
County depositories may maintain all civil actions and proceedings of every kind which county treasurers may maintain and all civil actions and proceedings may be brought against county depositories which can be brought against county treasurers, including extraordinary and summary remedies or proceedings.
*(Code 1923, §319; Code 1940, T. 12, §49.)*
##### **§ 11-4-48** Execution of and Liability Upon Warrants {#sec-11-4-48 omnilex-key=us-al-statutes--title-11--11-4-48}
All warrants drawn upon the depository must be signed by the probate judge of said county or the president of the county commission at the election of such county commission expressed in a resolution which must be spread upon the minutes and given to such depositories that may be selected. Such officer signing such warrants shall be liable for the amount of any warrant drawn and paid by such depositories without the authority of law.
*(Acts 1915, No. 378, p. 348; Code 1923, §321; Code 1940, T. 12, §51.)*
##### **§ 11-4-49** Treasurer Appointed When No Depository Designated {#sec-11-4-49 omnilex-key=us-al-statutes--title-11--11-4-49}
If the county commission is unable to designate any depository for the county funds in its county by reason of its inability to secure from any bank or savings association which is a qualified public depository within its limits terms for the handling of the county funds as provided in this article, satisfactory to such county commission, then such county commission may designate some individual who may act as treasurer of such county under such terms and conditions as may be fixed by said county commission.
*(Acts 1915, No. 378, p. 348; Code 1923, §322; Code 1940, T. 12, §52; Act 2000-748, p. 1669, §2.)*
##### **§ 11-4-50** Performance of Duties Other Than Receipt and Disbursement of Funds {#sec-11-4-50 omnilex-key=us-al-statutes--title-11--11-4-50}
All acts required by law to be performed with respect to county funds other than the receipt and disbursement of county funds by the county depository shall be performed by the presiding officer of the county commission or other like officer.
*(Acts 1915, No. 378, p. 348; Code 1923, §323; Code 1940, T. 12, §53.)*
### **Chapter 5** Coroner
##### **§ 11-5-1** Election; Term of Office {#sec-11-5-1 omnilex-key=us-al-statutes--title-11--11-5-1}
A coroner for each county shall be elected by the qualified voters thereof and shall hold office for four years from the first Monday after the second Tuesday in January next after his election and until his successor is elected and qualified.
*(Code 1852, §800; Code 1867, §935; Code 1876, §852; Code 1886, §923; Code 1896, §1073; Code 1907, §101; Code 1923, §156; Code 1940, T. 12, §54.)*
##### **§ 11-5-2** Vacancies {#sec-11-5-2 omnilex-key=us-al-statutes--title-11--11-5-2}
Vacancies in the office of coroner shall be filled by appointment of the Governor and the person appointed shall hold office for the unexpired term and until his successor is elected and qualified.
*(Code 1896, §1074; Code 1907, §102; Code 1923, §157; Code 1940, T. 12, §55.)*
##### **§ 11-5-3** Bond {#sec-11-5-3 omnilex-key=us-al-statutes--title-11--11-5-3}
*[Repealed]*
Repealed by Act 2009-744, p. 2229, §2, effective May 22, 2009.
*(Code 1852, §§802, 803; Code 1867, §§937, 938; Code 1876, §853; Code 1886, §924; Code 1896, §1075; Code 1907, §103; Code 1923, §158; Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 12, §56; Code 1940, T. 41, §93.)*
##### **§ 11-5-4** Duty to Hold Inquests, Etc {#sec-11-5-4 omnilex-key=us-al-statutes--title-11--11-5-4}
It is the general duty of the coroner to hold inquests and perform other duties as required by law.
*(Code 1876, §854; Code 1886, §925; Code 1896, §1076; Code 1907, §104; Code 1923, §159; Code 1940, T. 12, §57.)*
##### **§ 11-5-5** When to Discharge Duties of Sheriff Generally {#sec-11-5-5 omnilex-key=us-al-statutes--title-11--11-5-5}
*[Repealed]*
REPEALED BY ACT 2023-164, EFFECTIVE AUGUST 1, 2023.
The coroner must discharge the duties of the sheriff:
(1) When the office of sheriff is vacant and until his successor is qualified;
(2) When the sheriff is incompetent to act;
(3) When the sheriff is imprisoned;
(4) In cases to which the sheriff is a party; and
(5) In such cases as he is directed by the judge of probate.
*(Code 1852, §§696, 805; Code 1867, §§824, 940; Code 1876, §§736, 856; Code 1886, §§816, 927; Code 1896, §§1078, 3746; Code 1907, §§106, 5878; Code 1923, §§161, 10204; Code 1940, T. 12, §59; Code 1940, T. 54, §24.)*
##### **§ 11-5-6** When to Act as Keeper of Jail {#sec-11-5-6 omnilex-key=us-al-statutes--title-11--11-5-6}
*[Repealed]*
REPEALED BY ACT 2023-164, EFFECTIVE AUGUST 1, 2023.
The coroner shall be keeper of the jail when the sheriff is imprisoned.
*(Code 1852, §804; Code 1867, §939; Code 1876, §855; Code 1886, §926; Code 1896, §1077; Code 1907, §105; Code 1923, §160; Code 1940, T. 12, §58.)*
##### **§ 11-5-7** When to Execute Summons, Writs, Etc {#sec-11-5-7 omnilex-key=us-al-statutes--title-11--11-5-7}
*[Repealed]*
REPEALED BY ACT 2023-164, EFFECTIVE AUGUST 1, 2023.
When the sheriff is interested in any cause or proceeding, such interest not appearing on the face thereof, the judge of probate may on a proper showing by affidavit direct the coroner to execute the summons, writ, or other process in such cause or proceeding.
*(Code 1852, §806; Code 1867, §941; Code 1876, §857; Code 1886, §928; Code 1896, §1079; Code 1907, §107; Code 1923, §162; Code 1940, T. 12, §60.)*
##### **§ 11-5-8** Official Acts Valid through Process Directed to Sheriff, Etc {#sec-11-5-8 omnilex-key=us-al-statutes--title-11--11-5-8}
*[Repealed]*
REPEALED BY ACT 2023-164, EFFECTIVE AUGUST 1, 2023.
The validity of the coroner’s official acts cannot be questioned upon the ground that the process is directed to any sheriff or that it does not show a necessity for the coroner to act or other ground going to the form of the process.
*(Code 1896, §1080; Code 1907, §108; Code 1923, §163; Code 1940, T. 12, §61.)*
##### **§ 11-5-9** When Additional Bond Required; Effect of Failure to Give Bond {#sec-11-5-9 omnilex-key=us-al-statutes--title-11--11-5-9}
*[Repealed]*
REPEALED BY ACT 2023-164, EFFECTIVE AUGUST 1, 2023.
When the coroner is required to discharge the duties of sheriff, the judge of probate may in his discretion require him to give an additional bond. If the coroner fails within 10 days after such requisition to give such additional bond, his office shall be vacated, and the judge of probate must certify the vacancy to the Governor.
*(Code 1852, §809; Code 1867, §944; Code 1876, §860; Code 1886, §931; Code 1896, §1081; Code 1907, §109; Code 1923, §164; Code 1940, T. 12, §62.)*
##### **§ 11-5-10** Special Coroner - Appointment {#sec-11-5-10 omnilex-key=us-al-statutes--title-11--11-5-10}
The judge of probate has authority to appoint a special coroner:
(1) When the coroner has not qualified or the office is vacant and the emergency requires such officer;
(2) When the coroner is absent from the county, having no deputy therein;
(3) When the coroner is imprisoned; or,
(4) When the sheriff and coroner are both parties or both interested.
*(Code 1852, §807; Code 1867, §942; Code 1876, §858; Code 1886, §929; Code 1896, §1083; Code 1907, §111; Code 1923, §166; Code 1940, T. 12, §64.)*
##### **§ 11-5-11** Special Coroner - Duties {#sec-11-5-11 omnilex-key=us-al-statutes--title-11--11-5-11}
A special coroner must discharge the duties of the sheriff in such cases as the coroner is required and also when the sheriff and coroner are imprisoned and, on the direction of the judge of probate, when they are both parties or both interested.
*(Code 1852, §§808, 809; Code 1867, §§943, 944; Code 1876, §859; Code 1886, §930; Code 1896, §1084; Code 1907, §112; Code 1923, §167; Code 1940, T. 12, §65.)*
##### **§ 11-5-12** Liability of Coroner or Special Coroner for Wrongful Acts, Etc., While Discharging Duties of Sheriff {#sec-11-5-12 omnilex-key=us-al-statutes--title-11--11-5-12}
For the failure to perform any duty or the improper or neglectful performance of such duty or for any wrongful act committed under color of office by the coroner or the special coroner while discharging the duties of sheriff, such coroner and his sureties and such special coroner are liable to the same penalties, forfeitures, and judgments given by law against sheriffs in like cases to and upon the same proceedings and remedies as are given by law against sheriffs and their sureties.
*(Code 1852, §811; Code 1867, §946; Code 1876, §861; Code 1886, §932; Code 1896, §1082; Code 1907, §110; Code 1923, §165; Code 1940, T. 12, §63.)*
##### **§ 11-5-13** Applicability of Provisions of Article {#sec-11-5-13 omnilex-key=us-al-statutes--title-11--11-5-13}
The provisions of this article shall not apply to any county in which the coroner or other person performing the duties of coroner is governed by a local law or a law, the application of which is determined by the population of the county, insofar as the same are in conflict herewith.
*(Code 1923, §168; Code 1940, T. 12, §66.)*
##### **§ 11-5-30** Legislative Findings; Construction {#sec-11-5-30 omnilex-key=us-al-statutes--title-11--11-5-30}
(a) The Legislature hereby finds, determines, and declares all of the following:
(1) An unattended and sudden death is one of society’s most tragic events and should receive the appropriate caring, competent, and thorough attention of all levels of government.
(2) A suspicious, sudden, or violent death is very difficult to investigate and to accurately determine the cause and manner of death for the death certificate.
(3) Medical examiners and coroners determine the cause of death and with other forensic scientists and investigators determine the manner of death.
(4) Death certificates issued on unattended, sudden, and violent deaths greatly impact government spending decisions, the living loved ones, and insurance decisions so that the accuracy of the death certificate is of great concern to the Legislature.
(5) There are currently no minimum standards of training for county coroners.
(6) Local coroners or non-physician death investigators are necessary and critical to the investigation of unattended deaths in Alabama.
(7) The competency of unattended death investigations is directly related to the minimum education and training standards of the investigators and standards need to be established and implemented statewide.
(b) The provisions of this article are to be liberally construed to accomplish the purposes of this section and to promote the same, which are hereby declared to be public policy of this state.
*(Act 2006-581, p. 1527, §1.)*
##### **§ 11-5-31** Alabama Coroner’s Training Commission {#sec-11-5-31 omnilex-key=us-al-statutes--title-11--11-5-31}
(a) There is created the Alabama Coroner’s Training Commission to be appointed as herein provided. Appointments to the commission shall be made as follows:
(1) The President of the Alabama Coroner’s Association shall appoint one county coroner to serve an initial term of two years.
(2) The Attorney General shall appoint one district attorney to serve for an initial term of one year.
(3) The Governor shall appoint one county coroner to serve for an initial term of three years.
(4) The Director of the Alabama Department of Forensic Sciences shall appoint one person who is either a state medical examiner or a forensic scientist to serve for an initial term of two years.
(5) The Board of Directors of the Alabama Coroner’s Association shall appoint three county coroners to serve for initial terms of two years each.
(b) The membership of the commission shall be inclusive and reflect the racial, gender, geographic, urban\rural, and economic diversity of the state. The commission shall annually report to the Legislature by the second legislative day of each regular session to what extent the commission has complied with the diversity provisions provided for in this article. The initial appointees shall be appointed within 60 days of April 25, 2006, and shall serve until their successors are appointed. Subsequent appointees to the commission shall serve terms of four years. In the event of death, resignation, disqualification through loss of position of any member of the commission, or other vacancy, a successor shall be appointed by the original appointing authority and the successor so appointed to the vacancy shall serve for the remainder of the unexpired term. The commission shall elect from its membership a chair and a vice chair at an organizational meeting held no later than 30 days after at least four appointments to the commission have been made. Thereafter, the commission shall meet at the call of the chair, vice chair, or upon request of four or more members, with notice and procedure as prescribed by rules of the commission. The commission may adopt any administrative rules for transacting business that are consistent with this article. The rules shall be promulgated pursuant to the Alabama Administrative Procedure Act.
(c) A majority of the members of the commission shall constitute a quorum for the transaction of business for the performance of any duties.
(d) The commission shall develop and periodically revise a list of approved training school programs for meeting the minimum standard training for coroners and their designated assistants as further defined in this article. The commission shall also establish minimum levels of pre-service and in-service training required of coroners. Notwithstanding the foregoing, effective March 1, 2007, any coroner or deputy coroner shall complete at least 12 hours of approved training within six months of assuming office, unless he or she has at least 24 months of previous service as a county coroner or deputy coroner in the state. No costs of training, including travel expenses, shall be paid by the county commission, unless approved by vote of the majority of the membership. No other previous service shall qualify for the exemption provided in this subsection.
(e) Effective March 1, 2007, any coroner, deputy coroner, or any person authorized to officially represent the county coroner shall complete 12 hours of training, approved by the commission, during each calendar year he or she serves as coroner. No costs of training, including travel expenses, shall be paid by the county commission, unless approved by vote of the majority of the membership. The commission may waive all or any portion of the required training, as it deems appropriate.
(f) The commission may grant a waiver of the requirements of the annual inservice training upon presentation of evidence by a coroner or deputy coroner that he or she was unable to complete the training due to an emergency or extenuating circumstances.
(g) A coroner or his or her designated assistant who fails to complete the minimum annual inservice training required by this article may be suspended from office, without pay, by the Governor for not more than 90 days. At the end of the suspension period, the Governor may continue the suspension of the coroner and his or her designated assistants until he or she completes the annual minimum inservice training.
(h) When a coroner vacates the office for any reason, the succeeding coroner shall take immediate custody of the office records of his or her predecessor.
(i) From time to time, the commission may establish more stringent standards which are reasonable and prudent to improve the quality of investigation and the certification of unattended deaths in this state.
(j) The commission shall authorize, oversee, and administer the required training.
*(Act 2006-581, p. 1527, §2.)*
##### **§ 11-5-32** Conflicts of Interest {#sec-11-5-32 omnilex-key=us-al-statutes--title-11--11-5-32}
(a) A coroner who owns, operates, is employed by, or otherwise has an interest in a funeral establishment is deemed to have a conflict of interest and shall not direct business to the establishment when performing his or her duties under the laws of this state.
(b) Nothing in this section shall prevent a person from taking the body of the deceased to a funeral establishment in which the coroner has an interest if the person decides to do so without the suggestion of the coroner.
(c) The provisions of this section shall not apply if an emergency situation exists and the coroner acts in good faith to prevent a health hazard.
(d) Any person who knowingly violates subsection (a) shall, upon conviction, be guilty of a Class B misdemeanor.
*(Act 2006-581, p. 1527, §3.)*
##### **§ 11-5-33** Coroner Qualifications {#sec-11-5-33 omnilex-key=us-al-statutes--title-11--11-5-33}
(a) No person shall be eligible to hold the office of coroner unless he or she meets the following qualifications:
(1) Is a citizen of the United States.
(2) Is a resident in the county in which he or she seeks the office of coroner for at least one year prior to his or her qualifying for election to the office and remains a resident of the county during his or her term of office.
(3) Is a registered voter.
(4) Has attained the age of 25 years prior to the date of the general primary election in the year that he or she qualifies for election to the office.
(5) Has obtained a high school diploma or its recognized equivalent.
(6) Has not been convicted of a felony offense or any offense involving moral turpitude contrary to the laws of Alabama, or any other state, or the United States.
(7) Has successfully completed the next scheduled training course no longer than 180 days after his or her election or appointment, unless an affidavit affirms that the requirement of this subdivision has been met at the time of qualifying for the office.
(b) Each person offering his or her candidacy for the office of coroner shall file an affidavit with the judge of probate before whom the person has qualified to seek the office of coroner prior to or at the time of qualifying, which affidavit shall affirm that he or she meets all the qualifications required pursuant to this section.
*(Act 2006-581, p. 1527, §4.)*
##### **§ 11-5-34** Deputy Coroners {#sec-11-5-34 omnilex-key=us-al-statutes--title-11--11-5-34}
The coroner of each county is authorized to appoint such deputy coroners as are needed, with the prior approval of the county commission. Any appointment shall be in writing and shall be filed in the office of the coroner and the office of the judge of probate. The coroner of each county may delegate any of the powers of the office to one or more deputies who shall then have the same duties with respect thereto as has the coroner. Any act of a deputy shall be performed in the name of the coroner and signed by the deputy performing the act. A deputy coroner shall hold office during and subject to the pleasure of the coroner. Each deputy coroner, before entering the performance of the office, shall file with the judge of probate of the county the bond and oath of office required by law to be filed by the coroner. No compensation shall be paid to a deputy coroner without approval of a majority of the membership of the county commission.
*(Act 2006-581, p. 1527, §5.)*
##### **§ 11-5-35** Certification of Death {#sec-11-5-35 omnilex-key=us-al-statutes--title-11--11-5-35}
Any coroner or deputy coroner shall have the authority to certify any death occurring within the boundaries of the State of Alabama providing that the offense, occurrence, or incident that ultimately resulted in the death occurs within the jurisdiction of the county coroner.
*(Act 2006-581, p. 1527, §6.)*
##### **§ 11-5-36** Exceptions {#sec-11-5-36 omnilex-key=us-al-statutes--title-11--11-5-36}
(a) The following provisions of this article shall not apply to a doctor of medicine or a doctor of osteopathy licensed to practice medicine in this state who serves as a coroner or deputy coroner:
(1) Subsections (d), (e), and (i) of Section 11-5-31.
(2) Subdivision (7) of subsection (a) and subsection (b) of Section 11-5-33.
(b) Any rule promulgated by the commission pursuant to its authority under any of the sections listed in subdivisions (1) or (2) of subsection (a) shall not apply to a doctor of medicine or a doctor of osteopathy licensed to practice medicine in this state.
*(Act 2006-581, p. 1527, §7.)*
#### **Article 3** Storage and Transportation of Bodies
##### **§ 11-5-50** Transportation of Body to Forensic Science Laboratory; Storage of Body {#sec-11-5-50 omnilex-key=us-al-statutes--title-11--11-5-50}
Except where there is an agreement or local law which provides otherwise, the coroner shall be responsible for carrying out the duties required for proper transportation of a body to a forensic sciences laboratory for the purpose of performing an autopsy or any other postmortem examination ordered pursuant to Section 36-18-2. The coroner shall be responsible for storage of a body prior to transportation to a forensic sciences laboratory when necessary. Upon receipt of an order issued pursuant to Section 36-18-2, the coroner shall coordinate with the Department of Forensic Sciences regarding the storage and transportation of the body to the forensic sciences laboratory designated by the Department of Forensic Sciences.
*(Act 2010-542, p. 943, §1.)*
##### **§ 11-5-51** Reimbursement of Expenses {#sec-11-5-51 omnilex-key=us-al-statutes--title-11--11-5-51}
The actual expenses incurred by the coroner in performing the duties set out herein shall be reimbursed as follows: If the autopsy or any other postmortem examination is ordered as provided in Section 36-18-2, the costs incurred for storage and transportation of the body to a facility operated by the Department of Forensic Sciences for the purpose of performing the autopsy or any other postmortem examination shall be paid by the law enforcement agency, excluding the office of the district attorney or grand jury, with primary jurisdiction over the investigation surrounding the death.
*(Act 2010-542, p. 943, §2.)*
##### **§ 11-5-52** Itemization of Expenses; Statement {#sec-11-5-52 omnilex-key=us-al-statutes--title-11--11-5-52}
(a) To obtain reimbursement of expenses as authorized in this article, the coroner shall itemize the necessary expenses incurred for the storage of the body prior to transportation and for transportation of the body from its location to the designated forensic sciences laboratory and transportation from the designated forensics laboratory to a designated funeral home or other appropriate location. The itemized statement shall be delivered to the county commission by the coroner within 10 days of the date the body is delivered to the designated forensic sciences laboratory.
(b) Upon receipt of the statement from the coroner, the county commission shall prepare and send an itemized statement for reimbursement of expenses to the entity responsible for reimbursement as provided in Section 11-5-51. Payment shall be remitted to the county commission by the responsible entity within 30 days of the date of receipt of the itemized statement.
*(Act 2010-542, p. 943, §3.)*
##### **§ 11-5-53** Payments {#sec-11-5-53 omnilex-key=us-al-statutes--title-11--11-5-53}
All payments remitted under this article shall be paid into the county general fund and expended only for expenses related to the storage and transportation of bodies for purposes of autopsy or any other postmortem examination as provided in this article. The coroner shall be responsible for providing the county commission itemized statements of all expenses due to be paid for the costs of storage and transportation of bodies as provided in this article and upon receipt of an invoice, the county commission shall make timely payment of incurred expenses. If the coroner has complied with Section 11-5-52, the county commission shall pay the expenses from monies deposited in the county general fund and expended as provided in this section. If the coroner has not complied with Section 11-5-52, the county commission shall not be responsible for payment of any expenses.
*(Act 2010-542, p. 943, §4.)*
##### **§ 11-5-54** Assistance Rendered Upon Request for Autopsy or Postmortem Examination {#sec-11-5-54 omnilex-key=us-al-statutes--title-11--11-5-54}
In the event an autopsy or any other postmortem examination is requested for purposes other than in the course of an investigation, the coroner shall not be responsible for the storage or transportation of the body. The coroner may provide assistance to the person or entity requesting the autopsy or any other postmortem examination if the person or entity pays all expenses incurred by the coroner prior to the services being rendered. Payment shall be made payable to the county general fund and expended as provided in Section 11-5-53.
*(Act 2010-542, p. 943, §5.)*
### **Chapter 6** Engineer
#### **Article 1** General Provisions
##### **§ 11-6-1** Appointment; Salary {#sec-11-6-1 omnilex-key=us-al-statutes--title-11--11-6-1}
The county commission shall be authorized to appoint a county engineer or chief engineer of the division of public roads who shall serve full time in such capacity for the county and the amount of whose salary shall be such sum as may be fixed by the said county commission payable in equal monthly installments from county funds available for that purpose when properly entered into the minutes of the county commission. Consulting engineers and/or consulting firms acting in the capacity as county engineer or chief engineer of the division of public roads shall not be permitted. The county may enter into a contract of employment of appointment to office of said engineer for a period of time not to exceed five years.
*(Acts 1971, No. 1945, p. 3143, §2; Acts 1986, No. 86-395, p. 582, §1.)*
##### **§ 11-6-2** Qualifications {#sec-11-6-2 omnilex-key=us-al-statutes--title-11--11-6-2}
The person appointed as county engineer, or chief engineer of the division of public roads within the meaning of this article, shall be a registered professional engineer in the State of Alabama in good standing and, in addition, he shall have had not less than three years’ experience in the maintenance and construction of highways and bridges. The county engineer need not be qualified as a land surveyor in order for the State Department of Transportation to participate in the payment of a portion of said county engineer’s salary as provided in Section 11-6-4.
*(Acts 1971, No. 1945, p. 3143, §3; Acts 1976, No. 338, p. 368; Acts 1977, No. 463, p. 603; Acts 1977, No. 470, p. 612; Acts 1977, No. 797, p. 1376; Acts 1978, No. 18, p. 84; Acts 1978, No. 382, p. 346; Acts 1979; No. 79-273, p. 412; Acts 1979, No. 79-571, p. 1020; Acts 1980, No. 80-111, p. 163; Acts 1981, No 81-707, p. 1188; Acts 1986, No. 86-395, p. 582, §2.)*
##### **§ 11-6-3** Duties {#sec-11-6-3 omnilex-key=us-al-statutes--title-11--11-6-3}
It shall be the duty of the said county engineer or chief engineer of the division of public roads, subject to the approval and direction of the county commission to:
(1) Employ, supervise, and direct such assistants as are necessary to construct and maintain properly the county public roads, highways, and bridges;
(2) Perform such engineering and surveying services as may be required to prepare and maintain the necessary maps, plans, and records;
(3) Maintain the necessary accounting records to reflect the cost of constructing and maintaining the county highway system; and
(4) Perform such other duties as are necessary and incident to the operation of the county highway system as directed by the county commission.
*(Acts 1971, No. 1945, p. 3143, §4.)*
##### **§ 11-6-4** State Participation in Salary {#sec-11-6-4 omnilex-key=us-al-statutes--title-11--11-6-4}
When any county has established the office of county engineer or chief engineer of the division of public roads the Director of the Department of Transportation shall, upon application of the county commission, authorize the expenditure out of the available funds of the State Department of Transportation, of an amount equal to 70 percent of the annual salary of the engineer to such county, which shall apply to the payment of the annual salary of the engineer, with such payments to be made in equal monthly installments; provided, that the amount contributed or paid by the State Department of Transportation to any county, not including retirement contributions, shall not exceed 70 percent of step 18, or the top step, whichever is greater, of the salary schedule under the Professional Civil Engineer II, Senior classification in any one year.
*(Acts 1971, No. 1945, p. 3143, §5; Act 2019-2, 1st Sp. Sess., §3.)*
##### **§ 11-6-5** Effect of County Civil Service or Merit System Laws {#sec-11-6-5 omnilex-key=us-al-statutes--title-11--11-6-5}
In those counties whose employees are governed by a civil service or merit system law, the provisions of such law shall remain in full force and effect.
*(Acts 1971, No. 1945, p. 3143, §6.)*
##### **§ 11-6-6** Construction of Article {#sec-11-6-6 omnilex-key=us-al-statutes--title-11--11-6-6}
*[Repealed]*
Repealed by Act 2019-2, 1st Sp. Sess., §12, effective March 12, 2019.
*(Acts 1971, No. 1945, p. 3143, §7; Act 2019-2, 1st Sp. Sess., §12.)*
#### **Article 2** Engineer Trainees
##### **§ 11-6-20** Appointment; Full-Time Office {#sec-11-6-20 omnilex-key=us-al-statutes--title-11--11-6-20}
The county commission or like governing body of each of the several counties shall be authorized to appoint an engineer trainee as assistant to the county engineer who shall devote his full time to the duties of his office.
*(Acts 1975, 4th Ex. Sess., No. 98, §1.)*
##### **§ 11-6-21** Qualifications {#sec-11-6-21 omnilex-key=us-al-statutes--title-11--11-6-21}
Any person appointed to the position of engineer trainee under the provisions of this article shall be a graduate engineer and a certified engineer intern as provided in Chapter 11 of Title 34, in the State of Alabama and in good standing; provided, that should an acceptable candidate possessing these qualifications not be available, such county may appoint as engineer trainee within the terms of this article a nongraduate certified engineer intern in good standing.
*(Acts 1975, 4th Ex. Sess., No. 98, §2; Acts 1997, No. 97-683, p. 1332, §1.)*
##### **§ 11-6-22** Duties {#sec-11-6-22 omnilex-key=us-al-statutes--title-11--11-6-22}
It shall be the duty of the engineer trainee, appointed under provisions of this article, subject to approval and direction of the county commission or like governing body, to assist the county engineer or chief engineer of the division of public roads of said county in all duties of said engineer as prescribed by law or as directed by the county commission and to perform such other duties as necessary and incident to the operation of the county highway system.
*(Acts 1975, 4th Ex. Sess., No. 98, §3.)*
##### **§ 11-6-23** State Participation in Salary {#sec-11-6-23 omnilex-key=us-al-statutes--title-11--11-6-23}
(a) Upon application of the county commission or like governing body of the several counties of the state, the Department of Transportation shall participate in the salary of the engineer trainee in the county in an amount equal to 50 percent of the annual salary of the engineer trainee. The amount is to be paid to the county in equal monthly installments to reimburse the fund of the county from which the salary of the engineer trainee is paid.
(b) The amount contributed or paid by the Department of Transportation to any county under this article shall not include retirement contributions, Social Security, unemployment compensation, or other employee benefits, nor shall the amount contributed or paid exceed 50 percent of the annual salary schedule of the Department of Transportation under the Professional Civil Engineer I classification, step 18, or the top step, whichever is greater, as established by the Department of Transportation for the year in which applied.
*(Acts 1975, 4th Ex. Sess., No. 98, §4; Acts 1993, No. 93-371, p. 633, §1; Act 2019-2, 1st Sp. Sess., §3.)*
##### **§ 11-6-24** Considered County Employee {#sec-11-6-24 omnilex-key=us-al-statutes--title-11--11-6-24}
Engineer trainees appointed under provisions of this article shall in all respects be considered as employees of the counties by which employed.
*(Acts 1975, 4th Ex. Sess., No. 98, §5.)*
##### **§ 11-6-25** Provisions of Article Cumulative {#sec-11-6-25 omnilex-key=us-al-statutes--title-11--11-6-25}
The provisions of this article are cumulative and in addition to all other statutes providing for assistance to the several counties for the maintenance and betterment of public roads.
*(Acts 1975, 4th Ex. Sess., No. 98, §6.)*
### **Chapter 7** Surveyors
##### **§ 11-7-1** Number; Qualifications, Appointment, and Term of Office {#sec-11-7-1 omnilex-key=us-al-statutes--title-11--11-7-1}
The county commission is authorized to appoint two surveyors for the county, who shall hold office for the term of three years and until their successors may be qualified, unless sooner removed. Before making an appointment, the court must be satisfied by evidence that the person appointed is qualified to discharge the duties of a surveyor. It is no objection that a person appointed county surveyor is a qualified surveyor of an adjacent county, but he must qualify in each county.
*(Code 1852, §812; Code 1867, §947; Code 1876, §862; Code 1886, §933; Code 1896, §3889; Code 1907, §6016; Code 1923, §10345; Code 1940, T. 56, §1.)*
##### **§ 11-7-2** Bond {#sec-11-7-2 omnilex-key=us-al-statutes--title-11--11-7-2}
The official bonds of county surveyors shall be $1,000.00, the premiums on said bonds to be paid by the persons making such bonds without expense to the county.
*(Acts 1933, Ex. Sess., No. 191, p. 203; Code 1940, T. 41, §94.)*
##### **§ 11-7-3** Removal {#sec-11-7-3 omnilex-key=us-al-statutes--title-11--11-7-3}
The county commission has power to remove either or both such surveyors if satisfied the public good requires removal and, in the event of removal, to make a new appointment.
*(Code 1852, §813; Code 1867, §948; Code 1876, §863; Code 1886, §934; Code 1896, §3890; Code 1907, §6017; Code 1923, §10346; Code 1940, T. 56, §2.)*
##### **§ 11-7-4** Duties Generally {#sec-11-7-4 omnilex-key=us-al-statutes--title-11--11-7-4}
It is the duty of the surveyor faithfully to execute and return all orders of survey directed to him from any court of record in the state and to make all surveys of lands or lots in the county at the request of any person interested therein on payment or tender of his probable fees for the same.
*(Code 1852, §815; Code 1867, §950; Code 1876, §865; Code 1886, §936; Code 1896, §3892; Code 1907, §6019; Code 1923, §10348; Code 1940, T. 56, §3.)*
##### **§ 11-7-5** Right of Entry Upon Lands for Execution of Court Ordered Survey; Penalty for Obstruction of Surveyor, Etc {#sec-11-7-5 omnilex-key=us-al-statutes--title-11--11-7-5}
In the execution of an order of survey directed to him by any court, the surveyor and his assistants may, without the consent of the occupant or claimant of ownership, enter upon any lands necessary to be surveyed or entered upon and survey the same in an orderly and proper manner, and any person who shall obstruct him or his assistants therein shall be punished as for contempt of court.
*(Code 1907, §6020; Code 1923, §10349; Code 1940, T. 56, §4.)*
##### **§ 11-7-6** Fees for Court Ordered Survey Taxed as Costs {#sec-11-7-6 omnilex-key=us-al-statutes--title-11--11-7-6}
When a survey is directed by any court of record, the fees of the surveyor are to be taxed in the bill of costs.
*(Code 1852, §817; Code 1867, §952; Code 1876, §867; Code 1886, §938; Code 1896, §3894; Code 1907, §6022; Code 1923, §10351; Code 1940, T. 56, §6.)*
##### **§ 11-7-7** Oath of Chain Bearers; Preparation and Contents of Plat of Lands or Lots Surveyed {#sec-11-7-7 omnilex-key=us-al-statutes--title-11--11-7-7}
The surveyor must swear his chain bearers to perform their duties without favor or affection, and must make a plat of all lands or lots he surveys for the person requiring the same, and write on such plat the names of his chain bearers and also his fees for the same.
*(Code 1852, §816; Code 1867, §951; Code 1876, §866; Code 1886, §937; Code 1896, §3893; Code 1907, §6021; Code 1923, §10350; Code 1940, T. 56, §5.)*
##### **§ 11-7-8** When Survey or Plat Evidence of Facts Stated {#sec-11-7-8 omnilex-key=us-al-statutes--title-11--11-7-8}
A survey or plat of land made by a county surveyor, signed by him officially and stating the contents, courses, distances, and designation at the land office of any land surveyed by him, is presumptive evidence of the facts stated if the opposite party has notice that such survey is to be made.
*(Code 1852, §818; Code 1867, §953; Code 1876, §868; Code 1886, §939; Code 1896, §3895; Code 1907, §6023; Code 1923, §10352; Code 1940, T. 56, §7.)*
##### **§ 11-7-9** Liability for Damages {#sec-11-7-9 omnilex-key=us-al-statutes--title-11--11-7-9}
A county surveyor is liable on his official bond, for any damages done by a wrongful survey or plat.
*(Code 1852, §819; Code 1867, §954; Code 1876, §869; Code 1886, §940; Code 1896, §3896; Code 1907, §6024; Code 1923, §10353; Code 1940, T. 56, §8.)*
##### **§ 11-7-10** Rights as to Fences or Buildings Not Lost by Straightening or Location of Section, Etc., Lines {#sec-11-7-10 omnilex-key=us-al-statutes--title-11--11-7-10}
When a survey of land is made by a county surveyor for the purposes of straightening or locating section or other lines, the owners of the fences or buildings erected on or near the original or supposed lines shall not lose their right to the same when the survey places the fences or buildings upon the lands of others.
*(Code 1852, §820; Code 1867, §956; Code 1876, §871; Code 1886, §942; Code 1896, §3898; Code 1907, §6026; Code 1923, §10355; Code 1940, T. 56, §10.)*
##### **§ 11-7-11** Right of Entry Upon Lands for Execution of Surveys Requested by Interested Persons {#sec-11-7-11 omnilex-key=us-al-statutes--title-11--11-7-11}
In making any survey of lands at the request of any person interested therein, the surveyor and his assistants may without the consent of the owner or person in possession enter upon and survey in an orderly manner any lands which it may be necessary for them to enter on or survey in order to make an accurate survey of the lands.
*(Code 1907, §6027; Code 1923, §10356; Code 1940, T. 56, §11.)*
##### **§ 11-7-12** Compensation of Surveyor, Chain Bearers, and Markers {#sec-11-7-12 omnilex-key=us-al-statutes--title-11--11-7-12}
The county commission must fix the rates of compensation of the surveyor as well as that of his chain bearers and markers.
*(Code 1852, §820; Code 1867, §955; Code 1876, §870; Code 1886, §941; Code 1896, §3897; Code 1907, §6025; Code 1923, §10354; Code 1940, T. 56, §9.)*
### **Chapter 8** Financial Affairs Generally
##### **§ 11-8-1** Fiscal Year Defined {#sec-11-8-1 omnilex-key=us-al-statutes--title-11--11-8-1}
For the purposes of this chapter the fiscal year shall begin October 1 and shall end September 30 following.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §91.)*
##### **§ 11-8-2** Purpose of Chapter {#sec-11-8-2 omnilex-key=us-al-statutes--title-11--11-8-2}
It is the purpose of this chapter to vest in the county commission more efficient power and control over all public funds that may now or hereafter be under its management and control, to limit its power and authority to incur obligations and to approve and pay claims for current operating expenses in any fiscal year to the income of such year available for such purposes and to authorize the refunding of outstanding general obligations, other than bonded indebtedness, so that the provisions of this chapter may be put into effective operation.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §73.)*
##### **§ 11-8-3** Annual Budget {#sec-11-8-3 omnilex-key=us-al-statutes--title-11--11-8-3}
(a) It shall be the duty of the county commission, at some meeting in September of each calendar year, but not later than October 1, to prepare and adopt a budget for the fiscal year beginning on October 1 of the current calendar year which shall include all of the following:
(1) An estimate of the anticipated revenue of the county for all public funds under its supervision and control including all unexpended balances as provided in Section 11-8-6.
(2) An estimate of expenditures for county operations.
(3) Appropriations for the respective amounts that are to be used for each of such purposes.
(b) The appropriations made in the budget shall not exceed the estimated total revenue of the county available for appropriations.
(c) The budget adopted, at a minimum, shall include any revenue required to be included in the budget under the provisions of Alabama law and reasonable expenditures for the operation of the offices of the judge of probate, tax officials, sheriff, county treasurer, the county jail, the county courthouse, and other offices as required by law.
(d) In order that the budget adopted is based upon an estimate of revenue and operating expenditures as nearly correct as possible, at least 60 days before the meeting of the county commission at which the county budget is adopted:
(1) Any public official who receives public funds, including any official entitled to ex officio fees, or who issues any kind of order payable out of the county treasury without approval of such county commission shall furnish to the county commission in writing an estimate of the revenue and of the anticipated expenditures the official will be called upon to make during the next fiscal year.
(2) The judge of probate, tax officials, sheriff, county treasurer, and any other county official or employee named by the county commission shall prepare and submit to the county commission an itemized estimate of the amount the official or employee believes to be necessary for personnel, office supplies, and other expenditures during the following fiscal year. Any official entitled to ex officio fees shall include in his or her estimate the estimated amount of any ex officio fees the official will receive during the following fiscal year.
(e) Based upon the estimated revenue and expenditures set out in subsection (d), together with any other financial information available to the county commission regarding the anticipated revenue and expenditures for the next fiscal year, the county commission shall approve a budget which includes the expenditures it deems proper for the next fiscal year.
(f) Following the adoption of the budget, no obligation incurred by any county official or office over and above the amount or amounts approved and appropriated by the county commission shall be an obligation of the county unless the obligation is approved by an affirmative vote of a majority of the members of the county commission.
(g) The budget may be amended during the fiscal year as determined necessary by affirmative vote of a majority of the members of the county commission. No amendment may authorize an expenditure which exceeds anticipated revenue of the county except as otherwise specifically authorized by general law.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §74; Act 2007-488, p. 1037, §1.)*
##### **§ 11-8-4** Principal and Interest on Refunding Warrants to Constitute Part of Annual County Operating Budget; Payment of Same {#sec-11-8-4 omnilex-key=us-al-statutes--title-11--11-8-4}
Where counties issue or have heretofore issued refunding warrants in lieu of obligations outstanding, the interest of such outstanding warrants together with the principal thereof maturing in any fiscal year, shall constitute a part of the current operating budget of such county for that fiscal year and shall be paid out of funds available in such year for operating purposes, unless funds are provided otherwise for such payment.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §75.)*
##### **§ 11-8-5** Temporary Loans to Constitute Part of Annual County Operating Revenue and Expenses in Budget; Payment of Same {#sec-11-8-5 omnilex-key=us-al-statutes--title-11--11-8-5}
In making up the budget provided for under this chapter the amount borrowed on temporary loans in anticipation of the collection of taxes to be made during each fiscal year shall be included as a part of the operating revenue of the county for such year and the amount of such temporary loan, principal, and interest payable in each fiscal year, shall constitute a part of the current operating expenses to be included in the budget of the county for the fiscal year in which such loans are payable and shall be paid out of the funds pledged therefor.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §85.)*
##### **§ 11-8-6** Disposition of Unexpended Balances at End of Fiscal Year {#sec-11-8-6 omnilex-key=us-al-statutes--title-11--11-8-6}
At the end of every fiscal year any unexpended balances remaining in the several funds set up under the provisions of this chapter shall go forward into the respective several funds for the succeeding year, and such balance or balances shall constitute a part of the income available for such fiscal year and shall be handled, appropriated, and disbursed as any other income for that year.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §77.)*
##### **§ 11-8-7** Record of Financial Status - Required; Contents; Public Examination {#sec-11-8-7 omnilex-key=us-al-statutes--title-11--11-8-7}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §79.)*
##### **§ 11-8-8** Record of Financial Status - Maintenance, Etc {#sec-11-8-8 omnilex-key=us-al-statutes--title-11--11-8-8}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §80.)*
##### **§ 11-8-9** Authority to Issue Orders for Warrants or Checks {#sec-11-8-9 omnilex-key=us-al-statutes--title-11--11-8-9}
No warrant shall be issued or check drawn on the county treasury or county depository by any person except as authorized by the chair of the county commission or such other officer as may be designated by such county commission, unless otherwise provided by law, and officers who are authorized to pay claims which have not been first approved by the county commission shall issue orders for warrants or checks pursuant to procedures established by the county commission.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §76; Act 2007-488, p. 1037, §1.)*
##### **§ 11-8-10** Warrants or Orders for Payment of Money Not to Be Issued until Funds Available {#sec-11-8-10 omnilex-key=us-al-statutes--title-11--11-8-10}
No warrant or order for the payment of money shall be issued under authority of the county commission until funds are available for its payment upon presentation to the treasurer or depository pursuant to procedures established by the county commission.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §78; Act 2007-488, p. 1037, §1.)*
##### **§ 11-8-11** Investment of Surplus Funds in United States Securities {#sec-11-8-11 omnilex-key=us-al-statutes--title-11--11-8-11}
The county commission is hereby authorized to invest the remaining surplus in any fund, after the adoption of the budget or after provision has been made for anticipated indebtedness, in interest-bearing securities issued by the United States government which are guaranteed as to principal and which are redeemable upon application. This section shall be retroactive and investments heretofore made are hereby ratified and approved.
*(Acts 1943, No. 505, p. 480.)*
##### **§ 11-8-12** Appropriations by Counties to Lurleen B. Wallace Memorial Cancer Hospital Fund {#sec-11-8-12 omnilex-key=us-al-statutes--title-11--11-8-12}
Any county commission is hereby authorized to make appropriations to the Lurleen B. Wallace Memorial Cancer Hospital Fund, Inc., incorporated May 28, 1968.
*(Acts 1969, No. 838, p. 1543.)*
##### **§ 11-8-13** Office Supplies and Ex Officio Fees of County Officials {#sec-11-8-13 omnilex-key=us-al-statutes--title-11--11-8-13}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §88.)*
##### **§ 11-8-14** Appointment of Officers and Employees {#sec-11-8-14 omnilex-key=us-al-statutes--title-11--11-8-14}
*[Repealed]*
Repealed by Act 2007-488, p. 1037, §2, effective September 1, 2007.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §89.)*
##### **§ 11-8-15** Emergencies {#sec-11-8-15 omnilex-key=us-al-statutes--title-11--11-8-15}
In the event any situation resulting from an act of God or the public enemy over which the county commission has no control results in an appreciable obligation against the county over and above what said county commission has reason to anticipate and for which no moneys from the current year’s income are available to pay, such county commission may issue its interest-bearing warrants as now authorized by law in an amount sufficient to pay such emergency obligation and the interest and maturities of principal of such warrants shall constitute a part of the budget for the year in which they mature. But before such warrants shall be authorized or sold under this section, such county commission shall inquire into and find that such emergency obligation has arisen, and such finding shall be spread upon the minutes of its proceedings.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §90.)*
##### **§ 11-8-16** Applicability of Provisions of Chapter - County Bonds {#sec-11-8-16 omnilex-key=us-al-statutes--title-11--11-8-16}
The provisions of this chapter shall not apply to county bonds now outstanding or that may be hereafter issued under authority of law.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §86.)*
##### **§ 11-8-17** Applicability of Provisions of Chapter - Public School Funds {#sec-11-8-17 omnilex-key=us-al-statutes--title-11--11-8-17}
The provisions of this chapter shall not apply to public school funds administered by county boards of education by whatever name they may bear.
*(Acts 1935, No. 379, p. 803; Code 1940, T. 12, §87.)*
### **Chapter 8A** County Bond Financing Review
##### **§ 11-8A-1** Definitions {#sec-11-8a-1 omnilex-key=us-al-statutes--title-11--11-8A-1}
As used in this chapter, the following words shall have the following meanings:
(1) BOND FINANCING AGREEMENT. An agreement or other document relating to the sale or issuance of bonds including, but not limited to, a bond purchase agreement, a loan agreement, a refinancing agreement, or documents providing for bonds sold or issued on a competitive sale basis.
(2) BONDS. Bonds, bond anticipation notes, warrants, warrant anticipation notes, or indebtedness issued or entered into on behalf of the county or by the county commission for a term of at least three years or more.
(3) BUSINESS DAY. A day, other than a Saturday or a Sunday, on which commercial banking institutions are open for business in the State of Alabama and a day on which the payment system of the Federal Reserve System is operational.
(4) CAPITAL EXPENDITURE. Any cost or expense of a type that is properly chargeable to a capital account under general federal income tax principles.
(5) GENERAL OBLIGATION INDEBTEDNESS. A bond financing agreement which, according to its terms, will be repaid from any funds at the disposal of the county commission.
(6) GENERAL OPERATING EXPENSES. Any expense incurred by a county in the general operation and function of the county. The term includes salaries and other associated expenses, but does not include a capital expenditure or expense.
(7) LIMITED OBLIGATION INDEBTEDNESS. Bonds which, according to their terms, are required to be paid solely from the proceeds of a specific tax, fee, license, charge, or other specific revenue stream.
(8) NET PRESENT VALUE SAVINGS. The projected cost savings to the county from refinancing any bonds, by comparing the net present value of the costs of the bonds proposed for refunding, including the original costs of issuance and the payment of principal and interest on the bonds proposed for refunding, with the net present value of the costs of the proposed bonds, including the costs of issuance and refinancing and the payment of principal and interest on the proposed bonds.
(9) SWAP AGREEMENT. A swap agreement as defined in Article 3, commencing with Section 41-1-40, of Chapter 1 of Title 41.
*(Act 2009-757, p. 2287, §1.)*
##### **§ 11-8A-2** Compliance with Chapter {#sec-11-8a-2 omnilex-key=us-al-statutes--title-11--11-8A-2}
Notwithstanding any other law, after October 1, 2009, no county commission may enter into any bond financing agreement or other transaction related to establishing bonded indebtedness that constitutes or creates an obligation, debt, or charge against the credit or taxing power of the county until and unless the county has satisfied the requirements of this chapter.
*(Act 2009-757, p. 2287, §2.)*
##### **§ 11-8A-3** County Government Bond Financing Review Form {#sec-11-8a-3 omnilex-key=us-al-statutes--title-11--11-8A-3}
(a) In addition to any and all other documents presented for examination and execution of a bond financing agreement which, for the purposes of this chapter, takes place at the time a county commission makes an official award of the bonds, the county commission shall execute a county government bond financing review form. The standard review form shall be prepared by the Department of Examiners of Public Accounts and shall include statements to the effect that:
(1) The county commission has considered whether it can satisfy its financial obligations for the life of the bonds.
(2) In the case of limited obligation indebtedness, the county commission has identified the source for the debt service payments for the life of the bonds, and in the case of general obligation indebtedness, the county commission has indicated that the full faith and credit of the county has been pledged for the debt service payments for the life of the bonds.
(3) The county commission has considered the period of usefulness of the improvement or property for which the bonds are to be issued in light of the duration of the term of the bonds under the bond financing agreement.
(4) The county commission acknowledges that bond proceeds shall not be used for general operating expenses of the county.
(5) The county commission has received from the bond underwriter, bond counsel, issuer’s counsel, trustee, and any others associated with the issuance of bonds an itemized listing of their respective fees and all other costs which shall not be subject to change prior to the sale or issuance of bonds.
(6) The county commission has received from the bond underwriter a clear and understandable written proposal explaining all details of the proposed bond issue, its repayment schedule, and any external factors which could affect the total cost to the county if it issues the bonds.
(7) The county commission has considered the effect, if any, that the bonds will have on the county’s constitutional debt limit.
(8) The county commission has received from the bond underwriter information demonstrating that the estimated interest rate on the bonds is reasonable and, that if information regarding similar recent issuances is available, the interest rates are comparable with other similar issuances based on current bond market conditions on the date of execution of the bond financing agreement.
(b) If the proceeds of the proposed bonds are to be used in whole or in part for the purpose of refinancing or refunding outstanding bonds, the county government bond financing review form shall also include statements to the effect that:
(1) The county commission understands how the issuance of refunding bonds may extend the county’s initial debt repayment period and the total cost paid by the county by the end of the refunding period.
(2) The county commission has considered whether the refunding bonds will create net present value savings for the county, including the costs of refinancing.
(c) In connection with a swap agreement, the county government bond financing review form shall include statements to the effect that:
(1) The county commission has complied with paragraph a. of subdivision (2) of Section 41-1-42.
(2) The county commission has reviewed or had explained by the adviser selected as provided in Section 11-8A-5 all documentation provided pertaining to the swap agreement as required in subsection (d).
(3) The county commission has designated an employee or official who will have primary responsibility for the consideration, execution, and monitoring of interest rate swaps and financial hedges entered into by the county.
(4) The county commission has determined whether the county’s obligations under the swap agreement constitute a general obligation indebtedness of the county and whether the source of payment is sufficient.
(5) The county commission has sought and received specific information disclosing the potential risks inherent in the swap agreement including those risks commonly referred to in the derivatives industry as basis risk, tax risk, interest rate risk, counterparty risk, termination risk, market-access risk, rollover or anticipation risk, and credit risk.
(d) The county government bond financing review form shall also include a statement acknowledging that all enumerated items on the review form have been considered by the county commission, and that the county commission has voted to enter into the bond financing agreement or swap agreement by an affirmative vote of a majority of the members of the county commission. The statement of acknowledgment shall be signed by the chair of the county commission or another commission member designated by the county commission and the adviser or consultant utilized by the county commission pursuant to Section 11-8A-5.
(e) A copy of the county government bond financing review form shall be forwarded to the Department of Examiners of Public Accounts within 10 business days of the issuance of the bonds or swap agreement. All county government bond financing review forms shall be kept on file at the department and shall be available for public inspection for a period of seven years.
*(Act 2009-757, p. 2287, §3.)*
##### **§ 11-8A-4** Required Documentation {#sec-11-8a-4 omnilex-key=us-al-statutes--title-11--11-8A-4}
(a) In addition to the requirements of Section 11-8A-3, the bond financing agreement documents shall include a detailed itemization of the costs and fees which will be paid directly by the county commission or from bond proceeds under the bond financing agreement. This itemization shall include a statement acknowledging that the amounts of these costs and fees have been presented and explained to all members of the county commission prior to the sale of bonds. The acknowledgement statement shall be signed by the chair of the county commission or another commission member designated by the county commission and by the authorized signatory for the bond underwriter.
(b) In connection with a swap agreement, the documentation necessary to effectuate the swap agreement shall also include a statement from the authorized signatory for the bond underwriter or authorized signatory of the provider of the swap agreement to the effect that:
(1) It has provided the county commission with a disclosure of the potential risks inherent in the swap agreement.
(2) It has disclosed all fees associated with the swap agreement.
(3) It has provided the county commission with documentation necessary to effectuate the swap agreement including master agreements, schedules, credit support annexes, confirmations, legal opinions, fairness opinions, and any other information necessary to comply with subdivisions (3) and (5) of subsection (c) of Section 11-8A-3.
*(Act 2009-757, p. 2287, §4.)*
##### **§ 11-8A-5** Preparatory Advice and Consultation {#sec-11-8a-5 omnilex-key=us-al-statutes--title-11--11-8A-5}
In preparing the county government bond financing review form, the county commission shall consult with and obtain advice from either an attorney for the county, the county administrator, or, at the option of the county commission, a certified public accountant regarding any and all bond or swap proposals received by the county. The person or persons utilized by the county commission for advice and consultation shall review all documents to be included at the execution of the bond financing agreement or swap agreement.
*(Act 2009-757, p. 2287, §5.)*
### **Chapter 9** Warrants for Utility Purposes
#### **Article 1** Warrants or Certificates of Indebtedness for Sanitary Sewer Systems
##### **§ 11-9-1** “Special Sanitary Tax” Defined; Applicability of Provisions of Article {#sec-11-9-1 omnilex-key=us-al-statutes--title-11--11-9-1}
The term “special sanitary tax” wherever used in this article means any special annual ad valorem tax upon all taxable property in a county, the proceeds of which are or may be required to be used exclusively as a sanitary fund.
The provisions of this article shall apply to each county in this state which is now levying or may hereafter levy a special sanitary tax.
*(Acts 1955, No. 263, p. 610, §1.)*
##### **§ 11-9-2** Authority for Issuance; Form, Terms, Denominations, Etc.; Sale and Disposition of Proceeds; Pledge for Payment of Principal and Interest Generally {#sec-11-9-2 omnilex-key=us-al-statutes--title-11--11-9-2}
Each county which is now levying or may hereafter levy a special sanitary tax shall have the power from time to time to sell and issue, in addition to all other securities which it may now or hereafter be authorized to issue, interest-bearing warrants or certificates of indebtedness of such county for the purpose of paying the costs of acquiring, providing, constructing, enlarging or extending a sanitary sewer system or systems or any part or parts thereof, including sanitary sewers, outfall lines, a sewage disposal plant or plants and appurtenances to any thereof; provided, that the maximum principal amount of warrants and certificates of indebtedness that may be issued under the provisions of this article shall not exceed $1,500,000.00.
Any such warrants or certificates of indebtedness may be in such denomination or denominations, may have such maturity or maturities not exceeding 20 years from their date, may bear interest at such rate or rates not exceeding six percent per annum payable semiannually, may be payable at such place or places whether within or without this state, may be executed in such manner and may contain such terms not in conflict with the provisions of this article, all as the county commission of the county may provide in the proceedings wherein the warrants or certificates of indebtedness are authorized to be issued.
All such warrants and certificates of indebtedness shall be sold only at public sale at such time or times and in such manner and after such notice as the county commission of the county may direct. All such warrants and certificates of indebtedness shall evidence general obligation debts of the county by which they are issued and the full faith and credit of the county shall be irrevocably pledged for the payment of the principal thereof and interest thereon. The proceeds derived from the sale of any such warrants or certificates of indebtedness shall be used solely for the purposes for which they are authorized to be issued, including the payment of any expenses incurred in connection with the issuance thereof.
*(Acts 1955, No. 263, p. 610, §2.)*
##### **§ 11-9-3** Pledges of Special Sanitary Tax for Payment of Principal and Interest {#sec-11-9-3 omnilex-key=us-al-statutes--title-11--11-9-3}
The county commission of the county issuing any such warrants or certificates of indebtedness shall have the power to pledge and to use or cause to be used for the payment of the principal of and interest on such warrants and certificates of indebtedness so much as may be necessary for such purpose of the proceeds from the special sanitary tax levied by said county.
If more than one such pledge shall be made with respect to the proceeds from the special sanitary tax, then such pledges shall take precedence in the order in which they are made unless the proceedings making any such pledge shall expressly provide that such pledge shall be on a parity with or subordinate to a subsequent pledge of the special sanitary tax.
Any such warrants or certificates of indebtedness for which such pledge may be made shall constitute preferred claims against the proceeds of the special sanitary tax so pledged and shall have preference over claims against said proceeds for the maintenance, repair and operation of sanitary facilities and all other claims against said proceeds.
*(Acts 1955, No. 263, p. 610, §3.)*
##### **§ 11-9-4** Investment of Trust Funds in Warrants or Certificates of Indebtedness {#sec-11-9-4 omnilex-key=us-al-statutes--title-11--11-9-4}
Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in warrants and certificates of indebtedness issued under the provisions of this article.
*(Acts 1955, No. 263, p. 610, §4.)*
##### **§ 11-9-5** Issuance of Refunding Warrants and Certificates of Indebtedness {#sec-11-9-5 omnilex-key=us-al-statutes--title-11--11-9-5}
Each such county may in like manner from time to time issue refunding warrants and refunding certificates of indebtedness, either by sale or by exchange, for the purpose of refunding a like or greater principal amount of warrants and certificates of indebtedness then outstanding which were issued under the provisions of this article. The provisions of this article applicable to the original issue of such warrants and certificates of indebtedness so refunded shall likewise be applicable to any refunding warrants and refunding certificates of indebtedness; except, that in the event such refunding warrants or refunding certificates of indebtedness are sold the proceeds from such sale shall be used only to retire the warrants and certificates of indebtedness refunded thereby; and except that said refunding warrants and refunding certificates of indebtedness shall not be charged against the limitation on the amount of warrants and certificates of indebtedness that may be issued under the provisions of this article as set out in section 11-9-2.
*(Acts 1955, No. 263, p. 610, §5.)*
#### **Article 2** Waterworks Systems Warrants
##### **§ 11-9-20** Definitions {#sec-11-9-20 omnilex-key=us-al-statutes--title-11--11-9-20}
Wherever used in this article, unless a different meaning clearly appears in the context, the following terms shall be given the respective interpretations specified in this section:
(1) COUNTY. Each county in the state.
(2) GOVERNING BODY. The county commission of a county.
(3) MUNICIPALITY. A municipal corporation in the state.
(4) STATE. The State of Alabama.
(5) WATERWORKS SYSTEM. Facilities for the gathering, collecting, impounding, treatment, transmission and distribution or any of them of water for domestic use or for industrial use or both, together with all appurtenances to any such facilities and all property used or useful in connection with such facilities, including franchises.
*(Acts 1973, No. 1128, p. 1901, §2.)*
##### **§ 11-9-21** Legislative Intent; Construction of Article {#sec-11-9-21 omnilex-key=us-al-statutes--title-11--11-9-21}
It is the intention of the Legislature by the passage of this article to authorize each county in the state to finance the acquisition by such county through purchase, construction or otherwise of one or more waterworks systems by the sale and issuance of interest-bearing warrants of such county for payment of costs of acquiring such system or systems. This article shall be liberally construed in conformity with the said intention.
*(Acts 1973, No. 1128, p. 1901, §1.)*
##### **§ 11-9-22** Authority for Issuance; Form, Terms, Denominations, Etc.; Sale and Disposition of Proceeds; Pledge for Payment of Principal and Interest Generally {#sec-11-9-22 omnilex-key=us-al-statutes--title-11--11-9-22}
Each county shall have the power from time to time to sell and issue interest-bearing warrants of such county for the purpose of paying costs to that county of acquiring and providing one or more waterworks systems for the purpose of rendering water service in any part of the county; provided, that the county shall not render water service within any municipality except pursuant to franchise granted to the county by such municipality. Any warrants issued under the provisions of this article may be in such denomination or denominations, may have such maturity or maturities not exceeding 30 years from their date, may bear interest from their date at such rate or rates payable at such times, may be payable at such place or places within or without the state, may be sold at such time or times and in such manner, whether publicly or privately, may be executed in such manner and may contain such terms not in conflict with the provisions of this article, all as the governing body of such county may provide in the proceedings wherein the warrants are authorized to be issued. All such warrants shall evidence general obligation indebtedness of the county by which they are issued and the full faith and credit of the county shall be irrevocably pledged for the payment of the principal thereof and interest thereon. The proceeds derived from the sale of any such warrants shall be used solely for the purpose for which they are authorized to be issued, including the payment of any expenses incurred in connection with the issuance thereof.
*(Acts 1973, No. 1128, p. 1901, §3.)*
##### **§ 11-9-23** Special Pledges for Payment of Principal and Interest {#sec-11-9-23 omnilex-key=us-al-statutes--title-11--11-9-23}
The county commission of the county issuing any such warrants may, in its discretion, assign and specially pledge for the payment of the principal of and interest on such warrants so much as may be necessary for said payment of any one or more of the following (or any part thereof):
(1) The proceeds from the general annual ad valorem tax of one half of one percent which the county is authorized to levy without reference to the purpose thereof under the provisions of Section 215 of the Constitution of Alabama of 1901;
(2) The proceeds from any other tax (including any ad valorem tax and any privilege, license or excise tax) that at the time of the issuance of the said warrants may lawfully be used by the county for payment of such principal and interest; and,
(3) The revenues derived by the county from any waterworks system of the county.
To the extent necessary and sufficient for making the payments in respect of which such pledge is made, any tax or revenues pledged pursuant to the provisions of this section shall constitute a trust fund or funds which shall be impressed with a lien in favor of the holders of the warrants to the payment of which such sums are pledged. In the event that more than one pledge should be made with respect to any tax or revenues the pledge of which is herein authorized in this section, then such pledges shall take precedence in the order in which they are made unless the proceedings making such pledge shall expressly provide that such pledge shall be on a parity with or subordinate to a subsequent pledge thereof.
All warrants for which the pledge authorized in this section may be made shall constitute preferred claims against that portion of the said tax or taxes or revenues so pledged (subject to any prior lawful pledges thereof in existence at the time of the issuance of the warrants, whether made under the provisions of this or any other statute) and shall have preference over claims incurred by the county for operation and maintenance of any waterworks system of the county and any other claims for any other purpose whatsoever.
*(Acts 1973, No. 1128, p. 1901, §4.)*
##### **§ 11-9-24** Issuance of Refunding Warrants {#sec-11-9-24 omnilex-key=us-al-statutes--title-11--11-9-24}
Each such county may in like manner from time to time issue refunding warrants, either by sale or by exchange, for the purpose of refunding a like or greater principal amount of warrants then outstanding which were issued under the provisions of this article and the interest thereon and paying any premium necessary to be paid to retire the outstanding warrants refunded thereby. The provisions of this article applicable to the warrants so refunded shall likewise be applicable to such refunding warrants.
*(Acts 1973, No. 1128, p. 1901, §5.)*
##### **§ 11-9-25** Investment of Trust Funds in Warrants {#sec-11-9-25 omnilex-key=us-al-statutes--title-11--11-9-25}
Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers, invest trust funds in warrants issued under the provisions of this article.
*(Acts 1973, No. 1128, p. 1901, §6.)*
##### **§ 11-9-26** Issuance of Warrants Deemed to Constitute Audit and Allowance of Claim {#sec-11-9-26 omnilex-key=us-al-statutes--title-11--11-9-26}
The issuance of warrants and any interest coupons applicable thereto pursuant to the provisions of this article and in accordance with the authorization of the county commission of the county issuing such warrants shall be deemed to constitute an audit and allowance by such county commission of a claim, in the aggregate principal amount of such warrants and interest coupons, against the county and against any tax proceeds and any revenues or either thereof pledged for payment of such warrants pursuant to the provisions of this article. No proof of registration or other audit or allowance of such claim shall be required and such warrants and interest coupons shall, from and after the date of their lawful issuance, be deemed to be allowed claims against the county by which they were issued and against any tax proceeds and revenues or either so pledged therefor.
*(Acts 1973, No. 1128, p. 1901, §7.)*
##### **§ 11-9-27** Exemptions from Usury or Interest Rate Statutes {#sec-11-9-27 omnilex-key=us-al-statutes--title-11--11-9-27}
Any warrants issued by a county under the provisions of this article for the purpose of paying costs of acquiring and providing waterworks systems are hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of chapter 8 of Title 8 of this Code.
*(Acts 1975, No. 1131, §1.)*
##### **§ 11-9-28** Provisions of Article Controlling; Applicability of Provisions of Section 11-8-10 {#sec-11-9-28 omnilex-key=us-al-statutes--title-11--11-9-28}
Insofar as the provisions of this article may be inconsistent with the provisions of any other law, the provisions of this article shall control, it being hereby specifically declared that the provisions of section 11-8-10 shall not be applicable to the warrants issued under the provisions of this article.
*(Acts 1973, No. 1128, p. 1901, §8.)*
### **Chapter 10** Making of Loans in Anticipation of Taxes
##### **§ 11-10-1** Authorized; Issuance of Certificates Evidencing Loans; Pledge of Uncollected Taxes to Secure Repayment {#sec-11-10-1 omnilex-key=us-al-statutes--title-11--11-10-1}
County commissions, for and in behalf of their respective counties, may make temporary loans in anticipation of the collection of taxes for the year in which such loans are made, and may issue certificates covering such loans and may pledge a sufficient amount of uncollected taxes of the current year to secure the repayment of such loan or loans.
*(Acts 1915, No. 53, p. 105; Code 1923, §239; Code 1940, T. 12, §124.)*
##### **§ 11-10-2** Amount of Loans; Interest, Maturity, Renewal, Etc.; Disposition of Proceeds {#sec-11-10-2 omnilex-key=us-al-statutes--title-11--11-10-2}
Such loans shall not be in an amount greater than $400,000.00 per year and may bear interest not to exceed 12 percent per annum.
All such loans shall mature not later than February 1 of the year following that in which the loan is made and may be renewed only upon payment of all interest then due, together with not less than 10 percent of the principal then outstanding.
No proceeds from any loans made under the provisions of this chapter shall be used for any purpose other than that for which the general funds of the county may now be used.
*(Acts 1915, No. 53, p. 105; Code 1923, §240; Acts 1932, Ex. Sess., No. 168, p. 196; Acts 1935, No. 379, p. 803; Code 1940, T. 12, §125; Acts 1959, No. 512, p. 1263; Acts 1975, No. 1046, p. 2102, §1; Acts 1980, No. 80-808, p. 1663; Acts 1982, 2nd Ex Sess., No. 82-756, p. 229.)*
##### **§ 11-10-3** Registration and Payment of Certificates {#sec-11-10-3 omnilex-key=us-al-statutes--title-11--11-10-3}
All certificates evidencing loans made under the authority of this chapter shall be registered by the county treasurer in the order of their issue and the said treasurer shall retain out of the taxes collected for the year and paid over to him a sufficient amount to pay said certificates. Said certificates shall be in the order of their registration and they shall be entitled to priority of payment out of the proceeds of the taxes pledged to pay the same.
*(Acts 1915, No. 53, p. 105; Code 1923, §241; Code 1940, T. 12, §126.)*
##### **§ 11-10-4** Cancellation of Certificates {#sec-11-10-4 omnilex-key=us-al-statutes--title-11--11-10-4}
All such certificates when paid by the treasurer shall be cancelled and such cancellation and payment shall be noted on the register and it shall be unlawful thereafter to reissue such certificates.
*(Acts 1915, No. 53, p. 105; Code 1923, §242; Code 1940, T. 12, §127.)*
##### **§ 11-10-5** Certificates Exempt from Taxation {#sec-11-10-5 omnilex-key=us-al-statutes--title-11--11-10-5}
All certificates issued under the authority of this chapter shall be exempt from taxation.
*(Acts 1915, No. 53, p. 105; Code 1923, §243; Code 1940, T. 12, §128.)*
##### **§ 11-10-6** State and Local Fiscal Assistance Act of 1972 {#sec-11-10-6 omnilex-key=us-al-statutes--title-11--11-10-6}
(a) The governing bodies of the counties in this state are hereby authorized, for and on behalf of their respective counties, to make temporary loans in anticipation of the receipt of payments from the United States under the State and Local Fiscal Assistance Act of 1972 (31 U.S.C. §1221 et seq.) and to issue certificates evidencing such loans and to pledge a sufficient amount of said anticipated receipts to secure the repayment of such loan or loans.
(b) Such loans shall not be for a sum greater than the amount of such anticipated receipts less interest from the time of such loan until the time of the anticipated receipt of such funds.
(c) All certificates issued under the authority of this section and all interest thereon shall be exempt from taxation.
*(Acts 1975, No. 1045, p. 2101, §§1-3; Acts 1982, No. 82-619, p. 117.)*
### **Chapter 11** Issuing of Warrants in Anticipation of Gasoline Taxes
##### **§ 11-11-1** Definitions {#sec-11-11-1 omnilex-key=us-al-statutes--title-11--11-11-1}
Where used in this chapter, unless the context clearly indicates otherwise, the following words and phrases shall have the following respective meanings:
(1) COUNTY. Each county subject to the provisions of this chapter.
(2) COUNTY’S SHARE OF THE HIGHWAY GASOLINE TAX. With respect to each county, that portion of the highway gasoline tax required by law to be distributed to that county.
(3) FISCAL YEAR. The 12-month period commencing on October 1 of one year and ending on September 30 of the next ensuing year.
(4) HIGHWAY GASOLINE TAX.
a. The excise tax levied under Section 40-17-31, exclusive of those portions of the said tax in respect of aviation fuel and marine gasoline, as those terms are used in the said Section 40-17-31, and
b. The excise tax levied by Sections 40-17-140 through 40-17-155, exclusive of that portion of the said tax in respect of diesel fuel.
(5) OUTSTANDING WARRANTS. With respect to each county and as of any particular time:
a. Warrants then unpaid which were theretofore issued by that county under the provisions of this chapter or
b. Warrants then unpaid which were theretofore issued by that county under the provisions of any other law of the state in effect at the time of the issuance thereof and which are payable solely out of all or any part of the county’s share of the highway gasoline tax.
(6) REFUNDING WARRANTS. Warrants that may be issued under the provisions of Section 11-11-6.
(7) STATE. The State of Alabama.
*(Acts 1967, No. 220, p. 585, §2.)*
##### **§ 11-11-2** Counties to Which Chapter Applicable {#sec-11-11-2 omnilex-key=us-al-statutes--title-11--11-11-2}
The provisions of this chapter shall apply only to each county in this state during each fiscal year of the county next succeeding a fiscal year during which the county collected as much as or more than $40,000.00 from the special ad valorem tax at a rate not exceeding one fourth of one percent which is authorized to be levied by the county under the provisions of Section 215 of the Constitution of Alabama of 1901 for the payment of any debt or liability created after the adoption of the said Constitution for the erection of necessary public buildings, bridges or roads.
*(Acts 1967, No. 220, p. 585, §1.)*
##### **§ 11-11-3** Authority for Issuance; Form, Terms, Denominations, Retirement, Etc.; Security for Payment of Principal and Interest on Warrants Generally {#sec-11-11-3 omnilex-key=us-al-statutes--title-11--11-11-3}
The county commission of each such county, in addition to all other powers which it may now have, is hereby empowered from time to time to authorize, sell and issue interest-bearing warrants of the county in anticipation of and payable solely out of that portion of the highway gasoline tax required by law to be distributed to that county. The said warrants may be in such denomination or denominations, may have such maturity or maturities not exceeding 20 years from their date, may bear interest at such rate or rates and payable at such times, may be made payable at such place or places whether within or without this state and may be sold at such time or times and in such manner, whether publicly or privately, all as the county commission of the county shall determine most advisable by resolution duly adopted at any lawful meeting of such county commission; provided, that the maturities of the said warrants shall be so arranged that the principal of and interest on the said warrants payable during any subsequent fiscal year of the county, when added to the principal and interest payable during each such subsequent fiscal year on all outstanding warrants of that county then outstanding, shall not exceed 50 percent of the amount of the highway gasoline tax that was distributed to that county during its fiscal year next preceding the fiscal year in which shall be issued the warrants authorized by this section to be issued; provided further, that if an irrevocable trust fund consisting of (1) cash, (2) direct general obligations of the United States of America, (3) bank certificates of deposit secured by not less than an equal face amount of direct general obligations of the said United States or (4) any combination of the foregoing items referred to in this proviso shall be established for retirement of all or any part of the principal of and interest on any outstanding warrants of that county, then to such extent as the retirement thereof shall be provided for by the said trust fund (including the cash therein and all sums due to be paid into the trust fund under the terms of any such United States obligations or of any such certificates of deposit), the said principal and interest shall for the purposes of this sentence be excluded from any computation of the amount of principal and interest maturing with respect to outstanding warrants. The general faith and credit of the county shall not be pledged to the payment of any warrants issued under this chapter, nor shall they be general obligations of the county, and for payment of the principal thereof and interest thereon the holder or holders thereof shall look solely to the county’s share of the highway gasoline tax.
*(Acts 1967, No. 220, p. 585, §3.)*
##### **§ 11-11-4** Assignment and Pledge of Proceeds of Share of Highway Gasoline Tax for Payment of Principal and Interest {#sec-11-11-4 omnilex-key=us-al-statutes--title-11--11-11-4}
As security for the payment of the principal of and interest on warrants issued under the provisions of this chapter, the issuing county is authorized to assign and pledge for the benefit of the holders of the said warrants so much as may be necessary for such purpose (which may be all) of the proceeds of the county’s share of the highway gasoline tax. All such pledges shall take precedence in the order in which they are made.
*(Acts 1967, No. 220, p. 585, §4.)*
##### **§ 11-11-5** Disposition of Proceeds from Sale of Warrants {#sec-11-11-5 omnilex-key=us-al-statutes--title-11--11-11-5}
The proceeds derived from the sale of warrants issued under the provisions of this chapter, other than refunding warrants, shall be used for the construction, surfacing, resurfacing, grading and draining of roads, streets, bridges and causeways in the county issuing the same and for payment of the expenses incurred by the county in the authorization and issuance of the said warrants.
*(Acts 1967, No. 220, p. 585, §5.)*
##### **§ 11-11-6** Issuance of Refunding Warrants {#sec-11-11-6 omnilex-key=us-al-statutes--title-11--11-11-6}
Any such county may from time to time sell and issue refunding warrants for the purpose of refunding the principal of outstanding warrants of that county, the interest accrued to the date of the refunding on the outstanding warrants to be refunded and any premium necessary to redeem the outstanding warrants to be refunded, whether or not the principal of the outstanding warrants to be refunded shall have matured at the time of the issuance of the refunding warrants and regardless of whether the outstanding warrants to be refunded shall be subject to redemption by the county prior to maturity and regardless also of whether the outstanding warrants to be refunded, if subject to redemption prior to maturity at the option of the county, have been or are to be called for redemption; provided, that nothing contained in this chapter shall be construed to require the holders of any such outstanding warrants to surrender them for redemption prior to their maturity unless they are by their terms subject to redemption prior to maturity at the option of the county and unless they are duly called for redemption pursuant to their terms.
*(Acts 1967, No. 220, p. 585, §6.)*
##### **§ 11-11-7** Warrants to Be Issued Under Chapter Only by Counties Subject Thereto; Issuance of Warrants by Counties Not Subject to Chapter {#sec-11-11-7 omnilex-key=us-al-statutes--title-11--11-11-7}
No county shall, in any fiscal year during which it is within the classification of counties specified in Section 11-11-2, issue any warrants in anticipation of the county’s share of the highway gasoline tax except under the authority of and pursuant to the provisions of this chapter, and this chapter shall control the issuance of all such warrants by any county subject to its provisions, to the exclusion of any other law, whether general, special or local.
The enactment of this chapter shall not be construed, however, to affect or in any manner limit the power of any county, while not within the classification of counties specified in Section 11-11-2 of this title, to issue warrants in anticipation of its share of the highway gasoline tax which such county may have under any other law.
*(Acts 1967, No. 220, p. 585, §7.)*
##### **§ 11-11-8** Exemption from Usury and Interest Statutes {#sec-11-11-8 omnilex-key=us-al-statutes--title-11--11-11-8}
Any warrants issued by a county under the provisions of this chapter in anticipation of and payable solely out of that portion of the highway gasoline tax required by law to be distributed to counties which are subject to the provisions of this chapter are hereby exempted from the laws of the state of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1975, No. 1130, §1.)*
### **Chapter 11A** Warrants Issued in Anticipation of Ad Valorem Taxes
##### **§ 11-11A-1** Authorized; Denominations, Maturity, Interest, Price, Etc.; Anticipation of Longer-Term Warrants {#sec-11-11a-1 omnilex-key=us-al-statutes--title-11--11-11A-1}
Any county in the state of Alabama, in addition to all other powers which it may now have, is hereby authorized and empowered from time to time to authorize, issue and sell, for the purpose of financing the costs of erecting necessary public buildings, bridges or roads in such county, interest-bearing tax-anticipation warrants payable (as to both principal and interest) solely out of the special ad valorem tax authorized by § 215 of the Constitution of Alabama of 1901, as amended, to be levied for the erection of necessary public buildings, bridges or roads, such warrants to be in such denomination or denominations, to have such maturity or maturities [not exceeding 30 years from their date], to bear interest at such rate or rates and payable at such time or times, to be made payable at such place or places (whether within or without the state) and to be sold at such time or times, in such manner (whether publicly or privately) and at such price [not less than 95 percent of their par or face value plus accrued interest] as the county commission of such county shall determine. Warrants may be issued under the provisions of this chapter, in anticipation of the issuance and sale of longer-term warrants to be issued hereunder, to provide for the temporary financing of the costs of erecting necessary public buildings, bridges or roads, in which event so much of the proceeds from the sale of such longer-term warrants as shall be necessary for such purpose shall be used to pay and retire the principal of and the interest accrued on such shorter-term warrants.
*(Acts 1979, No. 79-671, p. 1180, §1.)*
##### **§ 11-11A-2** Assignment and Pledge of Tax Proceeds for Payment of Principal and Interest {#sec-11-11a-2 omnilex-key=us-al-statutes--title-11--11-11A-2}
As security for payment of the principal of and the interest on any warrants issued under the provisions of this chapter, the issuing county is authorized to assign and pledge so much as may be necessary for such purpose of the proceeds of the tax out of which such warrants are required to be payable. All such pledges shall take precedence in the order in which they are made unless in the proceedings authorizing such warrants the right is reserved to issue other bonds, warrants or securities on a parity therewith as respects such pledge.
*(Acts 1979, No. 79-671, p. 1180, §2.)*
##### **§ 11-11A-3** Issuance of Refunding Warrants {#sec-11-11a-3 omnilex-key=us-al-statutes--title-11--11-11A-3}
Any county in the state of Alabama may from time to time authorize, sell and issue refunding warrants for the purpose of refunding any outstanding warrants theretofore issued under the provisions of this chapter (whether or not the principal of the outstanding warrants to be refunded shall have matured at the time of the issuance of the refunding warrants). Refunding warrants may not, however, be issued in a principal amount that will result in the principal proceeds to be derived by the issuing county therefrom exceeding the sum of (a) the outstanding principal of the warrants being refunded, (b) the interest thereon accrued to the date of issuance of such refunding warrants, (c) the interest to accrue on such outstanding warrants to their respective maturities or to the earliest date on which they may, under their terms, be redeemed (whichever is earlier), (d) any premium necessary to redeem or retire the outstanding warrants being refunded, and (e) the expenses estimated to be incurred by the issuing county in connection with the sale and issuance of such refunding warrants. Warrants may also be issued under the provisions of this chapter for the combined purpose of so refunding any such outstanding warrants and financing the costs of erecting necessary public buildings, bridges and roads, in which event those provisions of this section relating to refunding warrants shall apply to that portion of such combined issue being issued for refunding purposes. All the provisions of this chapter relating to warrants issued to finance the costs of erecting necessary public buildings, bridges or roads shall be applicable to warrants issued solely or partly for refunding purposes.
*(Acts 1979, No. 79-671, p. 1180, §3.)*
##### **§ 11-11A-4** Exemption from Usury or Interest Provisions {#sec-11-11a-4 omnilex-key=us-al-statutes--title-11--11-11A-4}
Any warrants issued by a county under the provisions of this chapter are hereby exempted from the laws of the state of Alabama governing usury or prescribing or limiting interest rates, including (without limitation) the provisions of chapter 8 of Title 8, as amended.
*(Acts 1979, No. 79-671, p. 1180, §4.)*
##### **§ 11-11A-5** Provisions of Chapter to Control {#sec-11-11a-5 omnilex-key=us-al-statutes--title-11--11-11A-5}
Insofar as the provisions of this chapter may be inconsistent with the provisions of any other law, the provisions of this chapter shall control, it being hereby specifically declared that (a) the provisions of §11-8-10, as amended, shall not be applicable to any warrants issued under the provisions of this chapter, and (b) that no approval of the qualified voters of a county shall be required in order for such county to authorize, sell or issue warrants under the provisions of this chapter.
*(Acts 1979, No. 79-671, p. 1180, §5.)*
### **Chapter 11B** Securities Issued in Anticipation of Grants
##### **§ 11-11B-1** Definitions {#sec-11-11b-1 omnilex-key=us-al-statutes--title-11--11-11B-1}
As used in this chapter, the following words and terms shall have the following respective meanings:
(1) CONDITIONS OF A GRANT. The terms and conditions upon which a grant is made by a donor.
(2) COUNTY. Any county of the state.
(3) DONOR. The United States of America, or the state, or any county in the state or any municipality or any department, division, board, bureau, institution or agency of any of the foregoing, or any person, firm or corporation, institution, foundation or other agency or any combination of any two or more such donors.
(4) GOVERNING BODY. The county commission, board of directors or other group or body which governs, controls or makes decisions for a grantee.
(5) GRANT. Any gift, grant, appropriation, donation, or advance by any donor, whether absolute or conditional, for any purpose.
(6) GRANTEE. Any county, or any department, board, bureau, commission or agency of any county, whether incorporated or not, acting on behalf of the county, or any public corporation, to which a grant is to be made.
(7) PUBLIC CORPORATION. Any board, authority or other county public corporation incorporated with the approval of, or more than one of the directors of which are elected or appointed by, the governing body of a county. A county board of education shall be considered a public corporation within the meaning of this chapter.
(8) SECURITIES. One or more bonds, notes, warrants or certificates of indebtedness of a county or public corporation.
(9) STATE. The State of Alabama.
*(Acts 1981, No. 81-797, p. 1399, §1.)*
##### **§ 11-11B-2** Power and Authority of Grantees {#sec-11-11b-2 omnilex-key=us-al-statutes--title-11--11-11B-2}
Each grantee shall have the power, and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To apply to any donor for a grant and to pay the expenses involved in making such application;
(2) To accept and receive grants from any donor;
(3) To expend or apply the proceeds of any grant for the purpose or purposes for which the same is made;
(4) To agree to comply with the conditions of the grant;
(5) To pay over or donate or loan to any board, bureau, authority, institution or agency of the grantee, or to any municipality or municipalities of the state, or to any public corporation, or to any county or counties in the state or to the state, or to any board, bureau, authority, institution, or agency of such public corporation, or of such county or counties or of such municipality or municipalities, or of the state or to any person, firm or corporation, any grant proceeds authorized or permitted to be so paid over, donated or loaned by the conditions of the grant.
*(Acts 1981, No. 81-797, p. 1399, §2.)*
##### **§ 11-11B-3** Power and Authority of Counties and Public Corporations {#sec-11-11b-3 omnilex-key=us-al-statutes--title-11--11-11B-3}
Each county and each public corporation shall have the power and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To anticipate the receipt of any grant either by loan or by assignment or both; to issue securities to evidence such loan or assignment; to make such securities the general obligation indebtedness of the issuer or the obligation of the issuer limited or restricted as to source of payment and security to all or a portion of the proceeds of the grant or to any revenue, receipts or income or any special tax or license of the issuer, or any one or more thereof.
(2) To pledge to the holders of any securities issued pursuant to this chapter the full faith and credit of the issuer and in addition to, or instead of such pledge, to pledge and grant a security interest in all or a portion of the proceeds of the grant or any revenue, receipts or income or any special tax or license of the issuer, or any one or more thereof; or to mortgage or grant a security interest in any property of the issuer as security for any such securities, as the governing body of the issuer may determine.
(3) To pledge, assign and grant a security interest in all or any part of the proceeds of any grant to the holders of any securities issued by the county or the public corporation for any lawful purpose under the authority of any law other than this chapter.
*(Acts 1981, No. 81-797, p. 1399, §3.)*
##### **§ 11-11B-4** Securities; Maturity, Total Principal Amount, Denomination and Tenor, Execution, Etc.; Coupons for Interest {#sec-11-11b-4 omnilex-key=us-al-statutes--title-11--11-11B-4}
Securities issued under the authority of this chapter shall mature at such time or times as the governing body of the issuer shall determine, not later than the date on which the last installment of the grant is reasonably expected to be received. The total principal amount of securities which may be issued in respect of a grant shall not exceed the reasonably estimated proceeds of the grant. The determination of the governing body of the issuer of the date on which the last installment of the grant will be received and the amounts of the proceeds of any grant to be received shall be conclusive. Securities issued under the authority of this chapter shall be of such denomination and tenor, shall contain such covenants and restrictions and provisions and shall be payable at such place or places, within or without the state, as the governing body of the issuer shall determine. Such securities shall be executed in the name of the issuer by such officer or member of the governing body of the issuer as such governing body may direct and attested by such other officer or member of the governing body, as such governing body shall divest, with the seal of the issuer impressed thereon, but coupons for interest, if interest is evidenced by coupons, need be signed only by such officer or member of the governing body of the issuer who executed the securities. Execution by facsimile signature and seal in the manner authorized by law for bonds of a county may be authorized by the governing body.
*(Acts 1981, No. 81-797, p. 1399, §4.)*
##### **§ 11-11B-5** Exemption of Securities from Taxation {#sec-11-11b-5 omnilex-key=us-al-statutes--title-11--11-11B-5}
All securities issued by authority of this chapter and the interest thereon shall be exempt from all taxation in the state.
*(Acts 1981, No. 81-797, p. 1399, §5.)*
##### **§ 11-11B-6** Legal Investment Status of Securities {#sec-11-11b-6 omnilex-key=us-al-statutes--title-11--11-11B-6}
Securities issued under the authority of this chapter shall be securities in which the state, the grantee, all counties and political subdivisions of the state, their officers, boards, departments or agencies and all banks, bankers, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies and insurance associations and other persons carrying on an insurance business, all administrators, executors, guardians, trustees and other fiduciaries, and all other persons who now are or may hereafter be authorized to invest in securities issued by a county, may properly and legally invest any funds, including capital belonging to them or within their control.
*(Acts 1981, No. 81-797, p. 1399, §6.)*
##### **§ 11-11B-7** Issuance of Securities Exempt from Supervision and Control {#sec-11-11b-7 omnilex-key=us-al-statutes--title-11--11-11B-7}
No proceeding, notice or approval shall be required for the issuance of any securities under this chapter. Neither a public hearing nor the consent of the state department of finance shall be a prerequisite to the issuance of any securities under this chapter.
The provisions of Chapter 8, Title 11 shall not apply to any securities issued under authority of this chapter or to any county or public corporation issuing such securities.
*(Acts 1981, No. 81-797, p. 1399, §7.)*
##### **§ 11-11B-8** Grant of Additional Authority; Chapter Not to Repeal, Restrict or Modify Any Law {#sec-11-11b-8 omnilex-key=us-al-statutes--title-11--11-11B-8}
This chapter is intended to grant additional authority to grantees, counties and public corporations and shall not be considered to repeal, restrict or modify any law now in effect or hereafter enacted.
*(Acts 1981, No. 81-797, p. 1399, §8.)*
### **Chapter 12** Claims and Demands Against County
##### **§ 11-12-1** Indemnification of Owners for Injuries, Etc., Caused by Dipping of Cattle - Authorized {#sec-11-12-1 omnilex-key=us-al-statutes--title-11--11-12-1}
The county commission may, in its discretion, indemnify from the funds of such county the owners of cattle for injuries, damages, or deaths caused by the dipping of such cattle in compliance with the laws of the state and the rules and regulations of the State Board of Agriculture and Industries; provided, that such injuries, damages, or deaths have been caused by the failure or negligence of the regularly qualified inspector commissioned by the State Board of Agriculture and Industries to see that the arsenical solution used in the dipping vat is not over the standard of strength recommended by the United States Bureau of Animal Industry or the State Board of Agriculture and Industries or by any negligence on the part of any officer or employee of the state or the State Board of Agriculture and Industries and when the negligence of the owner or person in charge of such cattle has not contributed to the injury, damage, or death.
*(Acts 1919, No. 732, p. 1082; Code 1923, §6790; Code 1940, T. 12, §111.)*
##### **§ 11-12-2** Indemnification of Owners for Injuries, Etc., Caused by Dipping of Cattle - Limitations of Liability - Carelessness, Etc., of Owners or Agents {#sec-11-12-2 omnilex-key=us-al-statutes--title-11--11-12-2}
No county shall be liable under the provisions of Section 11-12-1 for any injury, damage, or death which may be caused by the actual handling of such cattle by the owners or agents of such owners in driving such cattle to and from the vat or for injuries, damages, or deaths caused by the carelessness, neglect, or roughness in driving cattle through such vats.
*(Acts 1919, No. 732, p. 1082; Code 1923, §6791; Code 1940, T. 12, §112.)*
##### **§ 11-12-3** Indemnification of Owners for Injuries, Etc., Caused by Dipping of Cattle - Limitations of Liability - Absence of Inspector {#sec-11-12-3 omnilex-key=us-al-statutes--title-11--11-12-3}
No county shall be liable for injuries, damages, or deaths caused during the absence of the regularly qualified inspector commissioned by the State Board of Agriculture and Industries.
*(Acts 1919, No. 732, p. 1082; Code 1923, §6792; Code 1940, T. 12, §113.)*
##### **§ 11-12-4** Auditing, Registration, and Payment of Claims Generally; Requirements as to Bonds and Interest Coupons {#sec-11-12-4 omnilex-key=us-al-statutes--title-11--11-12-4}
The county commission must audit all claims against the county, and every claim or such part thereof as is allowed must be registered in a book kept for that purpose and the chairman of the county commission must give the claimant a warrant on the treasury for the amount so allowed, but bonds and interest coupons evidencing interest on such bonds lawfully issued by the county shall not be required to be registered or to be proved nor shall warrants be required to issue therefor, but, in addition to all other privileges, shall be held to enjoy all the privileges of registered warrants from the date of their lawful issue and shall be held to be allowed claims from the date of their lawful issue.
*(Code 1852, §773; Code 1867, §907; Code 1876, §826; Code 1886, §901; Code 1896, §1416; Code 1907, §146; Acts 1923, No. 483, p. 634; Code 1923, §224; Code 1940, T. 12, §114; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-12-5** Claims to Be Itemized, Registered and Filed {#sec-11-12-5 omnilex-key=us-al-statutes--title-11--11-12-5}
No claim against the county shall be passed upon or allowed by the county commission unless it is itemized by the claimant or some person in his behalf having personal knowledge of the facts and all claims passed upon and allowed according to this section must be entered in the order in which they are allowed in a book kept for that purpose and filed for future reference within two weeks after the meeting at which such allowances were made, and the claim must show whether or not any part thereof has been paid.
This section shall not apply to bonds and interest or interest coupons thereon that have been lawfully issued by the county.
*(Code 1876, §827; Code 1886, §902; Code 1896, §1417; Code 1907, §147; Acts 1923, No. 480, p. 631; Code 1923, §225; Code 1940, T. 12, §115; Acts 1975, No. 566, §1.)*
##### **§ 11-12-6** Verification of Claims by Executors, Trustees, Etc {#sec-11-12-6 omnilex-key=us-al-statutes--title-11--11-12-6}
When a claim is filed by an executor, administrator, guardian, or trustee, it may be verified by the affidavit of such executor, administrator, guardian, or trustee that he believes the claim to be just, due, and unpaid.
*(Code 1876, §828; Code 1886, §903; Code 1896, §1418; Code 1907, §148; Code 1923, §226; Code 1940, T. 12, §116.)*
##### **§ 11-12-7** Withdrawal of Claims {#sec-11-12-7 omnilex-key=us-al-statutes--title-11--11-12-7}
If a claim is rejected or not allowed in full, the claimant may withdraw the same.
*(Code 1852, §774; Code 1867, §908; Code 1876, §831; Code 1886, §904; Code 1896, §1419; Code 1907, §149; Code 1923, §227; Code 1940, T. 12, §117.)*
##### **§ 11-12-8** Limitation Period for Presentation of Claims {#sec-11-12-8 omnilex-key=us-al-statutes--title-11--11-12-8}
All claims against counties must be presented for allowance within 12 months after the time they accrue or become payable or the same are barred, unless it be a claim due to a minor or to a lunatic, who may present such claim within 12 months after the removal of such disability.
*(Code 1852, §775; Code 1867, §909; Code 1876, §832; Code 1886, §905; Code 1896, §1420; Code 1907, §150; Code 1923, §228; Code 1940, T. 12, §118.)*
##### **§ 11-12-9** Claims to Be Registered When County Records Destroyed by Fire {#sec-11-12-9 omnilex-key=us-al-statutes--title-11--11-12-9}
Claims against a county in which the records have been destroyed by fire are barred if not registered in the proper office of the county within 12 months.
*(Code 1876, §833; Code 1886, §906; Code 1896, §1421; Code 1907, §151; Code 1923, §229; Code 1940, T. 12, §119.)*
##### **§ 11-12-10** Review and Determination as to Authority for Expenditure of Public Funds for Payment of Claims Presented by Chairman of Commission, Etc {#sec-11-12-10 omnilex-key=us-al-statutes--title-11--11-12-10}
It shall be the duty of the chairman of the county commission or such other officer as is authorized by law to draw county warrants upon the county treasurer or county depository to inspect and review each claim presented for payment from the public funds of the county, irrespective of whether such claim has previously been audited and allowed by the county commission, and such officer shall examine and determine independently with reference to each of such claims whether or not the expenditure of public money of the county in payment of such claim is authorized by law and whether or not public funds of the county may be expended for the purpose or purposes shown in such claim; provided, that the provisions of this section and sections 11-12-11 and 11-12-12 shall not apply to those claims by law excepted from the requirement of audit and allowance by the governing body of the county.
*(Acts 1953, No. 536, p. 751, §1.)*
##### **§ 11-12-11** Determination as to Legal Liability Upon Claims; Rejection of Claims {#sec-11-12-11 omnilex-key=us-al-statutes--title-11--11-12-11}
In making such determination with reference to the authorized expenditure of public funds of the county in payment of the claims so presented and filed for payment with the county commissioner, such officer shall make such investigation and inquiry, both as to fact and legal sufficiency, as he shall deem reasonably necessary to correctly ascertain the legal liability of the county with reference to each of the claims presented for payment.
In the event it should be determined by such officer, as a result of such investigation and inquiry, that payment of such claim or claims may not lawfully be made from the public funds of the county, he shall refuse to affix his signature to or draw warrant upon the county treasurer or county depository authorizing payment of such claim or claims from the public funds of the county.
*(Acts 1953, No. 536, p. 751, §2.)*
##### **§ 11-12-12** Liability for Approval of Claims Not Legally Chargeable to or Payable from Public Funds {#sec-11-12-12 omnilex-key=us-al-statutes--title-11--11-12-12}
Should such officer draw a warrant upon the county treasurer or county depository in payment of a claim or claims not legally chargeable to or payable from the public funds of the county such officer shall be held jointly liable with the other members of the county commission of the county for such unauthorized or unlawful expenditure of the public funds of the county and shall bear the same responsibilities and suffer the same penalties as do the other members of the county commission of the county with reference to the unauthorized or unlawful expenditure of public funds of the county; provided, that Sections 11-12-10 through 11-12-12 shall in no way affect or repeal the protection to such official or officials as provided for under written opinion of the Attorney General, Section 36-15-19 and/or under written opinion of the county attorney.
*(Acts 1953, No. 536, p. 751, §3.)*
##### **§ 11-12-13** Utilities for Courthouse Offices {#sec-11-12-13 omnilex-key=us-al-statutes--title-11--11-12-13}
It is the duty of the county commission to provide proper utilities to all offices in the courthouse as may otherwise be authorized by law.
*(Code 1886, §907; Code 1896, §1422; Code 1907, §152; Code 1923, §230; Code 1940, T. 12, §120; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-12-14** Books, Stationery, Telephones, Etc., for Probate Judge, Tax Assessor, Sheriff, Etc {#sec-11-12-14 omnilex-key=us-al-statutes--title-11--11-12-14}
The judge of probate, the tax assessor, the tax collector, the sheriff, and the county treasurer or custodian must be allowed reasonable expenses for suitable books, stationery, postage stamps used exclusively for official business, and telephones, to be paid for by the county on the approval of the county commission, and the judge of probate shall also be allowed expense for his seal of office, to be paid for by the county.
*(Code 1852, §684; Code 1867, §811; Code 1876, §717; Code 1886, §805; Code 1896, §3384; Code 1907, §5442; Code 1923, §9604; Acts 1927, No. 595, p. 693; Code 1940, T. 12, §123.)*
##### **§ 11-12-15** Preferred Claims and Order of Their Priority; Payment of Same {#sec-11-12-15 omnilex-key=us-al-statutes--title-11--11-12-15}
(a) The following claims are declared to be preferred claims against the county, and they shall be given priority in the order named:
(1) Costs of heating the county jail, of supplying it with wholesome water for drinking and bathing, of keeping it in a cleanly condition and free from offensive odors and of providing it with necessary water closets and dry earth, beds, bedding, and clothing; fuel; water; light; janitor’s services of the courthouse and jail; premiums for fire insurance on the public buildings of the county; and premiums on surety bonds of public officers where authorized by law to be paid by the county.
(2) Compensation of the members of the county commission; compensation of deputy sheriffs, the probate judge, the sheriff, the tax assessor, the county treasurer, and jailers for services performed by them and authorized to be paid to them by law; claims for the removal of prisoners; and, claims for conveying insane persons to state institutions.
(3) Claims for necessary stationery and office supplies, including typewriters and supplies and telephones and telephone services, for offices of the probate judge, tax assessor, and tax collector; claims for the use of a building or buildings for a courthouse and a jail where the county does not have a suitable building or buildings for a courthouse and jail; and, claims of the Secretary of State for certified copies of field notes.
(4) All claims authorized to be paid from funds appropriated by the county commission of the county to assist in financing a program of agriculture and farm home life in cooperation with the extension service created under an act of the Congress of the United States approved May 8, 1914, and generally known as the Smith-Lever Act for extension work in agriculture and home economics.
(5) Interest on bonds heretofore and hereafter lawfully issued by the county, in the order of their issuance, as evidenced by the interest coupons attached to such bonds or by the bonds themselves.
(b) For the payment of the above recited claims, in the order named, it shall be the duty of the county treasurer or custodian of the county funds to set apart a sufficient fund from the moneys of the county, and he and his official bond shall be held liable for a failure to do so, insofar as the funds of the county make it possible for him to do so.
*(Code 1886, §908; Code 1896, §1423; Code 1907, §153; Acts 1923, No. 483, p. 634; Code 1923, §231; Acts 1931, No. 276, p. 325; Acts 1935, No. 110, p. 162; Acts 1935, No. 463, p. 990; Code 1940, T. 12, §121; Acts 1953, No. 182, p. 235.)*
##### **§ 11-12-16** Payment of Equitable or Moral Claims Against County {#sec-11-12-16 omnilex-key=us-al-statutes--title-11--11-12-16}
The county commission may appropriate from the general or special funds of the county such sums of money as such county commission shall determine from time to time for the following purposes:
(1) To reimburse any person, firm, or corporation who in good faith has performed services, advanced money or property for the use of the county or who has in good faith bought county warrants issued under invalid acts of the legislature for tick eradication or for building public roads.
(2) To refund to any person, firm, or corporation money or compensate him or it for services rendered or money or property advanced and devoted to the use of the county in procuring funds for carrying on road improvement, tick eradication, or any lawful public work where, after the advancement of such money or property or the rendition of such service, it was declared by decision of the supreme court or by the decision of the Attorney General that the county was without authority to pay such claims on account of a defect in any law or any other reason.
*(Acts 1920, No. 109, p. 154; Code 1923, §186; Code 1940, T. 12, §110.)*
##### **§ 11-12-17** Limitation of Liability Regarding the Use of Public Funds Under Certain Conditions {#sec-11-12-17 omnilex-key=us-al-statutes--title-11--11-12-17}
(a) A county commission shall not be liable for or be a party to a suit challenging the expenditure or use of public funds where a local or general law provides that the public funds are to be expended, awarded, or used at the discretion of a single public official.
(b) For suits challenging the expenditure, award, or use of public funds as described in subsection (a), no damages or litigation costs may be recovered from funds within the control of the county commission.
*(Act 2024-162, §1.)*
### **Chapter 13** Codification and Publication of Laws
##### **§ 11-13-1** Codification of County Laws; Furnishing of Copies to County Officials {#sec-11-13-1 omnilex-key=us-al-statutes--title-11--11-13-1}
The county commission may, in its discretion, once in every 10 years cause the laws of the county to be codified, with supplements thereto once in every four years, such codification not to embrace any statute embodied in the Code of Alabama, nor any private act relating to persons or corporations, except town corporations and school districts. Every county officer shall, on his application, be furnished with a copy of such code, the same to be delivered to his successor in office.
*(Code 1896, §1425; Code 1907, §156; Code 1923, §244; Code 1940, T. 12, §169.)*
##### **§ 11-13-2** Publication of Legislative Laws of Local Nature - Authorized {#sec-11-13-2 omnilex-key=us-al-statutes--title-11--11-13-2}
The county commission of any county may have published, at the expense of the county, within 60 days after the adjournment of each session of the Legislature, any or all laws of a local nature, said laws to be published in a newspaper published and at least partly printed in the county, which newspaper shall be permanently established and of general circulation in such county to which such laws relate.
*(Acts 1915, No. 72, p. 119; Code 1923, §245; Code 1940, T. 12, §170.)*
##### **§ 11-13-3** Publication of Legislative Laws of Local Nature - Contracts for Publication {#sec-11-13-3 omnilex-key=us-al-statutes--title-11--11-13-3}
County commissions which desire publication of local acts as provided in this chapter shall procure from the Secretary of State certified copies of any laws affecting their respective counties and procure bids for the publication of said laws, and contract with the lowest responsible bidder for the publication of said law for three insertions, and the county commissions may contract for the publication of said laws on the basis of the lowest price in proportion to the circulation of newspapers bidding.
*(Acts 1915, No. 72, p. 119; Code 1923, §246; Code 1940, T. 12, §171.)*
##### **§ 11-13-4** Publication of Legislative Laws of Local Nature - Cost {#sec-11-13-4 omnilex-key=us-al-statutes--title-11--11-13-4}
The cost of publication to the county shall in no instance exceed the rate now announced by law for legal publications.
*(Acts 1915, No. 72, p. 119; Code 1923, §248; Code 1940, T. 12, §173.)*
##### **§ 11-13-5** Publication of Legislative Laws of Local Nature - Furnishing of Copies to County and Precinct Officers; Recordation of Copies {#sec-11-13-5 omnilex-key=us-al-statutes--title-11--11-13-5}
The newspapers selected to publish said laws shall furnish to all county and precinct officers copies of the paper containing such publications; and the judge of probate shall preserve in his record book copies of such publications, which record book shall become a public record in the office of the probate judge.
*(Acts 1915, No. 72, p. 119; Code 1923, §247; Code 1940, T. 12, §172.)*
##### **§ 11-13-6** Payment of Cost of Advertising Local Bill Introduction in Legislature; Reimbursement to County Commission {#sec-11-13-6 omnilex-key=us-al-statutes--title-11--11-13-6}
(a) The county commission shall pay from the county treasury, at the regular legal rate, the cost of the advertising of notice and substance of all local bills which may be introduced in the Legislature by any member of the Legislature from the county, if the notice is signed by the member, whether the bill is passed by the Legislature or not. If the bill is for the benefit of or in reference to subjects or matters exclusively relating to one or more municipalities in the county, the municipality or municipalities shall reimburse the county for the cost of the advertising. If two or more municipalities are liable to reimburse the county for the cost of advertising the same bill, each municipality shall pay to the county an amount which bears the same ratio to the total cost of advertising as such municipality’s population bears to the total population of all the municipalities affected by the bill.
(b) After August 1, 1998, except in the case of a bill for the benefit of or on subjects or matters exclusively relating to one or more municipalities in the county, if a proposed local law raising revenue for a public or private local entity other than the county commission becomes law, the public or private local entity receiving the proceeds of the revenue raising measure shall reimburse the county commission for the cost of advertising the local law from the first revenues generated by the local law. If the proposed local law would raise revenue for two or more local public or private entities, including the county commission or a municipality, each entity shall pay from the first revenues generated by the law, a pro rata share of the cost of advertising based upon the proposed percentage of generated revenue to each entity under the local law.
*(Acts 1951, No. 286, p. 571; Act 98-642, p. 1413, §1.)*
### **Chapter 14** Acquisition, Erection, Maintenance, Etc., of Buildings, Property, Roads, Etc., Generally
##### **§ 11-14-1** Effect of Deeds, Grants, Etc., to Officers, Etc., for Use of County {#sec-11-14-1 omnilex-key=us-al-statutes--title-11--11-14-1}
All deeds, grants, or conveyances made to any officer or person for the use and benefit of the county vest in such county the title as fully as if made to such county by name.
*(Code 1852, §764; Code 1867, §898; Code 1876, §816; Code 1886, §887; Code 1896, §1401; Code 1907, §129; Code 1923, §208; Code 1940, T. 12, §176.)*
##### **§ 11-14-2** Custody of County Property; Conveyances of County Property Generally {#sec-11-14-2 omnilex-key=us-al-statutes--title-11--11-14-2}
The county commission shall have control of all property belonging to the county and may, by an order to be entered on its minutes, direct the disposal of any real property which can be lawfully disposed, and direct the chairman of the county commission to make titles thereto and a conveyance made by the chairman of the county commission in accordance with such order invests the grantee with the title of the county.
*(Code 1852, §765; Code 1867, §899; Code 1876, §817; Code 1886, §888; Code 1896, §1402; Code 1907, §130; Code 1923, §209; Code 1940, T. 12, §177; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-14-3** Conveyance of Waterworks Plants and Distribution Systems to Municipal Corporations {#sec-11-14-3 omnilex-key=us-al-statutes--title-11--11-14-3}
Any county in the state of Alabama now owning a waterworks plant and distribution system or portion thereof is hereby authorized to transfer or convey such plant and system or portion thereof, without the necessity of authorization at an election of the qualified voters of such county, to any municipal corporation situated in such county. Any such transfer or conveyance may be made with or without pecuniary consideration and on such terms and conditions as the county commission of the county owning such plant and system or portion thereof may determine, but only after such county commission shall have adopted a resolution authorizing such transfer or conveyance. It shall not be necessary to obtain any permission or approval from the Alabama Public Service Commission or other similar regulatory body for such transfer or conveyance.
*(Acts 1957, No. 629, p. 946.)*
##### **§ 11-14-4** Erection and Maintenance of County Buildings Generally {#sec-11-14-4 omnilex-key=us-al-statutes--title-11--11-14-4}
The county buildings are to be erected and kept in order and repair at the expense of the county under the direction of the county commission, which is authorized to make all necessary contracts for that purpose.
*(Code 1852, §766; Code 1867, §900; Code 1876, §818; Code 1886, §889; Code 1896, §1403; Code 1907, §131; Code 1923, §210; Code 1940, T. 12, §178.)*
##### **§ 11-14-5** Payment to Municipalities in Which Courthouses Located of Costs of Improvements Which Benefit Property of County {#sec-11-14-5 omnilex-key=us-al-statutes--title-11--11-14-5}
The county commission is hereby authorized, out of any road funds, to pay to the municipality in which the county courthouse is located, the reasonable cost of public improvements constructed by such municipality which benefit the property of such county; provided, that the consent of such county commission has been obtained before the commencement of the improvement.
*(Acts 1931, No. 503, p. 613; Code 1940, T. 12, §179.)*
##### **§ 11-14-6** Payment to Cities or Towns for Improvements to Sidewalks and Streets Around, Etc., County Buildings - Authorized {#sec-11-14-6 omnilex-key=us-al-statutes--title-11--11-14-6}
The county commission is hereby authorized and empowered to appropriate county funds not otherwise appropriated or set apart by law toward a partial payment of the cost of public improvements made by a city or town to the sidewalks and streets around or abutting the lot or block occupied by any building belonging to the county, whether such improvements have been heretofore made or are hereafter made.
*(Acts 1931, No. 428, p. 520; Code 1940, T. 12, §180.)*
##### **§ 11-14-7** Payment to Cities or Towns for Improvements to Sidewalks and Streets Around, Etc., County Buildings - Appropriations for Payment of Cost of Improvements - Generally {#sec-11-14-7 omnilex-key=us-al-statutes--title-11--11-14-7}
No appropriation made under the authority of Section 11-14-6 for improvements hereafter constructed shall exceed the cost of such improvement; provided, that where the county commission of any county shall elect to pay the cost of such improvement in installments, the appropriation made may include interest on deferred installments at not more than six percent per annum.
*(Acts 1931, No. 428, p. 520; Code 1940, T. 12, §181.)*
##### **§ 11-14-8** Payment to Cities or Towns for Improvements to Sidewalks and Streets Around, Etc., County Buildings - Ratification of and Discharge from Liability for Prior Payments {#sec-11-14-8 omnilex-key=us-al-statutes--title-11--11-14-8}
The county treasurer or other person exercising the functions of county treasurer of every county who has heretofore paid county money to any city or town for public improvements around or abutting any lot or block occupied by buildings belonging to such county is hereby released, relieved, and discharged from any and all liability for any and all sums of money so paid, and all payments heretofore made for such improvements by any county are hereby ratified and confirmed.
*(Acts 1931, No. 428, p. 520; Code 1940, T. 12, §183.)*
##### **§ 11-14-9** Custody of Courthouse; Prevention of Trespasses {#sec-11-14-9 omnilex-key=us-al-statutes--title-11--11-14-9}
The county commission has charge of the courthouse and the sheriff, at the direction of the county commission, must prevent trespasses, and keep out intruders.
*(Code 1852, §767; Code 1867, §901; Code 1876, §819; Code 1886, §890; Code 1896, §1404; Code 1907, §132; Code 1923, §211; Code 1940, T. 12, §184; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-14-10** Duty to Erect Courthouses, Jails, Hospitals, and Other County Buildings {#sec-11-14-10 omnilex-key=us-al-statutes--title-11--11-14-10}
The county commission shall erect courthouses, jails, and hospitals and other necessary county buildings, and such county commission shall have authority to levy a special tax for that purpose. Each county within the state shall be required to maintain a jail within their county.
In counties in which a circuit court has been or is hereafter authorized to be held in more than one place, the county commission may build courthouses in each place of holding court, and, in all counties wherein a circuit court is authorized to be held or may hereafter be authorized to be held in more than one place for six months or more during any year, the county commission shall erect a courthouse at each of such places where such court is held, such courthouses to be adequate and commodious for the business of such court and county at such place. In said counties wherein a circuit court is authorized to be held or may hereafter be authorized to be held in more than one place for six months or more during any year, the county commission may erect and/or maintain a jail upon any property owned by the county located within the county. The Legislature, by local act passed subsequent to February 9, 1982, may provide for the location of such jail. This section shall not affect in anywise any local law heretofore enacted that is not in conflict herewith.
*(Code 1852, §768; Code 1867, §902; Code 1876, §820; Code 1886, §891; Code 1896, §1405; Code 1907, §133; Acts 1915, No. 484, p. 544; Code 1923, §212; Code 1940, T. 12, §185; Acts 1982, No. 82-33, p. 49.)*
##### **§ 11-14-11** Special Tax for Erection, Furnishing, Maintenance, Etc., of Public Buildings, Bridges, or Roads Authorized; Disposition of Excess Proceeds {#sec-11-14-11 omnilex-key=us-al-statutes--title-11--11-14-11}
The county commission may levy and collect such special taxes as it may deem necessary, not to exceed one fourth of one percent per annum, for the purpose of paying any debt or liability against any county incurred for the erection, construction, or maintenance of the necessary bridges or public buildings prior to March 23, 1915, or incurred for the erection of public roads since November 28, 1901, or that may be created for the erection, repairing, furnishing, or maintenance of public buildings, bridges, or roads after March 23, 1915.
The proceeds of special taxes authorized by Section 215 of the Constitution, as amended, and levied for public building, road, or bridge purposes in excess of amounts payable on bonds, warrants, or other securities issued by the county may be spent for general county purposes in such manner as the county commission may determine.
*(Acts 1915, No. 170, p. 210; Code 1923, §213; Acts 1936, Ex. Sess., No. 181, p. 217; Code 1940, T. 12, §186; Acts 1961, Ex. Sess., No. 203, p. 2182, §1.)*
##### **§ 11-14-12** Location of Courts and Offices When Courthouse Damaged, Destroyed, or Undergoing Repair {#sec-11-14-12 omnilex-key=us-al-statutes--title-11--11-14-12}
When the courthouse of any county is damaged or destroyed or is undergoing repair so as to interfere with the sittings of the courts or the occupancy of offices therein, such courts may sit and such offices may be kept at such other place in the city, town, or village where such courts and offices are required by law to be held and kept as may be provided by the county commission, or, in case of an emergency, such place as may be provided by the judge of probate, sheriff, and clerk of the circuit court.
*(Code 1896, §1406; Code 1907, §135; Code 1923, §214; Code 1940, T. 12, §187.)*
##### **§ 11-14-13** Construction and Arrangement of County Jail {#sec-11-14-13 omnilex-key=us-al-statutes--title-11--11-14-13}
The county jail must be of sufficient size and strength to contain and keep securely the prisoners which may be confined therein and must contain at least two apartments, properly ventilated so as to secure the health of those confined therein: One for men and one for women.
*(Code 1852, §769; Code 1867, §903; Code 1876, §821; Code 1886, §892; Code 1896, §1407; Code 1907, §136; Code 1923, §215; Code 1940, T. 12, §188.)*
##### **§ 11-14-14** Levy of Tax and Issuance of Proposals for Erection or Repair of County Jail {#sec-11-14-14 omnilex-key=us-al-statutes--title-11--11-14-14}
It is the duty of the county commission, if there is not a sufficient jail in its county, to levy a county tax for the erection thereof and cause proposals to be issued for building or repairing the same within 12 months thereafter.
*(Code 1852, §770; Code 1867, §904; Code 1876, §822; Code 1886, §893; Code 1896, §1408; Code 1907, §137; Code 1923, §216; Code 1940, T. 12, §189.)*
##### **§ 11-14-15** Failure to Levy Tax for Erection or Repair of County Jail When Necessary {#sec-11-14-15 omnilex-key=us-al-statutes--title-11--11-14-15}
If any county commission fails to levy a tax to erect or repair a county jail when necessary, the persons composing such county commission are severally guilty of a misdemeanor and must, on conviction, be fined not less than $50.00, but any member thereof may exonerate himself from such fine by proving that he was in favor of levying a tax sufficient for the erection or repair of the county jail, but was overruled by his colleagues.
*(Code 1852, §1171; Code 1867, §905; Code 1876, §4178; Code 1886, §3966; Code 1896, §5140; Code 1907, §7483; Code 1923, §5075; Code 1940, T. 12, §190.)*
##### **§ 11-14-16** Special Tax for Courthouse or Jail; Disposition of Surplus {#sec-11-14-16 omnilex-key=us-al-statutes--title-11--11-14-16}
Whenever it shall be deemed necessary by the county commission of any county in this state to pay any debt or liability now existing against any county incurred for the erection, construction, or maintenance of the necessary public buildings or bridges or that may hereafter be created for the erection of necessary public buildings, bridges, or roads, such court shall have the power and authority to levy and collect a special tax upon the taxable property of such county, not to exceed in one year one fourth of one percent for such purposes; and such tax, when collected, shall be applied exclusively for the purposes for which the same was so levied and collected.
*(Code 1876, §823; Code 1886, §894; Code 1896, §1409; Code 1907, §138; Code 1923, §217; Code 1940, T. 12, §191.)*
##### **§ 11-14-17** Levy of Special Taxes {#sec-11-14-17 omnilex-key=us-al-statutes--title-11--11-14-17}
In all cases in which the county commission is directed or empowered to levy a special tax for county purposes, such levy shall be made by the county commission itself upon the assessment last made for state taxes.
*(Code 1876, §824; Code 1886, §895; Code 1896, §1410; Code 1907, §139; Code 1923, §218; Code 1940, T. 12, §192.)*
##### **§ 11-14-18** Exemption of Securities from Usury and Interest Statutes {#sec-11-14-18 omnilex-key=us-al-statutes--title-11--11-14-18}
Any securities issued by any county payable from or secured by a pledge of any part of the tax proceeds of the special tax authorized to be levied under the second proviso of Section 215 of the Constitution of Alabama of 1901, as amended by Amendment 208, and Sections 11-14-10, 11-14-11, and 11-14-16, are hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8 of this Code.
*(Acts 1975, No. 1132, §1.)*
##### **§ 11-14-19** Special Meeting of County Commission to Make Special Appropriations for Jail - Notice and Designation of Meeting Date {#sec-11-14-19 omnilex-key=us-al-statutes--title-11--11-14-19}
If there is a necessity, and delay until the regular meeting of the county commission may be of injury to the health of the prisoners confined in the county jail, it is the duty of the chairman of the county commission to appoint a day for the meeting of the county commission, of which, if practicable, five days’ notice must be given to each commissioner, which notice must be in writing, signed by the chairman, and must be served by the sheriff.
*(Code 1886, §897; Code 1896, §1412; Code 1907, §141; Code 1923, §219; Code 1940, T. 12, §193; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-14-20** Special Meeting of County Commission to Make Special Appropriations for Jail - Appropriation of Funds and Issuance of Warrant to Sheriff {#sec-11-14-20 omnilex-key=us-al-statutes--title-11--11-14-20}
Upon assembling, it is the duty of the county commission to make an appropriation of such an amount as is necessary for the purposes expressed in subdivision (1) of Section 11-12-15 and, for the payment thereof, to order the issuance of a warrant payable to the sheriff, which must be paid by the county treasurer on the presentment thereof, in preference and priority of all other claims.
*(Code 1886, §898; Code 1896, §1413; Code 1907, §142; Code 1923, §220; Code 1940, T. 12, §194.)*
##### **§ 11-14-21** Expenditure of Funds by Sheriff {#sec-11-14-21 omnilex-key=us-al-statutes--title-11--11-14-21}
The appropriation having been made and the sheriff having received payment thereof, it is his duty, so far as such appropriation will enable him, to keep the jail supplied with wholesome water for drinking and bathing, to keep drinking water accessible at all times to each prisoner and to keep it comfortably warm in cold weather, at all times clean and free from offensive odors and provided with necessary water closets or dry earth, beds, bedding, and clothing for the use of prisoners.
*(Code 1886, §899; Code 1896, §1414; Code 1907, §143; Code 1923, §221; Code 1940, T. 12, §195.)*
##### **§ 11-14-22** Examination of Jail {#sec-11-14-22 omnilex-key=us-al-statutes--title-11--11-14-22}
The chairman of the county commission and the probate judge are hereby authorized and empowered, once each week, without informing the sheriff or jailer of the time when such visit will be made, to visit and examine the condition of the jail, to make a memorandum in writing of such examination and to report under oath such examination to the grand jury.
*(Code 1886, §900; Code 1896, §1415; Code 1907, §144; Code 1923, §222; Code 1940, T. 12, §196; Acts 1980, No. 80-808, p. 1663.)*
##### **§ 11-14-23** Acquisition of Lands for Drainage Ditches, Lime and Stone Quarries, Etc {#sec-11-14-23 omnilex-key=us-al-statutes--title-11--11-14-23}
Counties may acquire by purchase or by condemnation land necessary for drainage ditches and borrow pits, lime and stone quarries, clay and clay pits, sand and sand pits, chert and chert pits, gravel and gravel pits, together with any and all other materials of every character that may be necessary or essential or desired in the construction and maintenance of highways and bridges, and may tap and draw material from the same and acquire such road right-of-way as may be necessary for ingress or egress to and from such material. The reasonable market value, if any, of such land and material shall be paid for same.
*(Acts 1923, No. 516, p. 687; Code 1923, §6757; Code 1940, T. 12, §198.)*
##### **§ 11-14-24** Conduct of Condemnation Proceedings {#sec-11-14-24 omnilex-key=us-al-statutes--title-11--11-14-24}
The condemnation proceedings for such land and materials shall be as is now provided by law for condemnation of land for public use.
*(Acts 1923, No. 516, p. 687; Code 1923, §6758; Code 1940, T. 12, §199.)*
### **Chapter 15** Public Building Authorities
##### **§ 11-15-1** Definitions {#sec-11-15-1 omnilex-key=us-al-statutes--title-11--11-15-1}
The following words and phrases, including the plural of any thereof, wherever used in this chapter, shall in the absence of clear implication herein otherwise have the following respective meanings:
(1) THE CORPORATION. A corporation organized pursuant to the provisions of this chapter.
(2) BOARD. The board of directors of the corporation.
(3) THE STATE. The State of Alabama.
(4) THE COUNTY. That county in the state in which the corporation shall be organized.
(5) GOVERNING BODY. The county commission in which the legislative functions of the county are vested by law.
(6) PROJECT. A building or buildings designed for use and occupancy as a county courthouse or jail or for the supplying of offices and related facilities for officers and departments of the county and any agencies for which the county may lawfully furnish office facilities or any one or more thereof, together with any lands deemed by the board to be desirable in connection therewith.
(7) WARRANT. Any warrant authorized to be issued pursuant to the provisions of this chapter.
(8) COUPON. Any interest coupon evidencing an installment of interest payable with respect to a warrant.
(9) MORTGAGE. A mortgage or a mortgage and deed of trust.
*(Acts 1951, No. 682, p. 1172, §1.)*
##### **§ 11-15-2** Legislative Intent; Construction of Chapter {#sec-11-15-2 omnilex-key=us-al-statutes--title-11--11-15-2}
It is the intention of the Legislature by the passage of this chapter to authorize the incorporation in each county in which proceedings shall be taken pursuant to the provisions of this chapter of a public corporation as a political subdivision of the state for the purpose of providing buildings for use by the county in the performance of its governmental and public functions and to invest such corporation with all powers that may be necessary to enable it to accomplish such purpose, including the power to lease its properties and to issue interest-bearing revenue warrants.
This chapter shall be liberally construed in conformity with the said intent.
*(Acts 1951, No. 682, p. 1172, §2.)*
##### **§ 11-15-3** Authority and Procedure for Incorporation {#sec-11-15-3 omnilex-key=us-al-statutes--title-11--11-15-3}
Whenever any number of natural persons, not less than three, shall file with the governing body an application in writing for authority to incorporate a public corporation under the provisions of this chapter, if it shall be made to appear to the governing body that each of the said persons is a duly qualified elector of and property owner in the county and if the governing body shall duly adopt a resolution wherein it shall be declared that it will be wise, expedient and necessary that such a corporation be formed and that the persons filing such application shall be authorized to proceed to form such corporation, then the said persons shall become the incorporators of and shall proceed to incorporate the corporation in the manner provided in this chapter. No corporation shall be formed under this chapter unless the application herein provided for shall be made and unless the resolution provided for in this section shall be adopted.
*(Acts 1951, No. 682, p. 1172, §3.)*
##### **§ 11-15-4** Certificate of Incorporation - Contents; Approval {#sec-11-15-4 omnilex-key=us-al-statutes--title-11--11-15-4}
The certificate of incorporation of the corporation shall state:
(1) The names of the persons forming the corporation together with the residence of each thereof and a statement that each of them is a duly qualified elector of and property owner in the county;
(2) The name of the corporation;
(3) The location of its principal office, which shall be in the county seat of the county;
(4) The number of directors (which shall be three or a multiple of three); and
(5) Any other matters relating to the corporation which the incorporators may choose to insert and which shall not be inconsistent with this chapter or with the laws of the state.
The name designated for the corporation in the certificate of incorporation shall be one indicating the purpose thereof, such as “_______ County Public Building Authority” (the name of the county to be filled in the blank space) or some other name of similar import. The form and contents of the certificate of incorporation must be submitted to the governing body for its approval, which shall be evidenced by a resolution or order duly entered upon the minutes of the governing body. The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgment of deeds, and the certificate of incorporation shall have attached thereto a certified copy of the resolution provided for in this section and a certificate by the Secretary of State of Alabama that the name proposed for the corporation is not identical with that of any other corporation in the state or so nearly similar thereto as to lead to confusion and uncertainty.
*(Acts 1951, No. 682, p. 1172, §4.)*
##### **§ 11-15-5** Certificate of Incorporation - Recordation {#sec-11-15-5 omnilex-key=us-al-statutes--title-11--11-15-5}
The certificate of incorporation with the documents attached shall be filed with the judge of probate of the county who shall forthwith receive and record the same. When so filed the corporation referred to therein shall come into existence and shall constitute a body corporate and politic and a political subdivision of the state under the name set forth in the certificate of incorporation; whereupon the corporation shall be vested with the rights and powers granted by this chapter.
*(Acts 1951, No. 682, p. 1172, §5.)*
##### **§ 11-15-6** Directors and Officers; Records of Proceedings {#sec-11-15-6 omnilex-key=us-al-statutes--title-11--11-15-6}
The corporation shall have a board of directors which shall be composed of the number of directors provided in the certificate of incorporation. All powers of the corporation shall be exercised by the board or pursuant to its authority. The directors shall be residents of the county and shall be elected by the governing body for staggered terms of office as follows: The first term of one third of the directors shall be two years, of another one third shall be for four years and of the remaining one third shall be six years and, thereafter, the term of office of each director shall be six years. If any director resigns or dies or becomes incapable of acting as a director or ceases to reside in the county, the governing body may elect a successor to serve for the unexpired period of his term. Directors shall be eligible for reelection by the governing body to succeed themselves in office. No director shall be an officer of the state, the county or any incorporated municipality. A majority of the members of the board shall constitute a quorum for the transaction of business. The corporation shall have a president, a vice-president, a secretary and a treasurer, but the offices of secretary and treasurer may be held by the same person. All officers shall be elected by the board. The members of the board and the officers shall serve without compensation, except that they may be reimbursed for actual expenses incurred in the performance of their duties. All proceedings of the board shall be reduced to writing by the secretary of the corporation and recorded in a well-bound book. Copies of such proceedings, when certified by the secretary of the corporation under its seal, shall be received in all courts as evidence of the matters and things therein certified.
*(Acts 1951, No. 682, p. 1172, §6.)*
##### **§ 11-15-7** Powers Generally {#sec-11-15-7 omnilex-key=us-al-statutes--title-11--11-15-7}
The corporation shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name until dissolved as provided in this chapter;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To make use of a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by purchase, gift, lease, devise or otherwise, property of every description and to hold title thereto;
(5) To construct, enlarge, equip, improve, maintain and operate one or more projects;
(6) To sell and issue and do all things incidental to the sale and issuance of its interest-bearing revenue warrants and to secure the same by pledge and mortgage as provided in this chapter;
(7) To appoint and employ such agents, architects and attorneys as the business of the corporation may require;
(8) To provide for such insurance as the board may deem advisable;
(9) To invest in obligations which are direct general obligations of the United States of America or which are unconditionally guaranteed as to both principal and interest by the United States of America any funds of the corporation which the board may determine are not presently needed for the corporate purposes of the corporation;
(10) To contract, lease and make lease agreements respecting its properties or any thereof; and
(11) To sell and convey any of its properties which may have become obsolete or worn out or which may no longer be needed or useful in connection with or in the operation of any project; provided, that it shall not have the power to sell or convey any project substantially as a whole except as provided in this chapter.
*(Acts 1951, No. 682, p. 1172, §7.)*
##### **§ 11-15-8** Leasing of Projects to Counties {#sec-11-15-8 omnilex-key=us-al-statutes--title-11--11-15-8}
The corporation and the county are hereby respectively authorized to enter into with each other one or more lease agreements whereunder a project shall be leased by the corporation to the county for a term not longer than the then current fiscal year of the county, but any such lease agreement may contain a grant to the county of successive options of renewing the said lease agreement on the terms specified therein for any subsequent fiscal year or years of the county. The said lease agreement may contain appropriate provisions as to the method by which the county may, at its election, exercise such of the said options of renewal as its county commission may elect on the terms provided therein and such other covenants and provisions as shall not be inconsistent with this chapter and as the corporation and the county may agree. The rental for each fiscal year during which said lease agreement shall be in effect shall be due in advance on the first day of the fiscal year, and the said rental for said fiscal year shall be payable and any such covenant on the part of the county shall be performed solely out of the current revenues of the county for such fiscal year. The state shall not in any manner be liable for the performance of any obligation or agreement contained in said lease agreement. The rental payable and the covenants to be performed by the county under the provisions of said lease agreement shall never create a debt of the county within the meaning of Section 224 of the Constitution of the state.
It is hereby declared that it is an essential governmental function of the county to secure and supply reasonable and adequate building and office facilities for its courts, jails, officers, departments and agencies engaged in the performance of governmental duties and the rentals payable by the county for such purpose are necessary governmental operating expenses of the county.
If there is any default in the payment of any rental required to be paid or in the performance of any covenant required to be performed by the county under the provisions of any such lease agreement while such lease agreement shall be in effect, the corporation and any pledgee of said lease agreement may, by any appropriate civil action instituted within the time permitted by law, enforce and compel payment of such rental and performance of such covenant. Should any office or storage space in the project become vacant after acquisition or construction thereof, then neither the county nor any officer, department or agency of the county shall thereafter enter into any lease or rental agreement for additional office or storage space or renew any existing lease or rental agreement for office or storage space in or about the municipality in which the project is located until after all such vacant space in the project shall have been filled.
*(Acts 1951, No. 682, p. 1172, §8; Acts 1953, No. 181, p. 233, §1.)*
##### **§ 11-15-9** Warrants - Authority for Issuance; Form, Terms, Denominations, Redemption, Etc.; Sale {#sec-11-15-9 omnilex-key=us-al-statutes--title-11--11-15-9}
The corporation is authorized to issue its interest-bearing revenue warrants for the purpose of acquiring, constructing, improving, enlarging, completing and equipping one or more projects. All warrants issued by the corporation shall be limited obligations of the corporation, the principal of and interest on which shall be payable solely out of the revenues derived from the projects with respect to which they are issued. None of the warrants of the corporation shall ever constitute an obligation or debt of the state or of the county or a charge against the credit or taxing powers of the state or the county. Warrants of the corporation may be issued at any time and from time to time, may be in such form and denominations, may be of such tenor, may be payable in such installments and at such time or times not exceeding 30 years from their date, may be payable at such place or places and may bear interest at such rate or rates payable and evidenced in such manner, all as shall not be inconsistent with the provisions of this chapter and as may be provided in the proceedings of the board wherein the warrants shall be authorized to be issued. Those warrants having maturities more than 10 years after their date shall be subject to redemption at the option of the corporation as a whole or in part at the expiration of 10 years from their date and on any interest payment date thereafter at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in the proceedings of the board wherein they are authorized to be issued. Warrants may be sold at either public or private sale in such manner and from time to time as may be determined by the board to be most advantageous. The corporation may pay all expenses, premiums and commissions which the board may deem necessary or advantageous in connection with the authorization, sale and issuance of its warrants. All warrants shall contain a recital that they are issued pursuant to the provisions of this chapter, which recital shall be conclusive that they have been duly authorized pursuant to the provisions of this chapter.
*(Acts 1951, No. 682, p. 1172, §9.)*
##### **§ 11-15-10** Warrants - Notice of Warrant Resolution; Actions to Question Proceedings for Issuance; Invalidate Warrants, Etc {#sec-11-15-10 omnilex-key=us-al-statutes--title-11--11-15-10}
Upon the adoption by the board of any resolution providing for the issuance of warrants, the corporation may, in its discretion, cause to be published once a week for two consecutive weeks in a newspaper published and having general circulation in the county and, if there is no such newspaper published in the county, then in a newspaper having general circulation therein, a notice in substantially the following form (blanks being properly filled in):
“_____, a public corporation in _____ county and a political subdivision of the State of Alabama, on the_____ day of ______, authorized the issuance of $_____ principal amount of revenue warrants of the said corporation for purposes authorized in the act of the Legislature of Alabama under which the said corporation was organized. Any civil action or proceeding questioning the validity of the said warrants, or the pledge and the mortgage to secure the same or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.”
Any civil action or proceeding in any court to set aside or question the proceedings for the issuance of the warrants referred to in said notice or to contest the validity of any such warrants or the validity of the pledge and mortgage made therefor must be commenced within 20 days after the first publication of such notice. After the expiration of the said period, no right of action or defense founded upon the validity of the said proceedings or of the said warrants or the said pledge or mortgage shall be asserted, nor shall the validity of the said proceedings, warrants, pledge or mortgage be open to question in any court on any ground whatsoever except in a civil action commenced within such period.
*(Acts 1951, No. 682, p. 1172, §16.)*
##### **§ 11-15-11** Warrants - Execution and Delivery {#sec-11-15-11 omnilex-key=us-al-statutes--title-11--11-15-11}
All warrants shall be signed by the president or vice-president of the corporation, and the seal of the corporation shall be affixed thereto and attested by its secretary. They shall be drawn on the treasurer or depository of the funds of the corporation. Coupons shall be signed by the president or vice-president of the corporation, but a facsimile of the signature of such president or vice-president may be impressed on any such interest coupons in lieu of his manually signing the same. Delivery of warrants so executed shall be valid notwithstanding any changes in officers or in the seal of the corporation after the signing and sealing of the warrants.
*(Acts 1951, No. 682, p. 1172, §10.)*
##### **§ 11-15-12** Warrants - Security for Payment of Principal and Interest {#sec-11-15-12 omnilex-key=us-al-statutes--title-11--11-15-12}
The principal of and interest on the warrants shall be secured by a pledge of the revenues out of which the warrants shall be made payable, shall be secured by a mortgage covering the project from which the revenues so pledged shall be derived and shall be secured by a pledge of the lease agreement covering such project and of the rental therefrom.
The mortgage may contain any agreements and provisions customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection and application of the rental from any project covered by such mortgage, the terms to be incorporated in the lease agreement respecting such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the rental of such project and the rights and remedies available in the event of default to the holders of the warrants or the trustee under the mortgage, all as the governing body shall deem advisable and as shall not be in conflict with the provisions of this chapter; provided, that in making any such agreements or provisions the corporation shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom.
If there is any default by the corporation in the payment of the principal of or interest on the warrants or in any of the agreements on the part of the corporation which may properly be included in any mortgage securing the warrants, any holder of any of the warrants or any of the coupons or the trustee under any mortgage, if so authorized in such mortgage, may, either by civil action, mandamus or other proceedings enforce payment of such items and compel performance of all duties of the directors and officers of the corporation and shall be entitled as a matter of right and regardless of the sufficiency of any such security to the appointment of a receiver with all the powers of such receiver for the operation and maintenance of the project covered by such mortgage and the collection and application of rents therefrom; provided, that any such mortgage shall not be subject to foreclosure and shall not be construed so as to compel the sale of the project covered thereby or any part thereof in satisfaction of the warrants secured thereby. The mortgage may contain provisions regarding the rights and remedies of any trustee thereunder and the holders of the warrants and the coupons and may contain provisions restricting the individual rights of action of the holders of the warrants and coupons.
*(Acts 1951, No. 682, p. 1172, §11.)*
##### **§ 11-15-13** Warrants - Disposition of Proceeds from Sale {#sec-11-15-13 omnilex-key=us-al-statutes--title-11--11-15-13}
The proceeds derived from the sale of any warrants (other than refunding warrants) may be used only to pay the cost of acquiring, constructing, improving, enlarging and equipping a project or any part thereof as may be specified in the proceedings in which the warrants are authorized to be issued. Such cost shall be deemed to include the following: the cost of any land forming a part of the project; the cost of the labor, materials and supplies used in any such construction, improvement or enlargement, including architect’s and engineer’s fees and the cost of preparing contract documents and advertising for bids; the purchase price of and the cost of installing equipment for the project; the cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities and parking places in connection therewith; fees and expenses in connection with the authorization, sale and issuance of the warrants issued in connection with such project; and the interest on said warrants for a reasonable period prior to and during the time required for such construction and equipment. If any of the proceeds derived from the sale of said warrants remains undisbursed after completion of such work and payment of all of the said costs and expenses, such balance shall be used for retirement of warrants of the same issue.
*(Acts 1951, No. 682, p. 1172, §12.)*
##### **§ 11-15-14** Refunding Warrants {#sec-11-15-14 omnilex-key=us-al-statutes--title-11--11-15-14}
All or any warrants issued by the corporation may from time to time thereafter be refunded by the issuance of refunding revenue warrants of the corporation, but the amount of any refunding warrants so issued shall not exceed the principal of the warrants refunded thereby together with any unpaid interest thereon and any premiums, commissions and expenses necessary to be paid in connection with such refunding. Any such refunding may be done regardless of whether the warrants to be refunded shall have then matured or shall thereafter mature and may be effected either by sale of the refunding warrants and the application of the proceeds thereof or by exchange of the refunding warrants for the warrants to be refunded thereby; provided, that the holders of any warrants so to be refunded shall not be compelled without their consent to surrender their warrants for payment or exchange prior to the date on which they may be redeemed by the corporation under their provisions. Any refunding warrants of the corporation shall be payable solely from the revenues out of which warrants to be refunded thereby were payable.
*(Acts 1951, No. 682, p. 1172, §13.)*
##### **§ 11-15-15** Investment of County Funds in Warrants {#sec-11-15-15 omnilex-key=us-al-statutes--title-11--11-15-15}
The governing body is authorized in its discretion to invest in warrants of the corporation any idle or surplus money held in the county treasury not otherwise earmarked or pledged.
*(Acts 1951, No. 682, p. 1172, §15.)*
##### **§ 11-15-16** Conveyance of Property to Corporation by County {#sec-11-15-16 omnilex-key=us-al-statutes--title-11--11-15-16}
The county is hereby authorized to convey to the corporation, with or without the payment of monetary consideration therefor, any property that may be owned by the county whether or not such property is necessary for the conduct of the public functions of the county; provided, that such conveyance shall be authorized by a resolution duly adopted by the governing body prior to the conveyance.
*(Acts 1951, No. 682, p. 1172, §17; Acts 1953, No. 181, p. 233, §2.)*
##### **§ 11-15-17** Projects, Income from Leases, Warrants, Etc., Exempt from Taxation {#sec-11-15-17 omnilex-key=us-al-statutes--title-11--11-15-17}
Each project and the income from all leases made with respect thereto, the warrants issued by the corporation and the income therefrom and all lease agreements and mortgages made pursuant to the provisions hereof shall be exempt from all taxation in the state.
*(Acts 1951, No. 682, p. 1172, §14.)*
##### **§ 11-15-18** Dissolution {#sec-11-15-18 omnilex-key=us-al-statutes--title-11--11-15-18}
At any time when the corporation does not have any warrants outstanding, the governing body may adopt a resolution, which shall be duly entered upon the minutes of the governing body, declaring that the corporation shall be dissolved. Upon the filing for record of a certified copy of said resolution in the office of the judge of probate of the county, the corporation shall thereupon stand dissolved, and, in the event it owned any property at the time of its dissolution, the title to all its property shall thereupon vest in the county. In the event the corporation shall at any time have outstanding warrants issued under this chapter payable out of the revenues from different projects, then, as and when the principal of and interest on all warrants payable from the revenues derived from any project shall have been paid in full, title to the project with respect to which the warrants so paid in full have been paid shall thereupon vest in the county, but such vesture of title in the county shall not affect the title of the corporation to any other project the revenues from which are pledged for the payment of any other warrants then outstanding. The formation and dissolution of one corporation under the provisions of this chapter shall not prevent the subsequent formation hereunder of other corporations in the same county.
*(Acts 1951, No. 682, p. 1172, §18.)*
##### **§ 11-15-19** Construction of Chapter {#sec-11-15-19 omnilex-key=us-al-statutes--title-11--11-15-19}
This chapter shall not be construed as a restriction or limitation upon any power, right or remedy which any county or any corporation now in existence or hereafter formed may have in the absence thereof and shall be construed as cumulative and independent thereof.
*(Acts 1951, No. 682, p. 1172, §19.)*
### **Chapter 16** Relocation of County Seats and Erection of New Courthouses
##### **§ 11-16-1** Petition of Qualified Electors for Election to Change County Seat {#sec-11-16-1 omnilex-key=us-al-statutes--title-11--11-16-1}
A majority of the qualified electors of any county, except those counties that have built new courthouses in the past 20 years, may petition the Governor in writing, praying that an election be held in such county for the purpose of determining whether the county seat or site shall be removed from the city, town, or village where it is then located to another designated city, town, or village in such county.
*(Code 1907, §175; Code 1923, §267; Code 1940, T. 12, §230.)*
##### **§ 11-16-2** Commissioners - Qualifications and Appointment; Notice of Appointment {#sec-11-16-2 omnilex-key=us-al-statutes--title-11--11-16-2}
The Governor shall, within 30 days after the filing of the petition with him, appoint three commissioners for such election who shall be qualified electors of such county and shall not hold any state or county office, and, thereupon, the Governor shall cause them to be notified of their appointment.
*(Code 1907, §176; Code 1923, §268; Code 1940, T. 12, §231.)*
##### **§ 11-16-3** Commissioners - Designation; Chairman {#sec-11-16-3 omnilex-key=us-al-statutes--title-11--11-16-3}
The persons so appointed shall be known as the board of commissioners of county seat election, and the Governor shall designate one of them as the chairman of such board.
*(Code 1907, §177; Code 1923, §269; Code 1940, T. 12, §232.)*
##### **§ 11-16-4** Commissioners - Oath {#sec-11-16-4 omnilex-key=us-al-statutes--title-11--11-16-4}
Each of the persons appointed must, within 15 days after his appointment, take and file in the office of the Secretary of State an oath to support the Constitution of the United States and the Constitution of Alabama and to honestly, faithfully, and impartially perform the duties required of him as commissioner of county seat election.
*(Code 1907, §178; Code 1923, §270; Code 1940, T. 12, §233.)*
##### **§ 11-16-5** Commissioners - Commission {#sec-11-16-5 omnilex-key=us-al-statutes--title-11--11-16-5}
A commission shall issue in the usual form, accompanied by a copy of said petition certified to by the Secretary of State, on the payment of the usual fees therefor for the use of the state. The Secretary of State shall file and record said petition in his office.
*(Code 1907, §179; Code 1923, §271; Code 1940, T. 12, §234.)*
##### **§ 11-16-6** Commissioners - Vacancies {#sec-11-16-6 omnilex-key=us-al-statutes--title-11--11-16-6}
If any person appointed commissioner shall fail or refuse to qualify or if any vacancy shall occur in the membership of said board at any time during its existence, the Governor shall fill such vacancy, and the appointee shall qualify as provided in Sections 11-16-2 and 11-16-4.
*(Code 1907, §180; Code 1923, §272; Code 1940, T. 12, §235.)*
##### **§ 11-16-7** Commissioners - Removal {#sec-11-16-7 omnilex-key=us-al-statutes--title-11--11-16-7}
If at any time it shall be made to appear to the Governor that any commissioner has willfully neglected to discharge in good faith any duty resting upon him under the provisions of this chapter or is physically unable or otherwise incompetent to properly perform such duties or is seeking in any manner to prevent or defeat a full and fair expression of the wishes of the qualified electors of the county on the question of such removal of the county seat, the Governor must remove such commissioner and appoint another in his stead, who shall qualify as provided in Sections 11-16-2 and 11-16-4.
*(Code 1907, §181; Code 1923, §273; Code 1940, T. 12, §236.)*
##### **§ 11-16-8** Order Establishing Date for Election - Issuance {#sec-11-16-8 omnilex-key=us-al-statutes--title-11--11-16-8}
Within 30 days after their appointment and qualification, said board of commissioners shall, in writing, order and fix the time for the holding of an election in the several precincts or wards of the county, which date for holding such election shall not be less than 60 days nor more than 120 days from the time of making said order.
*(Code 1907, §182; Code 1923, §274; Code 1940, T. 12, §237.)*
##### **§ 11-16-9** Order Establishing Date for Election - Form {#sec-11-16-9 omnilex-key=us-al-statutes--title-11--11-16-9}
The order may be substantially as follows:
Order for county seat election. The State of Alabama, _____ County. A majority of the qualified electors of this county having petitioned the Governor praying that an election be held in this county on the question of removing the county seat from _____ to _____, in this county; and the Governor having appointed the undersigned as the board of commissioners of county seat election, as provided by law: It is hereby ordered that an election be held at the usual voting places in this county, by the qualified electors thereof, on Tuesday, the _____ day of _____, 2__, between the hours of 9:00 A.M. and 5:00 P.M., on the question of such removal, at which election the elector who desires that the county site shall remain at _____ shall have written or printed on his ballot the words: “Against removal”; and the elector who desires that the county seat shall be removed to _____ shall have written or printed on his ballot the words: “For removal to _____. “Done this, the _____ day of _____, 2____. (Signed _____, the board of commissioners of county seat election.)
*(Code 1907, §184; Code 1923, §276; Code 1940, T. 12, §239.)*
##### **§ 11-16-10** Notice of Election {#sec-11-16-10 omnilex-key=us-al-statutes--title-11--11-16-10}
Said commissioners shall give notice of the date established for holding the election by publishing a copy of said order for four consecutive weeks in a newspaper published in the county or, if there be no newspaper published in the county, by posting a copy of said order at the courthouse and at five other public places in the county, such publication to begin or such notices to be posted within 15 days from the time of making said order.
*(Code 1907, §183; Code 1923, §275; Code 1940, T. 12, §238.)*
##### **§ 11-16-11** Inspectors, Clerks, and Returning Officers - Appointment {#sec-11-16-11 omnilex-key=us-al-statutes--title-11--11-16-11}
Between 10 and 30 days prior to the day appointed for such election the said board of commissioners shall appoint three inspectors, two clerks, and one returning officer to hold and conduct said election for each of the voting places in the county. One of said inspectors and one of said clerks for each voting place shall be appointed as recommended for that purpose by qualified electors favoring such removal and one of said inspectors and one of said clerks for each voting place shall be appointed as recommended for that purpose by qualified electors opposing removal and the third inspector and returning officers for each voting place shall be selected by the board of commissioners. If there shall be a bona fide organization of electors favoring such removal or such organization opposing such removal, one or both, the chairman or head of such organization shall have the superior right to thus recommend persons for appointment as inspector and clerk as provided in this section and the persons recommended by each chairman, respectively, or by either of them, must be appointed. Each side shall have full and fair representation in the conduct of said election.
*(Code 1907, §185; Code 1923, §277; Code 1940, T. 12, §240.)*
##### **§ 11-16-12** Inspectors, Clerks, and Returning Officers - Notice of Appointment {#sec-11-16-12 omnilex-key=us-al-statutes--title-11--11-16-12}
Said board of commissioners shall notify or cause to be notified the persons so appointed as inspectors, clerks, and returning officers for each voting place in the county prior to the day appointed for the election.
*(Code 1907, §186; Code 1923, §278; Code 1940, T. 12, §241.)*
##### **§ 11-16-13** Inspectors, Clerks, and Returning Officers - Oath {#sec-11-16-13 omnilex-key=us-al-statutes--title-11--11-16-13}
Before entering upon their duties, the inspectors, clerks, and returning officers must take an oath to perform their duties pertaining to said election honestly, faithfully, and impartially and according to law, which oath may be administered by any officer authorized by law to administer oaths or by any one of the inspectors.
*(Code 1907, §189; Code 1923, §281; Code 1940, T. 12, §244.)*
##### **§ 11-16-14** Powers and Duties of Returning Officers Generally {#sec-11-16-14 omnilex-key=us-al-statutes--title-11--11-16-14}
The returning officer for each precinct or ward is clothed with all the power and charged with all the duties of a peace officer under the laws of the state while engaged in the discharge of his duties as such returning officer.
*(Code 1907, §198; Code 1923, §290; Code 1940, T. 12, §253.)*
##### **§ 11-16-15** Compensation of Returning Officers, Inspectors, Etc {#sec-11-16-15 omnilex-key=us-al-statutes--title-11--11-16-15}
Each returning officer, manager, or inspector shall receive as compensation for his services the same pay as is paid like officers of general elections, which shall be paid by the county treasurer upon the order of said board of commissioners.
*(Code 1907, §199; Code 1923, §291; Code 1940, T. 12, §254.)*
##### **§ 11-16-16** Attendance at and Opening of Polls by Inspectors, Clerks, and Returning Officers {#sec-11-16-16 omnilex-key=us-al-statutes--title-11--11-16-16}
The inspectors, clerks, and returning officers thus appointed must meet at the place of holding elections in the several precincts or wards for which they are appointed by 9:00 A.M. of the day of the election and, before 10:00 A.M., open the several polling places.
*(Code 1907, §187; Code 1923, §279; Code 1940, T. 12, §242.)*
##### **§ 11-16-17** Appointment of Clerks, Inspectors, Etc., Upon Failure of Others to Attend {#sec-11-16-17 omnilex-key=us-al-statutes--title-11--11-16-17}
On the failure of any inspector or clerk to attend at the hour of 9:00 A.M., the inspector or inspectors present shall complete the number by appointing a qualified elector in the place of each inspector or clerk so absent, every such appointment to be so made that each side shall have representation in the person of at least one inspector and one clerk, and, to that end, the inspector or inspectors making such appointments shall observe the recommendations of a majority of the electors present favoring the side for which such absent inspector or clerk was appointed if they shall make such recommendation.
If no inspector is present at the hour of 9:00 A.M. as aforesaid, then a majority of the qualified electors then present who favor removal shall select one inspector and a majority of the qualified electors then present who oppose removal shall select one inspector, and the two inspectors thus selected shall select a third inspector.
If the returning officer is absent, the inspectors shall appoint a qualified elector to serve as returning officer.
*(Code 1907, §188; Code 1923, §280; Code 1940, T. 12, §243.)*
##### **§ 11-16-18** Opening of Polls to Be Proclaimed Prior to Receipt of Ballots {#sec-11-16-18 omnilex-key=us-al-statutes--title-11--11-16-18}
The inspectors, before they commence receiving ballots, must cause it to be proclaimed aloud at the place of voting that the election is opened.
*(Code 1907, §190; Code 1923, §282; Code 1940, T. 12, §245.)*
##### **§ 11-16-19** Form of Ballot {#sec-11-16-19 omnilex-key=us-al-statutes--title-11--11-16-19}
Each qualified elector shall be entitled to cast one ballot and no more, which ballot must be a paper ticket on which must be written or printed the words, “For removal to _____,” or the words, “Against removal,” as the elector may desire to vote. No official ballot shall be required nor shall any ballot be rejected for the want of form if the inspectors are able to determine therefrom how the elector intended to vote.
*(Code 1907, §191; Code 1923, §283; Code 1940, T. 12, §246.)*
##### **§ 11-16-20** Preparation of Poll Lists; Numbering of Ballots {#sec-11-16-20 omnilex-key=us-al-statutes--title-11--11-16-20}
The name of each elector whose ballot has been received must immediately be taken down by each clerk on separate lists, which shall be known as the poll list, and the number or the order in which each elector votes must at the same time be entered by each clerk against his name, the first elector voting being number one, the second number two and so on to the last elector voting, and one of the inspectors shall correctly number each ballot with the number to correspond with the number opposite the elector’s name on the poll list.
*(Code 1907, §192; Code 1923, §284; Code 1940, T. 12, §247.)*
##### **§ 11-16-21** Provision of Certified Lists of Registered Voters for Inspectors; Qualifications for Voting {#sec-11-16-21 omnilex-key=us-al-statutes--title-11--11-16-21}
The judge of probate must furnish to the board of commissioners provided for in this chapter a duly certified list of the registered voters in each precinct or ward in the county on request of said commissioners or either of them and the payment of one cent for each name contained in such list, to be paid out of the county treasury on order of the commissioners. The commissioners aforesaid shall cause said lists to be placed in the hands of the inspectors of the respective precincts or wards or other voting places prior to the day of said election, and no person shall be entitled to vote in said election whose name does not appear as that of a duly registered elector on said list, unless he shall produce to the inspectors a certificate of registration showing his right to vote therein.
*(Code 1907, §193; Code 1923, §285; Code 1940, T. 12, §248.)*
##### **§ 11-16-22** Preparation and Disposition of Certified Statements of Votes and Poll Lists {#sec-11-16-22 omnilex-key=us-al-statutes--title-11--11-16-22}
Immediately on the closing of the polls, the inspectors must count the ballots and certify the number of votes cast “For removal to _____” and the number of votes cast “Against removal,” and certify on one of the poll lists that such poll list is the poll list of the election precinct or voting place at which they were inspectors and the day and year on which said election was held, and they shall securely seal up such statements of the votes and poll lists, together with the ballots cast in said election, in an envelope or other wrapper or receptacle and label the same so as to show the precinct or ward in which said ballots were cast and deliver the same to the returning officer, and said returning officer must, within 24 hours thereafter, deliver the same to the said board of commissioners at the courthouse of the county.
*(Code 1907, §194; Code 1923, §286; Code 1940, T. 12, §249.)*
##### **§ 11-16-23** Receipt of Returns, Counting of Votes, and Declaration of Election Result {#sec-11-16-23 omnilex-key=us-al-statutes--title-11--11-16-23}
The board of commissioners shall meet at the courthouse of the county on the next day after the day on which such election is held and there remain and receive the returns from the several returning officers, and on the second day after the day on which such election is held, the commissioners shall meet at the courthouse at 12:00 noon, and, in the presence of such persons as may choose to attend, the said board shall make a correct statement from the returns of the several precincts and wards of the county of the whole number of votes cast “For removal to _____” and the whole number of votes cast “Against removal” and shall then and there make in writing a public declaration of the result of said election.
*(Code 1907, §195; Code 1923, §287; Code 1940, T. 12, §250.)*
##### **§ 11-16-24** Proceedings When Returns Destroyed, Withheld, or Delayed {#sec-11-16-24 omnilex-key=us-al-statutes--title-11--11-16-24}
If it shall be made to appear to said board that the returns from any precinct or ward are destroyed or withheld or the delivery thereof purposely delayed or prevented, said board shall take such steps as in their judgment may be necessary in order to secure correct returns thereof and, to that end, they may examine witnesses under oath, which oath may be administered by one of the commissioners, touching the number of votes cast in such precinct “For removal to _____” and the number cast “Against removal,” and such votes shall be included in their statement. Said board shall reject any ballots shown to be illegal and shall count all legal ballots.
*(Code 1907, §196; Code 1923, §288; Code 1940, T. 12, §251.)*
##### **§ 11-16-25** Preparation, Recordation, Filing, and Publication of Certified Copy of Election Result {#sec-11-16-25 omnilex-key=us-al-statutes--title-11--11-16-25}
The board of commissioners upon the conclusion of canvassing said returns shall certify in writing the result of said election, a copy of which shall be filed and recorded in the office of the judge of probate of the county and another copy published by at least one insertion in a newspaper published in the county if there be such newspaper.
*(Code 1907, §197; Code 1923, §289; Code 1940, T. 12, §252.)*
##### **§ 11-16-26** Majority of Commissioners or Inspectors May Act {#sec-11-16-26 omnilex-key=us-al-statutes--title-11--11-16-26}
Any duty required by this chapter to be performed by the said board of commissioners of county seat election may be performed by a majority of them, and a majority of inspectors of election shall govern in the determination of all questions coming before them as such inspectors.
*(Code 1907, §200; Code 1923, §292; Code 1940, T. 12, §255.)*
##### **§ 11-16-27** Declaration of New County Seat {#sec-11-16-27 omnilex-key=us-al-statutes--title-11--11-16-27}
If upon canvass of the returns of said election a majority of all the legal votes cast were in favor of the removal of the county seat, then the city, town, or village thus elected shall thereafter be the county seat of the county.
*(Code 1907, §201; Code 1923, §293; Code 1940, T. 12, §256.)*
##### **§ 11-16-28** Acquisition of Lands for New County Seat; Erection of Courthouse and Jail {#sec-11-16-28 omnilex-key=us-al-statutes--title-11--11-16-28}
The county commission shall then procure by donation or by purchase at the expense of the county suitable lots or parcels of land in such city, town, or village, taking the fee simple title thereto to the county, and shall cause to be erected at the expense of the county a suitable courthouse and a suitable jail on said lots for the county as soon as practicable.
*(Code 1907, §202; Code 1923, §294; Code 1940, T. 12, §257.)*
##### **§ 11-16-29** Removal of County Offices, Records, and Prisoners to New Courthouse and Jail {#sec-11-16-29 omnilex-key=us-al-statutes--title-11--11-16-29}
When said courthouse shall be completed and ready for occupancy, the said county officers shall remove their offices and the records thereof to such offices or rooms in the new courthouse as may be designated for them respectively by the county commission, and the sheriff, upon completion of the jail, shall remove and keep therein any prisoners in his custody.
*(Code 1907, §203; Code 1923, §295; Code 1940, T. 12, §258.)*
##### **§ 11-16-30** Holding of Court of Record {#sec-11-16-30 omnilex-key=us-al-statutes--title-11--11-16-30}
Prior to the removal referred to in Section 11-16-29, all courts of record for the county shall be held at the original courthouse thereof. But after such removal, all courts of record for the county shall be held at the new county seat and, if need be, the county commission must provide suitable buildings in which to hold said courts, pending the erection and completion of the courthouse.
*(Code 1907, §204; Code 1923, §296; Code 1940, T. 12, §259.)*
##### **§ 11-16-31** County Offices and Courts to Remain at Old County Seat until Buildings Provided at New Site {#sec-11-16-31 omnilex-key=us-al-statutes--title-11--11-16-31}
All county officials who are required to hold their offices at the county seats shall have their offices and all courts held for such county shall be held at the old county seat until the suitable buildings and offices can be provided by the county commission at the new county seat, such period not to exceed 12 months from the date of said election.
*(Code 1907, §205; Code 1923, §297; Code 1940, T. 12, §260.)*
##### **§ 11-16-32** Discretion of Governor as to Petitions for Removal of County Seat; Proceedings as to Two or More Petitions {#sec-11-16-32 omnilex-key=us-al-statutes--title-11--11-16-32}
The Governor shall not entertain any petition under Section 11-16-1 which he may have reason to believe is not made in good faith by persons desiring a removal of the county seat. If two or more bona fide petitions with respect to the proposed removal of the county seat of a county to two or more different points in the county shall be pending before the Governor for the appointment of commissioners, the Governor shall favor the proceeding which, in his judgment, is best calculated to result in a permanent location of the county seat.
*(Code 1907, §206; Code 1923, §298; Code 1940, T. 12, §261.)*
##### **§ 11-16-33** Resolution of County Commission for Erection of Courthouse on New Site {#sec-11-16-33 omnilex-key=us-al-statutes--title-11--11-16-33}
Whenever the county commission of any county shall determine that it is advisable to erect a new courthouse for such county on a site in the city or town where the courthouse is located, which site was not within the corporate limits of such city or town when such courthouse was first located therein, and shall pass a resolution to that effect, the courthouse may be erected on such new site if it shall be so decided by a vote of the people of the county at an election to be held as provided in this chapter.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §262.)*
##### **§ 11-16-34** Ordering of Election for Determination as to Erection of Courthouse on New Site {#sec-11-16-34 omnilex-key=us-al-statutes--title-11--11-16-34}
The county commission, after the passage of such resolution, shall order an election to be held in said county to determine whether or not the courthouse shall be erected on such new site.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §263.)*
##### **§ 11-16-35** Notice of Election {#sec-11-16-35 omnilex-key=us-al-statutes--title-11--11-16-35}
Notice of such election shall be given for 30 days by publication in a newspaper published in said county once a week for three successive weeks, which notice shall state the purpose for which the election is to be held, the time and place for holding the same and a description of the site on which the new courthouse is to be erected. Such notice shall be signed by the probate judge or chairman of the county commission of the county in which the election is to be held.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §264.)*
##### **§ 11-16-36** Preparation, Form, and Marking of Ballots {#sec-11-16-36 omnilex-key=us-al-statutes--title-11--11-16-36}
The ballot used at such election must be prepared by the probate judge and shall contain the words “For erection of courthouse on site _____” and “Against erection of courthouse on site _____” (the description of the site to be shown in the blank space), and the voter shall indicate his choice by placing a cross mark before or after the one or the other.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §265.)*
##### **§ 11-16-37** Qualifications and Appointment of Election Managers and Returning Officers; Laws Governing Elections {#sec-11-16-37 omnilex-key=us-al-statutes--title-11--11-16-37}
The probate judge, the circuit clerk, and the sheriff of said county, within 10 days after notice in writing to them of the calling of such election, shall appoint three managers and one returning officer to conduct the election in each beat or polling place in the county, and said managers shall all reside in the beats, wards, or precincts where they are appointed to serve and shall be qualified electors at said elections.
In all other respects the laws relating to the holding of elections in counties to determine whether county bonds may be issued shall govern and apply to elections held under this chapter.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §266.)*
##### **§ 11-16-38** Erection of Courthouse on New Site {#sec-11-16-38 omnilex-key=us-al-statutes--title-11--11-16-38}
If at such election a majority of the qualified electors of the county voting at the election shall vote for the erection of a courthouse on the proposed site, it shall be permissible to erect a courthouse on such proposed site.
*(Acts 1927, No. 399, p. 467; Code 1940, T. 12, §267.)*
##### **§ 11-16-39** Subsequent Elections Not to Be Held Within Four Years of Preceding Election {#sec-11-16-39 omnilex-key=us-al-statutes--title-11--11-16-39}
When one election has been held under this chapter, a subsequent election as to the same county shall not be held within four years thereafter.
*(Code 1907, §207; Code 1923, §299; Code 1940, T. 12, §268.)*
##### **§ 11-16-40** Penalties for Failure to Perform Duties Required by Chapter, Etc {#sec-11-16-40 omnilex-key=us-al-statutes--title-11--11-16-40}
Any officer or person who shall willfully or corruptly fail to perform any duty required of him under any of the provisions of this chapter; or shall fraudulently alter or change the ballot of any elector after it has been cast; or shall make any false or fraudulent count of votes; or shall place in the receptacle for ballots any ballot not actually cast by an elector; or shall take therefrom any ballot cast by an elector, with the intention of unlawfully changing or affecting the result of the election; or shall make any false poll list or any false count of the ballots or any false certificate to a poll list or to the result of the count of the ballots; or shall wrongfully open the returns from any precinct or ward; or shall change, secrete, destroy, or mutilate the returns from any precinct or ward or attempt to do so; or shall prevent or attempt to prevent any such return from being made as required by this chapter; or shall attempt to commit any fraudulent act in connection with the ordering of said election, or the holding of the election, or making the returns or declaring the result thereof; and any person who votes more than once, or deposits more than one ballot as his vote at such election or knowingly attempts to vote when he knows he is not entitled to vote; and, any person who, by bribery or offering to bribe or by any other corrupt means attempts to influence any elector in giving his vote, or to deter him in giving the same, or to disturb or to hinder him in the free exercise of his right of suffrage at said election must, in every such case, on conviction, be imprisoned in the penitentiary for not less than two nor more than five years.
*(Code 1907, §6826; Code 1923, §3958; Code 1940, T. 12, §269.)*
### **Chapter 17** Burial Places, Graveyards and Cemeteries
##### **§ 11-17-1** Petition for Appointment of Commission to Locate or Enlarge, Mark Boundaries, Etc., of Burial Places, Graveyards or Cemeteries {#sec-11-17-1 omnilex-key=us-al-statutes--title-11--11-17-1}
Five or more citizens may petition the judge of probate of any county in which any burial place, graveyard, or cemetery is located, requesting him to appoint a commission to locate, mark the boundaries, plat and survey such burial place or to enlarge the area of any burial place, mark the boundaries thereof, plat and survey the part enlarged.
*(Code 1907, §86; Code 1923, §91; Code 1940, T. 12, §208.)*
##### **§ 11-17-2** Commission - Appointment; Notice of Appointment and Issuance of Commission to Members {#sec-11-17-2 omnilex-key=us-al-statutes--title-11--11-17-2}
Upon the filing of such petition, the judge shall appoint a commission, not to exceed five nor less than three, to locate the boundaries, survey, map, and plat such burial place and shall forthwith notify each member of such commission of his appointment and issue to him a commission directing him to perform the duties required of him under this chapter.
*(Code 1907, §87; Code 1923, §92; Code 1940, T. 12, §209.)*
##### **§ 11-17-3** Commission - Establishment and Marking of Boundaries; Preparation and Filing of Reports {#sec-11-17-3 omnilex-key=us-al-statutes--title-11--11-17-3}
Within 60 days after their appointment, the commission shall meet at the proposed burial place, fix the boundaries and mark with posts, brick, stone, or other durable material the graveyard to be established or enlarged and shall make their report in writing and file the same in the office of the judge of probate.
*(Code 1907, §88; Code 1923, §93; Code 1940, T. 12, §210.)*
##### **§ 11-17-4** Commission - Assessment and Report of Damages from Taking of Property, Etc {#sec-11-17-4 omnilex-key=us-al-statutes--title-11--11-17-4}
The commission shall also assess the damages suffered by any person by reason of the taking of his property or injury thereto in locating and marking boundaries for burying places, which shall be included in their reports to the probate judge and shall state the names of the owners of land so taken or injured.
*(Code 1907, §89; Code 1923, §94; Code 1940, T. 12, §211.)*
##### **§ 11-17-5** Recordation of Proceedings Upon Payment of Damages and Costs {#sec-11-17-5 omnilex-key=us-al-statutes--title-11--11-17-5}
Upon the payment to the probate judge by the petitioners of the amount of damages assessed, together with the costs of the proceedings, the judge shall cause such proceedings to be recorded in the probate office in said county.
*(Code 1907, §90; Code 1923, §95; Code 1940, T. 12, §212.)*
##### **§ 11-17-6** Dedication to Public and Use of Burial Place {#sec-11-17-6 omnilex-key=us-al-statutes--title-11--11-17-6}
After such proceedings are recorded, the burial place so located, bounded or enlarged as shown by such proceedings shall be thereafter dedicated to the public and may be used for a burying place.
*(Code 1907, §91; Code 1923, §96; Code 1940, T. 12, §213.)*
##### **§ 11-17-7** Appeals from Assessment of Damages - Authorized {#sec-11-17-7 omnilex-key=us-al-statutes--title-11--11-17-7}
Any party interested in such proceeding to locate and fix boundaries of burial places, as provided for in this chapter, may appeal to the probate court within 30 days from the filing of such report for the purpose only of fixing the amount of damages to the property taken or injured.
*(Code 1907, §92; Code 1923, §97; Code 1940, T. 12, §214.)*
##### **§ 11-17-8** Appeals from Assessment of Damages - Bond {#sec-11-17-8 omnilex-key=us-al-statutes--title-11--11-17-8}
Any person desiring to appeal as provided for in this chapter shall execute a bond in an amount to be fixed by the probate judge and payable to him for the use of any person injured, conditioned to prosecute such appeal to effect and to pay or perform such judgment as may be entered against him in the probate court, which bond must be approved by the probate judge.
*(Code 1907, §93; Code 1923, §98; Code 1940, T. 12, §215.)*
##### **§ 11-17-9** Appeals from Assessment of Damages - Establishment of Date for Hearing; Summoning and Empaneling of Jurors; Notice of Hearing {#sec-11-17-9 omnilex-key=us-al-statutes--title-11--11-17-9}
On the approval of such appeal bond by the probate judge, he shall set a day for hearing the same, not less than 10 nor more than 30 days from that date, and must summon and empanel jurors as provided for in contests of wills in such court and shall give notice to the adverse parties of such hearing.
*(Code 1907, §94; Code 1923, §99; Code 1940, T. 12, §216.)*
##### **§ 11-17-10** Appeals from Assessment of Damages - Conduct of Hearing Generally; Establishment of Damages by Jury {#sec-11-17-10 omnilex-key=us-al-statutes--title-11--11-17-10}
On the hearing of such trial, the court shall cause an issue to be made between the parties interested to ascertain the amount of damages for the property taken or injured in locating the burial place. Either party may examine witnesses on such trial and may argue the questions to the court or jury by themselves or counsel, which questions must then be submitted to the jury for their determination, which amount of damages shall be fixed by the verdict of the jury.
*(Code 1907, §95; Code 1923, §100; Code 1940, T. 12, §217.)*
##### **§ 11-17-11** Appeals from Assessment of Damages - Entry of Judgment for Damages and Costs {#sec-11-17-11 omnilex-key=us-al-statutes--title-11--11-17-11}
The court shall enter an appropriate order of judgment of the court based upon the verdict of the jury fixing the amount of damages and awarding the costs against the parties as may seem proper to the court.
*(Code 1907, §96; Code 1923, §101; Code 1940, T. 12, §218.)*
##### **§ 11-17-12** Property Not Deemed Dedicated until Damages and Costs Paid {#sec-11-17-12 omnilex-key=us-al-statutes--title-11--11-17-12}
The property set apart for burial places as provided in this chapter shall not be deemed as dedicated as provided in this chapter until all damages and costs awarded shall have been paid into the probate court by the parties interested in the proceedings.
*(Code 1907, §97; Code 1923, §102; Code 1940, T. 12, §219.)*
##### **§ 11-17-13** Preservation, Repair, Etc., of Public or Private Burial Places, Etc., Declared Charitable Purposes; Conveyances, Devises, Etc., of Burial Places for Such Purposes Deemed to Create Charitable Trusts {#sec-11-17-13 omnilex-key=us-al-statutes--title-11--11-17-13}
The preservation, repair, and maintenance of public or private burial places or burial lots and the preservation, repair, maintenance, embellishment, improvement, and replacement of monuments and other things thereon and the ways and easements appurtenant thereto are hereby declared and made proper matters of charity, and every conveyance, transfer, devise, and bequest of any such burial place or burial lot or any money or property in trust for such purposes or any of them shall be held to create a charitable trust.
*(Acts 1931, No. 336, p. 393; Code 1940, T. 12, §220.)*
##### **§ 11-17-14** Burial Societies, Cemeteries, Etc., Empowered to Accept Conveyances, Devises, Etc., and to Act as Trustees {#sec-11-17-14 omnilex-key=us-al-statutes--title-11--11-17-14}
Every burial society or burial association organized under the laws of this state and every corporation having power to act as trustee or engage in the business of owning, controlling, and maintaining private or public cemeteries are hereby empowered to accept any such conveyance, transfer, devise, or bequest and to act as trustee for any such trust.
*(Acts 1931, No. 336, p. 393; Code 1940, T. 12, §221.)*
##### **§ 11-17-15** Trusts Created by Conveyances, Devises, Etc., May Be Perpetual; Terms and Conditions of Same {#sec-11-17-15 omnilex-key=us-al-statutes--title-11--11-17-15}
Any trust created by any such conveyance, transfer, devise, or bequest may be perpetual or for any other length of time and may be made subject to any lawful terms and conditions which shall not be inconsistent with the uses for which such burial place or burial lot, money, or property may be so conveyed, transferred, devised, or bequeathed.
*(Acts 1931, No. 336, p. 393; Code 1940, T. 12, §222.)*
##### **§ 11-17-16** Validation, Etc., of Prior Conveyances, Bequests, Etc {#sec-11-17-16 omnilex-key=us-al-statutes--title-11--11-17-16}
All conveyances, transfers, devises, and bequests for any purpose set out in section 11-17-13 made prior to July 2, 1931, are hereby validated, ratified, and confirmed.
*(Acts 1931, No. 336, p. 393; Code 1940, T. 12, §223.)*
### **Chapter 18** Acquisition, Etc., of Lands for Public Purposes, Etc
#### **Article 1** General Provisions
##### **§ 11-18-1** Authorized {#sec-11-18-1 omnilex-key=us-al-statutes--title-11--11-18-1}
The several counties of the state and the county commissions thereof, jointly, separately, and severally, are authorized with the approval of the governor but not compelled to acquire lands by donation or purchase, one or both, and make improvements thereon for county, state, national, and public purposes.
*(Acts 1939, No. 382, p. 506; Code 1940, T. 12, §224; Acts 1967, No. 747, p. 1601.)*
##### **§ 11-18-2** Uses of Lands {#sec-11-18-2 omnilex-key=us-al-statutes--title-11--11-18-2}
Such lands may be used, among other things, for the following public purposes:
(1) For the recreation, health, and betterment of the people within the county;
(2) For the betterment and improvement of all useful and ornamental vegetable life, including agriculture, arborculture, horticulture, and experimentation with growth and seeds of ornamental shrubs, trees, and flowers;
(3) For the betterment of all animal life, including domestic animals, wildlife, fish and for fish hatcheries;
(4) For the collection and exhibit of minerals and all native products;
(5) For the creation and maintenance of springs, streams, and lakes thereon; and
(6) For other improvements thereon such as fair grounds, athletic fields, museums, art galleries, military grounds, state armories, hospitals, school buildings, and such other improvements and buildings thereon as may be deemed necessary for public purposes.
*(Acts 1939, No. 382, p. 506; Code 1940, T. 12, §225.)*
##### **§ 11-18-3** Board of Trustees; Trust Fund; Contributions by County, State, Etc {#sec-11-18-3 omnilex-key=us-al-statutes--title-11--11-18-3}
The county commission is authorized, with the approval of the Governor, to appoint a board of three trustees for the acquisition and maintenance of said lands and property. Said trustees shall be graduates of some high school or some reputable college, shall be men or women of public spirit, of means, and shall serve without compensation. Their terms and successors shall be fixed and determined by the county commission with the approval of the Governor.
A trust fund may be created by public donations or otherwise for the acquisition and maintenance of such property and lands and it shall be lawful for the county, state, and national government to contribute to the acquisition and maintenance of said lands and property. The county commission is authorized under this section to make such contracts as may be deemed necessary.
*(Acts 1939, No. 382, p. 506; Code 1940, T. 12, §226.)*
#### **Article 2** Acquisition of Lands for Public Parks or Recreational Purposes
##### **§ 11-18-20** Definitions {#sec-11-18-20 omnilex-key=us-al-statutes--title-11--11-18-20}
As used in this article the following terms have the meanings hereby ascribed to them:
(1) ESTABLISHING COUNTY. A county, the county commission of which has provided for the establishment of a park or recreational area or has designated land for the establishment thereon of a park or recreational area.
(2) ADJOINING COUNTY. A county the boundary of which abuts either land on which the establishing county has established a park or recreational area or land which the establishing county has designated for the establishment thereon of a park or recreational area.
*(Acts 1970, Ex. Sess., No. 12, p. 2613, §2.)*
##### **§ 11-18-21** Authorized {#sec-11-18-21 omnilex-key=us-al-statutes--title-11--11-18-21}
The county commission of each county of the state is hereby authorized to acquire by purchase, condemnation, donation, or otherwise land situated within the county for the purpose of establishing and maintaining thereon a public park or recreational area.
*(Acts 1970, Ex. Sess., No. 12, p. 2613, §1.)*
##### **§ 11-18-22** Acquisition of Lands in Adjoining Counties {#sec-11-18-22 omnilex-key=us-al-statutes--title-11--11-18-22}
The power conferred by Section 11-18-21 authorizes the county commission of the establishing county to acquire in any manner prescribed in said Section 11-18-21 land situated in any adjoining county for the purpose of establishing and maintaining thereon a park or recreational area; provided, that such county commission shall first determine that the land in the adjoining county is so situated with respect to the park or recreational area in the establishing county that the use of such land in the adjoining county as a part of the park or recreational area would be to the interest of the citizens of the establishing county.
*(Acts 1970, Ex. Sess., No. 12, p. 2613, §2.)*
##### **§ 11-18-23** Appropriation and Expenditure of Funds for Acquisition, Establishment and Maintenance {#sec-11-18-23 omnilex-key=us-al-statutes--title-11--11-18-23}
The county commission is authorized to appropriate and expend funds of the county in acquiring land as provided for in Sections 11-18-21 and 11-18-22 and in establishing and maintaining a park or recreational area on any land so acquired.
*(Acts 1970, Ex. Sess., No. 12, p. 2613, §3.)*
##### **§ 11-18-24** Cooperation by Counties {#sec-11-18-24 omnilex-key=us-al-statutes--title-11--11-18-24}
Any county may cooperate with another county in the acquisition of land for the establishment of a park or recreational area.
*(Acts 1970, Ex. Sess., No. 12, p. 2613, §4.)*
### **Chapter 19** Comprehensive Land-Use Management in Flood-Prone Areas
##### **§ 11-19-1** Definitions {#sec-11-19-1 omnilex-key=us-al-statutes--title-11--11-19-1}
For the purposes of this chapter, the following words and phrases unless otherwise clearly indicated shall have the following meanings:
(1) COUNTY GOVERNING BODY. The county commission of each county in this state.
(2) FLOOD or FLOODING. The general and temporary condition of partial or complete inundation of normally dry land areas:
a. From the overflow of streams, rivers, and other inland waters, or
b. From tidal surges, abnormally high tidal waters, tidal waves, or rising coastal waters resulting from tsunamis, hurricanes, or other severe storms.
(3) FLOOD-PRONE AREA. Any area with a frequency of inundation of once in 100 years as defined by qualified hydrologists or engineers using methods that are generally accepted by persons engaged in the field of hydrology and engineering.
(4) LAND-USE AND CONTROL MEASURES. Zoning ordinances, subdivision regulations, building codes, health regulations, and other applications and extensions of the normal police power to provide safe standards of occupancy for prudent use of flood-prone areas.
(5) SUBDIVISION. The division of a lot, tract, or parcel of land into two or more lots, plats, sites, or other divisions of land for the purpose, whether immediate or future, for sale or building development. It includes resubdivision and, when appropriate to the context, relates to the process of subdividing or to the land or territory subdivided.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §§1, 13.)*
##### **§ 11-19-2** Purpose of Chapter {#sec-11-19-2 omnilex-key=us-al-statutes--title-11--11-19-2}
Because of the great financial and economic loss, as well as human suffering, caused by floods and flooding in this state and despite plans and programs directly or indirectly affecting the control of flood waters and the reduction of flooding, there also exists a clear and definite public need for a program to provide flood insurance coverage in flood-prone areas of this state.
It is the declared purpose of this chapter to provide in each county of this state a comprehensive land-use management plan by:
(1) Constricting the development of land which is exposed to flood damage in the flood-prone areas;
(2) Guiding the development of proposed construction away from locations which are threatened by flood hazards;
(3) Assisting in reducing damage caused by floods; and
(4) Otherwise improving the long-range management and use of flood-prone areas.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §2.)*
##### **§ 11-19-3** Adoption of Zoning Ordinances and Building Codes for Flood-Prone Areas Outside Municipalities {#sec-11-19-3 omnilex-key=us-al-statutes--title-11--11-19-3}
The county commission in each county of this state is hereby authorized and may adopt zoning ordinances and building codes for flood-prone areas which lie outside the corporate limits of any municipality in the county.
Each such county commission shall have broad authority to:
(1) Establish or cause to be established comprehensive land-use and control measures which shall specifically include the control and development of subdivisions in flood-prone areas;
(2) Establish or cause to be established building codes and health regulations incorporating such minimum standards as shall be necessary to reduce flood damage in flood-prone areas;
(3) Provide such standards of occupancy for the prudent use of flood-prone areas in the county;
(4) Provide for the preparation of maps clearly delineating flood-prone areas and floodways in the county and to keep the same for public inspection;
(5) Make such studies as may be necessary to carry out the purposes of this chapter;
(6) Employ such technical and/or advisory personnel, including the establishment of a county planning commission, as is deemed necessary or expedient; and
(7) Adopt ordinances for the enforcement of all such regulations.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §3.)*
##### **§ 11-19-4** Land-Use and Control Measures {#sec-11-19-4 omnilex-key=us-al-statutes--title-11--11-19-4}
Land-use and control measures shall provide land-use restrictions based on probable exposure to flooding. Measures specified in this section shall:
(1) Prohibit inappropriate new construction or substantial improvements in the flood-prone areas;
(2) Control land uses and elevations of all new construction within the flood-prone area;
(3) For coastal flood-prone areas prescribed land uses and minimum elevations of the first floors of buildings and include consideration of the need for bulkheads, seawalls, and pilings;
(4) Be based on competent evaluation of the flood hazard as revealed by current authoritative flood-prone information;
(5) Be consistent with existing flood-prone management programs affecting adjacent areas and applicable to appropriate state standards; and
(6) Prescribe such additional standards as may be necessary to comply with federal requirements for making flood insurance coverage under the National Flood Insurance Act of 1968 available in this state.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §4.)*
##### **§ 11-19-5** Subdivision Regulations Generally {#sec-11-19-5 omnilex-key=us-al-statutes--title-11--11-19-5}
In addition to land-use restrictions commensurate with the degree of the flood hazards in various parts of the area, there shall be such subdivision regulations as may be necessary:
(1) To prevent the inappropriate development of flood-prone lands;
(2) To encourage the appropriate location and elevation of streets, sewers and water systems and the reservation of adequate and convenient open space for utilities;
(3) To provide for adequate drainage so as to minimize exposure to flood hazards and to prevent the aggravation of flood hazards; and
(4) To require such minimum elevation of all new developments as required.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §5.)*
##### **§ 11-19-6** Building Codes and Health Regulations {#sec-11-19-6 omnilex-key=us-al-statutes--title-11--11-19-6}
Building codes and health regulations shall include all applicable state and local provisions and shall cover all public and private construction and development in flood-prone areas, including, but not limited to, private homes, farm buildings, all buildings (except accessory buildings of under 200 square feet of floor space), streets, avenues, roadways, alleyways, and easements, electricity, water systems, and sewerage disposal systems. Such regulations may require that all proposed improvements and developments in flood-prone areas will:
(1) Properly elevate structures so as to assure protection from reasonably expected flooding;
(2) Design buildings so as to prevent flotation and collapse, giving special attention to the adequacy of foundations and to prevent damage to nonstructural elements;
(3) Provide for the protection of heating systems and other critical mechanical or electrical installations from damage by flooding;
(4) Not create unhealthful areas of pondage or accumulation of debris and obstacles in flooding situations;
(5) Provide adequate controls on the placement of septic tanks to avoid contamination during flooding;
(6) Provide adequate sewerage and water systems which will not be adversely affected by flooding; and
(7) Require and encourage flood proofing to the maximum extent practicable in connection with all proposed major improvements, repairs, and rehabilitations of existing structures.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §6.)*
##### **§ 11-19-7** Submission of Plans and Specifications for Construction and Development in Flood-Prone Areas; Issuance of Permits and Fees Therefor; Disposition of Fees {#sec-11-19-7 omnilex-key=us-al-statutes--title-11--11-19-7}
The county commission desiring to participate in this program shall require every person, firm, corporation, or agency to submit plans and specifications for all proposed construction and development in flood-prone areas lying outside the corporate limits of municipalities of the county prior to commencing operations. If such plans and specifications conform in every respect with the applicable specifications, rules, and regulations adopted by the county commission, said county commission shall issue a permit therefor and shall charge such issuance fee as the governing body shall agree is just and reasonable. All such fees shall be deposited in a special fund in the county treasury and shall be used to enforce the provisions of this chapter, and no permits shall be issued for any construction or development for which plans and specifications are not in substantial compliance with the specifications, rules, and regulations adopted by the county governing body; provided, that nothing in the foregoing shall be construed to require a permit for, or otherwise relate to, the location, erection, construction, reconstruction, alteration, or maintenance of utility poles, towers, lines, conduits, pipes, mains, or of any utility facilities constructed pursuant to authority conferred by statutes, franchises, certificates of convenience and necessity, licenses, or easements.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §7.)*
##### **§ 11-19-8** County Planning Commission - Creation; Composition; Qualifications, Appointment, Terms of Office, Removal and Compensation of Members; Vacancies {#sec-11-19-8 omnilex-key=us-al-statutes--title-11--11-19-8}
The county commission may, by resolution or ordinance, create a county planning commission for the purpose of enforcing this chapter. The county commission shall appoint not less than five nor more than 11 members to the commission. The probate judge, chairman, or similar presiding officer of the county governing body shall be an ex officio member of said commission and shall vote only in case of a tie vote at a meeting wherein the entire membership is present and has voted. Members of the county commission may serve as members of the planning commission notwithstanding the provisions of Section 11-3-2, or any other provisions limiting the offices such governing officials may hold. The term of the ex officio member shall correspond to his official tenure. The terms of each appointive member shall be four years; provided, that, in the initial appointments to the commission, a majority, but not exceeding three fifths of the total membership of the commission, shall be appointed for two years and the remaining members for four years; and provided further, that any members of the county commission appointed to the planning commission for a term exceeding their official tenure as a member of the county commission shall, notwithstanding, continue to be a member of the said commission until the expiration of their appointment as such unless otherwise removed as subsequently provided in this section. Any vacancy in the membership of the planning commission shall be filled for the unexpired term in the same manner as the original appointment. Any appointed member of the commission shall be subject to removal by the county commission for cause after written notice. All members of the county planning commission shall serve as such without compensation.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §8.)*
##### **§ 11-19-9** County Planning Commission - Adoption of Bylaws; Maintenance of Record of Transactions, Etc.; Officers; Meetings; Appointment of Employees and Staff; Acceptance and Expenditure of Funds {#sec-11-19-9 omnilex-key=us-al-statutes--title-11--11-19-9}
The county planning commission shall adopt bylaws for the transaction of business and shall keep a record of its transactions, resolutions, findings, and determinations, which record shall be a public record. The county planning commission shall elect a chairman and a vice-chairman from among the appointed members who shall serve for one year with eligibility for reelection. The county planning commission shall appoint a secretary who may be an officer or an employee of the county commission or a member of the county planning commission. The county planning commission shall meet at least once each month at the call of the chairman and at such other times as the chairman or county planning commission may determine. The county planning commission may appoint such employees and staff as it may deem necessary for its work. In the performance of its duties, the county planning commission may cooperate with, contract with, or accept funds from federal, state or local public or semipublic agencies or private individuals or corporations, may expend such funds, and may carry out such cooperative undertakings and contracts. It may make expenditures for the purchase of required equipment and supplies. The expenditures of the county planning commission, exclusive of gifts, grants, or contract receipts, shall be within the amounts appropriated for the purpose by the county commission.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §9.)*
##### **§ 11-19-10** Powers and Duties of Planning Commission Generally; Special Surveys or Studies; Right of Entry Upon Lands for Preparation of Examinations and Surveys {#sec-11-19-10 omnilex-key=us-al-statutes--title-11--11-19-10}
(a) It shall be the function and duty of the county planning commission to make and maintain comprehensive surveys and studies of existing conditions and probable future developments in the flood-prone area of the county and to prepare comprehensive plans for physical, social, and economic growth as will best promote the public health, safety, morals, convenience, prosperity, or the general welfare as well as efficiency and economy in the development of the flood-prone area of the county. The county planning commission shall have the authority to:
(1) Promote public interest and understanding of the economic and social necessity for long-term, coordinated county planning.
(2) Confer and cooperate with the federal, state, municipal, and other county and regional authorities regarding matters pertaining to or affecting the planning or development of said county, or vice versa, for the purpose of assuring proper coordination of county development with that of other political subdivisions.
(3) Prepare and recommend for adoption to the appropriate county commission or authorities a zoning ordinance and map for the flood-prone area of the county.
(4) Prepare and recommend for adoption to the appropriate county commission or authorities regulations for the subdivision of land within the flood-prone areas of the county jurisdiction and administer the regulations that they may be adopted.
(b) Upon request of the county planning commission, the county commission may, from time to time, for the purpose of special surveys under the direction of the county planning commission, assign to the county planning commission members of the staff or the personnel of any county administrative department, bureau, or agency or may direct any such department, bureau, or agency to make special surveys or studies for the county planning commission. All public officials, departments, and agencies may upon request furnish the county planning commission within a reasonable time with such available information as it may require for its work. The county planning commission, its members, officers, and employees, in the performance of their functions may enter upon any land and make necessary examinations and surveys. In general, the commission shall have such powers as may be appropriate to enable it to fulfill its functions and duties.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §10.)*
##### **§ 11-19-11** Subdivision Regulations - Procedure for Adoption; Certification of Adopted Regulations to Probate Judge {#sec-11-19-11 omnilex-key=us-al-statutes--title-11--11-19-11}
The county commission is hereby authorized to enact an ordinance regulating the platting and recording of any subdivision of land as defined by this chapter lying within the flood-prone area of the county. The county planning commission shall have the authority to prepare and submit to the county commission for its consideration and adoption regulations governing the subdivision of land within its jurisdiction. Before the county commission may adopt subdivision regulations or any amendment thereto under the provisions of this chapter, the said county commission shall hold a public hearing on the proposed regulations. A notice of said public hearing shall be given once a week for two consecutive weeks in a newspaper of general circulation in the county, and a copy of the proposed subdivision regulations shall be made available to any interested person before said public hearing. A copy of the subdivision regulations as adopted shall be certified to the office of the judge of probate.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §11.)*
##### **§ 11-19-12** Subdivision Regulations - Scope and Contents {#sec-11-19-12 omnilex-key=us-al-statutes--title-11--11-19-12}
In exercising the powers granted to it by this chapter, the county planning commission shall prepare and recommend to the county commission for adoption regulations governing the subdivision of land within the flood-prone area of the county. Such regulations may provide for the harmonious development of the flood-prone area of the county; for the coordination of streets within subdivisions with other existing or planned streets; for the size of blocks and lots; for the dedication or reservation of land for streets, school sites, and recreation areas and of easements for utilities and other public services and facilities; and, for a distribution of population and traffic which will tend to create conditions favorable to health, safety, convenience, prosperity, or general welfare.
Such regulations may include requirements as to the extent to which and the manner in which streets shall be graded, surfaced, and improved, and water, sewers, septic tanks, as required by state health regulations, and other utility mains, piping, connections, or other facilities shall be installed as a condition precedent to the approval of the plat. Such regulations may provide that, in lieu of the completion of such work and installations previous to the final approval of a plat, the county commission may accept a bond in any amount and surety and conditions satisfactory to it, providing for and securing to the county the actual construction and installations of such improvements and utilities within a period specified by the county planning commission and expressed in the bond, and the county is hereby granted the power to enforce such bonds by all appropriate legal and equitable remedies.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §13.)*
##### **§ 11-19-13** Approval of Plats of Subdivision Before Recordation - When Required {#sec-11-19-13 omnilex-key=us-al-statutes--title-11--11-19-13}
Whenever subdivision regulations have been adopted by the county commission as provided in Section 11-19-11, then no plat of a subdivision that lies within the flood-prone area of the county shall be filed or recorded in the office of the judge of probate of the county until it shall have been submitted to and approved by the county planning commission and such approval entered in writing on the plat by the chairman and secretary of the county planning commission.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §12.)*
##### **§ 11-19-14** Approval of Plats of Subdivision Before Recordation - Procedure for Approval, Etc {#sec-11-19-14 omnilex-key=us-al-statutes--title-11--11-19-14}
The county planning commission shall act to approve or disapprove a subdivision plat within 30 days after its submission; otherwise, such plat shall be deemed to have been approved and a certificate to that effect shall be issued by the county planning commission on demand; provided, however, that the applicant for the commission’s approval may waive this requirement and consent to an extension of such period. The grounds for disapproval of any plat shall be stated upon the records of the county planning commission. Any plat submitted to the county planning commission shall contain the name and address of a person to whom notice of a hearing shall be sent, and no plat shall be acted on by the commission without a public hearing thereon. Notice shall be sent to the said address by registered or certified mail of the time and place of such hearing not less than five days before the date fixed therefor. Similar notice shall be mailed to the owners of land immediately adjoining the platted land as their names appear upon the plats in the county tax assessor’s office or on the tax records of the county. Approval of a plat shall not be deemed to constitute or effect an acceptance by the public of any street or other open space shown upon the plat.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §14.)*
##### **§ 11-19-15** Transferring, Sale, Etc., of Lands in Subdivision Prior to Approval of Plat {#sec-11-19-15 omnilex-key=us-al-statutes--title-11--11-19-15}
Whoever, being the owner or agent of the owner of any land located within a subdivision within the flood-prone areas transfers or sells or agrees to sell or negotiates to sell any land by reference to, or exhibition of or by other use of a plat of a subdivision before such plat has been approved by the county planning commission and recorded or filed in the office of the judge of probate shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished as provided by law, and the description of such lot or parcel by metes and bounds in the instrument of transfer or conveyance or other document used in the process of selling or transferring shall not exempt the transaction from the penalties or remedies provided in this chapter. The county commission may enjoin such transfer or sale or agreement by action for injunction brought in any court of equity jurisdiction or may recover the same penalty by a civil action in any court of competent jurisdiction.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §15.)*
##### **§ 11-19-16** Grant of Zoning Powers; Scope of Powers {#sec-11-19-16 omnilex-key=us-al-statutes--title-11--11-19-16}
For the purpose of promoting the health, safety, morals, convenience, order, prosperity, and general welfare of the state and counties, any county commission is hereby empowered to divide the portion of the county within the flood-prone area of the county into districts of such number, shape, and area as may be found best suited to carry out the purposes of this chapter and to provide within such districts for standards relating to the location, bulk, height, minimum elevation, number of stories, and size of buildings and other structures, the percentage of lot which may be occupied, the sizes of yards, courts and other open spaces, the density and distribution of population, the uses of buildings and structures and of land for trade, residence, recreation, agriculture, forestry, conservation, water supply, sanitation, floodways, public activities, and other purposes.
Such provisions shall be made in accordance with a comprehensive plan of the flood-prone area and shall be designed to lessen congestion in the streets and highways; to secure safety from fire, flood, panic, and other dangers; to promote health and the general welfare; to provide adequate light and air; to prevent the overcrowding of land; to avoid undue concentration of population; and to facilitate the adequate provision of transportation, water supply, sewerage, schools, parks, and other public requirements.
Such provisions shall be made with reasonable consideration, among other things, of the character of the land and district and its peculiar suitability for particular uses and with a view of promoting desirable living conditions, sustaining the stability of neighborhoods, protecting property against blight and depreciation, securing economy in governmental expenditures, conserving the value of buildings, and encouraging the most appropriate use of land and of buildings and structures throughout the flood-prone area of the county.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §16.)*
##### **§ 11-19-17** Manner in Which Territory Zoned {#sec-11-19-17 omnilex-key=us-al-statutes--title-11--11-19-17}
For the purpose of providing for the division of the territory into districts, consonant with the conditions provided in this section, the county planning commission may make and certify to the county commission a single zoning plan for all the territory of the area which lies within the jurisdiction of the county planning commission or may make and certify separate and successive zoning plans for parts of the flood-prone area for which technical information is available or which for other reasons it deems to have appropriate territorial unity for a zoning plan, and correspondingly any zoning ordinance or resolution enacted by the county commission may cover and include the whole territory lying within its jurisdiction or such territory as the county commission deems to be an appropriate territorial unit for a zoning plan; provided, that no resolution governing more or less than the entire area shall be enacted or put into effect until it is first submitted to the county planning commission for additional review and comment.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §17.)*
##### **§ 11-19-18** Procedure for Preparation, Adoption, Amendment, Etc., of Zoning Ordinance and Map {#sec-11-19-18 omnilex-key=us-al-statutes--title-11--11-19-18}
(a) The planning commission shall have the duty of preparing a zoning plan, including both the written provisions of the ordinance and a map or maps showing the district boundaries. The commission may hold such public hearings as it deems necessary concerning the zoning ordinance. It shall certify the zoning ordinance and map to the county commission.
On receipt of a zoning ordinance and map from the county planning commission, the county commission shall hold a public hearing thereon, after which it may adopt the zoning ordinance and map as recommended, adopt it with modifications, or reject it.
(b) The zoning ordinance, including the map or maps, may from time to time be amended, supplemented, changed, modified, or repealed. No amendment shall become effective unless it first is submitted to the county planning commission for its recommendations; failure of the county planning commission to make recommendations for a period of 30 days after the amendment has been referred to it shall constitute a favorable recommendation. No amendment may be adopted until after a public hearing thereon as prescribed above.
(c) A notice of any public hearing required by this section shall be given once a week for two consecutive weeks in a newspaper published in the county or, if there be no newspaper published in the county, by posting such notice at four public places in the county, said notice to be published the first time or posted not less than 15 days prior to the date fixed for said hearing. Said notice of public hearing shall include:
(1) Date of hearing;
(2) Location of hearing;
(3) Location where proposed amendment may be reviewed by the public; and,
(4) Time of public hearing.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §18.)*
##### **§ 11-19-19** County Board of Adjustment {#sec-11-19-19 omnilex-key=us-al-statutes--title-11--11-19-19}
In availing itself of the powers conferred by this chapter, the county commission shall provide for the appointment of a board of adjustment and may provide that the said board of adjustment shall, in appropriate cases and subject to appropriate conditions and safeguards, make special exceptions to the terms of the zoning ordinance or regulations in harmony with its general purposes and interests and in accordance with general or specific rules adopted pursuant to this chapter.
The board of adjustment shall consist of five members who shall be appointed from among the residents of the county by the county commission to serve for a term of three years; provided, that in establishing the board of adjustment, the county commission may designate the terms of the members first appointed on such basis that the term of one member will expire each year thereafter. Such members shall be removable for cause by the county commission upon written charges and after public hearing. Vacancies shall be filled for the unexpired term of any member by interim appointees designated by the county commission. The board shall select its chairman and adopt rules in accordance with the provisions of any ordinance adopted pursuant to this chapter. Meetings of the board shall be held at the call of the chairman and at such other times as the board may determine. Such chairman, or in his absence the acting chairman, may administer oaths and compel the attendance of witnesses. All meetings of the board shall be open to the public. The board shall keep minutes of its proceedings, showing the vote of each member upon each question or, if absent or failing to vote, indicating such fact, and shall keep records of examinations and other official actions, all of which shall be immediately filed in the office of the board and shall be a public record. Appeals to the board of adjustment may be taken by any person aggrieved or by any county official or administrative officer. Such appeal shall be taken within a reasonable time, as provided by the rules of the board, by filing notice of appeal, specifying the grounds thereof, with the officer from whom the appeal is taken and with the board of adjustment. The officer from whom the appeal is taken shall transmit forthwith to the board all papers constituting the record upon which the action appealed from was taken. An appeal shall stay all proceedings in furtherance of the action appealed from, unless the officer from whom the appeal is taken certifies to the board of adjustment after the notice of appeal shall have been filed with him that by reason of facts stated in the certificate a stay would, in his opinion, cause imminent peril to life or property. Such proceedings shall not be stayed otherwise than by a restraining order which may be granted by the board of adjustment or by a court of record on application or notice to the officer from whom the appeal is taken and on due cause shown.
The board of adjustment shall have the following powers:
(1) To hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative body or official in the enforcement of this chapter or of any ordinance adopted pursuant thereto;
(2) To hear and decide on requests for special exceptions to the terms or provisions of the ordinance upon which such board is required to pass; and
(3) To authorize upon appeal in special cases such variance from the yard, open space, bulk and height requirements of the ordinance as will not be contrary to the public interest, where, owing to special conditions of the building site or land, a literal enforcement of the provisions of the ordinance will result in unnecessary hardship, all in order that the spirit of the ordinance shall be observed and substantial justice done; provided, however, that nothing in this chapter shall authorize the board of adjustment to approve a use not permitted by the zoning ordinance for the district in which the building site is located.
In exercising the above-mentioned powers, such board may in conformity with the provisions of this chapter reverse or affirm, wholly or partly, or modify the order, requirement, decision, or determination appealed from and make any such order, requirement, decision, or determination as ought to be made and, to that end, shall have all the powers of the officer from whom the appeal is taken. The concurring vote of four members of the board shall be necessary to reverse any order, requirement, decision, or determination of any such administrative official or to decide in favor of the applicant on any matter upon which it is required to pass under any such ordinance or to effect any variation in such ordinance. The board of adjustment shall not be required to return the original papers acted upon by it, but it shall be sufficient to return certified or sworn copies thereof or of such portions thereof as may be called on by such writ. The return shall concisely set forth such other facts as may be pertinent and material to show the grounds of the decision appealed from and shall be verified.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §19.)*
##### **§ 11-19-20** Appeals from Final Judgment of Board of Adjustment {#sec-11-19-20 omnilex-key=us-al-statutes--title-11--11-19-20}
Any party aggrieved by any final judgment or decision of a board of adjustment established pursuant to the provisions of this chapter may within 15 days thereafter appeal therefrom to the court having jurisdiction within the county wherein the affected property of the aggrieved party is located by filing with such board a written notice of appeal specifying the judgment or decision from which appeal is taken. In case of such appeal, such board shall cause a transcript of the proceedings in the action to be certified to the court to which the appeal is taken and the action in such court shall be tried de novo.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §21.)*
##### **§ 11-19-21** Institution of Actions to Prevent, Correct, Etc., Unauthorized Construction of Buildings, Subdivision or Use of Lands, Etc {#sec-11-19-21 omnilex-key=us-al-statutes--title-11--11-19-21}
In case any building or structure is erected, constructed, reconstructed, altered, repaired, converted, or maintained, or any subdivision is established or land used in violation of this chapter or of any ordinance or other regulation made under the authority conferred hereby, the county attorney, or other appropriate administrative officer of the county in which the violation occurs may institute any appropriate action or proceedings to prevent such unlawful erection, construction, reconstruction, alteration, repair, conversion, maintenance, or subdivision of the land or use of the land to restrain, correct, or abate such violation, or to prevent the occupancy of any such building, structure, or subdivision of land or to prevent any illegal act, conduct, business, or misuse in or upon any premises regulated under the authority conferred by this chapter.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §20.)*
##### **§ 11-19-22** Penalties for Violations of Provisions of Chapter, Ordinances, Etc {#sec-11-19-22 omnilex-key=us-al-statutes--title-11--11-19-22}
Any person, firm, corporation or agency who, in violation of this chapter, fails to obtain the permit required herein or who violates any provision of the building code or zoning ordinances or other regulation, ordinance, or code shall be guilty of a misdemeanor and, upon conviction, may be fined not more than $500.00, or may be imprisoned in the county jail for not more than one year or may be both fined and imprisoned.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §23.)*
##### **§ 11-19-23** Conflict of Certain Regulations Under Chapter with Other Local Ordinances, Regulations, Etc {#sec-11-19-23 omnilex-key=us-al-statutes--title-11--11-19-23}
Wherever the regulations made under authority of this chapter require a greater width or size of yards or open spaces, or require a lower height of buildings, or require a greater percentage of lot to be left unoccupied. or impose other higher standards than are required in any other local statute or like ordinance or regulation, the provisions of the regulations made under the authority of this chapter shall govern.
Wherever the provisions of any other statute or local ordinance or regulation require a greater width or size of yards or other open space, or require a lower height of buildings, or require a greater percentage of lot to be left unoccupied. or impose other higher standards than are required by regulations made under authority of this chapter, the provisions of such statute or local ordinance or regulation shall govern.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §22.)*
##### **§ 11-19-24** Construction of Chapter Not to Impair Right of Eminent Domain, Etc., Granted to Utilities {#sec-11-19-24 omnilex-key=us-al-statutes--title-11--11-19-24}
This chapter shall not be construed to impair the right of eminent domain granted heretofore or hereafter by the laws of this state to utilities, whether public or private, or their right to design, locate, erect, construct, reconstruct, alter, or maintain utility poles, towers, lines, conduits, pipes, or mains reasonably required in the public service or their right to exercise authority conferred by statute, franchise, certificate of convenience and necessity, license, or easement.
*(Acts 1971, 3rd Ex. Sess., No. 119, p. 4346, §24.)*
### **Chapter 20** Promotion of Industry and Trade
#### **Article 1** Acquisition, Ownership, and Lease of Projects by Counties
##### **§ 11-20-1** Definitions {#sec-11-20-1 omnilex-key=us-al-statutes--title-11--11-20-1}
Wherever used in this article, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, here shall be given the following respective interpretations:
(1) PROJECT. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more thereof:
a. Any industry for the manufacturing, processing or assembling of any agricultural or manufactured products; and
b. Any commercial enterprise in storing, warehousing, distributing or selling products of agriculture, mining or industry, but does not include facilities designed for the sale or distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities; provided, that in all counties having populations of not less than 54,500 nor more than 56,000 according to the most recent federal decennial census, such term shall also include any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the federal government or any department or agency thereof as a facility for any federal governmental operation in any such county.
(2) GOVERNING BODY. The county commission in which the legislative powers of the county are vested.
(3) MORTGAGE. A mortgage or a mortgage and deed of trust.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §1; Acts 1971, No. 1184, p. 2043.)*
##### **§ 11-20-2** Legislative Intent; Construction of Article Generally {#sec-11-20-2 omnilex-key=us-al-statutes--title-11--11-20-2}
(a) It is the intent of the Legislature by the passage of this article to authorize counties to acquire, own and lease projects for the purpose of promoting industry and trade by inducing manufacturing, industrial and commercial enterprises to locate in this state or to expand, enlarge or modernize existing enterprises or both, promoting the use of the agricultural products and natural resources of this state and promoting a sound and proper balance in this state between agriculture, commerce and industry. It is the further intent of the Legislature by the passage of this article to authorize counties having populations of not less than 54,500 nor more than 56,000, according to the most recent federal decennial census, to acquire, own and lease projects for the purpose of inducing the federal government or its departments or agencies to locate or to enlarge existing facilities and operations of any kind within the county, thus contributing to the general prosperity of the area and providing greater opportunities for employment of inhabitants of the surrounding area. It is intended that each project be self-liquidating. It is not intended hereby to authorize any county itself to operate any manufacturing, industrial or commercial enterprise.
(b) This article shall be liberally construed in conformity with the said intent.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §2; Acts 1971, No. 1184, p. 2043.)*
##### **§ 11-20-3** Powers of Counties as to Acquisition, Leasing, Etc., of Projects Generally {#sec-11-20-3 omnilex-key=us-al-statutes--title-11--11-20-3}
(a) In addition to any other powers which it may now have, each county shall have the following powers:
(1) To acquire, whether by construction, purchase, gift or lease, one or more projects which shall be located within this state;
(2) To lease to others (in the case of counties having populations according to the most recent federal decennial census of not less than 54,500 nor more than 56,000, the word others shall include the federal government, any of its departments and agencies) any or all of its projects for such rentals and upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of this article; and
(3) To issue revenue bonds for the purpose of defraying the cost of acquiring, by construction and purchase, or either, any project and to secure the payment of such bonds, all as provided in this article.
(b) No county shall have the power to operate any project as a business or in any manner except as lessor thereof.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §3; Acts 1971, No. 1184, p. 2043.)*
##### **§ 11-20-4** Requirements as to Leasing of Projects {#sec-11-20-4 omnilex-key=us-al-statutes--title-11--11-20-4}
Prior to the issuance of any bonds, the county shall lease the project to a lessee under an agreement providing for payment to the county of such rentals as will be sufficient:
(1) To pay the principal of and interest on the bonds issued to finance the project as such principal and interest respectively mature;
(2) To build up and maintain any reserves deemed by the county commission to be advisable in connection therewith; and
(3) To pay the cost of maintaining the project in good repair and keeping it properly insured unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §6.)*
##### **§ 11-20-5** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Applicability of Usury, Etc., Laws {#sec-11-20-5 omnilex-key=us-al-statutes--title-11--11-20-5}
All bonds issued by a county under authority of this article shall be limited obligations of the county, the principal of and interest on which shall be payable solely out of the revenues derived from the leasing of the project to finance which the bonds are issued. Bonds and interest coupons issued under authority of this article shall never constitute an indebtedness of the county within the meaning of any state constitutional provision or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the county or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each such bond. Such bonds may be executed and delivered at any time and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times not exceeding 30 years from their date, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the county commission whereunder the bonds shall be authorized to be issued. The bonds issued under this article shall be subject to the general provisions of law, presently existing or that may hereafter be enacted, respecting the execution and delivery of the bonds of a county and respecting the retaining of options of redemption in proceedings authorizing the issuance of county securities. Such bonds shall not, however, be subject to the usury laws, and all such bonds are specifically exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8 of this Code. Any bonds issued under the authority of this article may be sold at public or private sale in such manner and from time to time as may be determined by the county commission to be most advantageous, and the county may pay all expenses, premiums and commissions which the county commission may deem necessary or advantageous in connection with the authorization, sale and issuance thereof. All bonds issued under the authority of this article and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §4; Acts 1971, No. 1184, p. 2043.)*
##### **§ 11-20-6** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-20-6 omnilex-key=us-al-statutes--title-11--11-20-6}
The principal of and interest on any bonds issued under the authority of this article shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such project.
The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the revenues from such project and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the county commission shall deem advisable and as shall not be in conflict with the provisions of this article; provided, however, that in making any such agreements or provisions a county shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers.
The proceedings authorizing any bonds hereunder and any mortgage securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by legal proceedings, and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a county or any charge upon its general credit or against its taxing powers.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §5.)*
##### **§ 11-20-7** Bonds - Disposition of Proceeds from Sale {#sec-11-20-7 omnilex-key=us-al-statutes--title-11--11-20-7}
The proceeds from the sale of any bonds issued under authority of this article shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; and provided further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds. The cost of acquiring any project shall be deemed to include the following: the actual cost of the construction of any part of a project which may be constructed, including architect’s and engineer’s fees; the purchase price of any part of a project that may be acquired by purchase; all expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and the interest on such bonds for a reasonable time prior to construction, during construction and for a period not exceeding six months after completion of construction.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §8.)*
##### **§ 11-20-8** Refunding Bonds {#sec-11-20-8 omnilex-key=us-al-statutes--title-11--11-20-8}
Any bonds issued under this article and at any time outstanding may at any time and from time to time be refunded by a county by the issuance of its refunding bonds in such amount as the county commission may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums and commissions necessary to be paid in connection therewith. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption. Any refunding bonds issued under the authority of this article shall be payable solely from the revenues out of which the bonds to be refunded thereby were payable and shall be subject to the provisions contained in section 11-20-5 and may be secured in accordance with the provisions of section 11-20-6.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §7.)*
##### **§ 11-20-9** Notice, Consent, or Approval of Governmental Body, Etc., Not to Be Required for Issuance or Sale of Bonds or Execution of Mortgages {#sec-11-20-9 omnilex-key=us-al-statutes--title-11--11-20-9}
No notice to or consent or approval by any governmental body or public officer shall be required as a prerequisite to the sale or issuance of any bonds or the making of a mortgage under the authority of this article.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §13.)*
##### **§ 11-20-10** Investment in Bonds by Savings Banks and Insurance Companies {#sec-11-20-10 omnilex-key=us-al-statutes--title-11--11-20-10}
Bonds issued under the provisions of this article shall be legal investments for savings banks and insurance companies organized under the laws of this state.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §10.)*
##### **§ 11-20-11** Counties Not to Contribute Costs of Acquisition of Projects or County Lands Therefor {#sec-11-20-11 omnilex-key=us-al-statutes--title-11--11-20-11}
No county shall have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project and shall not have the power to use land already owned by the county or in which the county has an equity for construction thereon of a project or any part thereof. The entire cost of acquiring any project must be paid out of the proceeds from the sale of bonds issued under the authority of this article; provided, however, that this provision shall not be construed to prevent a county from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §9.)*
##### **§ 11-20-12** Exemption from Taxation of Projects, Bonds, Etc {#sec-11-20-12 omnilex-key=us-al-statutes--title-11--11-20-12}
The bonds authorized by this article and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions hereof and all projects and the revenue derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §11.)*
##### **§ 11-20-13** Construction of Article {#sec-11-20-13 omnilex-key=us-al-statutes--title-11--11-20-13}
Neither this article nor anything herein contained shall be construed as a restriction or limitation upon any powers which a county might otherwise have under any laws of this state, but shall be construed as cumulative, and this article shall not be construed as requiring an election by the voters of a county prior to the issuance of bonds hereunder by such county.
*(Acts 1961, Ex. Sess., No. 178, p. 2147, §12.)*
#### **Article 2** Industrial Development Boards
##### **§ 11-20-30** Definitions {#sec-11-20-30 omnilex-key=us-al-statutes--title-11--11-20-30}
Whenever used in this article, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective interpretations:
(1) CORPORATION. Any corporation organized pursuant to the provisions of this article.
(2) COUNTY. Any county in this state with respect to which a corporation may be organized.
(3) GOVERNING BODY. The commission of the county.
(4) MORTGAGE. A mortgage or a mortgage and deed of trust or a trust indenture.
(5) PROJECT. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more thereof:
a. Any industry for the manufacturing, processing or assembling of any agricultural, manufactured or mineral products;
b. Any commercial enterprise in storing, warehousing, distributing or selling any product of agriculture, mining or industry; and
c. Any enterprise for the purpose of research, but does not include facilities designed for the sale or distribution to the public of electricity, gas, water or telephones or other services commonly classified as public utilities.
A project may consist of or include any land, building, structure, improvement, machinery, equipment, facility or real or personal property or any combination thereof which the board of directors of the corporation may deem necessary or appropriate for use by any industry or enterprise of the character described in the first sentence of this subdivision, including, without limiting the generality of the foregoing, office facilities designed for use by any such industry or enterprise in the management and supervision of its manufacturing, processing, assembling, storing, warehousing, distributing, selling or research operations, wherever located, and facilities for, or useful in, the control, reduction, abatement, or prevention of pollution of air or water or both.
*(Acts 1977, No. 762, p. 1310, §2.)*
##### **§ 11-20-31** Legislative Intent; Construction of Article Generally {#sec-11-20-31 omnilex-key=us-al-statutes--title-11--11-20-31}
(a) It is the intent of the Legislature by the passage of this article to authorize the incorporation in the several counties in this state of public corporations to acquire, enlarge, improve, replace, own, lease and dispose of properties to the end that such corporations may be able to promote industry, develop trade and further the use of the agricultural products and natural and human resources of this state and the development and preservation of the said resources. It is the further intent of the Legislature by the passage of this article to vest such public corporations with all powers that may be necessary to enable them to accomplish such purposes. It is not intended hereby that any such corporation shall itself be authorized to operate any manufacturing, industrial, commercial or research enterprise.
(b) This article shall be liberally construed in conformity with the said intention.
*(Acts 1977, No. 762, p. 1310, §1.)*
##### **§ 11-20-32** Application for Authority to Incorporate; Adoption, Etc., of Resolution by Governing Body Authorizing Incorporation; Incorporation of More Than One Corporation {#sec-11-20-32 omnilex-key=us-al-statutes--title-11--11-20-32}
Whenever any number of natural persons, not less than three, shall file with the governing body of any county of this state an application in writing for authority to incorporate in such county a public corporation under the provisions of this article, and if it shall be made to appear to such governing body that each of said persons is a duly qualified elector of and owner of property in said county and if the governing body of said county shall adopt a resolution which shall be duly entered upon the minutes of such governing body wherein it shall be found and determined that it is wise, expedient, necessary or advisable that such a corporation be formed and that the persons filing said application shall be authorized to proceed to form such corporation, then said persons shall proceed to organize such corporation by executing, acknowledging and filing a certificate of incorporation as provided in this article. No corporation shall be formed under this article unless the application provided for in this section shall be made and unless the resolution provided for in this section shall be adopted. The granting of authority for the incorporation of one public corporation under this article shall not preclude the granting of authority by the governing body of the same county for the incorporation of other public corporations under this article; provided, that such other public corporations shall be required to adopt a name or designation sufficient to distinguish them from any public corporation theretofore incorporated by such county under this article.
*(Acts 1977, No. 762, p. 1310, §3.)*
##### **§ 11-20-33** Certificate of Incorporation - Contents; Execution and Acknowledgment {#sec-11-20-33 omnilex-key=us-al-statutes--title-11--11-20-33}
(a) The certificate of incorporation of any corporation organized under this article shall set forth:
(1) The names and residences of the applicants together with a recital that each of them is an elector of and taxpayer in the county;
(2) The name of the corporation, which shall be The Industrial Development Board of _____ County (the blank space to be filled in with the name of the county) if such name shall be available for use by the corporation and if not available, then the incorporators shall designate some other similar name that is available;
(3) A recital that permission to organize the corporation has been granted by a resolution duly adopted by the governing body of the county and the date of the adoption of such resolution;
(4) The location of the principal office of the corporation (which shall be in the county);
(5) The purposes for which the corporation is proposed to be organized;
(6) The number of directors of the corporation (which shall be not less than three);
(7) The period, if any, for the duration of the corporation (if the duration is perpetual, the fact should be stated); and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this article or with the laws of the state of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Alabama to take acknowledgments to deeds.
*(Acts 1977, No. 762, p. 1310, §4.)*
##### **§ 11-20-34** Certificate of Incorporation - Filing with Probate Judge; Examination, Approval, and Recordation by Probate Judge {#sec-11-20-34 omnilex-key=us-al-statutes--title-11--11-20-34}
When executed and acknowledged in conformity with Section 11-20-33, the certificate of incorporation shall be filed with the judge of probate of the county. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-20-33 have been complied with and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office. The recording of the certificate shall constitute the findings and approval required by the preceding sentence.
When such certificate has been so made and filed, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
*(Acts 1977, No. 762, p. 1310, §5.)*
##### **§ 11-20-35** Certificate of Incorporation - Amendment {#sec-11-20-35 omnilex-key=us-al-statutes--title-11--11-20-35}
If any corporation formed under this article has accidentally or inadvertently failed to comply with the requirements of this article in its organization, such omission or defect may be corrected by filing an amendment as provided in this section. The certificate of incorporation of any corporation formed under this article may also at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance.
Any such amendment shall be effected in the following manner: The board of directors of the corporation shall adopt a resolution proposing such amendment to the certificate of incorporation. The chairman of the board of directors of the corporation shall file with the governing body of the county an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made, which amendment shall be that set forth in the resolution adopted by the board of directors of the corporation. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary or advisable that the proposed amendment be made and shall approve the form of the proposed amendment and shall authorize the amendment to be made, then the chairman of the board of directors of the corporation making such application shall execute an instrument embodying the amendment specified in such application and shall file the same with the judge of probate of the county. The proposed amendment shall be subscribed and acknowledged by the chairman of the board of directors of the corporation and its secretary before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. The recording of the amendment shall constitute the findings and approval required by the preceding sentence. When such amendment has been so made and filed, it shall thereupon become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment.
*(Acts 1977, No. 762, p. 1310, §6.)*
##### **§ 11-20-36** Board of Directors {#sec-11-20-36 omnilex-key=us-al-statutes--title-11--11-20-36}
The corporation shall have a board of directors in which all powers of the corporation shall be vested and which shall consist of any number of directors, not less than three, all of whom shall be duly qualified electors of and taxpayers in the county. The directors shall serve as such without compensation except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties under this article. No more than one director shall be an officer or employee of the county, and in no event shall a judge of probate serve as such director. The directors shall be elected by the governing body of the county and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the county shall divide the directors into three groups containing as nearly equal whole numbers as may be possible. The first term of the directors included in the first group shall be two years, the first term of the directors included in the second group shall be four years, the first term of the directors included in the third group shall be six years and thereafter the terms of all directors shall be six years; provided, that if at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected. Any meeting held by the board of directors for any purpose whatsoever shall be open to the public.
*(Acts 1977, No. 762, p. 1310, §7; Acts 1985, 2nd Ex. Sess., No. 85-986, p. 332.)*
##### **§ 11-20-37** Powers Generally; Location and Operation of Projects {#sec-11-20-37 omnilex-key=us-al-statutes--title-11--11-20-37}
(a) The corporation shall have the following powers, together with all powers incidental thereto or necessary for the performance of those stated in this subsection:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as provided in this article;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To have and to use a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by purchase, construction, exchange, gift, lease or otherwise, improve, maintain, equip and furnish one or more projects, including all real and personal properties which the board of directors of the corporation may deem necessary in connection therewith and regardless of whether or not any such projects or any part thereof shall then be in existence;
(5) To sell, exchange, donate and convey, to contract to sell, exchange and convey and to grant, with or without additional consideration, options to acquire any or all of its properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the corporation was organized;
(6) To lease to others for a period not to exceed 40 years any or all of its projects or any part thereof and to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof;
(7) To grant to others privileges, licenses or permits for the use of land for the construction and operation of projects and to authorize such lessees or grantees to mortgage their interest, rights and properties to finance the construction, enlargement and improvement of such projects;
(8) To issue its bonds for the purpose of carrying out any of its powers;
(9) As security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, to mortgage and pledge any or all of its projects or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof;
(10) To assume obligations secured by a lien on any project or any part thereof that may be acquired, any obligation so assumed to be payable solely out of the revenues and receipts from any or all of its projects or part thereof;
(11) To appoint, employ, contract with and provide for the compensation of such officers, employees and agents, including, but without limitation, engineers, attorneys, architects, construction contractors, management consultants and fiscal advisers, as its business may require;
(12) To provide for such insurance as the board of directors may deem advisable;
(13) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any municipality, county, public corporation or other public entity in the state or any person, or any combination of any of the foregoing; and
(14) To accept gifts, grants, bequests and devises.
(b) Any project or projects of the corporation may be located within or partially within and partially without the county, subject to the following conditions:
(1) No part of a project shall be located more than three miles outside the boundaries of the county;
(2) In no event shall any project or part thereof be located within the corporate limits of a municipality unless the governing body of such municipality has first adopted a resolution consenting to the location of such project or part thereof in such municipality; and
(3) No such project or part thereof shall be located in a county other than the county which authorized the formation of the corporation unless the governing body of such other county has first adopted a resolution consenting to the location of a part of such project in such other county.
(c) The corporation shall not have the power to operate any project as a business other than as a lessor.
*(Acts 1977, No. 762, p. 1310, §8.)*
##### **§ 11-20-38** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Refunding of Bonds {#sec-11-20-38 omnilex-key=us-al-statutes--title-11--11-20-38}
All bonds issued by the corporation shall be payable solely out of the revenues and receipts derived from the leasing or sale by the corporation of its projects or of any thereof as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued.
Such bonds may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable at such time or times, not exceeding 40 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidence in such manner, may be executed by such officers of the corporation and in such manner and may contain such provisions not inconsistent with this article, all as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued. If deemed advisable by the board of directors, there may be retained in the proceedings under which any bonds of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of the bonds, but nothing contained in this section shall be construed to confer on the corporation any right or option to redeem any bonds except as may be provided in the proceedings under which they shall be issued.
Any bonds of the corporation may be sold at public or private sale in such manner and from time to time as may be determined by the board of directors of the corporation to be most advantageous, and the corporation may pay all expenses, premiums and commissions which its board of directors may deem necessary or advantageous in connection with the issuance thereof.
Any bonds of the corporation at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding bonds in such amount as the board of directors may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums, commissions and expenses necessary to be paid in connection with such refunding. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded and regardless of whether or not the bonds to be refunded were issued in connection with the same projects or separate projects and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
All such bonds and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
*(Acts 1977, No. 762, p. 1310, §9.)*
##### **§ 11-20-39** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-20-39 omnilex-key=us-al-statutes--title-11--11-20-39}
The principal of and interest on any bonds issued by the corporation shall be secured by a pledge of the revenues and receipts out of which the same shall be made payable and may be secured by a mortgage covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made.
The resolution under which the bonds are authorized to be issued and any such mortgage may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of fees, rates, tolls and charges for the services, facilities and accommodations furnished by the corporation and of the rents for any portions thereof leased by the corporation to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, all as the board of directors shall deem advisable and which are not in conflict with the provisions of this article.
In the event of default in such payment or in any agreements of the corporation made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage executed as security therefor, such payment or agreement may be enforced by mandamus, the appointment of a receiver or by foreclosure of any such mortgage or any one or more of said remedies.
*(Acts 1977, No. 762, p. 1310, §10.)*
##### **§ 11-20-40** Bonds - Notice of Resolution Authorizing Issuance of Bonds; Limitation Period for Actions, Etc., as to Validity of Proceedings for Issuance of Bonds, Etc {#sec-11-20-40 omnilex-key=us-al-statutes--title-11--11-20-40}
Upon the adoption by the board of directors of any resolution providing for the issuance of bonds, the corporation may, in its discretion, cause to be published once a week for two consecutive weeks, in a newspaper published in the county a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of the corporation: “_____, a public corporation under the laws of the State of Alabama, on the ___ day of _____, authorized the issuance of $_____ principal amount of revenue bonds of the said corporation for purposes authorized in the act of the Legislature of Alabama under which the said corporation was organized. Any action or proceeding questioning the validity of the said bonds, the pledge and mortgage to secure the same, any lease or sale of the project to be financed by said bonds, or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.”
Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of such bonds or the validity of the pledge and mortgage made therefor or the lease or sale of the project to be financed by said bonds must be commenced within 20 days after the first publication of such notice. After the expiration of the said period, no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds or the said pledge or mortgage or the lease or sale of the project to be financed by said bonds shall be asserted, nor shall the validity of the said proceedings or of the said bonds or the said pledge or mortgage or the lease or sale of the project to be financed by said bonds be open to question in any court on any ground whatsoever except in an action or proceeding commenced within such period.
*(Acts 1977, No. 762, p. 1310, §11.)*
##### **§ 11-20-41** Borrowing of Money for Temporary Use and Issuance of Temporary Revenue Bonds or Notes as Evidence Thereof {#sec-11-20-41 omnilex-key=us-al-statutes--title-11--11-20-41}
The corporation may, in addition to the other powers granted in this article, borrow money for temporary use for any of its corporate purposes and in evidence of such borrowing issue from time to time revenue bonds or notes maturing not later than three years from the date of issuance.
Any such temporary borrowing may be made in anticipation of the sale and issuance of long term revenue bonds, and in such event the principal proceeds from the sale of such long term revenue bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary revenue bonds or notes issued in anticipation of the sale and issuance of such long term revenue bonds.
*(Acts 1977, No. 762, p. 1310, §12.)*
##### **§ 11-20-42** Liability of County Upon Bonds, Obligations, Agreements, Etc., of Corporations {#sec-11-20-42 omnilex-key=us-al-statutes--title-11--11-20-42}
The county shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the county within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1977, No. 762, p. 1310, §15.)*
##### **§ 11-20-43** Disposition of Net Earnings {#sec-11-20-43 omnilex-key=us-al-statutes--title-11--11-20-43}
The corporation shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation; except, that in the event the board of directors of the corporation shall determine that sufficient provision has been made for the full payment of expenses, bonds and other obligations of the corporation, then any net earnings of the corporation thereafter accruing shall, at the option of the board of directors, be used to pay the cost of extensions and improvements to any of its projects or paid to the county with respect to which the corporation was organized.
*(Acts 1977, No. 762, p. 1310, §16.)*
##### **§ 11-20-44** Conveyances, Etc., of Assets to Corporations by Other Public Corporations; Assumption of Obligations or Indebtedness of Corporations Making Conveyances, Etc {#sec-11-20-44 omnilex-key=us-al-statutes--title-11--11-20-44}
Any public corporation organized pursuant to the provisions of any other law of this state may, either with or without the payment of pecuniary consideration, transfer, assign or convey all or any part of its assets, including, but without limitation, land, interests in land, improvements, buildings, structures, roads, utility facilities, cash and any facilities which would be a part of a project, to any corporation organized pursuant to the provisions of this article, and any corporation so organized under the provisions of this article is authorized to assume any obligation or indebtedness of any such other public corporation making such a conveyance, transfer or assignment, provided such indebtedness is payable solely out of the revenues and income of a project or of the facilities and assets so transferred, assigned or conveyed.
*(Acts 1977, No. 762, p. 1310, §21.)*
##### **§ 11-20-45** Authority and Procedure for Dissolution of Corporations; Disposition of Funds and Properties Thereof Upon Dissolution {#sec-11-20-45 omnilex-key=us-al-statutes--title-11--11-20-45}
Whenever the board of directors of the corporation shall by resolution determine that the purposes for which the corporation was formed have been substantially complied with and all bonds theretofore issued and all obligations theretofore incurred by the corporation have been fully paid, the then members of the board of directors of the corporation shall thereupon execute and file for record in the office of the judge of probate of the county in which the corporation is organized a certificate of dissolution reciting such facts and declaring the corporation to be dissolved. Such certificate of dissolution shall be executed under the corporate seal of the corporation.
Upon the filing of such certificate of dissolution, the corporation shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in the county and possession of such funds and properties shall forthwith be delivered to such county.
*(Acts 1977, No. 762, p. 1310, §17.)*
##### **§ 11-20-46** Documents of Corporations May Be Filed for Record Without Payment of Taxes or Certain Fees {#sec-11-20-46 omnilex-key=us-al-statutes--title-11--11-20-46}
The certificate of incorporation of the corporation or any amendment thereof, any deeds or other documents whereby properties are conveyed over to the corporation, any mortgages executed by the corporation, any leases made by the corporation and the certificate of dissolution of the corporation may all be filed for record in the office of the judge of probate of the county in which the corporation is organized without the payment of any tax or fees other than such fees as may be authorized by law for recording of such instruments.
*(Acts 1977, No. 762, p. 1310, §18.)*
##### **§ 11-20-47** Exemptions of Corporations - Taxation {#sec-11-20-47 omnilex-key=us-al-statutes--title-11--11-20-47}
The corporation, all properties at any time owned by it and income therefrom of the corporation, all bonds issued by the corporation and the income therefrom, conveyances by or to the corporation and leases and mortgages by or to the corporation shall be exempt from all taxation in the State of Alabama. No license or excise tax may be imposed on any corporation in respect of the privilege of engaging in any of the activities authorized by this article.
*(Acts 1977, No. 762, p. 1310, §13.)*
##### **§ 11-20-48** Exemptions of Corporations - Usury and Interest Laws {#sec-11-20-48 omnilex-key=us-al-statutes--title-11--11-20-48}
Each corporation organized under the provisions of this article is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1977, No. 762, p. 1310, §14.)*
##### **§ 11-20-49** Exemptions of Corporations - Competitive Bid Laws {#sec-11-20-49 omnilex-key=us-al-statutes--title-11--11-20-49}
Each corporation organized under the provisions of this article, and all contracts made by such corporations, shall be exempt from the provisions and requirements of Sections 41-16-50 through 41-16-63.
*(Acts 1977, No. 762, p. 1310, §19.)*
##### **§ 11-20-50** Construction of Article {#sec-11-20-50 omnilex-key=us-al-statutes--title-11--11-20-50}
Neither this article nor anything contained in this article shall be construed as a restriction or limitation upon any powers which the corporation might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.
*(Acts 1977, No. 762, p. 1310, §20.)*
#### **Article 3** Agricultural Authorities for Advancement of Humanities
##### **§ 11-20-70** Establishment of Agriculture Authority; Application; Articles of Incorporation {#sec-11-20-70 omnilex-key=us-al-statutes--title-11--11-20-70}
(a) An agriculture authority may be established in any county to construct and operate facilities to promote agricultural businesses, operations, and commodities, workforce development, and economic development within the county, and to otherwise raise revenue to be used for the purposes of the authority, as further provided in this article. The operational area of an agriculture authority may not extend beyond the boundaries of the county in which an agriculture authority is incorporated.
(b) Any number of natural persons who are residents and qualified electors in the county may file an application in writing with the county commission for authority to incorporate and organize an agriculture authority. If the application is approved, the county commission shall adopt a resolution declaring it to be wise, expedient, and beneficial to the county that the agriculture authority be formed and that the persons filing the application are authorized to form the authority. An agriculture authority may not be formed under this article unless the application is approved by the county commission and the resolution required herein is adopted.
(c) Once the county commission has approved the application as provided in subsection (b), the persons seeking incorporation of an agriculture authority shall file articles of incorporation with the office of the judge of probate that do all of the following:
(1) Contain a statement that the incorporators propose to incorporate an agriculture authority pursuant to this article.
(2) State the authorized operational area of the proposed authority within the county.
(3) State that the county commission has approved the application for an agriculture authority and has adopted a resolution declaring that it is expedient that the proposed authority be formed by approving the written application.
(d) The application shall be accompanied by articles of incorporation that include all of the following:
(1) A designation of the authorized operational area of the authority which shall be considered an agriculture center, including the name of each municipality within the authorized operational area, which may not extend beyond the boundaries of the county in which the authority is incorporated.
(2) The names of the incorporators of the authority and a statement that each is qualified to incorporate the authority.
(3) The name of the authority, which must include the words “Agriculture Authority” or “Agriculture Center Authority” and be reasonably descriptive of the operational area of the authority.
(4) The period of the authority, which may be perpetual.
(5) The location of the principal office of the authority, which shall be within the boundaries of the county.
(6) A statement that the authority is organized pursuant to this article.
(7) If the exercise by the authority of any of its powers is to be in any way prohibited, limited, or conditioned, a statement of the terms of the prohibition, limitation, or condition.
(8) The number of directors, which may not exceed seven, and the duration of their respective terms of office, which may not exceed six years.
(9) The manner of appointing directors, which shall be a combination of appointment by the county commission and appointment by the legislative delegation for the authorized operational area of the authority; provided, however, a majority of the directors must be appointed by the legislative delegation.
(10) Any provision not inconsistent with this article relating to the dissolution of the authority.
(11) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this article or with state law.
(e) The articles shall be signed by each of the incorporators.
(f) Upon the filing for record of the articles with the office of the judge of probate, the authority shall come into existence and shall constitute a public corporation under the name set forth in its articles of incorporation. The acceptance of articles for recording by the judge of probate shall be conclusive evidence of the due, legal, and valid incorporation of the agriculture authority in all courts. The judge of probate shall record the articles in an appropriate book in his or her office. There shall be no filing fee or recording taxes due or payable on account of the filing for record of the articles.
(g) Notwithstanding any other provision of this article, the articles of incorporation or legal existence of an agriculture authority shall not be deemed invalid for the sole reason that the articles of incorporation of the authority fail to specify an authorized operational area, and every agriculture authority whose articles of incorporation fail to specify an authorized operational area but are otherwise formed in accordance with this article may do all things contemplated by this article as if the agriculture authority had designated as its authorized operational area the county of incorporation.
*(Act 2017-246, p. 370, §1; Act 2024-236, §1.)*
##### **§ 11-20-71** (Amended by Act 2026-497) Board of Directors; Officers; Proceedings; Qualifications of Directors; Directors Emeritus {#sec-11-20-71 omnilex-key=us-al-statutes--title-11--11-20-71}
**AMENDED BY ACT 2026-497, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) The board of directors of an agriculture authority shall be as specified in the articles and in accordance with Section 11-20-70.
(b) Each agriculture authority shall have a chair, vice chair, secretary, and treasurer to be elected by the board of directors. The offices of secretary and treasurer may be held by the same person. A majority of the directors shall constitute a quorum for the transaction of business. The officers and directors shall serve for the terms provided for in the articles. A director may not draw any salary for any service rendered or for any duty performed as director. The duties of the chair, vice chair, secretary, and treasurer shall be those as are customarily performed by these officers and as may be prescribed by the board of directors.
(c) All directors shall serve until their successors are appointed or until they cease to be qualified. Vacancies on the board shall be filled as provided for in the articles, but any individual appointed to fill a vacancy shall serve only for the unexpired portion of the term. In the event any uncertainty arises as to the terms of office of the directors, the county commission or individual authorized to appoint the directors may clarify the term by adoption of an appropriate resolution or by execution of an appropriate certificate, and the term of office shall be as so clarified.
(d) All proceedings of the board of directors of an agriculture authority shall be reduced to writing by the secretary of the authority and shall be signed by at least two directors present at the proceedings. Copies of the proceedings, when certified by the secretary under the seal of the agriculture authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(e) Directors of an agriculture authority must be residents and qualified electors of the county within the authorized operational area of the authority. If any director ceases to be a resident of the county, he or she shall cease to be a director, and the position shall remain vacant until a successor is appointed in accordance with the articles and this article.
(f) A director of an agriculture authority may not have an interest, directly or indirectly, in any contract of work, material, or services, or the profits therefrom, to be furnished or performed for the authority under this article if the director has, directly or indirectly, more than a 10 percent interest in any business, firm, or corporation, or profits thereof, furnishing or providing work, materials, or services.
(g) The board of directors may appoint former members of the board to serve as directors emeritus. Directors emeritus shall not have voting rights on the board or otherwise directly participate in meetings of the board. Directors emeritus shall receive no compensation for their service, but may be granted benefits and may attend events of the authority as guests of the authority at the discretion of the board. The directors emeritus shall serve as goodwill ambassadors for the authority and may perform duties at the request of the authority. Directors emeritus shall be subject to subsections (e) and (f).
*(Act 2017-246, §2; Act 2023-232, §1.)*
##### **§ 11-20-72** Amending Articles of Authority {#sec-11-20-72 omnilex-key=us-al-statutes--title-11--11-20-72}
(a) The articles of an agriculture authority may at any time be amended in the manner provided in this section. The board of directors shall first adopt a resolution proposing an amendment to the articles, setting forth the full text of the amended language. An amendment may be made for the sole purpose of altering, in accordance with this article, the authorized operational area of the authority, provided the articles may not be amended to extend the operational area of the authority beyond the boundaries of the county in which the authority is incorporated.
(b) After the adoption by the board of directors of an agriculture authority of a resolution proposing an amendment to the articles, the chair and the secretary shall sign and file with the county commission of the appropriate county a written application in the name and on behalf of the authority, under its seal, requesting that the county commission adopt a resolution approving the proposed amendment, and accompanied by a copy of the resolution adopted by the board of directors proposing the amendment to the articles. As promptly as may be practicable after the filing of the application, the county commission shall review the application and shall adopt a resolution either denying the application or approving and authorizing the proposed amendment. A proposed amendment shall not take effect unless approved by the county commission. The resolution need not be published or posted and need not be offered for more than one reading.
(c) Following the adoption of a resolution approving the proposed amendment by the county commission, the chair and the secretary shall sign and file for record in the office of the judge of probate a certificate in the name and on behalf of the authority, under its seal, reciting the adoption of resolutions by the board and by the county commission and setting forth the proposed amendment. The judge of probate shall record the certificate in an appropriate book in his or her office. When the certificate has been so filed and recorded, the amendment shall become effective, and the articles shall be amended as provided in the amendment.
*(Act 2017-246, §3.)*
##### **§ 11-20-73** Powers of Authority; Execution of Contracts; Disposition of Funds {#sec-11-20-73 omnilex-key=us-al-statutes--title-11--11-20-73}
**AMENDED BY ACT 2026-497, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) An agriculture authority shall have the following powers, which it may exercise in the agriculture authority’s authorized operational area:
(1) To have succession by its corporate name until dissolved as provided in this article.
(2) To adopt bylaws making provisions for its actions not inconsistent with this article.
(3) To institute and defend legal proceedings in any court of competent jurisdiction and proper venue; provided, however, that the board may not be sued in any trial court other than the courts of the county of incorporation; provided, further, that the officers, directors, agents, and employees of an agriculture authority may not be sued for their actions on behalf of the authority except for actions that are unreasonable or known by the person to be unlawful or are performed with reckless disregard for the lawfulness of such actions.
(4) To plan for construction and development of an agriculture center within the operational area of the agriculture authority on property owned by the authority. Construction and development may include, without limitation, any or all of the following:
a. Buildings to hold offices for use by the federal government, the state or any agency of the state, the county, or one or more municipalities within the county.
b. Buildings to house or accommodate public facilities of the federal government, the state or any agency of the state, the county, or one or more municipalities within the county.
c. Streets, boulevards, walkways, parkways, parks, or other places of recreation.
d. Monuments, statues, or other structures beautifying the agriculture center.
e. Community houses, meeting houses, or auditoriums.
f. Arenas, convention halls, sports facilities, stadiums, hotels or other facilities for use as a transient guest housing facility, multifamily housing, dormitory housing, food courts or other food venue facilities, any facilities that provide for or support any public or private educational institution, and any other facilities related to or incidental to the foregoing.
g. Music halls, art museums, art exhibits, or other exhibits for the advancement of the humanities and cultural development.
h. Any other buildings, structures, facilities, and other improvements that the board of directors of the agriculture authority determines are appropriate, useful, or expedient to the authority’s purposes from time to time. The determination of the authority board of directors shall be conclusive.
(5) To acquire property and rights and interests in property by gift, grant, lease, or purchase.
(6) To accept or receive gifts, bequests, and devises.
(7) To have and use a corporate seal and alter the seal at its pleasure.
(8) To appoint officers, agents, employees, and attorneys and to fix their compensation.
(9) To hire professionals and enter into contracts for their services in designing and supervising the construction of any building, agriculture center, auditorium, arena, convention hall, music hall, art museum, place of recreation, art exhibit, office building, or other structure that it desires to construct.
(10) To make and enter into contracts and to execute all instruments necessary or convenient to lease or purchase and own real or personal property to be used for the furtherance of the purposes for the accomplishment of which the authority is created.
(11) To plan for programs and exhibits in the agriculture center for the advancement of the agricultural, cultural, and workforce development interests of the citizens of the county and of the municipalities thereof.
(12) To purchase or lease real property and rights or easements therein necessary or convenient for its purposes and to use the same so long as its existence shall continue.
(13) To accept pledges of revenues or grants of money from any person or governmental entity.
(14) To sell and lease its property to any person or governmental entity.
(15) To enter into financing agreements with federal or state agencies that may require the authority to mortgage its property.
(16) To plan for programs and exhibits in the agriculture center for the advancement of agricultural and workforce development interests in the county.
(17) To enter into long-term contracts or agreements for sewer service with any Class 5 municipality within three miles of the authority or a utility board of the Class 5 municipality.
(18) To accept lease payments, loan repayments, or other compensation to or for the authority or other public person.
(19) To invest in bank deposits, U.S. Treasury bills, projects, instruments, real, personal, or mixed property, or any other investments as the board of directors of the authority may from time to time determine to be appropriate and convenient to accomplish any purpose for which an agriculture authority is organized, including works of internal improvement, interests in private or corporate enterprises, loans of money or credit to individuals, associations, or corporations; and to lend the authority’s credit, grant public money or things of value in aid of or to any individual, association, or corporation whatsoever, or become a stockholder in any such corporation, association, or company by issuing bonds or otherwise even though they may be in violation of Section 93 or Section 94 of the Constitution of Alabama of 2022, if done by the state, a county, city, town, or other subdivision of the state, notwithstanding the fact that any such investment or action may involve the expenditure or appropriation of funds received from a public person. In particular, but not by way of limitation, an authority may invest its funds, from whatever source, in the stock, bonds, debentures, notes, or other securities issued by any person locating a project in the authority’s operational area and may enter into contracts or options, including contracts or options for the conveyance, sale, or lease of property, to the person and make direct grants of money, property, or services for the purpose of inducing the person to locate a project in the authority’s operational area.
(20) To enter into deeds, mortgages, leases, loan agreements, or other agreements with any person.
(21) To acquire real property for the purpose of establishing one or more agriculture centers; to improve agriculture center sites, whether owned by the authority or by any other person, including the improvement of the centers or sites by the construction of roads, curbing, gutters, drainage, sewerage, utilities, railroad spurs, docks, harbors, ports, grading, and the like; to construct, for its own account or the account of others, improvements thereon, including any project, for the purpose of conveying, leasing, or selling the same to any person, including the power to convey, lease, or sell the same for its own account or to construct the same as an inducement for any person to locate and operate a project in the agriculture center or operational area, even though the person may not have been identified at the time that the improvement may be constructed.
(22) To sell, exchange, donate, and convey any or all of its properties whenever its board of directors finds the action to be in furtherance of the purposes for which the authority was organized.
(23) To issue its bonds for the purpose of carrying out any of its powers and to apply proceeds from the sale of its bonds, whether heretofore or hereafter issued, not only for payment of interest thereon prior to and during the construction and equipment of any buildings, structures, facilities, or other improvements being financed thereby, but also for payment of interest thereon.
(24) To mortgage and pledge any or all of its properties both real and personal or any part or parts thereof, as security for the payment of the principal of and the interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof.
(25) To enter into contracts, agreements, options, leases, loan agreements, deeds, and other instruments, and to take other actions as may be necessary or convenient to accomplish any purpose for which an authority is organized or to exercise any power expressly granted hereunder.
(26) To enter into contracts, agreements, leases, or other instruments, either independently or through another entity, to design, develop, construct, own, or operate any commercial facility, to acquire lands or other assets for the facility, to raise revenue from the operation of the facility, and to use any revenue from the operation of the facility to fund projects and operations in support of the authority’s mission, including the payment of any expenses and debt of the authority. The power provided in this subdivision shall include the power to make advance payments to third parties for services.
(27)a. To terminate or relocate an easement on property owned by the authority using the same power of eminent domain as the state possesses, which shall be exercised in the same manner and under the same conditions as are provided by law for the exercise of the power of eminent domain by the state.
b. This subdivision shall not apply to any easement to which an electric utility has the right to enter upon.
(b) Contracts of an agriculture authority shall be executed in the name of the authority by the chair and attested by the secretary of the authority. The board may provide by resolution for a different form for the execution of a contract by an officer or agent other than the chair and secretary. A contract, irrespective of its form and of the persons executing the contract, shall not be binding unless the contract is authorized or ratified by the board.
(c) An agriculture authority may deposit its funds not needed to meet expenses or obligations in any bank or building and loan association, provided the deposit is fully insured by a federal corporation or agency of the federal government insuring deposits in financial institutions.
(d) In exercising the powers enumerated in this section, all mortgages, contracts, judgments, investments, loans, debts, and other obligations of any sort of the authority due to any third party shall be recovered and enforced only against the authority unless the county commission approving the formation of the authority specifically agrees to accept the obligation by a separate affirmative vote of a majority of the members of the county commission.
(e) In addition to all other powers at any time conferred on it by this section or otherwise by law, an authority shall have the following powers together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To participate: As a shareholder in a corporation; as a joint venturer in a joint venture, whether the joint venture is to be memorialized contractually or through the formation of one or more separate business entities; as a general or limited partner in a limited partnership or a general partnership; as a member in a nonprofit corporation or limited liability company; or as a member of any other lawful form of business organization that may be involved in the development or operational activities of any buildings, structures, facilities, and other improvements that the board of directors of the authority determines are appropriate, useful, or expedient to the authority’s purposes. In connection with the foregoing, an authority may elect or appoint an individual or individuals to a governing body and enter into contracts or other agreements with other parties for the development, operation, design, marketing, maintenance, and use of any facilities upon the terms as the board of directors of the authority determines are appropriate, useful, or expedient to the authority’s purposes. Any determination by the authority shall be conclusive.
(2) To make or arrange for loans, contributions to capital, and other debt and equity financing for the activities of any corporation of which the authority is a shareholder; any joint venture in which the authority is a joint venture; any limited partnership or general partnership of which the authority is a general or limited partnership; any nonprofit corporation in which the authority is a member of any other lawful form of business organization of which the authority is a member; and to guarantee loans, issue bonds, or incur other forms of indebtedness on behalf of the corporation, joint venture, partnership, nonprofit corporation, or other business entity, for such purposes. An authority may loan funds that include seller financing arrangements whereby the authority is a seller to other governmental entities or other business entities whether for profit or nonprofit and whether affiliated or non-affiliated with the authority, upon the terms as the authority shall determine appropriate, useful, or expedient for the authority’s purposes and the determination by the authority shall be conclusive.
(3) To create, establish, acquire, operate, or support subsidiaries and affiliates, either for profit or nonprofit, to assist the authority in fulfilling its purposes.
(4) To create, establish, or support nonaffiliated for profit or nonprofit corporations or other lawful business organizations that operate and have as their purposes the furtherance of the authority’s purposes.
(5) Without limiting the generality of subdivisions (1) through (4), to accomplish and facilitate the creation, establishment, acquisition, development, operation, or support of any subsidiary, affiliate, nonaffiliated corporation, or other lawful business organization by means of loans of funds, leases of real or personal property, gifts and grants of funds, or guarantees of indebtedness of the subsidiaries, affiliates, and non-affiliated corporations.
(6) In addition to any other authority to enter into contracts, to enter into contracts, agreements, or understandings with any other public and private parties including, but not limited to, the following:
a. Design-build, design-build-operate, design-build-own-operate, design-build-own-operate-maintain, design-build-finance-operate-maintain, or other similar arrangements or agreements pursuant to which the design, right-of-way acquisition, relocation of structures or utilities, construction, financing, ownership, management, maintenance, and operation, or any combination thereof of a project is accomplished by or on behalf of the authority.
b. Leases, licenses, franchises, concessions, or other agreements for the development, operation, management, or undertaking of all or any part of a project of or on behalf of the authority.
(7) Notwithstanding any provision of law to the contrary, proposals under this subsection may be evaluated and awarded by the authority based on qualifications of participants or best value, or both, as evaluated by procedures of the authority and taking into consideration the best interests of the authority. Evaluation criteria for a contract procured pursuant to the preceding sentence shall be set forth in the request for proposal for the contract. The contract may also be awarded through any existing procurement authority, proposals, or other means of procurement otherwise available to the authority.
(f) An agriculture authority may purchase or otherwise obtain any item on the statewide public contract list compiled by the Chief Procurement Officer on the terms provided therein.
*(Act 2017-246, p. 370, §4; Act 2022-376, §1; Act 2023-232, §1; Act 2024-236, §1; Act 2025-301; §1.)*
##### **§ 11-20-74** Borrowing of Money; Security {#sec-11-20-74 omnilex-key=us-al-statutes--title-11--11-20-74}
(a) Subject to the conditions, qualifications, and restrictions set forth in subsection (b), an agriculture authority may borrow money from any person or governmental entity. As security for any money borrowed, together with interest thereon, and any obligations incurred or assumed, an agriculture authority may mortgage, pledge, or otherwise transfer and convey its real, personal, and mixed property, or any part or parts thereof, whether then owned or thereafter acquired, including any franchises then owed or thereafter adopted and all or any part of any funds of the authority. In a resolution authorizing the mortgage given to secure the payment thereof, an agriculture authority, in addition to its other powers, shall have the power to agree with the several holders of the mortgage to make, enter, and perform covenants and agreements as to all of the following:
(1) The conduct, management, and maintenance of the properties held by the authority or of the activities, operations, and enterprises then or thereafter conducted by the authority.
(2) Insurance of the properties of the authority.
(3) Restrictions on the exercise of the powers of the authority to dispose or to limit or regulate the use of all or any part of the properties of the authority.
(4) The use and disposition of any moneys of the authority, including taxes payable to the authority under any act of the Legislature heretofore or hereafter adopted and revenues derived or to be derived from the activities, operations, and enterprises of all or any part of the properties of the authority, including any part or parts theretofore constructed or acquired and any parts, extensions, replacements, or improvements thereafter constructed or acquired.
(5) The setting aside of the taxes payable to the authority under any act of the Legislature heretofore or hereafter adopted or use of the revenues or the moneys of the authority or reserves and sinking funds, and the source, custody, security, regulation, application, and disposition thereof.
(6) The assumption or payment or discharge of any indebtedness, liens, or other claims relating to any part of the properties of the authority or any obligations constituting, or which may constitute, a lien on the properties or any part thereof.
(7) Limitations or other evidences of indebtedness or upon the incurrence of indebtedness of the authority.
(b) The power vested in an agriculture authority to pledge taxes to be paid to the authority or to pledge revenue of the authority shall not be construed as undertaking or purporting to empower the authority to pledge any tax or any revenue if the pledge is prohibited by the Constitution of Alabama of 1901. It is expressly provided that the authority shall have the power to pledge any tax paid to the authority or revenue of the authority, the pledge of which is authorized by the Constitution of Alabama of 1901.
(c) The powers and authority set forth in this section shall only be exercised if necessary in order for the authority to receive federal funding or grants for any projects or activities of the authority.
*(Act 2017-246, §5.)*
##### **§ 11-20-75** Advisory Council {#sec-11-20-75 omnilex-key=us-al-statutes--title-11--11-20-75}
The board of directors of an authority may appoint an advisory council consisting of up to 10 members to advise the board. The advisory council members shall serve two-year terms, and are not required to be residents of the county of incorporation. Members may be appointed to additional terms by the board to serve on the advisory council.
*(Act 2017-246, §6.)*
##### **§ 11-20-76** Lease, Sale, Conveyance, Etc., of Property {#sec-11-20-76 omnilex-key=us-al-statutes--title-11--11-20-76}
The county of incorporation and each municipality in the county may lease, sell, donate, or otherwise convey to an agriculture authority real or personal property, including park properties, without authorization by election of the qualified voters of the county or of the municipality; and the county and each municipality thereof are authorized, but not required, to appropriate public funds of the county or of the municipality, as the case may be, to the authority to be used by the authority for purposes enumerated in this article. The county shall not lease, sell, donate, or convey any property to the authority, or appropriate any money to the authority, unless the county commission has determined that the lease, sale, donation, conveyance, or appropriation will benefit the people of the county or municipality to such an extent as to fully warrant and justify the lease, sale, donation, conveyance, or appropriation.
*(Act 2017-246, §7.)*
##### **§ 11-20-77** Construction of Article {#sec-11-20-77 omnilex-key=us-al-statutes--title-11--11-20-77}
This article shall not be construed to limit the right, power, or authority of any municipality to operate facilities similar to the facilities provided for by this article. It is expressly provided that this article shall not in any way affect any auditorium, art museum, or other facility presently owned or hereafter acquired by any municipality, whether situated in the agriculture center or elsewhere.
*(Act 2017-246, §8.)*
##### **§ 11-20-78** Dissolution of Authority {#sec-11-20-78 omnilex-key=us-al-statutes--title-11--11-20-78}
(a) An agriculture authority may be dissolved by the adoption by its board of directors of a resolution recommending its dissolution and the approval of such dissolution and the proposed articles of dissolution by the appropriate county commission. The resolution need not be published or posted and need not be offered for more than one reading. Upon receiving necessary approval under this section, the chair and secretary of the dissolved authority shall execute articles of dissolution reciting that such resolutions have been adopted and that the authority has been dissolved. The articles of dissolution shall be filed with the judge of probate, who shall record them in an appropriate book.
(b) Upon dissolution of an agriculture authority, all rights, property interests, assets, and obligations of the authority shall be transferred to the county.
*(Act 2017-246, §9.)*
##### **§ 11-20-79** Consumption of Alcoholic Beverages Within Agriculture Center {#sec-11-20-79 omnilex-key=us-al-statutes--title-11--11-20-79}
An agriculture authority may permit the consumption of alcoholic beverages any day of the week, purchased from licensees of the Alcoholic Beverage Control Board, to be consumed by purchasers within the boundaries of the agriculture center.
*(Act 2017-246, §10.)*
##### **§ 11-20-80** Exemption from Certain Municipal Ordinances, Requirements, and Laws {#sec-11-20-80 omnilex-key=us-al-statutes--title-11--11-20-80}
(a) An agriculture authority and all property in which it may have any ownership, leasehold, or other interest, direct or indirect, is exempt from all municipal planning boards, municipal planning board requirements, and all municipal zoning ordinances and laws. This exemption shall not apply to property owned by a private entity or private entities in which an agriculture authority has no ownership, leasehold, or other interest, direct or indirect.
(b) Any agriculture authority incorporated before May 23, 2023, shall be exempt from any ordinance or regulation of any municipality unless the board of the authority consents to the application of the ordinance or regulation to the authority.
*(Act 2017-246, §11; Act 2022-376, §1; Act 2023-232, §1.)*
##### **§ 11-20-81** Exemption from Certain Taxes {#sec-11-20-81 omnilex-key=us-al-statutes--title-11--11-20-81}
**AMENDED BY ACT 2026-497, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) An agriculture authority, as a governmental entity, is exempt from the payment of all state, county, and municipal sales and use taxes. An agriculture authority and its contractors shall be granted a certificate of exemption from sales and use taxes by the Department of Revenue as provided in Sections 40-9-14.1 and 40-9-60, or other general law.
(b)(1) Any county or municipal sales and use tax proceeds that are collected by an agriculture authority; a joint venture of the authority, including a public/private venture of the authority; or a lessee of the authority or a joint venture of the authority, and remitted to a local taxing authority shall be rebated by that local taxing authority to the agriculture authority.
(2) For an agriculture authority established pursuant to this article, after May 1, 2022, the county commission, at the time of the formation of the authority, may opt-out of the requirement to rebate sales taxes collected by a private entity, joint venture partner, or public-private partnership.
(c) An agriculture authority is exempt from paying all state, county, and local ad valorem taxes.
(d) An agriculture authority is exempt from paying any other taxes levied by a county, municipality, or other political subdivision of the state, including, but not limited to, license and excise taxes imposed relating to the privilege of engaging in any activities that the authority may engage in.
(e) All state lodging taxes collected by an agriculture authority and remitted to the taxing authority shall be rebated by that taxing authority to the agriculture authority.
*(Act 2017-246, p. 370, §12; Act 2022-376, §1; Act 2025-301, §1.)*
### **Chapter 21** Acquisition of Waterworks Plants or Distribution Systems
##### **§ 11-21-1** Power of Counties to Purchase {#sec-11-21-1 omnilex-key=us-al-statutes--title-11--11-21-1}
Any county in the state shall have the power and authority to purchase or acquire, and to operate, and to assume any indebtedness connected with, any waterworks plant or water distribution system, or both, located in the county and owned by any municipality located within the county or by any public corporation organized under the laws of this state upon such consideration as shall be agreed upon.
*(Acts 1975, No. 1213, §1.)*
##### **§ 11-21-2** Power of Municipalities to Sell {#sec-11-21-2 omnilex-key=us-al-statutes--title-11--11-21-2}
Any municipality in the state shall have the power and authority to sell, convey, and transfer any waterworks plant or water distribution system, or both, owned by it to the county in which the municipality is located, upon such consideration as may be agreed upon, including the assumption of any indebtedness connected with any such system.
*(Acts 1975, No. 1213, §2.)*
##### **§ 11-21-3** Publication of Notice {#sec-11-21-3 omnilex-key=us-al-statutes--title-11--11-21-3}
At least 30 days prior to the consummation of any such sale, conveyance, or transfer, the municipality shall cause to be published at least once in a newspaper having general circulation within the municipality, a copy of the ordinance authorizing such sale, transfer, or conveyance.
*(Acts 1975, No. 1213, §3.)*
##### **§ 11-21-4** No Election Required {#sec-11-21-4 omnilex-key=us-al-statutes--title-11--11-21-4}
No election of any nature shall be required for the exercise or implementation of any power or authority granted by this chapter.
*(Acts 1975, No. 1213, §4.)*
### **Chapter 22** Public Park and Recreation Boards
##### **§ 11-22-1** Definitions {#sec-11-22-1 omnilex-key=us-al-statutes--title-11--11-22-1}
For the purposes of this chapter, the following terms shall have the respective meanings ascribed by this section:
(1) CORPORATION. Any corporation organized pursuant to the provisions of this chapter.
(2) COUNTY. Any county in this state with respect to which a corporation may be organized.
(3) GOVERNING BODY. The county commission.
(4) MORTGAGE. A mortgage or a mortgage and deed of trust.
(5) PROJECT. Any land or any interest therein, including forests, rivers, streams, waterways, and lakes, and any buildings or other improvements thereon, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for a public park, and all buildings, facilities, and improvements incident thereto or useful in connection therewith, including but without limitation, picnic areas, camp sites, trailer sites, cabins, lodges, roads and trails for hiking, bicycling, or horseback riding, nature trails, botanical gardens, zoos, museums, exhibition areas, comfort stations, athletic fields, golf courses, tennis and badminton courts, bowling alleys, skeet, trap, rifle and archery ranges, swimming pools, bathhouses, beaches, docks and marinas, club houses, boats, rides, amusement facilities, boating facilities, areas and facilities for fishing and hunting, areas and facilities for aquatic entertainment and sports, stadiums, coliseums, arenas, grandstands, auditoriums, meeting halls, pavilions, centers for cultural entertainment, music, drama, exhibitions and exhibits, amphitheatres, administrative or office buildings, and public accommodation facilities as hereinafter defined.
(6) PUBLIC ACCOMMODATION FACILITIES. Buildings, facilities, and improvements for the accommodation of visitors to any such public park, including without limitation of the foregoing, motels, restaurants, coffee shops, stores to provide groceries, drugs and other items, sports, gift and souvenir shops, boat service and storage facilities, and launderettes; provided, that nothing contained in this chapter is intended to authorize any such corporation itself to operate as a commercial enterprise any such shops, boat service and storage facilities, stores, motels, or restaurants.
*(Acts 1975, 3rd Ex. Sess., No. 139, §2.)*
##### **§ 11-22-2** Intent of Legislature {#sec-11-22-2 omnilex-key=us-al-statutes--title-11--11-22-2}
It is the intention of the Legislature by the passage of this chapter to promote the public health and general welfare by authorizing the incorporation in the several counties in this state of public corporations to acquire, enlarge, improve, expand, own, operate, lease, and dispose of properties to the end that such corporations may be able to promote public interest and participation in sports, athletics, and recreational activities and to provide or improve public parks in this state, including all buildings, facilities, and improvements incident thereto or useful in connection therewith. It is the further intent of the Legislature by the passage of this chapter to vest such public corporations with all powers that may be necessary to enable them to accomplish such purposes. This chapter shall be liberally construed in conformity with the said intention.
*(Acts 1975, 3rd Ex. Sess., No. 139, §1.)*
##### **§ 11-22-3** Application for Authority to Incorporate; Resolution of Approval; Incorporation of More Than One Corporation {#sec-11-22-3 omnilex-key=us-al-statutes--title-11--11-22-3}
Whenever any number of natural persons, not less than three, shall file with the governing body of any county of this state an application in writing for authority to incorporate in such county a public corporation under the provisions of this chapter, and shall set forth in said application a brief description of the project to be acquired or improved by such corporation, and if it shall be made to appear to such governing body that each of said persons is a duly qualified elector of and owner of property in said county and if the governing body of said county shall adopt a resolution which shall be duly entered upon the minutes of such governing body wherein it shall be found and determined that there is a public need for the proposed project, that it is wise, expedient, necessary, or advisable that such a corporation be formed and that the persons filing said application shall be authorized to proceed to form such corporation, then said persons shall proceed to organize such corporation by executing, acknowledging, and filing a certificate of incorporation as herein provided. No corporation shall be formed unless the application provided for herein shall be made and unless the resolution provided for herein shall be adopted; provided, that the inadequacy of the description of the proposed project in the application for incorporation shall not affect the validity of the incorporation of such corporation. The granting of authority for the incorporation of one public corporation under this chapter shall not preclude the granting of authority by the governing body of the same county for the incorporation of other public corporations hereunder; provided, that such other public corporations shall be required to adopt a name or designation sufficient to distinguish them from any public corporation theretofore incorporated by such county under this chapter.
*(Acts 1975, 3rd Ex. Sess., No. 139, §3.)*
##### **§ 11-22-4** Certificate of Incorporation - Contents; Execution {#sec-11-22-4 omnilex-key=us-al-statutes--title-11--11-22-4}
(a) The certificate of incorporation of any corporation organized under this chapter shall set forth:
(1) The names of the applicants, together with a recital that each of them is an elector of and taxpayer in the county;
(2) The name of the corporation, which shall be “the public park and recreation board of _____ County” (the blank space to be filled in with the name of the county), if such name shall be available for use by the corporation and if not available, or if the incorporators desire some other name, then the incorporators shall designate some other similar name that is available;
(3) A recital that permission to organize the corporation has been granted by a resolution duly adopted by the governing body of the county and the date of the adoption of such resolution;
(4) The location of the principal office of the corporation (which shall be in the county);
(5) The purposes for which the corporation is proposed to be organized, which purposes shall be those set forth in the application for authority to incorporate;
(6) The number of directors of the corporation (which shall be not less than three);
(7) The period for the duration of the corporation (if the duration is perpetual, the fact should be stated); and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this chapter or with the laws of the State of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Alabama to take acknowledgments to deeds.
*(Acts 1975, 3rd Ex. Sess., No. 139, §4.)*
##### **§ 11-22-5** Certificate of Incorporation - Filing and Recording {#sec-11-22-5 omnilex-key=us-al-statutes--title-11--11-22-5}
When executed and acknowledged in conformity with Section 11-22-4, the certificate of incorporation shall be filed with the judge of probate of the county. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-22-4 have been complied with and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office. When such certificate has been so made, filed, and approved, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
*(Acts 1975, 3rd Ex. Sess., No. 139, §5.)*
##### **§ 11-22-6** Certificate of Incorporation - Amendments {#sec-11-22-6 omnilex-key=us-al-statutes--title-11--11-22-6}
If any corporation formed under this chapter has accidentally or inadvertently failed to comply with the requirements hereof in its organization, such omission or defect may be corrected by filing an amendment as provided in this section. The certificate of incorporation of any corporation formed under this chapter may also at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance. Any amendment shall be effected in the following manner: The members of the board of directors of the corporation shall file with the governing body of the county an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary, and advisable that the proposed amendment be made, and if an additional project or projects are proposed, that there is a public need therefor, and shall approve the form of the proposed amendment and shall authorize the amendment to be made, then the persons making such application shall execute an instrument embodying the amendment specified in such application and shall file the same with the judge of probate of the county. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. When such amendment has been so made, filed and approved, it shall thereupon become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.
*(Acts 1975, 3rd Ex. Sess., No. 139, §6.)*
##### **§ 11-22-7** Board of Directors {#sec-11-22-7 omnilex-key=us-al-statutes--title-11--11-22-7}
The corporation shall have a board of directors in which all powers of the corporation shall be vested and which shall consist of any number of directors, not less than three, all of whom shall be duly qualified electors of and taxpayers in the county. The directors shall serve as such without compensation; except, that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties hereunder. No director shall be an officer or employee of the county. The directors shall be elected by the governing body of the county, and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the county shall divide the directors into three groups containing as nearly equal whole numbers as may be possible. The first term of the directors included in the first group shall be two years, the first term of the directors included in the second group shall be four years, the first term of the directors included in the third group shall be six years, and thereafter the terms of all directors shall be six years; provided, that if at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected. Any meeting held by the board of directors for any purpose whatsoever shall be open to the public.
*(Acts 1975, 3rd Ex. Sess., No. 139, §7.)*
##### **§ 11-22-8** Powers Generally; Projects Partially Within County {#sec-11-22-8 omnilex-key=us-al-statutes--title-11--11-22-8}
(a) The corporation shall have the following powers together with all powers incidental thereto or necessary for the performance of those hereinafter stated:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as hereinafter provided;
(2) To sue and be sued and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties;
(3) To have and to use a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise, to improve, maintain, equip, furnish, own, and operate one or more projects, including all real and personal properties which the board of directors of the corporation may deem necessary in connection therewith and regardless of whether or not any such projects or any part thereof shall then be in existence;
(5) To fix, prescribe and collect rates, fees, tolls, charges, or rentals for the use of any of its facilities and for services, facilities, and accommodations furnished by it or any of its facilities;
(6) To adopt and enforce rules and regulations relative to the use or occupancy of any of its facilities or services;
(7) To promote, sponsor, and operate tournaments, shows, exhibitions, exhibits, athletic events, and educational, cultural, recreational, amusement and other activities;
(8) To sell, exchange, and convey, to contract to sell, exchange, and convey and to grant options to acquire any or all of its properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the corporation was organized;
(9) To lease to others for a period not to exceed 40 years any or all of its projects or any part thereof, including public accommodation facilities and to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof;
(10) To grant privileges, licenses, concessions, or permits for the operation of any of its public accommodation facilities;
(11) To lease land to others for a period not to exceed 40 years, or to grant to others privileges, licenses, or permits for the use of land for the construction and operation of public accommodation facilities and to authorize such lessees or grantees to mortgage their interest, rights, and properties to finance the construction, enlargement, and improvement of such public accommodation facilities;
(12) To issue its bonds for the purpose of carrying out any of its powers;
(13) As security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, to mortgage and pledge any or all of its projects or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof;
(14) To assume obligations secured by a lien on, or payable out of or secured by a pledge of, the revenues and receipts from any or all of its projects, or any part thereof that may be acquired, and obligation so assumed to be payable solely out of the revenues and receipts from any or all of its projects, or part thereof;
(15) To appoint, employ, contract with, and provide for the compensation of such officers, employees, and agents, including but without limitation engineers, attorneys, architects, construction contractors, management consultants, and fiscal advisers as its business may require;
(16) To provide for such insurance as the board of directors may deem advisable;
(17) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any municipality, county, public corporation, or other public entity in the state, any person or any combination of any of the foregoing;
(18) To enter into a management agreement or agreements with any person or corporation for the management of any or all of its projects or part thereof; and
(19) To accept gifts, grants, bequests, and devises.
(b) Any project or projects of the corporation may be located within or partially within and partially without the county, subject to the following conditions:
(1) No part of a project shall be located more than 30 miles outside the boundaries of the county;
(2) In no event shall any project or part thereof be located within the corporate limits of a municipality unless the governing body of such municipality has first adopted a resolution consenting to the location of such project or part thereof in such municipality; and
(3) No such project or part thereof shall be located in a county other than the county which authorized the formation of the corporation unless the governing body of such other county has first adopted a resolution consenting to the location of such project or part thereof in such county.
*(Acts 1975, 3rd Ex. Sess., No. 139, §8.)*
##### **§ 11-22-9** Bond Issues - Funds for Payment; Execution; Form; Redemption; Sale; Refunding; Negotiable Instruments {#sec-11-22-9 omnilex-key=us-al-statutes--title-11--11-22-9}
(a) All bonds issued by the corporation shall be payable solely out of the revenues and receipts derived from the operation, leasing or sale by the corporation of its projects or of any thereof as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued.
(b) Such bonds may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable at such time or times not exceeding 40 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the corporation and in such manner and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued.
(c) If deemed advisable by the board of directors, there may be retained in the proceedings under which any bonds of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of the bonds, but nothing herein contained shall be construed to confer on the corporation any right to redeem any bonds except as may be provided in the proceedings under which they shall be issued.
(d) Any bonds of the corporation may be sold at public or private sale in such manner and from time to time as may be determined by the board of directors of the corporation to be most advantageous, and the corporation may pay all expenses, premiums and commissions which its board of directors may deem necessary or advantageous in connection with the issuance thereof.
(e) Issuance by the corporation of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, but the proceedings whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
(f) Any bonds of the corporation at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding bonds in such amount as the board of directors may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums, commissions and expenses necessary to be paid in connection with such refunding. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby, or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded, and regardless of whether or not the bonds to be refunded were issued in connection with the same projects or separate projects, and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
(g) All such bonds and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
*(Acts 1975, 3rd Ex. Sess., No. 139, §9.)*
##### **§ 11-22-10** Bond Issues - Securing of Principal and Interest; Mortgages and Deeds of Trust; Default {#sec-11-22-10 omnilex-key=us-al-statutes--title-11--11-22-10}
The principal of and interest on any bonds issued by the corporation shall be secured by a pledge of the revenues and receipts out of which the same shall be made payable and may be secured by mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made. The resolution under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of fees, rates, tolls and charges for the services, facilities and accommodations furnished by the corporation and of the rents for any portion thereof leased by the corporation to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, all as the board of directors shall deem advisable and which are not in conflict with the provisions hereof. Each pledge, agreement, mortgage or deed of trust made for the benefit or security of any of the bonds of the corporation shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid. In the event of default in such payment or in any agreements of the corporation made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage or deed of trust executed as security therefor, such payment or agreement may be enforced by mandamus, the appointment of a receiver or by foreclosure of any such mortgage or deed of trust, or any one or more of said remedies.
*(Acts 1975, 3rd Ex. Sess., No. 139, §10.)*
##### **§ 11-22-11** Bond Issues - Notice of Authorization of Issuance; Contesting of Validity {#sec-11-22-11 omnilex-key=us-al-statutes--title-11--11-22-11}
Upon the adoption by the board of directors of any resolution providing for the issuance of bonds, the corporation may, in its discretion, cause to be published once a week for two consecutive weeks, in a newspaper published in the county, a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of the corporation:
“_____, a public corporation under the laws of the State of Alabama, on the ____ day of _____, authorized the issuance of $_____ principal amount of revenue bonds of the said corporation for purposes authorized in the act of the Legislature of Alabama under which the said corporation was organized. Any action or proceeding questioning the validity of the said bonds, or the pledge and mortgage or deed of trust to secure the same, or the proceedings authorizing the same, must be commenced within 20 days after the first publication of this notice.”
Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of any such bonds or the validity of the pledge and mortgage or deed of trust made therefor must be commenced within 20 days after the first publication of such notice. After the expiration of the said period no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds, or the said pledge or mortgage or deed of trust shall be asserted, nor shall the validity of the said proceedings or of the said bonds or the said pledge or mortgage or deed of trust be open to question in any court on any ground whatsoever except in an action commenced within such period.
*(Acts 1975, 3rd Ex. Sess., No. 139, §11.)*
##### **§ 11-22-12** Temporary Borrowing {#sec-11-22-12 omnilex-key=us-al-statutes--title-11--11-22-12}
The corporation may, in addition to the other powers granted in this chapter, borrow money for temporary use for any of its corporate purposes and in evidence of such borrowing issue from time to time revenue bonds or notes maturing not later than 18 months from date of issuance. Any such temporary borrowing may be made in anticipation of the sale and issuance of long-term bonds, and in such event the principal proceeds from the sale of such long-term bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary bonds or notes issued in anticipation of the sale and issuance of such long-term bonds. Any such temporary borrowing may also be made with respect to a project simultaneously with or after the sale and issuance of long-term bonds issued with respect to such project if, under the terms of the proceedings under which such long-term bonds are issued, the proceeds therefrom or any part thereof may not be used or released until completion of the project with respect to which issued or other similar contingency. In such case, the principal proceeds from the long-term bonds shall, when released and to the extent necessary, be applied for payment of the principal of and the interest on such temporary bonds or notes.
*(Acts 1975, 3rd Ex. Sess., No. 139, §12.)*
##### **§ 11-22-13** Tax Exemptions {#sec-11-22-13 omnilex-key=us-al-statutes--title-11--11-22-13}
The corporation, the property and income of the corporation, all bonds issued by the corporation, the income from such bonds, conveyances by or to the corporation and leases, mortgages and deeds of trust by or to the corporation shall be exempt from all taxation in the State of Alabama. No sales, use, license or excise tax may be imposed on any corporation in respect of the privilege of engaging in any of the activities authorized by this chapter.
*(Acts 1975, 3rd Ex. Sess., No. 139, §13.)*
##### **§ 11-22-14** Liability of County {#sec-11-22-14 omnilex-key=us-al-statutes--title-11--11-22-14}
The county shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation, or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the county within the meaning of any constitutional or statutory provisions whatsoever.
*(Acts 1975, 3rd Ex. Sess., No. 139, §14.)*
##### **§ 11-22-15** Nonprofit Status; Disposition of Surplus Revenue {#sec-11-22-15 omnilex-key=us-al-statutes--title-11--11-22-15}
The corporation shall be a nonprofit corporation, and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation; except, that in the event the board of directors of the corporation shall determine that sufficient provision has been made for the full payment of expenses, bonds and other obligations of the corporation, then any net earnings of the corporation thereafter accruing shall, at the option of the board of directors, be used to pay the cost of extensions and improvements to any of its projects or paid to the county with respect to which the corporation was organized.
*(Acts 1975, 3rd Ex. Sess., No. 139, §15.)*
##### **§ 11-22-16** Dissolution {#sec-11-22-16 omnilex-key=us-al-statutes--title-11--11-22-16}
(a) Whenever the board of directors of the corporation shall by resolution determine that the purposes for which the corporation was formed have been substantially complied with and all bonds theretofore issued and all obligations theretofore incurred by the corporation have been fully paid, the then members of the board of directors of the corporation shall thereupon execute and file for record in the office of the judge of probate of the county in which the corporation is organized a certificate of dissolution reciting those facts and declaring the corporation to be dissolved. The certificate of dissolution shall be executed under the corporate seal of the corporation. Upon the filing of the certificate of dissolution, the corporation shall stand dissolved, the title to all funds and properties owned by it at the time of dissolution shall vest in the county, and possession of the funds and properties of the board shall forthwith be delivered to the county.
(b)(1) In addition to the procedures provided in subsection (a), any corporation organized under this chapter composed of property originally acquired by a corporation organized under Chapter 18, and located entirely within the corporate limits of a municipality, by a majority vote of the governing body of the municipality and adoption of a resolution by the county commission, may be ordered to be dissolved, transferred, and merged with the municipality.
(2) Within 90 days after the approval of the dissolution by the municipality and the county, the corporation shall transfer all funds, assets, and title to real property owned by the corporation to the municipality. Upon the transfer, all funds, assets, real property, and liabilities of the corporation shall vest in the municipality and all employees of the corporation existing at the time of the transfer shall become employees of the municipality.
(3) After the transfer of the assets of the corporation to the municipality, a certificate of dissolution declaring the corporation to be dissolved shall be filed with the judge of probate of the county in which the corporation was organized and the corporation shall stand dissolved.
(4) A separate contract may be executed prior to the dissolution by the corporation and the governing body of the municipality providing for the orderly transfer of the assets, liabilities, and employees of the corporation to the municipality prior to dissolution.
*(Acts 1975, 3rd Ex. Sess., No. 139, §16; Act 2021-169, §1.)*
##### **§ 11-22-17** Recordation of Instruments {#sec-11-22-17 omnilex-key=us-al-statutes--title-11--11-22-17}
The certificate of incorporation of the corporation or any amendment thereof, any deeds or other documents whereby properties are conveyed over to the corporation, any mortgages or deeds of trust or leases executed by the corporation and the certificate of dissolution of the corporation may all be filed for record in the office of the judge of probate of the county in which the corporation is organized without the payment of any tax or fees other than such fees as may be authorized by law for recording of such instruments.
*(Acts 1975, 3rd Ex. Sess., No. 139, §17.)*
##### **§ 11-22-18** Construction of Chapter {#sec-11-22-18 omnilex-key=us-al-statutes--title-11--11-22-18}
Neither this chapter nor anything herein contained shall be construed as a restriction or limitation upon any powers which the corporation might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers. No proceeding, notice, or approval shall be required for the organization of the corporation or the issuance of any bonds or any instrument as security therefor, except as is provided in this chapter, any other law to the contrary notwithstanding; provided, that nothing herein shall be construed to deprive the state and its governmental subdivisions of their respective police powers over any properties of the corporation, or to impair any power thereover of any official or agency of the state and its governmental subdivisions which may be otherwise provided by law.
*(Acts 1975, 3rd Ex. Sess., No. 139, §18.)*
##### **§ 11-22-19** Transfer of Assets from Other Public Corporations {#sec-11-22-19 omnilex-key=us-al-statutes--title-11--11-22-19}
Any public corporation organized pursuant to the provisions of any other law of this state may, either with or without the payment of pecuniary consideration, transfer, assign, or convey all or any part of its assets, including, but without limitation, land, interests in land, improvements, buildings, structures, roads, utility facilities, cash, and any facilities which would be a part of a project, to any corporation organized pursuant to the provisions of this chapter, and any corporation so organized under the provisions of this chapter is authorized to assume any obligation or indebtedness of any such other public corporation making such a conveyance, transfer, or assignment; provided, that such indebtedness is payable solely out of the revenues and income of a project or of the facilities and assets so transferred, assigned, or conveyed.
*(Acts 1975, 3rd Ex. Sess., No. 139, §19.)*
### **Chapter 23** Industrial Parks
##### **§ 11-23-1** Authority of County Commissions to Establish; Written Approval of Owners Required; Petition for Designation {#sec-11-23-1 omnilex-key=us-al-statutes--title-11--11-23-1}
Subject to the written approval of the owners of 100 percent in interest based on assessed value for ad valorem tax purposes of each 10 acres, or the part thereof to be included in the proposed industrial park, the county commission of any county in the State of Alabama may establish industrial parks composed of territory wholly within the county boundaries and without the boundaries of any municipality. Any person, firm, or corporation who desires to obtain a designation of an area as an industrial park shall file a petition with the county commission of the county wherein the property is located requesting that the county commission designate the area proposed as an industrial park, and include with such petition the consent of the land owners as above required. The consent of each consenting owner shall be acknowledged before a notary public or other person authorized to take acknowledgements to deeds in Alabama.
*(Acts 1978, No. 604, p. 858, §1.)*
##### **§ 11-23-2** Land Which May Be Included {#sec-11-23-2 omnilex-key=us-al-statutes--title-11--11-23-2}
An industrial park may include any compact body of land which is used exclusively for industrial purposes or which is primarily suited for industrial development.
*(Acts 1978, No. 604, p. 858, §2.)*
##### **§ 11-23-3** Public Hearing Required; Resolution of Designation by County Commission; Filing of Maps, Etc {#sec-11-23-3 omnilex-key=us-al-statutes--title-11--11-23-3}
Before any designation is made of an industrial park or any change is made of the boundaries of an existing one, the county commission shall hold not less than one public hearing thereon. The county commission shall give notice of the purpose, time and place of the public hearing by one publication in a newspaper of general circulation throughout the county not less than 10 days prior to the date set for the hearing. The designation of an industrial park or any change of the boundaries of an existing one shall be by resolution of the county commission. The resolution shall refer expressly to the map or maps and descriptive and other matter related to the industrial park, and the action taken by the county commission shall be recorded on the map or maps and descriptive and other matter by the identifying signature of the presiding officer of the county commission. Certified copies of the map or maps and descriptive and other matter shall be filed with the county commission and with the clerk of probate court.
*(Acts 1978, No. 604, p. 858, §3.)*
##### **§ 11-23-4** Restrictions on Use of Land Following Designation; Enforcement of Restrictions {#sec-11-23-4 omnilex-key=us-al-statutes--title-11--11-23-4}
Whenever a county commission has designated an industrial park or has made a change of the boundaries of an existing one and has filed certified copies thereof as provided in Section 11-23-3, no facilities shall be thereafter located therein that are not industrial in character or reasonably related thereto; provided, that no construction or installation permits shall be required, but the county commission may resort to judicial process to enforce such industrial requirements.
*(Acts 1978, No. 604, p. 858, §4.)*
##### **§ 11-23-5** Bylaws Governing Industrial Park and Listing Facilities to Be Furnished {#sec-11-23-5 omnilex-key=us-al-statutes--title-11--11-23-5}
The person, firm, or corporation that files a petition with the county commission seeking to have land designated as an industrial park may file with the probate judge of the county in which the land is located, a set of bylaws governing the industrial park and listing the facilities to be furnished by the governing body of the industrial park.
*(Acts 1978, No. 604, p. 858, §5.)*
##### **§ 11-23-6** Certain Services to Be Provided by Industries Within Industrial Park; Contracts with County or Municipalities for Services; Industrial Parks Not Subject to Annexation or Police Jurisdiction of Municipalities; Jurisdiction of County Sheriff and Courts; Public Road Access Required {#sec-11-23-6 omnilex-key=us-al-statutes--title-11--11-23-6}
(a) Those industries located within the boundaries of any industrial park shall each privately furnish and maintain upon their own premises within the area of their individual facilities, or the industries located within the boundaries of any industrial park or governing body of any industrial park shall furnish and maintain individually or as a group, the following services usually provided by county or local governments:
(1) The construction and cleaning of streets;
(2) Street lighting;
(3) Sewers and sewerage works;
(4) Water service;
(5) Fire protection;
(6) Garbage and refuse collection and disposal;
(7) Police protection; and
(8) Wharf and dock facilities, where applicable.
(b) Agreements between the industries located within the boundaries of an industrial park and the county commission and/or any municipality or municipalities located nearby may be made for mutual police and fire protection, water service or any other service. No industrial park shall be subject to municipal annexation, nor shall it be considered as a part of the police jurisdiction of any municipality. All industrial parks shall be subject to the jurisdiction of the sheriff and courts of the county in which they are located in the same manner that cities and towns are subject to such jurisdiction.
(c) All industrial parks so created shall include provision for access by public road to any and all entrances to the premises of each and every plant in such area which entrances are provided for use by employees of such company, or for use by employees of independent contractors working on such premises, or for delivery of materials or supplies, other than by rail or water transportation to such premises.
*(Acts 1978, No. 604, p. 858, §6.)*
##### **§ 11-23-7** Abolition of Industrial Park or Removal of Territory Therefrom {#sec-11-23-7 omnilex-key=us-al-statutes--title-11--11-23-7}
The county commission may abolish an industrial park or remove a portion of the territory from an industrial park if (1) the industries located therein request the abolishment of the industrial park or the removal of a portion of the territory from an industrial park; or (2) the property or a portion of the property within the industrial park ceases to be used for industrial park purposes. The county commission may abolish an industrial park or remove a portion of the territory from an industrial park only by resolution adopted after not less than one public hearing on the question. The resolution of a county commission to abolish an industrial park or remove a portion of the territory from an industrial park shall be effective 30 days after the resolution is adopted by the county commission; provided, that no resort to the courts is taken challenging such action prior to the expiration of such 30 days by a property owner within the area affected. If such action is taken by a property owner, the resolution of the county commission shall be effective only when a judgment adverse to the property owner has been rendered and is final, executory, and definitive. The results of any final action taken under this section which in any way alters the boundaries of the industrial park shall be filed with the clerk of probate court.
*(Acts 1978, No. 604, p. 858, §7.)*
##### **§ 11-23-8** Rights and Responsibilities of County Not Limited by Creation of Industrial Park {#sec-11-23-8 omnilex-key=us-al-statutes--title-11--11-23-8}
When an industrial park has been created, such action shall not limit or diminish the rights and responsibilities of the county commission concerning the industrial park. The county commission shall retain the right to tax the industrial park as it does all other areas of the county.
*(Acts 1978, No. 604, p. 858, §8.)*
### **Chapter 24** Regulation of Subdivisions
##### **§ 11-24-1** Definitions; Regulation of Lots, Streets, Drainage, Utilities, Etc.; Developer to Reimburse Utility for Uneconomical Placement {#sec-11-24-1 omnilex-key=us-al-statutes--title-11--11-24-1}
(a) When used in this chapter, the following words shall have the following meanings:
(1) COUNTY. A political subdivision of the state created by statute to aid in the administration of government.
(2) COUNTY COMMISSION. The chief administrative or legislative body of the county.
(3) STREETS. Streets, avenues, boulevards, roads, lanes, alleys, viaducts, and other roads.
(4) SUBDIVISION. The development and division of a lot, tract, or parcel of land into two or more lots, plats, sites, or otherwise for the purpose of establishing or creating a subdivision through the sale, lease, or building development. Development includes, but is not limited to, the design work of lot layout, the construction of drainage structures, the construction of buildings or public use areas, the planning and construction of public streets and public roads, and the placement of public utilities. A subdivision does not include the construction or development of roads or buildings on private property to be used for agricultural purposes.
(b) The county commission or like governing body of each county in the state shall be authorized to regulate the minimum size of lots, the planning and construction of all public streets, public roads, and drainage structures and require proper placement of public utilities to be located in proposed subdivisions of land or in proposed additions to subdivisions of land existing at the time of the enactment of this chapter where the subdivisions are situated outside the corporate limits of any municipality in the county. The placement of public utilities shall not be inconsistent with the requirements of the Southern Standard Building Code, state and federal laws, and regulations of state and federal regulatory agencies. If the county commission or like governing body of any county shall require the placement of public utility facilities in any subdivision or addition thereto in a manner which is other than the most economical method available from an engineering standpoint, then the developer of the subdivision or addition shall reimburse the utility for the difference in cost between the method so required by the county governing body and the most economical method available.
(c) The county commission or like governing body of each county in the state may establish a board of developers to make suggestions to the commission regarding the development and division of subdivisions. The board may advise the commission on the contents of the regulations, revisions that need to be made to the regulations, and assist in resolving disputes between the commission and developers.
*(Acts 1979, No. 79-553, p. 1002, §1; Acts 1997, No. 97-422, p. 718, §1.)*
##### **§ 11-24-2** Submission, Review, and Approval of Plats; Permit {#sec-11-24-2 omnilex-key=us-al-statutes--title-11--11-24-2}
**AMENDED BY ACT 2026-49, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) It shall be the duty of the owner and developer of each subdivision to have all construction completed in conformity with this chapter and, prior to beginning any construction or development, to submit the proposed plat to the county commission for approval and obtain a permit to develop as required in this section. The permit to develop shall be obtained before the actual sale, offering for sale, transfer, or lease of any lots from the subdivision or addition to the public, it must include a plan to deliver utilities including water, and shall only be issued upon approval of the proposed plat by the county commission. As a condition for the issuance of a permit, the county commission may require any of the following for approval of the proposed plat:
(1) The filing and posting of a reasonable surety bond with the county commission by the developers of the proposed subdivisions or proposed additions to guarantee the actual construction and installation are in accordance with approved plans for public streets, public roads, drainage structures, and public utilities.
(2) The names and addresses of each adjoining landowner and utility subject to the notice as provided in subsection (b).
(3) A permit fee, which shall not exceed twenty-five dollars ($25).
(b) No proposed plat shall be approved or disapproved by the county commission without first being reviewed by the county engineer or his or her designee. Following the review, the county engineer or his or her designee shall certify to the commission whether the proposed plat meets the county’s regulations. If the proposed plat meets the regulations, it shall be approved by the commission. Should the proposed plat be determined by the county engineer to be deficient in any regard, the county engineer shall detail the deficiency to the county commission along with a recommendation that it be disapproved. Notice of the recommendation of the engineer shall be sent to the owner or developer whose name and address appears on the submitted proposed plat by registered or certified mail at least 10 days before the recommendation shall be presented to the county commission for action. A similar notice shall be mailed to the owners of land immediately adjoining the platted land as their names appear upon the plats in the office of the county tax assessor and their addresses appear in the directory of the county or on the tax records of the county and to each utility affected thereby. Each utility notified in writing by the commission shall be given at least 10 days to review the proposed plat and submit a written report to the commission as to whether all provisions affecting the service to be provided by the utility are reasonable and adequate. If any utility affected by the proposed plat is not properly notified then the approval or disapproval by the county commission shall not be valid until the affected utility has been given at least 10 days’ notice prior to such approval or disapproval as provided by this subsection.
(c) In addition to the foregoing, once the owner or developer of all proposed subdivisions or proposed additions to existing subdivisions of land situated outside the corporate limits of any municipality in the county has met all requirements of the county’s regulations, he or she shall submit the final plat of the developed subdivision or addition to existing subdivision to the county engineer for signature verifying that the subdivision or addition to existing subdivision meets the county’s regulations. After the final plat has been signed by the county engineer, it shall be filed for record or received for filing in the office of the judge of probate. Subject to the penalties set out in Section 11-24-3, it shall be a violation of this chapter for the developer to file or to have filed any plat, deed, property description, or document of property transfer without full compliance with this section.
(d) Notwithstanding the provisions of subsections (a), (b), and (c), this section shall not apply to the sale, deed, or transfer of land by the owner to an immediate family member, except that, in the event that there is any sale, deed, or transfer of land by the owner or an immediate family member to someone other than an immediate family member, this chapter shall then apply to any subdivision of property as defined in subdivision (4) of subsection (a) of Section 11-24-1.
*(Acts 1979, No. 79-553, p. 1002, §2; Acts 1997, No. 97-422, p. 718, §1; Act 2006-227, p. 390, §1.)*
##### **§ 11-24-2.1** Developer Authorized to Secure Pre-sale Agreements for Proposed Subdivision Development {#sec-11-24-2.1 omnilex-key=us-al-statutes--title-11--11-24-2.1}
(a) Notwithstanding the provisions of Section 11-24-2, the developer may obtain authorization from the county engineer to secure pre-sale agreements from prospective buyers of property included in a proposed subdivision development prior to obtaining the permit to develop if the developer establishes to the satisfaction of the county engineer that: (1) the developer has a preliminary plan for the subdivision development that is likely to be approved under the county’s subdivision regulations and (2) the developer has explained to the satisfaction of the county engineer the reasons for requesting authorization to secure pre-sale agreements.
(b) Upon receiving authorization from the county engineer for the developer to secure pre-sale agreements as provided in subsection (a), the developer shall notify the county engineer in writing when financing has been obtained, and if no such notification is received within six months of the date the authority is granted, the authority shall be revoked by the operation of law and any further efforts on the part of the developer to secure pre-sale agreements shall be a violation of this chapter punishable by fines as set out in Section 11-24-3. The developer may request from the county engineer an extension of the time set forth herein for notification in order to allow the developer additional time to secure pre-sale agreements; provided that no pre-sale agreements may be entered into following the six-month time period until and unless an extension has been granted.
(c) Any pre-sale agreements secured by the developer under authority of this section shall clearly state that any final sale of the property shall not take place until and unless the developer has obtained a permit to develop pursuant to the requirements of Section 11-24-2. Any pre-sale agreements executed in violation of this chapter shall be punishable by fines as set out in Section 11-24-3. Additionally, the failure to comply with this section shall result in the county engineer revoking the authority granted to secure pre-sale agreements for the proposed development.
(d) The authorization to secure pre-sale agreements from prospective buyers of property included in a proposed subdivision development prior to obtaining the permit to develop as provided in this section shall in no way affect the developer’s requirement to comply with the county’s subdivision regulations and, in particular, to obtain the permit to develop as provided in Section 11-24-2 prior to the actual sale, offering for sale, transfer, or lease of any lots from the subdivision except as specifically authorized in this section.
*(Act 2014-332, p. 1226, §2.)*
##### **§ 11-24-3** Fines; Injunctions; Inspections; Enforcement of Chapter {#sec-11-24-3 omnilex-key=us-al-statutes--title-11--11-24-3}
(a) Any owner or developer failing to comply with the permitting requirement or otherwise violating this chapter or any rule or regulation made pursuant to this chapter shall be fined one thousand dollars ($1,000) per lot that has been sold, offered for sale, transferred, or leased to the public.
(b) In the event that the developer or owner fails to comply with this chapter, the county commission shall have the right to enjoin action of the developer or owner by a civil action for the injunction brought in any court of competent jurisdiction or, in the event that work on the subdivision has been completed, to bring action to compel the developer or owner to comply with this chapter. In addition to injunction, the county commission may recover the penalty as provided by this section in any court of competent jurisdiction.
(c) The county commission may employ inspectors and may request the county license inspector to see that its rules and regulations are not violated and that the plans and specifications for the minimum size of lots, the planning and construction of public streets, public roads, and drainage structures, and the placement of public utilities are not in conflict with the rules and regulations of the county. The county commission may charge inspection fees, not to exceed actual costs, to be paid by the owners of the property inspected.
(d) This chapter may be enforced by the county license inspector under Section 40-12-10, including issuing citations as provided in subsection (j) of Section 40-12-10 for failure to properly obtain the permit to develop required pursuant to subsection (a) of Section 11-24-2. The license inspector may issue subsequent citations for failure to properly obtain a permit to develop if, after 30 days following the issuance of the previous citation for the same violation, the owner or developer of the subdivision has not made proper application for a permit pursuant to the requirements of this chapter. The applicable fines set out in subsection (a) shall be doubled and separately assessed against the owner or developer of the subdivision for each subsequent citation issued by the license inspector as provided herein.
*(Acts 1979, No. 79-553, p. 1002, §3; Acts 1997, No. 97-422, p. 718, §1; Act 2006-227, p. 390, §1.)*
##### **§ 11-24-4** Chapter Not to Impair Utilities Right of Eminent Domain, Etc {#sec-11-24-4 omnilex-key=us-al-statutes--title-11--11-24-4}
This chapter shall not be construed to impair the right of eminent domain granted heretofore or hereafter by the laws of this state to utilities, whether public or private, or their right to exercise authority conferred by statutes, franchises, certificates of convenience and necessity, licenses, or easements.
*(Acts 1979, No. 79-553, p. 1002, §4.)*
##### **§ 11-24-5** No Jurisdiction Within That of Organized Municipal Planning Commission {#sec-11-24-5 omnilex-key=us-al-statutes--title-11--11-24-5}
*[Repealed]*
Repealed by Act 2012-297, §4, effective October 1, 2012.
*(Acts 1979, No. 79-553, p. 1002, §5.)*
##### **§ 11-24-6** County and Municipality Agreement as to Exercise of Jurisdiction {#sec-11-24-6 omnilex-key=us-al-statutes--title-11--11-24-6}
It is the intent of the Legislature that all proposed subdivisions be subject to regulation, and counties and municipalities affected by provisions of this chapter shall have authority to reach and publish agreement as to exercise of jurisdictional authority over proposed subdivisions, which agreement shall be published once a week for two consecutive weeks in a newspaper of general circulation in the county and affected municipality and such agreement shall thereafter have the force and effect of law.
*(Acts 1979, No. 79-553, p. 1002, §6.)*
##### **§ 11-24-7** Chapter Cumulative; Not to Repeal Any Local Laws {#sec-11-24-7 omnilex-key=us-al-statutes--title-11--11-24-7}
The provisions of this chapter are cumulative and shall not repeal any local law or general law of local application granting similar or additional duties and authority to any county commission.
*(Acts 1979, No. 79-553, p. 1002, §7.)*
### **Chapter 25** County Law Libraries
##### **§ 11-25-1** Authorized; Power to Appropriate Space and Funds; Filing of Resolutions {#sec-11-25-1 omnilex-key=us-al-statutes--title-11--11-25-1}
The governing body of each county by resolution thereof shall have the power to establish and maintain a county law library for each courthouse in their respective counties for the use and benefit of the county and state officials, court system, and the public; and shall have the power to appropriate and set aside for the establishment, maintenance, and support of said libraries, such space and funds as it shall deem necessary and appropriate. All resolutions setting up county law libraries shall be filed in the probate office of the county where located and with the Administrative Director of Courts.
*(Acts 1979, No. 79-751, p. 1336, §1.)*
##### **§ 11-25-2** Existing Libraries; Alternative Method of Establishing Libraries; Successors to Property, Funds, Etc {#sec-11-25-2 omnilex-key=us-al-statutes--title-11--11-25-2}
The governing body of each county having county law libraries under existing laws on August 8, 1979, may come under the provisions of this chapter by resolution thereof, upon the request of the presiding circuit judge, and the filing of a copy of said resolution with the Secretary of State and the Administrative Director of Courts. This is an alternative method to the local act method of establishing county law libraries and a county may elect at any time to use either method but may not have a county law library under both methods at the same time. All county law libraries established under the provisions of this chapter shall become owners and successors to all property, funds, and obligations of their predecessors and all property and funds subsequently acquired by the county law libraries.
*(Acts 1979, No. 79-751, p. 1336, §2.)*
##### **§ 11-25-3** County to Furnish Space and Utilities for Libraries; Supplement Budget {#sec-11-25-3 omnilex-key=us-al-statutes--title-11--11-25-3}
In return for the county law libraries serving the legal materials needs of the county and court officials and of the citizens of the county, the county governing body may furnish adequate space and utilities for law libraries established under the provisions of this chapter and may supplement the book and materials budget if it considers such to be needed.
*(Acts 1979, No. 79-751, p. 1336, §3.)*
##### **§ 11-25-4** Municipalities Authorized to Appropriate Funds or Property {#sec-11-25-4 omnilex-key=us-al-statutes--title-11--11-25-4}
Municipal governing bodies may appropriate funds or property to the county law libraries in consideration of said libraries making their facilities and holdings available to the citizens of the municipalities.
*(Acts 1979, No. 79-751, p. 1336, §4.)*
##### **§ 11-25-5** Judge Authorized to Appoint Law Librarian or Custodian {#sec-11-25-5 omnilex-key=us-al-statutes--title-11--11-25-5}
Upon the establishment of a county law library, or the continuance of a present county law library under the provisions of this chapter, the presiding judge of the circuit, or a district or circuit judge designated by him, may appoint a full or part-time county law librarian or custodian.
*(Acts 1979, No. 79-751, p. 1336, §5.)*
##### **§ 11-25-6** Administration of Library; Appointment of Advisory Committee {#sec-11-25-6 omnilex-key=us-al-statutes--title-11--11-25-6}
The presiding circuit judge for the county or county law librarian if one exists, shall administer the county law library and shall disburse the library funds, and shall appoint such librarians and assistants as are necessary for the proper operation of the library. The presiding judge of the circuit shall appoint an advisory committee to the county law library.
*(Acts 1979, No. 79-751, p. 1336, §6.)*
##### **§ 11-25-7** County Law Library Fund; Audit, Use, Etc.; Purchases Exempt from Taxes {#sec-11-25-7 omnilex-key=us-al-statutes--title-11--11-25-7}
Upon the establishment of a county law library under the provisions of this chapter each county shall have and maintain a separate fund known as the County Law Library Fund and may have a separate law library fund for each law library in the county. The county law library funds shall consist of funds appropriated by the state, county, or municipal governments, funds collected under the provisions of law, proceeds from the sale of copies, books, and other materials, or received from donations, gifts, grants, and funds other than those appropriated, and shall be audited as county funds are audited. Said fund may be used to match grants for library purposes. Library funds may be used to pay library personnel. All purchases by or on behalf of such library shall be exempt from all State of Alabama, county, or municipal sales, use, or other similar taxes.
*(Acts 1979, No. 79-751, p. 1336, §7.)*
##### **§ 11-25-8** Power to Receive Gifts, Exchange Books, Etc.; Furnish Services to County and Court Officials Without Cost {#sec-11-25-8 omnilex-key=us-al-statutes--title-11--11-25-8}
County law libraries shall have the power to receive gifts, grants, and to exchange books and materials with other libraries and may furnish the legal needs of books, materials, and copies to the county officials and circuit, probate, and district court officials at no cost.
*(Acts 1979, No. 79-751, p. 1336, §8.)*
##### **§ 11-25-9** Library Fee as Court Cost; Disposition {#sec-11-25-9 omnilex-key=us-al-statutes--title-11--11-25-9}
For the support and maintenance of county law libraries established under the provisions of this chapter a library fee of two dollars shall be paid in all causes and cases of whatever nature in the district and circuit courts of the various counties wherein this law is in effect, to be collected as other court costs are collected and paid at the same time as docket or filing fees are paid. Said library fees shall be paid in all proceedings wherein a docket or filing fee is paid. All of the funds collected under the provisions of this section shall be transmitted to the proper county law library fund by the tenth of each month following their collection.
*(Acts 1979, No. 79-751, p. 1336, §9.)*
##### **§ 11-25-10** Libraries to Receive State Acts and Code {#sec-11-25-10 omnilex-key=us-al-statutes--title-11--11-25-10}
County law libraries shall be on the distribution list of the Secretary of State to receive one set each of the Acts of Alabama and the Code of Alabama and the supplements thereto.
*(Acts 1979, No. 79-751, p. 1336, §10.)*
##### **§ 11-25-11** Network of Law Libraries {#sec-11-25-11 omnilex-key=us-al-statutes--title-11--11-25-11}
The county law libraries are a part of a network of law libraries with the state-supported law libraries, and the non-state-supported law libraries on a voluntary basis, for their mutual benefit.
*(Acts 1979, No. 79-751, p. 1336, §11.)*
##### **§ 11-25-12** Authority to Transfer, Lend, Etc., Books, Materials, Etc {#sec-11-25-12 omnilex-key=us-al-statutes--title-11--11-25-12}
The state, counties, and state agencies have the authority to transfer, sell, give, or lend books, property, and materials to the county law libraries; and said county law libraries have the authority to transfer books, property, and materials to the state, counties, and state agencies, and to other county law libraries in the state on a voluntary basis.
*(Acts 1979, No. 79-751, p. 1336, §12.)*
##### **§ 11-25-13** Disposition of Funds {#sec-11-25-13 omnilex-key=us-al-statutes--title-11--11-25-13}
(a) In any county that has established a county law library fund pursuant to this chapter or pursuant to local act, and in any county which hereafter shall establish a law library fund pursuant to lawful authority, in addition to, and not to supersede, the authority granted to the presiding judge in a judicial circuit by such authority, the presiding circuit judge may authorize the moneys designated for the use of the law library to be expended for any of the following purposes:
(1) The purchase of books, periodicals, equipment, software, hardware, furniture, fixtures, technology, and computers.
(2) The cost of securing advice and attendance of witnesses.
(3) Registration fees and expenses incurred by the judges and court employees when attending seminars, institutions, conferences, and other meetings related to continuing legal education and judicial education. Allowances and reimbursements for expenses incurred by the judges and court employees when attending seminars, institutions, conferences, and other meetings related to continuing legal education and judicial education shall be subject to the same guidelines which apply to the allowances and reimbursements provided to state employees and legislators.
(4) Membership dues in legal and judicial organizations.
(5) Salaries and benefits of court employees where necessary for the efficient operations of the courts of the county. The employees shall not be deemed to be employees of the county commission.
(6) Necessary expenses incurred by the judges in promoting legal and judicial competency.
(7) Necessary expenses of judges and court employees when ordered by the Chief Justice of the state Supreme Court to travel outside their districts or circuits on business.
(8) Funding additional judges as approved.
(9) Other expenses as determined necessary by the presiding circuit court judge to promote the efficient administration of justice.
(b) Expenditures authorized in this section shall be made as provided in Section 11-25-6.
(c) The presiding circuit court judge may sell, exchange, or otherwise dispose of books, periodicals, equipment, and other property of the law library as necessary to keep the library up to date. The presiding judge may use any proceeds from the sale or exchange to purchase new books, periodicals, equipment, or other property for the law library. Any property purchased with such funds as authorized by this subsection shall become the property of the county.
(d) The presiding circuit court judge may designate the district court judge to operate or assist in the operation of the law library.
(e) The moneys in each county law library fund shall be audited in the same manner and at the same time as other county general funds.
(f) Nothing in this section shall require a set sum of money to be expended on maintaining the law library and effectively administering justice, nor shall any county commission be required to fund the maintenance of the law library from funds otherwise available to the county commission.
*(Act 2009-641, p. 1973, §1.)*
### **Chapter 26** Self-Insurance for Compensation, Hospitalization, Etc.; Benefits
##### **§ 11-26-1** Workers’ Compensation Group Authorized; Counties as Qualified Self-Insurers {#sec-11-26-1 omnilex-key=us-al-statutes--title-11--11-26-1}
Any county or group of counties, either individually or collectively, may establish a workers’ compensation self-insurance group for the purpose of providing workers’ compensation benefits for county officials and county employees. Member counties may appropriate such funds as necessary to the workers’ compensation self-insurance group to provide such workers’ compensation benefits. Member counties shall by the terms of this chapter be qualified as self-insurers under Title 25, Chapter 5, as amended generally and Section 25-5-9, specifically and such workers’ compensation group shall be governed by the provisions of Sections 25-5-1 through 25-5-231, as amended.
*(Acts 1981, No. 81-265, p. 348, §1.)*
##### **§ 11-26-2** Health and Accident Group Authorized; Appropriation and Collection of Funds {#sec-11-26-2 omnilex-key=us-al-statutes--title-11--11-26-2}
Any county or group of counties, either individually or collectively, may establish a health and accident self-insurance group for the purpose of providing health care and hospitalization benefits for their officers, employees, and family members dependent upon such officers or employees. Member counties may appropriate such funds as necessary to the health and accident self-insurance group to provide such hospitalization and health care benefits. Member counties may collect from its officers and employees such amounts necessary for dependent family coverage and remit the same to the health and accident self-insurance group.
*(Acts 1981, No. 81-265, p. 348, §2.)*
##### **§ 11-26-3** Compensation Group to Establish Trustees, Bylaws, Schedules, Etc.; Powers Generally {#sec-11-26-3 omnilex-key=us-al-statutes--title-11--11-26-3}
Each workers’ compensation self-insurance group established under the provisions of this chapter shall have the power and authority to establish a governing body of trustees; establish bylaws for the governing of such group; establish a schedule of benefits payable which are consistent with applicable state and federal laws; establish a schedule of charges to be collected from member counties for benefits provided which are consistent with applicable state and federal laws; enter into contracts with solvent insurance companies authorized to do business in this state; enter into management and consultant contracts; hire attorneys and employees; and exercise such other power and authority incident to the purposes of this chapter.
*(Acts 1981, No. 81-265, p. 348, §3.)*
##### **§ 11-26-4** Health and Accident Group to Establish Trustees, Bylaws, Schedules, Etc.; Powers Generally {#sec-11-26-4 omnilex-key=us-al-statutes--title-11--11-26-4}
Each health and accident self-insurance group established under provisions of this chapter shall have the power and authority to establish a governing body of trustees; establish bylaws for the governing of such group; establish a schedule of benefits payable; establish a schedule of charges to be collected from member counties for benefits provided; enter into contracts with solvent insurance companies authorized to do business in this state; enter into management and consultant contracts; hire attorneys and employees; and exercise such powers and authority incident to the purposes of this chapter.
*(Acts 1981, No. 81-265, p. 348, §4.)*
##### **§ 11-26-5** Health and Accident Group to File Bylaws and Schedules with Insurance Commissioner; Group Exempt from Regulation and Tax {#sec-11-26-5 omnilex-key=us-al-statutes--title-11--11-26-5}
Each health and accident self-insurance group established under the provisions of this chapter shall file with the State Insurance Commissioner, a copy of its bylaws and schedule of benefits and charges. Such group, however, shall be exempt from regulation by the Department of Insurance of the State of Alabama and all premiums or charges collected shall be exempt from insurance premium tax.
*(Acts 1981, No. 81-265, p. 348, §5.)*
##### **§ 11-26-6** Construction of Provisions {#sec-11-26-6 omnilex-key=us-al-statutes--title-11--11-26-6}
Sections 11-26-1 and 11-26-3 are supplemental and shall insofar as possible be construed in pari materia with Sections 25-5-1 through 25-5-231, as amended; however, all laws or parts of laws in conflict with the provisions of this chapter are hereby expressly repealed.
*(Acts 1981, No. 81-265, p. 348, §6.)*
### **Chapter 27** Community Antenna Television Facilities
##### **§ 11-27-1** Powers Generally {#sec-11-27-1 omnilex-key=us-al-statutes--title-11--11-27-1}
The county commissions of the several counties in this state are hereby authorized and empowered to grant, by resolution or ordinance, franchises for the installation of poles or conduits within the boundary lines of public roads, highways, or rights-of-way for the operation of community antenna television facilities. Any franchise granted under the provisions of this chapter may be conditioned by reasonable rules and regulations set out in said franchise and said franchise may be revoked for the continued violation of any of said rules and regulations. Said franchises shall only apply in unincorporated areas of any such county at the time of granting said franchise and a franchise may be limited to a portion of said unincorporated area. For the purposes of this chapter the term “community television antenna facility” shall include “cable television” facilities.
*(Acts 1982, 2nd Ex. Sess., No. 82-787, p. 291, §1.)*
##### **§ 11-27-2** Granting of Franchises; Conditions, Revocation, Etc.; Local Law Exception {#sec-11-27-2 omnilex-key=us-al-statutes--title-11--11-27-2}
A franchise is hereby granted for the installation of poles or conduits within the boundary lines of public roads, highways, or rights-of-way in any county of this state for the operation of community antenna television facilities to any person, partnership, or corporation that is lawfully providing community antenna television service in any such county on July 8, 1982. Any franchise granted under this section shall be limited to the portion or portions of the unincorporated areas of any such county as is being served by the franchisee on July 8, 1982, but may be extended to include other portions of the unincorporated areas of the county at the discretion of the county commission of such county. Any franchise granted under this section shall be governed by the permit, agreement, franchise, ordinance, resolution, or other instrument, if any, granting authority by the county to the entity currently providing such service (for the period of time covered by the instrument but not to exceed two years from July 8, 1982) unless the county and the entity mutually agree upon differing terms. At the expiration of the term of such instrument, not to exceed two years after July 8, 1982, or immediately, if no such instrument exists, then a franchise is granted to all portions of the unincorporated areas of such county as are being served by the franchisee on July 8, 1982, (but may be extended to include other portions of the unincorporated areas of the county at the discretion of the county commission of such county) and shall be conditioned upon reasonable rules and regulations to be established by the county commission of the county to which the franchise applies.
Notwithstanding the foregoing, where the franchise area is, at the time of the franchise, served by an existing cable television facility operating without such instrument, the existing cable television facility shall be given the option to continue operation under the franchise, in accordance with the reasonable rules and regulations provided for herein, and no other system shall be given a franchise under terms more favorable than those offered to the existing system, where the existing system is not in violation of the said reasonable rules and regulations.
Said franchise may be revoked for the continued violation of any of said rules or regulations. Provided, however, that prior to such revocation the franchisee shall be given a notice of continued violation and a sixty-day period in which to cure the violations or to make substantial progress toward such cure as shall be determined by the county commission. The reasonable rules and regulations shall not be designed to discriminate against the existing cable television system or used as a device to preclude its continued operation.
The provisions of this section shall not apply to any county for which a local law or general law of local application has been enacted regulating the grant of franchises for the operation of community antenna television facilities. Nothing in this section shall be construed to authorize a county to construct, own, or operate a cable television system or community antenna television facilities.
*(Acts 1982, 2nd Ex. Sess., No. 82-787, p. 291, §2.)*
##### **§ 11-27-3** License Tax {#sec-11-27-3 omnilex-key=us-al-statutes--title-11--11-27-3}
The county commissions of the several counties in this state are hereby authorized and empowered to levy and collect a license tax on the gross revenue, of the community antenna television franchise holder, derived within the area covered by said franchise. The license tax, provided for herein, shall not exceed that percentage of gross revenue set forth by the regulations of the Federal Communications Commission. Counties are the only subdivision of the state entitled to levy such franchise fee in the unincorporated areas of each county.
*(Acts 1982, 2nd Ex. Sess., No. 82-787, p. 291, §3.)*
### **Chapter 28** Warrants for Public Construction
##### **§ 11-28-1** Legislative Intent {#sec-11-28-1 omnilex-key=us-al-statutes--title-11--11-28-1}
It is the intention of the Legislature by the passage of this chapter to authorize each county in the State of Alabama: (i) to sell and issue warrants for the purpose of financing the costs of acquiring, by construction, purchase or otherwise, any public facilities described in Section 11-28-1.1 that such county may be lawfully authorized to acquire at the time of the issuance of such warrants and (ii) to sell and issue warrants for the purpose of refunding any bonds, notes, warrants or other instruments evidencing valid debt at any time incurred or assumed by such county to pay the costs of acquiring such public facilities or to refund debt that, through one or more prior refundings, had been initially incurred for the payment of such costs, it being the intention of this chapter that any debt of such county may be refunded by warrants issued under this chapter irrespective of whether such debt was initially incurred under this chapter or under other provisions of law, whether such debt constituted a general obligation of such county or was a limited obligation payable solely from one or more specified sources, whether such debt was initially incurred by such county or was initially incurred by another public body and thereafter assumed by such county, and whether such debt was incurred or assumed by such county before or after December 21, 1983. This chapter shall be liberally construed in conformity with the intention expressed in the preceding sentence; provided, however, that nothing contained in this chapter shall be construed to give any county new or increased authority to acquire any public facility described in Section 11-28-1.1 beyond the authority with respect to such public facility which such county may have pursuant to laws other than this chapter.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §1; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
##### **§ 11-28-1.1** Definitions {#sec-11-28-1.1 omnilex-key=us-al-statutes--title-11--11-28-1.1}
As used in this chapter, the following words and phrases shall have the following respective meanings, unless the context clearly indicates otherwise:
(1) COSTS. When used with reference to or in connection with any public facility or any portion thereof, include all or any part of the cost of acquiring, constructing, altering, enlarging, extending, reconstructing, or remodeling such public facility, including the cost of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, permits, licenses, and interests acquired or used for, in connection with or with respect to such public facility, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring land to which such buildings or structures may be moved, the cost of all machinery, equipment, furniture, furnishings, and fixtures acquired or used for, in connection with or with respect to such public facility, the cost of architectural, engineering, financial, and legal services incurred in connection with the acquisition or construction of all or any part of such public facility and the financing thereof, including the expenses of preparing plans, specifications, surveys, and studies to determine the financial or engineering feasibility of such public facility, the cost of selling bonds, notes, warrants, or other debt instruments issued to finance such public facility or to refund debt previously incurred for such purpose, including underwriters’ commissions and discounts, printing costs, fees of rating services, fees and disbursements of attorneys, accountants, financial advisors and other consultants, fees and disbursements of trustees and escrow agents, and other incidental expenses, the costs of insurance, letters of credit or other third party commitments for the payment of such bonds, notes, warrants, or other debt instruments obtained in order to enhance the marketability thereof, capitalized interest on money borrowed to pay the costs of such public facility prior to, during and for a period of not exceeding six months following the estimated completion of the acquisition or construction of such public facility, amounts used to fund reserves for the payment of debt service, repair and replacement costs and operating expenses, and such other expenses as may be incident to the acquisition, construction, and financing of such public facility and the placement thereof in operation.
(2) COUNTY. Any county in the State of Alabama.
(3) FEDERAL OBLIGATIONS. (i) Direct general obligations of the United States of America or (ii) obligations the payment of the principal of and interest on which is unconditionally and irrevocably guaranteed by the United States of America.
(4) PLEDGED FUNDS. When used with reference to any warrants issued by any county pursuant to the provisions of this chapter, any taxes, revenues, or other funds pledged pursuant to Section 11-28-3 for the payment of the principal of and interest on such warrants, irrespective of whether such warrants constitute general obligations of such county or limited obligations payable solely from the taxes, revenues, or other funds so pledged.
(5) PUBLIC FACILITIES. When used with reference to or in connection with any county, any or all of the following facilities which such county may at any time have been or be authorized to acquire, by construction, purchase, or otherwise, pursuant to any laws other than this chapter, or facilities that a municipality may have been or be authorized to acquire, including all land and all easements and other rights or interests in land necessary or desirable for such facilities:
a. All courthouses, jails, hospitals, office buildings, school buildings, libraries, storage facilities, parking structures, equipment repair facilities, and other buildings and structures of every kind needed for the performance of governmental functions and responsibilities of such county.
b. All public highways, roads, streets, bridges, ferries, and other facilities used for public travel, including all landscaping, lighting, storm sewers, and drainage facilities in connection therewith, that such county is authorized or required to construct, maintain, and repair, whether at its sole expense or in conjunction with other governmental entities.
c. All utility systems which may at any time have been or be acquired and operated by such county, or by any public corporation organized or created pursuant to authorization, determination, finding or other action by the county commission of such county acting singly or in conjunction with the governing bodies of one or more other governmental entities, pursuant to any local or general law applicable to such county, including, without limitation thereto, any of the following:
1. Sanitary sewer systems and all mains, laterals, sewage disposal plants, sewage treatment plants, equipment, and other necessary or desirable appurtenances for such systems, including, without limitation thereto, all sanitary sewer systems that may at any time have been or be acquired by such county pursuant to any of the statutes codified as Sections 11-3-11(15), 11-9-1 through 11-9-5, and 11-81-160 through 11-81-190.
2. Water distribution systems, whether providing water for human consumption or industrial use, and all reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, filtration and purification plants, equipment, and other necessary or desirable appurtenances for such systems, including, without limitation thereto, all water distribution systems that may at any time have been or be acquired by such county pursuant to any of the statutes codified as Sections 11-9-20 through 11-9-28 and 11-81-160 through 11-81-190.
d. All capital equipment and other capital personal property of every kind that such county may at any time have been or be authorized to acquire and use in the performance of its governmental functions and responsibilities, including, without limitation thereto, school buses and other equipment used for educational purposes, office equipment, computers, automobiles and trucks, and equipment used in the construction and maintenance of buildings or roads.
e. Capital improvements located within the county owned or acquired by a municipality. The application of any proceeds of warrants issued under the authority of this chapter to the cost of improvements under this paragraph shall be governed by an agreement between the county and the municipality that owns the improvements.
f. All other public facilities of every kind that such county may at any time have been or be authorized to acquire, including, without limitation thereto, parks, and related facilities for recreation, industrial parks and related facilities, drainage facilities, facilities necessary or desirable for the protection and preservation of the public health and safety, and revenue producing undertakings at any time authorized by the statutes codified as Sections 11-81-140 through 11-81-150.
(6) REFUNDABLE DEBT. With respect to any county, (i) any debt of such county evidenced by warrants issued pursuant to the provisions of this chapter and (ii) any valid debt of such county that is evidenced by bonds, notes, warrants or other instruments issued pursuant to laws other than this chapter and that was initially incurred to pay the costs of public facilities or to refund debt that, through one or more prior refundings, was initially incurred to pay the costs of public facilities. Refundable debt may be a general obligation of any county or a limited obligation payable solely from one or more specified sources, may have been initially incurred by any county or initially incurred by another governmental entity or public body and thereafter validly assumed by such county pursuant to any law other than this chapter, and may have been incurred or assumed by any county before or after December 21, 1983.
*(Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1; Act 2018-371, §1.)*
##### **§ 11-28-2** Authorization of Issuance of Warrants {#sec-11-28-2 omnilex-key=us-al-statutes--title-11--11-28-2}
In addition to all other warrants which any county shall have the power to issue pursuant to laws other than this chapter, the county shall have the power from time to time to sell and issue warrants of the county for the purpose of paying costs of public facilities. In the proceedings pursuant to which warrants are authorized to be issued the county commission of the county may, in its discretion, provide that the warrants shall evidence general obligation debt of such county, in which case the full faith and credit of the county shall be irrevocably pledged for the payment of the principal of and interest on the warrants or, alternatively, that the warrants shall evidence limited obligation debt of the county payable solely from specified pledged funds, in which case the pledged funds shall be irrevocably pledged for the payment of the principal of and interest on such warrants as provided in Section 11-28-3. The warrants may be in the denomination or denominations, may have a maturity or maturities not exceeding 30 years from their date, except that in counties having a population of 98,500 inhabitants or more, except Madison County, according to the 1990 federal decennial census, warrants in excess of $25,000,000 may have a maturity or maturities not exceeding 40 years, may bear interest from their date at the rate or rates payable in the manner at the times, may be payable at the place or places within or without the State of Alabama, may be sold at the time or times and in the manner, whether publicly or privately, may be executed in the manner, and may contain the terms not in conflict with the provisions of this chapter, all as the county commission of the county may provide in the proceedings pursuant to which the warrants are authorized to be issued. The county commission of any county issuing the warrants may provide, in its discretion, that the warrants shall bear interest at a rate or rates fixed at the time of the issuance thereof, or at fixed rates which may be changed from time to time during the term of the warrants in accordance with an objective procedure determined by the county commission at the time of the issuance of the warrants, or at a floating rate or rates which may change from time to time in connection with published interest rates or indexes that reflect an objective response to market changes in interest rates by banks, governmental agencies, or other generally recognized public or private sources of information concerning interest rates, and the county commission may also provide, in its discretion, that interest on the warrants may be payable in cash at fixed intervals, or through one or more payments which reflect compound interest computed at specified intervals on accrued but unpaid interest, or through a discount in the sales price for the warrants equivalent to compound interest on the warrants for all or part of the term thereof, or through any combination of the foregoing methods of providing for the payment of interest. The county commission of any county issuing the warrants shall have the power to enter into and perform all contracts with banks or trust companies, insurance or surety companies, governmental entities, investment banking firms, and other persons to the extent that such county commission determines, in its discretion, that such contracts are necessary or desirable to sell and issue warrants and to secure and provide for the payment thereof. The proceeds derived from the sale of the warrants shall be used solely for the purpose for which they are authorized to be issued.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §2; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1; Act 98-616, p. 1356, §1.)*
##### **§ 11-28-3** Special Pledges {#sec-11-28-3 omnilex-key=us-al-statutes--title-11--11-28-3}
If the county commission of any county determines to issue warrants under this chapter that are general obligations of such county, or if such county commission determines to issue warrants under this chapter that are limited obligations of such county payable solely from specified sources, then such county commission may assign and specifically pledge for the payment of the principal of and the interest on such general obligation warrants (as additional security for the payment thereof) or for the payment of the principal of and interest on such limited obligation warrants (as the sole source for the payment thereof), as the case may be, all or any portion of the funds derived from any one or more of the following sources that are not subject to previous pledges or covenants which would prevent the assignment and pledge hereby authorized, that are not required by the laws and Constitution of the State of Alabama to be devoted to other purposes, and that such county may at any time be authorized to levy, collect or receive:
(1) The proceeds from the general annual ad valorem tax which such county is authorized to levy without reference to the purpose thereof under the provisions of Section 215 of the Constitution of Alabama of 1901;
(2) The proceeds from the ad valorem tax which such county is authorized to levy under the provisions of Section 215 of the said Constitution for the purpose of paying any debt or liability created for the erection of necessary public buildings, bridges or roads;
(3) The proceeds from any other tax (including any ad valorem tax and any occupational, privilege, license or excise tax) that such county is authorized to levy at the time of the issuance of such warrants;
(4) Any payments in lieu of taxes made to such county by other governmental entities or by private persons or companies pursuant to contractual arrangements or laws in effect at the time of the issuance of such warrants;
(5) The portion of any tax levied and collected by any other governmental entity that shall be apportioned and paid to such county pursuant to laws in effect at the time of the issuance of such warrants;
(6) The income derived from the investment of moneys lawfully held by such county, including, without limitation thereto, the income derived from investments in which the proceeds of refunding obligations issued by such county may be invested until needed for the payment of the obligations to be refunded; and
(7) The revenues from any revenue producing properties owned, leased or operated by such county, including, without limitation thereto, any water system, sewer system, electric distribution system or other utility.
The pledge of any pledged funds for the payment of the principal of and interest on warrants issued by any county pursuant to this chapter, together with any covenants of such county relating to such pledge, shall have the force of contract between such county and the holders of such warrants. To the extent necessary and sufficient for making the payments secured by any pledge of pledged funds made pursuant to the provisions of this chapter, such pledged funds shall constitute a trust fund or funds which shall be impressed with a lien in favor of the holders of the warrants to the payment of which such pledged funds are pledged. In the event that more than one pledge should be made with respect to any pledged funds, then such pledges shall take precedence in the order in which they are made unless the proceedings making such pledge shall expressly provide that such pledge shall be on a parity with or subordinate to a subsequent pledge of such pledged funds. All warrants for which any pledge authorized by the provisions of this chapter may be made shall constitute preferred claims against that portion of the pledged funds so pledged, and shall have preference over any claims for any other purpose whatsoever.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §3; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
##### **§ 11-28-4** Authorization of Refunding Warrants {#sec-11-28-4 omnilex-key=us-al-statutes--title-11--11-28-4}
Each county may at any time and from time to time issue refunding warrants for the purpose of refunding refundable debt then outstanding, whether such refunding shall occur before, at or after the maturity of the refundable debt to be refunded, and such refunding warrants shall be governed by the provisions of this chapter as and to the same extent applicable to warrants authorized in Section 11-28-2. In the discretion of the county commission of the issuing county, such refunding warrants may be issued in exchange for the instruments evidencing the refundable debt to be refunded or they may be sold and the proceeds thereof applied to the purchase, redemption or payment of such instruments. Refunding warrants to be issued in exchange for outstanding instruments evidencing refundable debt shall be issued in such principal amount and shall bear such interest that the combined total of such principal amount and the interest accrued thereon at the time of such exchange shall not exceed the sum of the principal amount of the refundable debt to be refunded, the accrued but unpaid interest thereon and a premium not greater than the premium that would be applicable to the redemption of such refundable debt if it were redeemed in accordance with its terms on the first redemption date next succeeding the date of such exchange. Refunding warrants to be sold may be issued in such principal amount as shall be determined by the county commission of the issuing county, provided that such refunding warrants shall not be sold and issued in an aggregate principal amount exceeding the sum of (a) the outstanding principal amount of the refundable debt to be refunded, (b) the interest accrued or to accrue on the instruments evidencing the refundable debt to be refunded until the respective maturities thereof, or if any of the instruments evidencing the refundable debt to be refunded are to be called for redemption (either on the earliest date on which under their terms they may be redeemed or some later date or dates), the interest accrued or to accrue thereon until the date or dates on which they are to be called for redemption, (c) the amount of any redemption premium required, by the terms of the instruments evidencing the refundable debt, to be paid as a condition to their redemption prior to their respective maturities, and (d) the amount of any costs (actual or estimated) incurred in connection with such refunding.
Pending the application of the proceeds of refunding warrants issued in accordance with this chapter, such proceeds, together with investment income therefrom, and moneys in any sinking fund for the refundable debt to be refunded, together with investment income therefrom, may be deposited in trust, on such terms as the county commission of the issuing county shall approve, with one or more trustees or escrow agents, which trustees or escrow agents shall be trust companies or national or state banks having trust powers within or without the State of Alabama, for investment in federal obligations, direct general obligations of the State of Alabama or certificates of deposits in such banks as may be designated by such county commission, provided that to the extent the principal of such certificates of deposit and the interest accrued thereon shall at any time exceed the amount then insured by the Federal Deposit Insurance Corporation or by any agency of the United States of America that may succeed to its functions, the uninsured principal and accrued interest on such certificates of deposit shall be secured by collateral consisting of federal obligations, direct general obligations of the State of Alabama or a combination thereof and having at all times an aggregate market value (exclusive of accrued interest) not less than the amount of such uninsured principal and accrued interest. The proceeds of refunding warrants, together with the investment income therefrom, and moneys in any sinking fund for the refundable debt to be refunded, together with investment income therefrom, shall be available for the payment of all or any part of the principal of and the interest on any of the refunding warrants or for the payment of all or any part of the principal of and the interest and redemption premium, if any, on the refundable debt to be refunded, as the county commission of such county, in its discretion, shall prescribe. Proceeds of refunding warrants shall be so invested and applied as to assure that the principal of and the interest and redemption premium, if any, on the refundable debt to be refunded shall be paid in full on the respective due dates of such principal, interest and premium.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §4; Acts 1983, No. 83-615, p. 953; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
##### **§ 11-28-5** Warrants to Be Legal Investments for Trust Funds {#sec-11-28-5 omnilex-key=us-al-statutes--title-11--11-28-5}
Unless otherwise directed by the court having jurisdiction thereof, or by the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers, invest trust funds in warrants issued under the provisions of this chapter.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §5; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
##### **§ 11-28-6** Issuance of Warrants Constitutes Audit and Allowance of Claim {#sec-11-28-6 omnilex-key=us-al-statutes--title-11--11-28-6}
The issuance of warrants and any interest coupons applicable thereto, pursuant to the provisions of this chapter and in accordance with the authorization of the county commission of the county issuing such warrants, shall be deemed to constitute an audit and allowance by such county commission of a claim, in the aggregate amount of such warrants and the interest thereon, against such county and against any pledged funds pledged for the payment of the principal of and interest on such warrants pursuant to the provisions of this chapter. No proof of registration or other audit or allowance of such claim shall be required and such warrants and the interest thereon shall, from and after the date of their lawful issuance, be deemed to be allowed claims against the county by which they were issued and against any pledged funds so pledged therefor.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §6; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
##### **§ 11-28-7** Provisions of This Chapter Control {#sec-11-28-7 omnilex-key=us-al-statutes--title-11--11-28-7}
Insofar as the provisions of this chapter may be inconsistent with the provisions of any other law concerning actions authorized by this chapter, the provisions of this chapter shall control, it being hereby specifically declared that the provisions of Section 11-8-10 shall not be applicable to any warrants issued under the provisions of this chapter. Subject to the preceding sentence, this chapter does and shall be construed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to other laws. The provisions of Section 11-28-2 regarding the payment of interest on warrants issued pursuant to this chapter shall be deemed declarative of existing law and shall not be construed in a manner adverse to the validity of any bonds, notes, warrants or other instruments evidencing debt at any time issued by the State of Alabama, any instrumentality thereof, any county or municipality therein, or any public body or governmental entity created under the laws of the State of Alabama.
*(Acts 1983, 1st Ex. Sess., No. 83-75, p. 78, §7; Acts 1983, 4th Ex. Sess., No. 83-921, p. 192, §1.)*
### **Chapter 29** County Government Capital Improvement
##### **§ 11-29-1** Short Title {#sec-11-29-1 omnilex-key=us-al-statutes--title-11--11-29-1}
This chapter may be cited as the “County Government Capital Improvement Act.”
*(Acts 1986, No. 86-206, p. 269, §1.)*
##### **§ 11-29-2** Legislative Findings and Declaration of Purpose {#sec-11-29-2 omnilex-key=us-al-statutes--title-11--11-29-2}
It is the desire of the state to assist in the restoration and improvement of county government buildings, bridges, roads, streets, and other facilities, and to promote the health, safety, and public welfare of the citizens of the state. The making available in the manner provided in this chapter of appropriated moneys to assist the financing of much needed capital improvement projects will assist county government services and promote the welfare and prosperity of the people of the state.
*(Acts 1986, No. 86-206, p. 269, §2.)*
##### **§ 11-29-3** Definitions {#sec-11-29-3 omnilex-key=us-al-statutes--title-11--11-29-3}
As used in this chapter, the following words and phrases shall have the following respective meanings:
(1) FISCAL YEAR. The fiscal year of the state as may from time to time be provided by law.
(2) FUND. The “County Government Capital Improvement Fund.”
(3) FUND CAPITAL. All assets of the “fund.”
(4) STATE. The State of Alabama.
(5) TRUST FUND. “The Alabama Trust Fund” created by Amendment Number 450 of the Constitution of Alabama of 1901.
(6) TRUST INCOME. The net income received by the state, subsequent to the transfer of the initial trust capital by the State Treasurer to the board of trustees of the trust fund, from the investment and reinvestment of all assets of the trust fund, determined in accordance with the provisions of Amendment Number 450 of the Constitution of Alabama of 1901. “Trust income” does not include income which becomes part of the trust capital of the trust fund.
*(Acts 1986, No. 86-206, p. 269, §3.)*
##### **§ 11-29-4** Fund Created {#sec-11-29-4 omnilex-key=us-al-statutes--title-11--11-29-4}
For the continuing benefit of the State of Alabama and the citizens thereof, there is hereby created the “County Government Capital Improvement Fund” which shall be funded and administered in accordance with the provisions of this chapter.
*(Acts 1986, No. 86-206, p. 269, §4.)*
##### **§ 11-29-5** Appropriations {#sec-11-29-5 omnilex-key=us-al-statutes--title-11--11-29-5}
Beginning October 1, 1985, in addition to all other appropriations heretofore or hereafter made there is hereby annually appropriated from the General Fund of the state to the County Government Capital Improvement Fund an amount equal to 10 percent of the trust income at such time as the trust income received by the state in the preceding fiscal year equals or exceeds $60,000,000. Provided, however, no funds shall be appropriated to the County Government Capital Improvement Fund in any fiscal year for which in the previous fiscal year trust income received by the state was less than $60,000,000.
*(Acts 1986, No. 86-206, p. 269, §5.)*
##### **§ 11-29-6** Distribution of Fund Capital; Purposes for Which Counties May Use Funds {#sec-11-29-6 omnilex-key=us-al-statutes--title-11--11-29-6}
The fund capital shall be distributed to the several counties of the state and shall be paid on April 15 of the fiscal year for which each annual appropriation is made as follows:
Part of the funds to be paid to counties that is equal to 45.45 percent of the total of such portion shall be allocated equally among the 67 counties of the state; and the entire residue of the portion to be paid to counties, being an amount equal to 54.55 percent of such portion, shall be allocated among the 67 counties of the state on the basis of the ratio of the population of each county to the total population of the state according to the then next preceding federal decennial census or, prior to the effective date of the 1990 decennial census, any special federal census held in any county subsequent to the effective date of the 1980 federal decennial census and prior to the adoption hereof. Such funds shall only be used by counties for the following purposes:
a. Public buildings; counties may expend such funds for the construction, furnishing, equipping, and renovation of public buildings including, without limitation, jails, courthouses and courthouse annexes, juvenile facilities, and paying rentals to public corporations for the use of public buildings. Such funds may also be expended for the purpose of purchasing land for public buildings.
b. Solid waste; counties may expend such funds for the purchase of land for sanitary landfills, the purchase of solid waste handling and disposal equipment including collection vehicles and landfill compaction equipment, and other solid waste handling and disposal equipment and/or facilities.
c. Public utilities; counties may expend such funds for public water and waste water treatment facilities and drainage facilities. Such expenditures may include the purchase of land and rights-of-way, and the purchase of equipment and supplies necessary for the installation and maintenance of such public facilities.
d. Roads and bridges; up to 50 percent of the funds received by counties may be expended for the construction, maintenance, reconstruction, restoration, or resurfacing of county roads and bridges.
e. Bonds and warrants; counties may expend such funds for the payment of any valid obligation of a county that is evidenced by bonds, notes, warrants, or other instruments now or hereafter authorized by law to be issued for any of the purposes enumerated in clauses a, b, c, and d of this paragraph.
f. Public health; counties may expend funds for the operation and maintenance of the county health department.
g. Pensions and security; counties may expend funds for the operation and maintenance of the county human resources department.
*(Acts 1986, No. 86-206, p. 269, §6; Act 98-499, p. 1075, §1.)*
##### **§ 11-29-7** Distribution and Payment of Allocations {#sec-11-29-7 omnilex-key=us-al-statutes--title-11--11-29-7}
The state Comptroller shall make all allocations of funds and shall make the distribution and payments thereof pursuant to such allocations provided for in this chapter.
*(Acts 1986, No. 86-206, p. 269, §7.)*
### **Chapter 30** Liability Self-Insurance Funds
##### **§ 11-30-1** Definitions {#sec-11-30-1 omnilex-key=us-al-statutes--title-11--11-30-1}
For the purpose of this chapter the following terms shall have the meanings subscribed to them by this section:
(1) LIABILITY SELF-INSURANCE FUND. An entity or entities, to be formed by two or more counties of Alabama for the purpose of pooling resources and funds to self-insure such counties and/or their officers and employees acting in the line and scope of their employment against:
a. Loss for money damages which any person or other entity is legally entitled to recover from a member county or its officers and employees for damages suffered as a result of a claim as defined under this chapter.
b. Damage to or loss of property owned or leased by a member county.
(2) MEMBER COUNTY. A county which elects to pool its resources and funds with one or more other counties for the purpose of forming a liability self-insurance fund.
(3) CLAIM. Any claim or suit filed against a member county for money damages which any person or other entity is legally entitled to recover for damages suffered as a result of bodily injury, death or property damage caused by a negligent or wrongful act or omission committed by any employee, officer, or servant of the member county while acting within the line and scope of his or her employment under circumstances where the member county would be liable to the claimant for such damages under the laws of the State of Alabama or any claim filed by a member county for damage to or loss of county property covered by the liability self-insurance fund.
*(Acts 1986, No. 86-499, p. 954, §1; Act 2015-53, §1.)*
##### **§ 11-30-2** Establishment of Liability Self-Insurance Fund by Two or More Counties; Appropriation of Funds {#sec-11-30-2 omnilex-key=us-al-statutes--title-11--11-30-2}
Any group of two or more counties of the State of Alabama may establish a liability self-insurance fund for the purpose of pooling its resources and funds to provide coverage for each member county and/or its officers and employees on account of a claim as defined in this chapter. Member counties may appropriate such funds as necessary to the liability self-insurance fund created hereunder.
*(Acts 1986, No. 86-499, p. 954, §2.)*
##### **§ 11-30-3** Powers of Liability Self-Insurance Fund {#sec-11-30-3 omnilex-key=us-al-statutes--title-11--11-30-3}
Each liability self-insurance fund established under provisions of this chapter shall have the power and authority to establish a governing body of trustees; establish bylaws for the governing of such group; enter into contracts with member counties; establish a schedule of benefits payable; establish a schedule of charges to be collected from member counties for benefits provided; enter into contracts with solvent insurance companies authorized to do business in this state; enter into management and consultant contracts; hire attorneys and employees; and, exercise such powers and authority incident to the purposes of this chapter.
*(Acts 1986, No. 86-499, p. 954, §3.)*
##### **§ 11-30-4** Filing of Bylaws and Schedule of Benefits and Charges with State Insurance Commissioner; Exemption from Regulation and from Premium Tax {#sec-11-30-4 omnilex-key=us-al-statutes--title-11--11-30-4}
Each liability self-insurance fund established under the provisions of this chapter shall file with the State Insurance Commissioner a copy of its bylaws and schedule of benefits and charges. Such group, however, shall be exempt from regulation by the Department of Insurance of the State of Alabama and all premiums or charges collected shall be exempt from insurance premium tax.
*(Acts 1986, No. 86-499, p. 954, §4.)*
##### **§ 11-30-5** Liability Coverage Not to Exceed Damages Provided in Section 11-93-2 {#sec-11-30-5 omnilex-key=us-al-statutes--title-11--11-30-5}
No liability self-insurance fund established under provisions of this chapter shall establish a schedule of benefits providing liability coverage for a county in excess of those damages provided in Section 11-93-2, as amended, (section 2, Act No. 673, Acts of Alabama 1977, page 1161), and as the same may be amended.
*(Acts 1986, No. 86-499, p. 954, §5.)*
##### **§ 11-30-6** Chapter Not Intended to Impose Tort Liability Where Not Already Existing by Law {#sec-11-30-6 omnilex-key=us-al-statutes--title-11--11-30-6}
This chapter is not intended and shall not be construed to subject any county or its officers and employees to liability for tort claims where liability therefor does not already exist by law.
*(Acts 1986, No. 86-499, p. 954, §6.)*
##### **§ 11-30-7** Liability Self-Insurance Fund Not Subject to Suit by Third Party Based on Claim Against County; Scope of Liability {#sec-11-30-7 omnilex-key=us-al-statutes--title-11--11-30-7}
No liability self-insurance fund nor the trustees thereof shall be subject to suit by any third party on account of a claim against a member county or its officers and employees. It shall incur no liability to any party other than that authorized and contracted for under provisions of this chapter.
*(Acts 1986, No. 86-499, p. 954, §7.)*
### **Chapter 31** Radio/Alert Notification Communications Districts
##### **§ 11-31-1** Establishment of Radio/Alert Notification Communcations District {#sec-11-31-1 omnilex-key=us-al-statutes--title-11--11-31-1}
One or more counties, by resolution of the governing body, may establish a radio/alert notification communications district comprised of the territory wholly within the county or, in the case of more than one county, the respective counties. The radio/alert notification communications district shall be a public authority and shall be a political and legal subdivision of the state.
*(Act 2011-675, p. 1802, §1.)*
##### **§ 11-31-2** Board of Directors - Creation; Composition {#sec-11-31-2 omnilex-key=us-al-statutes--title-11--11-31-2}
When any radio/alert notification communications district is created, the creating authority may appoint a board of directors comprised of a minimum of eight members to govern its affairs and fix the domicile of the board. The board members appointed shall be from the disciplines represented by the users of the system. The board may fix its domicile at any point within the district. In the case of a multi-county radio/alert notification communications district, the governing body of each participating county shall have four appointments to the board. The members of the board shall be qualified electors of their respective county, two of whom, one from each county, shall be appointed for terms of two years; four members, two from each county, for terms of three years; and two members, one from each county, for terms of four years. Initial terms shall commence on the date of the adoption of the resolution creating the district. Thereafter, all appointments of the members shall be for terms of four years. The membership of the board shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.
*(Act 2011-675, p. 1802, §2.)*
##### **§ 11-31-3** Board of Directors - Officers; Meetings; Powers; Funding {#sec-11-31-3 omnilex-key=us-al-statutes--title-11--11-31-3}
(a)(1) The board of directors of the authority may do all of the following:
a. Appoint a chair from among its membership, subject to an annual rotation of the chair position between or among the representative members of the board from each county comprising the radio/alert notification communications district in the case of a multi-county district.
b. Appoint a vice chair from among its membership, provided that in the case of a multi-county district, the vice chair shall be a representative of a county other than the one represented by the chair.
c. Appoint other officers from among its membership as it may deem necessary from among the membership of the board.
(2) A majority of the directors shall constitute a quorum for the purpose of conducting business.
(b) The authority shall have all of the following powers:
(1) Employ such employees, experts, and consultants as it deems necessary to assist the board in the discharge of its responsibilities to the extent that funds are available.
(2) Acquire, make improvements to, or dispose of, whether by purchase, sale, gift, lease, devise, or otherwise, property of every description that the board may deem necessary and to hold title thereto, including, but not limited to, vehicles, radio equipment, computer equipment, alert notification equipment, and other capital assets.
(3) Sue and be sued and prosecute and defend civil actions in any court having jurisdiction of the subject matter and the parties.
(4) Construct, enlarge, equip, improve, and maintain all aspects of the radio/alert notification communications system.
(5) Issue bonds for operation and management of the radio/alert notification communications district secured by revenue of the district. The bonds shall be negotiable instruments and shall be solely the obligations of the district and not the State of Alabama. The bonds and income thereof shall be exempt from all taxation in the State of Alabama. The bonds shall be payable out of the income, revenues, and receipts of the district. The bonds shall be authorized and issued by resolution of the creating authority or authorities of the district and shall be of such series, bear such date or dates, mature at time or times, not to exceed 30 years from issuance, bear interest at such rate or rates, be in such denominations, be in such form, without coupon or fully registered without coupon, carry such registration and exchangeability privileges, be payable in such medium of payment and at such a place or places, be subject to such terms of redemption and be entitled to the priorities on the income, revenues, and receipts of the district as the resolution may provide. All bonds shall contain a recital that they are issued pursuant to this chapter, which recitals shall be conclusive that they have been duly authorized pursuant to this chapter.
(6) Provide for such liability and hazard insurance as the board deems advisable, including inclusion or continuation, or both, of district employees in a state, county, municipal, or self-funded liability insurance program.
(7) Enter into contracts or agreements with public or private entities when the terms, conditions, and charges of such contracts or agreements are mutually agreed upon.
(8) Establish committees from the membership of the board to focus on specific areas, including, but not limited to, technology, operations, long-term funding strategy, and capital replacement, when authorized by the board.
(9) Assess reasonable fees on users of the radio/alert notification communications system to recover the costs of operation, maintenance, and capital replacement of the shared radio communications system.
(c) Capital and operating costs of the district and its shared radio/alert notification communications system shall be equally shared among the users of the shared radio/alert notification communications system.
(d) Funds generated from any type of revenue shall be used to establish, maintain, and replace a radio/alert notification communications system that may consist, without limitation, of the following:
(1) Radio and alert notification communications equipment and facilities necessary to facilitate voice and data communications.
(2) The engineering, installation, and recurring costs necessary to implement and maintain a radio/alert notification communications system.
(3) Facilities and employees to house radio/alert notification communications as described in this chapter, with the approval of the creating authority.
(e) Employees of the district shall be eligible for membership in the Retirement Systems of Alabama.
*(Act 2011-675, p. 1802, §3.)*
##### **§ 11-31-4** Participation {#sec-11-31-4 omnilex-key=us-al-statutes--title-11--11-31-4}
Any entity providing emergency response for fire, medical, or law enforcement purposes in a county that has created a radio/alert notification communications district, pursuant to this chapter, may elect not to participate in the radio/alert communications system.
*(Act 2011-675, p. 1802, §4.)*
### **Chapter 32** Public Transportation in Counties Having Population of 600,000 or More
##### **§ 11-32-1** Legislative Findings {#sec-11-32-1 omnilex-key=us-al-statutes--title-11--11-32-1}
(a) The Legislature finds, determines, and hereby declares that, in counties having a population of not less than 600,000, there are conditions present that are not present in counties with lesser populations. Those conditions include, but are not limited to, the following:
(1) The excessive growth in private vehicular traffic in the counties is placing excessive burdens upon the road systems and parking facilities, especially in commercial and industrial districts and in areas of high population density, which cannot be alleviated by private vehicular traffic.
(2) The number of vehicular miles the average citizen of those counties travels per day is among the highest nationally in terms of miles and commuting times.
(3) The projected continued economic growth of the counties and the general health and welfare of the citizens of the counties require those counties to provide the enhanced availability of public transportation facilities, operations, and services for mass transportation, thus it is necessary and desirable and in the best interests of the citizens of the counties that the provisions governing the administration of the authority be amended to expand and improve the existing public transportation services.
(b) The Legislature further declares its intention, by the passage of this chapter, to provide for solutions to the problems set out above that are not provided for by the general laws of the state, to promote public mass transportation in the authorizing county, and to provide a mechanism for transportation services in counties contiguous with a county having a population of not less than 600,000, through the authorization of public corporations, as agencies of the State of Alabama, with the powers conferred by this chapter.
*(Act 2013-380, p. 1389, §1.)*
##### **§ 11-32-2** Definitions {#sec-11-32-2 omnilex-key=us-al-statutes--title-11--11-32-2}
**THIS ACT WAS AMENDED BY ACT 2026-300, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR AMENDED LANGUAGE.**
As used in this chapter, the following words and phrases shall mean the following unless the context clearly indicates otherwise:
(1) AD VALOREM TAX. Those real and personal property ad valorem taxes collected by the county tax collector, the director of revenue of the county, or revenue commissioner, if any, for the county, but shall exclude all ad valorem taxes collected for the State of Alabama and all boards of education, municipalities, fire districts, or other entities located in the county.
(2) APPLICANT. A natural person who files a written application with the governing body of any county to which this chapter applies and with a municipality in the county, all in accordance with Section 11-32-3.
(3) AUTHORITY. The public corporation organized pursuant to this chapter, which shall be an agency of the state but shall not be a political subdivision of the state.
(4) AUTHORIZING COUNTY. Any county the governing body of which shall have adopted an authorizing resolution, even if the population of the county should fall below 600,000.
(5) AUTHORIZING MUNICIPALITY. Any municipality the governing body of which shall have adopted an authorizing resolution.
(6) AUTHORIZING RESOLUTION. A resolution, adopted by the governing body of any county to which this chapter applies or by a municipality in the county, all in accordance with Section 11-32-3.
(7) BOARD. The Board of Directors of an authority.
(8) BONDS. Bonds, notes, warrants, certificates, and other obligations representing an obligation to pay money.
(9) COUNTY. Any county in the state.
(10) DIRECTOR. A member of the board.
(11) FISCAL YEAR. The 12-month period provided for in subsection (c) of Section 11-32-7.
(12) GOVERNING BODY. With respect to a county, its county commissioners, board of revenue, or other like governing body and with respect to a municipality, its city or town council, board of commissioners, or other like governing body.
(13) INCORPORATORS. The persons forming a public corporation organized pursuant to this chapter.
(14) LABOR UNION. An organization in which employees participate for the purpose of dealing with one or more employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
(15) METROPOLITAN PLANNING ORGANIZATION. The forum for cooperative transportation decision making for a metropolitan planning area pursuant to 23 U.S.C. § 134 and 49 U.S.C. § 5303.
(16) MUNICIPALITY. An incorporated city or town of this state.
(17) PARATRANSIT. Comparable transportation service required by the Americans with Disabilities Act for individuals who are unable to use fixed route transportation systems.
(18) PARTICIPATING MUNICIPALITY. A municipality in an authorizing county, other than the principal municipality, which is then providing funds for the authority, pursuant to resolution, contract, or otherwise.
(19) PERSON. Unless limited to a natural person by the context in which it is used, includes a public or private corporation, municipality, county, or an agency, department, or instrumentality of the state or of a county or municipality.
(20) PRINCIPAL MUNICIPALITY. The municipality in an authorizing county having the largest population in the authorizing county according to the last or any subsequent federal decennial census.
(21) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments to the certificate of incorporation, the bylaws, and the minutes of proceedings of the board are kept.
(22) PROPERTY. Real and personal property, and any and all interests in the real and personal property.
(23) PUBLIC TRANSPORTATION SERVICE. All service involved in the transportation of passengers for hire by means of buses, street railway, elevated railway, subway, underground railroad, light rail, mass transit systems, motor vehicles, or other means of conveyance generally associated with or developed for mass surface or sub-surface transportation of the public, but does not include any service involved in transportation by taxicab, airport limousine, or industrial bus; however, public transportation service does not include aircraft or any air service subject to the Air Carrier Access Act of 1986 or managed by an airport authority of the principal municipality.
(24) REGIONAL PLANNING COMMISSION. The regional organization representing governing bodies of local governments under Act 584 of the 1963 Regular Session (Acts 1963, p. 1278) or Act 1126 of the 1969 Regular Session (Acts 1969, p. 2084).
(25) TCAB. The transit citizens advisory board established herein.
(26) TRANSIT SYSTEM. Land, plants, systems, facilities, buildings, garages, vehicles of all types, rails, lines, and any combination of any of the following, used or useful or capable of future use in furnishing public transportation service, and all other property deemed necessary or desirable by an authority for use in furnishing public transportation service.
(27) STATE. The State of Alabama.
*(Act 2013-380, p. 1389, §2.)*
##### **§ 11-32-3** Incorporation as a Public Corporation; Applications {#sec-11-32-3 omnilex-key=us-al-statutes--title-11--11-32-3}
(a) One or more public corporations may be organized pursuant to this chapter in a county having a population of not less than 600,000 according to the last or any subsequent federal decennial census. Once incorporated under or governed by this chapter, each corporation shall continue to be subject to this chapter, even if the population of the county falls below 600,000. In order to incorporate as a public corporation, any number of natural persons, not less than three, shall first file a written application with the governing body of the county and with the governing body of the municipality in the county having the largest population according to the most recent federal decennial census, which applications shall include all of the following:
(1) A statement that the authority proposes to render public transportation service in the county.
(2) The proposed location of the principal office of the authority, which shall be within the county with the governing body of which the application is filed.
(3) A statement that each of the applicants is a duly qualified elector of the county in which the application is filed.
(4) A request that the governing body adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-32-4.
(b) The applications shall, except in their designation of the governing body to which they are addressed and with which they are filed, be identical, and accompanied by the supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the applications in accordance with this section, the governing bodies of the county and the municipality with which the application was filed shall review the contents of the application and shall adopt resolutions either denying the application or declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-32-4. Each governing body with which an application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of the governing body at which final action upon the application is taken.
*(Act 2013-380, p. 1389, §3; Act 2014-264, p. 856, §1.)*
##### **§ 11-32-4** Certificate of Incorporation - Filing; Contents; Execution {#sec-11-32-4 omnilex-key=us-al-statutes--title-11--11-32-4}
(a) Within 40 days following the adoption of an authorizing resolution by that governing body that was the last to adopt an authorizing resolution, but only if the governing bodies of both the county and the municipality with which applications were filed have theretofore adopted authorizing resolutions, the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the authorizing county a certificate of incorporation which shall comply in form and substance with the requirements of this section, and which shall be in the form and executed in the manner as provided in this chapter. The certificate of incorporation of the authority shall contain all of the following:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector of the authorizing county.
(2) The name of the authority which shall be “_____ County Transit Authority,” with the insertion of the name of the authorizing municipality and the authorizing county.
(3) The period for the duration of the authority, if the duration is to be perpetual, subject to Section 11-32-20 and that fact shall be stated.
(4) The names of the authorizing county and the authorizing municipality, together with the dates on which the governing bodies thereof adopted authorizing resolutions.
(5) The location of the principal office of the authority, which shall be in the authorizing county.
(6) That the authority is organized pursuant to the provisions of this chapter for the purpose of supplying public transportation service in the authorizing county.
(7) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(b) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it all of the following:
(1) A copy of each of the applications filed with the governing bodies of the authorizing county and the authorizing municipality in accordance with Section 11-32-3.
(2) A certified copy of each of the authorizing resolutions adopted by the governing bodies of the authorizing county and the authorizing municipality.
(3) A certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar to another corporation so as to lead to confusion and uncertainty. Upon the filing for record of the certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation. The judge of probate shall send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Act 2013-380, p. 1389, §4.)*
##### **§ 11-32-5** Certificate of Incorporation - Amendment {#sec-11-32-5 omnilex-key=us-al-statutes--title-11--11-32-5}
(a) The certificate of incorporation of any authority incorporated under or governed by this chapter may be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
(b) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chair of the board or executive director of the authority and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the authorizing county and with the governing body of the principal municipality, requesting each governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with the documents in support of the application as the chair or executive director may consider appropriate. The applications, except in their designation of the governing body to which they are addressed and with which they are filed, shall be identical. As promptly as may be practicable after the filing of the application with the governing bodies of the authorizing county and the principal municipality pursuant to the foregoing provisions of this section, the governing bodies shall review the application and shall adopt resolutions either denying the application or authorizing the proposed amendment. Each governing body shall cause a copy of the application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of the governing body at which final action upon the application is taken.
(c) Within 40 days following the adoption of a resolution approving the proposed amendment by that governing body that was the last to adopt the resolution, but only if the governing bodies of both the authorizing county and the principal municipality have previously adopted a resolution, the chair of the board or executive director of the authority and the secretary of the authority shall sign and file for record in the office of the judge of probate of the authorizing county a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of the respective resolutions by the board and by the governing bodies of the authorizing county and the principal municipality and setting forth the proposed amendment.
*(Act 2013-380, p. 1389, §5.)*
##### **§ 11-32-6** Board of Directors {#sec-11-32-6 omnilex-key=us-al-statutes--title-11--11-32-6}
(a) Each authority shall be governed by a board. All powers of the authority shall be exercised by or under the authority of, and the business and affairs of the authority shall be managed under the direction of, the board or pursuant to its authorization. In making appointments to the board, best efforts should be used to reflect the racial, gender, and economic diversity within the county.
(b) The board shall consist of nine directors. One director shall be elected by the governing body of the authorizing county. Five of the directors shall be elected by the governing body of the principal municipality. One of the directors shall be elected by the governing bodies of each of the three participating municipalities having the largest population according to the last or any subsequent federal decennial census. If there are not three participating municipalities, the governing body of the authorizing county and the governing body of the principal municipality shall jointly elect a director that would otherwise be elected by the participating municipality. The term of office of each person who is a director on May 24, 2013, shall not be changed by this chapter.
(c) Notwithstanding the provisions of subsection (b), the terms of this subsection shall apply after January 1, 2014. Every appointment of a director for a new term shall be for a four-year term, and no one person shall serve more than two consecutive four-year terms unless such person is a director of the authority on May 24, 2013. The principal municipality may vary the term of office of any director it appoints as to cause its appointments to be evenly spaced over any four-year period. The participating municipalities and the authorizing county shall, following consultations with each other, exercise a similar power.
(d) Whenever there is a vacancy on the board, a successor director to serve for the unexpired term applicable to the vacancy shall be elected by the public entity that elected the director whose unexpired term the successor is to fill. A municipality may not have any continuing or vested right to elect a director and the power of the governing body of any municipality to elect or to participate in the election of a director, whether for a full term or to complete an unexpired term, shall be determined in accordance with the most recent federal decennial census.
(e) An officer of the state or of any county or municipality may not, during his or her tenure as an officer, be eligible to serve as a director. Each director shall be a duly qualified elector of the authorizing county. Each director shall be reimbursed for expenses actually incurred by him or her in and about the performance of his or her duties. Each director, except the chair of the board, shall be compensated in an additional amount not to exceed ten dollars ($10) per meeting attended but not to exceed two hundred fifty dollars ($250) per year; the chair shall be compensated in an additional amount not to exceed five hundred dollars ($500) per year; and the term “meeting” shall have the meaning given in Section 36-25A-2. A director 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) The dollar amounts specified in subsection (e) shall be adjusted according to the increase in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor for all Urban Consumers, US City Average, All Items, Not Seasonally Adjusted, Base Period 1982-84=100 (the “Index”). Adjustments shall occur at the start of each fiscal year of the authority, and shall be determined by dividing the most recent information available for the Index at the start of each fiscal year, by the most recent information available for the Index upon May 24, 2013, and multiplying the resultant amount by the subject number in subsection (e). Any increase or decrease shall be rounded to the nearest whole dollar.
*(Act 2013-380, p. 1389, §6.)*
##### **§ 11-32-7** Powers of Authority {#sec-11-32-7 omnilex-key=us-al-statutes--title-11--11-32-7}
**THIS ACT WAS AMENDED BY ACT 2026-300, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR AMENDED LANGUAGE.**
(a) The authority shall exercise powers and duties necessary to the discharge of its powers and duties in corporate form as follows:
(1) Have succession by its corporate name in perpetuity subject to Section 11-32-20.
(2) Sue and be sued in its own name in civil suits and actions and defend suits against it.
(3) Adopt and make use of a corporate seal and alter the same at its pleasure.
(4) Adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) Acquire, receive, take, by purchase, gift, lease, devise, or otherwise, and hold property of every description, real, personal, or mixed, whether located in one or more counties or municipalities and whether located within or outside the authorizing county.
(6) Make, enter into, and execute contracts, agreements, leases, and other instruments and take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized, or exercise any power expressly granted under this chapter. It is further provided that personnel employed and vendors hired with funds provided under this chapter shall reflect the racial and gender percentages within the authorizing county.
(7) Plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate a system for the provision of public transportation service within the authorizing county, or within any other county of the state, and without any requirement that the system be interconnected or otherwise constitute an integrated operational unit.
(8) Acquire real and personal property, franchises, and easements deemed necessary or desirable in connection with the system.
(9) Establish long-range plans and an annual program for public transportation in consultation with plans adopted by the Metropolitan Planning Organization and the Regional Planning Commission, the plans and programs to be coordinated with the plans for land use and development by counties and municipalities in the geographic area of the authority, in cooperation with the Regional Planning Commission and the Metropolitan Planning Organization; assure consistency between public transportation plans and related land use policies and plans; and provide for funds sufficient to ensure the planning and consultation as required among the authority, the Metropolitan Planning Organization, and the Regional Planning Commission.
(10) Develop or make grants for development of alternative transportation projects designed to enhance access to public transportation service in furtherance of the goal of improved mobility within the system providing public transportation service and in accordance with Section 134 of Title 23 and Chapter 53 of Title 49 of the United States Code.
(11) Own, operate, finance, and provide public transportation service within the authorizing county or in any part of any other county upon the terms and for rates or other consideration as the board may prescribe.
(12) Provide charter service within the state upon the terms and for the rates or other consideration as the board may prescribe unless prohibited by federal or state law, and use or operate any part of any transportation system owned by the authority in the charter service.
(13) Sell and issue bonds of the authority in order to provide funds for any corporate function, use or purpose, the bonds to be payable solely from the sources specified in Sections 11-32-9 and 11-32-13.
(14) Assume obligations secured by a lien on, or payable out of or secured by a pledge of the revenues from, any transit system or any part thereof, that may be acquired by the authority, any obligation so assumed to be payable by the authority solely from the sources from which bonds of the authority may be made payable pursuant to Sections 11-32-9 and 11-32-13.
(15) Pledge for payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable as provided in this chapter.
(16) Execute and deliver, in accordance with Sections 11-32-9 and 11-32-13, mortgages and deeds of trust and trust indentures, or either.
(17) Exercise the power of eminent domain, except as limited by state law, except the authority may not acquire, without the consent of the owner, any transportation system from which public transportation service is currently being furnished. The authority may not by eminent domain acquire any real property or rights owned or held by public or private railroads or utilities.
(18) Expend funds for the purchase or lease of materials, equipment, supplies, or other personal property without compliance with Chapter 16 of Title 41.
(19) Appoint, employ, contract with, and provide for the compensation of, officers, employees, and agents, including, but without limitation to, engineers, attorneys, management consultants, fiscal advisers, or other consultants without regard to Chapter 16 of Title 41, or any law establishing a civil service or merit system that might otherwise be applicable, as the business of the authority may deem necessary or desirable, and also provide a system of disability pay, employee insurance, retirement compensation, pensions, or other employee benefit plans as the authority may deem necessary or desirable. This chapter may not be construed to affect the rights and privileges of the employees of the system.
(20) Make and enforce reasonable rules and regulations governing the use of any public transportation service provided by the authority.
(21) Provide for any insurance as the board may deem advisable.
(22) Invest funds of the authority that the board may determine are not presently needed in the operation of its properties in bonds of, or guaranteed by, the United States of America or any agency of the United States, bonds of the state, bonds of any county or municipality, interest-bearing bank deposits, any agreement to repurchase any one or more of the foregoing, any money market fund consisting of any one or more of the foregoing, or any combination thereof.
(23) Cooperate with the United States of America or its agencies or instrumentalities, the state, any county, municipality, or other political subdivision of the state, and any public corporation organized under the laws of the state and make or receive funds from any of them in the terms as the board may deem advisable or prescribe to make contracts with them, or any of them, as the board deems advisable to accomplish the purposes for which the authority was established.
(24) Sell and convey its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any transportation system of the authority.
(25) Sell and convey, with or without valuable consideration, any of its transit systems or any portion of a transit system, to any one or more counties, municipalities, or public corporations organized under the laws of the state, which have the corporate power to operate the system, or portions of a transit system, conveyed, and the property and income of which are not subject to taxation except that the sale and conveyance may be made only of the following:
a. With the consent of the authorizing county, the principal municipality, and each participating municipality, the consent to be evidenced by a resolution adopted by the governing body of each consenting county and municipality.
b. If the conveyance would not constitute a breach of any then outstanding mortgage and deed of trust, trust indenture, or other agreement to which the authority is a party.
(26) Enter into agreements with all or any part of the employees of the authority or with any groups or associations representing the employees.
(27) Enter into a management agreement or agreements with any person for the management by or for the authority of any public transportation service upon any mutually agreeable terms and conditions.
(28) Require that all laborers and mechanics employed by contractors or subcontractors in the performance of construction work for the authority be paid wages at rates not less than those prevailing on similar construction in the locality where the work is performed as determined by the United States Secretary of Labor or any department, agency or instrumentality of the United States or of the state.
(29) If the authority acquires an existing system for the provision of public transportation service, enter into arrangements necessary or desirable to protect the interest of employees of any acquired system including, without limiting the generality of the foregoing:
a. The preservation of rights, privileges, and benefits including continuation of pension rights and benefits under existing agreements.
b. The protection of individual employees against a worsening of their positions with respect to their employment.
c. Assurance of employment to the employees of acquired transportation systems, except executives and administrative officers, and priority of reemployment of the employees terminated or laid off.
d. Paid training or retraining programs.
(30) Fix and revise from time to time reasonable rates, fees, and other charges for public transportation service furnished or to be furnished by any system owned or operated by the authority, and collect all charges made by it.
(31) Prepare, adopt, and implement a set of policies that shall govern and set standards for, the conduct of all members of the board and all employees of the authority which shall include, but are not limited to, the following:
a. Provide for penalties for a violation.
b. Prohibit unethical conduct and require each director and employee of the authority to comply with all the provisions of the policy which shall include, but not necessarily be limited to, the provisions of the code of ethics for public officials and employees as provided for in Chapter 25 of Title 36, and rules and regulations promulgated thereunder by the state Ethics Commission.
c. Allow for the reimbursement of the expenses of directors and employees, subject to any requirements provided in the policy.
d. Provide a method of keeping records for expenses of directors and employees.
e. Regulate business dealings and contracts between the authority and directors or employees of the authority and business dealings between the authority and members of the family of directors or employees of the authority.
(32) Do any and all things necessary to own, operate, facilitate, provide, or promote public transportation services within the authorizing county or any other county of the state.
(b)(1) The board shall establish a separate and independently accountable TCAB. The TCAB shall be established by the board by July 23, 2013. The TCAB shall be composed of persons each of whom is a duly qualified elector of the authorizing county. In addition, the executive director of the authority shall serve as an ex officio nonvoting member of the TCAB. The procedure for making appointments to the TCAB and establishing the terms of the appointments shall be determined by the board in its sole discretion. The procedure shall include the approval of persons appointed to the TCAB by the authorizing county, principal municipality, or participating municipalities. In making appointments to the TCAB the following shall be considered:
a. Representation from all geographic regions served by the authority.
b. Minority representation to reflect the racial, gender, and economic diversity within the geographic regions served by the authority.
c. Representation from users of the system providing public transportation service, paratransit users, and advocates.
The board shall ensure that the authorizing county, the principal municipality, and each participating municipality shall be represented on the TCAB and that the number of representatives of each shall roughly approximate the funding normally provided by each.
(2) The TCAB shall be advisory to the authority and perform the following duties:
a. Serve as a body to advise the authority, the board, and private persons on the development and implementation of policies and programs relating to public transportation, and assist in the coordination of these activities.
b. Adopt bylaws, elect officers including a chair, and establish procedures for its operation within 30 days of its creation; provided, however, that the bylaws for the TCAB shall be subject to approval or amendment by the board.
c. Advise and make recommendations regarding transit development plans, comprehensive operations analysis, annual service, marketing and annual advertising plans developed by the authority.
(3) The board and the TCAB shall meet together at least once every six months at the time and place as shall be mutually agreeable.
(4) The board may, by three-fourths vote of the members of the board, determine to disband and reconstitute the TCAB.
(c) The board shall establish, from time to time, a fiscal year for the authority.
(d) A majority of the directors then in office shall constitute a quorum at any meeting of the board for the transaction of business. The act of a majority of the directors present at any meeting at which there is a quorum shall be an act of the board.
(e) The recovery of damages under any judgment or judgments against the authority shall be limited to one hundred thousand dollars ($100,000) for bodily injury or death for one person in any single occurrence. Recovery of damages under any judgment or judgments against the authority shall be limited to three hundred thousand dollars ($300,000) in the aggregate where more than three persons have claims or judgments on account of bodily injury or death arising out of any single occurrence. Recovery of damages under any judgment or judgments against the authority shall be limited to one hundred thousand dollars ($100,000) for damage or loss of property arising out of any single occurrence. The authority may not settle or compromise any claim for bodily injury, death, or property damage for an amount in excess of the amounts stated in this subsection.
*(Act 2013-380, p. 1389, §7.)*
##### **§ 11-32-8** Rates and Charges {#sec-11-32-8 omnilex-key=us-al-statutes--title-11--11-32-8}
(a) Rates, fees, and charges for public transportation service rendered by the authority from any of its transit systems shall be so fixed and from time to time revised as at all times to provide funds that, when added to all other revenues including tax proceeds anticipated to be received by the authority shall be at least sufficient to do all of the following:
(1) Pay the cost of operating, maintaining, repairing, replacing, extending, and improving the systems from which such services are rendered.
(2) Pay the principal of and the interest on all bonds issued and obligations assumed by the authority that are payable out of the revenues derived from operation of those systems, as the principal and interest become due and payable.
(3) Create and maintain reserves for the foregoing purposes or any of them as may be provided in any mortgage, deed of trust, or trust indenture executed by the authority or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of any system.
(4) Make any annual payments to the United States of America or any agency or instrumentality the United States, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state and any public corporations organized under the laws of the state as the authority may have contracted to make.
(b) A change in rates, fees, and charges made after May 24, 2013, shall take effect only if approved by the principal municipality.
*(Act 2013-380, p. 1389, §8.)*
##### **§ 11-32-9** Bonds - Form and Execution; Sale; Obligations; Notice {#sec-11-32-9 omnilex-key=us-al-statutes--title-11--11-32-9}
(a) All bonds issued by the authority shall be signed by the chair, vice chair, or executive director and attested by its secretary or assistant secretary, and the seal of the authority shall be affixed thereto except that a facsimile of the signature of the officers may be printed or otherwise reproduced on any of the bonds in lieu of being manually subscribed on the bonds, a facsimile of the seal of the authority may be printed or otherwise produced on the bonds in lieu of being manually affixed thereto, if the bonds have been manually authenticated by a transfer agent of the bond issue. Delivery of executed bonds shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds. The bonds may be executed and delivered by the authority at any time and from time to time, shall be in the form and denominations and of the tenor and maturities, shall contain the provisions not inconsistent with the provisions of this chapter, and shall bear the fixed or variable rate or rates of interest, payable and evidenced in the manner, as may be provided by resolution of its board. The bonds of the authority may be sold at either public or private sale in the manner and at the price or prices and at the time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds may thereafter at any time and from time to time be refunded by the issuance of refunding bonds of the authority, which may be sold by the authority at public or private sale at the price or prices as may be determined by its board to be most advantageous, or which may be exchanged for the bonds or other obligations to be refunded. The authority may pay all expenses, premiums, and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source. All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of any county or municipality except as provided in Section 11-32-13. Any bonds issued by the authority shall be limited or special obligations of the authority payable solely out of the revenues of the authority specified in the proceedings authorizing those bonds, except as provided under Section 11-32-13. The proceedings may provide that the bonds shall be payable solely from one or a combination of the following sources as set forth in a resolution of the board authorizing the issuance of the bonds which shall be subject to the following:
(1) Any tax proceeds appropriated, allocated, or made payable in whole or in part to the authority by or pursuant to any act of the Legislature or pursuant to an ordinance, resolution, or order of the county in which the authority is authorized to furnish public transportation service or any municipality located in the county.
(2) The revenues derived from the operation of all transit systems owned by the authority solely out of the revenues from the operation of any one or more of the systems or parts of the transit system, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems of the authority.
(3) The authority may pledge for the payment of any of its bonds the revenues from which the bonds are payable, and may execute and deliver a trust indenture evidencing any pledge or a mortgage and deed of trust conveying as security for the bonds the transit systems, or any part of any thereof, the revenues or any part of the revenues from which are so pledged. A mortgage and deed of trust or trust indenture made by the authority may contain the agreements as the board may deem advisable respecting the operation and maintenance of the property, and the use of the revenues subject to the mortgage and deed of trust or affected by the trust indenture, and respecting the rights, duties, and remedies of the parties to any instrument and the parties for the benefit of whom the instrument is made; except, that the instrument shall not be subject to foreclosure.
(b)(1) Upon the adoption by the board of any resolution providing for the issuance of bonds, the authority may cause to be published once a week for two consecutive weeks, in a newspaper published or having general circulation in the principal municipality, a notice in substantially the following form, the blanks being properly filled in, at the end of which shall be printed the name and title of either the chair, vice chair, executive director, secretary, or assistant secretary of the authority: “The ______ County Transit Authority, a public corporation under the laws of the State of Alabama, on the _____ day of _____, _____ authorized the issuance of $_____ principal amount of bonds of the public corporation for purposes authorized in the act of the Legislature under which the public corporation was organized. Any action or proceeding questioning the validity of the bonds, or the pledge and the mortgage, deed of trust, trust indenture or resolution to secure the same, or the proceedings authorizing the same, shall be commenced within 30 days after the first publication of this notice.”
(2) A newspaper shall be deemed to be published in the principal municipality, within the meaning of this section, if its principal editorial office is located in the principal municipality.
(3) Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of any of the bonds, or the validity of any pledge and mortgage, deed of trust, trust indenture, or resolution made for the bonds, shall be commenced within 30 days after the first publication of the notice. After the expiration of that period, no right of action or defense questioning or attacking the validity of the proceedings or of the bonds or the pledge or mortgage, deed of trust, trust indenture, or resolution shall be asserted, nor shall the validity of the proceedings, bonds, pledge, mortgage, deed of trust, trust indenture, or resolution be open to question in any court on any ground whatsoever except in an action commenced within the period.
*(Act 2013-380, p. 1389, §9.)*
##### **§ 11-32-10** Bonds - Contracts as Security for Payment {#sec-11-32-10 omnilex-key=us-al-statutes--title-11--11-32-10}
(a) As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may enter into one or more contracts binding itself for the following:
(1) The proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any transit system owned by it, or any part or parts of a transit system.
(2) The imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from a transit system.
(3) The disposition and application of its gross revenues or any part of a transit system.
(4) For any other act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from the transit system, when added to all other moneys of the authority available for the transit system, will be sufficient to operate the system, maintain the system in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from the revenues, and maintain the reserve deemed appropriate for the protection of the bonds, the efficient operation of the system, and the making of replacements for the system and capital improvements of the system.
(b) Any contract entered into pursuant to this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust, or trust indenture made by the authority.
*(Act 2013-380, p. 1389, §10.)*
##### **§ 11-32-11** Statutory Mortgage Lien {#sec-11-32-11 omnilex-key=us-al-statutes--title-11--11-32-11}
A resolution of the board or trust indenture under which bonds may be issued pursuant to this chapter may contain provisions creating a statutory mortgage lien, in favor of the holders of the bonds, on the transit systems, or including any after-acquired property out of the revenues from which the bonds are made payable. The resolution of the board or the trust indenture may provide for the filing for record in the office of the judge of probate of each county in which a part of the transit system may be located of a notice containing a brief description of the systems, a brief description of the bonds, and a declaration that the statutory mortgage lien has been created for the benefit of the holders of the bonds, upon the systems, including any additions to a system and extensions of a system. Each judge of probate shall receive, record, and index any notice filed for record in his or her office. The recording of the notice shall operate as constructive notice of the contents of the notice.
*(Act 2013-380, p. 1389, §11.)*
##### **§ 11-32-12** Use of Bond Proceeds {#sec-11-32-12 omnilex-key=us-al-statutes--title-11--11-32-12}
All moneys derived from the sale of any bonds issued by the authority shall be used solely for the purposes for which the moneys are authorized and any costs and expenses incidental thereto. The costs and expenses may include, but shall not be limited to, the following:
(1) The fiscal, engineering, legal, and other expenses incurred in connection with the issuance of the bonds.
(2) In the case of bonds issued to pay costs of acquiring or constructing all or any part of a transit system interest on the bonds or, if a part only of any series of bonds is issued for acquisition or construction purposes, interest on that portion of the bonds of that series that is issued to pay the acquisition or construction costs prior to and during the acquisition or construction and not exceeding one year after completion of the acquisition or construction.
(3) In the case of refunding bonds, any premium that it may be necessary to pay in order to redeem or retire the bonds to be refunded.
*(Act 2013-380, p. 1389, §12.)*
##### **§ 11-32-13** Powers of Localities, Agencies, Etc {#sec-11-32-13 omnilex-key=us-al-statutes--title-11--11-32-13}
For the purpose of securing public transportation or aiding or cooperating with the authority in the planning, development, undertaking, construction, acquisition, extension, improvement, operation, or protection of transit systems, any county, municipality or other political subdivision, public corporation, agency, or instrumentality of this state, upon the terms and with or without consideration, as it determines, may do the any of the following:
(1) Lend or donate money to, or perform services for the authority.
(2) Donate, sell, convey, transfer, lease, or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any transportation systems, any interest in any system, and any franchise.
(3) Provide that all or a portion of the taxes or funds available or to become available to, or required by law to be used by it for public transportation service or for the support of a public transportation system, be transferred or paid directly to the authority as the funds become available.
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that may be necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, acquisition, or operation of systems for the provision of public transportation services.
*(Act 2013-380, p. 1389, §13.)*
##### **§ 11-32-14** Exemption from Taxes, Fees, and Costs {#sec-11-32-14 omnilex-key=us-al-statutes--title-11--11-32-14}
The property and income of the authority, all bonds issued by the authority, the income from the bonds, conveyances by or to the authority, and leases, mortgages, and deeds of trust by or to the authority shall be exempt from all taxation in the State of Alabama. The authority shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities that an authority may engage in. The authority may not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Act 2013-380, p. 1389, §14.)*
##### **§ 11-32-15** Incorporation of Subsequent Authority {#sec-11-32-15 omnilex-key=us-al-statutes--title-11--11-32-15}
*[Repealed]*
Repealed by Act 2014-264, §2, effective July 1, 2014.
*(Act 2013-380, p. 1389, §15.)*
##### **§ 11-32-16** Exemption from Other State Supervision and Control {#sec-11-32-16 omnilex-key=us-al-statutes--title-11--11-32-16}
This chapter is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions. Except as in this chapter expressly otherwise provided, no proceeding, notice, or approval shall be required for the incorporation of any authority or the amendment of its certificate of incorporation, the acquisition of any property or transit system, or the issuance of any bonds, mortgage and deed of trust, or trust indenture. The authority, every transit system of the authority, any public transportation service provided by the authority, and the rates and charges of the authority shall be exempt from all jurisdiction of, and all regulation and supervision by, the Public Service Commission. Neither a public hearing nor the consent of the state Department of Finance shall be prerequisite to the issuance of bonds by the authority.
*(Act 2013-380, p. 1389, §16.)*
##### **§ 11-32-17** Use of Public Roads {#sec-11-32-17 omnilex-key=us-al-statutes--title-11--11-32-17}
Any authority may use the rights-of-way of all public roads in the authorizing county without securing the prior approval of the state or of its agencies or departments or the governing body of a county and subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama of 2022, except that nothing herein shall be construed to exempt any authority from the requirements of Section 23-1-4. The authority shall have the duty to restore at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in constructing a transit system or performing any of its other corporate functions.
*(Act 2013-380, p. 1389, §17.)*
##### **§ 11-32-18** Annual Audit {#sec-11-32-18 omnilex-key=us-al-statutes--title-11--11-32-18}
Within 30 days following the close of each fiscal year the authority shall cause an audit of its books and records to be made for the fiscal year by an independent certified public accountant. Within 90 days following the close of each fiscal year the authority shall furnish a copy of the audit to the governing bodies of the authorizing county, the principal municipality, and each participating municipality.
*(Act 2013-380, p. 1389, §18.)*
##### **§ 11-32-19** Labor Unions {#sec-11-32-19 omnilex-key=us-al-statutes--title-11--11-32-19}
Each employee of the authority may join or participate in a labor union. No employee of the authority shall be subject to the provisions of any civil service or merit system or to the rules or regulations of any personnel board that might otherwise be applicable.
*(Act 2013-380, p. 1389, §19.)*
##### **§ 11-32-20** Dissolution of Transit Authority {#sec-11-32-20 omnilex-key=us-al-statutes--title-11--11-32-20}
The authority shall be a nonprofit corporation, and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation except as provided in this section. At any time when the authority has no bonds or outstanding obligations, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of the resolution in the office of the judge of probate of the authorizing county, the authority shall be dissolved and in the event it owned any property at the time of its dissolution, the title to its properties shall pass to, and vest equally in, the principal municipality and the authorizing county, as tenants in common.
*(Act 2013-380, p. 1389, §20.)*
##### **§ 11-32-21** Employee Protective Provisions {#sec-11-32-21 omnilex-key=us-al-statutes--title-11--11-32-21}
(a) The rights, benefits, and other employee protective conditions and remedies of Section 13(c) of the Urban Mass Transportation Act of 1964, as amended, 49 U.S.C. 1609(c), as determined by the Secretary of Labor, shall apply to the operation by the authority of any public transportation service and to any contract or other arrangement for the operation of such service. If the authority acquires an existing transit system, the authority shall assume and observe all existing labor contracts and pension obligations. All employees of the system except executive and administrative officers shall be transferred to and appointed as employees of the authority, subject to all rights and benefits of this section. These employees shall be given seniority credit and sick leave, vacation, insurance, and pension credits in accordance with the records or labor agreements from the acquired transit system. The authority shall assume the obligations of any transit system acquired by it with regard to wages, salaries, hours, working conditions, sick leave, health and welfare, and pension or retirement provisions for employees. The authority and the employees, through their representatives for collective bargaining purposes, shall take whatever action may be necessary to have pension trust funds, presently under the joint control of the acquired transit system and the participating employees through their representatives, transferred to a trust fund to be established, maintained, and administered jointly by the authority and the participating employees through their representatives. An employee of any acquired transit system who is transferred to a position with the authority may not, by reason of the transfer, be placed in any worse position with respect to worker’s compensation, unemployment compensation, pension, seniority, wages, sick leave, vacation, health and welfare insurance, or any other benefits than he or she enjoyed as an employee of the acquired transportation system.
(b) Prior to commencing to operate any public transportation service, or entering into any contractual or other arrangement for any operation of the service, the authority shall take the action as may be necessary to extend to the employees of the transit system, in accordance with seniority, the first opportunity for reasonable comparable employment in any new jobs in respect to the operations for which they can qualify after a reasonable training period. The wages, hours, and working conditions for employees assigned to the new operations shall be a proper subject of negotiation with the labor organizations representing the employees of the transit system. Whenever any labor dispute arises in the operation of any public transportation service operated by or for the authority, and collective bargaining does not result in an agreement, the authority shall offer to submit the dispute to final and binding arbitration by a board composed of three persons, one appointed by the authority, one appointed by the representative of the employees, and a third member, who shall serve as chair, to be selected from a current listing of the membership of the National Academy of Arbitrators by agreement of the parties, or in the absence of such agreement, by obtaining a listing of seven of the members of the National Academy from the American Arbitration Association and by alternately striking a name from the list so supplied until only one name remains. The representative of the employees and the authority shall determine by lot who shall first strike from the list. The decision of a majority of the arbitration board shall be final and binding upon the parties thereto. The expenses of arbitration shall be borne equally by the parties. Each party shall bear his or her own cost.
(c) Notwithstanding any other provision of law, the authority shall make deductions from wages and salaries of its employees upon receipt of authorization therefor for the payment of union dues, fees, or assessments, for the payment of contributions pursuant to any health and welfare plan or pension plan, or for any other purpose for which deductions may be authorized by employees of any private employer, where the deductions are pursuant to a collective bargaining agreement entered into or assumed by the authority.
*(Act 2013-380, p. 1389, §21.)*
##### **§ 11-32-22** Applicability to Birmingham-Jefferson County Transit Authority {#sec-11-32-22 omnilex-key=us-al-statutes--title-11--11-32-22}
(a) The provisions of this chapter shall apply to the Birmingham-Jefferson County Transit Authority and to any other authority organized pursuant to Act 993 of the 1971 Regular Session (Acts 1971, p. 1787), as amended.
(b)The certificate of incorporation filed for the Birmingham-Jefferson County Transit Authority on or about April 3, 1972, as amended, is confirmed as a validly filed and amended certificate of incorporation for an authority organized under this chapter, except that any provisions of the certificate of incorporation are repealed or amended to the extent of a conflict with this chapter. In the event that the certificate of incorporation of the Birmingham-Jefferson County Transit Authority is amended after May 24, 2013, it shall not be required that the amendment correct any conflicts with this chapter. As to the Birmingham-Jefferson County Transit Authority, Jefferson County is the authorizing county, and the City of Birmingham is the authorizing municipality.
(c) All actions taken by the board of the Birmingham-Jefferson County Transit Authority prior to May 24, 2013, are confirmed.
(d) The rates, fees, and charges imposed by the Birmingham-Jefferson County Transit Authority prior to and as of May 24, 2013, are confirmed.
(e) The fact that this chapter is enacted and that Act 993 of the 1971 Regular Session (Acts 1971, p. 1787), Act 204 of the 1971 Third Special Session (Acts 1971, p. 4472), Act 329 of the 1973 Regular Session (Acts 1973, p. 459), Act 508 of the 1973 Regular Session (Acts 1973, p. 748), and Act 87-449 of the 1987 Regular Session (Acts 1987, p. 663) are repealed shall not result in any of the following:
(1) An underpayment or overpayment to the Birmingham-Jefferson County Transit Authority by the authorizing county, the principal municipality, or any participating municipality, except as the same may be caused by a change in fiscal years or the change in payment procedures with the principal municipality.
(2) A disruption of the services provided by the transit system.
(3) A declaration that any outstanding contracts with the authority are void or invalid.
(4) A shortening in the current term of any director of the authority as of May 24, 2013.
*(Act 2013-380, p. 1389, §22.)*
##### **§ 11-32-23** Funding - Annual Payments {#sec-11-32-23 omnilex-key=us-al-statutes--title-11--11-32-23}
The governing body of the authorizing county, principal municipality, and each participating municipality shall pay to the authority during each fiscal year a sum to be determined in accordance with Sections 11-32-24, 11-32-25, and 11-32-30.
*(Act 2013-380, p. 1389, §23.)*
##### **§ 11-32-24** Funding - Amount Paid by Authorizing County {#sec-11-32-24 omnilex-key=us-al-statutes--title-11--11-32-24}
The annual amount to be paid to the authority by the authorizing county is to be ascertained by first determining the amount of ad valorem taxes collected for the county from within the city limits of each municipality served by the authority. The authorizing county shall pay to the authority each year out of its general funds an amount equal to five and one-half percent (5.5%) of the first eighteen million, one hundred eighty-one thousand, eight hundred nineteen dollars ($18,181,819) of ad valorem taxes collected within the city limits of all municipalities served by the authority plus and two and one-half percent (2.5%) of the ad valorem tax collected within the city limits of all municipalities served by the authority in excess of eighteen million, one hundred eighty-one thousand, eight hundred nineteen dollars ($18,181,819). In addition, the governing body of the authorizing county shall, at its sole discretion, make a determination prior to the end of each fiscal year as to the number of residents of the county residing in the unincorporated area thereof having access to services by the authority within reasonable walking distances of their residences, but the number shall not be less than in any preceding year, unless there is a reduction of routes serving the unincorporated area or the annexation of a portion of the unincorporated area served by the authority by a municipality. Such residents shall be deemed to be served by the authority and there shall be paid annually out of the general funds of the authorizing county a sum equal to one dollar ($1.00) per capita of the residents thus deemed to be served.
*(Act 2013-380, p. 1389, §24.)*
##### **§ 11-32-25** Funding - Amount Paid by Principal Municipality {#sec-11-32-25 omnilex-key=us-al-statutes--title-11--11-32-25}
The amount to be paid to the authority by the principal municipality during each fiscal year shall be ascertained by determining the amount of ad valorem tax collected for the authorizing county within the city limits of the principal municipality, in addition to the amount determined in Section 11-32-30. The principal municipality shall pay to the authority annually from its general funds an amount equal to 10 percent of the ad valorem tax collected by the authorizing county within the city limits of the principal municipality each year.
*(Act 2013-380, p. 1389, §25.)*
##### **§ 11-32-26** Request for Service {#sec-11-32-26 omnilex-key=us-al-statutes--title-11--11-32-26}
On or prior to the beginning of the seventh month before the start of each fiscal year, the principal municipality and each municipality located in the authorizing county which desires to be served by the authority during the forthcoming fiscal year shall file a written request with the authority for the service, which request shall set forth the routes and frequency of service requested.
*(Act 2013-380, p. 1389, §26.)*
##### **§ 11-32-27** Budget Requirements {#sec-11-32-27 omnilex-key=us-al-statutes--title-11--11-32-27}
On or prior to the beginning of the fifth month before the start of each fiscal year, the authority shall prepare and submit to the authorizing county, the principal municipality, and each municipality which has requested to be served by the authority pursuant to Section 11-32-26, a written budget for the authority for the forthcoming fiscal year. The budget shall be prepared by the authority and shall set forth the number of hours of operation and the anticipated cost per hour of operation for the forthcoming fiscal year for the service requested by each municipality pursuant to Section 11-32-26, exclusive of anticipated fare box revenue, federal operating subsidies and funds received by the authority pursuant to Sections 11-32-24 and 11-32-25; if the cost per hour of operation shall include all costs for the provision of public transportation service, including, but not limited to, the costs of operation, maintenance, administration, and capital costs of the authority. If a municipality requests service which requires that vehicles travel through a municipality which is not served by the authority or on a limited access roadway where there is no pick-up or discharge of passengers, the municipality requesting the service shall assume and be responsible for the operating time of the vehicles from the point of their last scheduled pick-up of passengers until the vehicles reach the city limits of the requesting municipality. The principal municipality shall be authorized to review such budget, and by written notice to the authority given on or prior to the fifteenth day of the fifth month before the start of each fiscal year, reduce such budget in any area in which it deems the budget to be excessive. Neither the authorizing county, principal municipality, nor a participating municipality shall have any further power to approve or disapprove expenditures of the authority.
*(Act 2013-380, p. 1389, §27.)*
##### **§ 11-32-28** Certification of Routes {#sec-11-32-28 omnilex-key=us-al-statutes--title-11--11-32-28}
On or prior to the beginning of the fourth month before the start of each fiscal year, the principal municipality and each municipality in the authorizing county which elects to be served by the authority shall certify in writing to the authority the routes to be operated in the municipality during the forthcoming fiscal year and agree to make the payments to the authority provided in Section 11-32-29. The routes that are certified shall constitute the routes to be operated by the authority in the municipality during the forthcoming fiscal year, subject to equipment availability and to the adjustments as reasonably deemed necessary by the authority in order to provide for the efficient operation of transit service in the municipality and in the authorizing county as a whole. Any change in the routes during the fiscal year shall be undertaken only with the approval of the municipality, except the authority may suspend, reduce, or terminate the route, routes, or services within a municipality without the approval of the municipality if the municipality fails timely to pay for the services.
*(Act 2013-380, p. 1389, §28.)*
##### **§ 11-32-29** Costs of Operation {#sec-11-32-29 omnilex-key=us-al-statutes--title-11--11-32-29}
All of the municipalities served by any route operated by the authority may by written agreement filed with the authority agree to allocate the costs of operation of the route on a basis different from that otherwise provided by this chapter.
*(Act 2013-380, p. 1389, §29.)*
##### **§ 11-32-30** Certification of Amounts to Be Paid to Authority {#sec-11-32-30 omnilex-key=us-al-statutes--title-11--11-32-30}
Subject to any agreement filed with the authority pursuant to Section 11-32-29, the annual amount to be paid to the authority by the principal municipality and each municipality in the authorizing county which elects to be served by the authority is to be ascertained by multiplying the total projected hours of operation in the municipality for the forthcoming fiscal year based upon the routes certified by the municipality pursuant to Section 11-32-28, as adjusted by the authority as provided in Section 11-32-28, in order to provide for the efficient operation of transit service, times the cost per hour of operation set forth by the authority in the budget submitted by the authority pursuant to the provisions of Section 11-32-27. The amounts shall be certified to the authorizing county tax collector, revenue commissioner, or director of revenue of the authorizing county, if any, by the authority on or prior to September 15 of each year.
*(Act 2013-380, p. 1389, §30.)*
##### **§ 11-32-31** Payment Schedule; Sufficiency of Funds {#sec-11-32-31 omnilex-key=us-al-statutes--title-11--11-32-31}
(a) The amounts required to be paid to the authority under this chapter shall be paid by the authorizing county tax collector for the authorizing county, the principal municipality, and participating municipalities upon the payment schedule established pursuant to the terms of this chapter.
(b) If the authorizing county tax collector does not have ad valorem taxes due the authorizing county, the principal municipality, or any participating municipality sufficient to pay the amounts due under the provisions of this chapter, then the balance due as to any payment under this chapter shall be paid to the authority by the director of revenue of the authorizing county, if any, from any tax monies in his or her possession for distribution to the authorizing county, principal municipality, or participating municipality.
(c) If as to any payment due under this chapter, neither the authorizing county tax collector nor the revenue commissioner of the authorizing county, if any, shall have sufficient tax monies for distribution to the authorizing county, principal municipality, or a participating municipality in an amount sufficient to make the payment, then the balance of the payment shall be a priority claim subject, however, to any claims having a priority under or pursuant to any provision of the Constitution of Alabama of 2022, or the Constitution of the United States, against any and all other funds of the authorizing county, or the participating municipality, and shall be paid directly by the authorizing county, principal municipality, or participating municipality to the authority.
(d) It is expressly provided that neither the authorizing county tax collector, revenue commissioner, nor the director of revenue of the authorizing county, if any, shall pay to the authority any monies, the payment of which would impair the obligation under any contract entered into by the authorizing county, the principal municipality, or any participating municipality prior to May 24, 2013, or any tax monies from levies made for a specific purpose under the Constitution of Alabama of 2022.
*(Act 2013-380, p. 1389, §31.)*
##### **§ 11-32-32** Payments Made According to Schedule {#sec-11-32-32 omnilex-key=us-al-statutes--title-11--11-32-32}
(a) The payments required hereby for the authorizing county, principal municipality, and each participating municipality shall be made on a monthly basis or upon other payment schedule of the authorizing county, the principal municipality, or such participating municipality shall agree to with the authority.
(b) If payments are made for the principal municipality and the authorizing county on a monthly basis, each payment shall be one-twelfth of the annual amount which would have been due based upon ad valorem tax collections for the preceding fiscal year with any deficit in the amount thus paid on such basis computed after ad valorem tax collections for the fiscal year in question are known, to be made up by the principal municipality and the authorizing county during the month of January next following the end of each fiscal year.
(c) If payments are made for participating municipalities on a monthly basis, each payment shall be one-twelfth of the annual amount due determined in accordance with the provisions of Section 11-32-29.
*(Act 2013-380, p. 1389, §32.)*
##### **§ 11-32-33** Examination and Audits of Books and Records {#sec-11-32-33 omnilex-key=us-al-statutes--title-11--11-32-33}
The authorizing county, principal municipality, and each participating municipality shall have the right to examine and audit, at their expense, the books and records of the authority at any time during its regular business hours.
*(Act 2013-380, p. 1389, §33.)*
## **Title 2** Provisions Applicable to Municipal Corporations Only
### **Chapter 40** General Provisions
#### **Article 1** In General
##### **§ 11-40-1** Municipalities Declared Bodies Politic and Corporate; Seal Generally; Name; Powers, Duties, and Authority Generally {#sec-11-40-1 omnilex-key=us-al-statutes--title-11--11-40-1}
All municipal organizations now existing in the State of Alabama, whether incorporated under the general laws of the state or by special act of the legislative department of the state government, and now exercising corporate powers or functions and all towns and cities that may hereafter be incorporated under the provisions of this title shall be bodies politic and corporate, using a common seal, which may at any time be changed, and having perpetual succession under the name now used or hereafter assumed as provided in this title, and each under such name as the “City of _____” or “Town of _____,” as the case may be, shall sue and be sued, contract and be contracted with, acquire property by purchase, gift, devise, or appropriation for any municipal purpose authorized in this title, and the same shall be held, managed, and controlled by the said municipal corporations under the applicable provisions of law contained in this title and all rules, regulations, resolutions, and ordinances that may be required to carry out any or all of the applicable provisions of this title shall be adopted by the several councils thereof. Such municipal corporations shall be invested with the full powers, duties, and authority granted in this title.
*(Code 1907, §1046; Code 1923, §1739; Code 1940, T. 37, §1.)*
##### **§ 11-40-2** Seal {#sec-11-40-2 omnilex-key=us-al-statutes--title-11--11-40-2}
All cities and towns shall have a seal, in the center of which shall be the words, “city seal” or “town seal,” as the case may be, and around the margin the name of the city or town, which shall be affixed to all transcripts, orders or certificates which it may be necessary or proper to authenticate.
*(Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-40-3** Acquisition of Rights, Power, and Authority Granted {#sec-11-40-3 omnilex-key=us-al-statutes--title-11--11-40-3}
Affirmative action shall not be necessary for cities and towns to acquire the rights, power, and authority granted in this title. Municipalities shall, however, hold such elections and pass such ordinances and resolutions as are required by this title.
*(Code 1907, §1049; Code 1923, §1740; Code 1940, T. 37, §2.)*
##### **§ 11-40-3.1** Incorporation and Actions of Certain Municipalities Ratified, Validated, and Confirmed {#sec-11-40-3.1 omnilex-key=us-al-statutes--title-11--11-40-3.1}
Notwithstanding any provision of law, any municipal corporation that was organized pursuant to the Code of Alabama of 1896, Chapter 94, Article 1, commencing with §2937, prior to the adoption of the Constitution of Alabama of 1901, that is currently functioning as an active municipality and has been continuously functioning as an active municipality, is hereby ratified, validated, and confirmed as a municipality without regard to any possible irregularity in its incorporation and without regard to any attempt to abolish the municipality. Any action of the municipality since its incorporation is ratified, validated, and confirmed.
*(Act 2018-247, §1.)*
##### **§ 11-40-4** Property Rights, Rights of Action, Etc., Preserved and Enforced Notwithstanding Change of Name or Organization {#sec-11-40-4 omnilex-key=us-al-statutes--title-11--11-40-4}
Rights of action and rights of property arising before or existing at the time of a change of corporate organization, as directed in this title, shall be enforced against or in favor of such city or town, and all civil actions then pending in favor of or against municipal corporations shall continue to judgment unaffected by this title and shall be enforced in favor of or against such city or town, as the case may be, notwithstanding a change of name or of organization.
*(Code 1907, §1050; Code 1923, §1741; Code 1940, T. 37, §3.)*
##### **§ 11-40-5** Corporate Limits Not Altered or Affected by Adoption of Code {#sec-11-40-5 omnilex-key=us-al-statutes--title-11--11-40-5}
The corporate limits of any city or town shall not be altered or affected by the adoption of this Code.
*(Code 1907, §1051; Code 1923, §1742; Code 1940, T. 37, §4.)*
##### **§ 11-40-6** Municipal Corporations Classified as Cities or Towns; Holding of Election After Change in Government of Municipality {#sec-11-40-6 omnilex-key=us-al-statutes--title-11--11-40-6}
Municipal corporations now existing or hereafter organized under this title containing 2,000 or more inhabitants shall be called cities. All incorporated municipalities containing less than 2,000 inhabitants shall be called towns. The last census, whether federal or taken as authorized in this title, shall be used in determining the population of a city or town.
At the next election more than four months after the one hundred twentieth day after the first day of the first regular business session of the legislature held next after the publication by the federal government of the regular federal decennial population census for Alabama, if the municipality shows a population which authorizes a change in its government under this title, the proper officers for such a city shall be elected and perform the duties prescribed in this title.
*(Code 1907, §1052; Code 1923, §1743; Code 1940, T. 37, §5; Acts 1955, No. 162, p. 408.)*
##### **§ 11-40-7** Change of Name {#sec-11-40-7 omnilex-key=us-al-statutes--title-11--11-40-7}
Any city or town may change its corporate name by passing an ordinance stating the new name proposed and submitting the question of change to a vote of the qualified electors of such municipality at the next general municipal election to be held therein. The result of the election shall be ascertained by the officers holding such general election, and return shall be made to the council or other governing authorities which, in the event that a majority of the votes cast at such election are in favor of the change, shall pass a resolution or ordinance declaring the result of the election and stating the new name of the city or town.
*(Code 1907, §1074; Code 1923, §1768; Code 1940, T. 37, §6.)*
##### **§ 11-40-8** Division of Municipalities into Wards {#sec-11-40-8 omnilex-key=us-al-statutes--title-11--11-40-8}
The several councils of cities or towns shall divide such cities or towns into wards having as nearly as may be the same number of inhabitants, the lines thereof conforming to the center of the streets or alleys and being rectangular as far as practicable.
Ward lines, having once been fixed, shall not be changed by the council within three months previous to an election nor within 18 months of the time last established; except, that in the cases where a census showing a population authorizing a change in the form of government shall have been taken or where, within such time, additional territory shall have been annexed to such city or town, such councils shall have the right to create new wards or annex such territory to wards already established.
*(Code 1907, §§1062, 1065; Acts 1909, No. 56, p. 100; Code 1923, §§1753, 1756; Code 1940, T. 37, §7.)*
##### **§ 11-40-9** Continuation of Present Organization {#sec-11-40-9 omnilex-key=us-al-statutes--title-11--11-40-9}
The organization of cities and towns existing at the adoption of this Code shall continue until changed in accordance with the provisions of this Code or some subsequent statute.
*(Code 1923, §1755; Code 1940, T. 37, §8.)*
##### **§ 11-40-10** Police Jurisdiction; Force and Effect of Ordinances; Jurisdiction on Islands and Offshore Water Adjacent to Florida; Annexations {#sec-11-40-10 omnilex-key=us-al-statutes--title-11--11-40-10}
(a)(1) Except as otherwise provided in this section, the police jurisdiction in municipalities having 6,000 or more inhabitants shall cover all adjoining territory within three miles of the corporate limits, and in municipalities having less than 6,000 inhabitants, the police jurisdiction shall cover all adjoining territory within a mile and a half of the corporate limits of the municipality.
(2)a. Except as provided in paragraph b., notwithstanding any other provisions of this section, the police jurisdiction of a municipality outside of the corporate limits of the municipality shall not extend beyond the police jurisdiction of the municipality on January 1, 2021. The annexation of property by general or local law shall not extend the area of a police jurisdiction of a municipality after January 1, 2021, except to include that property annexed into the corporate limits.
b. Notwithstanding paragraph a., the governing body of a municipality having less than 6,000 inhabitants according to the 2010 federal decennial census which has 6,000 or more inhabitants according to the 2020 federal decennial census, not later than 180 days following the final release of the 2020 federal decennial census population data by the United States Census Bureau, may extend its police jurisdiction to include all territory within three miles of the corporate limits upon adoption of an ordinance.
(3)a. Any municipality, by ordinance, may eliminate or reduce its police jurisdiction outside the corporate limits of the municipality by any number of half-mile increments, which shall take effect on the first day of January following its adoption on or before the preceding first day of October. A municipality eliminating or reducing its police jurisdiction outside the corporate limits shall send written notice to the county commission no later than 30 days following the adoption of the ordinance. A municipality shall cease to levy any licenses or fees under Section 11-51-91 or any other taxes, licenses, or fees, except for those relating to the regulation of subdivisions, within the area removed from the police jurisdiction. A municipality may reduce its police jurisdiction pursuant to this paragraph no more than once during any 24 month period. An ordinance adopted under this paragraph cannot otherwise be amended, altered, or repealed, except by local law.
b. Any municipality, by ordinance, may cease to provide any service to its police jurisdiction outside its corporate limits, which shall take effect on the first day of January following its adoption on or before the preceding first day of October. A municipality ceasing to provide a service in its police jurisdiction outside its corporate limits shall send written notice to the county commission no later than 30 days following the adoption of the ordinance. A municipality may adopt an ordinance pursuant to this paragraph no more than once during any 24 month period. An ordinance adopted under this paragraph cannot otherwise be amended, altered, or repealed, except by act of the Legislature.
(b)(1)a. Ordinances of a municipality enforcing police or sanitary regulations and prescribing fines and penalties for violations thereof shall have force and effect only in the corporate limits of the municipality and on any property or rights-of-way belonging to the municipality, and on any drinking water reservoir owned by the municipality and on any property adjoining that reservoir.
Ordinances of a county enforcing police or sanitary regulations and prescribing fines and penalties for violations thereof shall have force and effect in any area in that county not lying within the corporate limits of any municipality or on any property or rights-of-way belonging to a municipality and that is not a drinking water reservoir owned by the municipality or on any property adjoining that reservoir.
b. Ordinances of a municipality prescribing fines and penalties for violations thereof which are state misdemeanors adopted as municipal ordinance violations shall have force and effect in the police jurisdiction of the municipality.
(2)a. Except as provided in paragraph b., a municipality enforcing ordinances regulating the construction of buildings in the area of its police jurisdiction outside the corporate limits on January 1, 2021, including the issuance of building permits, inspection of construction, and enforcement of building codes, may continue to adopt and enforce ordinances regulating the construction of buildings within the area of its police jurisdiction outside the corporate limits.
b.1. In any county where the county commission is enforcing ordinances regulating the construction of buildings in the area of a municipality’s police jurisdiction outside the corporate limits of the municipality, the municipality shall discontinue enforcing any ordinance regulating the construction of buildings within that area no later than 24 months after the receipt of written notice by the municipal governing body from the county commission detailing that the county commission is enforcing those ordinances, except as provided by agreement adopted under subparagraph 2.
2. The county and the municipality may enter into an agreement for the municipality to regulate by ordinance the construction of buildings in the area of the municipality’s police jurisdiction outside its corporate limits upon adoption of an ordinance by the municipal governing body and a resolution by the county commission. The county or the municipality may waive this agreement upon adoption of an ordinance by the municipal governing body or a resolution by the county commission; provided, that the waiver shall take effect 24 months after receipt of written notice by the non-waiving body from the waiving body detailing the adoption of the ordinance or resolution.
c. A municipality may not collect a fee for a building permit unless the municipality conducts a building inspection. The cost of the fee for any building permit shall be reasonably related to the cost of providing building code enforcement and inspection services, and revenue from the fees shall be used for building code enforcement and inspection services and not for general revenue purposes.
(3) In order for an ordinance adopted after July 26, 2021, to have force and effect in a police jurisdiction of a municipality or town, the municipal governing body shall provide a 30-day notice that the ordinance shall be effective in the police jurisdiction. The notice given shall be the same as required for adoption of an ordinance under Section 11-45-8. Additionally, if available at no cost to the municipality, the notice shall be submitted to any state-operated website providing information to businesses as directed by the Department of Revenue. No ordinance adopted after September 1, 2015, may be enforced against an individual or entity in the police jurisdiction affected by the ordinance until and unless the municipality has complied with the notice requirements provided for in this section.
(c)(1) Notwithstanding any provision of this section to the contrary, the police jurisdiction of any municipality which pursuant to this section extends to include part of any island which has water immediately offshore adjacent to the boundary of the State of Florida, upon approval of the council of the municipality, shall extend to include the entire island including the water adjacent to the island extending to the existing police jurisdiction of the municipality and extending to the Florida state boundary where applicable.
(2) Nothing in this section shall prohibit or restrict a municipality from exercising authority within existing rights-of-way, in any public waterway immediately adjacent to territory within its corporate limits, on any uninhabited island which lies directly across a public waterway from territory within the corporate limits and would be contiguous with that territory except for the intervention of that public waterway, or on any public land or beach within its police jurisdiction. For purposes of this subdivision, “uninhabited island” means any land surrounded by water which has no residential or commercial buildings on it.
(d) When any noncontiguous property has been annexed into a municipality, the municipal governing body shall not exercise any jurisdiction or authority in any portion of the police jurisdiction that was extended beyond the corporate limits as a result of the annexation, notwithstanding any other law to the contrary.
(e) In no event shall a municipality, its officers, agents, contractors, subcontractors, or employees be liable for a reduction or elimination of the municipal police jurisdiction or the reduction or elimination of any service provided within the police jurisdiction, including, but not limited to, any equitable relief or indirect, incidental, special, punitive, exemplary, or consequential damages whatsoever arising in any manner as a result of the elimination of the police jurisdiction.
(f) Act 2021-297 does not affect any public or private contracts, or any mutual aid agreements between law enforcement, fire service, public safety, or emergency service agencies.
*(Code 1907, §1230; Code 1923, §1954; Code 1940, T. 37, §9; Act 2003-388, p. 1093, §1; Act 2015-361, p. 1101, §1; Act 2016-391, p. 1046, §1; Act 2021-297, §§1,4.)*
##### **§ 11-40-10.1** Contracts for Certain Law Enforcement Services of Class 6 Municipality {#sec-11-40-10.1 omnilex-key=us-al-statutes--title-11--11-40-10.1}
(a) The governing body of a Class 6 municipality may enter into contracts which provide for the police department of the municipality to provide law enforcement services beyond the corporate limits of the municipality, but within the police jurisdiction of the municipality, and may prescribe the conditions under which the services may be rendered. The governing body of the municipality may enter into a contract or contracts with any county or county board, any property owner of a manufacturing or industrial concern, or any property owner within any residential or business area for its police department to render law enforcement services on the terms as may be agreed to by the governing body of a Class 6 municipality and the contracting party or parties.
(b) Notwithstanding subsection (a), the governing body of the municipality may not enter into a contract or contracts with any county or county board, any property owner of a manufacturing or industrial concern, or any property owner within any residential or business area for its police department to render law enforcement services to enforce traffic regulations, including speeding and enforcement of speed zones.
(c) When the police department of a Class 6 municipality is operating pursuant to a contract or contracts pursuant to this section on any call beyond the corporate limits, but within the police jurisdiction of the Class 6 municipality, the department shall be deemed to be operating in a governmental capacity and subject to the same liability for injuries as the department would be if the department was otherwise operating within the corporate limits of the Class 6 municipality.
*(Act 2001-693, p. 1452, §1.)*
##### **§ 11-40-10.2** Rehiring of Certain Law Enforcement Officers Retired from State or Local Law Enforcement Agency {#sec-11-40-10.2 omnilex-key=us-al-statutes--title-11--11-40-10.2}
(a) Notwithstanding any provision of law to the contrary, a Class 5, Class 6, Class 7, or Class 8 municipality may rehire a retired law enforcement officer to perform duties as needed if the mayor, or town or city council, as appropriate, declares all of the following:
(1) There is a critical personnel shortage such that the rehiring is necessary to provide public safety services.
(2) The retired law enforcement officer retired from any state or local law enforcement agency within the State of Alabama which subscribes to the same pension system as the reemploying authority, and has been retired for at least 45 consecutive days prior to reemployment with a municipality.
(3) The retired law enforcement officer, at the time of retirement, met the qualifications as a law enforcement officer provided in Section 36-21-46, and the standards and rules issued by the Alabama Peace Officers’ Standards and Training Commission which were in place at the time of his or her retirement.
(4) The poverty rate of the county in which the municipality is situated is greater than 25 percent, as measured by the most recent decennial census.
(b) The chief of police, mayor, or town or city council, as appropriate, shall approve a retired law enforcement officer for reemployment pursuant to the established guidelines for new hires of the reemploying authority.
(c) The number of retirees from the Alabama State Law Enforcement Agency reemployed by a municipality pursuant to this section may not exceed 10 percent of the reemploying authority’s entire authorized law enforcement officer force on September 1, 2019.
(d) The job duties of a rehired retired law enforcement officer by a reemploying authority shall not consist primarily of an administrative nature, and shall be limited to tasks which are traditionally performed by patrolmen and detectives. For the purposes of this article, “tasks which are traditionally performed by patrolmen and detectives” includes:
(1) Providing for public safety by maintaining order, responding to emergencies, protecting people and property, enforcing motor vehicle and criminal laws, and promoting good community relations.
(2) Identifying, pursuing, and arresting suspects and perpetrators of criminal acts.
(3) Obtaining warrants and arresting suspects and perpetrators of criminal acts.
(4) Recording facts to prepare reports that document incidents and activities.
(5) Reviewing facts of incidents to determine if a criminal act or a statutory violation was involved.
(6) Rendering aid to accident victims and other persons requiring first aid for physical injuries.
(7) Testifying in court to present evidence or acting as witness in traffic and criminal cases.
(8) Evaluating complaint and emergency-request information to determine response requirements.
(9) Patrolling specific areas on foot, horseback, bicycle, or motorized conveyance and responding promptly to calls for assistance.
(10) Monitoring, noting, reporting, and investigating suspicious persons and situations, safety hazards, and unusual or illegal activity in patrol area.
(11) Investigating traffic accidents and other accidents to determine causes and to determine if a crime has been committed.
(12) Photographing or drawing diagrams of crime or accident scenes and interviewing principals and eyewitnesses.
(13) Monitoring traffic to ensure motorists observe traffic regulations and exhibit safe driving procedures.
(14) Relaying complaint and emergency-request information to appropriate agency dispatchers.
(15) Issuing citations or warnings to violators of motor vehicle ordinances.
(16) Directing traffic flow and rerouting traffic in case of emergencies.
(17) Informing citizens of community services and recommending options to facilitate longer-term problem resolution.
(18) Providing road information to assist motorists.
(19) Processing prisoners, and preparing and maintaining records of prisoner bookings and prisoner status during booking and pre-trial process.
(20) Inspecting public establishments to ensure compliance with rules and regulations.
(21) Acting as official escorts, such as when leading funeral processions or firefighters.
(e) The period of reemployment for a retired law enforcement officer pursuant to this section may be no more than a total of 10 years from the date of rehiring by the reemploying authority.
(f) The compensation of the rehired retired law enforcement officer may not exceed the compensation that he or she received at the time of his or her retirement.
(g) Notwithstanding subsection (f), a retired law enforcement officer rehired under this section is subject to Section 36-27-8.2.
*(Act 2019-448, §1.)*
##### **§ 11-40-11** When Change in Form of Government Takes Effect {#sec-11-40-11 omnilex-key=us-al-statutes--title-11--11-40-11}
No change from the mayor-council form of municipal government to the commission form of municipal government hereafter directed by vote of the electors of any municipality in this state shall become effective until October 1 of the general municipal election year next following the election at which such change is voted.
No change from the commission form of municipal government to the mayor-council form of municipal government hereafter directed by vote of the electors of any municipality in this state shall become effective until October 1 of the general municipal election year next following the election at which such change is voted. The term of any commissioner which might expire before such date is hereby extended until such date when the form of government changes.
*(Acts 1959, No. 71, p. 477.)*
##### **§ 11-40-12** Classification of Municipalities {#sec-11-40-12 omnilex-key=us-al-statutes--title-11--11-40-12}
(a) There are hereby established eight classes of municipalities based on the population as certified by the 1970 federal decennial census, as authorized by Amendment No. 375, Constitution of Alabama of 1901, as follows:
Class 1: All cities with a population of 300,000 inhabitants or more;
Class 2: All cities with a population of not less than 175,000 and not more than 299,999 inhabitants;
Class 3: All cities with a population of not less than 100,000 and not more than 174,999 inhabitants;
Class 4: All cities with a population of not less than 50,000 and not more than 99,999 inhabitants;
Class 5: All cities with a population of not less than 25,000 and not more than 49,999 inhabitants;
Class 6: All cities with a population of not less than 12,000 and not more than 24,999 inhabitants;
Class 7: All cities with a population of not less than 6,000 and not more than 11,999 inhabitants;
Class 8: All cities and towns with a population of 5,999 inhabitants or less.
(b) The Legislature may refer, in the title thereof, to the class or classes of municipalities herein set out, in adopting general laws.
(c) Any municipality incorporated after June 28, 1979, shall be placed in one of the above classes according to the population of the municipality at the time of its incorporation.
*(Acts 1979, No. 79-263, p. 402, §§1, 3.)*
##### **§ 11-40-13** Notice Required for Enactment of General Law Applying to Single Municipality {#sec-11-40-13 omnilex-key=us-al-statutes--title-11--11-40-13}
No general law which at the time of its enactment applies to only one municipality of the state shall be enacted unless notice of the intention to apply therefor shall have been given and shown as provided in Section 106 of the Constitution of Alabama of 1901 for special, private, or local laws; provided, that such notice shall not be deemed to constitute such law a local law.
*(Acts 1979, No. 79-263, p. 402, §2.)*
##### **§ 11-40-14** Expense Allowances for Members of Governing Body of Class 1 Municipalities; Reimbursement for Expenses Incurred Beyond Corporate Limits {#sec-11-40-14 omnilex-key=us-al-statutes--title-11--11-40-14}
(a) The council or other governing body of Class 1 municipalities in Alabama and all municipalities in Alabama having a population of 250,000 or more according to the last and any subsequent federal decennial census, shall have the power and authority to grant to any member of such council or other governing body an amount of money for expenses incurred by such member on account of such member’s attending the business of such municipality within its corporate limits. The maximum expense allowance shall be $300.00 per month for each member of the council, except the president or chairman of the council or other governing body who may be given an allowance not to exceed $350.00 per month.
(b) In addition to the authority granted by subsection (a) of this section, the council or other governing body of Class 1 municipalities in Alabama and all municipalities in Alabama having a population of 250,000 or more according to the last and any subsequent federal decennial census commencing November 15, 1983, shall have the power and authority to grant to any member of such council or other governing body who was elected for a term commencing in November, 1981, an amount of money in addition to that provided in subsection (a) of this section, for expenses incurred by such member on account of such member’s attending the business of such municipality within its corporate limits. The maximum additional expense allowance shall be $200.00 per month for each such member of the council. No such additional expense allowance shall be paid to any council member after November 15, 1985.
(c) The provisions of this section shall not be construed so as to prevent any such member of such council or other governing body from being reimbursed for actual expenses incurred by him on or in connection with a trip on municipal business beyond the corporate limits of such municipality, which amount shall not accrue against the monetary amounts provided in subsection (a) of this section.
*(Acts 1982, No. 82-188, p. 217, §§1-3.)*
##### **§ 11-40-15** Exemption of Incorporated Municipalities and Municipal Boards from Uniform Disposition of Unclaimed Property Act {#sec-11-40-15 omnilex-key=us-al-statutes--title-11--11-40-15}
The incorporated municipalities and incorporated municipal boards of this state shall be exempt from the Uniform Disposition of Unclaimed Property Act, which is codified in sections 35-12-20 through 35-12-48.
*(Acts 1982, No. 82-483, p. 801.)*
##### **§ 11-40-16** Creation of Enterprise Zones Within Class 1 Cities; Purpose {#sec-11-40-16 omnilex-key=us-al-statutes--title-11--11-40-16}
(a) The Legislature of Alabama hereby finds and declares that the health, safety, and welfare of the people of Class 1 cities are enhanced by the continual encouragement, development, growth, and expansion of private enterprise within this state. That there are certain economically depressed areas in such cities that need particular attention to create new jobs, stimulate economic activity, and attract private sector investment rather than government subsidy to improve the quality of life of their citizens. It is the purpose of this section to encourage new economic activity in these depressed areas of such Class 1 cities by means of reduced taxes and the removal of unnecessary governmental barriers to the production and earning of wages and profits and the creation of economic growth.
(b) In order to further the purposes of this section, Class 1 cities are hereby authorized to create by ordinance one or more specific areas as enterprise zones which the governing body finds are areas of pervasive poverty, unemployment, and general economic distress, and, in order to encourage private investment, to promote the creation of jobs within such zones, such Class 1 cities are hereby authorized within such zones to initiate and carry out special programs which include, but are not limited to, the following:
(1) A reduction of municipal tax rates, municipal license rates, and/or municipal fees for governmental services within such zones.
(2) An increase in the level or efficiency of public services within the zone including provision for the providing of such services by nongovernment entities.
(3) Reduction, removal, simplification, or other modification of regulatory requirements applying within such zones.
(4) Involvement of private entities, organizations, neighborhood associations, and community groups with such zones, including the provision by such entities of jobs, job training, and technical, financial, and other assistance to employers, employees, and residents of such zones.
(5) Other services or modification of requirements as may be necessary or desirable to qualify for financial assistance to such Class 1 cities or private entities within such zones under any act of the Congress of the United States heretofore or hereafter enacted.
(c) In carrying out any program established in an enterprise zone created hereunder, the governing body of the county in which such Class 1 city is situated, and all agencies of such Class 1 city and county agencies created thereby, and the State of Alabama and all agencies thereof, are hereby authorized to carry out programs which include, but are not limited to, those authorized for such Class 1 cities under the provisions of subdivisions (1), (2), (3), and (4) of subsection (b) above.
*(Acts 1983, 2nd Ex. Sess., No. 83-142, p. 150.)*
##### **§ 11-40-17** Minimum Monthly Retirement and Survivor’s Benefits in Class 1 Municipalities {#sec-11-40-17 omnilex-key=us-al-statutes--title-11--11-40-17}
In all Class 1 municipalities, notwithstanding any provision to the contrary in any section of Article VI of Act No. 929, S. 676, Regular Session 1951 (Acts 1951, p. 1579), as amended, any benefit payable on a monthly basis to a participant or retiree under Act No. 929, S. 676, Regular Session 1951 (Acts 1951, p. 1579), as amended, shall not be of an amount less than $400.00 per month, and any survivor’s or spouse’s benefit payable on a monthly basis shall not be of an amount less than $160.00 per month.
*(Acts 1987, No. 87-227, p. 325, §1.)*
##### **§ 11-40-17.1** Class 1 Municipalities Authorized to Grant Pension Benefit Increases to Participants in Former Municipal Pension Plans {#sec-11-40-17.1 omnilex-key=us-al-statutes--title-11--11-40-17.1}
The city council of any Class 1 municipality may grant pension plan benefit increases to retired employee participants, and their beneficiaries, in terminated or inactive former pension plans of any Class 1 municipality, provided the increases shall not exceed the increases granted to retired participants in the City of Birmingham Retirement and Relief System created under Act No. 929, 1951 Regular Session, as amended. The benefit increases may be retroactive but shall be granted only after the city council receives the opinion of a licensed actuary regarding the cost of any increase.
*(Acts 1995, No. 95-562, p. 1174. §1.)*
##### **§ 11-40-17.2** Inclusion of Longevity Component in Monthly Salary Used to Calculate Extraordinary Disability Benefits in Class 1 Municipalities {#sec-11-40-17.2 omnilex-key=us-al-statutes--title-11--11-40-17.2}
(a) The Legislature finds that in all Class 1 municipalities some recipients of extraordinary disability benefits awarded prior to May 23, 1977, did not have a longevity component included in the monthly salary used to calculate their extraordinary disability benefit and hereby intends to remedy that omission.
(b) In all Class 1 municipalities, notwithstanding any provision to the contrary in any section of Article VI of Act No. 929, S. 676, Regular Session 1951, as amended, all recipients of extraordinary disability benefits whose longevity payment received during the year prior to their disability was not included in the amount of monthly salary used in the calculation of the extraordinary disability benefit shall receive an increase in the monthly benefit of 70 percent of one-twelfth of the total longevity payment received during the year immediately preceding the recipient’s disability application. The increase shall apply to future benefits only and no retroactive increase shall be paid.
*(Acts 1996, No. 96-549, p. 802, §§1, 2.)*
##### **§ 11-40-17.3** Retroactive Deferred Retirement Option Plan {#sec-11-40-17.3 omnilex-key=us-al-statutes--title-11--11-40-17.3}
(a) This section shall apply to Class 1 municipalities only.
(b) There is established a Retroactive Deferred Retirement Option (“Back Drop”) Plan for any retirement and relief system established pursuant to Act 1272, 1973 Regular Session (Acts 1973, p. 2124), as amended.
A participant who retires at least 90 days following July 1, 2002, who has then completed at least 23 years of credited service, and who is otherwise entitled to retire and receive a normal retirement benefit, shall have the opportunity to elect a Back Drop plan. A participant eligible for the Back Drop plan can elect in writing at his or her retirement to retroactively drop his or her credited service in excess of 20 years, for a period of months not exceeding 36 months immediately preceding the date of retirement (the “Back Drop period”); provided that the beginning of the Back Drop period may not extend past the earliest date on which the participant would have qualified for a normal retirement benefit. A participant who is not actively employed may not make a Back Drop election. To be effective, a Back Drop election by a married participant must be approved in writing by his or her spouse.
(c) Notwithstanding the provisions of Section 1 of Article VI of Act 1272, 1973 Regular Session (Acts 1973, p. 2124), as amended, in effect as of the date of a participant’s retirement, any participant making the Back Drop election shall have his or her retirement benefits determined under said section as if retirement had occurred on the beginning date of the Back Drop period, so that for purposes of calculating the retirement benefits, service during the Back Drop period shall not count as credited service, and salary earned during the Back Drop period shall not be included in the calculation of final average salary.
(d) Any participant who elects the Back Drop plan shall receive, not less than 30 days or more than 90 days after his or her retirement, a lump-sum distribution equal to the monthly benefits that would have been paid during the Back Drop period if the participant’s retirement had occurred on the beginning date of the Back Drop period, calculated as provided in subsection (c), together with interest thereon at a percentage rate as the board may determine, annually, compounded monthly from the date on which each monthly benefit would have been paid; provided that no interest shall be paid unless the actuary retained by the board determines that sufficient funds are available to pay the interest on a cost-neutral basis.
(e) If any participant who elects the Back Drop plan dies before the lump-sum distribution referred to in subsection (d) is paid, the Back Drop election shall be null and void, and the benefits to which the participant and his or her surviving spouse, if any, are entitled will be calculated as if the Back Drop election had never been made.
(f) If any participant was receiving retirement benefits under a Back Drop election made in accordance with the preceding provisions of this section, then notwithstanding any other provisions of Section 10 of Article VI of Act 1272, 1973 Regular Session (Acts 1973, p. 2124), as amended, the benefits to which the participant’s surviving spouse is entitled shall be calculated on the basis of the retirement benefit which the participant was receiving as a result of the Back Drop election.
(g) The board shall have the authority to terminate the Back Drop plan created in this section prospectively at any time if it is determined that contributions to the system are not sufficient to pay the costs of the Back Drop plan; provided that no termination shall affect the rights of any participant, or surviving spouse of a participant, who has properly made his or her Back Drop election as required herein but has not yet begun receiving benefits to which he or she would be entitled as a result of the election.
(h) The board is authorized, with approval of the governing body of the municipality primarily served by the system, to make any and all rules and regulations necessary to implement and administer the Back Drop plan which are not inconsistent with this section or applicable law.
*(Act 2001-544, p. 1095, §§1, 2.)*
##### **§ 11-40-18** Minimum Benefits Under Certain Policemen’s and Firemen’s Pension and Relief Plans {#sec-11-40-18 omnilex-key=us-al-statutes--title-11--11-40-18}
In all Class 1 municipalities, notwithstanding any provision of law to the contrary, any benefit payable on a monthly basis to a participant or retiree under the Policemen’s Pension and Relief Plan provided by Act No. 502 of the 1923 Session of the legislature of Alabama, as amended or codified; the Firemen’s Pension and Relief Plan provided by Act No. 307 of the 1943 Session of the legislature of Alabama, as amended (General Acts of Alabama of 1943, p. 264); the Limited Policemen’s Retirement and Relief System provided by Act No. 470 of the 1955 Regular Session of the legislature of Alabama, as amended (Acts of Alabama of 1955, p. 1067); and Limited Firemen’s Pension and Relief System provided by Act No. 217 of the 1966 Special Session of the legislature of Alabama, as amended (Acts of Alabama, Special Session 1966, p. 280) shall not be of an amount less than $400.00 per month, and any survivor’s or spouse’s benefit payable on a monthly basis shall not be of an amount less than $160.00 per month.
*(Acts 1988, No. 88-642, p. 1028, §1.)*
##### **§ 11-40-18.1** Minimum Benefits Under Certain Policemen’s and Firemen’s Pension and Relief Plans {#sec-11-40-18.1 omnilex-key=us-al-statutes--title-11--11-40-18.1}
Notwithstanding any other laws, in Class 1 municipalities, any benefit payable on a monthly basis to a participant or retiree under the Policemen’s Pension and Relief Fund provided by Act No. 502 of the 1923 Session of the Legislature, as amended, the Firemen’s Pension and Relief Fund provided by Act No. 307 of the 1943 Session of the Legislature, as amended, the Separate Policemen’s Retirement and Relief System provided by Act No. 470 of the 1955 Regular Session of the Legislature, as amended, or the Separate Firemen’s Pension and Relief System provided by Act No. 217 of the 1966 Special Session of the Legislature, as amended, shall be in an amount not less than five hundred fifty dollars ($550) per month, and any survivor’s or spouse’s benefit payable therefrom on a monthly basis shall be in an amount not less than three hundred twenty dollars ($320) per month.
*(Acts 1994, No. 94-658, p. 1271, §1.)*
##### **§ 11-40-18.2** Liability and Indemnification Under Firemen’s and Policemen’s Supplemental Pension System {#sec-11-40-18.2 omnilex-key=us-al-statutes--title-11--11-40-18.2}
In the absence of wantonness or willful misconduct, in any Class 1 municipality, the board of firemen and policemen for the Class 1 municipality, the members of the board of firemen and policemen, and any officer, employee, or agent of a Class 1 municipality or of the board of firemen and policemen shall not incur any liability, individually or on behalf of any other individuals or on behalf of a Class 1 municipality or the board of firemen and policemen in a Class 1 municipality, for any act or failure to act in relation to the plan or the fund of any firemen’s and policemen’s supplemental pension system established pursuant to Act 556 of the 1959 Regular Session (Acts 1959, p. 1376).
In the absence of wantonness or willful misconduct, officers and members of the board, employees in any Class 1 municipalities, and agents of any Class 1 municipality and of the board of firemen and policemen shall be indemnified against any and all liabilities arising by reason of any act, or failure to act, in relation to the plan or the fund of the firemen’s and policemen’s supplemental pension system. This indemnification shall not apply to any act or failure to act made in bad faith, nor shall it apply to a paid consultant or paid agent of the fund. This indemnification shall include, without limitation, expenses reasonably incurred in the defense of any claim relating to the plan or the fund of the firemen’s and policemen’s supplemental pension system, and amounts paid in any compromise or settlement relating to the plan or the fund of the firemen’s and policemen’s supplemental pension system. The indemnification shall be paid from the fund and shall apply retrospectively as well as prospectively.
*(Act 2001-966, 3rd Sp. Sess., p. 860, §1; Act 2004-438, p. 748, §1.)*
##### **§ 11-40-19** Operation of Hotel and Related Facilities by Class 1 Municipalities and Certain Public Corporations - Requirements {#sec-11-40-19 omnilex-key=us-al-statutes--title-11--11-40-19}
In addition to all other powers heretofore granted by law, any Class 1 municipality that owns a civic center, or any public corporation that owns a civic center located within a Class 1 municipality, shall have the power to own and operate a hotel, together with any related restaurants, meeting rooms and other facilities and services commonly provided by hotels, subject to the requirements that (i) such hotel and such restaurants and other facilities are located within, or are located on a tract of land contiguous to, the area designated for civic center purposes by the governing body of the municipality in which such civic center is located, (ii) such hotel is of sufficient size and quality to accommodate persons attending conventions held at such civic center, and (iii) if such hotel is to be owned or operated by the Class 1 municipality, and if there is at the time a public corporation in existence that owns a civic center located within such municipality, such municipality shall obtain the approval of the governing body of such public corporation and the approval of the governing body of the county in which all or the largest part of the area of such municipality is located as conditions precedent to the ownership or operation of such hotel by such municipality, such approvals to be evidenced by formal resolutions respectively adopted by the governing bodies of such public corporation and such county. For purposes of clause (i) in the preceding sentence, two tracts of land shall be deemed to be contiguous if such tracts share a common boundary line or perimeter point or if such tracts are separated only by a public street or highway. A hotel shall be deemed to satisfy the requirement set forth in clause (ii) in the first sentence of this paragraph if either of the following two conditions is satisfied: (a) The governing body of the municipality in which such civic center is located, or, alternatively, if such civic center is owned by a separate public corporation, the governing body of such public corporation, shall adopt a resolution finding that the size, quality, and other physical and operating characteristics of such hotel are appropriate for its use as a primary lodging facility for guests attending conventions at such civic center; or (b) at the time such hotel is acquired by any municipality or separate public corporation, or at the time any project for the construction, expansion, or renovation of such hotel is undertaken by any municipality or separate public corporation, as the case may be, such hotel, as it then exists or as it is expected to exist after completion of any planned construction, expansion, or renovation project, shall have the largest number of rentable rooms of any hotel that is then operational and located in the same municipality.
*(Acts 1989, No. 89-794, §1.)*
##### **§ 11-40-20** Operation of Hotel and Related Facilities by Class 1 Municipalities and Certain Public Corporations - Hotel Management Contracts {#sec-11-40-20 omnilex-key=us-al-statutes--title-11--11-40-20}
Any municipality or separate public corporation authorized to own and operate a hotel pursuant to the provisions of Section 11-40-19 and this section may operate such hotel through one or more management contracts with private companies experienced in the operation of hotels, and such management contract shall be exempt from the provisions of Sections 41-16-50 through 41-16-63, inclusive, and shall be awarded for such term and in accordance with such conditions as shall be determined by the governing body of said municipality or separate public corporation, as the case may be. Nothing contained in Section 11-40-19 or this section shall be construed to limit any hotel owned and operated by any municipality or public corporation to providing services to persons attending conventions that use the civic center facilities owned by such municipality or public corporation, and any hotel owned and operated by a municipality or a public corporation pursuant to Section 11-40-19 and this section shall be entitled to serve the general public to the full extent permitted hotels under the laws of the state.
*(Acts 1989, No. 89-794, §2.)*
##### **§ 11-40-21** Number of Members on Municipal Boards, Committees, Etc., in Class 3 Municipalities {#sec-11-40-21 omnilex-key=us-al-statutes--title-11--11-40-21}
In any Class 3 municipality, any law to the contrary notwithstanding, the number of members who shall serve on any existing or future municipal board, committee, or like body, shall be the same as the number of members on the municipal governing body unless the municipal governing body by a two-thirds vote of the total membership of the municipal governing body shall provide for a greater or lesser number of members.
*(Acts 1993, No. 93-704, p. 1349, §1.)*
##### **§ 11-40-22** Mayor Authorized to Award Municipal Employees for Exemplary Performance, Etc {#sec-11-40-22 omnilex-key=us-al-statutes--title-11--11-40-22}
(a) Notwithstanding any limitations of law pertaining to the municipality, the mayor of any municipality in Alabama is hereby authorized, subject to budget restraints approved by the governing body, to make cash or non-cash awards not to exceed $1,000 to employees of the municipality in recognition of exemplary performance or for innovations that significantly reduce costs or result in outstanding improvements in services to the public.
(b) Any employee selected to receive a cash or non-cash award for exemplary performance or for innovations that significantly reduce costs must first be recommended by his or her supervisor and approved by the governing body of the municipality.
(c) Nothing in this section shall affect any program in existence on September 22, 1997.
*(Acts 1997, No. 97-948, §§ 1, 2; Act 98-614, p. 1354, §1.)*
##### **§ 11-40-23** License Tax for Collecting, Etc., Waste Grease and Animal By-Products {#sec-11-40-23 omnilex-key=us-al-statutes--title-11--11-40-23}
Each person engaged in the business of purchasing and receiving or collecting waste grease and animal by-products for rendering or recycling, from businesses, schools, and institutions located in various cities of the state, shall pay the following annual license tax in cities of:
over 100,000 population$50.0025,000 to 100,000 population 25.0012,000 to 25,000 population 20.006,000 to 12,000 population 15.002,000 to 6,000 population 10.000 to 2,000 population 5.00
*(Formerly §40-12-180; Acts 1991, No. 91-598, p. 1101, §1; transferred to this section by Act 99-526, p. 1152, §1.)*
##### **§ 11-40-24** Employees of Separately Incorporated Public Corporation Not Deemed Employees of Municipality {#sec-11-40-24 omnilex-key=us-al-statutes--title-11--11-40-24}
Notwithstanding any other provision of law, employees of any separately incorporated public corporation authorized to be created by a municipality pursuant to state law are employees of that separately incorporated entity and are not employees of the municipality authorizing the creation of the entity.
*(Act 2006-548, p. 1265, §1.)*
##### **§ 11-40-25** Municipal Officers Removed by Operation of Law {#sec-11-40-25 omnilex-key=us-al-statutes--title-11--11-40-25}
(a) For purposes of this section, the term elected municipal official means any mayor, council member, or commission member elected or appointed to municipal office whose presence at council or commission meetings is counted towards establishing a quorum.
(b) Any elected municipal official who misses all regular and special called council or commission meetings for 90 consecutive days, beginning on the date of any absence, shall be removed from office by operation of law.
(c) For the purpose of applying subsection (b), on the date and time of any regular or special called council or commission meeting of a municipality, the clerk shall make a record of all elected municipal officials present or absent regardless of whether or not a quorum is present.
(d) At the next council or commission meeting following the date an elected municipal official has been removed from office pursuant to this section, the council or commission may vote to reinstate the elected municipal official removed from office as provided herein for any mitigating or extenuating circumstances as determined by a majority vote of the remaining voting members of the council or commission, including the mayor if the mayor is a voting member of the council as provided by law.
(e) If the council or commission does not reinstate the removed elected municipal official pursuant to subsection (d), the council or commission shall fill the vacancy as provided by law.
(f) This section shall not apply to any elected municipal official whose absence from any council or commission meeting is a result of military service.
*(Act 2010-611, p. 1567, §1.)*
##### **§ 11-40-26** Limitation on a Municipality’s General Operating Budget That May Be Derived from Traffic Ticket Fines and Penalties {#sec-11-40-26 omnilex-key=us-al-statutes--title-11--11-40-26}
(a) Only 10 percent of a municipality’s general operating budget may come from fines and penalties retained by a municipality from traffic tickets. Any remaining amount in excess of the 10 percent threshold shall be transferred to the Department of Finance for allocation, in equal amounts, to the Crime Victims’ Compensation Fund, created pursuant to Section 15-23-16, and the Fair Trial Tax Fund, created pursuant to Section 12-19-251.
(b) In determining the total general operating budget, a municipality shall use the most recently completed year’s budget.
(c) Class 1 municipalities are excluded from this section.
*(Act 2022-419, §1.)*
#### **Article 2** Demolition of Buildings and Structures
##### **§ 11-40-30** Demolition of Unsafe Structures {#sec-11-40-30 omnilex-key=us-al-statutes--title-11--11-40-30}
Any incorporated municipality of the state may, after notice as provided herein, move or demolish buildings and structures, or parts of buildings and structures, party walls, and foundations when found by the governing body of the municipality to be unsafe to the extent of being a public nuisance from any cause.
*(Acts 1989, No. 89-376, §1; Act 99-702, 2nd Sp. Sess., p. 216, §1.)*
##### **§ 11-40-31** Notice from Appropriate Municipal Officer of Unsafe Condition {#sec-11-40-31 omnilex-key=us-al-statutes--title-11--11-40-31}
The term “appropriate municipal official” as used in this article shall mean any municipal building official or deputy and any other municipal official or municipal employee designated by the mayor or other chief executive officer of the municipality as the person to exercise the authority and perform the duties delegated by this article. Whenever the appropriate municipal official of the municipality finds that any building, structure, part of building or structure, party wall, or foundation situated in the municipality is unsafe to the extent that it is a public nuisance, the official shall give the person or persons, firm, association, or corporation last assessing the property for state taxes and all mortgagees of record, by certified or registered mail to the address on file in the tax collector’s or revenue commissioner’s office, notice to remedy the unsafe or dangerous condition of the building or structure, or to demolish the same, within a reasonable time set out in the notice, which time shall not be less than 30 days or suffer the building or structure to be demolished by the municipality and the cost thereof assessed against the property. The mailing of the certified or registered mail notice, properly addressed and postage prepaid, shall constitute notice as required herein. Notice of the order, or a copy thereof, shall, within three days of the date of mailing, also be posted at or within three feet of an entrance to the building or structure. If there is no entrance, the notice may be posted at any location on the building or structure.
*(Acts 1989, No. 89-376, §2; Act 99-702, 2nd Sp. Sess., p. 216, §1.)*
##### **§ 11-40-32** Hearing; Appeal {#sec-11-40-32 omnilex-key=us-al-statutes--title-11--11-40-32}
(a) Within the time specified in the notice, but not more than 30 days from the date the notice is given, any person, firm, or corporation having an interest in the building or structure may file a written request for a hearing before the governing body of the municipality, together with his or her objections to the finding by the municipal official that the building or structure is unsafe to the extent of becoming a public nuisance. The filing of the request shall hold in abeyance any action on the finding of the municipal official until determination thereon is made by the governing body. Upon holding the hearing, which hearing shall be held not less than five nor more than 30 days after the request, or in the event no hearing is timely requested, the governing body, after the expiration of 30 days from the date the notice is given, shall determine whether or not the building or structure is unsafe to the extent that it is a public nuisance. If it is determined by the governing body that the building or structure is unsafe to the extent that it is a public nuisance, the governing body shall order the building or structure to be demolished. The demolition may be accomplished by the municipality by the use of its own forces, or it may provide by contract for the demolition. The municipality may sell or otherwise dispose of salvaged materials resulting from the demolition.
(b) Any person aggrieved by the decision of the governing body at the hearing may, within 10 days thereafter, appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount to be approved by the circuit clerk. Upon filing of the notice of appeal and approval of the bond, the clerk of the court shall serve a copy of the notice of appeal on the clerk of the municipality and the appeal shall be docketed in the court, and shall be a preferred case therein. The clerk of the municipality shall, upon receiving the notice, file with the clerk of the court a copy of the findings and determination of the governing body in its proceedings. Any trials shall be held without jury upon the determination of the governing body that the building or structure is unsafe to the extent that it is a public nuisance.
*(Acts 1989, No. 89-376, §3; Act 99-702, 2nd Sp. Sess., p. 216, §1.)*
##### **§ 11-40-33** Costs of Demolition {#sec-11-40-33 omnilex-key=us-al-statutes--title-11--11-40-33}
Upon demolition of the building or structure, the appropriate municipal official shall make a report to the governing body of the cost thereof, and the governing body shall adopt a resolution fixing the costs which it finds were reasonably incurred in the demolition and assessing the costs against the property. The proceeds of any moneys received from the sale of salvaged materials from the building or structure shall be used or applied against the cost of demolition. Any person, firm, or corporation having an interest in the property may be heard at the meeting as to any objection to the fixing of the costs or the amounts thereof. The municipal clerk of the municipality shall give notice of the meeting at which the fixing of the costs is to be considered by first-class mail to all entities having an interest in the property whose address and interest is determined from the tax collector’s or revenue commissioner’s records on the property or is otherwise known to the clerk. The fixing of the costs by the governing body shall constitute a special assessment against the lot or lots, parcel or parcels of land upon which the building or structure was located, and thus made and confirmed shall constitute a lien on the property for the amount of the assessment. The lien shall be superior to all other liens on the property except liens for taxes, and shall continue in force until paid. A certified copy of the resolution shall also be filed in the office of the judge of probate of the county in which the municipality is situated. Upon filing, the tax collector or revenue commissioner of the county shall add the amount of the lien to the ad valorem tax bill on the property and shall collect the amount as if it were a tax and remit the amount to the municipality.
*(Acts 1989, No. 89-376, §4; Act 99-702, 2nd Sp. Sess., p. 216, §1.)*
##### **§ 11-40-34** Assessment of Costs {#sec-11-40-34 omnilex-key=us-al-statutes--title-11--11-40-34}
The municipality may assess the costs authorized herein against any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes, and where the assessment is made against the lot or lots, parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem, or sale thereof by the state, shall not operate to discharge, or in any manner affect the lien of the municipality for the assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the assessment. The assessment shall then be added to the tax bill of the property, collected as a tax, and remitted to the municipality.
*(Acts 1989, No. 89-376, §5; Act 99-702, 2nd Sp. Sess., p. 216, §1.)*
##### **§ 11-40-35** Payment of Assessments {#sec-11-40-35 omnilex-key=us-al-statutes--title-11--11-40-35}
Payment of the assessment shall be made in the manner and as provided for the payment of municipal improvement assessments in Section 11-48-48, as the same has heretofore or may hereafter be amended. Any Class 2 municipality may use the provisions of Section 11-48-48.1 as the same has heretofore or may hereafter be amended. Upon the property owner’s failure to pay the assessment the officer designated by the municipality to collect the assessments shall proceed to collect the assessment as provided in Sections 11-48-49 to 11-48-60, inclusive. The municipality may, in the latter notice, elect to have the tax collector or revenue commissioner collect the assessment by adding the assessment to the tax bill. Upon the election, the tax collector or revenue commissioner shall collect the assessment using all methods available for collecting ad valorem taxes.
*(Acts 1989, No. 89-376, § 6; Act 99-702, 2nd Sp. Sess., p. 216, § 1.)*
##### **§ 11-40-36** Article Cumulative {#sec-11-40-36 omnilex-key=us-al-statutes--title-11--11-40-36}
This article is cumulative in nature and is in addition to any power and authority which any municipality may have under any other law.
*(Acts 1989, No. 89-376, § 7; Act 99-702, 2nd Sp. Sess., p. 216, § 1.)*
#### **Article 3** Continued Use and Occupancy of Buildings in Class 2 Municipalities
##### **§ 11-40-50** Meaning of “Appropriate City Official.” {#sec-11-40-50 omnilex-key=us-al-statutes--title-11--11-40-50}
*[Repealed]*
Repealed by Act 2017-304, §11, effective May 16, 2017.
*(Acts 1992, No. 92-471, p. 939, §1.)*
##### **§ 11-40-51** Authority of City to Prescribe Standards for Continued Use and Occupancy of Buildings {#sec-11-40-51 omnilex-key=us-al-statutes--title-11--11-40-51}
*[Repealed]*
Repealed by Act 2017-304, §11, effective May 16, 2017.
*(Acts 1992, No. 92-471, p. 939, §2.)*
##### **§ 11-40-52** Administrative Review; Petition; Hearing {#sec-11-40-52 omnilex-key=us-al-statutes--title-11--11-40-52}
*[Repealed]*
Repealed by Act 2017-304, §11, effective May 16, 2017.
*(Acts 1992, No. 92-471, p. 939, §3.)*
##### **§ 11-40-53** Appeal from Order of Administrative Review Body to Circuit Court {#sec-11-40-53 omnilex-key=us-al-statutes--title-11--11-40-53}
*[Repealed]*
Repealed by Act 2017-304, §11, effective May 16, 2017.
*(Acts 1992, No. 92-471, p. 939, §4.)*
##### **§ 11-40-54** Failure of Owner to Comply with Notice of Non-conformity, Certificate of Modified Approval, Etc.; Civil Penalties; Collection and Enforcement of Penalties {#sec-11-40-54 omnilex-key=us-al-statutes--title-11--11-40-54}
*[Repealed]*
Repealed by Act 2017-304, §11, effective May 16, 2017.
*(Acts 1992, No. 92-471, p. 939, §5.)*
#### **Article 3A** Use and Occupancy of Building in Class 2 Municipalities
##### **§ 11-40-60** Applicability to Class 2 Municipalities {#sec-11-40-60 omnilex-key=us-al-statutes--title-11--11-40-60}
This article applies only to Class 2 municipalities.
*(Act 2017-304, §1.)*
##### **§ 11-40-61** Adoption of Article; Exception {#sec-11-40-61 omnilex-key=us-al-statutes--title-11--11-40-61}
(a) The provisions of this article shall apply in any Class 2 municipality that adopts the provisions of this article to be applicable to the collection of municipal code liens as to real property, other than owner occupied property, in the municipality.
(b) The provisions of this article shall not apply to owner occupied property.
*(Act 2017-304, §2.)*
##### **§ 11-40-62** Definitions {#sec-11-40-62 omnilex-key=us-al-statutes--title-11--11-40-62}
**AMENDED BY ACT 2026-407, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
As used in this article, the following words and phrases have the following meanings:
(1) INTERESTED PARTY. a. Includes the following parties:
1. The person who last appears as owner of the real property in the county office of the judge of probate’s property records.
2. The current mortgagee of record of the property or assignee of record of the mortgagee.
3. The current holder of a beneficial interest in a deed of trust recorded against the real property.
4. A tax certificate holder.
5. A tax sale purchaser that holds a deed of purchase in accordance with Section 40-10-29.
6. Any party having an interest in the real property, or in any part thereof, legal or equitable, in severalty or as tenant in common, whose identity and addresses are reasonably ascertainable from the records of the Class 2 municipality or records maintained in the county office of the judge of probate or as revealed by a full title search, consisting of 50 years or more.
b. The term does not include: (i) the holder of the benefit of an easement that burdens the real property; (ii) the holder of the benefit or burden of a real covenant that burdens the real property; or (iii) the holder of the benefit of a utility easement that burdens the real property.
(2) MINIMUM BID PRICE. The price that equals the redemption amount.
(3) MUNICIPAL CODE LIEN. Any lien that has been levied against real property by a Class 2 municipality which is the result of the nonpayment of any fine, penalty, abatement cost, or enforcement cost incurred by the Class 2 municipality related to the enforcement of state or local housing and building codes. The term includes only those liens that arise out of a failure to comply with any of the following provisions of the Code of Alabama 1975, or from the failure to comply with a Class 2 municipality’s ordinance or resolution enacted pursuant to the authority granted in Article 2 of Chapter 40; Sections 11-47-117, 11-47-118, 11-47-130, 11-47-131, or 11-47-140, Chapter 53, Chapter 53B, or Article 1 of Chapter 67.
(4) MUNICIPAL CODE LIEN PAYOFF. The principal amount of a municipal code lien, interest accrued at the rate of seven and one-half percent per annum from the date the municipal code lien was filed in the office of the judge of probate, any fees or costs incurred in the collection of such a lien under this article including, without limitations, the cost of title examinations and publication of notices, and any other penalties allowable under either state law or under an ordinance or resolution enacted by the Class 2 municipality.
(5) OWNER OCCUPIED. Real property that is lawfully occupied as a principal residence that is any of the following:
a. A homestead as described in Section 40-9-19.
b. Exempt from ad valorem taxation under Sections 40-9-19.1, 40-9-20, and 40-9-21.
c. Eligible for the designations listed in paragraph a. or b., but which has not yet been granted such designation and which is lawfully occupied by the family of a deceased individual.
(6) REDEMPTION AMOUNT. The sum of: (i) the full amount of the municipal code lien payoff for each municipal code lien on which the Class 2 municipality is seeking to foreclose under this article; and (ii) any tax payoff that may be applicable to the property on which the Class 2 municipality is seeking to foreclose under this article.
(7) TAX CERTIFICATE HOLDER. Any of the following:
a. A tax sale purchaser that holds a certificate of purchase in accordance with Section 40-10-19.
b. The state, where it has accepted and recorded a certificate of purchase obtained at a tax sale in accordance with Section 40-10-20.
c. Any party to which a certificate of purchase obtained at a tax sale has been assigned in accordance with Section 40-10-21.
d. The purchaser or assignee of a tax lien certificate as described in Section 40-10-187.
(8) TAXES. Those taxes assessed against real property by either the State of Alabama, the county in which the real property is situated, or the Class 2 municipality which are delinquent, as defined in Section 40-11-4 or 11-51-2, as of the date a proceeding under this article is commenced or at any time before final resolution of the same. The term also includes any taxes assessed against real property which are unpaid from any previous year and any amounts required for redemption under Section 40-10-82, 40-10-120, or 11-51-23. As provided in Section 11-51-6, a lien for taxes shall be superior to all other liens, including municipal code liens.
(9) TAX PAYOFF. Any and all amounts necessary to satisfy any claims for delinquent taxes assessed against the real property on which the Class 2 municipality is seeking to foreclose under this article. Those amounts shall include:
a. If the taxes associated with the property are delinquent as defined in Section 40-11-4 or 11-51-2, but the property has not yet been sold for taxes, the full amount of delinquent taxes, costs, fees, and charges due to the county tax collector in accordance with Section 40-5-8;
b. If the property has been sold for taxes to the state, those amounts required for redemption and described in Sections 40-10-83, 40-10-120, 40-10-121, and 40-10-122, except that when a Class 2 municipality is the prevailing bidder, the tax payoff amount shall be the lesser of these amounts or the amount as determined by Section 40-10-132(a)(2);
c. If the property has been sold for taxes to a party other than the state, those amounts required for redemption and described in Sections 40-10-83, 40-10-120, 40-10-121, and 40-10-122; and
d. If a tax lien has been sold by a county in accordance with the provisions of Section 40-10-182, the amount required for redemption in accordance with Section 40-10-193.
*(Act 2017-304, §3; Act 2025-348, §2.)*
##### **§ 11-40-63** Violations of Class 2 Municipality Housing and Building Code; Priority of Liens {#sec-11-40-63 omnilex-key=us-al-statutes--title-11--11-40-63}
(a) Notwithstanding any law to the contrary, any fees, penalties, and abatement costs imposed against property other than owner occupied real property for violations of a Class 2 municipality’s housing and building codes adopted pursuant to the Code of Alabama 1975, may be enforced in rem as a lien in accordance with this article.
(b) Every municipal code lien, as defined in this article, shall be superior to all other liens, except those liens for taxes described or referenced in Section 11-51-6.
*(Act 2017-304, §4.)*
##### **§ 11-40-64** Nature of Rights and Remedies {#sec-11-40-64 omnilex-key=us-al-statutes--title-11--11-40-64}
(a) Any Class 2 municipality to which this article applies may proceed with judicial in rem foreclosures of municipal code liens in accordance with the provisions of this article by enactment of an ordinance or resolution of the governing authority of the Class 2 municipality in which the real property is located which ordinance or resolution shall be sufficient authority for use of this article by the Class 2 municipality to enforce its municipal code liens.
(b) The ordinance of a Class 2 municipality authorizing and approving the use of this article shall include all the following matters:
(1) The initial effective date for application of these procedures.
(2) If the Class 2 municipality elects not to apply these procedures to all real properties as of the same future date, then the phase-in of these procedures over a period of time and the manner of determination of which real properties are subject in which sequence to these procedures.
(3) The explicit exclusion of owner-occupied properties from the application of the judicial in rem foreclosure procedures authorized in this article.
(4) The nature and extent of notices, support services, and referrals to be provided to the owners and occupants of owner-occupied properties.
(5) Any other matters the Class 2 municipality specifies to be addressed through administrative regulations and policies.
(c) The provisions of the Class 2 municipality ordinance and administrative regulations and policies issued pursuant thereto shall not be in conflict with Sections 11-40-66 through 11-40-69.
(d) Proceedings in accordance with this article are designed solely to enforce the municipal code lien for real property subject to the municipal code lien and shall not constitute an action for personal liability for the municipal code liens against the owner or owners of the real property.
(e) The rights and remedies set forth in this article are available solely to the governmental entities authorized by law to enforce municipal ordinances and shall not extend to any nongovernmental transferee of municipal code liens.
(f) A Class 2 municipality that has adopted the provisions of this article and that seeks to enforce a municipal code lien through the sale of real property shall utilize the judicial in rem proceedings of this article as the sole remedy for the enforcement through the sale of real property.
(g) The enforcement proceedings authorized by this article may be initiated only by the Class 2 municipality.
*(Act 2017-304, §5.)*
##### **§ 11-40-65** Filing Petition for Foreclosure; Form of Petition; Notice {#sec-11-40-65 omnilex-key=us-al-statutes--title-11--11-40-65}
**AMENDED BY ACT 2026-361, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) After a municipal code lien has been recorded with the office of the probate judge of the county in which the real property lies, the Class 2 municipality may identify those properties on which to commence a judicial in rem foreclosure in accordance with this article, except that those properties the Class 2 municipality identifies as owner occupied shall not be subject to judicial in rem foreclosure under this article. The Class 2 municipality shall not file a petition for judicial in rem foreclosure in accordance with this article for a period of six months following the date upon which the municipal code lien is recorded in the office of the probate judge. A petition for judicial in rem foreclosure may include any other municipal code lien that has been filed prior to the date the petition is filed. After enforcement proceedings have commenced in accordance with this article, the enforcement proceedings may be amended to include any subsequently arising municipal code liens and, if applicable, any and all taxes as defined in this article.
(b) If the property on which the Class 2 municipality is seeking to foreclose under this article is subject to taxes as defined in this article, then at least 60 days prior to the filing of the petition, the Class 2 municipality shall notify all other taxing agencies within the jurisdiction of the Class 2 municipality, and the State of Alabama of the Class 2 municipality’s intention to file a petition for judicial in rem foreclosure of the real property on which a municipal code lien exists. Upon notification, the Revenue Commissioner shall provide the tax payoff amount to the Class 2 municipality.
(c) The Class 2 municipality shall record in the appropriate lis pendens record in the office of the judge of probate of the county in which the real property is located, a notice of his or her intent to file a judicial in rem foreclosure action. The notice shall include a legal description of the property, street address of the property if available, a statement that the property is subject to judicial in rem foreclosure proceedings under this article, and a statement that those proceedings may extinguish any legal interests in the property.
(d) Simultaneous with the filing of his or her notice of intent to file a judicial in rem foreclosure action, the Class 2 municipality shall file a petition with the clerk of the circuit court for the judicial circuit in which the real property is located, the petition shall have form and content substantially identical to that form as provided in subsection (i).
(e) The petition shall be filed against the real property against which the municipal code lien has been recorded and shall provide all of the following:
(1) The identity of the Class 2 municipality.
(2) The real property address.
(3) A description of the real property.
(4) The tax identification number of the real property.
(5) The municipal code lien which is being foreclosed.
(6) The principal amount of the municipal code lien together with applicable interest and penalties.
(7) The principal amount of any additional municipal code liens together with applicable interest and penalties in accordance with subsection (a) if any.
(8) The year or years for which the taxes are delinquent, if any.
(9) The principal amount of the taxes together with interest and penalties, if any.
(10) The tax payoff amount.
(11) A statement that upon final sale in accordance with this article and payment of the tax payoff amount, if applicable, an interested party’s rights of redemption under Title 40, Chapter 10 or this title, Chapter 51, shall be extinguished.
(12) The names and addresses of all interested parties to whom copies of the petition are to be sent in accordance with subsection (f).
(f) The Class 2 municipality shall mail copies of the petition by both certified mail, return receipt requested, and by regular mail to all interested parties whose identity and address are reasonably ascertainable. Copies of the petition shall also be mailed by first-class mail to the real property address to the attention of the occupants of the property, if any. In addition, notice shall be physically posted on the real property and shall include the following statement: “THIS PROPERTY IS SUBJECT TO A JUDICIAL IN REM FORECLOSURE ACTION AND MAY BE TRANSFERRED TO [NAME OF CLASS 2 MUNICIPALITY] OR ANOTHER PARTY. PERSONS WITH INFORMATION REGARDING THE CURRENT OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [NAME OF CLASS 2 MUNICIPALITY].”
(g) If the Class 2 municipality finds reason to believe that the real property is owner occupied after the filing of the petition, the Class 2 municipality shall immediately seek dismissal of its petition.
(h) Within 30 days of the filing of the petition, the Class 2 municipality shall cause a notice of the filing of the petition to be published once each week for three consecutive weeks in a newspaper of general circulation in the county in which the property is located. Such notice shall specify:
(1) The name and address of the Class 2 municipality.
(2) The real property address.
(3) A description of the real property.
(4) The tax identification number of the real property.
(5) Any applicable municipal code lien which is being foreclosed upon.
(6) The principal amount of any municipal code lien together with interest and penalties.
(7) The applicable period of tax delinquency, if any.
(8) The principal amount of taxes, if any.
(9) Upon deposit with the appropriate parties by the court of the tax payoff amounts, if any, any and all rights of redemption accorded to interested parties under Title 40, Chapter 10 or under this title, Chapter 51, are extinguished.
(10) The date and place of the filing of the petition.
(i) The petition for judicial in rem foreclosure shall be in substantially the following form:
IN THE CIRCUIT COURT FOR__________ COUNTY
STATE OF ALABAMA-
Petitioner: )
[Class 2 municipality] )
Name, Address, )
Telephone Number )
v. Civil Action No: ________
Respondents:
__________, ACRES OF LAND LYING )
AND BEING IN __________________, )
_____________COUNTY, ALABAMA )
__________________________________ )
__________________________________ )
(Address of Property)
And
_______________________________ )
Name and mailing address of Owner
PETITION FOR JUDICIAL IN REM FORECLOSURE COMES NOW (Petitioner) and petitions this Court for judicial in rem foreclosure in accordance with Section _________ of the Code of Alabama 1975, by showing this Court as follows:
1. _________ is the owner of certain real property located at ________ (the “Property”) having a tax identification number of _____. (A legal description of the Property is attached hereto as Exhibit “A” and by this reference incorporated herein).
2. The municipal code lien(s) recorded against the Property by City of _____ for nonpayment of costs incurred, penalties, or fees arising from violations of the City of _______′s Code of Ordinances related to the Property, the total amount of which is $ ________ (amount includes principal amount of the municipal code lien and any accrued interest and penalties as of this date) have not been paid. (An itemized list of any municipal code lien recorded against the Property and the subject of this Petition is attached hereto as Exhibit “B” and by this reference incorporated herein.)
3. The taxes assessed against the Property by City/County of _____ or by the State of Alabama for the year(s) _____ in the amount of $ ________ (amount includes principal amount of taxes owed and any accrued interest and penalties as of this date) [have] [have not] been paid.
4. Attached hereto as Exhibit “C” is a list of the names and addresses of interested parties also receiving a copy of this Petition by first class mail.
5. Occupants of the Property shall be served by mailing the petition by first-class mail to the attention of the occupants at the above-listed Property address.
6. Based upon the information and belief of the Petitioner the Property is not owner-occupied property.
7. The Petition has also been posted on the Property in accordance with Section 11-4-54(f), Code of Alabama 1975.
8. Simultaneously with the filing of this Petition, Petitioner has filed a lis pendens in the appropriate office of the judge of probate.
WHEREFORE, Petitioner demands (1) a hearing before the Circuit Court in _____ County (the “Court”) and (2) a judgment by the Court stating that (a) the municipal code lien recorded against the Property is delinquent and (b) that notice has been given to all interested parties, and an order that the Court may cause the Property to be sold at public outcry in a similar manner as that required in Section 40-10-15 of the Code of Alabama.
CITY OF ______________
By: ___________________
Its: ___________________
NOTICE TO RESPONDENTS AND ALL INTERESTED PARTIES
This petition serves as notice to the respondents and all interested parties that (1) each party is presumed to own or have a legal interest in the property, (2) that foreclosure proceedings have been commenced because of the failure to pay the municipal code lien cited above, and (3) foreclosure will result in the loss of ownership of the Property and all rights or interests of all interested parties, including any and all rights or redemption accorded to by interested parties under Title 40, Chapter 10 and Title 11, Chapter 5, Code of Alabama 1975.
To avoid loss of ownership or any interest in the property, payment of the full amount of the municipal code lien, penalties, interest, and costs, plus payment of the full amount of any property taxes that are due or delinquent, if any, including any related penalties, interest, and costs must be paid to the _____ office located at _____ by _____date. Respondents and all interested parties are also reminded that each of you may wish to contact an attorney to protect your rights.
A hearing on the above matter shall take place before the Circuit Court of _____ County no earlier than 30 days after the filing of this petition. To determine the exact time and date of such hearing, please call the office of the Circuit Court of _____ County.
This _____ day of _____, _____.
__________________________
Circuit Clerk of ______ County
EXHIBIT A
Description of the Property
Together with all rights, title, and interest running with the above-described property but not taxed under a separate tax reference number as delineated on the tax maps of the petitioner for the year(s) for the municipal code liens being foreclosed.
EXHIBIT B
Names and Addresses of Interested Parties
*(Act 2017-304, §6; Act 2018-406, §1(b)(2).)*
##### **§ 11-40-66** Judicial Hearing {#sec-11-40-66 omnilex-key=us-al-statutes--title-11--11-40-66}
(a) The Class 2 municipality shall request that a judicial hearing on the petition occur not earlier than 30 days nor more than 90 days following the filing of the petition. At the judicial hearing, any interested party shall have the right to be heard and to contest the delinquency of the municipal code lien, the adequacy of the proceedings, the classification of the property as owner occupied, and the amount of the tax payoff. If the court determines that the information set forth in the petition is accurate, the court shall render its judgment and order that:
(1) The municipal code lien is delinquent.
(2) The amounts of any additional municipal code liens and taxes described in the petition are delinquent.
(3) Proper notice has been given to all interested parties.
(4) The property is not owner occupied.
(5) The property as described in the petition be sold in accordance with the provisions of this article.
(6) The sale shall become final and binding immediately after the sale is conducted in accordance with Section 11-40-68.
(b) The order of the court shall provide that the property be sold free and clear of all liens, claims, and encumbrances other than:
(1) Rights of redemption provided under federal law.
(2) Taxes assessed against real property that are due but not yet delinquent as of the date of the court’s order.
(3) An easement which burdens the real property, a real covenant which burdens the real property, and any utility easement which benefits the real property as of the date of the filing of the municipal code lien on which the Class 2 municipality is seeking to foreclose under this article.
(c) If at any point in the proceedings the court determines that the property is owner occupied, then the Class 2 municipality shall seek immediate dismissal of the proceedings.
*(Act 2017-304, §7.)*
##### **§ 11-40-67** Redemption of Property Prior to Sale by Payment of Redemption Amount {#sec-11-40-67 omnilex-key=us-al-statutes--title-11--11-40-67}
**AMENDED BY ACT 2026-361, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) At any point prior to the moment of the sale, any interested party may redeem the real property from the sale by payment of the redemption amount. Payment shall be made to the Class 2 municipality. Following receipt of the payment, the Class 2 municipality shall file for dismissal of the proceedings.
(b) In the event of the payment by the owner of the real property, the proceedings shall be dismissed and the rights and interests of all interested parties shall remain unaffected.
(c) In the event of payment by any interested party other than the owner, the party making the payment shall possess a lien on the real property for the full amount of the payment, which lien shall have the same priority as the municipal code lien discussed in subsection (b) of Section 11-40-63. The lienholder shall have the right to enforce the lien as permitted to the holder of any lien under existing law. The lienholder shall not otherwise succeed to the rights of the Class 2 municipality or tax certificate holder.
*(Act 2017-304, §8.)*
##### **§ 11-40-68** Foreclosure Sale; Form of Deed {#sec-11-40-68 omnilex-key=us-al-statutes--title-11--11-40-68}
**AMENDED BY ACT 2026-361, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) Following the hearing and order of the court in accordance with Section 11-40-66, the court shall cause a sale of the real property to be advertised and conducted by the court in a manner similar to that procedure contemplated by Section 40-10-15. The sale shall not occur earlier than 45 days following the date of the order of the court.
(b) Except as otherwise authorized by law, the minimum bid price for the sale of the real property shall be the redemption amount.
(1) In the absence of any bid higher than the minimum bid price, the court or its designee shall bid in for the real property on behalf of the Class 2 municipality or its designee in an amount equal to the minimum bid price, thereby causing the Class 2 municipality to become the purchaser at the sale pursuant to Section 11-40-66.
(2) A bid in on behalf of the Class 2 municipality or its designee shall be tendered as a credit bid for that part of the minimum bid price equal to the municipal code lien payoff as defined in this article. If the minimum bid price bid in by the Class 2 municipality includes a tax payoff amount as defined in this article, the Class 2 municipality shall tender the amount of the tax payoff to the court, which, together with the municipal code lien payoff, shall satisfy the full amount of the minimum bid price.
(c) Payment of the winning bid shall be due immediately after the sale is conducted. The proceeds of the foreclosure sale shall be distributed in the following manner:
(1) If the purchaser is a party other than the Class 2 municipality, the court or its designee shall deposit with the Class 2 municipality the amount of the proceeds equal to the municipal code lien payoff, less any costs incurred or fees charged by the office of the judge of probate.
(2) If the purchaser is the Class 2 municipality, then the Class 2 municipality shall tender to the court an amount equal to any costs incurred by the court that are included in the amount of the municipal code lien payoff.
(3) If the minimum bid price includes a tax payoff amount, the court shall deposit the amounts paid with the appropriate parties in accordance with the following Sections 40-5-10, 40-10-128, 40-10-129, and 40-10-193, and any applicable local acts.
(4) In the event that the foreclosure sale price exceeds the minimum bid price at the foreclosure sale, the surplus shall be distributed by the court to the interested parties, including the owner, as their interests appear and in the order of priority in which their interests exist.
(d) Upon deposit with the appropriate parties by the court of the tax payoff amounts, if any, described in subsection (c)(3), any and all rights of redemption accorded to interested parties under Title 40, Chapter 10 or under this title, Chapter 51, are extinguished.
(e) From and after the moment of the sale, the sale shall be final and binding.
(f) Within 90 days following the date of the sale, the court shall cause to be executed a deed to the real property identified in the petition. Upon execution, the court shall cause the deed to be recorded with the office of the judge of probate.
(g) Within 90 days following the date of the sale, the Class 2 municipality shall file a report of the sale with the clerk of the circuit court, which report shall identify whether a sale took place, the foreclosure sale price, and the identity of the purchaser.
(h) The form of the deed provided for in subsection (e) shall be substantially as follows:
When recorded please return to: Cross-reference:
_________________________ Deed Book ____, Page
_________________________ _______ County, Alabama Records
STATE OF ALABAMA
COUNTY OF __________
JUDICIAL IN REM FORECLOSURE DEED
This indenture (the “deed”) made this _____ day of _____, _____, by and between _____, a _____ (“grantor”) and _____, a _____ (“grantee”).
WITNESSETH
WHEREAS, on the _____ day of _____, _____, during the legal hours of sale, grantor did expose for sale at public outcry to the highest bidder for cash before the courthouse door in _____ County, Alabama, the property (as hereinafter defined) at which sale grantee was the highest and best bidder for the sum of $_____ and the property was then and there sold to grantee for the sum. The sale was made by grantor pursuant to and by virtue of the power and authority granted to it in that certain order of the court granted _____, _____, Case No. _____, Circuit Court of _____ County, Alabama, (the “order”). Said sale was made after advertising the time, place, and terms thereof in the _____, published in _____, Alabama, in the aforesaid county, and being the publication in which the [Class 2 municipality’s] advertisements for the county are now published, once a week for three consecutive weeks prior to the sale on the _____, _____, _____, and _____ of _____, _____, and the advertisement in all respects complied with the requirements of Section _____ of the Code of Alabama 1975. Notice of the time, place, and terms of the sale of the property was given pursuant to Section _____ , Code of Alabama 1975. Sale was made for the purpose of paying the municipal code lien(s) owed to _____, the interest and penalties on the indebtedness, the expenses of the sale including attorneys’ fees, all of which were mature and payable because of failure of the owner to pay the amount owed and reflected in the municipal code lien.
NOW, THEREFORE, grantor, acting under and by virtue of the order and pursuant to Section _____, Code of Alabama 1975, for and in consideration of the facts hereinbefore recited, has bargained, sold, and conveyed and does hereby bargain, sell, and convey unto grantee, its successors and assigns, the following described property (herein referred to as the “property”); to wit:
All that tract or parcel of land lying and being in Land Lot _____ of the _____ District, _____ County, Alabama, and being more particularly described on Exhibit “A” attached hereto and by this reference made a party hereof.
This deed is given subject to all restrictions, easements, rights-of-way, declarations, and covenants, if any, to which the deed is junior and inferior in terms of priority.
TO HAVE AND TO HOLD, the property unto grantee, its successors and assigns in fee simple.
IN TESTIMONY WHEREOF, I have hereunto set my hand and seal, this ______ day of _____________________, 20_____.
____________________________
Judge of the Circuit Court of ______ County
THE STATE OF ALABAMA,
__________________________ COUNTY.
I, _______________________________, a ____________________ in and for the County, in the State of Alabama, hereby certify that _________________________ whose name as Judge of the Circuit Court of ________ County is signed to the foregoing conveyance and who is known to me, acknowledged before me, on this day, that, being informed of the contents of this conveyance, he or she, in his or her capacity as Judge of the Circuit Court of ___________ County, executed the same voluntarily, on this day.
Given under my hand, this _______ day of _________________________, 20______.
_____________________
EXHIBIT
Description of the Property
Together with all right, title, and interest running with the above-described property but not taxed under a separate tax reference number as delineated on the tax maps of the petitioner for the year(s) for the municipal code lien being foreclosed.
*(Act 2017-304, §9.)*
##### **§ 11-40-69** Avenue for Input by Adjoining Property Owners {#sec-11-40-69 omnilex-key=us-al-statutes--title-11--11-40-69}
**AMENDED BY ACT 2026-407, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
Any municipal ordinance enacted pursuant to this article shall include an avenue for input by adjoining property owners to participate in the rehabilitation and use of the property subject to this article.
*(Act 2017-304, §10.)*
#### **Article 4** Convenient Right-of-Way Acquisition Within Planning Jurisidiction of a Class 2 Municipality
##### **§ 11-40-70** Right-of-Way Acquisition {#sec-11-40-70 omnilex-key=us-al-statutes--title-11--11-40-70}
The owner of any tract or body of land, located within the planning jurisdiction of any Class 2 municipality, no part of which tract or body of land is adjacent or contiguous to any public road or highway, shall have and may acquire pursuant to Article 1 of Chapter 3, Title 18, a convenient right-of-way, not exceeding in width 50 feet, over the lands intervening and lying between the tract or body of land and the public road nearest or most convenient thereto provided written approval is obtained from the municipal government and the planning board of the municipality, when a right-of-way exceeding 30 feet is needed to comply with local ordinances or conditions of the municipality.
*(Act 2000-785, p. 1845, §1.)*
#### **Article 5** Zoning Authority in Certain Municipalities Incorporated After 1990
##### **§ 11-40-80** Applicability {#sec-11-40-80 omnilex-key=us-al-statutes--title-11--11-40-80}
This article shall apply to all municipalities in this state incorporated after 1990 which are located in a county in which another municipality in that county has zoning authority in its police jurisdiction.
*(Act 2019-251, §1.)*
##### **§ 11-40-81** Division of Territory Within Police Jurisdiction; Municipal Zoning Authority {#sec-11-40-81 omnilex-key=us-al-statutes--title-11--11-40-81}
(a) Any municipality in this state incorporated after 1990, which is located in a county in which another municipality in that county has zoning authority in its police jurisdiction, may divide the territory within its police jurisdiction into business, industrial, and residential zones or districts and, at its option, may provide the kind, character, and use of structures and improvements that may be erected or made within the several zones or districts established and, from time to time, may rearrange or alter the boundaries of the zones or districts and may also adopt ordinances as are necessary to implement and administer this article. It is the intent of this article to grant any municipality to which this article applies full zoning authority within its police jurisdiction to the same extent as the municipality exercises that authority within its corporate limits.
(b) This article shall not affect the right of the owner or owners of property located within the police jurisdiction of a municipality to which this article applies to continue to use the property as it is being used on the date of the enactment of any zoning ordinance applicable to the property until the owner or owners of the property seek to change the use of the property.
*(Act 2019-251, §2.)*
##### **§ 11-40-82** Zoning Authority in Overlapping Police Jurisdictions - Authorized {#sec-11-40-82 omnilex-key=us-al-statutes--title-11--11-40-82}
In the event the police jurisdiction of any municipality to which this article applies overlaps with the police jurisdiction of another municipality in the county that has zoning authority in its police jurisdiction, the governing body of each municipality may exercise the zoning authority in the overlapping portions of its police jurisdiction to a boundary which is equidistant from the respective corporate limits of each municipality that has an overlapping police jurisdiction. Nothing in this section prevents neighboring municipalities from entering into cooperative agreements as to which municipality will exercise zoning authority in the areas of overlapping police jurisdiction.
*(Act 2019-251, §3.)*
##### **§ 11-40-83** Zoning Authority in Overlapping Police Jurisdictions - Zoning Disputes Between Municipalities {#sec-11-40-83 omnilex-key=us-al-statutes--title-11--11-40-83}
Notwithstanding Section 11-40-82, in the overlapping areas of the police jurisdiction of the municipalities, each municipality may object to a zoning decision of the other municipality in the overlapping areas. In that case, the objecting municipality shall notify the other municipality of its objection and the zoning dispute shall be resolved by a panel consisting of the mayors of the two municipalities and the chair of the county commission of the county where the property involved in the zoning dispute is located.
*(Act 2019-251, §4.)*
##### **§ 11-40-84** Relation to Chapter 52 {#sec-11-40-84 omnilex-key=us-al-statutes--title-11--11-40-84}
Any zoning authority authorized pursuant to this article shall be undertaken in accordance with Chapter 52 of this title.
*(Act 2019-251, §5.)*
#### **Article 6** Training Courses for Individuals Elected to Serve as Mayor or Member of the Governing Body of a Municipality
##### **§ 11-40-100** Completion of Training Courses Required; Subject Matter; Exemptions {#sec-11-40-100 omnilex-key=us-al-statutes--title-11--11-40-100}
(a) Beginning January 1, 2025, each individual elected to serve as mayor or as a member of the governing body of any municipality shall enroll in, participate in, and satisfactorily complete, during each year of his or her first elected term that commences after January 1, 2025, a training course that meets the requirements of subsection (b).
(b) A training course shall consist of at least 10 hours and shall include instruction in each of the following subjects:
(1) The general powers of municipalities.
(2) The duties of mayors and governing bodies of municipalities.
(3) Ethics.
(4) Annexations.
(5) The authority to expend municipal funds.
(6) Parliamentary procedure.
(7) Conflicts of interest.
(8) Legislative advocacy.
(9) Liability.
(10) Public records.
(11) Police and planning jurisdiction.
(12) Public works bidding.
(13) Revenue sources.
(14) Competitive bid laws.
(15) Budgeting.
(16) Audit requirements.
(17) The public purpose doctrine.
(18) The Open Meetings Act.
(19) Municipal boards.
(20) Zoning.
(21) Any other subject recommended by the Alabama League of Municipalities.
(c) Any individual who has successfully completed the Certified Municipal Official Program administered by the Alabama League of Municipalities shall be exempt from the requirements of subsection (a).
*(Act 2024-194, §1.)*
##### **§ 11-40-101** Continuing Education Requirements {#sec-11-40-101 omnilex-key=us-al-statutes--title-11--11-40-101}
Beginning January 1, 2025, each individual elected or appointed to serve as mayor or as a member of the governing body of any municipality who has already completed the training required by Section 11-40-100 shall enroll in, participate in, and satisfactorily complete, annually, at least five hours of continuing education courses pertaining to any of the subjects listed in Section 11-40-100.
*(Act 2024-194, §2.)*
##### **§ 11-40-102** Development of Training Courses {#sec-11-40-102 omnilex-key=us-al-statutes--title-11--11-40-102}
Any training provided pursuant to this article shall be developed in consultation with the Alabama Ethics Commission, the Attorney General’s Office, and the Department of Examiners of Public Accounts.
*(Act 2024-194, §3.)*
##### **§ 11-40-103** Payment of Expenses; Applicability of Article {#sec-11-40-103 omnilex-key=us-al-statutes--title-11--11-40-103}
(a) All expenses incurred by an individual related to any training required by this article, including, but not limited to, the cost of the training and the reasonable costs of lodging, travel, and meals, shall be paid from the general fund of the municipality.
(b) This article shall apply to all municipalities incorporated under this title.
*(Act 2024-194, §4.)*
### **Chapter 41** Incorporation and Dissolution
#### **Article 1** Incorporation
##### **§ 11-41-1** Authority; Petition to Probate Judge for Order of Incorporation {#sec-11-41-1 omnilex-key=us-al-statutes--title-11--11-41-1}
When the inhabitants of an unincorporated community, which has a population of not less than 300, constituting a body of citizens whose residences are contiguous to and all of which form a homogeneous settlement or community, desire to become organized as a municipal corporation, they may apply to the judge of probate of the county in which the territory is situated, or the greater portion thereof if it is situated in two or more counties, for an order of incorporation, by a petition in writing signed by not less than 15 percent of the qualified electors residing within the limits of the proposed municipality and by the persons, firms, or corporations owning at least 60 percent of the acreage of the platted or unplatted land of the proposed municipality. No platted or unplatted territory shall be included within the boundary unless there are at least four qualified electors, according to government survey, residing on each quarter of each quarter section or part thereof of the platted or unplatted lands of the proposed municipality, who assent thereto in writing by signing the petition. An unincorporated community lying within or partly within the boundaries of a county having a population of 600,000 or more, according to the most recent federal decennial census, shall not be incorporated under this section if the territory proposed to be incorporated has a total population of less than 1,000 or if the territory or any part of its perimeter lies within three miles of the corporate limits of any existing city or town. Provided further, that if an unincorporated community lying within or partly within the boundaries of a county having a population of 600,000 or more, according to the most recent federal decennial census, contains territory that is located closer than three miles to the corporate boundaries of a Class 1 city or town, the unincorporated community shall not be prohibited from incorporating under this section if its territory proposed to be incorporated has a total population of at least 10,000 inhabitants according to the most recent federal decennial census. Notwithstanding the provisions of the preceding sentence, the unincorporated communities of Cahaba Heights and Pinson, which lie within or partly within the boundaries of a county having a population of 600,000 or more according to the most recent federal decennial census, and contain territory that is located closer than three miles to the corporate boundaries of a Class 1 city or town, shall not be prohibited from incorporating under this section if the territory proposed to be incorporated has a total population of at least 5,000 inhabitants according to the most recent federal decennial census.
Provided further, an unincorporated territory in any county of 600,000 population or more shall not be prohibited from incorporating under this section if it contains a population of 3,000 or more inhabitants although a portion of the territory proposed to be incorporated lies within three miles of a Class 4 or 5 municipality, or if it contains a population of 1,500 or more, although a portion of the territory proposed to be incorporated lies within three miles of a Class 6, 7, or 8 municipality.
The petition for incorporation shall be submitted by the persons seeking the incorporation referendum to the judge of probate by a verified application, which shall state the proposed name of the municipality, have attached thereto and as a part thereof an accurate plat of the territory proposed to be embraced within the corporate limits, including all subdivisions into lots, blocks, streets, and alleys, within the territory, if any, and have accurate description by metes and bounds of the boundary of the territory. The application shall contain proof of residence and qualifications as electors of petitioners and of persons affected. When determining the ownership of the lands, the person, firm, or corporation assessing the property for taxation shall be accepted by the judge of probate as prima facie the owner thereof. All petitions circulated with respect to any proposed incorporation referendum shall be uniform in character. Each signer of a petition shall sign his or her name and shall have placed on the petition after his or her name his or her place of residence by street and number, if available, and the date on which the signature is affixed. The signatures attached to any petition need not be signed on one page, but each page shall have attached an affidavit by the person circulating the petition stating the number of signers on each page of the petition, that each signature signed on the page is the genuine signature of the person whose name it purports to be, and that the signature was made in the presence of the person circulating the petition.
The inhabitants of any island having an area of not less than five square miles and a population of not less than 300 qualified electors actually residing thereon and being situated in a county having a population of not less than 300,000 nor more than 600,000, according to the 1970 or any subsequent federal decennial census, may become organized as a municipal corporation, embracing within the corporate limits of the proposed municipality the entire area of the island, even though there may be on the island one or more quarters of a quarter section according to the government survey on which no qualified elector resides, if not less than 51 percent of the qualified electors residing on the island sign and file with the judge of probate a petition requesting the judge of probate to call an election relative to the incorporation and the vote at the election is favorable to incorporation. The petition shall state the proposed name of the municipality and shall have attached thereto and made a part thereof an accurate plat of the entire island, including all subdivisions into lots, blocks, streets, and alleys within the territory, and an accurate description by metes and bounds of the island. Except as provided in this section, the incorporation of any municipality shall be governed by the laws currently providing for the incorporation of unincorporated communities. The petition for incorporation shall comply with the requirements of this section in effect at the time of the original filing of the petition with the judge of probate. Any subsequent refiling of the petition to correct defects shall also comply with the requirements of this section in effect at the time of the original filing of the original petition with the probate court. The requirements for compliance with this section shall not be changed between the date of the original filing with the judge of probate of a petition for incorporation and the vote for incorporation.
The persons filing the verified application shall be required to tender a deposit to the judge of probate for reasonably anticipated costs and expenses associated with the requested incorporation referendum.
After August 1, 2004, any municipality incorporated under the procedures set out in this section shall assume responsibility to control, manage, supervise, regulate, repair, maintain, and improve all public streets or parts thereof lying within the incorporated limits no later than 24 months after the incorporation is finalized.
*(Code 1907, §1053; Code 1923, §1744; Code 1940, T. 37, §10; Acts 1977, No. 507, p. 669; Acts 1982, No. 82-526, p. 875, §1; Acts 1989, No. 89-666; Acts 1996, No. 96-536, p. 749, §1; Act 2002-499, p. 1291, §3; Act 2004-504, §1.)*
##### **§ 11-41-2** Notice of Filing; Determination of Statutory Compliance; Objections; Ordering and Notice of Election; Contest of Election {#sec-11-41-2 omnilex-key=us-al-statutes--title-11--11-41-2}
(a) Upon the filing of the verified application with the judge of probate, the judge of probate shall give notice of the filing of the application by publication in one or more newspapers published in the county, if there are any, that an application to the judge of probate has been submitted and that the judge of probate will determine if the application complies with Section 11-41-1, and that further notice will be given for the filing of any objections.
(b) The judge of probate shall have a reasonable period of time, not to exceed 45 days, within which to ascertain compliance with Section 11-41-1. If the judge of probate determines that the application does not comply with Section 11-41-1, the judge of probate shall enter an order to that effect, which order shall be sent in accordance with the Alabama Rules of Civil Procedure. The order shall state the reasons for noncompliance. Any party to the application shall have a reasonable period of time, not to exceed 60 days, within which to request leave of court to amend the application to cure the deficiencies in the application as identified by the judge of probate. If the judge of probate determines that the amended application does not comply with Section 11-41-1, the judge of probate shall enter an order to that effect, which order shall be sent in accordance with the Alabama Rules of Civil Procedure. Any applicant shall have 10 days from the date of the order of the judge of probate determining noncompliance with Section 11-41-1 as to the amended application, within which to appeal the order in accordance with applicable law and procedure.
(c) Upon the judge of probate ascertaining compliance with Section 11-41-1, the judge of probate shall give notice of the filing of the application by publication in one or more newspapers, if there are any, published in the county and by posting in three public places, within the limits of the proposed town or city, that an application has been filed and that all interested parties shall have 30 days from the date of last publication within which to file a written objection to the application with the judge of probate. Any objection shall state with specificity the basis for the objection and a copy of the objection shall be served upon the persons submitting the incorporation application to the judge of probate in accordance with the Alabama Rules of Civil Procedure. The judge of probate shall set a hearing on any objection within 30 days of the objection being filed. If an objection is filed, all time deadlines and proceedings shall be stayed pending a ruling on the objection by the judge of probate. If the judge of probate determines that the objection is meritorious, the judge of probate shall deny the application and enter a final order in the case. If no objection is timely filed, or if the judge of probate grants the incorporation application, the judge of probate shall enter a final order directing an election to be held within 90 days after the entry of the order granting the application, at a place within the limits of the proposed town or city to be designated by him or her. The judge of probate shall give notice by publication in one or more newspapers, if there are any, published in the county and by posting in three public places, within the limits of the proposed town or city, that the election will be held at a certain time and place and that a plat showing the limits of the proposed city or town is on file in the office of the judge of probate of the county. If the judge of probate grants the incorporation application and the order is appealed and the order is stayed during the pendency of the appeal, upon the appellate court affirming the order of the judge of probate, the judge of probate shall direct an election to be held as provided herein. Any contest to an election ordered under this section shall be filed within 42 days of the date upon which the election results are certified by the judge of probate.
*(Code 1907, §1054; Code 1923, §1745; Code 1940, T. 37, §11; Act 2004-504, §1.)*
##### **§ 11-41-3** Conduct of Election Generally; Provision and Form of Ballots; Qualifications for Voting {#sec-11-41-3 omnilex-key=us-al-statutes--title-11--11-41-3}
The judge of probate shall appoint three qualified electors within the limits of the proposed city or town as inspectors to manage the election, which shall be conducted under the same sanction and penalties as are provided by the general election laws, except that a voter may furnish his own ballot, upon which must be written or printed “corporation” or “no corporation,” and any person who is a qualified elector under the state law and has resided within the boundaries of the proposed city or town for three months next preceding may vote at such election.
*(Code 1907, §1055; Code 1923, §1746; Code 1940, T. 37, §12.)*
##### **§ 11-41-4** Certification of Election Result to Probate Judge; Census Enumeration of Inhabitants; Issuance, Recordation, and Filing of Order of Incorporation; Filing Fee {#sec-11-41-4 omnilex-key=us-al-statutes--title-11--11-41-4}
Within five days after the election, the inspectors must certify the result to the judge of probate, who must, if a majority of the votes cast at the election are for “corporation,” cause an enumeration of the inhabitants residing within such territory to be made by such inspectors or other persons appointed by him and, within three days after such enumeration has been completed and returned to him, shall make an order to be entered of record in the minutes of the court that the inhabitants of such territory are incorporated as a town or city, as the case may be, by the name and with the boundaries shown by the petition, whereupon such town or city shall be vested with the rights and powers incident to such corporations granted in this title.
The judge of probate shall file, within 10 days after its issuance, a certified copy of his order of incorporation in the regular corporation books maintained by him in his office and also in the office of the Secretary of State and for filing each such order there shall be paid, in advance, to the probate judge, a fee of $5.00.
*(Code 1907, §1056; Code 1923, §1747; Code 1940, T. 37, §13; Acts 1969, No. 1111, p. 2047.)*
##### **§ 11-41-5** Ordering and Notice of Election of Mayor and Councilmen for Incorporated Municipalities; Conduct of Election Generally; Qualifications for Voting {#sec-11-41-5 omnilex-key=us-al-statutes--title-11--11-41-5}
Upon making such order of incorporation, the judge of probate shall order an election to be held by the same inspectors or others appointed by him for the purpose of electing a mayor and members of the council authorized by this title, who shall, at such election, be elected from the city or town at large. Such inspectors shall give 30 days’ notice of the time and place of holding the election by posting a notice in five public places within the limits of such town or city. Said inspectors shall have the powers and discharge the duties as inspectors and clerks in municipal elections, and said election shall be conducted, as far as practicable, in the manner prescribed in this title for the election of city or town officers, and no person shall vote at such election unless he is a qualified elector of the county and has resided within the limits of the municipality for three months next preceding the election.
*(Code 1907, §1057; Code 1923, §1748; Code 1940, T. 37, §14.)*
##### **§ 11-41-6** Report of Election Result to Probate Judge; Issuance and Recordation of Order Approving Report and Election Result; Vacancies; Setting Aside, Etc., of Elections; Record and Costs of Incorporation Proceedings and Elections {#sec-11-41-6 omnilex-key=us-al-statutes--title-11--11-41-6}
Within five days after such election, inspectors shall report the result of the election to the judge of probate, who may enter an order confirming and approving the election and report, and, in that event, the officers shown by such report to have been elected shall, upon the recording of such order, be entitled to hold office until the next general municipal election and until their successors are elected and qualified. If any person fails to qualify within 30 days after he shall have been declared elected, the judge of probate may appoint some person to fill such vacancy.
The judge of probate may, for fraud or material irregularities, set either of such elections aside and order another election in like manner to be held by the same or other inspectors to be by him appointed.
The judge shall make a record of the proceedings in the matter of such incorporation and election of officers and file in the office of the Secretary of State a certified copy of the entry showing the result of the elections preceding. The costs of all the aforesaid proceedings shall be paid by the town or city; but, if no judgment is entered establishing the town or city, they shall be paid by the petitioners, and judgment shall be entered dismissing such proceedings.
*(Code 1907, §1058; Code 1923, §1749; Code 1940, T. 37, §15.)*
##### **§ 11-41-7** Reinstatement of Corporate Organization of Dormant Municipalities; Appointment of Mayor and Councilmen for Same {#sec-11-41-7 omnilex-key=us-al-statutes--title-11--11-41-7}
Towns or cities that have permitted their organization to become dormant and inefficient may, by a petition of a majority of the taxpayers of such town or city to the probate judge, have their corporate organization reinstated by an order, entered of record, of the probate judge, who thereupon shall appoint a mayor and councilmen for such town or city, who shall hold their offices until the next regular election thereafter and until their successors are elected and qualified.
*(Code 1907, §1059; Code 1923, §1750; Code 1940, T. 37, §16.)*
##### **§ 11-41-8** Validation of Previously Invalidated Incorporations and Alterations of Corporate Limits {#sec-11-41-8 omnilex-key=us-al-statutes--title-11--11-41-8}
(a) In all cases prior to May 14, 2012, where there has been an attempt to organize the inhabitants of any territory as a municipal corporation under this article, and the judge of probate of the county in which the territory is situated has entered an order that the inhabitants of the territory are incorporated as a town or city, as the case may be, pursuant to Section 11-41-4, but the attempted incorporation is invalid because of some irregularity in the procedure followed, the incorporation of that municipality so attempted to be organized and with respect to which the order has been made is validated ab initio in accordance with the description of the territory attempted to be incorporated as the description is contained in the order or, if the description of the territory attempted to be incorporated is not contained in the order in accordance with the description of the territory contained in the petition of the electors filed with the judge of probate, notwithstanding any failure to comply with the requirements respecting the signatures to or contents of the petition for incorporation, any irregularities as to publication or posting, or any other failure to comply with the procedures set forth in that article or otherwise required by law. This section shall not apply to the incorporation of any municipality held to be invalid by a court of competent jurisdiction by judgment entered prior to May 14, 2012, or in any matter where litigation is pending relating to the incorporation of the municipality.
(b) In addition to the provisions of subsection (a), in all cases in which there has been after the year 1990, an attempt to organize the inhabitants of any territory as a municipal corporation under the laws of this state and the judge of probate of the county in which the territory is situated has entered an order that the inhabitants of the territory are incorporated as a town or city, as the case may be, the incorporation is hereby validated ab initio, and any extensions or other alterations of the corporate limits of the municipality which occurred prior to May 29, 2008, are also validated ab initio and the territory is confirmed as a part of the corporate limits of the municipality, any law to the contrary notwithstanding. Any municipality validated pursuant to this subsection, including any extensions or alterations of the corporate limits, shall be subject to provisions in Sections 11-41-1 and 11-49-80 with regard to assuming responsibility to control, manage, supervise, regulate, repair, maintain, and improve all public streets or parts thereof lying within the incorporated limits. This subsection shall not apply to the incorporation of any municipality held to be invalid in a court of competent jurisdiction by judgment entered prior to May 29, 2008, or in a matter where litigation is pending on May 29, 2008, relating to the incorporation of the municipality, or to any extension or alteration of its corporate limits which occurred prior to May 29, 2008, where litigation is pending on the incorporation prior to May 29, 2008.
*(Acts 1971, No. 162, p. 437; Acts 1977, No. 350, p. 468; Acts 1981, No. 81-659, p. 1074; Acts 1986, No. 86-317, p. 471; Act 98-486, p. 931, §1; Act 2007-385, p. 772, §1; Act 2008-481, p. 1054, §1; Act 2012-375, p. 936, §1.)*
#### **Article 2** Dissolution
##### **§ 11-41-20** Authority {#sec-11-41-20 omnilex-key=us-al-statutes--title-11--11-41-20}
Except as otherwise provided by local law, municipal corporations now existing or hereafter incorporated having a population of 1,100 inhabitants or less may be dissolved as provided in this article.
*(Acts 1919, No. 517, p. 739; Code 1923, §2326; Code 1940, T. 37, §17; Acts 1994, No. 94-167, p. 216, §1.)*
##### **§ 11-41-21** Petition to Probate Judge for Dissolution {#sec-11-41-21 omnilex-key=us-al-statutes--title-11--11-41-21}
Three-fourths of the qualified voters residing within the corporate limits of any municipal corporation having a population of 1,100 inhabitants or less may, in writing, petition to the probate judge of the county in which the same is situated for a dissolution of such corporation.
*(Acts 1919, No. 517, p. 739; Code 1923, §2327; Code 1940, T. 37, §18.)*
##### **§ 11-41-22** Notice and Hearing Upon Petition {#sec-11-41-22 omnilex-key=us-al-statutes--title-11--11-41-22}
Upon the filing of such petition, such probate judge shall set the same down for hearing and give 30 days’ notice of such hearing by written notices stating the date and purpose of such hearing, the same to be posted at the courthouse of the county and also in a public place in the municipality sought to be dissolved, and, upon the day set for the hearing, the probate judge shall hear such petition and the evidence in support of the same.
*(Acts 1919, No. 517, p. 739; Code 1923, §2328; Code 1940, T. 37, §19.)*
##### **§ 11-41-23** Issuance of Decree of Dissolution {#sec-11-41-23 omnilex-key=us-al-statutes--title-11--11-41-23}
If, upon such hearing, it appears to such probate judge that three fourths of the qualified voters of such municipal corporation are in favor of the dissolution of the same, he shall make a decree dissolving such municipal corporation, and thereupon such municipal corporation shall be dissolved and shall cease to exist.
*(Acts 1919, No. 517, p. 739; Code 1923, §2329; Code 1940, T. 37, §20.)*
##### **§ 11-41-24** Grounds for Forfeiture of Charter {#sec-11-41-24 omnilex-key=us-al-statutes--title-11--11-41-24}
If any municipal corporation having a population of 1,100 inhabitants or less shall fail to elect a mayor or other chief executive officer for more than one year after the time fixed for such elections, shall fail to levy and collect city or town taxes or arrange to receive moneys or services in lieu of such taxes for more than three successive years or shall fail to see that the streets and roads within its limits are kept in proper condition, it shall, as a municipal corporation, forfeit its charter, and such forfeitures shall be determined in the manner set out in the following sections.
The provisions of this section shall apply to all such municipal corporations heretofore or hereafter created under the laws of the state of Alabama.
*(Acts 1919, No. 517, p. 739; Code 1923, §2330; Code 1940, T. 37, §21; Acts 1965, No. 660, p. 1184.)*
##### **§ 11-41-25** Petition to Probate Judge for Decree of Forfeiture; Notice and Hearing Upon Petition {#sec-11-41-25 omnilex-key=us-al-statutes--title-11--11-41-25}
The county commission or any five qualified voters of the county in which any such corporation is situated may file with the probate judge of such county a petition in writing setting up one or more of the grounds enumerated in section 11-41-24 and praying for a decree declaring the charter of said town forfeited, and thereupon said judge shall set down and hear said petition after giving notice for the same time and in the same manner as provided in section 11-41-22.
*(Acts 1919, No. 517, p. 739; Code 1923, §2331; Code 1940, T. 37, §22.)*
##### **§ 11-41-26** Rendition of Decree of Forfeiture and Dissolution; Appeal from Same {#sec-11-41-26 omnilex-key=us-al-statutes--title-11--11-41-26}
If, upon such hearing, it shall appear that one of the grounds of forfeiture enumerated in section 11-41-24 exists, the probate judge shall render a decree declaring such charter forfeited and such municipality dissolved, and from any decree rendered under this section any citizen of the town or person filing such petition may appeal to the circuit court upon giving bond for cost of such appeal.
*(Acts 1919, No. 517, p. 739; Code 1923, §2332; Code 1940, T. 37, §23.)*
##### **§ 11-41-27** Disposition of Property After Dissolution {#sec-11-41-27 omnilex-key=us-al-statutes--title-11--11-41-27}
If any municipal corporation dissolved under the provisions of this article shall own any property, the title thereto shall vest in the county in which such municipal corporation is situated, but if such corporation shall owe any debts, such property shall be sold by the county commission, and be applied pro rata to the payment of such indebtedness.
*(Acts 1919, No. 517, p. 739; Code 1923, §2333; Code 1940, T. 37, §24.)*
##### **§ 11-41-28** Fee of Probate Judge {#sec-11-41-28 omnilex-key=us-al-statutes--title-11--11-41-28}
The probate judge shall be entitled to $5.00 for services rendered under this article, to be paid by the person or persons filing the petition.
*(Acts 1919, No. 517, p. 739; Code 1923, §2334; Code 1940, T. 37, §25.)*
### **Chapter 42** Alteration of Corporate Limits
#### **Article 1** Annexation of Territory by Municipalities Generally
##### **§ 11-42-1** Applicability of Provisions of Article; Provisions of Article Not Exclusive {#sec-11-42-1 omnilex-key=us-al-statutes--title-11--11-42-1}
Any town or city may from time to time extend its corporate limits in the manner set forth in this article, but the provisions of this article shall not preclude any city or town from extending its corporate limits in any other way or manner that may be authorized by law.
*(Code 1907, §1070; Code 1923, §1764; Code 1940, T. 37, §134.)*
##### **§ 11-42-2** Annexation Election and Proceedings Generally; Proceedings Where Parties Consent to Annexation {#sec-11-42-2 omnilex-key=us-al-statutes--title-11--11-42-2}
Whenever the council shall pass a resolution to the effect that the public health or public good requires that certain territory (described in the resolution) shall be brought within the limits of the city or town:
(1) It shall be the duty of the mayor to certify a copy of such resolution to the judge of probate of the county in which the land proposed to be annexed is situated, and said certified resolution shall have attached thereto a plat or map of said territory, which certified resolution and plat or map shall be filed by the judge of probate.
(2) Except as provided in subdivision (9) of this section, the judge of probate shall, not less than 10 nor more than 15 days from the date of the filing of such resolution, make and enter an order upon the minutes of said court, directing and ordering an election to be held by the qualified electors residing within the territory described not less than 20 days nor more than 40 days from the date of the making of the order. The said judge shall give notice of the holding of such election by publication in a newspaper published within the city or town whose limits are proposed to be extended if a newspaper is published therein, and if no newspaper is published in such municipality, then by posting notice at three public places in such municipality, which notice shall state the day on which such election is to be held, the voting place or places and the boundaries within which voters must reside to vote at the respective voting places, which must be within the territory proposed to be brought into the city or town, and such notice must give a description of the territory proposed to be annexed and must state that a map of such territory is on file in the office of the judge of probate of said county, open to the inspection of the public.
(3) The judge of probate may designate as many places within the territory proposed to be annexed as he may deem necessary for the convenience of the voters and must designate the boundaries within which the voters must reside to vote at the respective voting places and shall appoint three inspectors of election, two clerks, and one returning officer for each voting place. The inspectors shall manage the election at the respective voting places at which they are appointed as inspectors.
(4) Each qualified elector who has resided within the boundaries of the territory proposed to be brought into the city or town for three months next preceding the election may vote at such election, but must vote at the voting place designated by the judge of probate for voters in the territory in which he resides.
(5) The election to determine whether or not the proposed territory shall be brought within such corporate limits must be conducted in all respects as provided by the general election laws and under the same sanctions and penalties, except as changed by the provisions of this article, and except that an official ballot need not be provided.
(6) Each voter may furnish his own ballot with the following words written or printed thereon: “For annexation,” if he desires to vote in favor of annexing the territory to the city or town or “against annexation,” if he desires to vote against annexing the territory to the city or town. It shall not be necessary for the ballot to be of any particular size, form, or color.
(7) The inspectors at the respective voting places must, as soon as the polls are closed, ascertain and certify the results of the election at their respective voting places to the judge of probate and deliver the same to the returning officer, who must at once return the same to the judge of probate, and the judge of probate must canvass the return as made by the inspectors and if it appears that a majority of the votes cast at the election were “for annexation,” the judge shall make and enter an order on the records of the probate court adjudging and decreeing the corporate limits of the city or town to be extended so as to embrace the territory described in the resolution and designated on the plat or map attached to the resolution and must cause the certified resolution and the map and all orders or decrees or judgments to be recorded in the records in his office, and from the time of the entry of such order such territory shall be a part of and within the corporate limits of the city or town.
If it appears that a majority of the votes cast at the election are “against annexation,” the judge of probate shall make and enter an order on the records of the court adjudging and decreeing that a majority of the votes at such election were cast against coming into the corporate limits of the city or town and that the territory described and designated in the resolution and plat or map attached shall not form a part of or be embraced in the city or town until it may thereafter be brought into the city or town as a part thereof.
(8) The result of such election may be contested by any qualified elector voting at the election in the manner provided for contest of general municipal elections, making the city or town the contestee. The city or town at whose instance the election is held shall pay all costs and expenses incident to the election.
(9) If within 10 days from the date of the filing of the resolution as provided in subdivision (1) of this section, each of the qualified electors who reside in the territory described appears before the said judge of probate and consents to the annexation in writing, then no election shall be held. Upon determining that each of the qualified electors in the said territory has so consented to the annexation, the judge of probate shall make and enter an order on the records of the probate court setting forth such findings and adjudging and decreeing the corporate limits of the city or town to be extended so as to embrace the territory described in the resolution and designated on the plat or map attached to the resolution and must cause the certified resolution and map and all orders or decrees or judgments to be recorded in the records in his office, and from the time of the entry of such order such territory shall be a part of and within the corporate limits of the city or town.
(10) The plat or map filed with the certified copy of the resolution as required in subdivision (1) of this section, shall show accurately the territory proposed to be embraced within the corporate limits, including all subdivisions into lots, blocks, streets, and alleys within such territory, if any, and an accurate description by metes and bounds of the boundary of such territory, which territory must be contiguous to the boundary of and form a homogeneous part of the city or town and may extend to or around the boundary line of any other city or town, but is not to embrace any territory within the corporate limits of another municipality. No platted or unplatted territory shall be included within such boundary unless there are at least two qualified electors residing, according to a government survey, on each quarter of each quarter section or part thereof of such platted or unplatted land who assent thereto in writing by signing said petition, together with the consent of the persons, firms, or corporations owning at least 60 percent of the acreage of such platted or unplatted land, such consent to be signified by their signing said petition. Proof of residence and qualification as electors of petitioners and of persons affected shall be made to the judge of probate by affidavit or otherwise, as he may direct. When determining the ownership of the land within such boundary, the persons, firms, or corporations assessing the same for taxation shall be accepted by the probate judge as prima facie the owners thereof.
*(Code 1907, §1071; Code 1923, §1765; Code 1940, T. 37, §135; Acts 1953, No. 842, p. 1132; Acts 1965, No. 402, p. 578.)*
##### **§ 11-42-3** Subsequent Extensions of Corporate Limits; Requirement as to Resolutions, Orders, or Notices Under Article {#sec-11-42-3 omnilex-key=us-al-statutes--title-11--11-42-3}
(a) Any city or town having extended its corporate limits under the provisions of this article or other law may again extend its corporate limits under this article or under any other law authorizing an extension of corporate limits by such city or town.
(b) In every proceeding to extend the corporate limits of any city or town under the provisions of this article, the council of such city or town shall declare in each and every resolution provided for in this article and the probate judge shall declare in each and every order directing and ordering an election to be held under this article, and in every notice given under this article, and in every order made and entered on the records of the probate court under this article, that such resolution, order, or notice, as the case may be, is passed, entered, or given under the provisions of this article.
*(Code 1907, §1072; Code 1923, §1766; Code 1940, T. 37, §136.)*
##### **§ 11-42-4** Subsequent Elections Not to Be Held Within 12 Months of Preceding Election {#sec-11-42-4 omnilex-key=us-al-statutes--title-11--11-42-4}
After an election has been held in any territory under the provisions of this article or any other law, no other or subsequent election shall be ordered or held for the same territory or any part thereof within 12 months next after said election.
*(Code 1907, §1073; Acts 1909, No. 200, p. 197; Code 1923, §1767; Code 1940, T. 37, §137.)*
##### **§ 11-42-5** Validation of Certain Prior Annexations {#sec-11-42-5 omnilex-key=us-al-statutes--title-11--11-42-5}
Every annexation undertaken prior to May 31, 2023, under any statutory procedure for annexation by any municipality and which the annexation procedure has been completed, notwithstanding any irregularity or defect in the procedure, is ratified and confirmed and given effect in all respects as if all provisions of law relating to the annexation proceeding had been duly and legally complied with. This section shall not apply to any annexation or attempted annexation which, prior to May 31, 2023, has been held invalid by the Supreme Court of Alabama or by the Court of Civil Appeals of Alabama or by a final judgment of the circuit court in the county in which the annexation was completed and from which judgment an appeal was not taken to the Supreme Court of Alabama or the Court of Civil Appeals of Alabama within the time provided by law for taking appeals, or to any annexation the validity of which is an issue in a pending action commenced prior to May 31, 2023. Nothing in this section shall be construed to alter the provisions of Article 5, commencing at Section 11-49-80, of Chapter 49, which requires a municipality to assume responsibility for roads annexed into the municipality under certain circumstances.
*(Acts 1977, No. 752, p. 1290; Acts 1987, No. 87-796, p. 1569; Acts 1993, No. 93-569, p. 948, §1; Act 98-487, p. 932, §1; Act 2011-214, p. 400, §1; Act 2023-335, §1.)*
##### **§ 11-42-6** Bill to Contain Accurate Description of Territory and Plat or Map; Copies of Map to Be Furnished to Judge of Probate; Notice of Intention to Apply for Local Law Annexing Territory {#sec-11-42-6 omnilex-key=us-al-statutes--title-11--11-42-6}
(a) Any bill introduced in the legislature which attempts to annex territory to any municipality or to otherwise change the boundary lines of any municipality shall contain an accurate description of the territory proposed to be annexed to or removed from such municipality together with a plat or map of such territory attached; showing its relationship to the corporate limits of the municipality to which such territory is proposed to be annexed. Copies of such map shall also be furnished to the judge of probate for the county or counties wherein the territory proposed to be annexed to or removed from the municipality is located.
(b) The publication of notice of intention to apply for any local law annexing territory to any municipality or otherwise changing the boundary lines of any municipality shall, in addition to all other requirements provided by law, state that a map showing what territory is to be annexed to or removed from such municipality is on file in the office of the judge of probate in the county or counties wherein such territory is located and that such map is open to the inspection of the public.
*(Acts 1986, No. 86-535, p. 1038.)*
##### **§ 11-42-7** Legislative Reapportionment Office to Be Notified of Annexation or Deannexation {#sec-11-42-7 omnilex-key=us-al-statutes--title-11--11-42-7}
Any municipality which annexes property into the municipality or deannexes property from the municipality shall notify the Legislative Reapportionment Office of such action within seven days of the final action. The municipality shall provide all census blocks involved in the annexation or deannexation to the Legislative Reapportionment Office so that the office may maintain accurate information concerning the corporate limits of each municipality located within the state. A municipality’s failure to notify the Legislative Reapportionment Office as provided herein shall not be grounds to challenge or invalidate the annexation or deannexation.
*(Act 2006-249, p. 452, §1.)*
#### **Article 2** Annexation of Territory by Municipalities with Consent of All Property Owners
##### **§ 11-42-20** “Owners” Defined {#sec-11-42-20 omnilex-key=us-al-statutes--title-11--11-42-20}
The term “owners,” as used in this article, shall mean the person in whose name the property is assessed for ad valorem tax purposes in the absence of proof to the contrary.
*(Acts 1971, No. 2228, p. 3585, §1.)*
##### **§ 11-42-21** Annexation Proceedings {#sec-11-42-21 omnilex-key=us-al-statutes--title-11--11-42-21}
(a) Whenever all of the owners of property located and contained within an area contiguous to the corporate limits of any incorporated municipality located in the state and the property does not lie within the corporate limits or police jurisdiction of any other municipality, shall sign and file a written petition with the city clerk of the municipality requesting that the property be annexed to the municipality, and the governing body of the municipality adopts an ordinance assenting to the annexation of the property to the municipality, the corporate limits of the municipality shall be extended and rearranged so as to embrace and include the property, and the property shall become a part of the corporate area of the municipality upon the date of the publication of the ordinance.
(b)(1) In the event any incorporated municipality’s police jurisdiction overlaps with the police jurisdiction of one or more other incorporated municipalities, the governing body of any one of the incorporated municipalities may exercise the authority of this article, in the overlapping portions of their police jurisdiction, to a boundary which is equidistant from the respective corporate limits of each of the incorporated municipalities which have overlapping police jurisdictions.
(2) If all of the owners of property located and contained within the area to be annexed sign and file a written petition with the city clerk of the incorporated municipality requesting that the property be annexed to the incorporated municipality, and the property is contiguous to the corporate limits of the incorporated municipality, and the governing body of the incorporated municipality adopts an ordinance assenting to the annexation of the property to the municipality, the corporate limits of the municipality shall be extended and rearranged so as to embrace and include the property and the property shall become part of the corporate area of the municipality upon the date of the publication of the ordinance.
(c) If an incorporated municipality intends to exercise its rights pursuant to subsection (b), but would have to perform more than one annexation pursuant to the equidistant rule provided by subsection (b) to acquire the entire parcel of property it intends to annex, the incorporated municipality may request that all of the municipalities whose police jurisdictions overlap assent to the annexation by adoption of a resolution of the governing body of each of the municipalities, and if the governing body of the annexing municipality adopts an ordinance assenting to the annexation of the property to the municipality, then the corporate limits of the municipality shall be extended and rearranged so as to embrace and include the property, and the property shall become a part of the corporate area of the municipality upon the date of the publication of the ordinance.
(d) The petition required by this section shall contain an accurate description of the property proposed to be annexed together with a map of the property showing its relationship to the corporate limits of the municipality to which the property is proposed to be annexed and the signatures of all of the owners of the property described. It shall be the duty of the governing body to file a description of the property annexed in the office of the judge of probate of the county in which the municipality is located.
*(Acts 1971, No. 2228, p. 3585, §1; Acts 1981, No. 81-352, p. 507; Acts 1982, No. 82-507, p. 838, §1; Act 2021-459, §1.)*
##### **§ 11-42-22** Subsequent Extensions of Corporate Limits {#sec-11-42-22 omnilex-key=us-al-statutes--title-11--11-42-22}
Any incorporated municipality having extended its corporate limits under the provisions of this article or any other law may again extend its corporate limits under this article or under any other law authorizing an extension of the corporate limits by such incorporated municipality.
*(Acts 1971, No. 2228, p. 3585, §2; Acts 1982, No. 82-507, p. 838, §2.)*
##### **§ 11-42-23** Provisions of Article Not Exclusive {#sec-11-42-23 omnilex-key=us-al-statutes--title-11--11-42-23}
The provisions of this article shall in no wise preclude any municipality from extending its corporate limits by annexation in any other way or manner that may be authorized by law.
*(Acts 1971, No. 2228, p. 3585, §3.)*
##### **§ 11-42-24** Construction of Article {#sec-11-42-24 omnilex-key=us-al-statutes--title-11--11-42-24}
This act [amended sections 11-42-21, 11-42-22] shall not be construed to affect any proposed annexation, done under the provisions of this article, in progress at the time this act [amended sections 11-42-21, 11-42-22] becomes a law; nor shall it affect any proceedings in a court of competent jurisdiction involving annexations attempted under this article.
*(Acts 1982, No. 82-507, p. 838, §3.)*
#### **Article 2A** Annexation of Territory by Class 6 Municipality of Land Contiguous to Public University
##### **§ 11-42-30** Annexation of Territory Contiguous to Public University {#sec-11-42-30 omnilex-key=us-al-statutes--title-11--11-42-30}
Notwithstanding any other provision of law, any Class 6 municipality may annex land or territory pursuant to the provisions of this chapter, provided the land or territory is contiguous to land or territory owned by a public university when the land or territory owned by the university is contiguous to the municipality notwithstanding the fact that the land or territory to be annexed is not contiguous to the municipality. Nothing in this section shall affect the status of property owned by the university.
*(Act 99-577, p. 1303, §1.)*
#### **Article 3** Annexation of Territory by Cities of 25,000 Inhabitants or More
##### **§ 11-42-40** Applicability of Provisions of Article; Provisions of Article Not Exclusive {#sec-11-42-40 omnilex-key=us-al-statutes--title-11--11-42-40}
Any city having 25,000 inhabitants or more, as shown by the last federal census, from time to time, may extend its corporate limits in the manner and with the rights, powers, and privileges as set forth in this article, but the provisions of this article shall not preclude any city from extending its corporate limits in any other way or manner that may be authorized by law.
*(Code 1907, §1075; Code 1923, §1769; Code 1940, T. 37, §138.)*
##### **§ 11-42-41** Passage of Resolution to Annex Territory {#sec-11-42-41 omnilex-key=us-al-statutes--title-11--11-42-41}
The council or governing body of the city may pass a resolution to the effect that the public health or public good requires that certain territory (described in the resolution) shall be brought within the limits of the city.
*(Code 1907, §1076; Code 1923, §1770; Code 1940, T. 37, §139.)*
##### **§ 11-42-42** Certification and Filing of Resolution and Map or Plat of Territory to Be Annexed with Probate Judge {#sec-11-42-42 omnilex-key=us-al-statutes--title-11--11-42-42}
(a) The mayor or other executive head of the city shall certify a copy of such resolution to the judge of probate of the county in which the land proposed to be brought into the city is situated, and said certified resolution shall have attached thereto a plat or map of the territory proposed to be brought into the corporate limits of the city, which certified resolution and plat or map shall be filed with the judge of probate.
(b) The plat or map filed with the certified copy of the resolution as required in subsection (a) of this section shall show the boundary of the territory proposed to be taken into the city, which territory must be contiguous to the boundary of the city at some point and may extend to or around the boundary line of any other city, but is not to embrace any territory within the corporate limits of another city.
*(Code 1907, §§1077, 1089; Code 1923, §§1771, 1783; Code 1940, T. 37, §§140, 152.)*
##### **§ 11-42-43** Ordering of Election {#sec-11-42-43 omnilex-key=us-al-statutes--title-11--11-42-43}
Within 10 days of the date of the filing of such certified copy of resolution with plat or map attached, the judge of probate must make and enter an order upon the minutes of said court directing and ordering an election to be held by the qualified electors residing within the territory described in such plat or map not less than 20 days nor more than 40 days from the date of the making of the order.
*(Code 1907, §1078; Code 1923, §1772; Code 1940, T. 37, §141.)*
##### **§ 11-42-44** Notice of Election {#sec-11-42-44 omnilex-key=us-al-statutes--title-11--11-42-44}
The said judge of probate shall give notice of the holding of such election by publication in at least one newspaper and, at the discretion of the judge, in more than one newspaper published in the county wherein such election is to be held, which notice shall state the day on which such election will be held, the voting place or places at which the election will be held and the boundaries within which voters must reside to vote at the respective voting places, which must be within the territory proposed to be brought into the city, and such notice must give a description of the territory proposed to be brought within the city and must state that a map showing the territory proposed to be brought into the city is on file in the office of the judge of probate of said county, open to the inspection of the public.
*(Code 1907, §1079; Code 1923, §1773; Code 1940, T. 37, §142.)*
##### **§ 11-42-45** Designation of Voting Places and Boundaries for Voting {#sec-11-42-45 omnilex-key=us-al-statutes--title-11--11-42-45}
The judge of probate may designate as many voting places within the territory proposed to be annexed as he may deem necessary for the convenience of the voters and must designate the boundaries within which the voters must reside to vote at the respective voting places.
*(Code 1907, §1080; Code 1923, §1774; Code 1940, T. 37, §143.)*
##### **§ 11-42-46** Appointment of Inspectors and Returning Officers; Duty of Inspectors Generally {#sec-11-42-46 omnilex-key=us-al-statutes--title-11--11-42-46}
The probate judge shall appoint three inspectors of election and one returning officer for each voting place. The inspectors shall manage the election at the respective voting places at which they are appointed inspectors.
*(Code 1907, §1081; Code 1923, §1775; Code 1940, T. 37, §144.)*
##### **§ 11-42-47** Qualifications for Voting; Electors to Vote at Designated Voting Places {#sec-11-42-47 omnilex-key=us-al-statutes--title-11--11-42-47}
Each qualified voter who has resided within the boundaries of the territory proposed to be brought into the city for three months next preceding the election may vote at such election, but must vote at the voting place designated by the judge of probate for voters in the territory in which he resides within the territory proposed to be brought into the city.
*(Code 1907, §1082; Code 1923, §1776; Code 1940, T. 37, §145.)*
##### **§ 11-42-48** Applicability of General Election Laws {#sec-11-42-48 omnilex-key=us-al-statutes--title-11--11-42-48}
The election to determine whether or not the proposed territory shall be brought within the corporate limits of the city must be conducted in all respects as provided by the general election laws and under the same sanction and penalties, except as changed by the provisions of this article, and except that an official ballot need not be provided.
*(Code 1907, §1083; Code 1923, §1777; Code 1940, T. 37, §146.)*
##### **§ 11-42-49** Ballots {#sec-11-42-49 omnilex-key=us-al-statutes--title-11--11-42-49}
Each voter may furnish his own ballot with the following words written or printed thereon: “For annexation,” if he desires to vote in favor of annexing the territory to the city or “Against annexation,” if he desires to vote against annexing the territory to the city. It shall not be necessary for the ballot to be of any particular size, form, or color.
*(Code 1907, §1084; Code 1923, §1778; Code 1940, T. 37, §147.)*
##### **§ 11-42-50** Ascertainment, Certification, and Delivery of Election Results {#sec-11-42-50 omnilex-key=us-al-statutes--title-11--11-42-50}
The inspectors at the respective voting places must, as soon as the polls are closed, ascertain and certify the results of the election at their respective voting places to the judge of probate and deliver the same to the returning officer, who must at once return the same to the judge of probate.
*(Code 1907, §1085; Code 1923, §1779; Code 1940, T. 37, §148.)*
##### **§ 11-42-51** Canvassing of Returns; Entry, Recordation, Etc., of Orders, Maps, Etc., as to Annexation of Territory {#sec-11-42-51 omnilex-key=us-al-statutes--title-11--11-42-51}
The judge of probate must canvass the returns as made by the inspectors and if it appears that a majority of the votes cast at the election were “for annexation” the judge shall make and enter an order on the records of the probate court adjudging and decreeing the corporate limits of the city to be extended so as to embrace the territory described in the resolution and designated on the plat or map attached to the resolution, and must cause the certified resolution and all orders or decrees or judgments to be recorded in the records in his office and must also cause the map or plat to be recorded in the map records in his office, and from the time of the entry of such order such territory shall be a part of and within the corporate limits of the city with the limitations, rights, powers, and privileges set forth in this article.
If it appears that a majority of the votes cast at the election are “against annexation,” the judge of probate shall make and enter an order on the records of the court adjudging and decreeing that a majority of the votes cast at such election were cast against coming into the corporate limits of the city and that the territory described and designated in the resolution and plat or map attached shall not form a part of or be embraced in the city until it may thereafter be brought into the city as a part thereof.
*(Code 1907, §1086; Code 1923, §1780; Code 1940, T. 37, §149.)*
##### **§ 11-42-52** Contests of Election {#sec-11-42-52 omnilex-key=us-al-statutes--title-11--11-42-52}
The result of such election may be contested by any qualified elector voting at the election in the manner provided for control of general municipal elections, making the city the contestee.
*(Code 1907, §1087; Code 1923, §1781; Code 1940, T. 37, §150.)*
##### **§ 11-42-53** Costs of Election {#sec-11-42-53 omnilex-key=us-al-statutes--title-11--11-42-53}
The city at whose instance the election is held shall pay all cost and expense incident to the election.
*(Code 1907, §1088; Code 1923, §1782; Code 1940, T. 37, §151.)*
##### **§ 11-42-54** Subsequent Extensions of Corporate Limits {#sec-11-42-54 omnilex-key=us-al-statutes--title-11--11-42-54}
Any city having extended its corporate limits under the provisions of this article or any other act or law may again extend its corporate limits under this article or under any other act or law authorizing an extension of corporate limits by such city.
*(Code 1907, §1123; Code 1923, §1817; Code 1940, T. 37, §185.)*
##### **§ 11-42-55** Requirement as to Resolutions, Orders, or Notices Under Article {#sec-11-42-55 omnilex-key=us-al-statutes--title-11--11-42-55}
In every proceeding to extend the corporate limits of any city under the provisions of this article the council of such city shall declare in each and every resolution provided for in this article and the probate judge shall declare in each and every order directing and ordering an election to be held under this article and in every notice given hereunder and in every order made and entered on the records of the probate court under this article, that such resolution, order, or notice, as the case may be, is passed, ordered, or given under the provisions of this article.
*(Code 1907, §1124; Code 1923, §1818; Code 1940, T. 37, §186.)*
##### **§ 11-42-56** Subsequent Elections Not to Be Held Within 12 Months of Preceding Election {#sec-11-42-56 omnilex-key=us-al-statutes--title-11--11-42-56}
After an election has been held in any territory under the provisions of this or any other similar law, no other or subsequent election shall be ordered or held for the same territory or any part thereof within 12 months next after said election.
*(Code 1907, §1125; Code 1923, §1819; Code 1940, T. 37, §187.)*
##### **§ 11-42-57** Exemption from Taxation of Territory Annexed and Property Therein {#sec-11-42-57 omnilex-key=us-al-statutes--title-11--11-42-57}
All territory brought within the corporate limits of a city under the provisions of this article and all property having a situs within such territory shall be exempt from city taxation or the payment of taxes to the city for the period of not less than 10 nor more than 15 years from the time when such territory is brought within the corporate limits of the city, which period of exemption shall be fixed in the resolution passed by the council or governing body of the city authorized under the provisions of section 11-42-41, except as provided in sections 11-42-58 and 11-42-59.
*(Code 1907, §1090; Code 1923, §1784; Code 1940, T. 37, §153.)*
##### **§ 11-42-58** Certain Annexed Territory and Property Therein Subject to Taxation After Five Years {#sec-11-42-58 omnilex-key=us-al-statutes--title-11--11-42-58}
From time to time after the lapse of five years from the time when such territory is brought within the corporate limits of the city, all portions of such territory as has residing on it a population of at least 20 persons on a contiguous 10 acres of land (in form of a square or any other shape) and all property having a situs on such populated territory shall thereafter be subject to taxation by the city and taxes thereon shall be paid to the city.
*(Code 1907, §1091; Code 1923, §1785; Code 1940, T. 37, §154.)*
##### **§ 11-42-59** Exemption from Taxation of Mining, Manufacturing, or Industrial Plants, Etc., in Annexed Territory {#sec-11-42-59 omnilex-key=us-al-statutes--title-11--11-42-59}
All portions of such territory which is at the time it is brought within the corporate limits of the city used or occupied as or as a part of a mining, manufacturing, or industrial plant or construction or which is used or occupied as or as a part of a railroad or street railroad or for any other quasi-public use and continues to be so used and all property having a situs on such territory (but not including residences, dwelling houses, storehouses, commissaries, warehouses, or the land on which they are situated) shall be exempt from city taxation for a period of 10 years, and all portions of such territory which, after it is brought within the corporate limits of the city, is used or occupied by a new construction as or as a part of a mining, manufacturing, or industrial plant or construction or which is used or occupied as or as a part of a railroad or a street railroad or for any other quasi-public use and continues to be so used and all property having a situs on such territory (but not including residences, dwelling houses, storehouses, commissaries, warehouses, or the land on which they are situated) shall be exempt from city taxation for a period of 10 years from the time of construction, use, or occupation, but in no event is the exemption to extend beyond 15 years from the time when such territory is brought within the corporate limits of the city.
*(Code 1907, §1092; Code 1923, §1786; Code 1940, T. 37, §155.)*
##### **§ 11-42-60** Passage, Certification, Filing with Probate Judge, Etc., of Resolution Declaring Annexed Territory Subject to Taxation and Map of Same {#sec-11-42-60 omnilex-key=us-al-statutes--title-11--11-42-60}
Whenever and as often as the facts exist which authorize a city to collect taxes from and on any portion of the territory brought within the corporate limits under the provisions of this article, the council or governing body of the city shall pass a resolution declaring the territory (described in the resolution) subject to taxation, and thereupon the mayor or governing head of the city shall make and file with the judge of probate of the county in which the city is situated a certified copy of such resolution, together with a map of such territory attached thereto showing respectively the land owned by the respective owners, if the owners are known, or “unknown owners” where owners are not known.
*(Code 1907, §1093; Code 1923, §1787; Code 1940, T. 37, §156.)*
##### **§ 11-42-61** Notice of Passage of Resolution and Hearing for Property Owners to Show Cause Why Property Should Not Be Subject to Taxation {#sec-11-42-61 omnilex-key=us-al-statutes--title-11--11-42-61}
The mayor or other governing head of the city, within five days of the time he files the certified copy of such resolution with map attached as provided in section 11-42-60, shall give notice by publication once a week for three sucessive weeks in some newspaper published in the city to the person or persons owning the land described in the resolution of the passing of the resolution by the council or governing body, and shall further state in said notice that a certified copy of the resolution with map attached is on file in the office of the judge of probate of the county, and shall cite the property owner or owners (without naming them) to appear before the judge of probate of said county on a day fixed in the notice, which must not be less than 30 days from the first publication of the notice, to show cause, if any, why said land or any part thereof or property having a situs thereon should not thereafter pay taxes to the city or be subject to taxation by the city.
*(Code 1907, §1094; Code 1923, §1788; Code 1940, T. 37, §157.)*
##### **§ 11-42-62** Separately Owned Lands May Be Embraced in Single Resolution or Notice {#sec-11-42-62 omnilex-key=us-al-statutes--title-11--11-42-62}
Land owned by any number of separate and distinct owners may be embraced in the same resolution passed by the board or governing body of the city, and notice or citation by publication may be given to all owners by the mayor in one notice, but each owner shall have the right of contest as provided in this article as to any land owned by him.
*(Code 1907, §1095; Code 1923, §1789; Code 1940, T. 37, §158.)*
##### **§ 11-42-63** Filing of Contest as to Right of City to Tax Lands or Property; City to File Separate Causes Against Contesting Property Owners {#sec-11-42-63 omnilex-key=us-al-statutes--title-11--11-42-63}
(a) On the day fixed in the notice or any day to which said cause may be continued, any owner of any of the property declared to be subject to taxation by the city in the resolution may file with the judge of probate a contest contesting the right of the city to tax any of the land or property owned by him, assigning as grounds for such contest the nonexistence of some one or more of facts required by this article to be in existence before the property is subject to city taxation.
(b) A separate case shall be docketed by the city against each property owner who files a contest, and thereafter such cause shall be a separate and distinct cause.
*(Code 1907, §1096; Code 1923, §1790; Code 1940, T. 37, §159.)*
##### **§ 11-42-64** Rendition of Decree Adjudging Property Subject to Taxation, Etc., as to Noncontesting Property Owners {#sec-11-42-64 omnilex-key=us-al-statutes--title-11--11-42-64}
On the day fixed in the citation published by the mayor for the hearing before the judge of probate or the day to which such case is continued, as to such property owner or owners as do not file a contest, the judge of probate shall render a decree adjudging that the land owned by such property owner or owners and all property having a situs thereon shall thereafter be subject to taxation by the city, and taxes thereon shall be paid to the city, and shall cause the map attached to the certified resolution passed by the board or governing body of the city to be recorded, and after the said map is recorded, the judge of probate shall endorse on said map, “adjudged subject to city taxation,” on such portion of the property covered by said map as is adjudged to be subject to city taxation.
*(Code 1907, §1097; Code 1923, §1791; Code 1940, T. 37, §160.)*
##### **§ 11-42-65** Hearings on Contests as to Right to Tax; Rendition of Decree as to Taxation of Property {#sec-11-42-65 omnilex-key=us-al-statutes--title-11--11-42-65}
(a) As to each cause against a property owner who filed a contest, the judge of probate may set the same for hearing at such time as he sees fit, and on the hearing shall hear such evidence as is introduced by either the property owner or the city and shall determine as to whether or not the facts which authorize the property to be taxed by the city under the terms of this article did or did not exist at the time the certified resolution was passed by the board or governing body of the city.
(b) If the judge of probate decides that the requisite facts did exist at the time of the passing of the resolution, he shall render a decree adjudging that thereafter the land and property having a situs thereon (described in the decree) shall be subject to taxation by the city and that taxes thereon shall thereafter be paid to the city.
If the judge of probate decides that the requisite facts did not exist at the time of the passing of said resolution, the judge of probate shall render a decree adjudging that the land and property having a situs thereon is not subject to taxation by the city, and that taxes thereon shall not be paid to the city until the facts thereafter authorize such taxation in accordance with the provisions of this article.
*(Code 1907, §1098; Code 1923, §1792; Code 1940, T. 37, §161.)*
##### **§ 11-42-66** Appeals from Judgment of Probate Judge - Filing; Security for Costs; Right to Jury Trial {#sec-11-42-66 omnilex-key=us-al-statutes--title-11--11-42-66}
The property holders of the city shall have the right to appeal from the judgment of the judge of probate to the circuit court of the county in which the land is situated, within 10 days from the rendition of the judgment by the judge of probate, the property owner giving security for cost of appeal, to be approved by the judge of probate, if the appeal is taken by the property owner.
On an appeal taken by either party, the action shall be entered on the trial docket and tried de novo in the circuit court, without a jury unless a trial by jury is demanded by the party taking the appeal by serving upon the other party a demand therefor in writing not less than 10 days after filing the notice of appeal or unless a trial by jury is demanded by the other party in the action by serving a demand therefor in writing upon the other party within 10 days from the time that notice of such appeal is served on him.
*(Code 1907, §1099; Code 1923, §1793; Code 1940, T. 37, §162.)*
##### **§ 11-42-67** Appeals from Judgment of Probate Judge - Issuance and Service of Notice of Appeal {#sec-11-42-67 omnilex-key=us-al-statutes--title-11--11-42-67}
The judge of probate, within 10 days after an appeal is taken, shall issue notice to the opposite party of the appeal, and place such notice in the hands of the sheriff of the county, and the sheriff shall serve such notice upon the party to whom the same is issued and make returns thereof to the said judge of probate, but if the city takes the appeal, such notice issued to the property holder may be served upon the property holder or his agent or attorney, and if the property holder, his agent or attorney cannot be found by the sheriff, upon any person over the age of 19 years residing on or having custody of the property of such property owner.
*(Code 1907, §1100; Code 1923, §1794; Code 1940, T. 37, §163.)*
##### **§ 11-42-68** Appeals from Judgment of Probate Judge - Transmittal of Papers to Clerk of Circuit Court; Withdrawal of Map and Certified Resolution from Files of Probate Judge for Use in Circuit Court {#sec-11-42-68 omnilex-key=us-al-statutes--title-11--11-42-68}
If an appeal is taken, the judge of probate shall transmit all papers in the action, except the map and certified resolution, to the clerk of the court to which the appeal is taken, and such map and certified resolution, after the same have been recorded by the judge of probate as provided in this article, may be withdrawn from the file in the judge of probate’s office by either party for use in the trial of the action in the circuit court, but must be returned to the judge of probate immediately after the trial of said action in the circuit court.
*(Code 1907, §1101; Code 1923, §1795; Code 1940, T. 37, §164.)*
##### **§ 11-42-69** Trial and Entry of Judgment by Circuit Court; Appeals from Judgment of Circuit Court; Endorsement on Map by Probate Judge Where No Appeal from Judgment of Probate Court {#sec-11-42-69 omnilex-key=us-al-statutes--title-11--11-42-69}
(a) If on the trial in the circuit court it be adjudged that the requisite facts did exist subjecting the land and property having a situs thereon to taxation by the city, a judgment shall be entered adjudging that the land and property having a situs thereon be, and the same is, subject to taxation by the city and that the taxes thereon shall be paid to the city. If it be adjudged that the requisite facts did not exist, a judgment shall be entered adjudging that the land and property having a situs thereon is not subject to taxation by the city, and the cost of appeal and of contest shall be adjudged against the losing party.
(b) Either the city or the property owner may appeal from the judgment of the circuit court to the supreme court within the time and in the same manner as is provided by the Alabama Rules of Appellate Procedure for an appeal from such court in an analogous action.
(c) In each contested action before the judge of probate where judgment is entered adjudging that the property is subject to city taxation and where there is no appeal from such judgment, the judge of probate, as soon as the time for an appeal has expired, shall make an endorsement on the record of said map across the property in contest as shown on said map, “Adjudged subject to city taxation.”
*(Code 1907, §1102; Code 1923, §1796; Code 1940, T. 37, §165.)*
##### **§ 11-42-70** Certification to Probate Judge of Judgment of Circuit Court; Endorsement on Map by Probate Judge {#sec-11-42-70 omnilex-key=us-al-statutes--title-11--11-42-70}
If there is an appeal from the judgment rendered by the probate judge and, on the termination of such appealed action, it is adjudged that the property in controversy is subject to city taxation, the clerk of the circuit court shall briefly certify to the judge of probate that it has been adjudged that the property is subject to city taxation and thereupon the judge of probate shall endorse upon the record of said map on the property in controversy as shown on said map, “Adjudged subject to city taxation.”
*(Code 1907, §1103; Code 1923, §1797; Code 1940, T. 37, §166.)*
##### **§ 11-42-71** When Property Adjudged Subject to Taxation Becomes Liable for Payment of Taxes; Recordation of Resolution, Map, Orders, Etc., of Probate Judge, Etc {#sec-11-42-71 omnilex-key=us-al-statutes--title-11--11-42-71}
(a) All property adjudged to be subject to city taxation under the provisions of this article shall be liable for the payment of taxes to the city from and after the commencement of the city tax year commencing next after the time of the passing of the resolution by the board of aldermen or governing body of the city embracing the property adjudged to be subject to city taxation.
(b) The judge of probate shall cause to be recorded in the records of his office the certified copy of the resolution filed with him, together with map attached, and all orders and decrees or judgments rendered by him and the certificate of the clerk of the circuit court filed with him in any appealed cause, but the said map is to be recorded in the map records as provided in this article.
*(Code 1907, §1104; Code 1923, §1798; Code 1940, T. 37, §167.)*
##### **§ 11-42-72** Annexed Territory Subject to Laws and Ordinances of City; Jurisdiction of City Governing Body Over Annexed Territory {#sec-11-42-72 omnilex-key=us-al-statutes--title-11--11-42-72}
All territory brought within the corporate limits of a city under the provisions of this article shall be subject to the laws and ordinances of said city, and the council or governing body of the city shall have and exercise the same jurisdiction over such territory as is exercised over the territory within the corporate limits of the city, except as by this article restricted and except as may be restricted by ordinance or resolution passed by the council or governing body of the city.
*(Code 1907, §1105; Code 1923, §1799; Code 1940, T. 37, §168.)*
##### **§ 11-42-73** Creation, Etc., of Wards; Election of Aldermen or Representatives {#sec-11-42-73 omnilex-key=us-al-statutes--title-11--11-42-73}
(a) The council or governing body of the city shall create new wards (as many as may be deemed to be necessary) regardless of any limitation in the charter of the city on the number of wards, or may enlarge the wards so as to embrace all territory brought within the corporate limits of the city and so as to afford opportunity to all persons entitled to vote at elections in the city to vote thereat.
(b) Each ward in the city shall have the same number of aldermen or representatives in the council or governing body of the city, and as new wards are created the council or governing body of the city shall elect aldermen or representatives to represent such wards in the council or governing body of the city, as in the case of a vacancy, the aldermen or representatives so elected to hold office until the next regular election in the city; provided, however, that no person residing on territory which is exempt from taxation under provisions of this article shall have any right to vote in any election held in the city for the election of any city officer or in any other election held in the city which pertains to the government of said city, but no person who resides in territory exempt from taxation under the provisions of this article shall be eligible to hold any elective office in said city, and in no event shall there be more than 30 aldermen or representatives in the council or governing body of the city.
*(Code 1907, §1106; Code 1923, §1800; Code 1940, T. 37, §169.)*
##### **§ 11-42-74** Division of Wards into Voting Precincts; Electors to Vote in Precincts of Residence; Rearrangement, Etc., of Boundaries of Voting Precincts {#sec-11-42-74 omnilex-key=us-al-statutes--title-11--11-42-74}
The council or governing body of the city shall by resolution or ordinance divide the respective wards in the city into voting precincts, as many as may be necessary, and such elector shall vote in the precinct of his residence, and the boundary lines of such voting precinct shall be arranged and rearranged from time to time so that, as nearly as practicable, no more than 300 electors reside in any voting precinct, except where voting machines are used.
*(Code 1907, §1107; Code 1923, §1801; Code 1940, T. 37, §170.)*
##### **§ 11-42-75** Rearrangement, Etc., of Boundaries of Wards {#sec-11-42-75 omnilex-key=us-al-statutes--title-11--11-42-75}
The council or governing body of the city shall have the power to change or rearrange the boundary lines of wards in said city as often as necessary for the purpose of equalizing the number of voters entitled to vote in each ward in the city and each ward in the city shall have as near as practicable an equal number of qualified electors.
*(Code 1907, §1108; Code 1923, §1802; Code 1940, T. 37, §171.)*
##### **§ 11-42-76** Entitlement of Persons in Territory Exempt from Taxation to Benefits Derived from City Taxes {#sec-11-42-76 omnilex-key=us-al-statutes--title-11--11-42-76}
No person residing in territory exempt from taxation in the city shall be entitled to receive any of the benefits derived from taxes paid to the city; except, that as far as practicable it shall be the duty of the city to give police and fire protection to persons and property in the exempt district.
*(Code 1907, §1109; Code 1923, §1803; Code 1940, T. 37, §172.)*
##### **§ 11-42-77** Construction of Improvements or Betterments in Territory Exempt from Taxation Generally {#sec-11-42-77 omnilex-key=us-al-statutes--title-11--11-42-77}
The council or governing body of the city shall have no authority or power to construct or cause to be constructed any improvements or betterments in territory which is exempt from taxation under the provisions of this article, the cost of which or any part of which is assessable against the abutting property, except as provided in this article.
*(Code 1907, §1115; Code 1923, §1809; Code 1940, T. 37, §177.)*
##### **§ 11-42-78** Construction of Sanitary Sewers, Enforcement of Sanitary Connections, and Assessment of Costs Thereof in Territory Exempt from Taxation {#sec-11-42-78 omnilex-key=us-al-statutes--title-11--11-42-78}
The council or governing body of the city shall have the right to construct or cause to be constructed sanitary sewers and enforce sanitary connections in the territory exempt from city taxation under the provisions of this article and assess the cost and expense thereof against the abutting property in the same manner and under the same laws and to the same extent as it is authorized to construct similar betterments and enforce connections in the territory within the corporate limits of the city not exempt from taxation.
*(Code 1907, §1110; Code 1923, §1804; Code 1940, T. 37, §173.)*
##### **§ 11-42-79** Construction of Sidewalks and Curbing and Assessment of Costs Thereof in Territory Exempt from Taxation; Landowners in Exempt Territory to File Petition Requesting Betterments {#sec-11-42-79 omnilex-key=us-al-statutes--title-11--11-42-79}
The council or governing body of the city shall have the right to construct or cause to be constructed sidewalks and curbing in the territory exempt from city taxation under the provisions of this article and assess the cost and expense thereof against the abutting property in the same manner and under the same laws and to the same extent as it is authorized to construct similar betterments in the territory within the corporate limits of said city which is not exempt from taxation, but before said council or governing body is authorized to construct any sidewalks or curbing in territory exempt from taxation, the owners of a majority of the frontage of and to be assessed for such sidewalks or curbing must file with the clerk of the city a written petition signed by them requesting such betterments to be made.
*(Code 1907, §1111; Code 1923, §1805; Code 1940, T. 37, §174.)*
##### **§ 11-42-80** Assessment, Collection, and Disposition of Street Tax in Territory Exempt from Taxation {#sec-11-42-80 omnilex-key=us-al-statutes--title-11--11-42-80}
The council or governing body of the city shall have the same rights and powers by and under an ordinance enacted to assess and collect a street tax from every person liable to road or street duty residing in the territory exempt from taxation that it has to assess and collect such tax from other persons residing within the corporate limits of the city, but not in territory exempt from taxation.
The money collected from persons residing in territory exempt from taxation shall be applied by the council or governing body of the city towards keeping up and maintaining the public roads or streets in the territory exempt from taxation or in opening new roads or streets in such territory.
*(Code 1907, §1112; Code 1923, §1806; Code 1940, T. 37, §175.)*
##### **§ 11-42-81** Licensing of Dance Halls, Poolrooms, Etc., in Territory Exempt from Taxation {#sec-11-42-81 omnilex-key=us-al-statutes--title-11--11-42-81}
The council or governing body of the city shall have no authority or power to license or permit any dance halls or billiard or poolrooms or business or occupation of any kindred or like kind or character to be operated or carried on at another place in the territory which is exempt from taxation under the provisions of this article so long as the same is exempt from taxation under the provisions of this article.
*(Code 1907, §1114; Code 1923, §1808; Code 1940, T. 37, §176.)*
##### **§ 11-42-82** Levy and Collection of Privilege or License Tax from Persons, Firms, Etc., Carrying on Business, Etc., in Territory Exempt from Taxation Generally {#sec-11-42-82 omnilex-key=us-al-statutes--title-11--11-42-82}
The council or governing body of the city shall have no authority or power to levy and collect a privilege or license tax on or from any person, firm, or corporation for carrying on any business, trade, or occupation in the territory exempt from city taxation under the provisions of this article, except as provided in this article.
*(Code 1907, §1118; Code 1923, §1812; Code 1940, T. 37, §180.)*
##### **§ 11-42-83** Assessment and Collection of Privilege or License Tax from Persons, Firms, Etc., Carrying on Business, Etc., in Territory Exempt from Taxation {#sec-11-42-83 omnilex-key=us-al-statutes--title-11--11-42-83}
(a) The council or governing body of the city may annually assess and collect a privilege or license tax from each and every person, firm, company, or corporation engaged in or carrying on any business, vocation, occupation, or profession in the territory exempt from city taxation under the provisions of this article so long as the same is exempt from city taxation under the provisions of this article, on the following basis: Such license tax assessed and collected from each person, firm, company, or corporation shall be in proportion to the capital employed within the territory exempt from city taxation in such trade, business, vocation, occupation, or profession, including the value of the land with improvements thereon, used in such trade, business, vocation, or occupation and shall not exceed $2.00 per $1,000.00 where the capital employed does not exceed $100,000.00, and shall not exceed $1.00 per $1,000.00 on the excess of capital employed over $100,000.00 up to $200,000.00, and shall not exceed $.50 per $1,000.00 on the excess of the capital employed over $200,000.00 up to $300,000.00, and shall not exceed $.25 per $1,000.00 on the excess of capital employed over $300,000.00; provided, however, that if no capital is employed or where the capital employed is less than $1,000.00, there shall be no privilege or license tax assessed and collected.
(b) The material or supplies to be manufactured by any such person, firm, company, or corporation and the manufactured product manufactured by any such person, firm, company, or corporation is not to be considered or counted in arriving at the capital employed in such trade, business, vocation, occupation, or profession.
(c) No person who is a day laborer or working on a salary or engaged in dairying, horticulture, poultry farming, or any other agricultural pursuit shall pay a license or privilege tax for carrying on such business, vocation, or occupation in the territory exempt from taxation under the provisions of this article.
(d) The council or governing body of the city may assess and collect for the city a license tax from each and every transient person, firm, company, or corporation which temporarily engages in any business, vocation, occupation, or profession in the territory exempt from taxation under the provisions of this article and may assess and collect a license tax from each show, circus, or other like entertainment exhibiting in the territory exempt from taxation under the provisions of this article, the amount of such tax to be fixed by the council or governing body of the city.
*(Code 1907, §1116; Code 1923, §1810; Code 1940, T. 37, §178.)*
##### **§ 11-42-84** Assessment and Collection of Privilege or License Tax from Operators of Common Carriers, Street Railroads, Etc., in Territory Exempt from Taxation {#sec-11-42-84 omnilex-key=us-al-statutes--title-11--11-42-84}
(a) The council or governing body of the city may annually assess and collect for and in behalf of the city a privilege or license tax from the operator of each and every common carrier, street railroad, waterworks, telephone and telegraph lines, or other quasi-public business which is operated or carried on in whole or in part in the territory exempt from city taxation so long as the same is exempt from city taxation under the provisions of this article on the following basis: The amount of such license tax shall be in proportion to the capital employed within the territory exempt from city taxation in such trade, business, or vocation and shall not exceed $2.00 per $1,000.00 where the capital employed does not exceed $100,000.00, and shall not exceed $1.00 per $1,000.00 on the excess of capital employed over $100,000.00 up to $200,000.00, and shall not exceed $.50 per $1,000.00 on the excess of capital employed over $200,000.00 up to $300,000.00, and shall not exceed $.25 per $1,000.00 on the excess of capital employed over $300,000.00.
(b) The rolling stock of a common carrier or street railroad is not to be considered or counted in arriving at the capital employed in such trade, business, or vocation.
*(Code 1907, §1117; Code 1923, §1811; Code 1940, T. 37, §179.)*
##### **§ 11-42-85** Right of Children Residing in Territory Exempt from Taxation to Attend Public Schools of City {#sec-11-42-85 omnilex-key=us-al-statutes--title-11--11-42-85}
The public schools of the city, to the extent that the same are supported and maintained by revenue derived from all sources, except appropriations made from the city treasury derived from city taxes or other source of city revenue, shall be open to children residing in the territory exempt from taxation under the provisions of this article the same as the schools are open to the children residing within the corporate limits of the city other than the territory exempt from taxation.
As to that portion of any term of the public schools in the city supported and maintained by appropriations made from the city treasury derived from city taxes or other source of city revenue, children residing in the territory which is exempt from taxation under the provisions of this article shall have the right to attend on the payment for the use of the city of a per capita tuition fixed (if any) by the school board or other governing body having control of the schools on a basis of what is equitable and just, taking into consideration the cost and expense of supporting and maintaining such schools for such portion of any term as is supported and maintained by and from city revenue.
*(Code 1907, §1119; Code 1923, §1813; Code 1940, T. 37, §181.)*
##### **§ 11-42-86** Acquisition of Rights and Privileges of Resident Citizens by Persons Residing in Territory Exempt from Taxation {#sec-11-42-86 omnilex-key=us-al-statutes--title-11--11-42-86}
When and as often as the owner or owners of any land situated in territory exempt from taxation under the provisions of this article shall desire to exercise all of the rights and privileges conferred upon resident citizens not residing in territory exempt from taxation, they may apply to the council or governing body of the city by petition in writing to have such land assessed for city taxation, attaching to such petition a map of such land showing the location of the same. If the council or governing body assent to such petition, a resolution shall be passed by such council or governing body to that effect, and the mayor of such city shall endorse on such map or plat a certificate certifying that the petition was filed for the land shown on the map to be taxed by the city and that the council or governing body assent to the taxing of such land, which map so certified must be filed and recorded in the probate office of the county wherein the land is situated and thereafter such land and property having a situs thereon shall be subject to taxation by the city and taxes thereon shall be paid to the city and all persons residing in such territory shall thereafter have and exercise the same rights and privileges as other citizens residing in the city other than in territory exempt from taxation.
*(Code 1907, §1120; Code 1923, §1814; Code 1940, T. 37, §182.)*
##### **§ 11-42-87** Fees and Compensation of Probate Judge and Other Officers for Services Rendered {#sec-11-42-87 omnilex-key=us-al-statutes--title-11--11-42-87}
The probate judge shall be entitled to the same fees for services performed under the provisions of this article as he is authorized by law to charge and collect for similar services rendered by him, and all other officers shall be entitled to the same compensation for services rendered by them as they are authorized by law to charge and collect for similar services rendered by them and the city at whose instance the service is performed under the provisions of this article shall pay all costs and expenses thereof, except in case of a contest as provided in this article.
*(Code 1907, §1121; Code 1923, §1815; Code 1940, T. 37, §183.)*
##### **§ 11-42-88** Provisions of Article Deemed Contract Between City and Persons, Etc., in Territory Exempt from Taxation; Conferral of Other Rights and Powers as to Exempt Territory Upon City; Right of Persons Residing in Exempt Territory to Enforce Article Against City {#sec-11-42-88 omnilex-key=us-al-statutes--title-11--11-42-88}
(a) The provisions of this article shall be held to be a contract by and between the city and persons or corporations owning property in the territory exempt from taxation under the provisions of this article and no amendment hereof or subsequent law shall confer upon the city other or different rights and powers as to such territory as is exempt from taxation so long as such territory remains exempt from taxation under the provisions of this article.
(b) Any person residing in or owning property in the territory exempt from taxation under the provisions of this article shall have the right in any court having jurisdiction to prevent the city from exercising any other or different powers in the territory exempt from taxation or any part thereof than the powers authorized under the provisions of this article.
*(Code 1907, §1122; Code 1923, §1816; Code 1940, T. 37, §1984.)*
#### **Article 4** Consolidation of Contiguous Municipalities
#### **Division 1** General Provisions
##### **§ 11-42-100.1** Mode of Consolidation - When Municipality to Annex City or Town {#sec-11-42-100.1 omnilex-key=us-al-statutes--title-11--11-42-100.1}
(a) When two or more municipalities lying contiguous to each other desire to consolidate and operate as one municipality, they may do so by proceeding in the manner hereafter provided in this section.
(b) If it is the purpose to annex a city or town to another municipality, then the governing body of each city or town shall adopt an ordinance expressing a willingness to such annexation. After both ordinances are passed and published as provided for by law, the governing body of the municipality to be annexed shall, by resolution submit the question of annexation at a special election to be held at a time specified in such resolution, not less than 40 days nor more than 90 days after passage of the last adopted willingness ordinance or at a time otherwise specified by law. No other proposition may be on the ballot. Said election shall be held pursuant to the general municipal election laws.
(c) In absence of a willingness ordinance by the city or town to be annexed, the filing of a petition signed by 10 percent or more of the number of qualified voters who voted in the last general municipal election held in such municipality immediately preceding the presentation of said petition, asking that the question of annexation into another contiguous city or town be submitted to the qualified voters thereof, with the judge of probate of the county (or counties) in which such municipality is located, shall mandatorily require an election to be held as herein provided. Whenever such a petition shall be presented to such probate judge, he shall examine said petition to determine the genuineness of the signatures thereon, the correctness and adequacy of the information given by each person signing the petition and the qualification of electors signing such petition. If the probate judge determines that the petition meets statutory requirements, he shall certify such fact to the chief executive officer of the municipality for which such election is so petitioned and such certificate shall be attached to the petition. The certificate of the judge of probate as to the sufficiency of said petition shall be final. After passage of a willingness ordinance by the annexing city and upon receipt of petition certification from the judge of probate, the governing body of the municipality to be annexed shall by resolution submit the question of annexation at a special election to be held at a time specified in such proclamation, not less than 40 days nor more than 90 days after passage of the willingness ordinance, or after receipt of the petition certification, whichever event occurs last, or at a time otherwise specified by law. No other proposition may be on the ballot. This election shall be conducted pursuant to the general municipal election laws.
(d) If at the election on consolidation of two contiguous municipalities, a majority of the voters cast votes in favor of the annexation, and the number so voting in favor of the annexation equals or is greater than one-half of the number of voters who voted in the last general municipal election held in such city or town, then, upon the expiration of 45 days after a canvass of the returns, the territory within the corporate limits of such city or town shall become a part of the annexing municipality and may be divided into wards or districts or annexed to wards or districts already established.
(e) If the annexation is not adopted at the election so called, the question of annexation under this section shall not be resubmitted to the voters of such municipality for adoption within two years thereafter, at which time the question of annexation may be reconsidered in the manner above provided.
*(Acts 1987, No. 87-795, p. 1567, §§1-5.)*
##### **§ 11-42-101** Mode of Consolidation - When Municipalities to Form New Corporate Organization {#sec-11-42-101 omnilex-key=us-al-statutes--title-11--11-42-101}
If municipalities desiring to consolidate wish to form a new and distinct corporate organization to be operated under the name of either one of such municipalities or a different name, the several councils, upon the filing with the mayor or chief executive officer or chief executive authority of each of such municipalities of a petition signed by not less than one fourth of the number of the qualified electors residing in each of such municipalities setting forth that they desire the consolidation of such municipalities, shall each pass an ordinance expressing the purpose thenceforth to operate as one municipal corporation under the name therein mentioned and call an election to be held simultaneously in the several municipalities on a day designated by said ordinances, not less than 30 days after the passage thereof.
Such election shall be conducted in the same manner as general municipal elections and by officers selected by the several councils. The voting places shall be designated by the councils and an official ballot shall be furnished with the words “for consolidation” and “against consolidation” written or printed thereon. Said election shall be held under the same sanctions and penalties as general elections, and the returns shall be made to the councils by the proper officers. The several councils shall canvass such returns and announce the results in their respective municipalities.
If a majority of the qualified electors voting in each municipality vote for consolidation, then such municipalities shall be one municipal corporation and shall operate as one municipal government.
*(Code 1907, §1128; Acts 1911, No. 408, p. 578; Code 1923, §1822; Code 1940, T. 37, §190.)*
##### **§ 11-42-102** Exemption from Taxation of Industrial or Manufacturing Plants {#sec-11-42-102 omnilex-key=us-al-statutes--title-11--11-42-102}
The council of any city or town that alters and rearranges its boundary lines so as to absorb two or more cities or towns may exempt from taxation for a period not exceeding five years any industrial or manufacturing plant situated in the territory added to said city or town, but said terms of exemption shall not be renewed or extended.
The council of any city or town may also exempt from taxation for a period not to exceed 10 years any industrial or manufacturing plant that may be established in said city or town; provided, that said term of exemption shall not be renewed.
*(Code 1907, §1127; Code 1923, §1821; Code 1940, T. 37, §189.)*
##### **§ 11-42-103** Division of Consolidated Municipality into Wards by Commission; Election of Mayor and Other Officers {#sec-11-42-103 omnilex-key=us-al-statutes--title-11--11-42-103}
(a) The mayor and one councilman from each municipality to be selected by the council shall be constituted a commission to divide such consolidated municipality into wards, and if they are unable to agree, they shall call in another person who shall cast a deciding vote, and such consolidated city or town shall be divided into wards as the commission or a majority of them may direct.
(b) At a day not more than 30 days after said commission has divided such city or town into wards, an election, conforming to the general municipal election law, shall be held and conducted by officers selected by such commission, at which election a mayor and the proper officers for a municipality of such size shall be elected. Officers conducting such election shall forthwith count the votes and make return to the commission, who shall declare the results of such election, and those receiving the highest number of votes shall be the officers of said consolidated city or town until the next general election and until their successors are elected and qualified.
*(Code 1907, §1129; Code 1923, §1823; Code 1940, T. 37, §191.)*
##### **§ 11-42-104** Oath and Compensation of Commissioners; Expenses of Election; Failure of Commissioner to Act {#sec-11-42-104 omnilex-key=us-al-statutes--title-11--11-42-104}
Before entering upon the discharge of their duties, the commissioners shall take an oath before some officer authorized by law to administer oaths to faithfully and impartially discharge their duties as such commissioners. They shall be paid for their services such amount as may be allowed by the several councils by ordinance, and the expense of such election shall be paid forthwith by the consolidated city or town. If any commissioner fails or refuses without sufficient excuse to act upon said commission, he shall be guilty of a misdemeanor and, upon conviction therefor in a court having jurisdiction, shall be fined not less than $100.00 nor more than $500.00. If for any reason a member of the commission shall not act, the other commissioners shall have the right to declare his office vacant and fill the vacancy by the appointment of some suitable person.
*(Code 1907, §1130; Code 1923, §1824; Code 1940, T. 37, §192.)*
##### **§ 11-42-105** Continuation of Officers and Corporate Organization of Municipalities; Qualification and Assumption of Duties of Officers Elected for Consolidated Municipalities {#sec-11-42-105 omnilex-key=us-al-statutes--title-11--11-42-105}
The officers of the several municipalities shall continue in office, and the corporate organization of the several municipalities shall continue unaffected until the officers of the consolidated town or city are elected and qualified as provided for in the applicable provisions of this title or any other applicable provisions of law, and such officers so elected shall immediately qualify and assume the duties of their office.
*(Code 1907, §1131; Code 1923, §1825; Code 1940, T. 37, §193.)*
##### **§ 11-42-106** Powers, Duties, Rights, Etc., of Consolidated Municipalities; Continuation of Civil Actions as to Consolidated Municipalities {#sec-11-42-106 omnilex-key=us-al-statutes--title-11--11-42-106}
(a) The consolidated city or town shall succeed to all the powers, obligations, duties, rights of action, property, and rights of property that belonged to or appertained to the municipalities consolidated and shall have all the rights, powers, and privileges delegated to municipalities under the applicable provisions of this title and shall be subject to all the duties, liabilities, or obligations of such municipalities.
(b) All civil actions pending in favor of or against either of the municipalities shall continue to judgment unaffected by the consolidation and may be enforced in favor of or against such consolidated city or town as if commenced by or against such consolidated city or town.
*(Code 1907, §1132; Code 1923, §1826; Code 1940, T. 37, §194.)*
#### **Division 2** Alternate Mode
##### **§ 11-42-120** Mode of Consolidation Generally {#sec-11-42-120 omnilex-key=us-al-statutes--title-11--11-42-120}
Any city or town may be annexed to and merged into a contiguous city or town in the following manner: The mayor of each city or town shall each appoint two persons, and the four persons thus appointed, with the mayor of each town, shall constitute a commission to agree upon terms for the annexation and merger of the one city or town into the other city or town.
*(Code 1907, §1133; Code 1923, §1828; Code 1940, T. 37, §195.)*
##### **§ 11-42-121** Appointment of Commissioners {#sec-11-42-121 omnilex-key=us-al-statutes--title-11--11-42-121}
The mayor or other head of the governing body of any city or town shall appoint the commissioners provided for in Section 11-42-120 upon the adoption of a resolution by the governing body calling for such appointment or upon the presentation of a petition to the governing body signed by one third of the qualified electors residing within such city or town.
*(Code 1907, §1134; Code 1923, §1829; Code 1940, T. 37, §196.)*
##### **§ 11-42-122** Execution, Approval, and Confirmation of Agreement as to Terms of Annexation and Merger {#sec-11-42-122 omnilex-key=us-al-statutes--title-11--11-42-122}
If the commission agrees upon terms of annexation and merger, such agreement shall be reduced to writing and signed in triplicate by the commissioners or a majority thereof, and one of the triplicates of the agreement shall be presented to the council or governing body of each city or town, and if the council or other governing body of each city or town approves of the agreement reached by the commission, the council or governing body of each city or town shall pass a resolution confirming such agreement, which resolution shall be spread upon the minutes of the proceedings of such council or governing body, and the mayor of each city or town shall notify the mayor of the other city or town of the confirmation of the agreement by the council or governing body of the city or town of which he is mayor.
*(Code 1907, §1135; Code 1923, §1830; Code 1940, T. 37, §197.)*
##### **§ 11-42-123** Ordering of Election by Proclamation {#sec-11-42-123 omnilex-key=us-al-statutes--title-11--11-42-123}
If the council or governing body of each city or town confirms the agreement, then the mayor of the city or town proposed to be annexed to the other city or town shall, by proclamation, order an election to be held on a day fixed in the proclamation in his city or town, submitting to a vote of the qualified electors in his city or town the following proposition: “Shall the agreement for the annexation of (naming the city or town) to (naming the city or town) be ratified?” and stating in such proclamation that one of the triplicates of the agreement made which is submitted for ratification is on file in the office of the clerk of such city or town, open to the inspection of the public.
*(Code 1907, §1136; Code 1923, §1831; Code 1940, T. 37, §198.)*
##### **§ 11-42-124** Inspectors {#sec-11-42-124 omnilex-key=us-al-statutes--title-11--11-42-124}
Inspectors of election in the city or town proposed to be annexed shall be appointed and the election in all particulars held in the same manner as elections are held in such city or town for the election of municipal officers, except as changed by the provisions of this division.
*(Code 1907, §1137; Code 1923, §1832; Code 1940, T. 37, §199.)*
##### **§ 11-42-125** Form and Marking of Ballots; Ascertainment of Election Results; Contests of Election {#sec-11-42-125 omnilex-key=us-al-statutes--title-11--11-42-125}
(a) The mayor of the city or town shall cause the ballots to be used in such election to be printed with the following words thereon: “Shall the agreement for the annexation of (naming the city or town) to (naming the city or town) be ratified?” and printed on the ballot with the above quoted words immediately thereunder the words “Yes” and “No,” and the elector shall designate his choice by marking with ink or pencil a cross mark (X) in a place to be left before the word expressing his wish. The ballots provided under the terms of this division need not be of any particular size, form, or color.
(b) The result of the election shall be ascertained in the same manner that the result of the election of city or town officers is ascertained, and the election may be contested in the same manner as is provided for the contest of the election of any city or town officers.
*(Code 1907, §1138; Code 1923, §1833; Code 1940, T. 37, §200.)*
##### **§ 11-42-126** Declaration of Election Result; Declaration of Annexation of Municipality {#sec-11-42-126 omnilex-key=us-al-statutes--title-11--11-42-126}
If a majority of the votes cast in such city or town is in favor of ratifying the agreement of annexation and merger, the result shall be so declared, and the mayor of each city or town shall by joint proclamation, published in some newspaper published in the city or town or in the county, if no newspaper is published in the city or town, declare the annexation of the one city or town to the other city or town under the agreement of annexation and merger.
*(Code 1907, §1139; Code 1923, §1834; Code 1940, T. 37, §201.)*
##### **§ 11-42-127** Filing and Recordation of Copy of Agreement and Merger {#sec-11-42-127 omnilex-key=us-al-statutes--title-11--11-42-127}
The mayor of the city or town to which another city or town is annexed under the provisions of this division shall, within 10 days from the day of the issuing of the joint proclamation of annexation and merger of the one city or town into the other city or town, file with the Secretary of State one of the triplicates of the agreement of annexation and merger, which must be kept on file in the office of the Secretary of State, and must also, within said time, file one of the triplicates of the agreement of annexation and merger in the office of the judge of probate of the county in which such city or town is situated, and the same must be recorded by the judge of probate in a record of deeds or mortgages kept in his office.
*(Code 1907, §1140; Code 1923, §1835; Code 1940, T. 37, §202.)*
##### **§ 11-42-128** When Annexation Deemed Perfected {#sec-11-42-128 omnilex-key=us-al-statutes--title-11--11-42-128}
From the time the said triplicate of the agreement is filed in the office of the judge of probate, as required in Section 11-42-127, the proclamations having been made and published as required by Section 11-42-126, the one city or town shall be and shall be held to be annexed to and merged into the other city or town under the terms and provisions as set forth in the agreement of annexation and merger.
*(Code 1907, §1141; Code 1923, §1836; Code 1940, T. 37, §203.)*
##### **§ 11-42-129** Costs and Expenses of Annexation {#sec-11-42-129 omnilex-key=us-al-statutes--title-11--11-42-129}
The costs and expenses incurred by each city or town previous to holding the election by the city or town proposed to be annexed to the other city or town shall be paid respectively by each city or town, and all other costs and expenses incurred shall be paid by the city or town to which the other city or town is annexed.
*(Code 1907, §1142; Code 1923, §1837; Code 1940, T. 37, §204.)*
##### **§ 11-42-130** Ownership of Property of Municipality Annexed {#sec-11-42-130 omnilex-key=us-al-statutes--title-11--11-42-130}
All property and rights of property and assets and interests of every kind and character owned by the city or town annexed to the other city or town shall vest in and become the property and assets of the city or town to which it is annexed.
*(Code 1907, §1143; Code 1923, §1838; Code 1940, T. 37, §205.)*
##### **§ 11-42-131** Continuation of Civil Actions Against Municipality Annexed {#sec-11-42-131 omnilex-key=us-al-statutes--title-11--11-42-131}
All civil actions pending against the city or town annexed shall, on notice, be made a civil action against the city or town annexing the other city or town, and the right to prosecute to final judgment such civil action or actions against the annexing city or town shall exist the same as if the right of action originally existed against the annexing city or town.
*(Code 1907, §1144; Code 1923, §1839; Code 1940, T. 37, §206.)*
##### **§ 11-42-132** Provisions in Annexation Agreement as to Taxation in Municipality Annexed {#sec-11-42-132 omnilex-key=us-al-statutes--title-11--11-42-132}
The agreement of annexation may provide for specific property having a situs thereon embraced in the annexed city or town to be exempt from city or town taxation or the payment of taxes to the annexing city or town for a period not exceeding 10 years and may provide a maximum license tax to be annually assessed and collected by the annexing city or town from each and every person, firm, company, or corporation engaging in or carrying on any business, vocation, occupation, or profession in the territory exempt from taxation.
*(Code 1907, §1153; Code 1923, §1848; Code 1940, T. 37, §215.)*
##### **§ 11-42-133** Creation, Etc., of Wards; Election of Aldermen; Division of Wards into Voting Precincts; Rearrangement, Etc., of Boundaries of Wards or Voting Precincts {#sec-11-42-133 omnilex-key=us-al-statutes--title-11--11-42-133}
(a) The council or governing body of the annexing city or town shall create new wards (as many as may be deemed to be necessary) regardless of any limitation in the charter of the annexing city or town on the number of wards, or enlarge wards so as to embrace all territory embraced in the annexed city or town and so as to afford opportunity to all persons in the territory embraced in the annexed city or town to vote in all elections and participate in the government of the annexing city or town, and each ward in the annexing city or town shall have the same number of aldermen, but in no event shall there be more than 30 aldermen or representatives in the council or governing body of the city or town.
(b) The council or governing body of the city or town shall elect aldermen for the wards, embracing all the territory of the annexed city or town, as in case of a vacancy, the aldermen so elected to hold office until the next regular election of the annexing city or town. At such elections and thereafter aldermen for such wards shall be elected as other aldermen are elected in the city or town, and if the agreement of annexation names the aldermen to be elected to fill the office of aldermen until the next ensuing election, the parties named shall be elected aldermen by the council or governing body of the annexing city or town.
(c) The council or governing body of the annexing city or town shall, by ordinance or resolution, create new wards or change the lines of wards, as often as may be necessary, covering the territory embraced in the annexed city or town for the purpose of making equal as near as practicable the voting population in each ward in the annexing city or town, and the council or governing body of the annexing city or town shall divide the respective wards in the city or town into voting precincts, as many as may be necessary, and each elector shall vote in the precinct of his residence, and the boundary of such voting precincts shall be arranged and rearranged from time to time so that, as near as practicable, not more than 300 electors reside in any voting precinct, except where voting machines are used.
*(Code 1907, §1154; Code 1923, §1849; Code 1940, T. 37, §216.)*
##### **§ 11-42-134** Provisions of Division Not Exclusive {#sec-11-42-134 omnilex-key=us-al-statutes--title-11--11-42-134}
The provisions of this division shall in no wise preclude any city or town from being annexed and merged into another city or town in any way that may be provided by law.
*(Code 1907, §1155; Code 1923, §1850; Code 1940, T. 37, §217.)*
#### **Article 5** Consolidation of Noncontiguous Municipalities
##### **§ 11-42-150** Applicability of Provisions of Article {#sec-11-42-150 omnilex-key=us-al-statutes--title-11--11-42-150}
Two cities or towns whose boundaries touch may consolidate and merge themselves with a third city or town not contiguous to either, but whose boundary line is within one mile or less of the boundary line of either of the other two cities or towns, in the manner set out in this article.
*(Acts 1919, No. 423, p. 547; Code 1923, §1859; Code 1940, T. 37, §218.)*
##### **§ 11-42-151** Councils to Define Boundaries of Territory to Be Incorporated in Consolidated Municipality Upon Receipt of Petition Requesting Election as to Consolidation {#sec-11-42-151 omnilex-key=us-al-statutes--title-11--11-42-151}
When 10 percent in numbers of the qualified voters according to the last municipal election of each of the municipalities to be consolidated shall sign a petition addressed to their respective municipal councils, requesting that an election be held to determine whether the three municipalities be consolidated, said councils of the municipalities between which outside territory to be incorporated in the consolidated municipality lies shall define the boundaries of such territory.
*(Acts 1919, No. 423, p. 547; Code 1923, §1860; Code 1940, T. 37, §219.)*
##### **§ 11-42-152** Calling of Election; Conduct of Election Generally; Notice of Election {#sec-11-42-152 omnilex-key=us-al-statutes--title-11--11-42-152}
(a) The governing bodies shall within 10 days thereafter call an election at which the qualified electors residing in the municipalities may vote at their usual voting places for or against consolidation, and the voters residing in the territory outside the limits of either of the municipalities shall also be permitted to vote at the voting place in either municipality nearest to their place of residence.
(b) The governing bodies of each municipality shall name the election officers in their respective municipalities, and said election shall be governed, the returns canvassed and the results declared as provided by law for other municipal elections.
(c) Such election shall be held in each of such municipalities on the same day and must be advertised in each of the newspapers published in the county in which such municipalities are situated once a week for four successive weeks, and said advertisement shall state the purpose for which such election is called, the time of holding the same, and the territory outside of either municipality which is proposed to be incorporated into the consolidated municipality.
*(Acts 1919, No. 423, p. 547; Code 1923, §1861; Code 1940, T. 37, §220.)*
##### **§ 11-42-153** Form and Marking of Ballots {#sec-11-42-153 omnilex-key=us-al-statutes--title-11--11-42-153}
(a) At the election provided for in this article the municipal authorities shall furnish ballots on which shall be printed:
“Election to provide for the consolidation of _______
(Naming the cities or towns to be consolidated). For Consolidation _____
Against Consolidation _____ ”
(b) The voter shall express his choice by making a cross mark (X) opposite the phrase expressing his choice.
*(Acts 1919, No. 423, p. 547; Code 1923, §1863; Code 1940, T. 37, §222.)*
##### **§ 11-42-154** Forwarding of Statement of Vote to Probate Judge and Canvassing of Returns; Ascertainment and Publication of Election Results {#sec-11-42-154 omnilex-key=us-al-statutes--title-11--11-42-154}
Within five days after such election the mayor or other chief executive officer shall forward to the probate judge of the county in which such municipalities are located a statement in writing, showing the number of votes cast for and against the proposed consolidation, and the probate judge shall canvass the returns made to him and ascertain the number of votes cast for and against consolidation and publish the same by posting written notice at the courthouse door of the county.
*(Acts 1919, No. 423, p. 547; Code 1923, §1862; Code 1940, T. 37, §221.)*
##### **§ 11-42-155** Rights, Powers, Duties, and Name of Consolidated Municipality; Disposition of Property, Obligations, and Contracts of Consolidating Municipalities {#sec-11-42-155 omnilex-key=us-al-statutes--title-11--11-42-155}
(a) If the majority of the votes cast in each municipality separately are in favor of consolidation, the three municipalities and other territory included shall be consolidated into one municipality which shall have all the rights, powers, and duties conferred by any law, general or special, of the largest in population of the consolidating municipalities and until otherwise changed shall bear its name.
(b) The municipal property of each of the consolidating municipalities shall vest in the consolidated municipality, and all outstanding obligations and contracts of whatever kind shall be assumed by the consolidated municipality.
*(Acts 1919, No. 423, p. 547; Code 1923, §1864; Code 1940, T. 37, §223.)*
##### **§ 11-42-156** Continuation in Office and Powers and Duties of Mayors and Aldermen of Consolidating Municipalities {#sec-11-42-156 omnilex-key=us-al-statutes--title-11--11-42-156}
The aldermen in office in each of the consolidating municipalities shall constitute the board of aldermen of the consolidated municipality until the next general municipal election after the consolidation. The mayor or chief executive of the largest in population shall be the mayor or chief executive of the consolidated municipality until the next general municipal election after the consolidation. The mayor or chief executive of the other municipalities shall continue in office until the next general municipal election after the consolidation, but they shall have only such powers and perform such duties as may be prescribed by the council of the consolidated municipality.
*(Acts 1919, No. 423, p. 547; Code 1923, §1865; Code 1940, T. 37, §224.)*
##### **§ 11-42-157** Division of Consolidated Municipality into Wards; Election of Officers of Consolidated Municipality {#sec-11-42-157 omnilex-key=us-al-statutes--title-11--11-42-157}
The council of the consolidated municipality shall before the next general municipal election divide the consolidated municipality into a suitable and convenient number of wards, and at the next municipal election thereafter there shall be elected in the consolidated municipality the officers provided by general law for the government of towns and cities.
*(Acts 1919, No. 423, p. 547; Code 1923, §1866; Code 1940, T. 37, §225.)*
##### **§ 11-42-158** Collection and Disbursement of Taxes {#sec-11-42-158 omnilex-key=us-al-statutes--title-11--11-42-158}
The consolidated municipality shall collect all taxes or other obligations due the consolidating municipalities and disburse the same.
*(Acts 1919, No. 423, p. 547; Code 1923, §1867; Code 1940, T. 37, §226.)*
##### **§ 11-42-159** Continuation in Office of Boards of Education of Consolidating Municipalities; Election of Board of Education for Consolidated Municipality {#sec-11-42-159 omnilex-key=us-al-statutes--title-11--11-42-159}
The boards of education in the consolidating municipalities shall continue in office and in charge of their respective schools until the next general election after the consolidation, and after such election the council of the consolidated municipality shall elect a board of education as provided by law.
*(Acts 1919, No. 423, p. 547; Code 1923, §1868; Code 1940, T. 37, §227.)*
##### **§ 11-42-160** Continuation of Rights of Action Against Municipality Annexed {#sec-11-42-160 omnilex-key=us-al-statutes--title-11--11-42-160}
All rights of action existing against the city or town annexed shall be a right of action against the city or town annexing the other city or town, and a civil action may be brought against the annexing city or town the same as if the right of action originally existed against the annexing city or town.
*(Code 1907, §1145; Code 1923, §1840; Code 1940, T. 37, §207.)*
##### **§ 11-42-161** Continuation of Civil Actions Brought by Municipality Annexed {#sec-11-42-161 omnilex-key=us-al-statutes--title-11--11-42-161}
All civil actions pending brought by the city or town annexed, shall, on motion, be made a civil action by the city or town annexing the other city or town, and the right to prosecute such civil action to final judgment by the annexing city or town shall exist the same as if the right of action originally existed in favor of the annexing city or town.
*(Code 1907, §1146; Code 1923, §1841; Code 1940, T. 37, §208.)*
##### **§ 11-42-162** Continuation of Rights of Action of Municipality Annexed {#sec-11-42-162 omnilex-key=us-al-statutes--title-11--11-42-162}
All rights of action existing in favor of the city or town annexed shall be a right of action existing in favor of the city or town annexing the other city or town, and it may bring a civil action the same as if such right of action originally existed in favor of the annexing city or town.
*(Code 1907, §1147; Code 1923, §1842; Code 1940, T. 37, §209.)*
##### **§ 11-42-163** Payment or Assumption of Indebtedness and Liabilities of Municipality Annexed {#sec-11-42-163 omnilex-key=us-al-statutes--title-11--11-42-163}
All indebtedness and liabilities of every kind and character of the city or town annexed shall be paid or payment thereof assumed by the annexing city or town. As between the city or town annexed and the annexing city or town, the agreement of annexation and the terms thereof shall be binding as regards the payment or assumption of such indebtedness, but as to creditors, the payment or the assumption of payment by the annexing city or town shall be absolute and unconditional.
*(Code 1907, §1148; Code 1923, §1843; Code 1940, T. 37, §210.)*
##### **§ 11-42-164** Annexation Agreement Deemed Contract Between Municipalities; Right of Persons Residing in Annexed Municipality to Enforce Agreement Against Annexing Municipality {#sec-11-42-164 omnilex-key=us-al-statutes--title-11--11-42-164}
The agreement of annexation shall be and shall be held to be a contract by and between the city or town annexed and the city or town to which annexation is made, and no amendment of this article or subsequent law enacted shall in anywise abrogate or change the terms of the agreement of annexation, and any person residing in or owning property in the territory which was embraced within the city or town annexed shall have the right in a court having jurisdiction to require the annexing city or town to abide by and carry out the provisions of the agreement of annexation.
*(Code 1907, §1149; Code 1923, §1844; Code 1940, T. 37, §211.)*
##### **§ 11-42-165** Enactment and Passage of Ordinances and Resolutions to Carry Out Annexation Agreement {#sec-11-42-165 omnilex-key=us-al-statutes--title-11--11-42-165}
The council or governing body of the annexing city or town shall enact such ordinances and pass such resolutions as may be necessary or deemed necessary to carry out the agreement of annexation, and any ordinance or resolution enacted or passed by the council or governing body of the annexed city or town in violation of the terms and provisions of the agreement of annexation shall be held to be void.
*(Code 1907, §1150; Code 1923, §1845; Code 1940, T. 37, §212.)*
##### **§ 11-42-166** Dissolution of Annexed Municipality; Ordinances, Resolutions, and Bylaws of Annexing Municipality Applicable to and Enforceable in Municipality Annexed {#sec-11-42-166 omnilex-key=us-al-statutes--title-11--11-42-166}
The annexed city or town from and after the time of annexation, under the terms of this article, shall be and shall be held to be dissolved, and from and after the time of such dissolution all of the ordinances, resolutions, and bylaws of the annexing city or town shall apply to and be enforceable in the territory which was embraced in the annexed city or town, except insofar as is inconsistent with the terms and provisions of the agreement of annexation.
*(Code 1907, §1151; Code 1923, §1846; Code 1940, T. 37, §213.)*
##### **§ 11-42-167** Rights, Powers, Duties, Etc., of Annexing Municipality as to Municipality Annexed Attach Upon Dissolution of Same {#sec-11-42-167 omnilex-key=us-al-statutes--title-11--11-42-167}
The rights, powers, duties, liabilities, and jurisdiction of the annexing city or town over the territory embraced in the corporate limits of the city or town annexed and over the inhabitants thereof shall attach immediately upon the dissolution of the annexed city or town as provided in Section 11-42-166, except insofar as limited by the terms and provisions of the agreement of annexation.
*(Code 1907, §1152; Code 1923, §1847; Code 1940, T. 37, §214.)*
#### **Article 6** Duties of Expanded Municipalities as to Property and Obligations of Absorbed Municipalities
##### **§ 11-42-180** Payment, Execution, Etc., of Debts, Bonds, Contracts for Local Improvements, Etc., of Absorbed Municipalities {#sec-11-42-180 omnilex-key=us-al-statutes--title-11--11-42-180}
When any municipal corporation has been absorbed or its government extinguished by the alteration or rearrangement of the boundary lines of another city or town, the city or town whose boundary lines have been altered and rearranged shall assume and pay all and any debts, liabilities, and bonds of every kind and character and the interest thereon when the same becomes due which may have been lawfully contracted or issued by the city or town so absorbed or whose government has been extinguished, and the city or town whose boundary lines have been altered and rearranged, thereby absorbing and extinguishing the government of another municipality, shall assume, carry on, and complete all contracts for local improvements which may have been entered into by the city or town so absorbed or whose government has been so extinguished, and the said city or town whose boundary lines have been so altered or rearranged shall have all the powers with reference to the making of assessment for local improvements and the collection thereof as if such local improvements had been originally instituted by it, and such last described city or town may grant to property owners the same privileges of paying local assessments in installments as they would be entitled to if their municipal organization had not changed and, for the purpose of carrying into effect this privilege, the city or town whose boundary lines have been so altered or rearranged shall issue its bonds in the place and stead of the bonds which would have been issued by the city or town whose government has been extinguished to the end that all contracts for local improvements and the sale of bonds to carry on the same shall be faithfully observed and executed.
*(Code 1907, §1156; Acts 1909, No. 160, p. 234; Code 1923, §§1827, 1870; Code 1940, T. 37, §229.)*
##### **§ 11-42-181** Disposition of Property of Absorbed Municipalities {#sec-11-42-181 omnilex-key=us-al-statutes--title-11--11-42-181}
The city or town so altering or rearranging its boundary lines shall become vested with the title and ownership of all property, both real and personal, including taxes, moneys, school buildings and grounds, parks, fixtures and furniture of school buildings, city or town halls, equipment and apparatus of fire departments, city or town jails, water, gas or electric systems, including all mains or pipes used for conducting the water or gas or electric lines, wires, poles, conduits and all apparatus connected with any waterworks, gas or electric light systems belonging to the city or town so absorbed or whose government has been extinguished, subject to the same conditions and to be held for the same uses and purposes as before.
*(Code 1907, §1157; Code 1923, §1871; Code 1940, T. 37, §230.)*
##### **§ 11-42-182** Collection and Disposition of Taxes, Special Assessments, Etc., of Absorbed Municipalities {#sec-11-42-182 omnilex-key=us-al-statutes--title-11--11-42-182}
The city or town so altering or rearranging its boundary lines, shall not stay, arrest, or interfere with any proceedings for the collection or enforcement of any tax, special assessment, or special tax, and the same shall proceed and be carried to a finality by the proper officers of the city or town whose boundary lines shall be so altered or rearranged, and the proceeds thereof shall be paid over to the treasurer of such city or town so altering or rearranging its boundary lines to be used for the purpose for which the tax was levied or the proceedings instituted.
*(Code 1907, §1158; Code 1923, §1872; Code 1940, T. 37, §231.)*
##### **§ 11-42-183** Prosecution and Defense of Pending Actions of Absorbed Municipalities; Collection and Enforcement of Fines, Recoveries, Judgments, Etc {#sec-11-42-183 omnilex-key=us-al-statutes--title-11--11-42-183}
All civil actions pending in any court on behalf of any city or town so absorbed or whose government is extinguished may be prosecuted or defended in the name of the city or town whose boundary lines shall be so altered or rearranged, and all judgments, fines, orders, or recoveries obtained for or on behalf of any city or town so absorbed or whose government has been extinguished may be collected and enforced with like force and effect as though such absorption had not taken place in the name of the city or town whose boundary lines have been so altered or rearranged.
*(Code 1907, §1159; Code 1923, §1873; Code 1940, T. 37, §232.)*
##### **§ 11-42-184** Disposition of Public Books, Papers, and Documents of Absorbed Municipalities {#sec-11-42-184 omnilex-key=us-al-statutes--title-11--11-42-184}
All the public books, papers, and documents of said city or town so absorbed on file in any office or with any public officer thereof shall be transferred to and filed with the appropriate officer or department of the city or town whose boundary lines have been altered or rearranged as the council or other governing body thereof may direct. It shall be the duty of all persons having charge of such books, papers, and documents to deliver the same to and file the same with the appropriate officer or department.
*(Code 1907, §1160; Code 1923, §1874; Code 1940, T. 37, §233.)*
##### **§ 11-42-185** Operation, Etc., of Waterworks, Gas or Electric Light Systems of Absorbed Municipalities {#sec-11-42-185 omnilex-key=us-al-statutes--title-11--11-42-185}
Should the city or town so absorbed or whose government is extinguished own any waterworks, gas or electric light systems, the city or town so altering or rearranging its boundary lines shall take charge of and operate said waterworks, gas or electric light systems on the same terms and conditions and charge the consumers thereof the same rates or charges as before said absorption by the city or town so altering or rearranging its boundary lines, and said city or town shall have the same use and benefit of said waterworks, gas or electric light systems as that of the city or town so absorbed.
*(Code 1907, §1161; Code 1923, §1875; Code 1940, T. 37, §234.)*
##### **§ 11-42-186** Partial Annexation - Payment of Proportionate Share of Bonded Indebtedness for Municipal Improvements by Expanded Municipality {#sec-11-42-186 omnilex-key=us-al-statutes--title-11--11-42-186}
Should the city or town so altering or rearranging its boundary lines absorb or annex any part of another city or town, the city or town so altering or rearranging its boundary lines shall assume and pay the proportionate share of the bonded indebtedness of the city or town from which said territory is taken that the cost of the municipal improvements in such territory taken from such city or town bears to the whole cost of municipal improvements made in the whole of the city or town from which such territory is taken immediately before such annexation; provided, that this section shall apply only to that part of bonded indebtedness actually expended for municipal improvements.
*(Code 1907, §1162; Code 1923, §1876; Code 1940, T. 37, §235.)*
##### **§ 11-42-187** Partial Annexation - Payment of Value of School Property, Etc., by Expanded Municipality {#sec-11-42-187 omnilex-key=us-al-statutes--title-11--11-42-187}
Said city or town shall also pay to the city or town from which territory is taken the value of any school property or other property that may be in such annexed territory at the time of such annexation.
The amount of said bonded indebtedness and the value of said property to be paid by said enlarged city or town shall be determined and agreed on by the council of the enlarged city or town and by the council of the city or town from which such territory is taken, in such a manner as they shall elect. If they cannot agree, then the matter shall be determined by the circuit court of the county in which such enlarged city or town may be upon the filing of a complaint by either municipality or by any taxpayer of either municipality.
*(Code 1907, §1163; Code 1923, §1877; Code 1940, T. 37, §236.)*
#### **Article 7** Reduction of Corporate Limits
##### **§ 11-42-200** Passage of Resolution Defining Proposed Reduced Corporate Limits {#sec-11-42-200 omnilex-key=us-al-statutes--title-11--11-42-200}
Whenever in the opinion of the council or governing body of any city or town the public health or public good requires that the corporate limits of such town or city be reduced and the boundaries thereof reestablished, said council shall pass a resolution defining the proposed corporate limits.
*(Acts 1923, No. 372, p. 394; Code 1923, §2413; Code 1940, T. 37, §237.)*
##### **§ 11-42-201** Certification and Filing with Probate Judge of Resolution, Plat or Map, and List of Qualified Electors {#sec-11-42-201 omnilex-key=us-al-statutes--title-11--11-42-201}
Upon the passage of such resolution the mayor or person holding the chief office of such city or town shall certify a copy of such resolution, together with a plat or map correctly defining the corporate limits proposed to be established, and the names of all qualified electors residing in the territory proposed to be excluded from the area of such corporation, and file the same with the judge of probate of the county in which said city or town is situated.
*(Acts 1923, No. 372, p. 394; Code 1923, §2414; Code 1940, T. 37, §238.)*
##### **§ 11-42-202** Filing of Resolution and Map or Plat; Notice to Residents of Territory to Be Excluded of Hearing to Show Cause Why Proposed Boundary Should Not Be Established and Map or Plat Recorded {#sec-11-42-202 omnilex-key=us-al-statutes--title-11--11-42-202}
Upon the presentation of such certified copy of such resolution, accompanied by the map or plat, the judge of probate shall file the same and issue notice to the persons residing within the territory proposed to be excluded to appear before him on a day to be fixed by the judge of probate, not less than 10 nor more than 30 days from the filing of such resolution, and show cause, if any they can, why said proposed boundary should not be established and said map or plat recorded.
*(Acts 1923, No. 372, p. 394; Code 1923, §2415; Code 1940, T. 37, §239.)*
##### **§ 11-42-203** Order to Be Entered Establishing Corporate Limits as Defined in Resolution and Map or Plat When No Protest Filed; Recordation of Map or Plat {#sec-11-42-203 omnilex-key=us-al-statutes--title-11--11-42-203}
On the day so fixed by the judge of probate if no one appears and makes protest against such change, the judge of probate shall make an order which must be entered upon the minutes of the probate court establishing said corporate limits as outlined in said resolution and map or plat and order that said map or plat be recorded in an appropriate record in his office.
*(Acts 1923, No. 372, p. 394; Code 1923, §2416; Code 1940, T. 37, §240.)*
##### **§ 11-42-204** Order to Be Entered Directing Election as to Establishment of Proposed Corporate Limits {#sec-11-42-204 omnilex-key=us-al-statutes--title-11--11-42-204}
If any protest against such change is made by any person within the territory to be excluded and reasonable cause is shown which, in the opinion of the judge of probate, requires that such question be submitted to the qualified electors of such city or town, the judge of probate shall make an order and enter the same upon the minutes of the probate court directing and ordering an election to be held by the qualified electors of said city or town not less than 10 nor more than 30 days from the making of such order.
*(Acts 1923, No. 372, p. 394; Code 1923, §2418; Code 1940, T. 37, §242.)*
##### **§ 11-42-205** Notice of Election {#sec-11-42-205 omnilex-key=us-al-statutes--title-11--11-42-205}
The judge of probate shall give notice of the holding of such election by publication in newspaper published within the city or town, one publication thereof for at least seven days being sufficient, and if no newspaper is published in such city or town then by posting a notice thereof at three public places in said city or town, which notice shall state the day on which such election is to be held, describe the proposed corporate limits as fixed by said resolution, and state that a map of such territory is on file in the office of judge of probate of said county, open to public inspection.
*(Acts 1923, No. 372, p. 394; Code 1923, §2419; Code 1940, T. 37, §243.)*
##### **§ 11-42-206** Places of Voting; Persons Entitled to Vote {#sec-11-42-206 omnilex-key=us-al-statutes--title-11--11-42-206}
Such election shall be held at the regular voting places in said city or town and all qualified electors residing in said city or town shall have a right to vote thereat.
*(Acts 1923, No. 372, p. 394; Code 1923, §2420; Code 1940, T. 37, §244.)*
##### **§ 11-42-207** Question Submitted; Conduct of Election Generally; Form, Marking, Etc., of Ballots; Appointment, Etc., of Clerks, Inspectors, and Returning Officer; Ascertainment, Etc., of Election Results; Entry of Order as to Adoption of Proposed Corporate Limits, Etc {#sec-11-42-207 omnilex-key=us-al-statutes--title-11--11-42-207}
(a) The election shall be to determine whether or not the proposed corporate limits shall be established, and such election must be conducted in all respects as provided by the general election laws and under the same sanctions and penalties, except as changed by the provisions of this article and except that no official ballot need be provided.
(b) Each voter may furnish his own ballot with the following words written or printed thereon: “For adoption of the proposed corporate limits,” if he desires to vote in favor of proposed corporate limits or “Against the adoption of proposed corporate limits,” if he desires to vote against the adoption of proposed corporate limits. It shall not be necessary for the ballot to be of any particular size, form, or color.
(c) The judge of probate shall appoint the inspectors and clerks and a returning officer to hold said election, and the inspectors at their respective voting places, as soon as the polls are closed, must ascertain and certify the result of the election at their respective voting places to the judge of probate and deliver the same to the returning officer who must at once return the same to the judge of probate, and the judge of probate must canvass the returns as made by the inspectors and if it appears that a majority of votes cast at the election was in favor of adoption of proposed corporate limits, the judge of probate must make and enter an order on the record of probate court adjudging and decreeing that the corporate limits of the city or town as proposed and as defined in the resolution and designated on the plat or map attached to the resolution have been duly adopted and are the legal corporate limits of said city or town and must order said resolution, together with said map, recorded in the records in his office, and from the time of the entry of such order said corporate limits shall be the corporate limits of said city or town.
*(Acts 1923, No. 372, p. 394; Code 1923, §2421; Code 1940, T. 37, §245.)*
##### **§ 11-42-208** Entry of Order Dismissing Proposal for Adoption of Proposed Corporate Limits {#sec-11-42-208 omnilex-key=us-al-statutes--title-11--11-42-208}
If it appears that the majority of votes cast in such election are against the adoption of the proposed corporate limits, an order shall be entered by the probate judge dismissing said proposal.
*(Acts 1923, No. 372, p. 394; Code 1923, §2422; Code 1940, T. 37, §246.)*
##### **§ 11-42-209** Contests of Election {#sec-11-42-209 omnilex-key=us-al-statutes--title-11--11-42-209}
The result of such election may be contested by any qualified elector voting at the election in the manner provided for contest of general municipal elections, making the city or town the contestee.
*(Acts 1923, No. 372, p. 394; Code 1923, §2423; Code 1940, T. 37, §247.)*
##### **§ 11-42-210** Costs and Expenses of Proceedings {#sec-11-42-210 omnilex-key=us-al-statutes--title-11--11-42-210}
The city or town at whose instance the proceedings are instituted shall pay all costs and expenses incident thereto, including the cost of such election so held.
*(Acts 1923, No. 372, p. 394; Code 1923, §2424; Code 1940, T. 37, §248.)*
##### **§ 11-42-211** Map or Plat, Etc., Evidence of Municipal Boundaries {#sec-11-42-211 omnilex-key=us-al-statutes--title-11--11-42-211}
Said map or plat, the record thereof or a certified copy therefrom, whether the same is adopted without objection or adopted after election as provided in this article, shall be evidence in any court of this state as to the proper boundaries of said city or town.
*(Acts 1923, No. 372, p. 394; Code 1923, §2417; Code 1940, T. 37, §241.)*
##### **§ 11-42-212** Laws Governing Territory Within Corporate Limits Established Pursuant to Article; Jurisdiction as to Same {#sec-11-42-212 omnilex-key=us-al-statutes--title-11--11-42-212}
The territory included within the corporate limits established under the provisions of this article shall be subject to all the laws and ordinances of said city or town then in force or that may thereafter be adopted, and said city or town shall have and exercise the same jurisdiction over said territory as it exercised over the original territory.
*(Acts 1923, No. 372, p. 394; Code 1923, §2425; Code 1940, T. 37, §249.)*
##### **§ 11-42-213** Fees and Compensation of Probate Judge and Other Officers for Services Rendered {#sec-11-42-213 omnilex-key=us-al-statutes--title-11--11-42-213}
The judge of probate for services rendered under the provisions of this article shall be entitled to charge a fee of $10.00. All other officers shall be entitled to the same compensation for services rendered by them as they are authorized by law to charge for similar services rendered by them and the city or town at whose instance the services are performed under the provisions of this article shall pay all costs and expenses thereof; except, that in the case of a contest as provided in this article, the cost of such contest shall be paid by the party against whom such contest is decided.
*(Acts 1923, No. 372, p. 394; Code 1923, §2426; Code 1940, T. 37, §250.)*
### **Chapter 43** Mayor and Council, Other Officers, Employees, Departments, Etc
#### **Article 1** General Provisions
##### **§ 11-43-1** Qualifications and Residence of Mayors, Councilmen, and Officers {#sec-11-43-1 omnilex-key=us-al-statutes--title-11--11-43-1}
Every mayor, councilman, and officer elected by the whole electorate of the city or town shall be a resident and qualified elector of the city or town in which he shall have been elected and shall reside within the limits of the city or town during his term of office. The councilmen shall be qualified electors of said city or town, residing within the limits of the ward from which they shall have been elected and shall reside within the limits of said ward during the term of their office.
*(Code 1907, §1069; Code 1923, §1761; Code 1940, T. 37, §403.)*
##### **§ 11-43-2** Election of Mayors and Aldermen; Exercise of Legislative Functions; Salary of Aldermen {#sec-11-43-2 omnilex-key=us-al-statutes--title-11--11-43-2}
**AMENDED BY ACT 2026-594, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) Except as provided in subsection (c), in all cities and towns at the general election to be held at the time provided by law, and quadrennially thereafter, there shall be elected a mayor, who, in cities having a population of 12,000 or more according to the last or any subsequent federal census, shall not sit with the council nor have a vote in its proceedings, and he or she shall have the power and duties conferred in this chapter.
(b) In all cities and towns having a population of less than 12,000 inhabitants according to the last or any subsequent federal census, the legislative functions shall be exercised by the mayor and five aldermen. The mayor shall preside over all deliberations of the council. At his or her discretion he or she may vote as a member of the council on any question coming to a vote, except in case of a tie, in which event he or she must vote.
(c)(1) Notwithstanding subsection (a), cities and towns having a population of 12,000 or more inhabitants, but less than 25,000 inhabitants, according to the most recent federal decennial census, by ordinance adopted by a majority vote of the council at least six months prior to the next general municipal election, may elect to operate pursuant to subsection (b) as it relates to the exercise of the legislative functions of the mayor until the population of the city or town is 25,000 inhabitants or more according to the most recent federal decennial census.
(2) Any city or town having a population of 12,000 or more inhabitants, but less than 25,000 inhabitants according to the most recent federal decennial census, which has elected to operate under subsection (b) by ordinance adopted by a majority vote of the council at least six months prior to the next general election, may elect to operate under subsection (a).
(d) The aldermen in the cities or towns shall be elected by the city or town at large at the general election held at the time provided by law, and quadrennially thereafter, or from wards as the councils may determine, not less than six months before an election, and shall receive such salary as the council may prescribe, which must be fixed by the council not less than six months prior to each general municipal election.
(e) The six-month requirement in this section may be waived when necessary to comply with a mandate by the U.S. Justice Department pursuant to the Voting Rights Act of 1965, as amended, or with an order issued by a state or federal court.
*(Code 1907, §1068; Acts 1909, No. 200, p. 197; Code 1923, §1760; Acts 1927, No. 608, p. 706; Acts 1935, No. 516, p. 1105; Code 1940, T. 37, §404; Acts 1955, No. 394, p. 930; Acts 1956, 1st Ex. Sess., No. 112, p. 170; Acts 1961, No. 666, p. 910, §1; Acts 1984, 1st Ex. Sess., No. 84-703, §2; Acts 1984, 1st Ex. Sess., No. 84-740, p. 82, §1; Acts 1987, No. 87-581, p. 928, §10; Act 2018-281, §1; Act 2022-399, §1.)*
##### **§ 11-43-3** Election, Etc., of Treasurer, Clerk, Etc., in Cities Having More Than 6,000 Inhabitants; Consolidation or Abolishment of Offices {#sec-11-43-3 omnilex-key=us-al-statutes--title-11--11-43-3}
(a) In cities having a population of more than 6,000, there shall be elected by the council, at its first regular meeting or as soon thereafter as practicable, a city treasurer and a city clerk, who shall hold office until the next general election and until their successors are elected and qualified, and such council may elect an auditor, and any officers whose election is required by ordinance, and, except as otherwise provided, the council shall have authority to fix the terms of office, prescribe their duties, and fix the salaries of the officers. The council may, by ordinance, require the city treasurer and the city clerk to be residents of the city. Except as provided in subsection (b), the council, by a two-thirds vote of the members elected, by and with the consent of the mayor, may consolidate two or more of the offices and may abolish any of the offices; provided, that the term of office of no incumbent shall be diminished.
(b) The consent of the mayor is not necessary to consolidate or abolish offices pursuant to subsection (a) if the mayor is operating pursuant to Section 11-43-2 as it relates to the legislative functions of the mayor in cities and towns having a population of 12,000 or more but less than 25,000 inhabitants according to the most recent or any subsequent federal decennial census.
*(Code 1907, §1066; Code 1923, §1758; Code 1940, T. 37, §405; Acts 1984, No. 84-296, p. 661, §1; Act 2018-281, §1.)*
##### **§ 11-43-4** Election of Clerk, Etc., in Towns and in Cities Having Less Than 6,000 Inhabitants; Filling of Vacancies in Council Generally {#sec-11-43-4 omnilex-key=us-al-statutes--title-11--11-43-4}
In cities having a population of less than 6,000 and in towns, the council shall elect a clerk and fix the salary and term of office, and may determine by ordinance the other officers of the city or town, their salary, the manner of their election and the terms of office, and shall fill all vacancies in the council by a majority vote of the council; and all members of the council may vote to fill vacancies any provision of law to the contrary notwithstanding. The clerk and such other officers elected by the council shall serve until their successor or successors are elected and qualified.
*(Code 1907, §1067; Acts 1919, No. 448, p. 687; Code 1923, §1759; Code 1940, T. 37, §406; Acts 1951, No. 290, p. 583; Acts 1981, No. 81-627, p. 1043; Acts 1984, No. 84-286, p. 497, §1.)*
##### **§ 11-43-5** Provision for Tax Assessor, Tax Collector, Chief of Police, Etc.; Designation of Persons to Administer Oaths, Issue Warrants, and Approve Appearance Bonds {#sec-11-43-5 omnilex-key=us-al-statutes--title-11--11-43-5}
The council may provide for a tax assessor, tax collector, chief of police, and chief of the fire department and shall specifically prescribe their duties. The council shall designate the persons who shall administer oaths and issue warrants of arrest for violations of law and the ordinances of the city or town and the persons authorized to approve appearance bonds of persons arrested.
*(Code 1907, §1227; Code 1923, §1951; Code 1940, T. 37, §407.)*
##### **§ 11-43-5.1** Abolition or Creation of Civil Service System, Etc., in Municipality Having Less Than 5,000 Inhabitants; Section in Pari Materia with Section 36-27-6 {#sec-11-43-5.1 omnilex-key=us-al-statutes--title-11--11-43-5.1}
(a) Any law to the contrary notwithstanding, the governing body of any municipality, with a population of less than 5,000 persons, by resolution duly adopted, may abolish or create a civil service system or other personnel board for its officers and employees. Provided, however, any person holding an office or position in or who is a member of any civil service or merit system within any such municipality upon any such action by a municipality shall continue all rights, interest, and privileges vested or vesting therein.
(b) The provisions of this section shall be construed in pari materia with Section 36-27-6; provided, however, those laws or parts of laws which are in conflict with the provisions of this act are hereby repealed.
*(Acts 1984, No. 84-665, p. 1333, §§1, 2.)*
##### **§ 11-43-5.2** Proceedings -- Rules of Procedure; Journal {#sec-11-43-5.2 omnilex-key=us-al-statutes--title-11--11-43-5.2}
**THIS SECTION WAS REPEALED BY ACT 2026-106, EFFECTIVE FEBRUARY 24, 2026.**
(a) This section shall apply to any Class 8 municipality with a corporate limit lying in two counties, which has a population equal to or greater than 25,000 according to the last decennial census and which was subject, on January 1, 2023, to a county personnel board.
(b)(1) The governing body of a municipality, by ordinance, may opt out from the jurisdiction of a county personnel board, effective six months after the effective date of the ordinance. A copy of the ordinance shall be transmitted to the county personnel board following its passage by the municipal governing body.
(2) Not less than 10 years after a municipality opts out from the county personnel board’s jurisdiction as provided in subdivision (1), the municipality, by ordinance, may opt back in to a county personnel board’s jurisdiction, effective six months after the effective date of the ordinance. A copy of the ordinance shall be transmitted to the county personnel board following its passage by the governing body.
(c) Any municipality that opts out from the county personnel board’s jurisdiction as provided in subdivision (b)(1) shall create its own municipal civil service system which shall ensure that the vested or vesting rights of any existing appointees of the county civil service system are protected and not otherwise altered or diminished, except as otherwise provided for by law.
(d)(1) Any municipality exercising its rights under this section may not engage in any type or form of discrimination that is prohibited by federal or state law.
(2) Any municipality that elects to opt out as provided in this section shall enact a policy that explicitly prohibits the appointment, promotion, demotion, or dismissal of an employee from any position which in any way favors or discriminates against the employee because of his or her political or religious opinions or affiliations or because of his or her race or gender or for any other reason that is prohibited by state or federal law.
*(Act 2023-460, §1.)*
##### **§ 11-43-5.3** Certain Class 8 Municipalities to Opt Out from the Jurisdiction of the County Personnel Board; Creation and Operation of Municipal Civil Service System {#sec-11-43-5.3 omnilex-key=us-al-statutes--title-11--11-43-5.3}
(a) This section shall apply to any Class 8 municipality with a corporate limit lying in two counties, which has a population equal to or greater than 25,000 according to the last decennial census and which was subject, on January 1, 2023, to a county personnel board.
(b)(1) The governing body of a municipality, by ordinance, may opt out from the jurisdiction of a county personnel board, effective six months after the effective date of the ordinance. A copy of the ordinance shall be transmitted to the county personnel board following its passage by the municipal governing body.
(2) Not less than 10 years after a municipality opts out from the county personnel board’s jurisdiction as provided in subdivision (1), the municipality, by ordinance, may opt back in to a county personnel board’s jurisdiction, effective six months after the effective date of the ordinance. A copy of the ordinance shall be transmitted to the county personnel board following its passage by the governing body.
(c) Any municipality that opts out from the county personnel board’s jurisdiction as provided in subdivision (b)(1) shall create its own municipal civil service system which shall ensure that the vested or vesting rights of any existing appointees of the county civil service system are protected and not otherwise altered or diminished, except as otherwise provided for by law.
(d)(1) Any municipality exercising its rights under this section may not engage in any type or form of discrimination that is prohibited by federal or state law.
(2) Any municipality that elects to opt out as provided in this section shall enact a policy that explicitly prohibits the appointment, promotion, demotion, or dismissal of an employee from any position which in any way favors or discriminates against the employee because of his or her political or religious opinions or affiliations or because of his or her race or gender or for any other reason that is prohibited by state or federal law.
*(Act 2026-106, §1.)*
##### **§ 11-43-6** Provision for Compensation of and Disposition of Fees Collected by Municipal Officers Generally {#sec-11-43-6 omnilex-key=us-al-statutes--title-11--11-43-6}
It may be provided by ordinance that any city or town officer, elected or appointed, shall receive a salary in lieu of all other compensation, and, in such cases, such officer shall not receive for his own use any fees or other compensation for his services as such officer but shall collect the fees authorized by law or ordinance and pay the same into the city or town treasury.
*(Code 1907, §1255; Code 1923, §1996; Code 1940, T. 37, §408.)*
##### **§ 11-43-7** Establishment of Salaries and Fees of Municipal Employees; Disposition of Fees of Clerk {#sec-11-43-7 omnilex-key=us-al-statutes--title-11--11-43-7}
All employees of any city or town whose compensation is not fixed by law shall receive such salary or fees for their services as the council may by ordinance from time to time prescribe. For all attested certificates and transcripts, other than ordered by the council, the clerk shall be paid fees not in excess of those allowed to county officers for like services to be accounted for in all cases as other public moneys where such clerk receives a salary or fixed compensation.
*(Code 1907, §1256; Code 1923, §1997; Code 1940, T. 37, §410.)*
##### **§ 11-43-7.1** Expense Allowances of Members of Council or Other Governing Body of Class 1 Municipalities and Municipalities Having Population of 250,000 or More {#sec-11-43-7.1 omnilex-key=us-al-statutes--title-11--11-43-7.1}
(a) The council or other governing body of Class 1 municipalities in Alabama and all municipalities in Alabama having a population of 250,000 or more according to the last or any subsequent federal decennial census, shall have the power and authority to grant to any member of such council or other governing body an amount of money for expenses incurred by such member on account of such member’s attending the business of such municipality within its corporate limits. The maximum expense allowance shall be $500.00 per month for each member of the council, except the president or chairman of the council or other governing body who may be given an allowance not to exceed $550.00 per month.
(b) In addition to the authority granted by subsection (a) hereof, the council or other governing body of Class 1 municipalities in Alabama and all municipalities in Alabama having a population of 250,000 or more according to the last or any subsequent federal decennial census, commencing December 1, 1987, shall have the power and authority to grant to any member of such council or other governing body who was elected for a term commencing in 1985 an amount of money in addition to that provided in subsection (a) above, for expenses incurred by such member on account of such member’s attending the business of such municipality within its corporate limits. The maximum additional expense allowance shall be $475.00 per month for each such member of the council. No such additional expense allowance shall be paid to any council member after November 15, 1989.
(c) The provisions of this section shall not be construed so as to prevent any such member of such council or other governing body from being reimbursed for actual expenses incurred by him on or in connection with a trip on municipal business beyond the corporate limits of such municipality, which amount shall not accrue against the monetary amounts provided in subsection (a).
*(Acts 1987, No. 87-798, p. 1571.)*
##### **§ 11-43-7.2** Additional Expense Allowances for Members of Council or Governing Body of Class 1 Municipalities {#sec-11-43-7.2 omnilex-key=us-al-statutes--title-11--11-43-7.2}
(a) In addition to the authority granted by Section 11-43-7.1, the council or other governing body of any Class 1 municipality may grant to the members of the council or governing body, an additional amount of money monthly for expenses incurred by the members when attending to the business of the municipality within its corporate limits. The maximum amount of the additional expense allowance shall be three hundred thirty-three dollars and thirty-three cents ($333.33) per month.
(b) Notwithstanding all other provisions of law, any council or governing body member may elect in writing to have the expense allowances authorized by subsection (a) of this section and Section 11-43-7.1, become subject to the withholding of any employee contribution required to be paid into the trust fund of any pension or retirement system in which the member is eligible to participate. A council or governing body member may also elect in writing, within 90 days of May 4, 1994, to pay into the pension or retirement system trust fund the required contribution on any expense allowances previously received by the member during all or any portion of the three-year period prior to the member’s payment election, together with interest at the rate of eight percent per annum thereon computed from the date of receipt of the allowance to the date of payment. If either or both of the elections is made by a member of the governing body or council, the expense allowances on which employee contributions are paid into the retirement plan trust fund shall be considered together with all salaries received by the member, from which the required employee contribution was likewise withheld and paid into the retirement trust fund, to determine the base amount on which any retirement benefits or allowances to which the council or governing body member may be entitled shall be computed as provided under the retirement system.
(c) The provisions of this section shall not be construed to prevent any member of the council or governing body from being reimbursed for actual expenses incurred by the member in connection with any travel on municipal business beyond the corporate limits of the municipality, and the amount incurred shall not accrue against the monetary amounts provided in subsection (a) of this section, nor shall the reimbursement for the amount incurred be eligible for pension system withholding or be considered in determining pension or retirement benefits or allowances.
*(Acts 1994, No. 94-715, p. 1387, §§1-3.)*
##### **§ 11-43-7.3** Salary of Members of City Council of Class 1 Municipalities {#sec-11-43-7.3 omnilex-key=us-al-statutes--title-11--11-43-7.3}
(a) This section shall relate to only any Class 1 municipality.
(b) Effective beginning the term of office commencing in 2017, the annual salary for each member of the city council of the Class 1 municipality shall be set and adjusted each regular four-year term by the State Personnel Board, by determining the median household income of the city rounded up to the nearest thousand, to take effect on the first day of January of each new term.
(c) The salary provided in subsection (b) shall constitute the total salary payable to the presiding officers and members of the city council, beginning with the term commencing immediately after any municipal election in 2017.
(d) The city council of the Class 1 municipality may not increase, supplement, or otherwise enlarge the salary payable to the members of the city council.
*(Act 2017-275, §§1-3.)*
##### **§ 11-43-8** Establishment of Salaries of Municipal Officers {#sec-11-43-8 omnilex-key=us-al-statutes--title-11--11-43-8}
The salaries of all officers of cities or towns except aldermen and councilmen shall be fixed by the municipal council or other governing body, but if there is a salary limit for such officers provided in the charter or laws governing the city or town, the same shall not be altered or changed above such salary limit except by a two-thirds vote of all members elected to said municipal council or other governing body of such cities or towns and by and with the consent of the mayor.
*(Code 1907, §1456; Code 1923, §2312; Code 1940, T. 37, §409.)*
##### **§ 11-43-9** Fees, Salary, Compensation, Etc., of Officers Not to Be Increased or Diminished During Term of Office {#sec-11-43-9 omnilex-key=us-al-statutes--title-11--11-43-9}
The fees, salary, compensation, or emoluments of any officer whose election or appointment is required or authorized by the applicable provisions of this title shall not be increased nor diminished during the term for which he shall have been elected or appointed, and no gratuitous appropriation in any case shall be made to or for the benefit of any officer or employee in addition to his salary.
*(Code 1907, §1257; Code 1923, §1998; Code 1940, T. 37, §411.)*
##### **§ 11-43-10** Municipal Officers to Pay Over Public Moneys Received; Daily Balances Required {#sec-11-43-10 omnilex-key=us-al-statutes--title-11--11-43-10}
Officers of any municipality collecting or receiving moneys of the municipality shall pay such moneys over to the city or town treasurer instanter, daily balances in all cases being required.
*(Code 1907, §1190; Code 1923, §1906; Code 1940, T. 37, §412.)*
##### **§ 11-43-11** Employment of Municipal Officers by Corporations Holding Franchises as to Use of Streets {#sec-11-43-11 omnilex-key=us-al-statutes--title-11--11-43-11}
No officer of any municipality shall, during his term of office, be an officer nor be employed in a managerial capacity, professionally or otherwise, by any corporation holding or operating a franchise granted by the city or the state involving the use of the streets of the municipality. This section shall not apply to or affect any attorney or physician employed by the municipality, and any municipality incorporated or organized under any general, special, or local law of the State of Alabama may employ an attorney or physician or attorneys or physicians employed by a public utility.
*(Code 1907, §1457; Code 1923, §2313; Code 1940, T. 37, §413; Acts 1953, No. 326, p. 383; Acts 1959, No. 547, p. 1354; Acts 1976, No. 685, p. 948.)*
##### **§ 11-43-12** Aldermen, Employees, Etc., Not to Be Interested, Etc., in Municipal Contracts, Etc.; Penalty {#sec-11-43-12 omnilex-key=us-al-statutes--title-11--11-43-12}
(a) No alderman or officer or employee of the municipality shall be directly or indirectly interested in any work, business or contract, the expense, price or consideration of which is paid from the treasury, nor shall any member of the council or officer of the municipality be surety for any person having a contract, work or business with such municipality for the performance of which a surety may be required.
(b) Any person who violates any of the provisions of this section shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not less than $50.00 nor more than $1,000.00, and may also be sentenced to hard labor for the county for not more than six months.
*(Code 1907, §1194; Acts 1909, No. 200, p. 197; Code 1923, §§1910, 5084; Code 1940, T. 37, §§414, 432.)*
##### **§ 11-43-12.1** Purchase of Services or Personal Property by Class 7 or 8 Municipalities from Elected Officials, Employees, or Members of Municipal Boards {#sec-11-43-12.1 omnilex-key=us-al-statutes--title-11--11-43-12.1}
(a) Notwithstanding any statute or law to the contrary, any municipality in Class 7 or 8 may legally purchase from any of the elected officials of such municipality or employees of such municipality or board members of municipal boards organized under statutory authority by or for such municipality, any personal service or personal property, provided the elected official, employee, or board member is the only domiciled vendor of the personal service or personal property within the municipality, and such elected official, employee, or board member may legally sell such personal service or personal property to the municipality. The cost or value of such personal service or personal property authorized to be obtained or purchased under this section shall in no event exceed the sum of $3,000.00. The elected official, employee, or board member, if he proposes to sell to the municipality, shall not participate in the decision-making process determining the purchase of such personal service or personal property but shall make any disclosure required by the provisions of the code of ethics for public officials, found in Chapter 25 of Title 36. The governing body of such municipality shall determine and find that the elected official, employee, or board member, from whom the purchase is to be made, is the sole vendor domiciled in the municipality and that the selling price of such service or property is lower than could be obtained from a vendor domiciled outside the municipality, and, in making such determination, consideration may be given to the quality of service or property proposed to be supplied, conformity with specifications, purposes for which required, terms of delivery, transportation charges, and the date of delivery.
(b) Notwithstanding any statute or law to the contrary, any municipality in Class 7 or 8 may legally purchase from any of the elected officials, employee, or board member of such municipality any personal service or personal property under the Competitive Bid Law procedures established by Article 3, Chapter 16, Title 41, and such elected officials, employee, or board member may legally sell such personal service or personal property to such municipality under the procedures of said statutes. The elected official, employee, or board member, if he proposes to bid, shall not participate in the decision-making process determining the need for or the purchase of such personal service or personal property, or in the determination of the successful bidder, and the governing body shall affirmatively find that the elected official, employee, or board member, from whom the purchase is to be made, is the lowest responsible bidder as required by said statutes. It shall be the duty and responsibility of the municipality to file a copy of any contract awarded to any of its elected officials, employees, or board members with the State Ethics Commission and all awards shall be a result of original bid takings.
It is the intention of the Legislature by the adoption of this section to specifically remove any statutory or legal prohibitions against municipalities, in Classes 7 and 8, dealing with their elected officials, employees, or board members in the purchase of personal services or personal property.
(c) In the event an elected official, employee, or board member offers to sell or submit a bid to the municipality for the sale of personal property or a contract for furnishing personal services, the said official, employee, or board member shall make full disclosure of his ownership or extent of ownership in the business organization with which he is associated. In the event the business organization is a partnership, the names and addresses and percentage of ownership of the partners shall be disclosed and, in the event the business organization is a corporation, the names and addresses and percentage of ownership of all stockholders shall be disclosed. The disclosure required hereunder shall be made, under oath of the elected official, employee, or board member, in the original submission to the municipality and in like manner in any contract or agreement entered into with the municipality.
*(Acts 1981, No. 81-345, p. 501; Acts 1987, No. 87-779, p. 1530, §1.)*
##### **§ 11-43-13** Bonds of Certain Municipal Officers or Employees {#sec-11-43-13 omnilex-key=us-al-statutes--title-11--11-43-13}
All officers or employees handling money or exercising authority over property of municipalities shall, before entering upon the discharge of their duties, give bond, with surety to be approved by the mayor, in such penalty as the council may prescribe, conditioned for the faithful discharge of the duties of his office and faithfully to account for all moneys received.
*(Code 1907, §1189; Code 1923, §1905; Code 1940, T. 37, §415.)*
##### **§ 11-43-14** Dealing, Etc., in Warrants, Claims, Etc., of Municipality by Officers or Employees {#sec-11-43-14 omnilex-key=us-al-statutes--title-11--11-43-14}
It shall be unlawful for any officer or employee of a town or city, himself or through any person, to deal or traffic in any manner whatever in any warrant, claim or liability against the town or city, and any person who violates this section shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $50.00 nor more than $500.00. If any person so violating the foregoing provisions is the mayor or any member of the council or any city board, he shall be subject to impeachment.
Nothing contained in this section shall prevent any officer from selling a claim he may acquire directly from the town or city in payment of a debt due him or from purchasing in good faith so much of such claims as may be sufficient to pay his taxes and licenses for the current year.
*(Code 1907, §7444; Code 1923, §5036; Code 1940, T. 37, §416.)*
##### **§ 11-43-15** False Enumeration of Municipal Census {#sec-11-43-15 omnilex-key=us-al-statutes--title-11--11-43-15}
Any enumerator of census for a municipality who willfully causes a false enumeration to be made, knowing the same to be false, shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $100.00 nor more than $500.00 and also may be sentenced to hard labor for the county for not more than six months.
*(Code 1907, §7454; Code 1923, §5046; Code 1940, T. 37, §417.)*
##### **§ 11-43-16** Employment of County Deputy Sheriffs as Policemen {#sec-11-43-16 omnilex-key=us-al-statutes--title-11--11-43-16}
Incorporated municipalities are authorized and permitted to employ as policemen, on a part-time basis, deputy sheriffs of a county in which the municipality is located. The governing body of the municipality employing such deputy sheriffs shall fix by ordinance the duties and salaries of such persons. In addition, the municipality may require that any person or persons so employed be residents of the employing municipality.
*(Acts 1971, No. 2235, p. 3592.)*
##### **§ 11-43-17** Ratification of Certain Salaries of Mayors and Councilmen {#sec-11-43-17 omnilex-key=us-al-statutes--title-11--11-43-17}
The salary of any mayor or councilman prescribed prior to February 12, 1980, by the council of the municipality in which they serve is hereby validated and ratified.
*(Acts 1980, No. 80-94, p. 140, §9.)*
##### **§ 11-43-18** Vacancies of Over 60 Days in Governing Bodies of Class 5 Municipalities {#sec-11-43-18 omnilex-key=us-al-statutes--title-11--11-43-18}
(a) Unless otherwise provided by local law, vacancies in the governing bodies of all Class 5 municipalities which have existed for more than 60 days shall be filled as herein provided:
(1) If the vacated term has less than six months remaining, then the remaining members of the city governing body shall appoint a successor by a majority vote of those members voting. In case of a tie vote, the mayor, if there is one, shall cast the tie-breaking vote. The successor shall serve the remainder of the unexpired term until a successor has been qualified and elected.
(2) If the term has been declared vacant and has six months or more remaining, the mayor, if there is one, otherwise the senior member of the city governing body, shall call for a special election to fill the vacancy. The successor shall serve the remainder of the unexpired term until a successor has been qualified and elected.
(b) Special elections called pursuant to this section shall be conducted as provided by the general laws of this state regarding municipal elections.
(c) The procedures provided in this section shall be used, unless otherwise provided by local law, for any vacancies existing on or after May 7, 1981.
*(Acts 1981, No. 81-440, p. 763.)*
##### **§ 11-43-19** Retirement Pensions for Certain Elected Public Officials of Class 2 Municipalities {#sec-11-43-19 omnilex-key=us-al-statutes--title-11--11-43-19}
In any Class 2 municipality in this state, any elected public official of such municipality, or any former elected public official of such municipality, who has served as an elected official of such municipality for a total of eight years or more, and who in addition thereto has served as an elected public official of the county within which said municipality is located, for not less than 10 years, and who has attained the age of 64 years and has retired from such service or if he shall have heretofore retired from such service, shall, upon May 4, 1982, receive a pension from the municipality, which pension shall be in an amount of $600.00 per month.
(b) This retirement pension shall be paid to such retired official by said municipality out of the general fund of said municipality in equal monthly installments commencing on the first day of the second month after his retirement, each such monthly payment to be for the last previous month, and shall continue until his death.
*(Acts 1982, No. 82-477, p. 797, §§1, 2.)*
#### **Article 2** Manager
##### **§ 11-43-20** Authority and Procedure for Employment {#sec-11-43-20 omnilex-key=us-al-statutes--title-11--11-43-20}
All municipalities in the State of Alabama, whether now or hereafter operating under a municipal government consisting of a mayor and aldermen or of a commission, are hereby authorized at their discretion to employ a city manager with the authority, duties, and liabilities described in this article, whose term of office and compensation shall be as prescribed in this article.
The authority given under this article to employ a city manager and to invoke the provisions hereof shall be exercised by the passage of an ordinance or resolution by the governing body of the municipality so desiring to employ a city manager, which ordinance or resolution shall set a date not less than 30 nor more than 60 days following the date of its passage upon which the city manager shall assume his office.
*(Acts 1936, Ex. Sess., No. 168, p. 197; Code 1940, T. 37, §418; Acts 1945, No. 354, p. 572.)*
##### **§ 11-43-21** Qualifications; Compensation; Powers and Duties; Bond; Term of Office and Removal {#sec-11-43-21 omnilex-key=us-al-statutes--title-11--11-43-21}
(a) A city manager employed under the provisions of this article shall have the authority and be charged with the duties, liabilities, and penalties and shall hold office and receive compensation as set forth in this section: The city manager shall be the administrative head of the municipal government. He shall be chosen by the governing body of the municipality without regard to political beliefs and solely upon the basis of his executive and administrative qualifications. The choice shall not be limited to inhabitants of the municipality or of the State of Alabama. The city manager shall receive such compensation as may be prescribed by ordinance of the governing body, which shall be payable in 12 monthly installments from the municipal treasury. During the absence or disability of the city manager the governing body shall designate some properly qualified person to perform the duties of the office of city manager. The city manager must devote all of his working time and attention to the affairs of the municipality and shall be responsible to the governing body for the efficient administration of all the affairs of the municipality over which he has jurisdiction.
(b) The city manager shall have the power and it shall be his duty:
(1) To see that all laws and ordinances are enforced;
(2) To appoint and employ all necessary employees of the municipality; provided, that the positions of chief of police, chief of the fire department, and superintendent of the waterworks or other utility plants shall be filled by the governing body;
(3) To remove employees employed by him without the consent of the governing body and without assigning any reason therefor; provided, that nothing in this section shall operate or confer upon the city manager supervision and control over the municipal board of education or municipal schools, utilities operated by the municipality, or its police or fire department other than the authority to engage the employees under the heads of the police and fire departments and utilities operated by the municipality;
(4) To attend all meetings of the governing body with a right to take part in the discussions, but having no vote. The city manager shall be entitled to notice of all special meetings;
(5) To recommend to the governing body for adoption such measures as he may deem necessary or expedient;
(6) To see that all terms and conditions imposed in favor of the municipality or its inhabitants in any public utility franchise are faithfully kept and performed and, upon the knowledge of any violation thereof, to call the same to the attention of the city or town attorney, whose duty it shall be forthwith to take such steps as are necessary to protect and enforce the same;
(7) To make and execute all lawful contracts on behalf of the municipality as to matters within his jurisdiction; provided, that no contract, purchase, or obligation involving more than $100.00 shall be binding until after approval by the governing body;
(8) To keep the governing body at all times fully advised as to the financial condition and needs of the municipality;
(9) To make a full written report to the governing body on the first of each month showing the operation and expenditures of each department of the municipal government for the preceding month;
(10) To fix all salaries and compensations of municipal employees lawfully employed by him, subject, however, to supervision, approval, or disapproval of the governing body;
(11) To perform the duties of the city or town clerk without additional compensation, when so directed by resolution of the governing body, and when so acting he shall be charged with all of the duties, powers, responsibilities, and penalties of the city or town clerk. When so acting his official acts may be in his name as city manager;
(12) To act as the purchasing agent for the municipality, by whom all of the purchases of supplies for departments under his control as well as those for the fire and police departments and utilities operated by the municipality shall be made, and he shall approve all vouchers in payment of such purchases; provided, that all purchases involving the expenditure of more than $100.00 in one transaction or for one purpose shall first be authorized or approved by the governing body; and
(13) To perform such other duties as may be prescribed by law or by ordinance or resolution of the governing body.
(c) The city manager, before entering upon the discharge of his duties, shall give bond in the penal sum of not less than $5,000.00 nor more than $20,000.00, to be fixed by the governing body and to be approved by them, payable to the municipality and for the benefit of the municipality and for the use and benefit of the public to secure and indemnify the municipality and any of the public by reason of his default, misfeasance, malfeasance, or nonfeasance in the performance of his duties.
(d) The term of office of the city manager shall be coextensive with the term of office of the governing body; provided, that he may be discharged upon 60 days’ written notice following the vote of as many as two thirds of the entire number of members of the governing body.
*(Acts 1936, Ex. Sess., No. 168, p. 197; Code 1940, T. 37, §419; Acts 1945, No. 354, p. 572.)*
##### **§ 11-43-22** Provisions of Article Cumulative; Affirmative Action Necessary to Exercise Powers, Etc., Conferred by Article {#sec-11-43-22 omnilex-key=us-al-statutes--title-11--11-43-22}
This article shall be supplementary to other statutes relating to municipal government in Alabama and shall be cumulative, and the provisions of this article shall not be mandatory as to any municipality coming within its scope unless affirmative action to exercise the authorities and powers hereby conferred are properly taken by the governing body of such municipalities in accordance with the provisions hereof.
*(Acts 1936, Ex. Sess., No. 168, p. 197; Code 1940, T. 37, §420.)*
#### **Article 3** Council
##### **§ 11-43-40** Composition of City Councils; Voting by President of Council {#sec-11-43-40 omnilex-key=us-al-statutes--title-11--11-43-40}
(a) Except as provided in Section 11-43-2 as it relates to the legislative functions of the mayor in cities and towns having a population of 12,000 or more but less than 25,000 inhabitants according to the most recent or any subsequent federal decennial census, in cities having a population of 12,000 or more, the following officers shall be elected at each general municipal election, who shall compose the city council for the cities and who shall hold office for four years and until their successors are elected and qualified, and who shall exercise the legislative functions of city government and any other powers and duties which are or may be vested by law in the city council or its members:
(1) In cities having seven wards or less, a president of the city council and two aldermen from each ward, to be elected by the qualified voters of the several wards voting separately in every ward; except, that in cities having a population of less than 20,000, the two aldermen from each ward shall be elected by the electors of the city at large.
(2) In cities having more than seven wards, one alderman from each ward, and a sufficient number of aldermen from the city at large to make the total number of aldermen 14 exclusive of the president of the council; provided, that in cities having a population of 50,000 or more, the city council may create not more than 20 wards.
(3) In cities having a population of more than 30,000 according to the most recent federal decennial census or according to any census of the city made pursuant to Sections 11-47-90 through 11-47-95, and having only five wards, a president of the council and five aldermen, if the governing body shall so provide by ordinance or resolution adopted by two-thirds vote of the governing body at least six months prior to a general municipal election. If an ordinance or resolution is adopted, one alderman shall reside in each of the respective wards of the city, the president and all of the aldermen shall be elected by the voters of the city at large, and the president shall vote only in case of a tie.
(4) Notwithstanding subdivisions (1), (2), and (3), the governing body of any city having a population of 12,000 or more may by ordinance or resolution, if adopted by two-thirds vote of the governing body more than six months prior to any general municipal election, provide that the city council of the city shall consist of five aldermen to be elected from the city at large.
(5) Notwithstanding subdivisions (1), (2), (3), and (4), the governing body of any city having a population of 12,000 or more which does now elect council members from single-member districts or cities presently operating with five single-member districts as established under a federal court order, by ordinance or resolution, if adopted by two-thirds vote of the governing body more than six months prior to any general municipal election, may provide that the city council of the city shall consist of eight aldermen to be elected from single-member districts (wards) with the president of the city council to be elected by the qualified voters of the several wards voting separately in every ward.
(6) Notwithstanding subdivisions (1), (2), (3), (4), and (5), the city council of any Class 6 municipality, having a population of 19,000 or more, operating under a mayor-council form of government elected on a citywide basis, by ordinance adopted by a majority vote of the city council more than four months prior to the general municipal election for which the ordinance is to take effect, may provide for staggered terms of office for the city council as follows:
a. Each of the council seats established for the city shall be designated by separate number or place.
b. The initial term of office for persons holding the odd-numbered council seats shall be established at two years and the initial terms of office for persons holding the even-numbered council seats and that of the mayor of the city shall remain at four years.
c. Upon expiration of the initial two-year terms of office to be served by the council members holding odd-numbered seats, each council member elected to the seats shall thereafter hold office for a term of four years so that the mayor and all council members are elected for four-year terms of office with the terms to be staggered as provided.
d. This subdivision may not be construed to authorize the governing body of any municipality to which it applies by ordinance or otherwise to shorten the term of any elected official serving on April 15, 2004.
(7) Notwithstanding subdivisions (1), (2), (3), (4), and (5), the city council of any Class 8 municipality having a population of 60,000 or more inhabitants elected by the qualified voters operating under a mayor-council form of government on a citywide basis, by ordinance adopted by a two-thirds vote of the city council more than three months prior to the general municipal election for which the ordinance is to take effect, may provide for the city council to consist of either five or seven aldermen to be elected from the municipality at large.
(b) Unless provided otherwise in this section, the president of the council shall have the right to vote on all questions the same as any other member of the council.
*(Code 1907, §1067; Acts 1909, No. 56, p. 100; Code 1923, §1757; Acts 1927, No. 608, p. 706; Acts 1931, No. 371, p. 436; Code 1940, T. 37, §426; Acts 1956, 2nd Ex. Sess., No. 21, p. 288; Acts 1961, No. 666, p. 910, §2; Acts 1987, No. 87-474, §1; Acts 1987, No. 87-652, p. 1157, §1; Acts 1988, 1st Sp. Sess., No 88-918, p. 512, §1(1); Act 2004-239, p. 317, §1; Act 2004-311, p. 443, §1; Act 2018-281, §§1,2.)*
##### **§ 11-43-41** Filling of Vacancies in Office of Aldermen {#sec-11-43-41 omnilex-key=us-al-statutes--title-11--11-43-41}
Vacancies in the office of the aldermen in any city or town shall be filled by the council at the next regular meeting or any subsequent meeting of the council, the person so elected to hold for the unexpired term.
*(Acts 1931, No. 371, p. 436; Code 1940, T. 37, §427.)*
##### **§ 11-43-42** Exercise of Functions of Mayor During Absence or Disability of Mayor; Filling of Vacancies in Offices of Mayor, President, and President Pro Tempore of Council {#sec-11-43-42 omnilex-key=us-al-statutes--title-11--11-43-42}
(a) In case of the absence of the mayor from a city of 12,000 or more inhabitants or his inability to serve on account of sickness or any other good reason, the president of the council or the president pro tempore of the council in case of absence or disability of the president of the council shall act as mayor pro tempore with the power and authority of the mayor during such time. In the event of a failure or refusal of the president of the council or the president pro tempore of the council to act, the council may appoint one of its members to act as mayor pro tempore with like effect, which appointment shall be entered in the minutes of the council.
In the event of a vacancy from any cause in the office of mayor, the president of the council shall succeed to the office of mayor for the unexpired term. In the event of a vacancy in the office of the president of the council, the president pro tempore shall, in like manner, be president of the council for the unexpired term. In the event of a vacancy in the office of the president pro tempore, the office shall be filled from the membership of the council.
(b) In cities of less than 12,000 inhabitants and in towns, in case of the absence or disability of the mayor, the functions of the office shall be exercised by the chairman pro tempore of the council and, during his absence or disability, by such person as the council may appoint from its membership, which appointment must be entered upon the minutes of the council.
In the event of a vacancy from any cause in the office of mayor, the council shall fill the vacancy either from its own membership or from without the membership of the council. The person elected by the council to fill the vacancy in the office of mayor shall be a qualified elector in the municipality and must meet all other legal qualifications required by law for the performance of the duties of the office to which elected.
(c) In cities having a population of 12,000 or more which have, by ordinance or resolution, adopted by two thirds vote of the city council more than six months prior to any general municipal election, provided that the city council shall consist of five aldermen to be elected from the city at large, there shall be elected by the council and from its members a president of the council and a president pro tempore of the council, which appointments must be entered upon the minutes of the council. In such cities, in case of the absence or disability of the mayor, the functions of the office shall be exercised by the president of the council and, during his absence or disability, by the president pro tempore of the council.
In the event of a vacancy for any cause in the office of mayor, the president of the council shall succeed to the office of mayor for the unexpired term. In the event of a vacancy for any cause in the office of president of the council, the president pro tempore shall, in like manner, be president of the council for the unexpired term.
(d) The provisions of this section shall not apply to cities operating under commission form of government.
*(Code 1907, §1188; Acts 1923, No. 95, p. 81; Code 1923, §1904; Code 1940, T. 37, §428; Acts 1943, No. 451, p. 414; Acts 1951, No. 604, p. 1041; Acts 1961, No. 666, p. 910, §3.)*
##### **§ 11-43-43** Powers and Duties Generally {#sec-11-43-43 omnilex-key=us-al-statutes--title-11--11-43-43}
All legislative powers and other powers granted to cities and towns shall be exercised by the council, except those powers conferred on some officers by law or ordinance. The council shall perform the duties required by this title and other applicable provisions of law.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-44** Organizational Meeting {#sec-11-43-44 omnilex-key=us-al-statutes--title-11--11-43-44}
The members of such council shall, on the first Monday in November after their election, assemble and organize the council.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4; Act 2006-354, p. 937, §2.)*
##### **§ 11-43-45** Officers - Election or Appointment {#sec-11-43-45 omnilex-key=us-al-statutes--title-11--11-43-45}
All elections of officers shall be made viva voce, and a concurrence of a majority of the members to the council shall be required, and all members of the council may vote any provision of law to the contrary notwithstanding. On the vote resulting in an election or appointment, the name of each member and for whom he voted shall be recorded.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4; Acts 1984, No. 84-286, p. 497, §2.)*
##### **§ 11-43-46** Officers - Terms of Service {#sec-11-43-46 omnilex-key=us-al-statutes--title-11--11-43-46}
The council shall fix by ordinance the terms of service, not to exceed the term of the mayor, of all the officers appointed or elected whose terms are not prescribed by law.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-47** Officers - Powers and Duties {#sec-11-43-47 omnilex-key=us-al-statutes--title-11--11-43-47}
The council shall prescribe by an ordinance the powers to be exercised and the duties to be performed by the officers appointed or elected so far as such duties and powers are not prescribed by law.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-48** Proceedings - Quorum {#sec-11-43-48 omnilex-key=us-al-statutes--title-11--11-43-48}
In all towns or cities, a majority of the whole number of members to which such corporation is entitled, including the mayor in towns and cities of less than 12,000 population, shall be necessary to constitute a quorum.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-49** Proceedings - Time and Place of Meetings Generally; Appointment of Temporary Chairman or Election of President Pro Tempore {#sec-11-43-49 omnilex-key=us-al-statutes--title-11--11-43-49}
The council shall determine the time and place of holding its meetings, which at all times shall be open to the public, and, in towns and cities of less than 12,000 population, in the absence of the mayor, shall appoint a temporary chairman, which appointment shall be entered of record. In cities of more than 12,000 population, it shall elect viva voce a president pro tempore.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-50** Proceedings - Regular and Special Meetings; Cancelling and Rescheduling Meetings {#sec-11-43-50 omnilex-key=us-al-statutes--title-11--11-43-50}
(a) There shall be at least two regular meetings of the council in each month, except that in towns, as defined in Section 11-40-6, there shall be at least one regular meeting of the council in each month; but provided, however, the council of any town may, by ordinance, mandate at least two regular meetings of the council in each month, and the presiding officer shall call special meetings whenever in his or her opinion the public interest may require it and whenever two council members or the mayor request the presiding officer in writing to call a meeting. Upon the failure or refusal of the presiding officer to call a meeting when requested, the two council members or the mayor making the request shall have the right to call the meeting.
(b) A council member may notify the presiding officer in writing when the member will be unable to attend a council meeting. If the presiding officer receives sufficient written notice to indicate that a quorum will not be present at a meeting, the presiding officer may cancel the meeting and give notice that the meeting is canceled. If a meeting canceled pursuant to this subsection is a regular meeting, the presiding officer may reschedule the meeting provided proper notice is given pursuant to subsection (b) of Section 36-25A-3.
*(Code 1907, §1198; Code 1923, §1914; Code 1940, T. 37, §430; Acts 1983, 3rd Ex. Sess., No. 83-828, p. 49, §1; Act 2013-308, p. 1040, §1.)*
##### **§ 11-43-51** Proceedings - Compulsion of Attendance of Members {#sec-11-43-51 omnilex-key=us-al-statutes--title-11--11-43-51}
The council may compel the attendance of absent members in such manner and under such penalties as it may prescribe.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-52** Proceedings - Rules of Procedure; Journal {#sec-11-43-52 omnilex-key=us-al-statutes--title-11--11-43-52}
The council shall determine the rules of its own proceedings and keep a journal thereof, which shall be open to the inspection and examination of all citizens and shall have the force and effect of a record, and a copy thereof, certified by the clerk, shall be prima facie evidence in any court or elsewhere.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-53** Aldermen Not to Hold Other Municipal Offices or Have Interest, Etc., in Municipal Contracts, Etc.; Penalty {#sec-11-43-53 omnilex-key=us-al-statutes--title-11--11-43-53}
(a) No member of any city or town council shall, during the time for which he has been elected, be appointed to any municipal office which shall be created or the emoluments of which shall be increased during the term for which he shall have been elected; nor shall he be interested, directly or indirectly, in any contract or job for work or material, or the profits thereof or services to be performed for the corporation, except as provided in this title.
(b) Any person who violates any of the provisions of this section shall be guilty of a misdemeanor, and on conviction thereof, shall be fined not less than $50.00 nor more than $1,000.00, and may also be sentenced to hard labor for the county for not more than six months.
*(Code 1907, §1193; Acts 1909, No. 200, p. 197; Code 1923, §§1909, 5084; Code 1940, T. 37, §§431, 432.)*
##### **§ 11-43-54** Aldermen Not to Vote on Certain Matters; Removal {#sec-11-43-54 omnilex-key=us-al-statutes--title-11--11-43-54}
No councilman shall be entitled to vote on any question in which he, his employer, or employee has a special financial interest at the time of voting or was so interested at the time of his election. For violating this section or Section 11-43-53, a councilman may be removed.
*(Code 1907, §1197; Acts 1909, No. 200, p. 197; Code 1923, §1913; Code 1940, T. 37, §433.)*
##### **§ 11-43-55** Establishment, Organization, Etc., of Police Force {#sec-11-43-55 omnilex-key=us-al-statutes--title-11--11-43-55}
Except as otherwise provided in this title, the council shall have power to establish a police force and to organize the same under the general supervision of the chief of police, and to provide one or more station houses and to require all things necessary for the maintenance of an efficient police department.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-56** Management and Control of Finances and Property of Municipality {#sec-11-43-56 omnilex-key=us-al-statutes--title-11--11-43-56}
Except as otherwise provided in this title, the council shall have the management and control of the finances and all of the property, real and personal, belonging to the city or town.
*(Code 1907, §1192; Code 1923, §1908; Code 1940, T. 37, §429; Acts 1961, No. 666, p. 910, §4.)*
##### **§ 11-43-57** Annual Appropriation of Funds for Expenditures of Departments and Interest on Indebtedness {#sec-11-43-57 omnilex-key=us-al-statutes--title-11--11-43-57}
In all cities, the council shall appropriate the sums necessary for the expenditures of the several city departments and for the interest on its bonded and other indebtedness, not exceeding in the aggregate within 10 percent of its estimated receipts, and such city council shall not appropriate in the aggregate an amount in excess of its annual legally authorized revenue. But nothing in this section shall prevent such cities from anticipating their revenues for the year for which such appropriation was made, or from contracting for temporary loans as provided in the applicable provisions of this title, or from bonding or refunding their outstanding indebtedness or from appropriating anticipated revenue at any time for the current expenses of the city and interest on the bonded and other indebtedness of the city.
*(Code 1907, §1196; Acts 1915, No. 469, p. 489; Code 1923, §1912; Code 1940, T. 37, §434.)*
##### **§ 11-43-58** Judging of Qualifications and Election of Mayor, President of Council, Etc {#sec-11-43-58 omnilex-key=us-al-statutes--title-11--11-43-58}
The council shall judge of the qualifications and election of the mayor, the president of the council and of each alderman, and such other officers as may be elected by the people, and the resolutions and ordinances that may be adopted by the council under this section shall not be subject to the approval or disapproval of the mayor.
*(Code 1907, §1065; Acts 1909, No. 56, p. 100; Code 1923, §1756; Code 1940, T. 37, §435.)*
##### **§ 11-43-59** Adoption of Fire Limits, Building Laws and Ordinances, Etc.; Condemnation of Buildings, Etc.; Charges for Inspections {#sec-11-43-59 omnilex-key=us-al-statutes--title-11--11-43-59}
The council may prescribe fire limits in any city or town, and buildings of wood or other inflammable material shall not be erected therein. The council may do all things necessary to prevent conflagration and give security to the inhabitants of the city or town from fires. The council may adopt building laws and may employ building inspectors to see that the laws are not violated and that the plans and specifications for buildings are not in conflict with the ordinances of the city or town and may exact fees to be paid by the owners of the property inspected. The council may secure the safety of persons from fire in hotels and halls and in such other buildings as may be designated by the council, to have and maintain ample means of exit in case of fire, and may refuse to license and may prevent the use of such buildings for such purposes until such ordinances have been complied with. The council may adopt ordinances requiring buildings to be equipped with fire escapes when in the opinion of the council they are necessary. The council may condemn buildings, parts of buildings, or structures dangerous to the public and prohibit the use thereof and abate the same as a nuisance. The council may make reasonable charges for the service of plumbing and electric wiring inspection, inspection of foods and feedstuffs, meats and vegetables, and weights and measures.
*(Code 1907, §1264; Code 1923, §2012; Code 1940, T. 37, §436.)*
##### **§ 11-43-60** Regulation of Storage, Use, Etc., of Explosives; Compulsion of Efficient Service by Public Utility Corporations {#sec-11-43-60 omnilex-key=us-al-statutes--title-11--11-43-60}
(a) The council may regulate and control or prohibit the erection of powder magazines within the police jurisdiction of the city or town, and prevent explosives and dangerous substances from being stored within the city or town and regulate the manner in which explosives may be hauled or kept within the police jurisdiction.
(b) The council may compel public utility corporations using a franchise obtained from the municipality to render efficient service to the inhabitants thereof.
*(Code 1907, §1271; Code 1923, §2019; Code 1940, T. 37, §437.)*
##### **§ 11-43-61** Regulation of Running, Switching, Etc., of Cars, Trains, and Locomotives on Streets, Crossings, Highways, Etc {#sec-11-43-61 omnilex-key=us-al-statutes--title-11--11-43-61}
The council may prescribe reasonable regulations for the running of cars, trains, and locomotives on, over, upon, or across the streets, avenues, alleys, or public places of the city or town. The council may prescribe appliances on grade crossings for the safety of the public and regulate and control the switching of cars on crossings or highways of the municipality.
*(Code 1907, §1272; Code 1923, §2020; Code 1940, T. 37, §438.)*
##### **§ 11-43-62** Regulation of Use of Streets for Telephone, Telegraph, Etc., Lines; Sale or Lease of Franchises and Disposition of Moneys Therefrom {#sec-11-43-62 omnilex-key=us-al-statutes--title-11--11-43-62}
The council shall regulate the use of the streets for the erection of telegraph, telephone, electric, and all other systems of wires and conduits and may require the same to be placed underground if deemed necessary for the public convenience and safety and generally to control and regulate the use of the streets for any and all purposes.
The council may sell or lease in such manner as it may deem advisable any franchise which it has power to grant, and the moneys received therefor shall be paid into the city treasury.
*(Code 1907, §1268; Code 1923, §2016; Code 1940, T. 37, §439.)*
##### **§ 11-43-63** Division of Municipality into Single-Member Districts {#sec-11-43-63 omnilex-key=us-al-statutes--title-11--11-43-63}
Any city or town council of this state not currently electing its members from single-member districts pursuant to state law may, not less than six months prior to the regular general municipal election, by ordinance adopted by a majority of the membership of the council, divide the municipality into single-member districts (wards) of not less than five nor more than seven districts (wards). Provided, however, that the number of districts (wards) in any Class 1, 2, or 3 municipality may not exceed nine districts (wards). Such ordinance shall be considered only after two weeks public notice has been given, outlining generally the voting districts under consideration. The ordinance shall provide that candidates for election for a place on the council, where the council has been divided into districts, shall reside within the boundaries of said district (ward) for which he or she seeks election, and shall continue to reside in the district he or she represents so long as he or she remains a member of said council and further that candidates for election to a place on the council shall have resided within the district from which he or she seeks election for a period of 90 days immediately preceding the date of the election. Only electors residing within a district shall be entitled to vote for candidates seeking election for said district.
The ordinance establishing the districts shall describe the territory composing the district by metes and counts, or census tracts, and the municipal clerk, within five days after the adoption of the ordinance, shall file with the judge of probate of the county or counties in which the municipality lies a certified copy of such ordinance accompanied, by a map or plat of the city or town, showing the boundaries of all such districts.
*(Acts 1987, No. 87-191, p. 278.)*
##### **§ 11-43-64** Procedural Requirements for Increasing Number of Single-Member Districts in Class 3 Municipalities {#sec-11-43-64 omnilex-key=us-al-statutes--title-11--11-43-64}
Notwithstanding other provision of law, including but not limited to Section 11-43-63, a Class 3 municipality may, by ordinance adopted by a majority of the membership of the council 90 days prior to the regular general municipal election, increase the number of single-member districts (wards) in the municipality up to and including nine members. The ordinance may only be considered after two weeks’ public notice has been given, outlining generally the voting districts under consideration. The ordinance shall provide that candidates for election for a place on the council, where the council has been divided into districts, shall have resided within the boundaries of the district (ward) for which he or she seeks election for at least 30 days immediately preceding the date of the election, and shall continue to reside in the district he or she represents so long as he or she remains a member of the council. All terms of office for city council members shall be concurrent with the mayor of the municipality. Only electors residing within a district shall be entitled to vote for candidates seeking election for the district.
*(Acts 1993, No. 93-634, p. 507, §1.)*
##### **§ 11-43-65** Filling Vacancies on City Council in Class 6 Municipalities {#sec-11-43-65 omnilex-key=us-al-statutes--title-11--11-43-65}
Notwithstanding any other provision of law, a vacancy on the city council of a Class 6 city may be filled by either of the following ways:
(1) The city council may appoint a person to fill the vacancy for the remainder of the unexpired term.
(2) The city council may call a special election to fill the vacancy. A special election called pursuant to this subdivision shall be conducted as provided by the general laws of this state regarding municipal elections. The successor, upon election and certification, shall serve the remainder of the unexpired term.
*(Act 2001-314 p. 405, §1.)*
##### **§ 11-43-65.1** Election and Terms of Mayor and City Council Members in Certain Class 6 Municipalities {#sec-11-43-65.1 omnilex-key=us-al-statutes--title-11--11-43-65.1}
(a) This section shall apply to any Class 6 municipality in which the city government on March 18, 2022, consists of a mayor and five members of the city council elected for staggered terms.
(b) In any Class 6 municipality to which this section applies, the city council of the municipality may adopt an ordinance revising the election dates and terms of the city council and mayor as provided in this section. The ordinance, if enacted, shall provide:
(1) That the members of the city council to be elected at the general municipal election in 2022 shall be elected for terms of five years commencing on the first Monday in November 2022, and successors shall be elected for terms of four years at a general municipal election in 2027, for terms commencing on the first Monday in November 2027, and every four years thereafter.
(2) The terms of the mayor and the members of the city council set to expire in 2024 shall be extended by one year to expire in 2025, and successors to the offices of mayor and city council shall be elected for terms of four years at a general municipal election in 2025, for terms commencing on the first Monday in November 2025, and every four years thereafter.
(c) The provisions of this section are supplemental and shall not be construed to repeal any law not in direct conflict with this section.
*(Act 2022-155, §§1-3.)*
##### **§ 11-43-66** Increases to Compensation for Members of City Council in Class 1 Municipalities {#sec-11-43-66 omnilex-key=us-al-statutes--title-11--11-43-66}
Not less than six months prior to each general election for the election of the city council, the city council of any Class 1 municipality may increase the compensation of the members of the city council to the amount prescribed by the city council payable in equal monthly installments from the general fund of the municipality, which increase in compensation shall be effective on the first day of the new term.
*(Act 2008-407, p. 801, §2.)*
#### **Article 4** Mayor
##### **§ 11-43-80** Powers and Duties Generally; Office; Salary; Employment, Salary, Etc., as Superintendent of Municipal Light, Water, Sewage, Etc., Systems {#sec-11-43-80 omnilex-key=us-al-statutes--title-11--11-43-80}
(a) The mayor shall have the powers and perform the duties provided by this title and by other applicable provisions of law and shall keep an office in the city or town.
(b) The mayor shall receive such salary as the council may prescribe, which must be fixed by the council not less than six months prior to each general municipal election; provided, however, the six-month requirement in this section may be waived when necessary to comply with a mandate by the U.S. Justice Department pursuant to the Voting Rights Act of 1965, as amended, or with an order issued by a state or federal court.
(c) In municipalities which own and operate light and power systems, municipal water systems, municipal sewage systems, and municipal gas systems, one or any of them, may, by resolution of the governing body duly entered in its minutes, require the mayor to act as superintendent of such system or systems and to give so much of his time thereof as the governing body may direct. In any municipality in which a municipal board or municipal public corporation owns and operates a municipal light and power system, municipal water system, municipal sewage system, and municipal gas system, one or any of them, such board or municipal public corporation may, by resolution duly entered in its minutes, employ the mayor to act as superintendent of such system or systems and to give so much of his time thereto as such board or corporation may direct. The mayor, as such superintendent of such system or systems, shall serve as purchasing agent and make all purchases authorized by the governing body, board, or municipal public corporation therefor, and shall keep a check on meter readings and bids for service of the system and see that the collections thereof are made. He shall see that the system or systems are kept in proper repair and operation, shall keep an inventory showing the supplies and equipment on hand for such system or systems, shall keep a full and complete monthly financial statement of all operation costs and receipts and keep a proper inventory of the fiscal assets of such system or systems, and shall handle all such data and information relative to such system or systems available for the governing body, board, or municipal public corporation at such times as it shall require, but not less frequently than once every three months. For his service as superintendent of such system or systems, the mayor shall be paid, in addition to his salary as mayor, such sum as the governing body, board, or municipal corporation shall deem reasonable. The governing body, board, or municipal corporation may, at any time it deems best, dispense with the mayor’s service as superintendent.
(d) The provisions of this section shall be curative and retroactive, and any employment of any mayor as superintendent of any such utility or utilities heretofore made by any such governing body, board, or municipal public corporation, and any such salary heretofore paid to any mayor by any such governing body, board, or municipal corporation for his services as superintendent of such system or systems, is hereby validated.
*(Code 1907, §1178; Acts 1909, No. 200, p. 197; Code 1923, §1894; Acts 1927, No. 608, p. 706; Acts 1931, No. 371, p. 436; Code 1940, T. 37, §440; Acts 1945, No. 315, p. 506; Acts 1955, No. 490, p. 1106; Acts 1956, 1st Ex. Sess., No. 111, p. 168; Acts 1959, No. 613, p. 1505, §1; Acts 1964, 1st Ex. Sess., No. 203, p. 263; Acts 1967, No. 738, p. 1574; Acts 1975, 4th Ex. Sess., No. 146, p. 2865, §1; Acts 1982, 2nd Ex. Sess., No. 82-765, p. 241; Acts 1984, 1st Ex. Sess., No. 84-703, p. 32, §2; Acts 1984, 1st Ex. Sess., No. 84-740, p. 82, §1; Acts 1991, No. 91-581, p. 1069, §1.)*
##### **§ 11-43-81** Designated Chief Executive Officer; Powers of Appointment and Removal {#sec-11-43-81 omnilex-key=us-al-statutes--title-11--11-43-81}
The mayor shall be the chief executive officer, and shall have general supervision and control of all other officers and the affairs of the city or town, except as otherwise provided in this title. He shall have the power to appoint all officers whose appointment is not otherwise provided for by law. He may remove any officer for good cause, except those elected by the people, and fill the vacancy caused thereby, permanently, if the appointment of such officer is made by the mayor, and temporarily, if such officer was elected by the council or appointed with its consent, in either of which last two cases he must report such removal and his reasons therefor to the council at its next regular meeting, when, if the council shall sustain the act of removal by the mayor by a majority vote of those elected to the council, the vacancy shall be filled as provided in this title.
*(Code 1907, §1179; Code 1923, §1895; Code 1940, T. 37, §441.)*
##### **§ 11-43-81.1** Authority of Mayors of Class 1 Municipalities to Appoint Chief Administrative Assistants {#sec-11-43-81.1 omnilex-key=us-al-statutes--title-11--11-43-81.1}
The mayor of any Class 1 municipality or of any municipality having a population of 250,000 or more according to the last or any subsequent federal decennial census of this state is hereby authorized to employ for and on behalf of said municipality an employee to be known as chief administrative assistant to the mayor whose salary shall be fixed and determined by the mayor, but shall not exceed $39,500.00 annually. The chief administrative assistant to the mayor employed hereunder must reside within the municipality during the term of his employment. He must have had at least five years experience in public or private business in an executive or managerial capacity; provided, however, a majority of the council shall have the authority to approve the appointment of a person having different qualifications upon the recommendation of the mayor. Said chief administrative assistant to the mayor shall not be subject to the provisions of any merit system, but should he be a member of such merit system at the time of his appointment, upon termination of such appointment, he shall have the right to return to the same or higher classification under such merit system with full credit for time spent as such chief administrative assistant as if he had continued in his merit system classification. Appointees under this section may become members of any pension system applicable to general city employees provided application for such membership be made to the board or other authority administering such pension system within 30 days of appointment. This section shall not limit the authority of said mayor to appoint other employees of said municipality under the applicable merit or civil service system, or otherwise, where authorized by any other law.
*(Acts 1982, No. 82-484, p. 802.)*
##### **§ 11-43-82** Issuance of Proclamation Closing Shops and Forbidding Sale of Arms, Ammunition, Etc., During Riots, Etc {#sec-11-43-82 omnilex-key=us-al-statutes--title-11--11-43-82}
Whenever any mob, riot, or tumult has occurred or there is reasonable cause to apprehend an occurrence thereof in any city, town, or village or in the vicinity thereof, the mayor shall have power to issue his proclamation ordering the closing of all shops or other places where the business of selling arms, ammunition, dynamite, or other explosives is carried on and forbidding the selling, lending, giving away, bartering, or otherwise disposing of any of such articles until such time as, in his judgment, such occupation may be carried on without danger to the public peace and safety.
*(Code 1896, §2972; Code 1907, §1454; Code 1923, §2310; Code 1940, T. 37, §442.)*
##### **§ 11-43-83** Execution, Etc., of Deeds, Contracts, Bonds, Etc {#sec-11-43-83 omnilex-key=us-al-statutes--title-11--11-43-83}
The mayor shall see that all contracts with the town or city are faithfully kept or performed. He shall execute all deeds and contracts and bonds required in judicial proceedings for and on behalf of the city or town and no sureties shall be required on such bond. He shall perform such other executive duties, in addition to those prescribed in this article, as may be required of him by the council.
*(Code 1907, §1184; Code 1923, §1900; Code 1940, T. 37, §443.)*
##### **§ 11-43-84** Requiring of Reports by Municipal Officers; Statement to Council of Financial Condition of Municipality {#sec-11-43-84 omnilex-key=us-al-statutes--title-11--11-43-84}
The mayor shall require reports to be made to him by any officer of the city or town at such times as he may direct or as may be prescribed by the council, and shall, at least once in every six months, make a statement to the council in writing of the financial condition of the town or city, showing particularly all temporary floating indebtedness and for what created and the steps he proposes to take for the protection of the credit of the city or town.
*(Code 1907, §1180; Code 1923, §1896; Code 1940, T. 37, §444.)*
##### **§ 11-43-85** Municipal Audits and Reports {#sec-11-43-85 omnilex-key=us-al-statutes--title-11--11-43-85}
**AMENDED BY ACT 2026-509, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) This section shall be known and may be cited as the Municipal Audit Clarification Act.
(b)(1) In a municipality with annual expenditures of three hundred thousand dollars ($300,000) or more, the mayor or city manager shall provide for and cause to be made an annual audit of the financial affairs and transactions of all funds and activities of the municipality by an independent public accountant for each fiscal year of the municipality.
(2) Except as provided in subdivision (3), in a municipality with annual expenditures of less than three hundred thousand dollars ($300,000), the mayor or city manager shall provide for and cause to be made a biennial audit of the financial affairs and transactions of all funds and activities of the municipality by an independent public accountant for each fiscal year of the municipality. The audit conducted pursuant to this subdivision shall include each fiscal year since the preceding audit.
(3) In a municipality with annual expenditures of less than one hundred thousand dollars ($100,000), the city council may elect to provide for and direct the mayor or city manager to cause to be made, in lieu of the biennial audit required under subdivision (b)(2), an annual report that complies with procedures established by the Department of Examiners of Public Accounts. The annual report shall be provided to the Department of Examiners of Public Accounts and shall constitute an annual audit report. The report shall include all of the following:
a. Proof and reconciliation of cash.
b. Confirmation of cash balances.
c. A list of all bank balances.
d. A statement of cash receipts and cash disbursements.
e. A statement of compliance with state law.
f. A report of agreed upon procedures.
g. A report of motor fuel excise taxes collected and the distribution and use of those proceeds.
(c) A municipal audit under this section shall be conducted in accordance with generally accepted auditing standards in a format prescribed by the Department of Examiners of Public Accounts.
(d)(1) A municipal audit or annual report under this section shall be provided to the Department of Examiners of Public Accounts in accordance with Section 41-5A-12.1.
(2) In addition to the requirements of subdivision (1), a municipal audit report under subdivision (b)(3) shall be submitted to the city council at its first meeting after completion of the report and shall be spread upon the minutes of the council.
*(Code 1907, §1229; Code 1923, §1953; Code 1940, T. 37, §445; Acts 1961, No. 569, p. 669; Act 2022-345, §1.)*
##### **§ 11-43-86** Compensation of Mayor, Etc., of Class 1 Municipality; Mayor Authorized to Attend Certain Meetings, Etc.; Applicability of Section {#sec-11-43-86 omnilex-key=us-al-statutes--title-11--11-43-86}
(a) The mayor or other chief executive officer of any Class 1 city shall be paid, in addition to the compensation provided by law for the office, the additional sum of $1,833.33 per month, payable in advance on the first day of each month as an allowance for expenses incident to the office of mayor, for which the mayor shall not be required to file an accounting.
(b) All other provisions of law notwithstanding, the mayor may elect in writing to have the expense allowances authorized by subsection (a) and by subsection (a) of Section 11-43-7.1 treated as subject to withholding of any employee contribution required to be paid into the trust fund provided under any pension or retirement system in which the mayor is eligible to participate. The mayor may also elect in writing within 90 days of October 9, 1992, to pay into the pension or retirement system trust fund the required contribution on any expense allowance previously received under this section prior to October 9, 1992, during all or any portion of the three-year period prior to the mayor’s payment election, together with interest at the rate of eight percent per annum thereon computed from the date of receipt of the allowance to the date of payment. If either or both of the elections is made by the mayor, the expense allowances on which employee contributions are paid into retirement plan trust fund shall be considered together with all salaries received by the mayor, from which the required employee contribution was likewise withheld and paid into the retirement trust fund, to determine the amount of any retirement benefits or allowances to which the mayor may be entitled to receive as provided under the pension system upon retirement under the terms of the system.
(c) The mayor or other chief executive officer of any city shall attend as the official representative of the city meetings and conferences in the city to which he or she is invited and which will in the opinion of such mayor or chief executive officer result in the advertisement of the city or any function or undertaking of the city. The mayor or chief executive officer shall be the sole judge of the conferences or meetings he or she should attend.
(d) This section shall not be construed so as to prevent any mayor or other chief executive officer from being reimbursed for actual expenses incurred on or in connection with a trip on city business beyond the corporate limits of the city. However, reimbursements under this subsection shall not accrue against the amounts authorized in subsection (b), nor shall reimbursements of actual expenses incurred beyond the corporate limits of the city be eligible for pension system withholding or be considered in determining pension or retirement benefits or allowances.
*(Acts 1964, 1st Ex. Sess., No. 77, p. 111; Acts 1984, No. 84-618, p. 1256, §1; Acts 1992, 2nd Ex. Sess., No. 92-720, p. 228, §1.)*
##### **§ 11-43-86.1** Increase to Compensation for Mayor of Class 1 Municipality {#sec-11-43-86.1 omnilex-key=us-al-statutes--title-11--11-43-86.1}
Effective beginning the next term of office of the mayor of any Class 1 municipality, the annual salary for the mayor of any Class 1 municipality shall be increased by forty thousand dollars ($40,000) payable in equal monthly installments from the general fund of the municipality.
*(Act 2008-407, p. 801, §3.)*
##### **§ 11-43-87** Filling of Vacancies for Mayor, President of Council, Etc., in Class 3 Municipalities {#sec-11-43-87 omnilex-key=us-al-statutes--title-11--11-43-87}
(a) Unless otherwise provided by local law, in the event of the absence or disability of the mayor of all Class 3 municipalities, the president of the council, or the president pro tempore of the council in case of absence or disability of the president of the council, shall act as mayor pro tempore with the power and authority of the mayor during such time. In the event of a failure or refusal of the president of the council or the president pro tempore of the council to act, the council may appoint one of its members to act as mayor pro tempore with like effect, which appointment shall be entered in the minutes of the council.
(b) Unless otherwise provided by local law, vacancies in the offices of mayor, president, and president pro tempore of the council, and vacancies in the council, of Class 3 municipalities shall be filled as herein provided.
(1) In the event of a vacancy from any cause in the office of mayor occurring with more than one year remaining in the vacated term, the president of the council shall call for a special election to fill the vacancy. Such election shall be set no later than 120 days nor less than 60 days after the occurrence of such vacancy. The person elected at the special election shall serve the remainder of the unexpired term. Such election shall be held in conjunction with a general, special, or constitutional election, if any falls within the period herein specified; otherwise, the special election shall be called on the date set by the council and shall be held in accordance with the provisions of this section and the general laws applicable to such city.
(2) In the event of a vacancy from any cause in the office of mayor occurring with one year or less remaining in the vacated term, the president of the council shall succeed to the office of mayor for the unexpired term, or in the absence or disability of the president of the council, the functions of the vacant office of mayor shall be exercised by the president pro tempore of the council.
(3) In the event of a vacancy in the office of the president of the council, the president pro tempore shall, in like manner, be president of the council for the unexpired term.
(4) In the event of a vacancy in the office of the president pro tempore, the office shall be filled by the council from the membership of the council.
(5) Vacancies of any nature in the council other than those occurring less than 180 days prior to the date of the next regular council election, shall be filled by special election to be held for that purpose, the dates of which shall be set by the council at the next regular meeting or any subsequent meeting of the council after such vacancy occurs, such date to be set no later than 120 nor less than 60 days after the occurrence of such vacancies. Such election shall be held in the same manner and subject to the same procedures as regular council elections and the person so elected shall hold office for the remainder of the unexpired term. Such election shall be held in conjunction with a general, special, or constitutional election, if any falls within the period herein specified; otherwise, a special election shall be called by the mayor on the date set by the council and shall be held in accordance with the provisions of this section and the general laws applicable to such city.
If a vacancy occurs after reapportionment has changed the district boundaries but before the new districts take effect, the old district boundaries will remain in effect for filling that vacancy.
Vacancies where less than 180 days remain of the unexpired term shall be filled by appointment by the council.
(c) Special elections called pursuant to this section shall be conducted as provided by the general laws of this state regarding municipal elections.
(d) The procedures provided in this section shall be used, unless otherwise provided by local law, for any vacancies existing on or after April 3, 1990.
*(Acts 1990, No. 90-221, p. 276, §§1-4.)*
#### **Article 5** Clerk
##### **§ 11-43-100** Attendance at and Preparation of Record of Council Meetings; Custody of Seal and Rules, Ordinances, Etc., of Council {#sec-11-43-100 omnilex-key=us-al-statutes--title-11--11-43-100}
The clerk of all cities and towns shall attend the meetings of the council and keep a record of its proceedings. He shall have the custody of the rules, ordinances, and resolutions of the council and shall keep a record of them when adopted by the council. He shall also have the custody of the city or town seal. During the absence of the clerk, the council may appoint some person to perform his duties.
*(Code 1907, §1199; Code 1923, §1915; Code 1940, T. 37, §421.)*
##### **§ 11-43-101** Auditing, Recordation, Etc., of Claims, Etc., Against Municipality and Issuance of Warrants Therefor {#sec-11-43-101 omnilex-key=us-al-statutes--title-11--11-43-101}
The clerk shall submit all claims, requisitions, and demands against the city or town to the council at its next regular meeting for its approval, unless already provided for by ordinance or resolution, and upon its being approved by the council and the passage of ordinances carrying it into effect when necessary, said clerk shall issue warrant on the city or town treasurer for the amount of such claim, requisition, or demand. Before issuing any warrant upon the treasurer, the clerk shall audit the claim, certify to its correctness, and keep a record thereof, which record shall also show to what department or departments it is chargeable.
*(Code 1907, §1200; Code 1923, §1916; Code 1940, T. 37, §422.)*
##### **§ 11-43-102** Maintenance, Etc., of Municipal Books and Accounts {#sec-11-43-102 omnilex-key=us-al-statutes--title-11--11-43-102}
The clerk shall keep a convenient set of books in which there shall be kept a separate account with each collecting officer of the city or town. He shall keep a separate account with each department for which a separate appropriation shall have been made, crediting the amount of the appropriation and charging warrants drawn against the same. He shall keep such other accounts as may be necessary to show the financial condition of the municipality and of each department thereof at all times. He shall not allow the amount appropriated for any item of expense to be drawn on for any other purpose. He shall not allow any warrant to be drawn unless sufficient funds actually be in the treasury to the credit of the fund upon which such warrant is drawn unless specifically authorized by an ordinance.
*(Code 1907, §1201; Code 1923, §1917; Code 1940, T. 37, §423.)*
##### **§ 11-43-103** Issuance of Licenses; Devolution of Duties Upon Auditor {#sec-11-43-103 omnilex-key=us-al-statutes--title-11--11-43-103}
The clerk shall issue all licenses unless otherwise provided by ordinance, receiving the money therefor, and pay the same over instanter to the city treasurer. Any part of the duties of the clerk may devolve upon the auditor by ordinance.
*(Code 1907, §1202; Code 1923, §1918; Code 1940, T. 37, §424.)*
##### **§ 11-43-104** Additional Duties; Bond {#sec-11-43-104 omnilex-key=us-al-statutes--title-11--11-43-104}
The clerk, in addition to these enumerated duties, shall perform any and all duties that may be required of him by ordinance or resolution. He shall give bond, with sureties, to be approved by the mayor, in such sum as the council may prescribe.
*(Code 1907, §1203; Code 1923, §1919; Code 1940, T. 37, §425.)*
#### **Article 6** Treasurer
##### **§ 11-43-120** Bond; Duties Generally; Payment of Warrants; Reports and Statements to Council {#sec-11-43-120 omnilex-key=us-al-statutes--title-11--11-43-120}
The treasurer shall give bond in such sum as the council may prescribe for the faithful performance of his duties and the safe custody of the funds. He shall be the custodian of the funds of the municipality, keeping an accurate record of the funds of the several departments, and shall keep books showing accurately the financial condition of the city. He shall pay out money only upon warrants drawn by the officers authorized by the applicable provisions of this title to draw warrants upon the treasurer, and when paid shall keep safely the warrants so drawn. Such warrants, approved by the mayor or such other person as the council may designate, except as otherwise provided in this section, shall be drawn by the clerk on the treasurer, the warrant showing to what department the same is to be charged.
In cities of 6,000 or more, such warrants shall be drawn by the clerk on the treasurer, the warrants showing to what department the same is to be charged, but the council may authorize the clerk to draw such warrants on the treasurer without the approval of the mayor; except, that in all instances the approval of the mayor shall have first been inscribed upon the voucher for the payment of which such warrant is drawn. No warrant shall be drawn except by authority of law or ordinance. No expenditure shall be allowed unless the same shall have been authorized by ordinance or by the mayor and is carefully itemized and shall have been examined, audited, and approved. The treasurer shall keep a record of all warrants presented for payment which are unpaid for want of funds and shall pay them when funds are available in the order of their presentation.
He shall make report once a month or oftener if required by the council of the financial condition of the account of each department authorized to draw on the treasurer and shall make a quarterly statement, under oath, of the financial condition of the city or town to the council.
*(Code 1907, §1204; Acts 1909, No. 200, p. 197; Code 1923, §1920; Code 1940, T. 37, §446; Acts 1951, No. 993, p. 1668.)*
##### **§ 11-43-121** Payment of Interest Upon Warrants Not Paid for Lack of Funds; Additional Duties {#sec-11-43-121 omnilex-key=us-al-statutes--title-11--11-43-121}
If no interest is stipulated to be paid on warrants drawn upon the treasurer and not paid for want of funds, then the legal rate shall be allowed from the time of presentation, which time shall be endorsed by the treasurer on the warrant with his signature, but no interest shall be paid on such warrants after notice has been posted in the office of the treasurer or in the office of the mayor that such warrants will be paid on demand. The treasurer shall perform such other duties as may be required of him by the council or by law.
*(Code 1907, §1205; Code 1923, §1921; Code 1940, T. 37, §447; Acts 1953, No. 853, p. 1144.)*
##### **§ 11-43-122** Public Depositories; Liability for Loss {#sec-11-43-122 omnilex-key=us-al-statutes--title-11--11-43-122}
The council may direct, by ordinance or resolution, one or more qualified public depositories pursuant to Chapter 14A of Title 41 where the treasurer shall deposit public money and may require interest to be paid thereon and security to be given by the depository, but, as to deposits made under the authority of an ordinance of the council, neither the treasurer nor his bondsmen if the treasurer has exercised due care shall be further liable for any loss occasioned thereby.
*(Code 1907, §1206; Code 1923, §1922; Code 1940, T. 37, §448; Act 2000-748, p. 1669, §2.)*
##### **§ 11-43-123** Moneys Due Municipalities, Etc., to Be Paid to Treasurer {#sec-11-43-123 omnilex-key=us-al-statutes--title-11--11-43-123}
The council shall provide by laws that all moneys due the municipality or any department thereof shall be paid directly to the treasurer and no moneys shall be collected by departments or officials therein as a part of the duties of the department, except as provided in this title.
*(Code 1907, §1207; Code 1923, §1923; Code 1940, T. 37, §449.)*
#### **Article 7** Fire Department
##### **§ 11-43-140** Authorized; Management and Control {#sec-11-43-140 omnilex-key=us-al-statutes--title-11--11-43-140}
Cities and towns may maintain and operate a volunteer or paid fire department and may do any and all things necessary to secure efficient service. The council may delegate to commissioners by ordinance the power to control and manage such fire department under such rules and regulations as the commissioners or the council may prescribe.
*(Code 1907, §1265; Code 1923, §2013; Code 1940, T. 37, §450.)*
##### **§ 11-43-141** Operation, Etc., Beyond Corporate Limits and Police Jurisdiction - Emergencies; Liabilities, Exemptions, Etc {#sec-11-43-141 omnilex-key=us-al-statutes--title-11--11-43-141}
Whenever the necessity arises during any emergency resulting from fire or other public disaster, the firemen of any city or town may, together with all necessary equipment, lawfully go or be sent beyond the corporate limits and police jurisdiction of such city or town to any point within the State of Alabama to assist in meeting such emergency.
In such event the acts performed for such purpose by such firemen and the expenditures made for such purpose by such city or town shall be deemed conclusively to be for a public and governmental purpose and all of the immunities from liability enjoyed by a city or town when acting through its firemen for a public or governmental purpose within its corporate limits and police jurisdiction shall be enjoyed by it to the same extent when such city or town is so acting under this section or under other lawful authority beyond its corporate limits and police jurisdiction.
The firemen of any city or town when acting under this section or under other lawful authority beyond the corporate limits and police jurisdiction of such city or town shall have all of the immunities from liability and exemptions from laws, ordinances, and regulations and shall have all of the pension, relief, disability, workmen’s compensation, and other benefits enjoyed by them while performing their respective duties within the corporate limits and police jurisdiction of such city or town.
*(Acts 1955, No. 558, p. 1219, §1.)*
##### **§ 11-43-142** Operation, Etc., Beyond Corporate Limits and Police Jurisdiction - Contracts with Municipalities, Counties, Manufacturing or Industrial Concerns, Etc.; Liability for Injuries {#sec-11-43-142 omnilex-key=us-al-statutes--title-11--11-43-142}
The governing body of any city or town may, in its discretion, authorize or require the fire department thereof to render aid in cases of fire occurring beyond their corporate limits and police jurisdiction, and may prescribe the conditions on which such aid may be rendered and may enter into a contract or contracts with other cities or towns, with counties or county boards, manufacturing or industrial concerns, or residential or business areas for rendering aid in fire protection in such places on such terms as may be agreed upon by such governing body and the governing body of such city or town, county or county boards, or the management of such manufacturing or industrial concerns or the residents of such residential or business areas, and when the fire department of any city or town is operating under such permission or contract or contracts on any call beyond the corporate limits and police jurisdiction of the city or town, it shall be deemed to be operating in a governmental capacity and subject only to such liability for injuries as it would be if it were operating within the corporate limits and police jurisdiction of such city or town.
*(Acts 1955, No. 558, p. 1219, §2.)*
##### **§ 11-43-143** Municipal or State Firefighters or Firemen Not to Strike, Assert Right to Strike, Etc.; Rights to Join Labor Organizations, Etc {#sec-11-43-143 omnilex-key=us-al-statutes--title-11--11-43-143}
(a) No person shall accept or hold any commission or employment as a firefighter or fireman in the service of the state or of any municipality in the state who participates in any strike or asserts the right to strike against the state or any municipality of the state, or be a member of an organization of employees that asserts the right to strike against the state or any municipality in the state knowing that such organization asserts such right.
(b) All firefighters serving the state or any municipality in the state either as paid firemen or as volunteer firefighters who comply with the provisions of this section are assured the right and freedom of association, self-organization, and the right to join or to continue as members of any employee or labor organization which complies with this section, and shall have the right to present proposals relative to salaries and other conditions of employment by representatives of their own choosing. No such person shall be discharged or discriminated against because of his exercise of such right, nor shall any person or group of persons, directly or indirectly, by intimidation or coercion compel or attempt to compel any firefighter or fireman to join or refrain from joining a labor organization.
*(Acts 1967, No. 229, p. 598.)*
##### **§ 11-43-144** Compensation for Death or Disability of Firefighters from Occupational Diseases {#sec-11-43-144 omnilex-key=us-al-statutes--title-11--11-43-144}
**THIS ACT WAS AMENDED BY ACT 2026-353, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR AMENDED LANGUAGE.**
(a) As used in this section the following words and terms shall have the meanings ascribed to them herein unless a contrary meaning is indicated by the context:
(1) BENEFIT. Any monetary allowance payable by a city or from a pension system established for the firemen of a city to a firefighter on account of his or her disability or to his or her dependents on account of his or her death, irrespective of whether the same is payable under a pension law of the state or under some other law of the state.
(2) CITY. Any municipality of the state, regardless of its population.
(3) DISABILITY. Disability to perform duties as a firefighter.
(4) FIREFIGHTER. A person employed as a firefighter by a city.
(5) FIREFIGHTER’S OCCUPATIONAL DISEASE. Any condition or impairment of health caused by any of the following:
a. Hypertension.
b. Heart disease.
c. Respiratory disease.
d. Cancer that manifests itself in a firefighter during the period in which the firefighter is in the service of the city, provided the firefighter demonstrates that he or she was exposed, while in the employ of the city, to a known carcinogen that is reasonably linked to the disabling cancer, and the cancer shall be presumed to arise out of and in the course of the firefighter’s employment, unless the city demonstrates by a preponderance of the evidence that the cancer was caused by some other means.
e. AIDS that manifests itself in a firefighter during the period in which the firefighter is in the service of the city, provided the firefighter demonstrates that he or she was exposed to AIDS while in the line and scope of his or her employment with the city.
f. Hepatitis that manifests itself in a firefighter during the period in which the firefighter is in the service of the city, provided the firefighter demonstrates that he or she was exposed to hepatitis while in the line and scope of his or her employment with the city.
(b)(1) This section shall apply to firefighters who, upon entering the service of the city as firefighters, have successfully passed a physical examination which failed to reveal any evidence of a firefighter’s occupational disease and who have completed at least three years’ service as firefighters.
(2) If a physical examination was not required at the time of entry into service, a firefighter who has completed at least three years’ continuous service as a firefighter next preceding September 8, 1967, shall be deemed eligible for benefits under this section.
(c)(1) If a firefighter who qualifies for benefits under this section suffers disability as a result of a firefighter’s occupational disease, his or her disability shall be compensable the same as any service-connected disability under any law that provides benefits for firefighters of the city injured in the line of duty. If a firefighter, who qualifies for benefits under this section, dies as the result of a firefighter’s occupational disease, his or her death shall be compensable to the same extent as the death of a firefighter killed in the line of duty, and shall be considered to have been killed in the line of duty for purposes of Sections 36-30-1 to 36-30-7, inclusive.
(2) Notwithstanding subdivision (1), a firefighter who dies of cancer, as provided in paragraph (a)(5)d., within 10 years of the firefighter’s last date of employment shall be considered to have been killed in the line of duty for purposes of Sections 36-30-1 to 36-30-7, inclusive.
(d) In the case of cancer, heart disease, hypertension, and respiratory disease, the city must prove by a preponderance of the evidence that the condition was caused by some means other than the occupation to disqualify the firefighter from benefits.
*(Acts 1967, No. 570, p. 1323; Acts 1990, No. 90-303, p. 414; Acts 1994, No. 94-250, p. 465, §1; Acts 1995, No. 95-547, p. 1148, §1; Act 2004-640, p. 1466, §1; Act 2021-491, §1.)*
#### **Article 8** Removal or Impeachment of Municipal Officers
##### **§ 11-43-160** Removal {#sec-11-43-160 omnilex-key=us-al-statutes--title-11--11-43-160}
(a)(1) Any person appointed to office in any city or town may, for cause, after a hearing, be removed by the officer making the appointment.
(2) The council of the municipality may remove, by a two-thirds vote of all those elected to the council, any person in the several departments for incompetency, malfeasance, misfeasance, or nonfeasance in office and for conduct detrimental to good order or discipline, including habitual neglect of duty.
(b) Notwithstanding subsection (a), in municipalities having a population of less than 12,000 inhabitants, according to the last or any subsequent federal census, the mayor may vote on the removal of any person appointed to office in the municipality pursuant to subsection (a) and the mayor shall be considered as a member of the council in determining whether there is a two-thirds vote of the council for the removal of the officer.
*(Code 1907, §1172; Code 1923, §1888; Code 1940, T. 37, §451; Act 2009-402, p. 729, §1.)*
##### **§ 11-43-161** Grounds for Impeachment - Acceptance of Employment from Public Service Corporation; Financial Dealings with Municipality, Etc {#sec-11-43-161 omnilex-key=us-al-statutes--title-11--11-43-161}
No mayor or alderman of any municipality shall accept employment after his election and during his term of office from any public service company or corporation operating under any franchise granted by the municipality, and any person’s accepting such employment after his election shall constitute grounds of impeachment therefor.
Any mayor or alderman or other member of the governing body of any municipality who shall have any private or personal financial dealings with, for, or on account of the municipality, except such as are imposed by his official position, or who shall render any service or do any work or supply any commodity for financial compensation, payable out of the funds of the municipality, shall be guilty of a misdemeanor and the doing of such act shall constitute grounds for impeachment of such person.
*(Code 1907, §1175; Code 1923, §1891; Code 1940, T. 37, §452.)*
##### **§ 11-43-162** Grounds for Impeachment - Misapplication of Funds from Special Tax {#sec-11-43-162 omnilex-key=us-al-statutes--title-11--11-43-162}
Any member of the council who shall vote in favor of or any mayor who shall approve any resolution or ordinance to apply the funds or any part thereof derived from the special tax provided for in article 1 of chapter 81 of this title, to any other purpose than to the payment of such interest and principal of such bonds may be impeached in the manner provided in this article, and shall be guilty of a misdemeanor and, upon conviction, shall be imprisoned for not less than 30 days and for not more than six months and may be fined a sum of not less than $100.00 nor more than $500.00.
*(Code 1907, §1176; Code 1923, §1892; Code 1940, T. 37, §453.)*
##### **§ 11-43-163** Powers of Council or Committee as to Witnesses, Etc.; Secretary of Committee {#sec-11-43-163 omnilex-key=us-al-statutes--title-11--11-43-163}
The council or a committee thereof duly authorized by resolution may summon witnesses and compel their attendance and compel witnesses to testify and produce books and papers and may punish them by imprisonment, not exceeding 10 days, for failure to attend or refusal to testify or produce books or papers. The presiding officer of the council or of the committee may administer oaths to witnesses. During a session of the council or of a committee any person who is guilty of disorderly or contemptuous behavior in the presence of the council or the committee, may be punished by the council or committee by arrest and imprisonment not exceeding 24 hours. A committee may require any officer of the police force or any patrolman to act as secretary of such committee.
*(Code 1907, §1177; Code 1923, §1893; Code 1940, T. 37, §454.)*
#### **Article 9** Civil Service Merit Systems for Law Enforcement Officers
##### **§ 11-43-180** Purpose of Article {#sec-11-43-180 omnilex-key=us-al-statutes--title-11--11-43-180}
In recognition of the inefficiencies, inadequacies, and inconsistencies in law enforcement programs and practices of many municipalities of this state and in recognition of the need for fair and impartial enforcement of the laws for the protection of the person and property of the people of this state and for the promotion of the public health and welfare, this article is enacted to assure that every municipality in this state shall be provided an acceptable civil service merit system governing the appointment, removal, tenure, and official conduct of its law enforcement officers.
*(Acts 1976, No. 372, p. 471, §1.)*
##### **§ 11-43-181** “Law Enforcement Officer” Defined {#sec-11-43-181 omnilex-key=us-al-statutes--title-11--11-43-181}
As used in this article, the term “law enforcement officer” shall mean and include a policeman, policewoman, and other official who has authority to make arrests and who is employed by any municipality in the state as a permanent and regular employee for and subject to law enforcement duties, but it does not include any person elected by popular vote.
*(Acts 1976, No. 372, p. 471, §2.)*
##### **§ 11-43-182** Requirement as to Establishment of Merit Systems by Municipalities Generally {#sec-11-43-182 omnilex-key=us-al-statutes--title-11--11-43-182}
Every municipality shall establish, separately or jointly, a civil service merit system governing the appointment, removal, tenure, and official conduct of municipal law enforcement officers.
*(Acts 1976, No. 372, p. 471, §3.)*
##### **§ 11-43-183** Agreements for Furnishing by State Personnel Department of Services and Facilities for Administration of Merit Systems for Law Enforcement Officers of Municipalities - Authorized {#sec-11-43-183 omnilex-key=us-al-statutes--title-11--11-43-183}
Any municipality failing to establish such a civil service merit system for said law enforcement officers within one year after August 23, 1976, shall, subject to approval of the State Personnel Board, enter into an agreement with the state Director of Personnel to furnish the services and facilities of the State Personnel Department to such municipality in the administration of its law enforcement officers on merit principals. Any such municipality of the state is hereby authorized to enter into such an agreement.
*(Acts 1976, No. 372, p. 471, §4.)*
##### **§ 11-43-184** Agreements for Furnishing by State Personnel Department of Services and Facilities for Administration of Merit Systems for Law Enforcement Officers of Municipalities - Reimbursement of State for Cost of Services and Facilities Furnished; Disposition of Funds Received by State as Reimbursements {#sec-11-43-184 omnilex-key=us-al-statutes--title-11--11-43-184}
Every such agreement with the state Director of Personnel to furnish the services and facilities of the State Personnel Department to such municipalities shall provide for the reimbursement to the state of the reasonable cost of the services and facilities furnished as determined by the state Director of Personnel.
Funds obtained as reimbursement for such services shall be deposited into the accounts of the State Personnel Department and may be expended to help defray the expenses of said department.
*(Acts 1976, No. 372, p. 471, §6.)*
##### **§ 11-43-185** Agreements for Furnishing by State Personnel Department of Services and Facilities for Administration of Merit Systems for Law Enforcement Officers of Municipalities - Classification of Municipal Law Enforcement Officers and Applicability of State Merit System Rules and Regulations {#sec-11-43-185 omnilex-key=us-al-statutes--title-11--11-43-185}
Each law enforcement officer in the civil service of any municipality at the time such municipality enters into such an agreement with the state Director of Personnel under the provisions of this article shall, upon the effective date of such agreement, be classified to the nearest classification of their present work assignment and shall thereafter be governed by the state Merit System rules and regulations, the same as any other law enforcement officer in the service of the state.
*(Acts 1976, No. 372, p. 471, §5.)*
##### **§ 11-43-186** Determination of Salaries to Be Paid Classifications Within Merit Systems {#sec-11-43-186 omnilex-key=us-al-statutes--title-11--11-43-186}
The salaries to be paid in each classification established by the merit system shall be determined by the governing body of the municipality.
*(Acts 1976, No. 372, p. 471, §9.)*
##### **§ 11-43-187** Exemption of Chief of Police and Deputy Chief from Provisions of Merit Systems {#sec-11-43-187 omnilex-key=us-al-statutes--title-11--11-43-187}
The merit system may exempt from its provisions the chief of police and the deputy chief.
*(Acts 1976, No. 372, p. 471, §10.)*
##### **§ 11-43-188** Provision in Merit Systems for Probationary Periods of Employment {#sec-11-43-188 omnilex-key=us-al-statutes--title-11--11-43-188}
The merit system adopted may provide for a probationary period of employment of up to one year during which time said officer shall not obtain any rights under said system.
*(Acts 1976, No. 372, p. 471, §11.)*
##### **§ 11-43-189** Appointment of Members of Personnel Board by Representatives and Senators in District {#sec-11-43-189 omnilex-key=us-al-statutes--title-11--11-43-189}
Each merit system created under this article shall have the option of having at least one member of its personnel board appointed by the Representatives and Senators in that district.
*(Acts 1976, No. 372, p. 471, §12.)*
##### **§ 11-43-190** Applicability of Provisions of Article {#sec-11-43-190 omnilex-key=us-al-statutes--title-11--11-43-190}
(a) This article shall not apply to any municipality with an established civil service or merit system already in existence on August 23, 1976, so long as the said civil service or merit system continues in full force and effect.
(b) This article shall not apply to any municipality having a population of less than 5,000 according to the most recent federal decennial census.
*(Acts 1976, No. 372, p. 471, §§7, 8.)*
#### **Article 10** Reserve Law Enforcement Officers
##### **§ 11-43-210** Reserve Law Enforcement Officers; Appointment by City or Town; Qualifications; Powers {#sec-11-43-210 omnilex-key=us-al-statutes--title-11--11-43-210}
(a) The appointing authority of any city or town in the State of Alabama may appoint, with or without compensation, one or more reserve law enforcement officers to assist or aid full-time or part-time certified law enforcement officers as defined by this section. Reserve law enforcement officers appointed pursuant to this section shall serve at the pleasure of the municipal appointing authority.
(b) Any person desiring appointment as a reserve law enforcement officer after April 12, 1990, shall submit a written application to the municipal appointing authority certifying that the applicant is 19 years of age or older, of good moral character and reputation, and that he or she has never been convicted of a felony or of a misdemeanor involving force, violence, or moral turpitude. The applicant must also consent in writing to a fingerprint and background search.
(c) For the purposes of this section, the term “certified law enforcement officer” shall mean a municipal police officer who has completed the training requirements of the Alabama Peace Officers’ Standards and Training Commission as set out in Article 3, Chapter 21, Title 36. The functions of a reserve law enforcement officer appointed pursuant to this section shall be confined to the following:
(1) Patrol operation performed for the purpose of detection, prevention, and suppression of crime or enforcement of the traffic or highway laws of the state, provided the reserve law enforcement officer acts at all times under the direct control and supervision of a certified law enforcement officer.
(2) Traffic direction and control may be performed without direct supervision, provided, however, that supervisory control is exercised by a certified law enforcement officer whose total span of control would be considered within reasonable limits.
(3) Reserve officers may render crowd control assistance at public gatherings or municipal functions as directed by the municipality provided supervisory control will be exercised by a certified law enforcement officer whose span of control would be considered within reasonable limits.
(d) No reserve law enforcement officer shall have authority to exercise any power of arrest unless he or she has completed the training requirements of the Alabama Peace Officers’ Standards and Training Commission as set out in Article 3, Chapter 21, Title 36.
(e) No reserve law enforcement officer shall carry any firearm unless he or she has obtained a properly issued permit for such firearm and the appointing authority has approved his or her use of such firearm. Reserve law enforcement officers may use such firearms only to the extent permitted by properly promulgated regulations of the appointing authority.
*(Acts 1990, No. 90-302, p. 412.)*
#### **Article 11** Due Process for Municipal Law Enforcement Officers
##### **§ 11-43-230** Predisciplinary Hearing Prior to Suspension or Termination; Procedures; Postdisciplinary Hearing {#sec-11-43-230 omnilex-key=us-al-statutes--title-11--11-43-230}
(a) Every municipality shall provide a predisciplinary hearing prior to the suspension or termination of its law enforcement officers, provided nothing herein shall preclude a municipality from placing a law enforcement officer on leave with pay until the person or body holding the hearing has made its decision in the matter.
(b) Every municipality shall establish written due process procedures applicable to the predisciplinary hearing. At a minimum, this due process shall consist of written notice to the officer of the reasons for the termination or suspension. This notice shall be issued by the person or persons with authority to suspend or terminate the law enforcement officer. The notice shall inform the officer that he or she has 10 days to request, in writing, a hearing before the person or persons with authority to suspend or terminate. If the officer fails to request the hearing within 10 days from receiving the notice, the right to any hearing shall be deemed waived.
(c) The hearing shall be conducted by an impartial officer or body with authority to suspend or terminate the law enforcement officer. If the hearing is before the municipal governing body, the hearing may be conducted in an executive session, provided that any vote for or against suspension or termination shall occur in an open session.
(d) The officer has the right to appear at this hearing in person or by representative and to address charges against him or her. If the officer has a representative, the officer shall also be present at the hearing.
(e) A municipality may also hold a separate postdisciplinary hearing on the suspension or termination of the law enforcement officer. If the municipality holds a separate postdisciplinary hearing on the matter, the officer may present evidence in his or her behalf and question witnesses who testified against him or her.
(f) Nothing shall prohibit a municipality from allowing due process which exceeds the requirements in this section.
(g) The rules of evidence and the rules of discovery shall not apply to either of the hearings held pursuant to this article.
*(Act 2001-463, p. 617, §1.)*
##### **§ 11-43-231** “Law Enforcement Officer” Defined {#sec-11-43-231 omnilex-key=us-al-statutes--title-11--11-43-231}
As used in this article, the term “law enforcement officer” shall mean an official who is certified by the Alabama Peace Officers’ Standards and Training Commission who has authority to make arrests and who is employed by any municipality in the state as a permanent and regular employee with law enforcement duties, including police chiefs and deputy police chiefs. The term does not include any person elected by popular vote, any person who is serving a probationary period of employment, or any person whose term of office has expired.
*(Act 2001-463, p. 617, §2.)*
##### **§ 11-43-232** Applicability to Certain Municipalities {#sec-11-43-232 omnilex-key=us-al-statutes--title-11--11-43-232}
This article shall not apply to any municipality with an established due process procedure for law enforcement officers on July 14, 2001, so long as the municipality continues to have a due process procedure in full force and effect.
*(Act 2001-463, p. 617, §3.)*
#### **Article 12** Class 8 Municipal Officers Designate Representative
##### **§ 11-43-250** Elected Official of Class 8 Municipality Authorized to Appoint Designee to Serve on State or Local Agency, Board, Etc {#sec-11-43-250 omnilex-key=us-al-statutes--title-11--11-43-250}
(a) In Class 8 municipalities, an elected official of the municipality who is an ex officio member of a state or local agency, board, commission, or other entity pursuant to law, may designate a person to serve in his or her place, who shall assume all duties of the elected official relating to the entity, including all voting rights and who shall be counted as a member for the purpose of conducting business. Provided, that the elected official may not appoint a convicted felon to serve in his or her place unless that person has had his or her civil rights restored. A designee appointed by the mayor to serve in his or her place is not required to be a resident of the municipality where the mayor serves.
(b) A designee under subsection (a) shall serve at the pleasure of the elected official and for the duration of the elected official’s term of office and an elected official may withdraw a designee’s appointment and appoint a new designee at any time.
(c) This section applies to a general or local law enacted prior to, on, or after May 25, 2017.
*(Act 2017-362, §1.)*
### **Chapter 43A** Council-Manager Form of Government
#### **Article 1** Council-Manager Act of 1982
##### **§ 11-43A-1** Applicability of Chapter to Classes of Municipalities; Short Title {#sec-11-43a-1 omnilex-key=us-al-statutes--title-11--11-43A-1}
Any Class 2, 3, 4, 5, 6, 7, or 8 municipality in the State of Alabama may adopt the council-manager form of government by proceeding in the manner hereafter in this article provided. This article shall be known as the “Council-Manager Act of 1982.”
*(Acts 1982, No. 82-517, p. 851, §1.)*
##### **§ 11-43A-1.1** Organization of Council-Manager Form of Government; Election of Council Members {#sec-11-43a-1.1 omnilex-key=us-al-statutes--title-11--11-43A-1.1}
Notwithstanding any other provision of this article, after the judge of probate has certified to the mayor or other chief executive officer of the municipality the sufficiency of a petition asking that the question of the adoption of the council-manager form of government be submitted to the qualified voters of the municipality, any Class 4, 5, 6, 7, or 8 municipality having the mayor-council form of government, by resolution of the council, may provide for the council in a municipality proposing to adopt the council-manager form of government to be composed of either five or seven members as follows: One member shall be the mayor elected at large, who shall be a voting member of the council and either four or six members shall be council members elected either at large or from single-member districts, as the resolution shall provide. If a municipality has single-member districts for the election of council members when the council-manager form of government is adopted in the municipality, the municipality shall continue with either four or six council members elected from single-member districts and the mayor shall be elected at large. The question on the ballot shall indicate the composition of the mayor and council should the council-manager form of government be adopted. If the adoption of the council-manager form of government is approved as provided in Section 11-43A-6, the municipality shall be governed by this article, except to the extent of any direct conflict in this article concerning the number and election of members of the council as provided in this section.
*(Act 2018-569, §1; Act 2019-360, §1.)*
##### **§ 11-43A-2** Petition to Probate Judge for Election as to Adoption of Council-Manager Form of Government; Examination of Petition and Certification to Mayor {#sec-11-43a-2 omnilex-key=us-al-statutes--title-11--11-43A-2}
The filing of a petition signed by 10 percent or more of the number of qualified voters who voted in the last general municipal election held in such municipality, asking that the question of the adoption of the council-manager form of government for such municipality be submitted to the qualified voters thereof, with the judge of probate of the county in which such municipality is located, shall mandatorily require an election to be held as herein provided. Whenever such a petition purporting to be signed by at least 10 percent of the number of qualified voters who voted in the last general municipal election held in such municipality shall be presented to such judge of probate, he shall examine such petition and determine whether or not the same is signed by at least 10 percent of the number of qualified voters who voted in the last general municipal election held in such municipality, and if such petition is signed by the requisite number of voters to require such an election, he shall within 15 days from the receipt of such petition certify such fact to the mayor or other chief executive officer of the municipality for which such election is so petitioned, and the certificate of the judge of probate as to the sufficiency of said petition shall be final.
*(Acts 1982, No. 82-517, p. 851, §2.)*
##### **§ 11-43A-3** Submission of Question for Election; Proclamation of Mayor; Order of Judge of Probate {#sec-11-43a-3 omnilex-key=us-al-statutes--title-11--11-43A-3}
The mayor or other chief executive officer of such municipality shall immediately upon receipt of such certificate from the judge of probate, by proclamation, submit the question of the adoption of the council-manager form of government for such municipality under this article, at a special election to be held at a time specified in such proclamation, not less than 40 days nor more than 90 days after the receipt of said certificate from said judge of probate, unless a general election is to be held within 120 days after receipt of such certificate in which event the special election herein provided for may be held at the same time as such general election. Should the election not be called by proclamation within 10 days after receipt of the certificate, the judge of probate shall call such election by order at a time specified therein but not less than 40 days and not more than 90 days after the receipt by said mayor, or other executive officer of the said certificate of the judge of probate, unless a general election is to be held within 120 days after receipt of such certificate, in which event the special election herein provided for shall be held at the same time as such general election.
*(Acts 1982, No. 82-517, p. 851, §3.)*
##### **§ 11-43A-3.1** Election in Class 6 Municipalities - Time, Procedure, Etc {#sec-11-43a-3.1 omnilex-key=us-al-statutes--title-11--11-43A-3.1}
Any law to the contrary notwithstanding, an election shall be held in every Class 6 municipality wherein the municipal governing body has elected to have a nine-member council, at the same time that the election for members of the Alabama legislature is held in 1983; and the question submitted at such election shall be: “shall the council-manager form of government, provided in the Council-Manager Act of 1982, with the change in the form of government of such municipality to become operative on the first Monday in October 1986, be adopted for the municipality of _____?” The election shall be held and in all things governed as nearly as possible by the provisions regulating elections on the question the adoption of the council-manager form of government provided in the Council-Manager Act of 1982, except that no petition of any of the qualified voters of the municipality need be filed and the mayor of any city in which such election is hereby required shall within 10 days after July 26, 1983, by proclamation, submit the question of the adoption of the council-manager plan at a special election to be held at the same time as the election held in 1983 for members of the Alabama legislature. Should the election not be called by proclamation of the mayor within said 10-day period, the judge of probate shall call such election by order.
*(Acts 1983, No. 83-621, p. 964, §2.)*
##### **§ 11-43A-3.2** Election in Class 6 Municipalities - Provisions to Supersede Other Laws in 1983 {#sec-11-43a-3.2 omnilex-key=us-al-statutes--title-11--11-43A-3.2}
The provisions of section 11-43A-3.1, authorizing an election in certain Class 6 municipalities in 1983 on the question of the adoption of the council-manager form of government provided in the Council-Manager Act of 1982 and providing for the effective date of such change if the council-manager form of government is approved, shall supersede all other laws in conflict herewith only for the purpose of holding the election in 1983 and making the change in the form of government approved at such election; when such purposes have been effectuated it shall have no further force or effect.
*(Acts 1983, No. 83-621, p. 964, §3.)*
##### **§ 11-43A-3.3** Election in Class 7 Municipality - Adoption of Council-Manager Form of Government {#sec-11-43a-3.3 omnilex-key=us-al-statutes--title-11--11-43A-3.3}
(a)(1) In addition to any mayor-council form of government authorized in this chapter, the governing body of a Class 7 municipality may elect by resolution to adopt a council-manager form of government comprised of a mayor and four council members elected at-large. No petition of qualified electors is required to initiate such an election by the governing body pursuant to this section. If the governing body elects to adopt a council-manager form of government pursuant to this section, an election on the question shall be submitted to the qualified electors of the municipality. The governing body shall hold the election before January 1, 2011. The question submitted at the election shall be:
“Shall the municipality of ______ adopt a council-manager form of government consisting of a mayor and four council members elected in an at-large election to become operative on the first Monday in November 2012?”
(2) The governing body of the municipality shall call the election and the election shall be conducted pursuant to general municipal election laws.
(b) The mayor of any Class 7 municipality in which an election pursuant to this section is required, by proclamation, within 10 days of the adoption of the resolution by the governing body, shall call an election on the question of the adoption of the council-manager form of government pursuant to this section. The election shall be held before January 1, 2011. If the mayor fails, by proclamation, to call the election within the 10-day period, the majority of the council, by resolution, shall call the election.
(c) A change in the form of government adopted pursuant to this section shall become effective on the first Monday in November 2012.
(d) This section supersedes all other laws in conflict only for the purpose of holding the election in 2010 and making the change in the form of government approved at the election. When these purposes have been effectuated, this section shall have no further force or effect.
*(Act 2010-544, p. 951, §1.)*
##### **§ 11-43A-4** Subsequent Elections Not to Be Held Within Two Years of Preceding Election {#sec-11-43a-4 omnilex-key=us-al-statutes--title-11--11-43A-4}
If the council-manager form of government is not adopted at the election so called the question of adopting such form of government shall not be resubmitted to the voters of such municipality for adoption within two years thereafter, and then the question of adopting said form of government may be resubmitted in the manner above provided.
*(Acts 1982, No. 82-517, p. 851, §4.)*
##### **§ 11-43A-5** Form and Marking of Ballots {#sec-11-43a-5 omnilex-key=us-al-statutes--title-11--11-43A-5}
At such election the question to be submitted shall be printed in plain, prominent type on separate ballots and shall read as follows:
“Shall the council-manager form of government as provided by the Council-Manager Act of 1982 be adopted for the municipality of _____________ ?
Yes ______ No ______”
The voter shall mark his ballot with a cross mark (X) after the word which expresses his choice.
*(Acts 1982, No. 82-517, p. 851, §5.)*
##### **§ 11-43A-6** Conduct of Election, Canvassing of Vote, and Declaration of Election Result; Adoption and Certification of Provisions of Chapter {#sec-11-43a-6 omnilex-key=us-al-statutes--title-11--11-43A-6}
The election shall be conducted, the vote canvassed, and the result declared in the same manner as provided by law with respect to other municipal elections. If the majority of votes shall be “yes” or in favor of such question, the provisions of this article shall thereafter be adopted for such municipality and the mayor shall within five days of the election transmit to the Governor, to the Secretary of State, and to the judge of probate of the county in which the municipality is located, each, a certificate of adoption stating that such question was adopted by such municipality.
*(Acts 1982, No. 82-517, p. 851, §6.)*
##### **§ 11-43A-7** Time for Change in Form of Government {#sec-11-43a-7 omnilex-key=us-al-statutes--title-11--11-43A-7}
The change in the form of government shall take place on the first Monday in November following the date of the next ensuing municipal election for the election of members of the governing body held by the municipality during a general municipal election year as established by Section 11-46-21, except in Class 6 cities wherein the municipal governing body has elected to have a nine-member council as authorized in Section 11-43A-8; and in such cities the change in the form of government may take place on the first Monday in November in any even-numbered year, designated therefor by the municipal governing body unless the election approving such change was held in 1983, in which case the change shall take place on the first Monday in October 1986.
*(Acts 1982, No. 82-517, p. 851, §7; Acts 1983, No. 83-621, p. 964, §1; Act 2019-360, §2.)*
##### **§ 11-43A-8** Name of Governing Body; Composition of Council; Election of Council; Alternate Form for Class 6 Cities {#sec-11-43a-8 omnilex-key=us-al-statutes--title-11--11-43A-8}
(a) The governing body provided for herein shall be known collectively as the “Council of the City (Town) of _____ (name of city or town to be inserted)” and shall have the powers and duties hereinafter provided. Except as hereinafter provided and as otherwise provided for in Section 11-43A-1.1, the council shall have five members. One member shall be the mayor, elected by the voters at large, to preside over the deliberations of the council. One member shall be a council member elected by the voters at large. Three members shall be council members elected by the voters from each of three single-member districts. The council first elected shall qualify and take office on the first Monday in November following the date of the next ensuing municipal election held for the election of members of a municipal governing body during a general municipal election year.
(b) In Class 6 cities, the municipal governing body, by resolution, may elect to have the council composed and elected as provided in subsection (a) or to have the alternate form as provided in this subsection. If the municipal governing body, by resolution, elects to have the alternate form, it shall immediately notify the judge of probate, who shall have the ballots for the election, authorized in Section 11-43A-3, prepared to pose the question of the adoption of the alternate form of government authorized in this section. The council shall have nine members. One member shall be the mayor, who shall be a voting member, elected by the voters at large, to preside over the deliberations of the council. Eight members shall be council members elected by the voters, two from each of four dual-member districts. The council first elected shall qualify and take office on the first Monday in October in an even-numbered year designated by the municipal governing body unless the election approving the change in the form of government was held in 1983, in which case the council shall qualify and take office on the first Monday in October 1986.
(c) Subsequent to the seating of the initial council, the next council shall be elected at an election to be held in accordance with provisions of the general municipal election laws.
*(Acts 1982, No. 82-517, p. 851, §8; Acts 1983, No. 83-621, p. 964, §1; Act 2018-569, §2; Act 2019-360, §2.)*
##### **§ 11-43A-9** Election of Municipal Officers; Division of Municipality into Districts; Qualifications and Eligibility of Candidates; Runoff Election; Term of Office; Exception for Class 6 Cities {#sec-11-43a-9 omnilex-key=us-al-statutes--title-11--11-43A-9}
(a) In all cities to which this section applies, except Class 6 cities wherein the municipal governing body has elected to have a nine-member council, as authorized in Section 11-43A-8, the election for the first officers of the municipality shall be held on the same date as the date of election for the next ensuing general municipal election. Except as otherwise provided for in Section 11-43A-1.1, the election of the governing body of the municipality shall cause the municipality to be divided into three districts containing as nearly an equal number of people as possible. Candidates shall qualify in the manner prescribed in the general municipal election laws and shall have the qualifications and eligibility set forth therein. Each candidate shall announce that he or she is to become a candidate for mayor, or councilman-at-large, or if he or she desires to become a candidate for one of the three district posts, either district post 1, district post 2, or district post 3. A candidate for a district position shall reside in his or her district. Each voter in the election may cast one vote for a candidate for mayor, one vote for a councilman-at-large, and one vote for the candidate from the district in which he or she resides. Any candidate receiving a majority of the total votes cast for mayor, councilman-at-large, district post 1, district post 2, and district post 3 shall be elected. In the event no candidate receives a majority for a place on the council there shall be a runoff election for such place held in the manner prescribed by the general municipal election laws. The councilmen elected shall take office as herein provided. Each councilman shall hold office for four years and shall serve until his or her successor shall have been elected and qualified.
(b) In Class 6 cities wherein the municipal governing body has elected to have a nine-member council as authorized in Section 11-43A-8, the election for the first officers of the municipality shall be held on the same date as the date of election for the next ensuing general municipal election. Before such election the governing body of the municipality shall cause the municipality to be divided into four districts containing as nearly an equal number of people as possible. Candidates shall qualify in the manner prescribed in the general municipal election laws and shall have the qualifications and eligibility set forth therein. Each candidate shall announce that he or she is to become a candidate for mayor, or if he or she desires to become a candidate for one of the eight district posts, either district 1 post 1, district 1 post 2, district 2 post 1, district 2 post 2, district 3 post 1, district 3 post 2, district 4 post 1, or district 4 post 2. A candidate for a district position shall reside in his or her district. The municipal governing body shall have the authority by ordinance to establish geographic boundaries of approximately equal population for each of the two posts in any or all of the four districts. The ordinance of the city required by the preceding sentence shall be adopted no later than 75 days prior to the date of the election with respect to which the establishment of districts is to be effective. In establishing any such posts within a district, the city shall not be required to comply with Section 11-43A-33 except with respect to elections held subsequent to the publication of a federal census or population subsequent to the 1990 federal census of population. Each voter in the election may cast one vote for a candidate for mayor and one vote for a candidate for each of the two posts for the district in which he or she resides unless the municipal governing body has designated geographic boundaries for the two posts in a district. If the governing body has designated by ordinance geographic post boundaries for a district, then each voter within that district may cast one vote for a candidate for the post position within the district geographic boundaries where he or she resides. Any candidate receiving a majority of the total votes cast for mayor, or for a district post shall be elected. In the event no candidate receives a majority for a place on the council there shall be a runoff election for such place held in the manner prescribed by the general municipal election laws. The councilmen elected shall take office as herein provided. Councilmen elected hereunder, each, shall hold office for four years and shall serve until his or her successor shall have been elected and qualified.
*(Acts 1982, No. 82-517, p. 851, §9; Acts 1983, No. 83-621, p. 964, §1; Acts 1994, No. 94-352, p. 599, §1; Act 2018-569, §2.)*
##### **§ 11-43A-10** Continuation of Municipal Corporation {#sec-11-43a-10 omnilex-key=us-al-statutes--title-11--11-43A-10}
Any municipal corporation which adopts the council-manager form of government shall continue its existence as a body corporate without change in the municipal corporation. The word “municipality” as herein used shall mean and refer to any municipal corporation which has adopted the council-manager form of government. The city shall continue as a municipal corporation, within the corporate limits as then established, and as thereafter fixed in the manner prescribed by law, subject to all the duties and obligations then pertaining to or incumbent upon it as a municipal corporation and shall continue to enjoy the rights, immunities, powers, and franchises then enjoyed by it, as well as those that may thereafter be granted to it.
*(Acts 1982, No. 82-517, p. 851, §10.)*
##### **§ 11-43A-11** Municipal Government to Be Known as “Council-Manager Form of Government”; Vesting of Municipal Powers in Council {#sec-11-43a-11 omnilex-key=us-al-statutes--title-11--11-43A-11}
The municipal government of any such city or town proceeding under this article shall be known as the “council-manager form of government.” Pursuant to the provisions and limitations of this chapter and subject to the limitations imposed by the Constitution of Alabama and its laws, all powers of the municipality shall be vested in the council elected as herein provided and hereinafter referred to as “the council.” All powers of municipalities shall be exercised in the manner prescribed by this article or if the manner be not prescribed then in such manner as may be prescribed by law or by ordinance.
*(Acts 1982, No. 82-517, p. 851, §11.)*
##### **§ 11-43A-12** Powers of Municipality {#sec-11-43a-12 omnilex-key=us-al-statutes--title-11--11-43A-12}
The municipality shall have all the powers granted to municipal corporations by the Constitution and the laws of the state together with all the implied powers necessary to carry into execution all the powers granted. The municipality may acquire property within or without its corporate limits for any municipal purpose, in fee simple or any lesser interest or estate, by purchase, gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage, and control such property as its interest may require, and, except as prohibited by the Constitution and the laws of this state or restricted by this article, the municipality shall and may exercise all municipal powers, functions, rights, privileges, and immunities of every name and nature whatsoever. The enumeration of particular powers by this article shall not be deemed to be exclusive but in addition to the powers enumerated herein or implied thereby or appropriate to the exercise of such powers, it is intended that the municipality shall have and may exercise all powers granted to municipalities under the Constitution and the laws of this state.
*(Acts 1982, No. 82-517, p. 851, §12.)*
##### **§ 11-43A-13** Filing of Statement of Candidacy for Office of Mayor or Councilman; Qualifications {#sec-11-43a-13 omnilex-key=us-al-statutes--title-11--11-43A-13}
Any person desiring to become a candidate at any election for the office of mayor or councilman may become such candidate by filing a statement of candidacy as required and authorized by the general municipal election laws. The candidate shall state the office to which he seeks election and shall have the qualifications prescribed by the general municipal election laws.
*(Acts 1982, No. 82-517, p. 851, §13.)*
##### **§ 11-43A-14** Printing and Preparation of Ballots; Conduct of Election {#sec-11-43a-14 omnilex-key=us-al-statutes--title-11--11-43A-14}
(a) At every such election all ballots to be used by the voters shall be printed and prepared by the municipality and shall contain the names of all candidates seeking election to the office of mayor or to a position as a member of the council.
(b) The ballot shall conform, as nearly as can be, to the ballot prescribed in the general municipal election laws and the election shall be conducted as nearly as can be as prescribed by such laws.
*(Acts 1982, No. 82-517, p. 851, §14; Acts 1983, No. 83-621, p. 964, §1; Act 2018-569, §2.)*
##### **§ 11-43A-15** Compensation of Mayor and Councilmen {#sec-11-43a-15 omnilex-key=us-al-statutes--title-11--11-43A-15}
The mayor and each councilman shall receive as compensation for their services the sum established by the municipal governing body at least six months prior to the date of the election.
*(Acts 1982, No. 82-517, p. 851, §15.)*
##### **§ 11-43A-16** Duties of Mayor; Assistant Mayor; Vacancy; Mayor Pro Tempore; Vacancies; Exceptions in Class 6 Cities and Class 7 Municipalities {#sec-11-43a-16 omnilex-key=us-al-statutes--title-11--11-43A-16}
(a) The mayor shall preside at the meetings of the council and shall be recognized as the head of the municipal government for all ceremonial purposes and by the Governor for purpose of military law, but shall have no other administrative duties.
(b) In all cities to which this section applies, except Class 6 cities wherein the municipal governing body has elected to have a nine-member council, as authorized in Section 11-43A-8, and except in municipalities organized under Section 11-43A-1.1, the councilman-at-large shall be assistant mayor and shall act as mayor during the absence or disability of the mayor. Any vacancy in the office of the mayor shall be filled by the councilman-at-large. In the Class 6 cities and municipalities organized under Section 11-43A-1.1, a mayor pro tempore shall be elected from the membership by a majority vote of the council at its first meeting following its election. The mayor pro tempore shall act as mayor during the absence or disability of the mayor. Any vacancy in the office of the mayor shall be filled by the mayor pro tempore. Any vacancies on the council, except that of the office of mayor, shall be filled by the council at the next regular meeting of the council following the date of the vacancy. The election of a new councilman shall require the affirmative vote of at least three members in all cities to which this section applies, except in Class 6 cities wherein the municipal governing body has elected to have a nine-member council, as authorized in Section 11-43A-8, and in the Class 6 cities the election shall require the affirmative vote of five members and in municipalities organized under Section 11-43A-1.1, the election shall require an affirmative vote of a majority of the elected members of the council. A vacancy in one of the district council seats shall be filled by a person who shall reside within the district from whence the vacancy arose.
(c) Notwithstanding subsection (b), in Class 7 municipalities that have adopted a council-manager form of government consisting of a mayor and four council members elected at-large, the council, at its first meeting after election, by majority vote, shall elect a mayor pro tempore from its membership. The mayor pro tempore shall preside during the absence or disability of the mayor. Any vacancy in the office of the mayor shall be filled by the mayor pro tempore. Any vacancy on the council, except for the office of mayor, shall be filled by the council at its next regular meeting following the vacancy. An affirmative vote of the council is required to fill the vacancy.
*(Acts 1982, No. 82-517, p. 851, §16; Acts 1983, No. 83-621, p. 964, §1; Act 2010-544, p. 951, §2; Act 2018-569, §2.)*
##### **§ 11-43A-17** Powers of Council {#sec-11-43a-17 omnilex-key=us-al-statutes--title-11--11-43A-17}
All powers of the municipality including all powers vested in it by this chapter and by the Constitution, the general and local laws of this state, and the determination of all matters of policy shall be vested in the council. Without limitation of the foregoing, the council shall have the power (1) to appoint and remove the city manager and (2) to establish other administrative departments and distribute the work of such departments.
*(Acts 1982, No. 82-517, p. 851, §17.)*
##### **§ 11-43A-18** Appointment of City Manager; Temporary Acting City Manager; Removal; Dealings with Administrative Service {#sec-11-43a-18 omnilex-key=us-al-statutes--title-11--11-43A-18}
The council, by a majority vote of the whole qualified membership of the council, shall appoint a city manager, who shall be an officer of the city, and shall have the powers to perform the duties in this article provided. No councilman shall receive such appointment during the term for which the council member shall have been elected nor within one year after expiration of the term. Any civil service act applicable to the municipality shall not apply to the appointment or the removal of the city manager.
A temporary acting city manager may be designated by the council to serve for not more than four months in these events, but only in these events: (1) When the first council takes office after adoption of this article or (2) following the removal of any permanent city manager.
Such temporary acting city manager shall perform the duties and assume the obligations of the office of city manager and may be removed by the council at any time. If the council shall permit the temporary acting manager to serve for longer than four months, he or she shall become the permanent city manager.
Any person appointed as acting city manager or as city manager need not be a resident of the city nor a resident of the State of Alabama at the time of appointment.
The council shall appoint the city manager for an indefinite term, but the council may remove the manager at any time by a majority vote of the whole qualified membership of the council. However, in any Class 6 city in which the governing body has elected to have a nine-member council, as authorized in Section 11-43A-8, any such removal shall be subject to any agreements contained in a contract between the council and the city manager. In any Class 7 city in which the governing body is organized as provided in Section 11-43A-3.3, removal of the city manager shall be subject to the contract between the governing body and the city manager.
Neither the council nor any of its members shall direct or request the appointment of any person to, or removal from, office by the city manager, or in any manner take part in the appointment or removal of officers and employees in the administrative service to the city. Except for the purpose of inquiry, the mayor and the members of the council shall deal with the administrative service only through the city manager and neither the mayor nor any member of the council shall give orders to any subordinates of the city manager, either publicly or privately. The mayor or any member of the council violating the provisions of this section or voting for a resolution or ordinance in violation of this section shall be guilty of a Class C misdemeanor. Upon conviction of a second violation of this section, the person so convicted shall forfeit his or her office.
*(Acts 1982, No. 82-517, p. 851, §18; Acts 1983, No. 83-621, p. 964, §1; Act 2010-544, p. 951, §2.)*
##### **§ 11-43A-19** Power of Council to Create, Change, and Abolish Offices, Etc., and Assign Additional Functions or Duties Thereto {#sec-11-43a-19 omnilex-key=us-al-statutes--title-11--11-43A-19}
The council, by ordinance, may create, change, and abolish offices, departments, boards, or agencies other than the offices, departments, boards, or agencies established by this article. The council, by ordinance, may assign additional functions or duties to offices, departments, boards, or agencies established by this chapter but may not discontinue or assign to any other office, department, board or agency any function or duty assigned by this chapter to a particular office, department, board or agency.
*(Acts 1982, No. 82-517, p. 851, §19.)*
##### **§ 11-43A-20** Clerk of Municipality; When Subject to Civil Service or Merit System; Duties {#sec-11-43a-20 omnilex-key=us-al-statutes--title-11--11-43A-20}
If the clerk of any municipality which adopts the council-manager form of government holds office subject to any civil service or merit system, such clerk shall continue to be the clerk under the council-manager form of government of such municipality, and his successor shall be selected and hold office subject to the provisions of such civil service or merit system. If the clerk of the municipality which adopts the council-manager form of government does not hold office subject to any civil service or merit system, the council shall elect the clerk by a majority vote of those members elected to the council. The clerk shall give notice of the meetings of the council and shall keep the journal of its proceedings which shall be authenticated by his signature. He shall record in full in said journal all ordinances or resolutions and the minutes of all meetings of the council. He shall perform such other duties as shall be required by this chapter or by ordinance and such duties as are imposed by the general laws of Alabama upon clerks and as to which other provisions are not made in this chapter. He shall keep the journal open for public inspection at all reasonable times.
*(Acts 1982, No. 82-517, p. 851, §20.)*
##### **§ 11-43A-21** Times for Meetings of Council; Open to Public {#sec-11-43a-21 omnilex-key=us-al-statutes--title-11--11-43A-21}
The first meeting of each newly elected council for induction into office shall be held at 10:00 in the morning on the first Monday in October next following its election, after which the council shall meet regularly at such times as may be prescribed by its rules, but not less frequently than twice each month. All meetings of the council shall be open to the public.
*(Acts 1982, No. 82-517, p. 851, §21.)*
##### **§ 11-43A-22** Investigation and Determination of Election and Qualifications of Council Members by Council; Judicial Review {#sec-11-43a-22 omnilex-key=us-al-statutes--title-11--11-43A-22}
The council shall be the judge of the election and qualifications of its members and for the purpose of investigating such election and qualifications shall have the power to subpoena witnesses and to require the production of records, but the decision of the council in any such case shall be subject to review by a court of competent jurisdiction.
*(Acts 1982, No. 82-517, p. 851, §22.)*
##### **§ 11-43A-23** Rules of Council {#sec-11-43a-23 omnilex-key=us-al-statutes--title-11--11-43A-23}
The council shall determine its own rules and order of business and such rules shall be established by ordinance.
*(Acts 1982, No. 82-517, p. 851, §23.)*
##### **§ 11-43A-24** Regular Public Meetings of Council; Adjourned, Called, Special, or Other Meetings; Quorum; When Vote of Majority of Quorum Sufficient; When Vote of Majority of Council Required; Procedure; Record of Proceedings; Journal; Unanimous Consent for Passage of Certain Ordinances at Meeting Where Introduced; Publication of Ordinances {#sec-11-43a-24 omnilex-key=us-al-statutes--title-11--11-43A-24}
The council shall hold regular public meetings as may be prescribed by its own rules, provided that a regular hour and day shall be fixed by the order of said council and publicly announced. It may hold such adjourned, called, or special or other meetings as the business of the municipality may require. The mayor when present, and in his absence the assistant mayor, shall preside at all meetings of said council. A majority of the whole qualified membership of the council shall constitute a quorum for the transaction of any and every power conferred upon said council. The affirmative vote of a majority of the quorum shall be necessary and sufficient for the passage of any resolution, rule, or ordinance or the transaction of any business of any sort by the said council or the exercise of any of the powers conferred upon it by the terms of this article except that no resolution or ordinance of a general and permanent nature and an ordinance granting a franchise shall be adopted except by a vote of a majority of the whole number elected to the council. No resolution or ordinance granting any franchise, appropriating any money for any purpose, providing for any public improvements, any regulation concerning the public health, or of any other general permanent nature shall be enacted except at a regular public meeting of the council or an adjournment thereof. Every ordinance introduced shall be in writing and read in full unless in accordance with the rules of procedure theretofore adopted before any vote thereon shall be taken and the yeas and nays shall be recorded. A record of the proceedings of every meeting of the council shall be taken and prepared by the municipal clerk and the records of the proceedings of the meeting shall, when approved by the council, be signed by the mayor and the clerk and entered in the journal. The journal shall be kept available for inspection by all persons at all reasonable times. No ordinance of permanent operation shall be passed at the meeting in which it was introduced except by unanimous consent of all members of the council present and such unanimous consent shall be shown by the yea and nay votes entered upon the minutes of said meeting, provided, however, that if all members of the council present vote for the passage of the ordinance and their names are entered on the record as voting in favor thereof, it shall be construed as giving unanimous consent to the action taken upon such ordinance at the meeting at which it is introduced. Publication of ordinances shall be had as provided in Section 11-45-8.
*(Acts 1982, No. 82-517, p. 851, §24.)*
##### **§ 11-43A-25** Thirty-Day Delay in Effect of Ordinances Granting Franchises, Etc.; Publication at Expense of Grantee {#sec-11-43a-25 omnilex-key=us-al-statutes--title-11--11-43A-25}
No ordinance granting to any person, firm, or corporation of any franchise, lease of right to use the streets, public highways, thoroughfares, or public property of the city shall take effect and be enforced until 30 days after final enactment of same by the council and publication of said ordinance as provided by law which publication shall be made at the expense of the person, firm or corporation applying for said grant.
*(Acts 1982, No. 82-517, p. 851, §24.)*
##### **§ 11-43A-26** Revision and Codification of Ordinances and Resolutions or Adoption of Code {#sec-11-43a-26 omnilex-key=us-al-statutes--title-11--11-43A-26}
The council may provide for the revision and codification of its ordinances and permanent resolutions or for the adoption of a code or codes.
*(Acts 1982, No. 82-517, p. 851, §25.)*
##### **§ 11-43A-27** Monthly Statement and Summary; Annual Examination of Books and Accounts; Publication of Results {#sec-11-43a-27 omnilex-key=us-al-statutes--title-11--11-43A-27}
The council shall each month make available in the office of the city manager a detailed statement of all receipts and expenses of the municipality and a summary of its proceedings during the preceding month and at the end of each year the council shall cause a full and complete examination of all the books and accounts of the municipality to be made by a qualified public accountant and shall cause the results of such examination to be published in pamphlet form, copies of which shall be placed in the office of the city manager, the office of municipal clerk, and in the public library to be open for inspection by all persons.
*(Acts 1982, No. 82-517, p. 851, §26; Acts 1988, No. 88-568, p. 888.)*
##### **§ 11-43A-28** Qualifications of City Manager; Duties; Designation or Appointment of Administrative Officer to Perform Duties of Manager During Temporary Absence or Disability {#sec-11-43a-28 omnilex-key=us-al-statutes--title-11--11-43A-28}
The city manager shall be chosen by the council solely on the basis of his executive and administrative qualifications with special reference to his actual experience in, or his knowledge of, accepted practice in respect to the duties of his office as hereinafter set forth. At the time of his appointment, he may but need not be a resident of the municipality or state, but during his tenure of office he shall reside within the municipality.
The city manager shall be the head of the administrative branch of the municipal government. He shall be responsible to the council for the proper administration of all affairs of the municipality and, subject to the provisions of any civil service or merit system law applicable to such municipality and except as otherwise provided herein, he shall have power and shall be required to:
(1) Enforce all laws and ordinances;
(2) Appoint and, when necessary for the good of the service, remove all officers and employees of the municipality except as otherwise provided by this article and except as he may authorize the head of a department or office to appoint and remove subordinates in such department or office; provided that he shall not appoint or remove officers and employees of:
a. Any library board of the municipality;
b. Any board of the municipality having control over any park, recreation facility, fair, or exhibit;
c. Any municipally owned public utility and any municipally owned service enterprise, including inter alia, electric, gas and water boards, agencies, etc.;
d. Any school board of the municipality;
e. Any hospital board of the municipality;
f. Any airport board of the municipality;
g. Any housing authority;
h. Any city plumbers or electricians boards;
i. Any planning board of the municipality;
j. Any zoning board of the municipality;
(3) Exercise administrative supervision and control over all officers, employees, offices, departments, boards, and agencies created by this article or hereafter created by the council, except those enumerated in paragraphs a. to j. of subdivision (2), inclusive, set out above in this section, and except those otherwise given independent status; and subject to any civil service or merit system law in effect in such municipality;
(4) Keep the council fully advised as to the financial conditions and needs of the municipality; to prepare and submit a budget proposal annually to the council and be responsible for its administration after its adoption; to prepare and submit, as of the end of the fiscal year, a complete report on the financial and administrative activities of the municipality for such year;
(5) Recommend to the council such actions as he may deem desirable;
(6) Prepare and submit to the council such reports as may be required of him;
(7) Perform such other duties as may be prescribed by this article or required of him by ordinance or by resolution of the council not inconsistent with this article.
To perform his duties during his temporary absence or temporary disability, the manager may designate by letter filed with the city clerk a qualified administrative officer of the municipality. In the event of failure of the manager to make such designation, the council may by resolution appoint a qualified administrative officer of the municipality to perform the duties of the manager until he shall return or his disability shall cease.
*(Acts 1982, No. 82-517, p. 851, §27.)*
##### **§ 11-43A-29** Fiscal, Budget, and Accounting Year; Submission and Adoption of Budget; Changes in Budget {#sec-11-43a-29 omnilex-key=us-al-statutes--title-11--11-43A-29}
The fiscal year of the municipality shall begin on the first day of each October in each year and shall end on the last day of each September. Such fiscal year shall also constitute the budget and accounting year. As used in this article the term “budget year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
The city manager, at least 45 days prior to the beginning of each budget year, shall submit to the council a budget proposal, with explanations. The council shall adopt a budget, by ordinance, prior to the beginning of each fiscal year. The budget so adopted shall be a public record and shall be available for inspection by the general public. Any changes in the budget, during the course of the budget year, shall be done by ordinance.
*(Acts 1982, No. 82-517, p. 851, §28.)*
##### **§ 11-43A-30** Municipal Treasurer; Establishment of Office and Assignment of Duties; Election; Assignment of Duties to City Clerk as Clerk-Treasurer {#sec-11-43a-30 omnilex-key=us-al-statutes--title-11--11-43A-30}
The council may establish, by ordinance, the office of municipal treasurer and assign to such office the duties and responsibilities it deems necessary. The treasurer shall be the custodian of the funds of the municipality and shall keep an accurate record of the funds of the several departments and shall keep books showing accurately the financial condition of the municipality. The election of a person as treasurer shall require a majority vote of the whole qualified membership of the council.
The duties of the treasurer may, by ordinance, be assigned to the city clerk and if such duties are assigned, he shall be known as the clerk-treasurer of the municipality.
*(Acts 1982, No. 82-517, p. 851, §29.)*
##### **§ 11-43A-31** Payment and Deposit of Municipal Funds {#sec-11-43a-31 omnilex-key=us-al-statutes--title-11--11-43A-31}
The council shall prescribe, by ordinance, the method of paying out funds of the municipality. Checks and warrants shall be signed by at least two officers of the municipality and the council shall designate the said two officers by ordinance. All funds of the municipality shall be deposited in such depositories as may be designated by resolution of the council.
*(Acts 1982, No. 82-517, p. 851, §30.)*
##### **§ 11-43A-32** Establishment of Council Districts; At-Large Posts; Exception for Class 6 Cities {#sec-11-43a-32 omnilex-key=us-al-statutes--title-11--11-43A-32}
(a) Except as otherwise provided for in Section 11-43A-1.1 and subject to subsection (b), there shall be established three council districts to be designated respectively as district post 1, district post 2, and district post 3, and in such Class 6 cities, there shall be established four council districts with eight district posts to be designated district 1 post 1, district 1 post 2, district 2 post 1, district 2 post 2, district 3 post 1, district 3 post 2, district 4 post 1, and district 4 post 2. Such districts shall have, as nearly as is reasonable, the same population. The designation and boundaries of the initial council districts shall be specifically described and set forth. In all cities to which this section applies, except the above-described Class 6 cities, the two at-large posts on the council shall be designated as mayor and councilman-at-large; and in such Class 6 cities the one at-large post on the council shall be designated as mayor.
(b) This section shall not apply to a Class 6 municipality with a nine-member council authorized pursuant to Section 11-43A-8 or a Class 7 municipality with a five-member council elected at-large authorized pursuant to Section 11-43A-3.3.
*(Acts 1982, No. 82-517, p. 851, §31; Acts 1983, No. 83-621, p. 964, §1; Act 2010-544, p. 951, §2; Act 2018-569, §2.)*
##### **§ 11-43A-33** Reapportionment of Council Districts; Filing of Recommended Plan with Council; Redistricting Ordinances; Effect on Incumbents and on Elections Held Within Six Months {#sec-11-43a-33 omnilex-key=us-al-statutes--title-11--11-43A-33}
Whenever there shall be a change in population in any of the districts heretofore established, evidenced by a federal census of population published following the last federal census of population preceding the adoption of this article, or by virtue of a substantial change in the corporate limits, there shall be a reapportionment of the council districts in the manner hereinafter provided:
(1) The manager shall within six months after the publication of each federal census of population for the municipality, following the last federal census of population preceding the adoption of this article, or within six months after there shall have been any substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous and, to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well-defined boundaries;
b. Each district shall contain as nearly as is possible the same population;
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the manager shall become effective without enactment by the council, as if it were a duly enacted ordinance;
(3) Such redistricting ordinance shall not apply to any primary or regular or special election held within six months after its becoming effective. No incumbent councilman or member of the board or commission shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1982, No. 82-517, p. 851, §32; Acts 1983, No. 83-621, p. 964, §1.)*
##### **§ 11-43A-34** Effect of Chapter on Existing Officers, Employees, Offices, Departments, Etc {#sec-11-43a-34 omnilex-key=us-al-statutes--title-11--11-43A-34}
Nothing in this article contained, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or of any office, department, board, or agency existing at the time when this article shall take effect, or any provision of law in force at the time when the council-manager form of government shall be adopted and not inconsistent with the provisions of this article, in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension and retirement rights, civil rights, or any other rights or privileges of officers or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1982, No. 82-517, p. 851, §33.)*
##### **§ 11-43A-35** Continuation in Office of Persons Holding Administrative Office until Contrary Provision Is Made; Transfer of Powers and Duties of Abolished Offices, Etc {#sec-11-43a-35 omnilex-key=us-al-statutes--title-11--11-43A-35}
All persons holding administrative office at the time the council-manager form of government is adopted shall continue in office and in the performance of their duties until provision shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency, be abolished by this article, or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
*(Acts 1982, No. 82-517, p. 851, §34.)*
##### **§ 11-43A-36** Continuation in Office of Persons in Civil Service or Merit System {#sec-11-43a-36 omnilex-key=us-al-statutes--title-11--11-43A-36}
Any person holding an office or position in the civil service of the municipality under any civil service or merit system applicable to the municipality when the council-manager form of government shall be adopted shall continue to hold such office in the civil service of the municipality under the council-manager form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service or merit system.
*(Acts 1982, No. 82-517, p. 851, §35.)*
##### **§ 11-43A-37** Transfer of Records, Property, and Equipment of Office, Etc., When Duties Reassigned {#sec-11-43a-37 omnilex-key=us-al-statutes--title-11--11-43A-37}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency by this article, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency, or part thereof, are by this article assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1982, No. 82-517, p. 851, §36.)*
##### **§ 11-43A-38** Continuation of Offices, Departments, Etc., until Otherwise Provided {#sec-11-43a-38 omnilex-key=us-al-statutes--title-11--11-43A-38}
Any office, department, board, or agency provided for in this article with a name or with powers and duties the same or substantially the same as those of an office, department, board, or agency heretofore existing shall continue to exercise its powers and duties, until otherwise provided. Any provision in any law, rule, regulation, contract, grant, or other document relating to such a formerly existing office, department, board, or agency, shall, so far as not inconsistent with the provisions of this article, apply to such office, department, board, or agency provided for by this article.
*(Acts 1982, No. 82-517, p. 851, §37.)*
##### **§ 11-43A-39** Continuation of Contracts; Completion of Public Improvements {#sec-11-43a-39 omnilex-key=us-al-statutes--title-11--11-43A-39}
All contracts entered into by the city, or for its benefit, prior to the adoption by such city of the council-manager form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the council-manager form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1982, No. 82-517, p. 851, §38.)*
##### **§ 11-43A-40** Effect of Chapter on Pending Litigation {#sec-11-43a-40 omnilex-key=us-al-statutes--title-11--11-43A-40}
No action or proceeding, civil or criminal, pending at the time of the adoption of the council-manager form of government, brought by or against the municipality or any office, department, board, or agency or officer thereof, shall be affected or abated by the adoption of the council-manager form of government or by anything therein contained in this article.
*(Acts 1982, No. 82-517, p. 851, §39.)*
##### **§ 11-43A-41** Effect of Chapter on Laws Relating to Pension, Retirement, and Relief Funds for Employees {#sec-11-43a-41 omnilex-key=us-al-statutes--title-11--11-43A-41}
All laws and parts of laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to any municipality at the time when such municipality shall elect to be governed by the provisions of this article, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1982, No. 82-517, p. 851, §40.)*
##### **§ 11-43A-42** Continuation of Laws Relating to Boards, Authorities, Agencies, Etc., with Independent Status until Otherwise Provided {#sec-11-43a-42 omnilex-key=us-al-statutes--title-11--11-43A-42}
All laws relating to the school board, library board, hospital board, airport board, housing authority, plumbers or electricians board, planning board, zoning board, park or recreation board, municipally owned public utility, and any municipally owned service enterprise, including inter alia, electric, gas, and water boards, agencies, etc., and any board, authority, agency, etc., given such independent status, as the same may apply and be in effect at the time when such municipality shall elect to be governed by the provisions of this article, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board, or agency, until otherwise provided by law.
*(Acts 1982, No. 82-517, p. 851, §41.)*
##### **§ 11-43A-43** When Chapter Becomes Applicable to Municipality {#sec-11-43a-43 omnilex-key=us-al-statutes--title-11--11-43A-43}
For all purposes the provisions of this article shall become applicable to said municipality at the time when the first council of such municipality elected under the provisions hereof takes office and qualifies.
*(Acts 1982, No. 82-517, p. 851, §42.)*
##### **§ 11-43A-44** Continuation of Ordinances and Resolutions Unless and until Changed or {#sec-11-43a-44 omnilex-key=us-al-statutes--title-11--11-43A-44}
*[Repealed]*
All ordinances and resolutions of the municipality in effect at the time of adoption by the municipality of the council-manager form of government herein set up shall continue in effect unless and until changed or repealed by the council.
*(Acts 1982, No. 82-517, p. 851, §43.)*
##### **§ 11-43A-45** Discrimination Prohibited {#sec-11-43a-45 omnilex-key=us-al-statutes--title-11--11-43A-45}
No person shall be appointed to or removed from, or in any way favored or discriminated against with respect to any municipal position or appointive municipal administrative office because of race, sex, political or religious opinions or affiliations.
*(Acts 1982, No. 82-517, p. 851, §44.)*
##### **§ 11-43A-46** Right of City Manager, Heads of Departments, Etc., to Attend Council Meetings and Take Part in Discussions; City Manager to Be Notified of Special or Adjourned Meetings {#sec-11-43a-46 omnilex-key=us-al-statutes--title-11--11-43A-46}
The city manager, the heads of all departments, and such other officers of the municipality as may be designated by the council, shall be entitled to attend meetings of the council, but shall have no vote therein. The city manager shall have the right to take part in the discussion of all matters coming before the council, and the directors and other officers shall be entitled to take part in all discussions of the council relating to their respective offices, departments, boards, or agencies. The city manager shall be notified of any special or adjourned meetings.
*(Acts 1982, No. 82-517, p. 851, §45.)*
##### **§ 11-43A-47** Right of Council, City Manager and Designees to Investigate Municipal Affairs, Etc {#sec-11-43a-47 omnilex-key=us-al-statutes--title-11--11-43A-47}
The council, the city manager, or any person or committee authorized by either of them, shall have the power to inquire into the conduct of any office, department, board, or agency or officer of the municipality. Either of them may make investigations of municipal affairs and may compel the production of books, papers, and other evidence for that purpose.
*(Acts 1982, No. 82-517, p. 851, §46.)*
##### **§ 11-43A-48** Limit on Contracts Involving Money Payments; Requirements for Validity {#sec-11-43a-48 omnilex-key=us-al-statutes--title-11--11-43A-48}
No contract involving the payment of money out of the appropriation of more than one year shall be made for a period of more than five years, nor shall any such contract be valid unless made or approved by ordinance, and signed in the name of the municipality by the mayor and countersigned by the manager.
*(Acts 1982, No. 82-517, p. 851, §47.)*
##### **§ 11-43A-49** Bond of City Manager and Other Officers and Employees {#sec-11-43a-49 omnilex-key=us-al-statutes--title-11--11-43A-49}
The city manager and other such officers or employees as the council may by general ordinance require so to do, shall give bond in such amount and with such surety as may be approved by the council. The premiums on such bonds shall be paid by the municipality.
*(Acts 1982, No. 82-517, p. 851, §48.)*
##### **§ 11-43A-50** Oath or Affirmation of Councilman, Officers, and Employees {#sec-11-43a-50 omnilex-key=us-al-statutes--title-11--11-43A-50}
Every councilman, officer and employee of the municipality shall, before entering upon the duties of his office, take and subscribe to the following oath or affirmation, to be filed and kept in the office of the city clerk:
“I solemnly swear (or affirm) that I am eligible for the office of _____ and will execute the duties of same according to the best of my ability, and that I will support the Constitutions and will obey the laws of the United States and of the State of Alabama; that I will, in all respects, observe the provisions of the ordinances of the City of _____, and will faithfully discharge the duties of the office of _____.”
*(Acts 1982, No. 82-517, p. 851, §49.)*
##### **§ 11-43A-51** Change from Council-Manager Form of Government; When Election Thereon Authorized {#sec-11-43a-51 omnilex-key=us-al-statutes--title-11--11-43A-51}
No municipality may change from the council-manager form of government within three years after the adoption thereof. At the end of such period, or at any time thereafter, the municipality may change its form of municipal government in the manner provided by law, provided that no election on the abandonment of the council-manager form of government shall be held within four years after any other election thereon.
*(Acts 1982, No. 82-517, p. 851, §50.)*
##### **§ 11-43A-52** Effect of Chapter on Existing Laws {#sec-11-43a-52 omnilex-key=us-al-statutes--title-11--11-43A-52}
All laws and parts of laws, general, local, or special, relating to or affecting the city, its powers, functions, duties, and property, in force when this article shall take effect are hereby continued in effect; but all such laws relating to the exercise of powers, functions, and duties by the commission or mayor-council or some other form of government shall be superseded to the extent that the same are inconsistent with the provisions of this article.
*(Acts 1982, No. 82-517, p. 851, §51.)*
#### **Article 2** Council-Manager Act of 1991
##### **§ 11-43A-70** Adoption of Ordinance Establishing Council-Manager Form of Government; Short Title {#sec-11-43a-70 omnilex-key=us-al-statutes--title-11--11-43A-70}
Within three months of the approval of this article by the Governor, the governing body of any Class 2, 3, 4, 5, 6, 7, or 8 municipality in the State of Alabama operating under a council-manager or under a mayor-council-city manager form of government may, by a majority vote of the members of that governing body, adopt an ordinance establishing a council-manager form of government pursuant to the terms and conditions of this article. All provisions of this article set forth hereinbelow shall apply only to those Class 2, 3, 4, 5, 6, 7, or 8 municipalities electing to establish a council-manager form of government as set forth herein. This article shall be known as the “Council-Manager Act of 1991”.
*(Acts 1991, No. 91-545, p. 973, §1.)*
##### **§ 11-43A-71** When Council-Manager Form of Government Becomes Effective {#sec-11-43a-71 omnilex-key=us-al-statutes--title-11--11-43A-71}
When such an ordinance is adopted within the time period specified in Section 11-43A-70, the council-manager form of government under this article shall become effective for such municipality either (i) immediately upon receipt of preclearance of such ordinance by the United States Department of Justice under the Voting Rights Act of 1965, as amended, or (ii) upon the first Monday in October following the next regularly scheduled municipal election, whichever effective date is specified in the ordinance.
*(Acts 1991, No. 91-545, p. 973, §2.)*
##### **§ 11-43A-72** Form of Government to Be Known as “Council-Manager Form of Government”; Vesting of Municipal Powers in Council {#sec-11-43a-72 omnilex-key=us-al-statutes--title-11--11-43A-72}
The form of government of any municipality proceeding under this article shall be known as the “council-manager form of government.” Pursuant to the provisions and limitations of this article, and subject to the limitations imposed by the constitution and laws of Alabama, all powers of the municipality shall be vested in the council as herein provided. All powers of the municipality shall be exercised in the manner prescribed by this article, or if the manner is not prescribed herein, then in such manner as may be otherwise prescribed by law or ordinance.
*(Acts 1991, No. 91-545, p. 973, §3.)*
##### **§ 11-43A-73** Continuation of Municipal Corporation {#sec-11-43a-73 omnilex-key=us-al-statutes--title-11--11-43A-73}
Any municipality which adopts the council-manager form of government under this article shall continue its existence as a body corporate without change in the municipal corporation. The word “municipality” as herein used shall mean and refer to any municipal corporation which elects to come within the provisions of this article. The municipality shall continue as a municipal corporation within the corporate limits as then established, including all annexations, and as thereafter fixed in the manner prescribed by law, subject to all of the duties and obligations then pertaining to or incumbent upon it as a municipal corporation, and shall continue to enjoy the rights, immunities, powers, and franchises then enjoyed by it, as well as those that may thereafter be granted to it.
*(Acts 1991, No. 91-545, p. 973, §4.)*
##### **§ 11-43A-74** Powers of Municipality {#sec-11-43a-74 omnilex-key=us-al-statutes--title-11--11-43A-74}
The municipality shall have all the powers granted to municipal corporations by the constitution and the laws of this state together with all the implied powers necessary to carry into execution all the powers granted. The municipality may acquire property within or without its corporate limits for any municipal purpose, any lesser interest or estate, by purchase, in fee simple or gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage, and control such property as its interests may require; and, except as prohibited by the constitution and the laws of this state or restricted by this article, the municipality shall and may exercise all municipal powers, functions, rights, privileges, and immunities of every name and nature whatsoever. The enumeration of particular powers by this article shall not be deemed to be exclusive, but in addition to the powers herein enumerated or hereby implied or appropriate to the exercise of such powers, and it is intended that the municipality shall have and may exercise all powers granted to municipalities under the constitution and the laws of this state.
*(Acts 1991, No. 91-545, p. 973, §5.)*
##### **§ 11-43A-75** Mayor and Council Members to Continue in Office until Expiration of Terms {#sec-11-43a-75 omnilex-key=us-al-statutes--title-11--11-43A-75}
The mayor and council members, and all officers of the council, who are holding office on the date of the preclearance by the United States Department of Justice of the ordinance referenced in Section 11-43A-70 shall continue in office until the expiration of their current terms, but they shall be subject to and governed by the council-manager form of government under this article unless the effective date of such form of government is deferred under Section 11-43A-71(ii) hereinabove, in which event they shall be subject to and governed by the previously existing form of government until the expiration of said terms.
*(Acts 1991, No. 91-545, p. 973, §6.)*
##### **§ 11-43A-76** Composition of Council; Municipal Elections {#sec-11-43a-76 omnilex-key=us-al-statutes--title-11--11-43A-76}
The council shall consist of seven council members who shall be elected by single-member districts. There shall be one mayor, and he shall be elected at large. An election for mayor and members of the council shall be held at the next regularly scheduled municipal election after the adoption of this article, and the officials elected shall take office upon the expiration of the present officials’ terms of office. Regular municipal elections shall be held quadrennially thereafter under the same rules and regulations and in the same manner as provided by law. The expense of such election shall be paid by the municipality and shall be governed by the applicable general municipal election laws.
*(Acts 1991, No. 91-545, p. 973, §7.)*
##### **§ 11-43A-77** Population of Districts; Designation and Boundaries Specifically Described; Municipalities Having Seven Council Districts Prior to Effective Date {#sec-11-43a-77 omnilex-key=us-al-statutes--title-11--11-43A-77}
The seven council districts shall have, as nearly as is reasonable, the same population according to the last federal decennial census. The designation and boundaries of the districts shall be specifically described and set forth. With respect to municipalities already having seven council districts prior to the effective date of the council-manager form of government under this article, such municipalities shall continue after such effective date to have the same seven districts with the same boundaries, and any ordinance or ordinances creating such districts shall continue in full force and effect unless and until changed or repealed by the council.
*(Acts 1991, No. 91-545, p. 973, §8.)*
##### **§ 11-43A-78** Election of Municipal Officers; Qualifications and Eligibility of Candidates; Runoff Election; Term of Office {#sec-11-43a-78 omnilex-key=us-al-statutes--title-11--11-43A-78}
With respect to municipal elections, each candidate shall announce that he is to become a candidate for either mayor or for councilman of District 1, 2, 3, 4, 5, 6, or 7. A candidate may not run for both mayor and councilman in the same election. A candidate for mayor shall have resided in the municipality for a period of at least 90 days immediately preceding the date of regular election, and, if elected, shall continue to reside therein so long as he remains mayor. A candidate for councilman shall have resided within the district from which he seeks election for a period of at least 90 days immediately preceding the date of the regular election, and, if elected, shall continue to reside therein so long as he remains a councilman. Each voter in the election may cast one vote for a candidate for mayor and one vote for a candidate for councilman from the district in which the voter resides. Any candidate receiving a majority of the total votes cast for mayor or a majority of the total votes cast for councilman from any particular district shall be elected. In the event that no candidate receives a majority, then there shall be a runoff election for any such office to be held in a manner prescribed by the applicable general municipal election laws. The mayor and councilmen elected shall hold office for terms of four years each and shall serve until their respective successors have been elected and qualified. The mayor and councilmen may succeed themselves in office.
*(Acts 1991, No. 91-545, p. 973, §9.)*
##### **§ 11-43A-79** Compensation for Mayor and Councilmen {#sec-11-43a-79 omnilex-key=us-al-statutes--title-11--11-43A-79}
The mayor and councilmen shall receive as compensation for their services the respective sums established by the council by ordinance at least six months prior to the date of their election.
*(Acts 1991, No. 91-545, p. 973, §10.)*
##### **§ 11-43A-80** Procedure for Becoming Candidate {#sec-11-43a-80 omnilex-key=us-al-statutes--title-11--11-43A-80}
Any person desiring to become a candidate at any election for the office of mayor or councilman may become a candidate by filing a statement of candidacy as required and authorized by the applicable general municipal election laws. The candidate shall state the office to which he seeks election, and, in addition to the residency qualifications required by this article, shall have the qualifications prescribed by the applicable general municipal election laws.
*(Acts 1991, No. 91-545, p. 973, §11.)*
##### **§ 11-43A-81** Election Ballots {#sec-11-43a-81 omnilex-key=us-al-statutes--title-11--11-43A-81}
At every such election all ballots to be used by the voters shall be printed and prepared by the municipality and shall contain the names of all candidates seeking election to the office of mayor and to the office of councilman for each of the seven council districts. The ballot shall conform, as nearly as can be, to the ballot prescribed in the applicable general municipal election laws, and the election shall be conducted as nearly as can be as prescribed by such laws.
*(Acts 1991, No. 91-545, p. 973, §12.)*
##### **§ 11-43A-82** Duties, Powers, and Rights of Mayor {#sec-11-43a-82 omnilex-key=us-al-statutes--title-11--11-43A-82}
The mayor shall preside at the meetings of the council and shall be recognized as the head of the municipal government for all ceremonial purposes. The mayor shall have the power to veto all ordinances and resolutions of a general and permanent nature, but shall otherwise have no vote on the council. An affirmative vote of five out of seven council members shall be required to override the veto of the mayor. The mayor shall have the right to bring any matter relating to the municipality to the council for discussion and debate, and the mayor shall have the right to enter into discussion and debate of all matters brought before the council and shall be notified of all meetings of the council.
The mayor shall have the power to appoint members of boards, authorities, and commissions only to the extent that such power is otherwise provided mayors in general by law. However, the mayor shall also have the power to appoint himself or, alternatively, one member to any ad hoc committee created or established by the council other than a standing committee consisting only of members of the council.
*(Acts 1991, No. 91-545, p. 973, §13.)*
##### **§ 11-43A-83** Powers of Council; President and President Pro Tem {#sec-11-43a-83 omnilex-key=us-al-statutes--title-11--11-43A-83}
The council shall be the governing body of the municipality and shall exercise all legislative functions of the municipality. All powers of the municipality, including all powers vested by this article, by the constitution and by the general and local laws of this state, and the determination of all matters of policy, shall be vested in the council. Without limitation of the foregoing, the council shall have the power to appoint and remove the city manager, to establish other administrative departments of the municipality, and to promulgate rules and regulations for the operation of such departments. The council shall have the power to override any veto of the mayor relating to ordinances and resolutions of a general and permanent nature by an affirmative vote of five of the seven members.
The council shall have the power to appoint members of boards, authorities, and commissions to the extent otherwise provided municipal governing bodies in general by law. The council shall also have general powers of appointment for the municipality to the extent that such powers do not conflict with any existing general or local laws of this state or this article. Subject to the mayor’s power of appointment set forth in Section 11-43A-82, the council shall appoint the members of all standing and ad hoc committees created or established by the council.
At the first regular council meeting following each municipal election, the council shall elect, by majority vote of the council, its president and president pro tem. In the event of the mayor’s absence from any meeting of the council, the president shall preside over the meeting. In the event of the mayor’s and the president’s absence from any meeting of the council, the president pro tem shall preside over the meeting. The president and president pro tem shall be full voting members of the council.
*(Acts 1991, No. 91-545, p. 973, §14.)*
##### **§ 11-43A-84** Appointment of City Manager; Temporary Acting City Manager; Term of City Manager; Removal; Actions by Council or Its Members Prohibited or Restricted {#sec-11-43a-84 omnilex-key=us-al-statutes--title-11--11-43A-84}
(a) The council, by a majority vote of the whole qualified membership of the council, shall appoint a city manager who shall be an officer of the city and shall have the powers to perform the duties provided in this article. No councilman shall receive such appointment during the term for which he shall have been elected nor within one year after expiration of his term. Any civil service act which may be applicable to the municipality shall not apply to the appointment or removal of the city manager.
(b) A temporary acting city manager may be designated by the council to serve for not more than four months in the following events, but only in these events: (1) When the first council takes office after adoption of this article; or (2) following the removal of any permanent city manager.
(c) Such temporary acting city manager shall perform the duties and assume the obligations of the office of city manager and may be removed by the council at any time. If the council shall permit the temporary acting manager to serve for longer than four months, he shall become the permanent city manager.
(d) The council shall appoint the city manager for an indefinite term, and the council may remove him at any time by a majority vote of the whole qualified membership of the council.
(e) Neither the council nor any of its members shall direct or request the appointment of any person to or his removal from office by the city manager, nor shall they take part in any manner in the appointment or removal of officers and employees in administrative service to the city. Except for the purpose of inquiry, the mayor and the members of the council shall deal with the administrative services and employees only through the city manager, and neither the mayor nor any member of the council shall give orders to any subordinates of the city manager, either publicly or privately. Any mayor or member of the council violating the provisions of this section, or voting for a resolution or ordinance in violation of this section, shall be guilty of a Class C misdemeanor. Upon conviction of a second violation of this section, the person so convicted shall forfeit his office.
*(Acts 1991, No. 91-545, p. 973, §15.)*
##### **§ 11-43A-85** Qualifications of City Manager; Duties and Powers; Designation or Appointment of Administrative Officer to Perform Duties of Manager During Temporary Absence or Disability {#sec-11-43a-85 omnilex-key=us-al-statutes--title-11--11-43A-85}
(a) The city manager shall be chosen by the council solely on the basis of his executive and administrative qualifications with special reference to his actual experience in, or his knowledge of, accepted practice with respect to the duties of his office as hereinafter set forth. At the time of appointment, the city manager may but need not be a resident of the municipality or state, but within 90 days of the beginning of employment, he shall become a resident and shall continue to reside within the municipality during his employment.
(b) The city manager shall be the head of the administrative branch of the municipal government. He shall be responsible to the council for the proper administration of all affairs of the municipality and, subject to the provisions of any civil service or merit system law applicable to such municipality and except as otherwise provided herein, he shall have power and shall be required to:
(1) Enforce all laws and ordinances;
(2) Appoint and, when necessary, remove all officers and employees of the municipality, except as otherwise provided by this article and except as he may authorize the head of a department or office to appoint and remove subordinates in such department or office; provided that he shall not appoint or remove the officers, employees, or members of:
a. Any library board of the municipality;
b. Any park, recreation, fair, or exhibit board of the municipality;
c. Any utilities board of the municipality, including, without limitation, electric, gas, sewer, and water boards or agencies;
d. Any school board of the municipality;
e. Any hospital board of the municipality;
f. Any airport board of the municipality;
g. Any housing authority or public building authority of the municipality;
h. Any plumbers board or electricians board of the municipality;
i. Any planning board or commission of the municipality;
j. Any zoning board or commission of the municipality;
k. Any medical clinic board of the municipality;
l. Any board of adjustment of the municipality; or
m. Any industrial development board of the municipality;
(3) Exercise administrative supervision and control over all officers, employees, offices, departments, boards, and agencies created by this article or hereafter created by the council, except for those enumerated in paragraphs a. to m. of subdivision (2), inclusive, set out above in this section and except those otherwise given independent status by law, and subject to any civil service or merit system law in effect in such municipality;
(4) Keep the council fully advised as to the financial conditions and needs of the municipality; to prepare and submit a budget proposal annually to the council and be responsible for its administration after its adoption; to prepare and submit, as of the end of the fiscal year, a complete report on the financial and administrative activities of the municipality for such year;
(5) Recommend to the council such actions as he may deem desirable;
(6) Prepare and submit to the council such reports as may be required of him; and
(7) Perform such other duties as may be prescribed by this article or required of him by ordinance or by resolution of the council not inconsistent with this article.
(c) To perform his duties during his temporary absence or temporary disability, the manager may designate by letter filed with the city clerk a qualified administrative officer of the municipality. In the event of failure of the manager to make such designation, the council may by resolution appoint a qualified administrative officer of the municipality to perform the duties of the manager until he shall return or his disability shall cease.
*(Acts 1991, No. 91-545, p. 973, §16.)*
##### **§ 11-43A-86** Clerk of Municipality; When Subject to Civil Service or Merit System; Duties {#sec-11-43a-86 omnilex-key=us-al-statutes--title-11--11-43A-86}
If the clerk of any municipality which adopts the council-manager form of government under this article holds office subject to any civil service law or merit system, such clerk shall continue to be the clerk under the council-manager form of government hereunder, and his successor shall be selected and hold office subject to the provisions of such civil service law or merit system. If the clerk of any municipality which adopts the council-manager form of government under this article does not hold office subject to any civil service law or merit system, the council shall elect the clerk by a majority vote of the whole qualified membership of the council. The clerk shall give notice of the meetings of the council and shall keep the journal of its proceedings, which shall be authenticated by his signature. He shall record in full in said journal all ordinances, resolutions, and minutes of all meetings of the council. He shall perform such other duties as shall be required by this article, by legal ordinance, or by the general laws of Alabama upon clerks and as to which other provisions are not made in this article. The clerk shall keep the journal open for public inspection at all reasonable times.
*(Acts 1991, No. 91-545, p. 973, §17.)*
##### **§ 11-43A-87** Times for Meeting of Council; Open to Public {#sec-11-43a-87 omnilex-key=us-al-statutes--title-11--11-43A-87}
The council shall meet regularly at such times as may be prescribed by its rules, but not less frequently than twice each month. All meetings of the council shall be open to the public to the extent required by law.
*(Acts 1991, No. 91-545, p. 973, §18.)*
##### **§ 11-43A-88** Council to Be Judge of Election and Members’ Qualifications; Investigation; Judicial Review {#sec-11-43a-88 omnilex-key=us-al-statutes--title-11--11-43A-88}
The council shall be the judge of the election and qualifications of its members and, for the purpose of investigating such election and qualifications, shall have the power to subpoena witnesses and to require the production of records, but the decision of the council in any such case shall be subject to review by a court of competent jurisdiction.
*(Acts 1991, No. 91-545, p. 973, §19.)*
##### **§ 11-43A-89** Rules of Council {#sec-11-43a-89 omnilex-key=us-al-statutes--title-11--11-43A-89}
The council shall determine its own rules and order of business, and such rules shall be established by ordinance.
*(Acts 1991, No. 91-545, p. 973, §20.)*
##### **§ 11-43A-90** Regular Public Meetings of Council; Adjourned, Called, Special, or Other Meetings; Quorum; When Vote of Majority of Quorum Sufficient; When Vote of Majority of Council Required; Procedure; Record of Proceedings; Journal; Unanimous Consent for Passage of Certain Ordinances at Meeting Where Introduced; Publication of Ordinances {#sec-11-43a-90 omnilex-key=us-al-statutes--title-11--11-43A-90}
The council shall hold regular public meetings as may be prescribed by its own rules, provided that a regular hour and day shall be fixed by the order of the council and publicly announced. It may also hold adjourned, called, special, or other meetings as the business of the municipality may require. A majority of the whole qualified membership of the council shall constitute a quorum for the transaction of any and all business of the council. Except as otherwise provided herein, the affirmative vote of a majority of the quorum shall be necessary and sufficient for the passage of any resolution, rule, or ordinance or the transaction of any business of any sort by the said council or the exercise of any of the powers conferred upon it by the terms of this article, but no resolution or ordinance of a general and permanent nature and no ordinance granting a franchise shall be adopted but by a vote of a majority of the whole qualified membership of the council. No resolution or ordinance granting a franchise, appropriating any money for any purpose, providing for public improvements, providing for regulation concerning the public health, or otherwise of a general and permanent nature shall be enacted except at a regular public meeting of the council or an adjournment meeting thereof. Unless the council’s rules of procedure theretofore adopted provide otherwise, every ordinance introduced shall be in writing and read in full before any vote thereon shall be taken and the yeas and nays shall be recorded. A record of the proceedings of every meeting of the council shall be taken and prepared by the clerk and the record of the proceedings of the meeting shall, when approved by the council, be signed by the presiding official and the clerk and entered in the journal. The journal shall be kept available for inspection by all persons at all reasonable times. No ordinance or resolution of a general and permanent nature shall be adopted by the council at the same meeting at which it is introduced unless unanimous consent of those present is given for the immediate consideration of such ordinance or resolution, with such consent to be shown by a vote taken by yeas and nays and the names of the members voting shall be entered upon the minutes of said meeting. Publication of ordinances shall be as provided in Section 11-45-8.
*(Acts 1991, No. 91-545, p. 973, §21.)*
##### **§ 11-43A-91** Thirty-Day Delay in Effect of Ordinances Granting Franchises, Etc.; Publication at Expense of Grantee {#sec-11-43a-91 omnilex-key=us-al-statutes--title-11--11-43A-91}
No ordinance granting to any person, firm, or corporation any franchise, lease, or right to use the streets, public highways, thoroughfares, or public property of the municipality shall take effect or be enforced until 30 days after final enactment of same by the council and publication of said ordinance as provided by law, which publication shall be made at the expense of the person, firm, or corporation applying for said grant.
*(Acts 1991, No. 91-545, p. 973, §22.)*
##### **§ 11-43A-92** Codification and Revision of Ordinances and Resolutions {#sec-11-43a-92 omnilex-key=us-al-statutes--title-11--11-43A-92}
The council may provide for the codification of its ordinances and permanent resolutions and any revisions thereof.
*(Acts 1991, No. 91-545, p. 973, §23.)*
##### **§ 11-43A-93** Monthly Statement and Summary; Annual Examination of Books and Accounts; Publication of Results {#sec-11-43a-93 omnilex-key=us-al-statutes--title-11--11-43A-93}
The city manager shall each month make available to the council a detailed statement of all receipts and expenses of the municipality, and the council shall make available to the city manager a summary of its proceedings during the preceding month and at the end of each year. At the end of each fiscal year, the council shall cause a full and complete examination of all books and accounts of the municipality to be made by a qualified public accountant and shall cause the results of such examination to be published in pamphlet form, copies of which shall be placed in the office of the city manager, the office of clerk, and in the public library to be open for inspection by all persons.
*(Acts 1991, No. 91-545, p. 973, §24.)*
##### **§ 11-43A-94** Fiscal, Budget, and Accounting Year; Submission and Adoption of Budget; Changes in Budget {#sec-11-43a-94 omnilex-key=us-al-statutes--title-11--11-43A-94}
(a) The fiscal year of the municipality shall begin on the first day of each October in each year and shall end on the last day of September. Such fiscal year shall also constitute the budget and accounting year. As used in this article, the term “budget year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
(b) The city manager, at least 45 days prior to the beginning of each budget year, shall submit to the council a budget proposal with explanations. The council shall adopt a budget, by ordinance, prior to the beginning of each fiscal year. The budget so adopted shall be a public record and shall be available for inspection by the general public. Any changes in the budget during the course of the budget year shall be made by ordinance.
*(Acts 1991, No. 91-545, p. 973, §25.)*
##### **§ 11-43A-95** Municipal Treasurer; Establishment of Office and Assignment of Duties; Election; Assignment of Duties for City Clerk as Clerk-Treasurer {#sec-11-43a-95 omnilex-key=us-al-statutes--title-11--11-43A-95}
(a) The council may establish, by ordinance, the office of municipal treasurer and shall assign to such office the duties and responsibilities which it deems necessary. The treasurer shall be the custodian of the funds of the municipality, shall keep an accurate record of the funds of the several departments, and shall keep books accurately reflecting the financial condition of the municipality. The appointment of a person as treasurer shall require a majority vote of the whole qualified membership of the council.
(b) The duties of the treasurer may, by ordinance, be assigned to the city clerk and if such duties are assigned, such officer shall be known as the clerk-treasurer of the municipality.
*(Acts 1991, No. 91-545, p. 973, §26.)*
##### **§ 11-43A-96** Payment and Deposit of Municipal Funds {#sec-11-43a-96 omnilex-key=us-al-statutes--title-11--11-43A-96}
The council shall prescribe, by ordinance, the method of paying out funds of the municipality. Checks and warrants shall be signed by at least two officers of the municipality who shall be designated by the council by ordinance. All funds of the municipality shall be deposited in such depositories as may be designated by resolution of the council.
*(Acts 1991, No. 91-545, p. 973, §27.)*
##### **§ 11-43A-97** Reapportionment of Council Districts; Filing of Recommended Plan with Council; Redistricting Ordinances; Effect on Incumbent {#sec-11-43a-97 omnilex-key=us-al-statutes--title-11--11-43A-97}
Whenever there shall be a change in the population of any of the council districts according to the federal decennial census of population published following the last federal decennial census of population preceding the adoption of this article, or by virtue of a substantial change in the corporate limits, there shall be a reapportionment of the council districts in the manner hereinafter provided:
(1) The manager shall within six months after the publication of each federal decennial census of population for the municipality, following the last federal decennial census of population preceding the adoption of this article, or within six months after any substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous and, to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well-defined boundaries; and
b. Each district shall contain as nearly as is possible the same population;
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the manager shall become effective without enactment by the council, as if it were a duly enacted ordinance;
(3) Such redistricting ordinance shall not apply nor be effective until the next regularly scheduled municipal election thereafter as provided by state law. No incumbent councilman shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1991, No. 91-545, p. 973, §28.)*
##### **§ 11-43A-98** Effect of Article on Rights and Privileges of Officers, Employees, Departments, Boards, Etc {#sec-11-43a-98 omnilex-key=us-al-statutes--title-11--11-43A-98}
Nothing in this article, except as may otherwise be specifically provided herein, shall affect or impair the rights and privileges of the officers and employees of the municipality, or any department, board, or agency thereof, as those rights and privileges relate to, among other things, matters of personnel, appointment, rank, grade, tenure of office, promotion, removal, pension rights, retirement rights, and civil rights.
*(Acts 1991, No. 91-545, p. 973, §29.)*
##### **§ 11-43A-99** Continuation in Office of Persons Holding Administrative Office until Different Provision Made; Transfer of Powers and Duties of Abolished Offices {#sec-11-43a-99 omnilex-key=us-al-statutes--title-11--11-43A-99}
All persons holding any administrative office on the date that the council-manager form of government under this article is made effective shall continue in office and in the performance of their respective duties until different provision shall be made for the performance of such duties or until the discontinuance of such office. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency be abolished by this article or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein or by law.
*(Acts 1991, No. 91-545, p. 973, §30.)*
##### **§ 11-43A-100** Continuation in Office of Persons in Civil Service or Merit System {#sec-11-43a-100 omnilex-key=us-al-statutes--title-11--11-43A-100}
Any person holding an office or position in the civil service of the municipality under any civil service law or merit system applicable to the municipality when the council-manager form of government under this article shall be made effective shall continue to hold such office in the civil service of the municipality under such form of government and with the same status, rights, and privileges and subject to the same conditions under the applicable civil service law or merit system.
*(Acts 1991, No. 91-545, p. 973, §31.)*
##### **§ 11-43A-101** Transfer of Records, Property, and Equipment When Duties and Powers of Office, Department, Etc., Reassigned {#sec-11-43a-101 omnilex-key=us-al-statutes--title-11--11-43A-101}
If the powers and duties of any office, department, board, or agency of the municipality are by this article assigned to another office, department, board, or agency, then all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, board, or agency to which such powers and duties are so assigned.
*(Acts 1991, No. 91-545, p. 973, §32.)*
##### **§ 11-43A-102** Continuation of Offices, Departments, Etc., until Otherwise Provided {#sec-11-43a-102 omnilex-key=us-al-statutes--title-11--11-43A-102}
Any office, department, board, or agency provided for in this article with a name or with powers and duties which are the same or substantially the same as those of any office, department, board, or agency heretofore existing shall continue to exercise its powers and duties, unless and until otherwise provided. Any provision of law, rule, regulation, contract, grant, or other right relating to any such formerly existing office, department, board, or agency shall, so far as not inconsistent with the provisions of this article, apply to any office, department, board, or agency provided for herein.
*(Acts 1991, No. 91-545, p. 973, §33.)*
##### **§ 11-43A-103** Continuation of Contracts; Completion of Public Improvements {#sec-11-43a-103 omnilex-key=us-al-statutes--title-11--11-43A-103}
All contracts and other obligations entered into by the municipality, or for its benefit, prior to the adoption by the municipality of the council-manager form of government under this article shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time the council-manager form of government under this article is made effective shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1991, No. 91-545, p. 973, §34.)*
##### **§ 11-43A-104** Effect of Article on Pending Litigation {#sec-11-43a-104 omnilex-key=us-al-statutes--title-11--11-43A-104}
No action or proceeding, civil or criminal, pending at the time of the adoption of the council-manager form of government under this article, brought by or against the municipality or any office, department, board, or agency thereof, shall be affected or abated by the adoption of the council-manager form of government under this article or by anything herein contained in this article.
*(Acts 1991, No. 91-545, p. 973, §35.)*
##### **§ 11-43A-105** Continuation of Laws Relating to Boards, Authorities, Agencies, Etc., with Independent Status until Otherwise Provided {#sec-11-43a-105 omnilex-key=us-al-statutes--title-11--11-43A-105}
All laws relating to any school board, library board, hospital board, airport board, housing authority, plumbers or electricians board, planning board or commission, zoning board, board of adjustment, park or recreation board, industrial development board, medical clinic board, utilities board, or any municipally-owned service enterprise, including, without limitation, electric, gas, sewer, and water boards or agencies, and to any board, authority, or agency having independent status, which may apply at the time the council-manager form of government under this article is made effective, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board, or agency, unless and until otherwise provided by law.
*(Acts 1991, No. 91-545, p. 973, §36.)*
##### **§ 11-43A-106** Continuation of Ordinances and Resolutions Unless and until Changed or {#sec-11-43a-106 omnilex-key=us-al-statutes--title-11--11-43A-106}
*[Repealed]*
All ordinances and resolutions of the municipality in effect at the time of the adoption of the council-manager form of government under this article shall continue in effect unless and until changed or repealed by the council.
*(Acts 1991, No. 91-545, p. 973, §37.)*
##### **§ 11-43A-107** Discrimination Prohibited {#sec-11-43a-107 omnilex-key=us-al-statutes--title-11--11-43A-107}
No person shall be appointed to or removed from, or in any way favored or discriminated against with respect to, any municipal position or appointed municipal administrative office because of race, sex, political or religious opinions or affiliations.
*(Acts 1991, No. 91-545, p. 973, §38.)*
##### **§ 11-43A-108** Right of City Manager, Directors of Departments, Etc., to Attend Council Meetings and Take Part in Discussions; City Manager to Be Notified of All Council Meetings {#sec-11-43a-108 omnilex-key=us-al-statutes--title-11--11-43A-108}
The city manager, the directors of all departments, and such other officers of the municipality as may be designated by the council shall be entitled to attend meetings of the council, but they shall have no vote thereon. The city manager shall have the right to take part in the discussions of all matters coming before the council, and the directors and other officers shall be entitled to take part in all discussions of the council relating to their respective offices, departments, boards, or agencies. The city manager shall be notified of all council meetings.
*(Acts 1991, No. 91-545, p. 973, §39.)*
##### **§ 11-43A-109** Right of Council, City Manager, and Designees to Investigate Municipal Affairs, Etc {#sec-11-43a-109 omnilex-key=us-al-statutes--title-11--11-43A-109}
The council and the city manager, or any person or committee authorized by either of them, shall have the power to inquire into the conduct of any office, department, board, commission, agency, or officer of the municipality. Either of them may make investigations of municipal affairs and may compel the production of books, papers, and other evidence for that purpose.
*(Acts 1991, No. 91-545, p. 973, §40.)*
##### **§ 11-43A-110** Limits on Contracts Involving Money Payments; Requirements for Validity {#sec-11-43a-110 omnilex-key=us-al-statutes--title-11--11-43A-110}
No contract involving the payment of money out of the appropriation of more than one year shall be made for a period of more than five years, nor shall any such contract be valid unless made or approved by ordinance and signed in the name of the municipality by the mayor and countersigned by the city manager.
*(Acts 1991, No. 91-545, p. 973, §41.)*
##### **§ 11-43A-111** Bond of City Manager and Other Officers and Employees {#sec-11-43a-111 omnilex-key=us-al-statutes--title-11--11-43A-111}
The city manager, and other officers or employees whom the council may by ordinance require, shall give bond in such amount, for such matters and with such surety as may be approved by the council. The premiums on such bonds shall be paid by the municipality.
*(Acts 1991, No. 91-545, p. 973, §42.)*
##### **§ 11-43A-112** Oath or Affirmation of Mayor, Councilmen, Officers, and Employees {#sec-11-43a-112 omnilex-key=us-al-statutes--title-11--11-43A-112}
The mayor and every councilman, officer, and employee of the municipality shall, before entering upon the duties of his office, take and subscribe to the following oath or affirmation, to be filed and kept in the office of the clerk:
“I solemnly swear (or affirm) that I am eligible for the office of _______ and will execute the duties of same according to the best of my ability, and that I will support the constitutions and will obey the laws of the United States and of the State of Alabama; that I will, in all respects, observe the provisions of the ordinances of the City of _______ and will faithfully discharge the duties of the office of _______.”
*(Acts 1991, No. 91-545, p. 973, §43.)*
##### **§ 11-43A-113** Referendum to Determine Form of Government {#sec-11-43a-113 omnilex-key=us-al-statutes--title-11--11-43A-113}
Between October 1, 1991, and March 31, 1992, any municipality adopting the council-manager form of government under this article, regardless of which effective date is chosen in the ordinance referenced in Section 11-43A-70, shall conduct a referendum for the purpose of determining whether after the first Monday in October following the next regularly scheduled municipal election, the municipality shall operate under the council-manager form of government as prescribed herein or, in the alternative, under the mayor-council form of government as set forth in Section 11-43-1 et seq. The council shall give advance notice of the time and purpose of such referendum by publication once each week for four consecutive weeks in a newspaper of general circulation in the municipality. All qualified electors of the municipality may participate in said referendum and the questions to be decided shall be plainly printed upon the ballot. The referendum shall be conducted, the expenses paid, the votes canvassed, and the results declared in the same manner as provided by the applicable general municipal election laws, unless otherwise provided herein. The form of government for which the majority of votes are cast shall thereafter be adopted by the municipality as its form of government at the time and in the manner prescribed herein. Within five days of the declaration of the referendum results, the city clerk shall transmit to the Governor, to the Secretary of State, and to the judge of probate of the county in which the municipality is located, a certificate setting forth such results.
*(Acts 1991, No. 91-545, p. 973, §44.)*
##### **§ 11-43A-114** Referendum Ballots {#sec-11-43a-114 omnilex-key=us-al-statutes--title-11--11-43A-114}
At such referendum, the proposition to be submitted shall be printed in plain prominent type on ballots separate and distinct from ballots used for any other office or question and shall read as follows:
“Check one of the following:
”(1) The City of _______ shall adopt and operate under the council-manager form of government pursuant to the ‘Council-Manager Act of 1991.’
“Yes ( ).
“or
”(2) The City of _______ shall adopt and operate under the mayor-council form of government pursuant to Section 11-43-1 et seq.
“Yes ( ).”
The voter shall mark his ballot with a cross mark (X) after the proposition which expresses his choice. If voting machines are used at any voting place in such election, the above propositions may, at the discretion of the election commission or other body or official having charge of the conduct of municipal elections, be submitted as separate propositions on voting machines so used.
*(Acts 1991, No. 91-545, p. 973, §45.)*
##### **§ 11-43A-115** Adoption of Form of Government by Majority of Votes {#sec-11-43a-115 omnilex-key=us-al-statutes--title-11--11-43A-115}
If the majority of votes are in favor of the council-manager form of government, then the council-manager form of government under this article shall, without further action, be adopted (or continued, if then currently in effect) by the municipality on the first Monday in October following the next regularly scheduled municipal election. If the majority of votes are in favor of the mayor-council form of government, then the mayor-council form of government as prescribed in Section 11-43-1 et seq., shall, without further action, be adopted by the municipality on the first Monday in October following the next regularly scheduled municipal election, and this article shall no longer apply. If the mayor-council form of government is so adopted, then municipalities having a council elected from seven single-member districts shall continue to have seven districts with the same boundaries. Under such circumstances, there shall be no need for such municipality to adopt a separate ordinance as contemplated by Section 11-43-63.
*(Acts 1991, No. 91-545, p. 973, §46.)*
##### **§ 11-43A-116** Effect of Article on Existing Laws {#sec-11-43a-116 omnilex-key=us-al-statutes--title-11--11-43A-116}
All laws and parts of laws, general, local, or special, relating to or affecting such municipality, its powers, functions, duties, corporate limits, or property, which are in force when this article shall take effect are hereby continued in effect; but all laws and parts of laws relating to the powers, functions, and duties under any prior form of government shall be superseded to the extent that the same apply to any municipality electing to come within the provisions of this article and are inconsistent with the provisions of this article.
*(Acts 1991, No. 91-545, p. 973, §47.)*
### **Chapter 43B** Mayor-Council Form of Government in Class 4 Municipalities
##### **§ 11-43B-1** Authority to Adopt Mayor-Council Form of Government {#sec-11-43b-1 omnilex-key=us-al-statutes--title-11--11-43B-1}
Within three months of the approval of this chapter the governing body of a Class 4 municipality by a majority vote of the members of that governing body may adopt an ordinance adopting the mayor-council form of government pursuant to the terms and conditions of this chapter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §1.)*
##### **§ 11-43B-2** Election Date; When Mayor-Council Form of Government Deemed Adopted {#sec-11-43b-2 omnilex-key=us-al-statutes--title-11--11-43B-2}
An election for mayor and members of the city council shall be held on the second Tuesday in July, 1986, with a runoff, if necessary, on the third Tuesday next thereafter. Upon the qualification and assumption of office of the council and mayor on the first Monday in October, 1986, the municipality shall be deemed to have adopted the form of government as herein provided. The municipality shall thereafter be governed by the form of government provided under this chapter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §2.)*
##### **§ 11-43B-3** Terms of Office {#sec-11-43b-3 omnilex-key=us-al-statutes--title-11--11-43B-3}
The mayor and council members elected hereunder shall serve four-year terms with the first election being held as herein provided in section 11-43B-2 and every four years thereafter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §3.)*
##### **§ 11-43B-4** (Amended by Act 2026-586) Conduct of Elections; Residency Requirements; Qualifying Fee; Statement of Campaign Expenses and Contributions {#sec-11-43b-4 omnilex-key=us-al-statutes--title-11--11-43B-4}
**AMENDED BY ACT 2026-586, EFFECTIVE APRIL 16, 2026. SEE ACT FOR REVISED LANGUAGE.**
The initial elections provided for herein, and all subsequent elections, shall be conducted, the vote canvassed, the results declared, and those elected assume the duties of their offices in the same manner as provided by the general law of the state pertaining to municipal elections for mayor-council forms of government, except as otherwise provided by state statute. The mayor shall be elected by the whole of the electors of the city and shall have been a resident of the city for at least 90 days prior to his or her election. Council members shall be elected by the electors of the district which they represent, and shall have been residents of the district which they represent for at least 90 days prior to their election. Any person desiring to become a candidate for mayor or council member must, at the time of filing a statement of candidacy, pay to the city clerk the qualifying fee to be set by ordinance. If any person desiring to become a candidate for mayor or council member is financially unable to pay the filing fee, then that person shall be exempted from the fee upon filing with the city clerk verified statements from three city electors that said candidate is indigent and not financially capable of paying the fee. Within 30 days after the election, every candidate shall file with the city clerk a sworn statement of all election campaign expenses and of each person, firm, or corporation which has contributed funds, itemized for all expenditures and contributions of $100.00 or more.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §4.)*
##### **§ 11-43B-5** Salary and Expenses of Mayor and Council Members; Participation in Hospitalization, Medical Care, and Insurance Programs {#sec-11-43b-5 omnilex-key=us-al-statutes--title-11--11-43B-5}
In addition to any salary set by ordinance, the mayor and council members shall receive their actual and necessary expenses as approved by a majority of the council incurred in the performance of their duties, but they shall not receive a fixed expense allowance. The mayor and council members shall be entitled to participate in the municipality’s hospitalization, medical care, and insurance programs to the same extent as other employees.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §5.)*
##### **§ 11-43B-6** Holding of Other Public Office During Term as Council Member; Holding of Compensated Appointive Office by Former Council Member or Mayor {#sec-11-43b-6 omnilex-key=us-al-statutes--title-11--11-43B-6}
Except where clearly authorized by law, no council member shall hold any other public office or be employed by the city during the term for which the member was elected to the council. No former council member or mayor shall hold any compensated appointive city office or employment until one year after the expiration of the term for which the person was elected or appointed.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §6.)*
##### **§ 11-43B-7** Council Not to Direct Appointment or Removal of Any Person from Office; Appointment of Civil Service Employees; Limits on Supervision of Employees by Council {#sec-11-43b-7 omnilex-key=us-al-statutes--title-11--11-43B-7}
Neither the council nor any of its members shall direct or request the mayor or any employee of the city to appoint or remove any person from office or position, or in any manner take part in the appointment or removal of employees in the service of the city; but the council may express its views and freely and fully discuss with the mayor anything pertaining to the work of any employee. Employees of the city subject to civil service appointment shall be appointed pursuant to the applicable law, rule, and regulation, and in the event that such law, rule, or regulation should allow a selection by the city from among qualified candidates, such selection shall be made by the mayor. Except for the purpose of investigation or inquiry, neither the council nor any of its members shall either publicly or privately supervise, order, or give directions to any employee of the city, but shall deal with the administrative service only through the mayor. The provisions of this section shall not apply to the election or appointment of any person who is not an employee of the city to any board or agency funded or supported in whole or in part by the city.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §7.)*
##### **§ 11-43B-8** Government Known as Mayor-Council Form of Government; Powers Vested in Council; Agenda of Meetings; Exercise of Powers; Quorum {#sec-11-43b-8 omnilex-key=us-al-statutes--title-11--11-43B-8}
The government of any such city operating under this chapter shall be known as the mayor-council form of government. Pursuant to the provisions and limitations of this chapter and subject to the limitations imposed by the Constitution and laws of Alabama, all powers of the city shall be vested in the council. The council is the sole authority to set the agenda for any of its meetings. All powers of the city shall be exercised in the manner prescribed by this chapter or, if the manner is not prescribed herein, in the manner prescribed by law or ordinance. A majority of the council members shall constitute a quorum for the transaction of any business of the council.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §8.)*
##### **§ 11-43B-9** (Amended by Act 2026-500) Statement of Receipts and Expenses; Audit of Books and Accounts; Publication of Audit; Submission of Audit to Mayor {#sec-11-43b-9 omnilex-key=us-al-statutes--title-11--11-43B-9}
**AMENDED BY ACT 2026-500, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
The mayor shall, from time to time, prepare a detailed statement of all receipts and expenses of the city. At the end of each fiscal year the council shall cause the books and accounts of the city to be audited by a reputable, disinterested certified public accountant. The same accountant shall not conduct the audit for more than three consecutive fiscal years. A true summary of the annual audit report shall be published once in a newspaper of general circulation in the city. The audit report shall be submitted by the mayor to the council at its first meeting after the completion of such report.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §9.)*
##### **§ 11-43B-10** Budget, Appropriations, and Expenditures {#sec-11-43b-10 omnilex-key=us-al-statutes--title-11--11-43B-10}
The mayor shall annually prepare and submit a proposed budget to the council. After public hearing the council shall adopt an ordinance providing the municipal budget. Adoption of the budget shall constitute appropriation of the amounts specified therein from the funds indicated. If the council fails to adopt a budget for the ensuing fiscal year by the first day of the fiscal year, the amounts appropriated for the preceding year shall be deemed to be appropriated for the ensuing year on a month-to-month basis until such time as the council adopts a budget. Every general fund appropriation shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered, except that an appropriation for a capital expenditure shall not lapse until the purpose for which it was made is accomplished or abandoned or until three years pass without any disbursement from or encumbrance of the appropriation. Any appropriation may be decreased or increased by ordinance amending the budget. Part or all of an unencumbered balance may be transferred by the mayor within an appropriation. No expenditure may be made unless the finance director or other designee of the mayor first certifies that there is a sufficient unencumbered balance in the appropriate allotment or appropriation. If the mayor shall disapprove of the budget adopted by the council, within 10 days of the time of its passage by the council he shall return the same to the clerk with written objections and the clerk shall bring this to the next meeting of the council. A majority vote of the total membership of the council shall be necessary to override any veto of the budget by the mayor.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §10.)*
##### **§ 11-43B-11** President of Council; President Pro Tempore Appointed Upon Failure or Refusal to Act {#sec-11-43b-11 omnilex-key=us-al-statutes--title-11--11-43B-11}
The council shall elect from its members a president of the council. In the event of a failure or refusal of the president of the council to act, the council may appoint one of its members to act as president pro tempore with like effect, and this appointment shall be entered in the minutes of the council.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §11.)*
##### **§ 11-43B-12** Vacancies in Offices of Mayor, President of Council, and Councilman {#sec-11-43b-12 omnilex-key=us-al-statutes--title-11--11-43B-12}
In the event of a vacancy, from any cause, in the office of mayor, the council shall appoint a person to succeed to the office of mayor for the unexpired term. In the event of a vacancy in the office of the president of the council, the office shall be filled from the membership of the council. In the event of a vacancy, from any cause, in the office of councilman, the council shall appoint a person from the district in which such vacancy occurs to succeed to the office of councilman for the unexpired term.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §12.)*
##### **§ 11-43B-13** Franchise or Lease of Right to Use Streets or Public Property {#sec-11-43b-13 omnilex-key=us-al-statutes--title-11--11-43B-13}
No ordinance granting to any person, firm, or corporation of any franchise or lease of right to use the streets, public highways, thoroughfares or public property of the city shall take effect and be enforced until 30 days after final enactment of same by the council and publication of said ordinance as required by law. The publication shall be made at the expense of the person, firm, or corporation applying for said grant.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §13.)*
##### **§ 11-43B-14** Initial Territorial Limits {#sec-11-43b-14 omnilex-key=us-al-statutes--title-11--11-43B-14}
The initial territorial limits of any municipality which adopts the mayor-council form of government as provided by this chapter shall be the same as under its former organization.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §14.)*
##### **§ 11-43B-15** Number of Council Members; Boundaries of Districts {#sec-11-43b-15 omnilex-key=us-al-statutes--title-11--11-43B-15}
The council shall be composed of seven members. The boundaries of the districts shall be established by ordinance adopted at least six months prior to the next regular municipal election.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §15.)*
##### **§ 11-43B-16** Redistricting of Boundaries After Publication of Census or Change in Corporate Limits {#sec-11-43b-16 omnilex-key=us-al-statutes--title-11--11-43B-16}
After the publication of a federal census of population or a substantial change in the corporate limits, if any council district contains a population which is 10 percent more or less than the total population of the city divided by the number of council districts, then the council shall redistrict the boundaries in the following manner:
(1) Within six months after the publication of such a census or after such a change in the corporate limits, the mayor shall file with the council a report recommending a plan for redistricting of the boundaries in accordance with the following standards:
a. Each district shall be formed of contiguous and, to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well-defined boundaries;
b. Each district shall contain as nearly as possible the same population, but shall not vary by more than five percent from the average.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact a redistricting ordinance within that period, the redistricting plan submitted by the mayor shall automatically become effective, without any action by the council, as if it were a duly adopted ordinance.
(3) No redistricting ordinance shall apply to any election held within six months after it becomes effective. No new district boundary shall become effective until the next regular municipal election. No term of an incumbent member of the council shall be shortened because of any redistricting.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §16.)*
##### **§ 11-43B-17** Creation of Departments, Etc., by Ordinance; Discontinuance of Functions Assigned by Law {#sec-11-43b-17 omnilex-key=us-al-statutes--title-11--11-43B-17}
By ordinance, the council may establish city departments, boards, offices, or agencies and may prescribe the functions thereof, except that no function assigned by law to a particular department, board, office, or agency may be discontinued unless this chapter specifically so provides.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §17.)*
##### **§ 11-43B-18** Limit on Duration of Contracts; Validity of Contracts {#sec-11-43b-18 omnilex-key=us-al-statutes--title-11--11-43B-18}
No contract involving the payment of money out of the budget of more than one fiscal year shall be made for a period of more than five years, nor shall any such contract be valid unless made and approved by the council and signed in the name of the municipality by the mayor.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §18.)*
##### **§ 11-43B-19** Effect of Chapter on Preexisting Rights of Officers and Employees {#sec-11-43b-19 omnilex-key=us-al-statutes--title-11--11-43B-19}
Nothing contained in this chapter, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or of any office, department, board, or agency existing at the time when this chapter shall take effect in the municipality, or any provision of law enforced at the time when the mayor-council form of government shall be adopted and not inconsistent with the provisions of this chapter in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension and retirement rights, civil rights, or any other rights or privileges of officers or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §19.)*
##### **§ 11-43B-20** Administrative Offices Continued; Exercise of Powers and Duties of Offices, Etc., Abolished by Chapter {#sec-11-43b-20 omnilex-key=us-al-statutes--title-11--11-43B-20}
All persons holding administrative office at the time the mayor-council form of government is adopted shall continue in office and in the performance of their duties until provisions shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency be abolished by this chapter, or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §20.)*
##### **§ 11-43B-21** Transfer of Powers and Duties from Existing Offices to Similar Offices Provided for in This Chapter; Applicability of Laws Relating to Existing Offices {#sec-11-43b-21 omnilex-key=us-al-statutes--title-11--11-43B-21}
Any office, department, board, or agency provided for in this chapter with a name or with powers and duties the same or substantially the same as those of an office, department, board, or agency heretofore existing shall continue to exercise its powers and duties, until otherwise provided. Any provision in any law, rule, regulation, contract, grant, or other document relating to such a formerly existing office, department, board, or agency, shall, so far as not inconsistent with the provisions of this chapter, apply to such office, department, board, or agency provided for by this chapter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §21.)*
##### **§ 11-43B-22** Continuance in Office of Persons Under Existing Civil Service System; Chapter Not to Supersede Existing Civil Service System {#sec-11-43b-22 omnilex-key=us-al-statutes--title-11--11-43B-22}
Any person holding an office or position in the civil service of the municipality under any civil service or merit system applicable to the municipality when the mayor-council form of government shall be adopted shall continue to hold such office in the civil service of the municipality under the mayor-council form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service system. Where there is an existing civil service act, then that act shall remain in full force and effect and this chapter shall not supersede, modify, or repeal said civil service act.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §22.)*
##### **§ 11-43B-23** Interagency Transfer of Records, Equipment, Etc {#sec-11-43b-23 omnilex-key=us-al-statutes--title-11--11-43B-23}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency by this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency, or part thereof, are by this chapter assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §23.)*
##### **§ 11-43B-24** Continuance of Contracts in Effect {#sec-11-43b-24 omnilex-key=us-al-statutes--title-11--11-43B-24}
All contracts entered into by the city, or for its benefit, prior to the adoption by such city of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the mayor-council form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §24.)*
##### **§ 11-43B-25** Pending Legal Actions and Proceedings {#sec-11-43b-25 omnilex-key=us-al-statutes--title-11--11-43B-25}
No action or proceeding, civil or criminal, pending at the time of the adoption of the mayor-council form of government, brought by or against the municipality or any office, department, board, or agency or officer or employee thereof shall be affected or abated by the adoption of the mayor-council form of government or by anything contained in this chapter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §25.)*
##### **§ 11-43B-26** Pension, Retirement, and Relief Fund Laws Continued in Effect {#sec-11-43b-26 omnilex-key=us-al-statutes--title-11--11-43B-26}
All laws and parts of laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to the municipality at the time when it shall elect to be governed by the provisions of this chapter, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §26.)*
##### **§ 11-43B-27** Laws as to Independent Boards, Authorities, and Agencies Continued in Effect {#sec-11-43b-27 omnilex-key=us-al-statutes--title-11--11-43B-27}
All laws relating to the school board, library board, hospital board, airport board, industrial development boards or authorities, housing authorities, medical clinic boards, plumbers or electricians boards or other technical boards, planning commission, board of adjustment, any municipally owned service enterprise, and any board, authority, agency, etc., given such independent status, as the same may apply and be in effect at the time when the municipality shall elect to be governed by the provisions of this chapter, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board, or agency until otherwise provided by law.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §27.)*
##### **§ 11-43B-28** Powers Generally {#sec-11-43b-28 omnilex-key=us-al-statutes--title-11--11-43B-28}
(a) The municipality shall have all powers granted to municipal corporations and to cities by the Constitution, code, and laws of this state, together with all the implied powers necessary to carry out and execute all the powers granted, as well as any other powers and duties which may heretofore or hereafter be granted to such municipality and which are not inconsistent with this chapter.
(b) The city may acquire property within or without its corporate limits for any purpose, in fee simple or any lesser interest or estate, by purchase, gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage, and control such property as the interest may require.
(c) Except as prohibited by the Constitution of this state or restricted by this chapter, the city shall and may exercise all municipal powers, functions, rights, privileges, and immunities of every name and nature whatsoever.
(d) The enumeration of particular powers by this chapter shall not be deemed to be exclusive, and in addition to the powers enumerated herein or implied hereby, or appropriate to the exercise of such powers, it is intended that the city shall have and may exercise all powers which, under the Constitution of this state, it would be competent for this chapter to specifically enumerate.
(e) The city may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract or otherwise, with any one or more states or civil divisions or agencies thereof, or of the United States or any agency thereof.
(f) All rights, powers, and properties of every description which were vested in any city which adopts the mayor-council form of government as provided by this chapter shall vest in such city under this mayor-council form of government, unless in conflict with the provisions of this chapter.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §28.)*
##### **§ 11-43B-28.1** Increase in Membership of City Board of Education and Waterworks and Sewer Board {#sec-11-43b-28.1 omnilex-key=us-al-statutes--title-11--11-43B-28.1}
In any Class 4 municipality which has adopted a mayor-council form of government pursuant to Chapter 43B (commencing with Section 11-43B-1) of Title 11, the membership of the city board of education and the waterworks and sewer board may be increased to seven members. The additional members shall be appointed in the same manner as the present members are appointed and shall serve the same term as set by law. The initial appointments for the additional positions shall serve for full terms.
*(Acts 1994, No. 94-133, p. 172, §1.)*
##### **§ 11-43B-29** Ordinances and Resolutions Continued in Effect; References to City Commission, Etc., Deemed to Refer to City Council {#sec-11-43b-29 omnilex-key=us-al-statutes--title-11--11-43B-29}
All ordinances and resolutions of the municipality in effect at the time of the adoption of the mayor-council form of government herein established shall continue in effect unless and until changed or repealed by the council. Whenever, in any ordinance, resolution, or law in effect at the time of the adoption of this mayor-council form of government, reference is made to a member of the governing body (by whatever name), the same shall be construed to refer to the mayor. Whenever in any ordinance, resolution, or law in effect at the time of the adoption of this mayor-council form of government, reference is made to the city commission, board of commissioners, the governing body, or like term, the same shall be construed to refer to the city council.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §29.)*
##### **§ 11-43B-30** Purchase of Labor Services, Materials, Etc., from Elected Officials or Employees {#sec-11-43b-30 omnilex-key=us-al-statutes--title-11--11-43B-30}
Notwithstanding any statute or law to the contrary, any Class 4 municipality which adopts this form of mayor-council government may legally purchase or lease from any of the elected officials or employees of such municipality any labor, services, work, materials, equipment, or supplies under the competitive bidding procedures established by Section 41-16-50 et seq., and such elected official or employee may legally sell same to the municipality under those procedures. The elected official or employee, if he or she proposes to bid, shall not participate in the decision-making process determining the need for or the purchase of such personal service or personal property, or in the determination of the successful bidder. The council shall affirmatively find that the elected official or employee, from whom the purchase is to be made, is the lowest responsible bidder as required by said procedure. It shall be the duty and responsibility of the city clerk to file a copy of any contract awarded to any elected official or employee with the State Ethics Commission. All awards shall be as a result of original bid takings. It is the intention of the Legislature by the adoption of this section to specifically remove any statutory or legal prohibitions against a Class 4 municipality, which has adopted the mayor-council form of government under this chapter, dealing with its elected officials and employees in the purchase of personal services or personal property. In the event an elected official or employee offers to sell or submit a bid to the municipality for the sale of personal property or a contract for furnishing personal services, the official or employee shall make full disclosure of his or her ownership or extent of ownership in the business organization with which he or she is associated. In the event the business organization is a partnership, the names and addresses and percentage of ownership of the partners shall be disclosed. In the event the business organization is a corporation, the names and addresses and percentage of ownership of all stockholders shall be disclosed. The disclosure required hereunder shall be made under oath in the original bid submission to the municipality and in any contract or agreement entered into with the municipality.
The procedures in the preceding paragraph shall be permitted only for the purchase of items for which competitive bidding is required by state law. Otherwise, no elected official or city employee shall be interested, directly or indirectly, in any contract for work or materials, or the profits thereof, or services to be furnished or performed for the city.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §30.)*
##### **§ 11-43B-31** Laws Relating to City Continued in Effect; Inconsistent Laws as to Exercise of Powers and Duties of Other Form of Government; Chapter 44B of This Title Not {#sec-11-43b-31 omnilex-key=us-al-statutes--title-11--11-43B-31}
*[Repealed]*
All laws and parts of laws, general, local, or special, relating to or affecting the city, its powers, functions, duties, and property, in force when this chapter shall take effect, are hereby continued in effect; but all such laws relating to the exercise of the powers, functions, and duties of the commission or some other form of government, shall be superseded to the extent that the same are inconsistent with the provisions of this chapter, and all laws or parts of laws which conflict with this chapter are hereby repealed. This chapter does not repeal Chapter 44B of this title, which provides a different form of mayor-council government for a Class 4 municipality.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §31.)*
##### **§ 11-43B-32** Violation of Chapter {#sec-11-43b-32 omnilex-key=us-al-statutes--title-11--11-43B-32}
Any person who willfully and intentionally violates a provision of this chapter shall upon conviction be guilty of a Class A misdemeanor and shall be punished as provided by the laws of the state of Alabama.
*(Acts 1985, 2nd Ex. Sess., No. 85-926, p. 213, §32.)*
### **Chapter 43C** Mayor-Council Form of Government in Class 5 Municipalities
##### **§ 11-43C-1** Applicability of Chapter {#sec-11-43c-1 omnilex-key=us-al-statutes--title-11--11-43C-1}
This chapter shall apply to any Class 5 municipality in the State of Alabama.
*(Acts 1987, No. 87-102, p. 116, §1.)*
##### **§ 11-43C-2** Special Election as to Adoption of Mayor-Council Form of Government {#sec-11-43c-2 omnilex-key=us-al-statutes--title-11--11-43C-2}
After May 21, 1987, the mayor or chief executive officer of any city to which this chapter applies may call a special election to be held in 1987, for the purpose of determining whether such city shall adopt the mayor-council form of government, and shall give notice of the time and purpose of such election by publication once each week for four consecutive weeks in a newspaper published in said city or in the nearest larger city. All qualified electors of such city may participate in said election, as provided by this chapter, and such questions shall be plainly printed upon the ballot as provided in Section 11-43C-3. The election shall be conducted, the expenses paid, the votes canvassed, and the results declared in the same manner as is or may be provided by law in other city elections. The proposal for which the majority of the votes cast shall be “yes,” or in favor of such proposition, shall thereby be adopted for such city, and the mayor or other chief executive officer shall transmit to the Governor, to the Secretary of State, and to the judge of probate of the county, a certificate stating that such proposition was adopted for such city.
*(Acts 1987, No. 87-102, p. 116, §2.)*
##### **§ 11-43C-3** Form of Ballot; Marking of Ballot; Use of Voting Machines {#sec-11-43c-3 omnilex-key=us-al-statutes--title-11--11-43C-3}
At such election the proposition to be submitted shall be printed in plain prominent type on ballots separate and distinct from ballots used for any other office or question and shall read as follows:
Check one of the following:
(1) Shall the Mayor-Council form of government, as provided by Act ______, be adopted for the City of ___________________ ?
Yes ___________; or No ___________.
The voter shall mark his ballot with a cross mark (X) after the proposition which expresses his choice. If voting machines are used at any voting place in such election, the above proposition may, at the discretion of the election commission or other body or official having charge of the conduct of municipal elections in such city, be submitted as a separate proposition on voting machines so used.
*(Acts 1987, No. 87-102, p. 116, §3.)*
##### **§ 11-43C-4** Conduct of Election; Election Expenses {#sec-11-43c-4 omnilex-key=us-al-statutes--title-11--11-43C-4}
The election shall be held and conducted in accordance with the provisions of Title 11, except as herein otherwise specifically provided. The expenses of any and all elections provided for in this chapter shall be paid by the city.
*(Acts 1987, No. 87-102, p. 116, §4.)*
##### **§ 11-43C-5** Provisions Applicable If Mayor-Council Form of Government Chosen {#sec-11-43c-5 omnilex-key=us-al-statutes--title-11--11-43C-5}
If a majority of the qualified electors voting in the election provided herein vote in favor of a mayor-council form of government, the following provisions of this chapter shall be applicable.
*(Acts 1987, No. 87-102, p. 116, §5.)*
##### **§ 11-43C-6** Election of Mayor and Council Members; Time of Taking Office; Election Expenses {#sec-11-43c-6 omnilex-key=us-al-statutes--title-11--11-43C-6}
An election shall be held in 1988 at the regularly scheduled municipal election and the officials elected shall take office upon the expiration of the present official’s term of office. Five council members to be elected by districts and a mayor to be elected at-large shall be elected and the expense thereof shall be paid by the municipality.
*(Acts 1987, No. 87-102, p. 116, §6.)*
##### **§ 11-43C-7** Qualification of Council Candidates; Votes Cast by Each Voter; Majority Vote Requirements; Runoff Elections; Elections Held Quadrennially; When Elected Councilmen Take Office; Term of Office; Councilman May Succeed Himself {#sec-11-43c-7 omnilex-key=us-al-statutes--title-11--11-43C-7}
Council candidates shall qualify as provided by law and shall have the qualification and eligibility set forth herein. Each voter in the election may cast one vote for a candidate from his district, and one vote for a candidate for mayor. Any district councilman candidate receiving a majority of the total votes cast from the district in which he is a candidate shall be elected as a district councilman in his district. In the event that a district councilman candidate should fail to receive such a majority, then another election shall be held upon the same day of the week three weeks thereafter to be called and held in the same mode and manner and under the same rules and regulations. In the second election there shall be two candidates for each place upon the council to be filled in such runoff election and these candidates shall be the two who received the highest number of votes. The candidate or candidates for the council receiving the highest number of votes cast in the second election shall be elected, so that in the first and second elections five councilmen shall be elected. Regular municipal elections shall be held quadrennially thereafter under the same rules and regulations and in the same mode and manner as provided by law. The councilmen so elected shall take office upon the expiration of the terms of office of the present municipal officeholders. Each councilman shall hold office for four years, but shall serve until his successor shall have qualified. A councilman may succeed himself in office.
*(Acts 1987, No. 87-102, p. 116, §7.)*
##### **§ 11-43C-8** Mayor - Majority Vote Requirements; Runoff Election {#sec-11-43c-8 omnilex-key=us-al-statutes--title-11--11-43C-8}
The candidate for mayor receiving the largest number of votes for the office shall be elected thereto, provided such candidate receives a majority of all votes cast for such office. If at the first election no candidate received a majority of the votes cast for the office, then another election shall be held upon the same day of the week three weeks thereafter to be called and held in the same mode and manner and under the same rules and regulations. In the second election there shall be two candidates for the office of mayor; and these candidates shall be the two who received the highest number of votes for said office at the first election.
*(Acts 1987, No. 87-102, p. 116, §8.)*
##### **§ 11-43C-9** Mayor - Elections Held Quadrennially; Oath; May Succeed Himself {#sec-11-43c-9 omnilex-key=us-al-statutes--title-11--11-43C-9}
The mayor shall qualify and take office in the manner herein prescribed. The regular election for mayor shall be held quadrennially thereafter under the same rules and regulations and in the same mode and manner herein provided. The mayor elected at such regular election shall qualify by making oath that he is eligible for said office and will execute the duties of same according to the best of his knowledge and ability. Said oath may be administered by any person authorized to administer an oath under the laws of Alabama. A mayor may succeed himself.
*(Acts 1987, No. 87-102, p. 116, §9.)*
##### **§ 11-43C-10** City Continued as Municipal Corporation {#sec-11-43c-10 omnilex-key=us-al-statutes--title-11--11-43C-10}
When this mayor-council form of government becomes applicable to a city, said city shall continue as a municipal corporation, within the corporate limits as now established and as may hereafter be fixed in the manner prescribed by law, subject to all duties and obligations then pertaining to or incumbent upon it as a municipal corporation and shall continue to enjoy all the rights, immunities, powers, and franchises then enjoyed by it, as well as those that may thereafter or hereinafter be granted to it.
*(Acts 1987, No. 87-102, p. 116, §10.)*
##### **§ 11-43C-11** Government Known as “Mayor-Council Form of Government”; Powers of City Vested in Council; Manner in Which Powers Exercised {#sec-11-43c-11 omnilex-key=us-al-statutes--title-11--11-43C-11}
The municipal government of any such city proceeding under this chapter shall be known as the “mayor-council form of government.” Pursuant to the provisions and limitations of this chapter and subject to the limitations imposed by the Constitution of Alabama and its laws, all powers of the city shall be vested in the council elected as herein provided and hereinafter referred to as “the council,” which shall enact ordinances, adopt budgets and determine policies. All powers of the city shall be exercised in the manner prescribed by this chapter, or if the manner be not prescribed, then in such manner as may be prescribed by law or by ordinance.
*(Acts 1987, No. 87-102, p. 116, §11.)*
##### **§ 11-43C-12** Powers of City Generally {#sec-11-43c-12 omnilex-key=us-al-statutes--title-11--11-43C-12}
The city shall have all the powers granted to municipal corporations and to cities by the Constitution and laws of this state, together with all the implied powers necessary to carry into execution all the powers granted, and the provisions of this chapter.
*(Acts 1987, No. 87-102, p. 116, §12.)*
##### **§ 11-43C-13** Council to Consist of Five District Council Members; Division of Municipality into Districts; Changing District Boundaries Where Population Varies by Over Five Percent {#sec-11-43c-13 omnilex-key=us-al-statutes--title-11--11-43C-13}
The council shall include five members who shall be known and elected as district council members. Such district council members shall be elected from districts which shall be, as near as practicable, of equal population according to the last federal decennial census. The probate judge of the county in which any such municipality is located shall divide the municipality into five districts which shall be homogeneous in area and shall not vary in population by over five percent. The boundaries as established by the probate judge shall be certified to the governing body of the municipality and shall be used for the election of members of the city council in the 1988 municipal election and for all council elections thereafter. Should any district established in the municipality for the election of council members be found by the probate judge, based on any future federal census, to vary by over five percent in population from any of the other districts, then the probate judge shall change, alter, or rearrange the boundaries of said districts in such manner as to establish five districts which are homogeneous in area and have a population which does not vary by over five percent between said districts.
*(Acts 1987, No. 87-102, p. 116, §13.)*
##### **§ 11-43C-14** District Council Members - Filing as Candidate; Qualifying Fee {#sec-11-43c-14 omnilex-key=us-al-statutes--title-11--11-43C-14}
Any person desiring to become a candidate in any election for the office of district council member may become such candidate by filing in the office of the city clerk, a statement in writing as required by the general municipal election laws. Said statement shall be accompanied by a qualifying fee in the amount of $125.00, which fee shall be paid into the general fund of the city.
*(Acts 1987, No. 87-102, p. 116, §14.)*
##### **§ 11-43C-15** District Council Members - No Primary Elections; Filing of Pauper’s Oath or Petition to Become Candidate {#sec-11-43c-15 omnilex-key=us-al-statutes--title-11--11-43C-15}
No primary election shall be held for the nomination of candidates for the office of council member, and candidates shall be nominated only as provided herein. A person may also become a candidate for the office of council member by filing a verified pauper’s oath with the city clerk, or by filing a verified petition containing an endorsement of candidacy by the signatures and addresses of 500 persons, each of whom is a registered voter residing in the city and within the district for which the individual intends to be a candidate for election to office, provided that no such signature may be obtained more than 12 months preceding the deadline for filing said statements.
*(Acts 1987, No. 87-102, p. 116, §15.)*
##### **§ 11-43C-16** District Council Members - Oath of Office {#sec-11-43c-16 omnilex-key=us-al-statutes--title-11--11-43C-16}
Every person who shall be elected or appointed to fill a vacancy in the office of council member shall, upon assuming office, qualify by making oath that he is eligible for said office and will execute the duties of same according to the best of his knowledge and ability. Said oath may be administered by any person authorized to administer an oath under the laws of the state of Alabama.
*(Acts 1987, No. 87-102, p. 116, §16.)*
##### **§ 11-43C-17** District Council Members - Qualifications; Holding Other Offices; Effect of Conviction or Loss of Any Qualification {#sec-11-43c-17 omnilex-key=us-al-statutes--title-11--11-43C-17}
Councilmen shall be qualified electors of the city and, in the case of candidates for any district, they shall have been residents of the district which they represent for at least 90 days prior to their election, shall reside in the district during their terms of office, and shall have attained the age of 21 years. No councilman shall hold any other public office except that of notary public or member of the National Guard or naval or military reserve, and all shall have been residents of the city for at least one year prior to their election. If the councilman shall cease to possess any of these qualifications or shall be convicted of crime involving moral turpitude, his office shall immediately become vacant.
*(Acts 1987, No. 87-102, p. 116, §17.)*
##### **§ 11-43C-18** District Council Members - Compensation; Additional Stipend for President of Council {#sec-11-43c-18 omnilex-key=us-al-statutes--title-11--11-43C-18}
Each council member shall receive as compensation for his services the sum of $50.00 for each meeting of the council attended, and $400.00 per month. Said salaries shall be payable in monthly installments at the end of each month. The president of the council shall receive an additional stipend not to exceed $100.00 per month. Subsequent to the term of office of the mayor and councilmen elected hereunder, the mayor and each councilman shall receive as compensation for their services the sum established by the municipal governing body at least six months prior to the date of the regular election, but in no event shall salaries be set above those as specified in this chapter.
*(Acts 1987, No. 87-102, p. 116, §18.)*
##### **§ 11-43C-19** President of Council {#sec-11-43c-19 omnilex-key=us-al-statutes--title-11--11-43C-19}
The president of the council shall be elected by the members of the council and shall serve the regular two-year term and may be re-elected for another two-year term. He shall preside at all meetings of the council and shall be a voting member. If a vacancy shall occur in the office of the president of the council, the council shall elect a successor to the president.
*(Acts 1987, No. 87-102, p. 116, §19.)*
##### **§ 11-43C-20** Vice-President of Council {#sec-11-43c-20 omnilex-key=us-al-statutes--title-11--11-43C-20}
The vice-president of the council shall be elected by the members of the council and shall serve a two-year term and may be re-elected for another two-year term. The vice-president will serve in the absence of the president. If a vacancy shall occur in the office of vice-president of the council, the council shall elect a successor to the vice-president.
*(Acts 1987, No. 87-102, p. 116, §20.)*
##### **§ 11-43C-21** Powers of Council; Dealings with Officers and Employees in Administrative Service {#sec-11-43c-21 omnilex-key=us-al-statutes--title-11--11-43C-21}
All legislative powers of the city, including all powers vested in it by this chapter, by the laws, general and local, of the state, and by the Code of Alabama 1975, as amended, and the determination of all matters of legislative policy, shall be vested in the council. Without limitation of the foregoing, the council shall have power to:
(1) Appoint stenographic and clerical employees deemed necessary for service to the council, subject to the provisions of any merit system in effect at such time;
(2) Upon recommendation of the mayor, establish administrative departments and distribute the work of divisions;
(3) Adopt the budget of the city;
(4) Authorize the issuance of bonds or warrants;
(5) Inquire into the conduct of any office, department, or agency of the city and make investigations as to municipal affairs;
(6) Appoint the members of all boards except the Planning Commission and the Housing Board and the Industrial Development Authority;
(7) Succeed to all the powers, rights, and privileges conferred upon the former governing body of the city by statutes in effect at the time of adoption by the city of the mayor-council form of government and not in conflict with this chapter; and
(8) Levy property, sales, and license taxes and local improvement assessments.
Neither the council nor any of its members shall direct or request the appointment of any person to, or his removal from office, or in any manner take part in the appointment or removal of officers and employees in the administrative service to the city, except as provided in subdivision (1) of this section. Except for the purpose of inquiry, the members of the council shall deal with the administrative service only through the mayor. Members of the council shall not give orders to any subordinates of the mayor, either publicly or privately. Any councilman violating the provisions of this section, or voting for a resolution or ordinance in violation of this section, shall be guilty of a misdemeanor and upon conviction thereof shall cease to be a councilman.
*(Acts 1987, No. 87-102, p. 116, §21; Acts 1991, No. 91-171, p. 231, §1.)*
##### **§ 11-43C-22** Vacancies in Council {#sec-11-43c-22 omnilex-key=us-al-statutes--title-11--11-43C-22}
Vacancies of any nature in the council other than those occurring less than one year prior to the date of the next regular council election, shall be filled by special elections to be held for that purpose, the dates of which shall be set by the council at the next regular meeting or any subsequent meeting of the council after such vacancy occurs, such dates to be set no later than 120 nor less than 45 days after the occurrence of such vacancies. Such elections shall be held in the same manner and subject to the same procedures as regular council elections and the person so elected shall hold office for the remainder of the unexpired term. Such election shall be held in conjunction with a general, special, or constitutional election, if any falls within the period herein specified; otherwise, a special election shall be called by the mayor on the date set by the council and shall be held in accordance with the provisions of this chapter and the general laws applicable to such city.
If a vacancy occurs after reapportionment has changed the district boundaries but before the new districts take effect, the old district boundaries will remain in effect for filling that vacancy.
Vacancies where less than one year remains of the unexpired term shall be filled by appointment by the council.
*(Acts 1987, No. 87-102, p. 116, §22.)*
##### **§ 11-43C-23** Creating, Changing, Abolishing, or Assigning Additional Functions to Offices, Departments, or Agencies {#sec-11-43c-23 omnilex-key=us-al-statutes--title-11--11-43C-23}
The council, upon recommendation of the mayor, by ordinance may create, change, and abolish offices, departments, or agencies, other than the offices, departments, and agencies established or continued by this chapter. The council, upon recommendation of the mayor, by ordinance may assign additional functions or duties to offices, departments, or agencies established by this chapter, but may not discontinue or assign to any other office, department, or agency any function or duty assigned by this chapter to a particular office, department, or agency.
*(Acts 1987, No. 87-102, p. 116, §23.)*
##### **§ 11-43C-24** City Clerk Continued in Office; Applicability of Merit System; Appointment of Successor; Duties {#sec-11-43c-24 omnilex-key=us-al-statutes--title-11--11-43C-24}
The city clerk serving under the merit system at the time that this chapter becomes effective shall continue to hold office as the city clerk under the mayor-council form of government of such city, and his successor shall be selected and hold office subject to the provisions of such merit system. The city clerk shall give notice of special or called meetings of the council, shall keep the journal of its proceedings, shall authenticate by his signature and record in full in a book kept for such purpose all ordinances and resolutions and shall perform such other duties as shall be required by this chapter, or by ordinance, or such duties as are imposed by general law of Alabama upon city clerks.
*(Acts 1987, No. 87-102, p. 116, §24.)*
##### **§ 11-43C-25** First Meeting of Council; Council to Meet Regularly; Meetings Open to Public {#sec-11-43c-25 omnilex-key=us-al-statutes--title-11--11-43C-25}
The first meeting of each newly elected council for induction into office shall be held at 10 o’clock in the morning on the first Monday after the expiration of the term of office of the present municipal officeholders, after which the council shall meet regularly at such times as may be prescribed by its rules, but not less frequently than once a week. All meetings of the council shall be open to the public.
*(Acts 1987, No. 87-102, p. 116, §25.)*
##### **§ 11-43C-26** Council to Judge Election and Qualifications of Members {#sec-11-43c-26 omnilex-key=us-al-statutes--title-11--11-43C-26}
The council shall be the judge of the election and qualifications of its members and for such purpose shall have power to subpoena witnesses and require the production of records, but the decision of the council in any such case shall be subject to review by the courts.
*(Acts 1987, No. 87-102, p. 116, §26.)*
##### **§ 11-43C-27** Rules and Order of Business of Council; Journal of Proceedings {#sec-11-43c-27 omnilex-key=us-al-statutes--title-11--11-43C-27}
The council shall determine its own rules and order of business. It shall keep a journal of its proceedings, and the journal shall be open to public inspection.
*(Acts 1987, No. 87-102, p. 116, §27.)*
##### **§ 11-43C-28** Meetings of Council; Quorum; Majority Vote Requirement; Procedure; Record of Proceedings; Procedure as to Ordinances or Resolutions of Permanent Operation; Publication; No Veto as to Council Actions Relating to an Investigation {#sec-11-43c-28 omnilex-key=us-al-statutes--title-11--11-43C-28}
The council shall hold regular public meetings weekly, day or night, at a regular hour to be fixed by said council from time to time and publicly announced; it may hold such special or other meetings as the business of the city may require. The presence of three council members will constitute a quorum for the conduct of official council business. The affirmative vote of at least three members of the council shall be sufficient for the passage of any resolution, bylaw, ordinance, or the transaction of any business of any sort by the said council or the exercise of any of the powers conferred upon it by the terms of this chapter or bylaw, or which may hereafter be conferred upon it. No resolution, bylaw, or ordinance granting any franchise, appropriating any money for any purpose, providing for any public improvements, any regulation concerning the public health, or of any other general or permanent nature, shall be enacted except at a regular or special public meeting of said council. Every ordinance introduced at any and every meeting shall be in writing and shall be read before any vote thereon shall be taken, and the yeas and nays thereon shall be recorded; provided that if the vote of all council members present be unanimous, it may be so stated in the journal without recording the yeas and nays. A record of the proceedings of every meeting of the council shall be kept, and every resolution or ordinance passed by the council must be recorded, and the record of the proceedings of the meeting shall, when approved by the council, be signed by the president of the council and the city clerk. Such records shall be kept available for inspection by all citizens of such city during regular business hours. No ordinance of permanent operation shall be considered at the meeting at which it was introduced except by unanimous consent of all members of the council present, and such unanimous consent shall be entered upon the minutes of said meeting; provided, however, that if all members of the council present vote for the passage of the ordinance and their names are so entered of record as voting in favor thereof, it shall be construed as giving unanimous consent to the action upon such ordinance at the meeting at which it is introduced. All ordinances or resolutions of a permanent nature, after having been passed by the council, shall be transmitted by the clerk within 48 hours after their passage to the mayor for his consideration, who, if he shall approve thereof, shall sign and return the same to the clerk, who shall publish them, if publication thereof is required, and such ordinances and resolutions shall thereupon become effective and have the force of law. Delivery to the office of the mayor shall constitute delivery to the mayor. An ordinance or resolution may be recalled from the mayor at any time before it has become law, or has been acted on by him, by a resolution adopted by a majority of the members elected to the council in regular or special session. If the mayor shall disapprove of any ordinance or resolution transmitted to him as aforesaid, he shall, within 10 days of the time of its passage by the council, return the same to the clerk with his objections in writing, and the clerk shall make a report thereof to the next regular meeting of the city council; and if four members elected to the said council shall at said meeting adhere to said ordinance or resolution, notwithstanding said objections, said vote being taken by yeas and nays and spread upon the minutes, then, and not otherwise, said ordinance or resolution shall after publication thereof, if publication is required, have the force of law. If publication of said ordinance or resolution is not required, it shall take effect upon its passage over such veto. The failure of the mayor to return to the city clerk an ordinance or resolution with his veto within 10 days after its passage by the council shall operate and have the same effect as an approval of the same, and the city clerk, if publication is required, shall publish the same as is herein provided for publication of laws and ordinances of said city. If no publication is required, the ordinance or resolution shall become effective upon the expiration of said 10 days. These provisions are subject to the publication of ordinances as set out in Section 11-45-8. Anything in this section to the contrary notwithstanding, the mayor shall not have the power of veto over any action of the council relating to an investigation as provided herein.
*(Acts 1987, No. 87-102, p. 116, §28.)*
##### **§ 11-43C-29** Grant of Franchise, Lease, or Right to Use Streets, Etc., by Ordinance or Resolution {#sec-11-43c-29 omnilex-key=us-al-statutes--title-11--11-43C-29}
No resolution or ordinance granting to any person, firm, or corporation any franchise, lease, or right to use the streets, public highways, thoroughfares, or public way of said city, either in, under, upon, along, through, or over same shall take effect and be enforced until 30 days after the final enactment of same by the council and publication of said resolution or ordinance in full once a week for three consecutive weeks in one or more newspapers of general circulation published in said city or, if no such newspaper exists then by posting notices in three public places, which publication shall be made at the expense of the persons, firm, or corporation applying for said grant. Pending the passage of any such resolution or ordinance or during the time intervening between its final passage and the expiration of the 30 days during which publication shall be made as above provided, the qualified voters of said city may, by written petition addressed to said council, object to such grant, and if during such period such written petition signed by at least 10 percent of the qualified voters of the city shall be filed with said council, said council shall forthwith order an election, which shall be conducted by the election commission of the city or official charged with the duty of conducting elections therein, at which election the qualified voters of said city shall vote for or against the proposed grant as set forth in the said resolution or ordinance. In the call for said election, the said resolution or ordinance making such grant shall be published at length and in full at the expense of the city in one or more newspapers of general circulation published in said city or nearest larger city by one publication and by posting said notice in three public places within the city. If a majority of the votes cast at such election shall be against the passage of said resolution or ordinance, then said resolution or ordinance shall not become effective, nor shall it confer any rights, powers, or privileges of any kind; otherwise, said resolution or ordinance and said grant shall thereupon become effective as fully and to the same extent as if said election had not been called or held. If, as the result of said election, said resolution or ordinance shall not become effective, then it shall be the duty of said council, after the results of said election shall be determined, to pass a resolution or ordinance to that effect. No grant of any franchise or lease or right of user, or any other right, in, under, upon, along, through, or over the streets, public highways, thoroughfares, or public ways of any such city, shall be made or given, nor shall any such rights of any kind whatever be conferred upon any person, firm, or corporation, except by resolution or ordinance duly passed by the council at some regular or special meeting and published as above provided for in this section; nor shall any extension or enlargement of any such rights or powers previously granted be made or given except in the manner and subject to all the conditions herein provided. It is expressly provided, however, that the provisions of this section shall not apply to the grant of side track or switching privileges to any railroad for the purpose of reaching and affording railway connections, and switch privileges to the owners or users of any industrial plant, store, or warehouse; provided, further, that said track or switch shall not extend for a greater distance than 1,320 feet.
*(Acts 1987, No. 87-102, p. 116, §29.)*
##### **§ 11-43C-30** Revision and Codification of Ordinances, Bylaws, and Resolutions; Comprehensive Zone Map {#sec-11-43c-30 omnilex-key=us-al-statutes--title-11--11-43C-30}
The council may provide for the revision and codification of its ordinances, bylaws, and permanent resolutions, or for the adoption of a code or codes by ordinance. Such code or codes and the revisions or amendments thereof may relate to the whole system of city bylaws, ordinances, and permanent resolutions, or may relate to that portion of such ordinances, bylaws, and permanent resolutions which relate to, affect, or purport to govern any particular subject of municipal legislation. The council shall have full power and authority to prescribe the manner in which said code or codes, revisions or amendments thereto, shall be made public, whether by proclamation of any officer of said city by posting or by publication, one or all, but it shall not be necessary unless so prescribed by the council for such code or codes, revisions or amendments thereto, to be published in a newspaper or newspapers unless such codes, revisions, or amendments include theretofore unpublished substantial changes, in which case such changes along with at least so much of the context thereof as is necessary to convey the meaning of such changes shall be published in accordance with then existing state law. Nor shall it be necessary that such code or codes, revisions or amendments thereto, be spread at length upon the minutes, but they will be noted in the minutes. The council may prescribe that such code or codes, revisions or amendments thereto may be certified by and filed with the city clerk, or other corresponding officer, in lieu of spreading at length the same on the minutes; and the council may prescribe the manner in which copies of such code or codes, revisions or amendments thereto, may be officially certified for use by the residents or by the courts. The council may adopt and provide for the maintenance in a designated office of the city of a comprehensive zone map of the city open for inspection by the public at all reasonable times, and may make such zone map a part of any ordinance by reference thereto in such ordinance and without publication of such zone map in any newspaper. Such zone map need not be in one piece but may for convenience be in sections. A zone map of territory newly added to the city shall be treated as a comprehensive zone map of the city for purposes of application of the provisions of the preceding sentence. These provisions are subject to the publication and recordation of ordinances as set out in Section 11-45-8.
*(Acts 1987, No. 87-102, p. 116, §30.)*
##### **§ 11-43C-31** Monthly Statement of Receipts and Expenses; Annual Examination of Books and Accounts {#sec-11-43c-31 omnilex-key=us-al-statutes--title-11--11-43C-31}
The mayor shall each month print a detailed statement of all receipts and expenses of the city, and shall furnish printed copies thereof to the daily newspapers of the city, other members of the news media of the city, and to persons who apply therefor. At the end of each year, the mayor shall cause a full and complete examination of all the books and accounts of the city to be made by a certified public accountant, or by the state examiners, and shall cause the result of such examination to be published in the manner above provided for publication of statements of monthly expenditures. Such examination shall not be made more than two years in succession by the same accountant.
*(Acts 1987, No. 87-102, p. 116, §31.)*
##### **§ 11-43C-32** Mayor - Filing as Candidate; Qualifying Fee {#sec-11-43c-32 omnilex-key=us-al-statutes--title-11--11-43C-32}
Any person desiring to become a candidate in any election for the office of mayor may become such candidate by filing in the office of the city clerk a statement in writing of such candidacy as required by the general municipal election laws. Said statement shall be accompanied by a qualifying fee in the amount of $350.00, which qualifying fee shall be paid into the general fund of the city.
*(Acts 1987, No. 87-102, p. 116, §32.)*
##### **§ 11-43C-33** Mayor - No Primary Election; Filing of Pauper’s Oath or Petition to Become Candidate {#sec-11-43c-33 omnilex-key=us-al-statutes--title-11--11-43C-33}
No primary election shall be held for the nomination of candidates for the office of mayor, and candidates shall be nominated as herein provided. A person may also become a candidate for the office of mayor by filing a verified pauper’s oath with the city clerk, or by filing a verified petition containing an endorsement of candidacy by the signatures and addresses of 2,000 persons, each of whom is a registered voter residing in the city, provided that no such signature may be obtained more than 12 months immediately preceding the deadline for filing said statements of candidacy.
*(Acts 1987, No. 87-102, p. 116, §33.)*
##### **§ 11-43C-34** Mayor - Qualifications {#sec-11-43c-34 omnilex-key=us-al-statutes--title-11--11-43C-34}
The mayor shall be a qualified elector, and shall have been a resident of the city at least 90 days prior to the election and shall reside within the city during his term of office and shall have attained the age of 25 years.
*(Acts 1987, No. 87-102, p. 116, §34.)*
##### **§ 11-43C-35** Mayor - Compensation; Expense Allowance {#sec-11-43c-35 omnilex-key=us-al-statutes--title-11--11-43C-35}
(a) The mayor elected hereunder shall receive an annual salary of forty-two thousand dollars ($42,000). Thereafter, the mayor’s salary shall be established as provided in Section 11-43C-18, but in no event shall the salary be more than forty-two thousand dollars ($42,000). Additionally, the mayor shall receive in 2006, an expense allowance in the amount of seven hundred dollars ($700) per month; in 2007, an expense allowance in the amount of one thousand four hundred dollars ($1,400) per month; and in 2008, an expense allowance of one thousand eight hundred dollars ($1,800) per month.
(b) Commencing with the next term of office, notwithstanding the provisions of Section 11-43C-18, the mayor shall receive an annual salary of sixty-six thousand dollars ($66,000). Additionally, the mayor shall receive an expense allowance in the amount of five hundred dollars ($500) per month in lieu of the expense allowance provided in subsection (a).
*(Acts 1987, No. 87-102, p. 116, §35; Acts 1991, No. 91-481, p. 872, §1; Act 2006-217, p. 375, §1.)*
##### **§ 11-43C-36** Mayor - Vacancies; Acting Mayor; Special Election to Fill Vacancy; Term of Office {#sec-11-43c-36 omnilex-key=us-al-statutes--title-11--11-43C-36}
Whenever any vacancy in the office of mayor shall occur by reason of death, resignation, removal or any other cause, the president of the council shall assume the duties of the office of mayor effective on the date such vacancy occurs and shall serve as acting mayor until a mayor is elected and qualified as herein provided. The acting mayor shall receive no compensation, expenses or allowances as a council member while acting as mayor, but he will receive the same rate of pay and allowances provided for the mayor whose vacated office he fills, and the compensation received for days of service as acting mayor shall not be counted in determining the maximum annual per diem compensation permitted council members. While the president of the council is serving as acting mayor he may attend council meetings but may not vote on any matters before the council. The council shall within 10 days of the occurrence of the vacancy in the office of the mayor call a special election to fill such vacancy, such election to be held in accordance with general municipal election laws. The successor to the mayor chosen at any such election shall qualify for office as soon as practicable thereafter, and shall assume the duties, responsibilities, and powers of such office immediately upon such qualification, and shall hold office for the unexpired term of his predecessor and until his successor is elected and qualified.
*(Acts 1987, No. 87-102, p. 116, §36.)*
##### **§ 11-43C-37** Mayor - Powers and Duties {#sec-11-43c-37 omnilex-key=us-al-statutes--title-11--11-43C-37}
All executive powers of the city shall be vested in the mayor and the mayor shall be the head of the executive and administrative branches of the city government. He may attend council meetings but may not vote in its proceedings and he shall have the power and duties herein conferred. The mayor shall be responsible for the proper administration of all affairs of the city, and, except as otherwise provided herein, he shall have the power and shall be required to:
(1) Enforce all laws and ordinances;
(2) Appoint and remove, when necessary for the good of the service, all officers and employees of the city except those appointed by the council. Such appointment and removal of personnel are subject to any merit system provisions in effect at such time, except for those officers and employees who are exempted from the merit system by other sections of this chapter;
(3) Appoint the members of the industrial development authority and housing board. The members of the industrial development authority shall be subject to confirmation by a vote of three members of the council. The members of the planning commission shall be appointed pursuant to Section 11-52-3;
(4) Exercise administrative supervision and control over all departments created by this chapter or by law or hereafter created by the council, except those otherwise given independent status under this chapter;
(5) Keep the council fully advised as to the financial conditions and needs of the city; prepare and submit the budget annually to the council and be responsible for its administration after its adoption; prepare and submit, as of the end of the fiscal year, a complete report on the financial and administrative activities of the city for such year;
(6) Recommend to the council such actions as he may deem desirable;
(7) Prepare and submit to the council such reports as may be required of him;
(8) Perform such other duties as may be prescribed by this chapter; and
(9) Fix the salaries or compensation of all officers and employees of the city who are appointable by the mayor, subject, however, to the provisions of any merit law applicable to the city.
*(Acts 1987, No. 87-102, p. 116, §37.)*
##### **§ 11-43C-38** Divisions of City Government; Executive Directors of Divisions; City Attorney; Outside Counsel {#sec-11-43c-38 omnilex-key=us-al-statutes--title-11--11-43C-38}
(a) There are hereby created three divisions of city government: Public works, finance, and public safety. The mayor shall appoint department heads to the above divisions. Upon the first vacancy, of any nature whatsoever, in the office of police chief or fire chief, the mayor may appoint the police chief and fire chief, respectively, from outside the said merit system, with the approval of four members of the council who shall serve at the pleasure of the mayor; provided, however, such officers shall be removed from office only upon recommendation of the mayor with the approval of four council members.
(b) The mayor also is authorized to appoint a city attorney who shall serve at the pleasure of the mayor and shall be compensated in the manner and at a rate approved by the mayor. In addition to the city attorney, the mayor, from time to time in his sole discretion, is authorized to obtain additional legal counsel outside of the city merit system to advise and defend him in his capacity of mayor and in the pursuit of the operation of government.
(c) Upon approval by a majority of those present and voting, the council, from time to time when it deems necessary and reasonable, is authorized to obtain legal counsel outside the city merit system to advise and defend them in their respective capacities as council members and in the pursuit of the operation of government.
*(Acts 1987, No. 87-102, p. 116, §38.)*
##### **§ 11-43C-39** Distribution of Work Among Departmental Divisions {#sec-11-43c-39 omnilex-key=us-al-statutes--title-11--11-43C-39}
The work of each department may be distributed among such divisions thereof as may be established by ordinance upon the recommendation of the mayor. Pending the passage of an ordinance or ordinances distributing the work of departments under the supervision and control of the mayor among specific divisions thereof, the mayor may establish temporary divisions.
*(Acts 1987, No. 87-102, p. 116, §39.)*
##### **§ 11-43C-40** Mayor - Employment of Additional Personnel; Amount Available for Salaries; Not Subject to Merit System {#sec-11-43c-40 omnilex-key=us-al-statutes--title-11--11-43C-40}
The mayor may employ additional personnel who shall serve at the pleasure of the mayor, and for such purposes an additional seventy-five thousand dollars ($75,000) per annum shall be made available for the salaries of the personnel from the city treasury. The personnel shall not be subject to the merit system. This section shall not limit the authority of the mayor to appoint other employees of the city under the merit system or otherwise where authorized by any other law.
*(Acts 1987, No. 87-102, p. 116, §40; Acts 1994, No. 94-697, p. 1351, §1.)*
##### **§ 11-43C-41** Fiscal, Budget, and Accounting Years {#sec-11-43c-41 omnilex-key=us-al-statutes--title-11--11-43C-41}
The fiscal year of the city government shall end on the last day of September of each calendar year. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term “budget year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
*(Acts 1987, No. 87-102, p. 116, §41.)*
##### **§ 11-43C-42** Mayor to Submit Budget to Council {#sec-11-43c-42 omnilex-key=us-al-statutes--title-11--11-43C-42}
On a day to be fixed by the council but in no case later than the twentieth day of August in each year, the mayor shall submit to the council:
When submitting the budgets to the council, the mayor shall submit his recommendation of new sources of revenue or manner of increasing existing sources of revenue, sufficient to balance the budgets, if such additional revenue is necessary to accomplish that purpose.
*(Acts 1987, No. 87-102, p. 116, §42.)*
##### **§ 11-43C-43** Estimates of Revenue and Expenditures for Each Department, Etc.; Compilation of Budget Information by Director of Finance; Review and Revision of Estimates {#sec-11-43c-43 omnilex-key=us-al-statutes--title-11--11-43C-43}
It shall be the duty of the head of each department, and each other office or agency supported in whole or in part by the city, to file with the head of the division of finance, at such time as the mayor may prescribe, estimates of revenue and expenditures for that department, office, or agency for the ensuing fiscal year. Such estimates shall be submitted on the forms furnished by the head of the division of finance and it shall be the duty of the head of each department, office, or agency to supply all the information which the head of the division of finance may require to be submitted. The head of the division of finance shall assemble and compile these estimates and supply such additional information relating to the financial transactions of the city as may be required by the mayor in the preparation of the budgets. The mayor shall hold such hearings as he may deem advisable and with the assistance of the head of the division of finance shall review the estimates and other data pertinent to the preparation of the budgets and make such revisions in such estimates as he may deem proper, subject to the laws of the State of Alabama and any municipal ordinance relating to obligatory expenditures for any purpose.
*(Acts 1987, No. 87-102, p. 116, §43.)*
##### **§ 11-43C-44** General Fund Budget {#sec-11-43c-44 omnilex-key=us-al-statutes--title-11--11-43C-44}
The general fund budget shall include for each public utility owned by the city only the net amounts estimated to be received from or to be appropriated to each public utility. The general fund budget shall be prepared in accordance with accepted principles of municipal accounting and budgetary procedures and techniques, and shall show:
(1) Such portion of the general fund cash surplus as it is estimated will exist, at the end of the current fiscal year, and is proposed to be used for meeting expenditures in the general fund budget for the ensuing year;
(2) An estimate of the receipts from current ad valorem taxes on real estate and tangible personal property during the ensuing fiscal year, assuming that the percentage of the levy collected be no greater than the average percentage of the levy collected in the last three completed tax years;
(3) An estimate of receipts from all other sources of revenue, provided that the estimated receipts from each such source shall not exceed the percentage of estimated revenue in the current fiscal year from the same source over the amount of the revenue received from the same source in the last completed fiscal year, unless a law or ordinance under which revenue from any source is derived, has been amended or a new source of revenue has been provided by law or ordinance, in the course of the current year, in which case the estimated receipts from that source may be fixed by the mayor. If additional revenue is to be derived from the state, the amount fixed by the mayor shall not exceed the amount which the proper state official shall certify in writing to be the reasonable expectation of receipts from such source;
(4) A statement to be furnished by the head of the division of finance of the debt service requirements for the ensuing year and future years;
(5) An estimate of the general fund cash deficit, if any, at the end of the current fiscal year and of any other obligations required by law to be budgeted for the ensuing fiscal year; and
(6) An estimate of expenditures and appropriations for all other purposes to be met from the general fund in the ensuing fiscal year. All the estimates shall be in detail showing receipts by sources and expenditures by operating units, character, and object, so arranged as to show receipts and expenditures as estimated for the current fiscal year and actual receipts and expenditures for the last fiscal year, in comparison with estimated receipts and recommended expenditures for the ensuing fiscal year.
*(Acts 1987, No. 87-102, p. 116, §44.)*
##### **§ 11-43C-45** Recommended Expenditures Not to Exceed Estimated Receipts Unless Additional Revenue Measures Adopted; Recommendations Where Receipts Estimated to Exceed Expenditures; Public Utility Budgets {#sec-11-43c-45 omnilex-key=us-al-statutes--title-11--11-43C-45}
In no event shall the expenditures recommended by the mayor in the general fund budget exceed the receipts estimated, taking into account the estimated cash surplus or deficit at the end of the current fiscal year, as provided in the preceding section hereof, unless the mayor shall recommend an increase in or levy of new or increased taxes or licenses within the power of the city to levy and collect in the ensuing fiscal year, the receipts from which, estimated on the basis of the average experience with the same or similar taxes during the three full tax years last past, will make up the difference. If estimated receipts exceed estimated expenditures, the mayor may recommend revisions in the tax and license ordinances of the city in order to bring the general fund budget into balance. The same balanced budget restrictions shall apply in the adoption of any public utility budget.
*(Acts 1987, No. 87-102, p. 116, §45.)*
##### **§ 11-43C-46** Contents of Budget Message {#sec-11-43c-46 omnilex-key=us-al-statutes--title-11--11-43C-46}
The budget message shall contain the recommendations of the mayor concerning the fiscal policy of the city, a description of the important features of the budget plan, an explanation of all changes in each budget submitted, as to estimated receipts and recommended expenditures as compared with the current fiscal year and the preceding fiscal year, and a summary of the proposed budgets showing comparisons similar to those required herein.
*(Acts 1987, No. 87-102, p. 116, §46.)*
##### **§ 11-43C-47** Printing and Distribution of Budget Message and General Fund, Public Utility, and Capital Budgets {#sec-11-43c-47 omnilex-key=us-al-statutes--title-11--11-43C-47}
The mayor shall cause the budget message to be printed, mimeographed, or otherwise reproduced for general distribution at the time of its submission to the council and sufficient copies of the proposed general fund, public utility, and capital budgets to be made, to supply copies to each member of the council and each newspaper of general circulation published in the city and all other members of the news media in the city, and two copies to be deposited in the office of the city clerk where they shall be open to public inspection during regular business hours.
*(Acts 1987, No. 87-102, p. 116, §47.)*
##### **§ 11-43C-48** Public Hearing on Budget {#sec-11-43c-48 omnilex-key=us-al-statutes--title-11--11-43C-48}
At the meeting of the council at which the budget and budget message are submitted, the council shall determine the place and time of the public hearing on the budget, and shall cause to be published a notice of the place and time, not less than seven days after the date of publication, and the council will hold a public hearing at which any citizen of the city shall be given an opportunity to be heard, for or against the estimates of any item.
*(Acts 1987, No. 87-102, p. 116, §48.)*
##### **§ 11-43C-49** Revision of Budget After Hearing; Increase in Expenditures Over Mayor’s Recommendation; Expenditures Not to Exceed Receipts and Surplus Unless Additional Revenue Measures Adopted {#sec-11-43c-49 omnilex-key=us-al-statutes--title-11--11-43C-49}
After the conclusion of the public hearing the council may insert new items of expenditures or may increase, decrease, or strike out items of expenditure in the general fund budget, except that no item of expenditure for debt service, or any other item required to be included by this chapter or other provision of law, shall be reduced or stricken out. The council shall not alter the estimates of receipts contained in the budget except to correct omissions or mathematical errors, and it shall not cause the total of expenditures as recommended by the mayor to be increased without a public hearing on such increase, which shall be held not less than three days after notice thereof by publication in a newspaper of general circulation published in the city. The council shall in no event adopt a general fund budget in which the total of expenditures exceeds the receipts and available surplus, estimated as herein provided by this chapter, unless at the same time it adopts measures to provide for additional revenue in the ensuing fiscal year estimated to be sufficient to make up the difference.
*(Acts 1987, No. 87-102, p. 116, §49.)*
##### **§ 11-43C-50** Summary of Budget {#sec-11-43c-50 omnilex-key=us-al-statutes--title-11--11-43C-50}
At the head of the budget there shall appear a summary of the budget, which need not be itemized further than by principal sources of anticipated revenue, stating separately the amount to be provided by property tax, kinds of expenditures itemized according to departments, doing so in such manner as to present to the taxpayers a simple and clear summary of the detailed estimates of the budget.
*(Acts 1987, No. 87-102, p. 116, §50.)*
##### **§ 11-43C-51** Adoption of General Fund Budget and Any Necessary Revenue Measure; Failure to Adopt Budget {#sec-11-43c-51 omnilex-key=us-al-statutes--title-11--11-43C-51}
Not later than the twentieth day of September of the current fiscal year, the council by a majority vote shall adopt the general fund budget, and such ordinance providing for additional revenue as may be necessary to put the budget in balance, including a two percent reserve. If for any reason the council fails to adopt the general fund budget on or before such day, the general fund budget of the current fiscal year shall be the general fund budget for the ensuing year, until such time as a newly revised budget shall be adopted by the council and, until such time, it shall have full force and effect to the same extent as if the same had been adopted by the council.
*(Acts 1987, No. 87-102, p. 116, §51.)*
##### **§ 11-43C-52** Disapproval by Mayor of Expenditure Line Item; Adherence by Council to Expenditure {#sec-11-43c-52 omnilex-key=us-al-statutes--title-11--11-43C-52}
If the mayor shall disapprove of any expenditure line item contained in the budget transmitted to him by the council, he shall, within 10 days of the time of its passage by the council, return the same to the clerk with his objections in writing, and the clerk shall make report thereof to the next regular meeting of the city council, and if four of the council members shall at the meeting adhere to said expenditure line item by yeas and nays and spread upon the minutes, then said expenditure line item shall become effective.
*(Acts 1987, No. 87-102, p. 116, §52; Acts 1991, No. 91-169, p. 229, §1.)*
##### **§ 11-43C-53** Budget Effective Upon Final Adoption; Certification; Printing and Distribution {#sec-11-43c-53 omnilex-key=us-al-statutes--title-11--11-43C-53}
Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be certified by the mayor and the city clerk and filed in the office of the director of finance. The budget so certified shall be printed, mimeographed, or otherwise reproduced and sufficient copies thereof shall be made available for the use of all offices, departments, and agencies and for the use of the citizens of the city who request a copy.
*(Acts 1987, No. 87-102, p. 116, §53.)*
##### **§ 11-43C-54** Budget Estimates for Public Utilities; Presentation of Budget to Council {#sec-11-43c-54 omnilex-key=us-al-statutes--title-11--11-43C-54}
Separate budget estimates for any public utility owned and operated by the city shall be submitted to the director of finance at the same time as the budget estimates of other departments and in the form prescribed by the director of finance. The mayor shall present to the council the budget for the utility operation, itemizing the receipts and expenditures in manner and form as is generally provided for in the general fund budget.
*(Acts 1987, No. 87-102, p. 116, §54.)*
##### **§ 11-43C-55** Monthly or Quarterly Allotments for Each Department, Etc.; Revision of Allotments {#sec-11-43c-55 omnilex-key=us-al-statutes--title-11--11-43C-55}
After the current expense budgets have been adopted and before the beginning of the fiscal year, the head of each department, office, and agency shall submit to the mayor in such form as the mayor shall prescribe a work program which shall show the requested allotments of the appropriations for such department, office, or agency for the entire fiscal year at least monthly or as the mayor may direct. Before the beginning of the fiscal year the mayor shall approve, with such amendments as he shall determine, the allotments for each such department, office, or agency, and shall file the same with the head of the division of finance who shall not authorize any expenditure to be made from any appropriation except on the basis of approved allotments. Such allotments shall be in conformity with the salaries established by ordinance, the provisions of any merit system applicable to such city, and the laws of the State of Alabama relating to obligatory expenditures for any purpose. The aggregate of such allotments shall not exceed the total appropriation available to each such department, office, or agency for the fiscal year. An approved allotment may be revised during the fiscal year in the same manner as the original allotment was made. If at any time during the fiscal year the mayor shall ascertain that the revenue cash receipts of the general fund or any public utility for the year plus any cash surplus available from the preceding year will be less than the total appropriations to be met from such receipts and said surplus, he shall reconsider allotments of the departments, offices, and agencies, and, subject to the laws of the State of Alabama and any municipal ordinances of the city relating to obligatory expenditures for any purpose, revise the allotments so as to forestall the incurring of a deficit; provided, however, that there shall be no reduction in salaries except by order of the council, or as authorized by law.
*(Acts 1987, No. 87-102, p. 116, §55.)*
##### **§ 11-43C-56** Transfer of Unencumbered Balance from One Department, Etc., to Another or from One Classification of Expenditure to Another {#sec-11-43c-56 omnilex-key=us-al-statutes--title-11--11-43C-56}
At the request of the mayor, the council may by resolution transfer any unencumbered balance or portion thereof in any general fund appropriation from one department, office or agency to another or from one classification of expenditures to another in the same department, office or agency.
*(Acts 1987, No. 87-102, p. 116, §56.)*
##### **§ 11-43C-57** Additional Appropriations {#sec-11-43c-57 omnilex-key=us-al-statutes--title-11--11-43C-57}
Appropriations in addition to those contained in the original general fund budget ordinance may be made by the council by not less than four affirmative votes, but only on the recommendation of the mayor and only if the head of the division of finance certifies in writing that there is available in the general fund an unappropriated sum sufficient to meet such appropriations.
*(Acts 1987, No. 87-102, p. 116, §57.)*
##### **§ 11-43C-58** Emergency Appropriations {#sec-11-43c-58 omnilex-key=us-al-statutes--title-11--11-43C-58}
At any time in any budget year, the council may make emergency appropriations to meet a pressing need for public expenditures, for other than a regular or recurring requirement, to protect the public health, safety, or welfare. Such appropriation may be made by the council by not less than four affirmative votes, but only on the recommendation of the mayor.
*(Acts 1987, No. 87-102, p. 116, §58.)*
##### **§ 11-43C-59** Lapse of Unexpended and Unencumbered Appropriation {#sec-11-43c-59 omnilex-key=us-al-statutes--title-11--11-43C-59}
Any portion of an appropriation remaining unexpended and unencumbered at the close of the fiscal year shall lapse.
*(Acts 1987, No. 87-102, p. 116, §59.)*
##### **§ 11-43C-60** Capital Improvement Program {#sec-11-43c-60 omnilex-key=us-al-statutes--title-11--11-43C-60}
At the same time that he submits the general fund budget, the mayor shall submit to the council a capital improvement program covering all recommended capital improvement projects for the ensuing fiscal year and for the four fiscal years thereafter, with his recommendation as to the means of financing the improvements proposed for the ensuing fiscal year. The council shall have the power to accept with or without amendments or reject the proposed program and proposed means of financing for the ensuing fiscal year and may from time to time during the fiscal year amend by ordinance adopted by at least four affirmative votes, the program previously adopted by it, or the means of financing the whole or any part thereof, or both, provided that the amendment shall have been recommended by the mayor and further provided such additional funds are available in the general fund or in any other fund of the city.
*(Acts 1987, No. 87-102, p. 116, §60.)*
##### **§ 11-43C-61** Capital Budget; Lapse of Appropriations for Capital Improvement Projects; Reserve Fund for Permanent Public Improvements {#sec-11-43c-61 omnilex-key=us-al-statutes--title-11--11-43C-61}
The council shall adopt a capital budget prior to the beginning of the fiscal year in which the budget is to take effect. No appropriations for a capital improvement project contained in the capital budget shall lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned, provided that any project shall be deemed to have been abandoned if three fiscal years lapse without any expenditure therefor. Any such lapsed appropriation shall be applied to the payment of any indebtedness incurred in financing the project or if there is no such indebtedness, shall be available for other appropriation. The council may by ordinance establish a reserve fund for permanent public improvements and may appropriate thereto any portion of the general fund cash surplus not otherwise appropriated. Appropriations from said fund shall be made only to finance improvements included in the capital budget.
*(Acts 1987, No. 87-102, p. 116, §61.)*
##### **§ 11-43C-62** Payments and Obligations Must Be in Accord with Appropriations; Certification by Director of Finance; Void Payments and Obligations; Penalty for Knowing Violations {#sec-11-43c-62 omnilex-key=us-al-statutes--title-11--11-43C-62}
No payment shall be made and no obligation incurred by or on behalf of the city except in accordance with an appropriation duly made, and no payment shall be made from or obligation incurred against any allotment or appropriation unless the director of finance shall first certify that there is a sufficient unexpended and unencumbered balance in such allotment or appropriation to meet the same; provided that nothing herein shall be taken to prevent the advance authorization of expenditures for small purchases as provided for by this chapter. Every expenditure or obligation authorized or incurred in violation of the provisions of this chapter shall be void. Every payment made in violation of the provisions of this chapter shall be deemed illegal, and every official who shall knowingly authorize or make such payment or knowingly take part therein and every person who shall knowingly receive said payment or any part thereof shall be jointly and severally liable to the city for the full amount so paid or received. If any officer, member of any board, or employee of the city shall knowingly incur any obligation or shall knowingly authorize or make any expenditure in violation of the provisions of this chapter or knowingly take part therein, such action shall be cause for his removal. Nothing in this section, however, shall prevent the making of contracts of lease or for services providing for the payment of funds at a time beyond the fiscal year in which such contracts are made, provided the nature of such transactions will reasonably require the making of such contracts.
*(Acts 1987, No. 87-102, p. 116, §62.)*
##### **§ 11-43C-63** Existing Budget Continued in Force {#sec-11-43c-63 omnilex-key=us-al-statutes--title-11--11-43C-63}
Any officially adopted budget in existence at the time that the council is first organized shall continue in force and effect during the balance of the city’s then fiscal year, or until such time as the mayor may submit to the council and the council adopts an amended, altered, or revised budget for the balance of said fiscal year.
*(Acts 1987, No. 87-102, p. 116, §63.)*
##### **§ 11-43C-64** Division of Finance; Head of Division {#sec-11-43c-64 omnilex-key=us-al-statutes--title-11--11-43C-64}
There shall be a division of finance, the head of which shall be the financial officer of the city. The head of the division shall be appointed by the mayor and shall not be subject to the provisions of the merit system.
*(Acts 1987, No. 87-102, p. 116, §64.)*
##### **§ 11-43C-65** Head of Division of Finance - Qualifications; Bond {#sec-11-43c-65 omnilex-key=us-al-statutes--title-11--11-43C-65}
The head of the division of finance shall be a person skilled in municipal accounting, taxation, and financial control. He shall provide a bond with such surety and in such amount as the council may require by resolution or ordinance. The premium on said bond shall be paid by the city.
*(Acts 1987, No. 87-102, p. 116, §65.)*
##### **§ 11-43C-66** Head of Division of Finance - Powers and Duties {#sec-11-43c-66 omnilex-key=us-al-statutes--title-11--11-43C-66}
The head of the division of finance shall have general management and control of the division and of finance. He shall have charge, subject to the direction and control of the mayor, of the administration of the financial affairs of the city, and to that end shall have authority and be required to:
(1) Cooperate with the mayor in compiling estimates for the general fund, public utility, and capital budgets;
(2) Supervise and control all encumbrances, expenditures, and disbursements to insure that budget appropriations are not exceeded;
(3) Prescribe and install systems of accounts for all departments, offices, and agencies of the city and provide instructions for their use; and prescribe the form of receipts, vouchers, bills, or claims to be used and of accounts to be kept by all departments, offices, and agencies of the city;
(4) Require daily, or at such other intervals but no longer than weekly, a report of receipts from each of such departments, offices, and agencies, and prescribe the time and the manner in which moneys received by them shall be paid to the office of the division of finance or deposited in a city bank interest bearing account under his control;
(5) Examine all contracts, purchase orders, and other documents, except bonds and notes which create financial obligations against the city, and approve the same only upon ascertaining that money has been appropriated and allotted therefor and that an unexpended and unencumbered balance is available in such appropriation and allotment to meet the same; provided that the head of the division of finance may give advance authorization for the expenditure from any appropriation for the purchase of supplies, materials, or equipment within the current allotment of such appropriation during a period not to exceed the ensuing three calendar months for the purchase of items not to exceed in cost $100.00 for any one item, and may immediately encumber such appropriation with the amount of such advance authorization; and thereafter, within the period specified, purchase orders for such items, to an aggregate not exceeding such authorization, shall be valid without the prior approval of the head of the division of finance. Each such purchase order, however, shall be charged against such authorization and no such purchase order, which together with all such purchase orders previously charged within the period specified, shall exceed the amount of such authorization;
(6) Have custody of all funds under the control of the city or any office, department, or agency and deposit all funds coming into his hands in such depositories as may be designated by resolution or ordinance of the council, or, if no such resolution or ordinance be adopted, by the mayor, subject to the requirements of law as to surety and the payment of interest on deposits. All such interest shall be the property of the city and shall be accounted for and credited to the proper account. The head of the division of finance shall not be liable for any loss sustained as to funds of the city that are on deposit in such a designated bank or depository;
(7) Audit and approve before payment all bills, invoices, payrolls, and other evidences of claims, demands, or charges against the city government and with the advice of legal counsel, determine the regularity, legality, and correctness of such claims, demands, or charges;
(8) Have custody of all invested funds of the city unless otherwise provided by this chapter, or by law, ordinance, or the terms of any trust, and be responsible for the safekeeping of all bonds and notes of the city and for the receipt and delivery of city bonds and notes for transfer, registration, and exchange;
(9) Have supervision over the preparation of bonds, including advertisements for their sale, preparation of bond prospectuses, conduct of their sale, and their delivery subject to applicable provisions of law and municipal ordinances. Bonds shall be authenticated by the manual signature of the director of finance and shall bear the facsimile signature of the mayor and a facsimile of the seal of the city. Interest coupons transferable by delivery shall be attached to the bond and shall be authenticated by the facsimile signature of the director of finance;
(10) Supervise and direct the placing of all types of insurance carried by the city where the premiums in whole or in part are paid by the city, or the premiums in whole or in part are withheld through the payrolls; the amount of all types of insurance on which the city pays the premiums in whole or in part shall be determined by the council after a recommendation by the mayor;
(11) Submit to the mayor for presentation to the council not later than the twelfth day of each month, a statement showing in reasonable detail the revenues received by the city during the preceding month, the revenues received during that fiscal year up to and through the end of the preceding month, the expenditures made during the preceding month, and the accumulated expenditures made during that fiscal year up to and through the end of the preceding month, together with a comparison of said items with the budget estimates;
(12) Furnish to the head of each department, office, or agency of the city a copy of that portion of the statement herein provided, as it relates to the department, office, or agency;
(13) Prepare and submit to the mayor at the end of each fiscal year, for the preceding year, a complete financial statement and report of the financial transactions of the city;
(14) Designate, with the approval of the mayor, and subject to the provisions of the merit system, an employee of the department of finance who, during the temporary absence or incapacity of the director, shall have and perform all the powers and duties conferred or imposed upon the director;
(15) Protect the interests of the city by withholding the payment of any claim or demand by any person, firm, or corporation against the city until any indebtedness or other liability due from such person, firm, or corporation shall first have been settled and adjusted;
(16) Collect all special assessments, license fees, and other revenues of the city and collect all money receivable from the county, state, or federal government, or from any court, or from any office, department, or agency of the city;
(17) Inspect and audit, with approval of the mayor, records of financial transactions which may be maintained in any office, department, or agency of the city government apart from, or subsidiary to, the accounts kept in the office of the head of the division of finance; and
(18) Supervise, through the division of purchases, the purchase, storage, and distribution of all supplies, materials, equipment, and other articles used by any office, department, or agency of the city government.
*(Acts 1987, No. 87-102, p. 116, §66.)*
##### **§ 11-43C-67** Expenditures Not to Exceed Appropriation for That General Classification of Expenditures; Expenditures Financed by Bonds; Leases or Contracts for Period Exceeding Budget Year {#sec-11-43c-67 omnilex-key=us-al-statutes--title-11--11-43C-67}
No officer, department, or agency shall, during any budget year, expend or contract to expend any money or incur any liability, for any purpose in excess of the amounts appropriated for that general classification of expenditures pursuant to this chapter. Any contract, verbal or written, made in violation of this chapter shall be null and void. Nothing in this section, however, shall prevent the making of contracts or the spending of money for capital improvements to be financed in whole or in part by the issuance of bonds, nor the making of leases or contracts for services for a period exceeding the budget year in which such lease or contract is made, when such contract is permitted by law.
*(Acts 1987, No. 87-102, p. 116, §67.)*
##### **§ 11-43C-68** Disposition of Fees Received by Officers and Employees {#sec-11-43c-68 omnilex-key=us-al-statutes--title-11--11-43C-68}
All fees received by any officer or employee of the city shall belong to the city government and shall be paid daily to the division of finance.
*(Acts 1987, No. 87-102, p. 116, §68.)*
##### **§ 11-43C-69** Division of Division of Finance to Be Responsible for Purchases; Powers and Duties of Division Head {#sec-11-43c-69 omnilex-key=us-al-statutes--title-11--11-43C-69}
There shall be established in the division of finance a division responsible for purchases, the head of which shall be the city purchasing agent. Such division head, pursuant to rules and regulations established by resolution or ordinance, shall contract for, purchase, store, and distribute all supplies, materials, and equipment required by any office, department, or agency. The city purchasing agent shall also have power and shall be required to:
(1) Establish and enforce specifications with respect to supplies, materials, and equipment required by the city government;
(2) Inspect or supervise the inspection of all deliveries of supplies, materials, and equipment and determine their quality, quantity, and conformance with specifications;
(3) Have charge of such general storerooms and warehouses as the council may provide by resolution or ordinance;
(4) Transfer to or between offices, departments, or agencies or sell surplus, obsolete, or unused supplies, material, and equipment; and
(5) Perform such other duties as may be imposed by resolution or ordinance.
*(Acts 1987, No. 87-102, p. 116, §69.)*
##### **§ 11-43C-70** Competitive Bidding on Contracts for Supplies, Materials, or Equipment {#sec-11-43c-70 omnilex-key=us-al-statutes--title-11--11-43C-70}
Before the purchasing agent makes any purchase of or contract for supplies, materials, or equipment he shall give ample opportunity for competitive bidding, under such rules and regulations as the council may prescribe by resolution or ordinance; provided, however, the council shall not exempt individual contracts, purchases, or sales from the requirement of competitive bidding.
*(Acts 1987, No. 87-102, p. 116, §70.)*
##### **§ 11-43C-71** City Improvements Costing More Than $3,000.00 to Be Executed by Contract; Bidding on Contract; Alteration of Contract {#sec-11-43c-71 omnilex-key=us-al-statutes--title-11--11-43C-71}
Any city improvement costing more than $3,000.00 shall be executed by contract except where such improvement is budgeted and authorized by the council to be executed directly by a city department in conformity with detailed plans, specifications, and estimates. All such contracts for more than $3,000.00 shall be awarded to the lowest responsible bidder after such public notice and competition as may be prescribed by resolution or ordinance; provided, however, the mayor shall have the power to reject all bids and advertise again. Alteration in any contract may be made when authorized by the council upon the written recommendation of the mayor. Nothing in this chapter shall be construed to supersede or nullify provisions of state law requiring or governing competitive bidding.
*(Acts 1987, No. 87-102, p. 116, §71.)*
##### **§ 11-43C-72** Purchases and Contracts Shall Be Pursuant to Written Requisition; Certification of Balance Sufficient to Pay for Contract or Order {#sec-11-43c-72 omnilex-key=us-al-statutes--title-11--11-43C-72}
All purchases made and contracts executed by the purchasing agent shall be pursuant to a written requisition from the head of the office, department or agency whose appropriation will be charged, and no contract or order shall be issued to any vendor unless and until the director of finance certifies that there is a sufficient unencumbered appropriation balance to pay for the supplies, materials, equipment, or contractual service for which the contract or order is to be issued.
*(Acts 1987, No. 87-102, p. 116, §72.)*
##### **§ 11-43C-73** Revenue Notes {#sec-11-43c-73 omnilex-key=us-al-statutes--title-11--11-43C-73}
In any budget year, in anticipation of the collection of revenues, the council may by resolution authorize the borrowing of money by the issuance of negotiable notes of the city, each of which shall be designated “revenue note for the year _____ (stating the budget year).” Such notes may be renewed from time to time, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year after the budget year in which the original notes have been issued. Such borrowing shall be subject to any limitation provided by law.
*(Acts 1987, No. 87-102, p. 116, §73.)*
##### **§ 11-43C-74** Emergency Notes {#sec-11-43c-74 omnilex-key=us-al-statutes--title-11--11-43C-74}
In the absence of available revenues to meet emergency appropriations under the provisions of this chapter, the council may by resolution authorize the issuance of notes, each of which shall be designated “emergency note” and may be renewed from time to time, but all such notes and renewals shall be paid not later than the last day of the fiscal year next succeeding the budget year in which the emergency appropriation was made.
*(Acts 1987, No. 87-102, p. 116, §74.)*
##### **§ 11-43C-75** Notes Not Payable on Demand; Redemption Prior to Maturity; Private Sale {#sec-11-43c-75 omnilex-key=us-al-statutes--title-11--11-43C-75}
No notes shall be made payable on demand, but any note may be made subject to redemption prior to maturity upon notice and at such time as may be stated in the note. All notes may be sold at not less than par and accrue interest at private sale without previous advertisement.
*(Acts 1987, No. 87-102, p. 116, §75.)*
##### **§ 11-43C-76** Existing Rights and Privileges of Officers and Employees; Existing Laws Not Inconsistent with Personnel, Etc., Provisions of Chapter {#sec-11-43c-76 omnilex-key=us-al-statutes--title-11--11-43C-76}
Nothing contained in the provisions of this chapter shall affect or impair the rights or privileges of officers or employees of the city or of any office, department, or agency existing at the time when this chapter shall take effect or any provision of law in force at the time when the mayor-council form of government shall become applicable and not inconsistent with the provisions of this chapter in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension and retirement rights, civil rights, or any other rights or privileges of officers or employees of the city or any office, department, or agency thereof, and as provided by the city’s merit system.
*(Acts 1987, No. 87-102, p. 116, §76.)*
##### **§ 11-43C-77** Personnel Holding Administrative Office Continued in Office; Transfer of Powers and Duties of Office, Etc., Abolished by This Chapter {#sec-11-43c-77 omnilex-key=us-al-statutes--title-11--11-43C-77}
All personnel, except those specifically designated by the provisions of this chapter as removable at the discretion of the mayor, holding administrative office at the time the mayor-council form of government becomes effective shall continue in office and in the performance of their duties until other provisions have been made by law for the performance of such duties or the discontinuance of such office. If any office, department, or agency of the city shall be abolished by this chapter, the powers conferred and the duties imposed upon such units by the laws of the state shall thereafter be exercised and discharged by the office, department, or agency designated by the council.
*(Acts 1987, No. 87-102, p. 116, §77.)*
##### **§ 11-43C-78** Transfer of Records, Property, and Equipment of Office, Etc., Where Powers and Duties Reassigned {#sec-11-43c-78 omnilex-key=us-al-statutes--title-11--11-43C-78}
All records, property, and equipment of any office, department, or agency, whose powers and duties are assigned to any other office, department, or agency by the provisions of this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency are assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1987, No. 87-102, p. 116, §78.)*
##### **§ 11-43C-79** Office, Etc., with Name or Powers and Duties the Same or Substantially Same as Existing Office Deemed a Continuation of Such Office {#sec-11-43c-79 omnilex-key=us-al-statutes--title-11--11-43C-79}
Any office, department, or agency provided for by this chapter with a name or with powers and duties the same or substantially the same as those of any such office, department, or agency heretofore existing shall be deemed to be a continuation of such office, department, or agency, and shall continue to exercise its powers and duties until otherwise provided, and shall have power to continue any business, proceeding, or other matter within the scope of its regular powers and duties. Any provision in any law, rule, regulation, contract, grant, or other document relating to such a formerly existing office, department, or agency shall, so far as not inconsistent with the provisions of this chapter, apply to such office, department, or agency.
*(Acts 1987, No. 87-102, p. 116, §79.)*
##### **§ 11-43C-80** Existing Contracts Continued in Force; Public Improvements for Which Legislative Steps Taken {#sec-11-43c-80 omnilex-key=us-al-statutes--title-11--11-43C-80}
All contracts entered into by the city, or for its benefit, prior to the application to such city of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the organization under the mayor-council form of government may be carried to completion as nearly as practicable in accordance with the provisions of such existing laws.
*(Acts 1987, No. 87-102, p. 116, §80.)*
##### **§ 11-43C-81** Pending Legal Actions and Proceedings {#sec-11-43c-81 omnilex-key=us-al-statutes--title-11--11-43C-81}
No action or proceeding, civil or criminal, pending at the time of the organization under the mayor-council form of government, brought by or against the city or any office, department, or agency or officer thereof, shall be affected or abated by the change to the mayor-council form of government or by anything contained in this chapter; but all such actions or proceedings may be continued notwithstanding that functions, powers, and duties of any office, department, or agency or officer party thereto may by or under this chapter be assigned or transferred to another office, department, or agency or officer; but in that event, the same may be prosecuted or defended by the head of the office, department, or agency to which such functions, powers, and duties have been assigned or transferred by or under the provisions of this chapter.
*(Acts 1987, No. 87-102, p. 116, §81.)*
##### **§ 11-43C-82** Laws Relating to Pensions or Retirement and Relief Funds Continued in Force {#sec-11-43c-82 omnilex-key=us-al-statutes--title-11--11-43C-82}
All laws and parts of laws relating to pensions or retirement and relief funds for policemen, firemen, and other employees of the city, contained in the general or local laws of the state as the same may apply and be in effect with respect to any such city at the time when such city shall become governed by the provisions of this chapter, shall continue in full force and effect, and without interruption.
*(Acts 1987, No. 87-102, p. 116, §82.)*
##### **§ 11-43C-83** Laws Relating to Authority for Fairgrounds, Etc., Continued in Force {#sec-11-43c-83 omnilex-key=us-al-statutes--title-11--11-43C-83}
All laws and parts of laws relating to establishment or financing of an authority for fairgrounds, parks, exhibitions, and other facilities for the amusement, recreation, and cultural development of the citizens of the city, contained in the general or local laws of the state, as the same may apply and be in effect with respect to any such city at the time when such city shall become organized under the provisions of this chapter, shall continue in full force and effect and without interruption or change until otherwise provided by law.
*(Acts 1987, No. 87-102, p. 116, §83.)*
##### **§ 11-43C-84** Ordinances and Resolutions Continued in Effect {#sec-11-43c-84 omnilex-key=us-al-statutes--title-11--11-43C-84}
All ordinances and resolutions of the city in effect at the time the form of government herein provided for becomes effective shall continue in effect unless and until changed or repealed by the council.
*(Acts 1987, No. 87-102, p. 116, §84.)*
##### **§ 11-43C-85** Removal of Merit System Officers and Employees; Appeal of Decision {#sec-11-43c-85 omnilex-key=us-al-statutes--title-11--11-43C-85}
Any merit system officer or employee to whom the mayor, or a head of any office, department, or agency, may appoint a successor, may be removed by the mayor or other appointing officer at any time, and the decision of the mayor, or other appointing officer, shall be subject to appeals provided by law.
*(Acts 1987, No. 87-102, p. 116, §85.)*
##### **§ 11-43C-86** Participation in Meetings of Council by Mayor, Department Heads, Etc {#sec-11-43c-86 omnilex-key=us-al-statutes--title-11--11-43C-86}
The mayor, the heads of all divisions and departments, and such other officers of the city as may be designated by the council, shall be entitled to attend meetings of the council, but shall have no vote therein. The mayor shall have the right to take part in the discussion of all matters coming before the council, and the directors and other officers shall be entitled to take part in all discussions of the council relating to their respective offices, departments, or agencies.
*(Acts 1987, No. 87-102, p. 116, §86.)*
##### **§ 11-43C-87** Inquiry into Conduct of Office, Department, Agency, or Officer; Investigations as to Municipal Affairs; Subpoena Power {#sec-11-43c-87 omnilex-key=us-al-statutes--title-11--11-43C-87}
The council, or the mayor, shall have power to inquire into the conduct of any office, department, agency, or officer of the city and to make investigations as to municipal affairs, and for that purpose may subpoena witnesses, administer oaths, and compel the production of books, papers, and other evidence. Failure to obey such subpoena or to produce books, papers, or other evidence as ordered under the provisions of this section shall constitute a misdemeanor and shall be punishable by a fine not to exceed $200.00 or by imprisonment not to exceed 30 days, or both.
*(Acts 1987, No. 87-102, p. 116, §87.)*
##### **§ 11-43C-88** Interest of Official or Employee in Contracts with City or Public Utility Prohibited; Acceptance of Gifts, Etc.; Free Transportation of Officials, Policemen, and Firemen in Discharge of Duties {#sec-11-43c-88 omnilex-key=us-al-statutes--title-11--11-43C-88}
No elected official or city employee shall be interested, directly or indirectly, in any contract for work or material, or the profits thereof, or services to be furnished or performed for the city, nor shall he be interested, directly or indirectly, in any contract for work or material, or the profits thereof, or services to be furnished or performed for any person, firm, or corporation operating interurban railway, street railway, water works, gas works, electric light or power plant, heating plant, telegraph line, or telephone exchange within the territorial limits of said city, nor shall he accept any free pass, free ticket, or free service from said corporations or utilities or accept any gift or other thing of value, or any service upon terms more favorable than are granted to the public generally. Any violation of the provisions of this section shall be a misdemeanor and, upon conviction thereof, the guilty person shall be punished by a fine of not less than $100.00 nor more than $300.00, be imprisoned in the county jail for not more than 90 days, and every such contract or agreement shall be void. Such prohibition of free transportation shall not apply to policemen or firemen in uniform nor to policemen in the discharge of their duty nor shall service to city officials in their official capacity heretofore provided by any franchise or ordinance be affected by this section.
*(Acts 1987, No. 87-102, p. 116, §88.)*
##### **§ 11-43C-89** Oath Taken by City Officers {#sec-11-43c-89 omnilex-key=us-al-statutes--title-11--11-43C-89}
Every officer of the city shall, before entering upon the duties of his office, take and subscribe to an oath or affirmation as provided by law, to be filed and kept in the office of the city clerk.
*(Acts 1987, No. 87-102, p. 116, §89.)*
##### **§ 11-43C-90** Reapportionment of Council Districts Because of Population Change {#sec-11-43c-90 omnilex-key=us-al-statutes--title-11--11-43C-90}
Whenever there shall be a change in the population in any of the five districts heretofore established following a decennial federal census beginning in 1990, there shall be a reapportionment of the council districts in the following manner:
(1) The mayor shall within six months after the publication of the 1990 federal census, and each decennial federal census thereafter, file with the council a report containing a recommended plan for the reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous, and to the extent reasonably possible, compact territory, and its boundary lines shall be the centerlines of streets or other well-defined boundaries.
b. Each district shall contain as nearly as is reasonable the same population.
The report shall include a map and description of the districts recommended and shall be drafted as a proposed ordinance and considered by the council as other ordinances are considered. Once filed with the clerk, the report shall be treated as an ordinance introduced by a council member.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment by the council, as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall apply to the first regular election held more than six months after its becoming effective and to all municipal elections, regular or special, held after the first regular election. No incumbent council member shall be deprived of his or her unexpired term of office because of such redistricting.
*(Acts 1987, No. 87-102, p. 116, §90.)*
##### **§ 11-43C-91** Procedure for Changing Form of Government; Change from Mayor-Council Form Prohibited for Four Years {#sec-11-43c-91 omnilex-key=us-al-statutes--title-11--11-43C-91}
The city is prohibited from changing from the mayor-council form of government within four years after the adoption thereof. At the end of such period, or at any time thereafter, the city’s form of government may be amended or changed when: (i) Awritten petition executed by 10 percent of the number of those who voted in the last city election is submitted to the council with the proposed changes or amendments incorporated in the petition; after presentation of the petition, the council shall call for a referendum vote on the proposed changes and amendments, and (ii) a majority of the votes cast in the referendum is in favor of the proposed changes or amendments. After the council receives the proposed changes and petition, it shall call a special election for the purpose of determining whether the city shall adopt the changes or amendments. Notice shall be given of the time and purpose of such election by publication once each week for four consecutive weeks in a newspaper published in said city prior to the referendum vote. All qualified electors of such city may participate in the election and such questions shall be plainly printed upon the ballot. The referendum shall be conducted, the expenses paid, the votes canvassed, and the results declared in the same manner as is provided by law in other city elections.
*(Acts 1987, No. 87-102, p. 116, §91.)*
##### **§ 11-43C-92** Appointments to City Positions to Fairly Reflect Make-Up of Total Community; Participation in Contracts by Socially and Economically Disadvantaged Individuals; Capital Improvements to Be Based on Need and Fairly and Equitably Made; Allocation to Agencies Serving Poor and Needy {#sec-11-43c-92 omnilex-key=us-al-statutes--title-11--11-43C-92}
(a) Within 30 days of taking office, the officials of the city government shall adopt an ordinance to provide that all appointments made by the mayor or council to positions in city government, boards, commissions, agencies, authorities, or any other organization or entity of the city or to any positions to which said officials make appointments, shall fairly and equitably reflect the make-up of the total community with due consideration given to all demographic characteristics of the population.
(b) Within 30 days of taking office, the officials of the city government shall adopt an ordinance to provide that all contracts or agreements entered into by the city or any entity thereof for any service of any kind, whether by bid or otherwise, including, but not limited to, professional services and bond issues, shall make every reasonable effort to require that the contractor, firm, or company to which any contract is awarded, must have at least 15 percent participation by socially and economically disadvantaged individuals or the city shall make every reasonable effort to insure that at least 15 percent of the total value of all such contracts and agreements described above shall be awarded to qualified contractors or professionals who are socially and economically disadvantaged.
(c) Within 30 days of taking office, the officials of the city government shall adopt an ordinance to require that all capital improvements and repairs made in the city shall be made on the basis of need and shall, as nearly as practicable, be fairly and equitably made in all districts of the city.
(d) The officials of the city government shall demonstrate their commitment to the poor and needy in this city by annually allocating in the city budget an amount of funds to be approved by the council to agencies, organizations, and programs serving the poor and needy in a manner and amount to be determined by the council.
*(Acts 1987, No. 87-102, p. 116, §92.)*
### **Chapter 43D** Adoption of Mayor-Council Form of Government
##### **§ 11-43D-1** Cities to Which Chapter Applies; Form of Ordinance {#sec-11-43d-1 omnilex-key=us-al-statutes--title-11--11-43D-1}
The governing body of any Class 5 municipality operating under a United States district court consent decree approved by the court in the case of Tolbert and Petty vs. the City of Bessemer, Civil Action No. 75-297, by a majority vote of the members thereof may adopt an ordinance establishing a mayor-council form of government pursuant to the terms and conditions of this chapter. Any municipality desiring to adopt a form of government provided for herein shall adopt an ordinance in substantially the following form:
“BE IT ORDAINED BY THE COUNCIL OF THE CITY OF _____ AS FOLLOWS:
“Section 1. That pursuant to Act 89-750 of the 1989 Regular Session of the Legislature, the mayor-council form of government pursuant to the United States district court decree agreed to by the parties and approved by the court on the 18th day of October, 1985, in the case of Tolbert and Petty vs. the City of Bessemer, under which the municipality has operated, shall be abandoned on the 1st day of October, 1990.
“Section 2. The form of government as described by Act No. 89-750 of the 1989 Regular Session of the Legislature providing for a mayor-council form of government with the mayor and one council member elected at large and six council members from single member districts, is hereby adopted as the form of government for the City of _____ , pursuant to all the terms and conditions contained in said act.
“Section 3. This ordinance shall take effect as provided by law, and be implemented pursuant to said Act No. 89-750.”
*(Acts 1989, No. 89-750, p. 1518, §1.)*
##### **§ 11-43D-2** Adoption of Ordinance; Elections; Powers and Duties of Mayor and Council {#sec-11-43d-2 omnilex-key=us-al-statutes--title-11--11-43D-2}
If an ordinance as hereinabove set out be adopted by the governing body of any municipality to which this chapter applies, then:
(1) Within 90 days thereafter the governing body shall adopt an ordinance establishing the boundaries of the seven council districts herein provided for and shall take such steps as are necessary to comply with the federal Voting Rights Act of 1965, as amended.
(2)a. The election of the mayor and all the members of the city council shall be held as set by ordinance by the council and quadrennially thereafter and in accordance with the provisions and terms of the general election laws governing mayor-council elections under the general laws of the State of Alabama.
b. A candidate for each place on the city council or mayor shall be a resident of the district which he or she seeks to represent on the council for at least 365 consecutive days immediately preceding the deadline date for qualifying as a candidate and shall be a qualified elector.
(3)a. On the first Monday in October, after the election of the mayor and council, the newly elected mayor and council members shall assume office and the terms, powers, duties, responsibilities, and emoluments of office of the present mayor and governing body shall end.
b. Each council member and mayor shall reside in the district which the member represents during the entire term of office.
(4) The municipality shall thereafter and as provided in this chapter be governed by a mayor and one council member elected at large and six council members elected from single member districts, which shall have the same powers and duties as other mayor-council municipalities organized under this title, not inconsistent with this chapter, and any other powers and duties not inconsistent with this chapter which may have been theretofore granted to such municipality.
*(Acts 1989, No. 89-750, p. 1518, §2; Act 2021-215, §1.)*
##### **§ 11-43D-3** Term of Office {#sec-11-43d-3 omnilex-key=us-al-statutes--title-11--11-43D-3}
The mayor and council members elected hereunder shall serve until the first Monday in October, four years after taking office.
*(Acts 1989, No. 89-750, p. 1518, §3.)*
##### **§ 11-43D-4** Election and Referendum Procedure {#sec-11-43d-4 omnilex-key=us-al-statutes--title-11--11-43D-4}
The election and referendum provided for herein shall be conducted, the vote canvassed, and the result declared in the same manner as provided by Chapter 46, Title 11, in respect to other municipal elections conducted in any such municipality.
*(Acts 1989, No. 89-750, p. 1518, §4.)*
##### **§ 11-43D-5** Effect of Change of Population; Manner of Reapportionment of Council Districts {#sec-11-43d-5 omnilex-key=us-al-statutes--title-11--11-43D-5}
Whenever there shall be a change in population in any of the districts heretofore established, evidenced by a federal census of population, or by virtue of a substantial change in the corporate limits, there shall be a reapportionment of the council districts in the manner hereinafter provided:
(1) The mayor shall within six months after the publication of each federal census of population for the municipality or within six months after there shall have been any substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous, and to the extent reasonably possible, compact territory, and its boundary lines shall be the centerlines of streets or other well-defined boundaries;
b. Each district shall contain as nearly as is possible the same population, but not more than five percent more or less than the average.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment by the council, as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall not apply to any primary or regular or special election held within six months after its becoming effective. No incumbent member of the council shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1989, No. 89-750, p. 1518, §5.)*
##### **§ 11-43D-6** Rights of Officers and Employees Preserved {#sec-11-43d-6 omnilex-key=us-al-statutes--title-11--11-43D-6}
Nothing contained in this chapter, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or any office, department, board, or agency existing at the time when this chapter shall take effect, or any provision of law in force at the time when the mayor-council form of government shall be adopted and not inconsistent with the provisions of this chapter, in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension, officers, or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1989, No. 89-750, p. 1518, §6.)*
##### **§ 11-43D-7** Continuance in Office of Present Officeholders; Exercise of Powers of Abolished Office, Agency, Etc {#sec-11-43d-7 omnilex-key=us-al-statutes--title-11--11-43D-7}
All persons holding administrative office at the time the mayor-council form of government is adopted shall continue in office and in the performance of their duties until provision shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the law of the state shall, if such office, department, board, or agency be abolished by this chapter, or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
*(Acts 1989, No. 89-750, p. 1518, §7.)*
##### **§ 11-43D-8** Continuance in Office of Persons Holding Positions in Civil Service {#sec-11-43d-8 omnilex-key=us-al-statutes--title-11--11-43D-8}
Any person holding such an office or position in the civil service of such municipality when the mayor-council form of government shall be adopted shall continue to hold such office in the civil service under the mayor-council form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service system.
*(Acts 1989, No. 89-750, p. 1518, §8.)*
##### **§ 11-43D-9** Transfer of Office, Agency, Etc., Records and Property {#sec-11-43d-9 omnilex-key=us-al-statutes--title-11--11-43D-9}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency by this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency, or part thereof, are by this chapter assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1989, No. 89-750, p. 1518, §9.)*
##### **§ 11-43D-10** Existing Contracts Continued in Force; Completion of Public Improvements {#sec-11-43d-10 omnilex-key=us-al-statutes--title-11--11-43D-10}
All contracts entered into by the municipality, or for its benefit, prior to the adoption by such municipality of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the mayor-council form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1989, No. 89-750, p. 1518, §10.)*
##### **§ 11-43D-11** Pending Legal Action and Proceedings {#sec-11-43d-11 omnilex-key=us-al-statutes--title-11--11-43D-11}
No action or proceeding, civil or criminal, pending at the time of the adoption of the mayor-council form of government, brought by or against the municipality or any office, department, board, or agency or officer thereof, shall be affected or abated by the adoption of the mayor-council form of government or by anything therein contained in this chapter.
*(Acts 1989, No. 89-750, p. 1518, §11.)*
##### **§ 11-43D-12** Continuance of Laws Relating to Pensions, Retirement, and Relief Funds {#sec-11-43d-12 omnilex-key=us-al-statutes--title-11--11-43D-12}
All laws and parts of laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to the municipality at the time when it shall elect to be governed by the provisions of this chapter, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1989, No. 89-750, p. 1518, §12.)*
##### **§ 11-43D-13** Continuance of Laws Relating to Boards, Etc {#sec-11-43d-13 omnilex-key=us-al-statutes--title-11--11-43D-13}
All laws relating to the school board, library board, airport authority, planning and zoning commission, zoning board of adjustment, park or recreation board, and any municipally owned service enterprise, and any board, authority, or agency given such independent status, as the same may apply and be in effect at the time when the municipality shall elect to be governed by the provisions of this chapter, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board or agency, until otherwise provided by law.
*(Acts 1989, No. 89-750, p. 1518, §13.)*
##### **§ 11-43D-14** Powers and Duties of Mayor; Employment of Clerical Assistant for the Council {#sec-11-43d-14 omnilex-key=us-al-statutes--title-11--11-43D-14}
(a) The mayor shall be the chief executive officer and shall have general supervision and control of all other officers, employees, and affairs of the city, which shall include the management of the public utilities, either owned and operated by the city or operated by private corporations under contracts with the city. The general law applicable to mayor-council municipalities notwithstanding, the mayor may appoint all officers and employees of the city subject to the rules of any civil service or merit system that may be applicable to the city. The mayor may remove any person appointed by him or her subject to the rules of any civil service or merit system that may be applicable to the city.
(b) Notwithstanding subsection (a), the city council, by ordinance, may provide for the appointment of a clerical assistant for members of the council who may be employed without regard to the civil service or merit system of the city. The clerical assistant shall serve at the pleasure of the council.
*(Acts 1989, No. 89-750, p. 1518, §14; Act 2021-269, §1.)*
##### **§ 11-43D-15** Noninterference of Council with Administrative Service {#sec-11-43d-15 omnilex-key=us-al-statutes--title-11--11-43D-15}
Neither the council nor any of its members shall direct or request the appointment of any person to, or his removal from, office or position by the mayor or by any of his subordinates, or in any manner take part in the appointment or removal of officers and employees in the administrative service of the city. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the mayor and neither the council nor any member thereof may give orders to any subordinates of the mayor, either publicly or privately.
*(Acts 1989, No. 89-750, p. 1518, §15.)*
##### **§ 11-43D-16** Administrative Assistants {#sec-11-43d-16 omnilex-key=us-al-statutes--title-11--11-43D-16}
Upon the request of the mayor, the council may establish not more than two positions of administrative assistants to the mayor and establish the salary for said positions. Once established, the mayor shall appoint a person or persons to hold said position or positions. These positions shall not be subject to the rules and regulations of any civil service or merit system applicable to said city.
*(Acts 1989, No. 89-750, p. 1518, §16.)*
##### **§ 11-43D-17** Appointment of Accountant; Examination of All Books and Accounts; Compensation {#sec-11-43d-17 omnilex-key=us-al-statutes--title-11--11-43D-17}
The mayor, at least once a year, shall appoint a certified public accountant or the Department of Examiners of Public Accounts to conduct an examination in accordance with generally accepted auditing standards of all books and accounts of the city since the preceding examination and to make a full report thereof in writing, under oath, to be submitted to the council at its first meeting after the completion of such report, and the same shall be spread upon the minutes of the council. For his services, said certified public accountant or the Department of Examiners of Public Accounts shall be paid such sum as may be agreed upon.
*(Acts 1989, No. 89-750, p. 1518, §17.)*
##### **§ 11-43D-18** Establishment of Salaries for Mayor and Council {#sec-11-43d-18 omnilex-key=us-al-statutes--title-11--11-43D-18}
The salary of the first mayor and council elected hereunder shall be established by the commission at least six months prior to the mayor and council taking office. Such salary, and the manner in which it is to be paid, shall be established by ordinance of the governing body. The salary of all mayors and council members serving the city after the first mayor and council shall be established as provided by general law applicable to mayor-council municipalities. Notwithstanding any of the provisions of this chapter, the mayor and council members shall be reimbursed for approved expenses incurred in the performance of their duties.
*(Acts 1989, No. 89-750, p. 1518, §18.)*
##### **§ 11-43D-19** President and President Pro Tem of Council {#sec-11-43d-19 omnilex-key=us-al-statutes--title-11--11-43D-19}
The council shall elect one of its members to serve as president of the council. The president shall preside at meetings of the council and have a vote on all matters coming before the council. The council shall also elect a president pro tem, who shall act as president of the council during the absence or disability of the president.
*(Acts 1989, No. 89-750, p. 1518, §19.)*
##### **§ 11-43D-20** Notice of Council Meetings; Mayor’s Rights in Council Meetings {#sec-11-43d-20 omnilex-key=us-al-statutes--title-11--11-43D-20}
The mayor shall be given notice of all council meetings and shall have the privilege of attending the meetings of the council and of taking part in the deliberations thereof. The mayor shall not have the right to vote on any matter that is presented to the council.
*(Acts 1989, No. 89-750, p. 1518, §20.)*
##### **§ 11-43D-21** Temporary Absence or Disability of Mayor; Filling Vacancies {#sec-11-43d-21 omnilex-key=us-al-statutes--title-11--11-43D-21}
(a) In the case of absences of the mayor from the city or his inability to serve on account of sickness or any other good reason, the president of the council or president pro tem of the council, in case of absence or disability of the president of the council, shall act as mayor pro tempore with the power and authority of the mayor during such time. In the event of a failure or refusal of the president of the council or the president pro tempore to act, the council may appoint one of its members to act as mayor pro tempore with like effect which appointment shall be entered in the minutes of the council.
(b) In the event of a vacancy from any cause in the office of the mayor, council member-at-large, or council members from a district, the council shall call for an election to fill said vacancy which shall be called and held not less than 30 nor more than 60 days from the occurrence of said vacancy. Notice of said election and the time of holding the same shall be given by one publication at least 15 days in advance of the same in one or more newspapers in said city at the expense of the city. The person chosen at said election shall qualify as speedily as possible after election. Upon notice of the vacancy in the office of mayor, the president of the council shall serve as mayor pro tempore with the power and authority of the mayor during such time and until the election of the mayor. This ordinance shall become effective upon its due adoption and publication as required by law.
(c) In the event of a vacancy from any cause in the office of the mayor, council member-at-large, or council member from a district and said vacancy shall occur within six months of a regularly scheduled election for the purpose of electing the council members and the mayor, the said vacancy shall be filled by the council in accordance with the laws of the State of Alabama.
*(Acts 1989, No. 89-750, p. 1518, §21.)*
##### **§ 11-43D-22** Continuance of Ordinances and Resolutions {#sec-11-43d-22 omnilex-key=us-al-statutes--title-11--11-43D-22}
All ordinances and resolutions of the municipality in effect at the time of adoption of the mayor-council form of government herein set up shall continue in effect unless and until changed or repealed by the council.
*(Acts 1989, No. 89-750, p. 1518, §22.)*
### **Chapter 44** Commission Form of Government
#### **Article 1** General Provisions
##### **§ 11-44-1** Applicability of Article {#sec-11-44-1 omnilex-key=us-al-statutes--title-11--11-44-1}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2335; Acts 1931, No. 75, p. 151; Code 1940, T. 37, §35.)*
##### **§ 11-44-2** Petition to Probate Judge for Election as to Organization Under Commission Form of Government; Examination of Petition and Certification Thereof to Mayor {#sec-11-44-2 omnilex-key=us-al-statutes--title-11--11-44-2}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2336; Acts 1927, No. 397, p. 465; Code 1940, T. 37, §36.)*
##### **§ 11-44-3** Calling of Election by Mayor {#sec-11-44-3 omnilex-key=us-al-statutes--title-11--11-44-3}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2337; Code 1940, T. 37, §37.)*
##### **§ 11-44-4** Subsequent Elections Not to Be Held Within Two Years of Preceding Election {#sec-11-44-4 omnilex-key=us-al-statutes--title-11--11-44-4}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2338; Code 1940, T. 37, §38.)*
##### **§ 11-44-5** Proposition Submitted to Voters; Form and Marking of Ballots {#sec-11-44-5 omnilex-key=us-al-statutes--title-11--11-44-5}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2339; Code 1940, T. 37, §39.)*
##### **§ 11-44-6** Conduct of Election, Canvassing of Vote, and Declaration of Election Result; Adoption and Certification of Provisions of Article {#sec-11-44-6 omnilex-key=us-al-statutes--title-11--11-44-6}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2340; Code 1940, T. 37, §40.)*
##### **§ 11-44-7** Commissioners - Procedure for Election; Terms of Office {#sec-11-44-7 omnilex-key=us-al-statutes--title-11--11-44-7}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2341; Acts 1927, No. 237, p. 253; Acts 1935, No. 184, p. 235; Code 1940, T. 37, §41.)*
##### **§ 11-44-8** Commissioners - Designation; Qualification for Office {#sec-11-44-8 omnilex-key=us-al-statutes--title-11--11-44-8}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2343; Code 1940, T. 37, §42.)*
##### **§ 11-44-9** Commissioners - Oath; Bond {#sec-11-44-9 omnilex-key=us-al-statutes--title-11--11-44-9}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2374; Code 1940, T. 37, §71.)*
##### **§ 11-44-10** Commissioners - Entry into Office, Etc {#sec-11-44-10 omnilex-key=us-al-statutes--title-11--11-44-10}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2344; Code 1940, T. 37, §43.)*
##### **§ 11-44-11** Commissioners - Filling of Vacancies Caused by Ineligibility {#sec-11-44-11 omnilex-key=us-al-statutes--title-11--11-44-11}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2373; Code 1940, T. 37, §70.)*
##### **§ 11-44-12** Commissioners - Filling of Vacancies Caused by Death, Resignation, or Removal {#sec-11-44-12 omnilex-key=us-al-statutes--title-11--11-44-12}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2376; Code 1940, T. 37, §72.)*
##### **§ 11-44-13** Commissioners - Filling of Two Simultaneous Vacancies {#sec-11-44-13 omnilex-key=us-al-statutes--title-11--11-44-13}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2393; Code 1940, T. 37, §87.)*
##### **§ 11-44-14** President of Board of Commissioners - Election; Powers and Duties Generally {#sec-11-44-14 omnilex-key=us-al-statutes--title-11--11-44-14}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2345; Code 1940, T. 37, §44.)*
##### **§ 11-44-15** President of Board of Commissioners - Designation as Mayor {#sec-11-44-15 omnilex-key=us-al-statutes--title-11--11-44-15}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1949, No. 31, p. 44.)*
##### **§ 11-44-16** President of Board of Commissioners - Performance of Duties and Responsibilities of Mayor in Certain Municipalities {#sec-11-44-16 omnilex-key=us-al-statutes--title-11--11-44-16}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1953, No. 310, p. 367, §1; Acts 1967, No. 512, p. 1236.)*
##### **§ 11-44-17** President of Board of Commissioners - Performance of Duties and Responsibilities of Mayor in Certain Municipalities - Duties as President of Board of Commissioners and as Mayor {#sec-11-44-17 omnilex-key=us-al-statutes--title-11--11-44-17}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1953, No. 310, p. 367, §2.)*
##### **§ 11-44-18** Compensation of Commissioners and President of Board of Commissioners {#sec-11-44-18 omnilex-key=us-al-statutes--title-11--11-44-18}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Code 1923, §2377; Code 1940, T. 37, §73; Acts 1975, 1st Ex. Sess., No. 26, p. 77, §1; Acts 1980, No. 80-361, p. 481.)*
##### **§ 11-44-18.1** Salaries and Expenses of Mayor and Associate Commissioners in Class 5 Municipalities; Payment of Funds Out of Treasury by Warrant; Designation of Commissioner to Act in Mayor’s Absence; Disbursements Shall Be Authorized by Resolution or Voucher {#sec-11-44-18.1 omnilex-key=us-al-statutes--title-11--11-44-18.1}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1985, 2nd Ex. Sess., No. 85-825, p. 82; Acts 1985, 2nd Ex. Sess., No. 85-981, p. 327.)*
##### **§ 11-44-19** Meetings of Board of Commissioners - Time, Etc {#sec-11-44-19 omnilex-key=us-al-statutes--title-11--11-44-19}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1940, T. 37, §52; Acts 1951, No. 904, p. 1543; Acts 1957, No. 672, p. 1020.)*
##### **§ 11-44-20** Meetings of Board of Commissioners - Presiding Officer; Quorum {#sec-11-44-20 omnilex-key=us-al-statutes--title-11--11-44-20}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2354; Code 1940, T. 37, §53.)*
##### **§ 11-44-21** Meetings of Board of Commissioners - When Open to Public {#sec-11-44-21 omnilex-key=us-al-statutes--title-11--11-44-21}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2356; Code 1940, T. 37, §55.)*
##### **§ 11-44-22** Meetings of Board of Commissioners - Record of Proceedings {#sec-11-44-22 omnilex-key=us-al-statutes--title-11--11-44-22}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2359; Code 1940, T. 37, §58.)*
##### **§ 11-44-23** Powers and Authority of Board of Commissioners Upon Organization of Commission Form of Government; Abolition of Certain Boards, Commissions, and Officers; Continuation of Corporate Existence, Etc., of Municipality {#sec-11-44-23 omnilex-key=us-al-statutes--title-11--11-44-23}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2346; Code 1940, T. 37, §45.)*
##### **§ 11-44-24** Continuation in Force of Laws, Bylaws, Ordinances, and Resolutions {#sec-11-44-24 omnilex-key=us-al-statutes--title-11--11-44-24}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2347; Code 1940, T. 37, §46.)*
##### **§ 11-44-25** Continuation of Territorial Limits; Discontinuance of Wards and Election of Commissioners at Large {#sec-11-44-25 omnilex-key=us-al-statutes--title-11--11-44-25}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2348; Code 1940, T. 37, §47.)*
##### **§ 11-44-26** Continuation, Etc., of Rights, Powers, Liabilities, Etc {#sec-11-44-26 omnilex-key=us-al-statutes--title-11--11-44-26}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2349; Code 1940, T. 37, §48.)*
##### **§ 11-44-27** Continuation in Office of Officials and Employees {#sec-11-44-27 omnilex-key=us-al-statutes--title-11--11-44-27}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2350; Code 1940, T. 37, §49.)*
##### **§ 11-44-28** Selection, Compensation, Removal, Etc., of Officers and Employees Generally {#sec-11-44-28 omnilex-key=us-al-statutes--title-11--11-44-28}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2351; Acts 1933, Ex. Sess., No. 150, p. 139; Acts 1935, No. 505, p. 1083; Code 1940, T. 37, §50.)*
##### **§ 11-44-29** Distribution of Executive and Administrative Powers and Duties Among Departments; Determination and Exercise of Powers and Duties of Departments by Commissioners {#sec-11-44-29 omnilex-key=us-al-statutes--title-11--11-44-29}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2352; Code 1940, T. 37, §51.)*
##### **§ 11-44-30** Assignment or Delegation of Powers and Duties of Board of Commissioners {#sec-11-44-30 omnilex-key=us-al-statutes--title-11--11-44-30}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2355; Code 1940, T. 37, §54.)*
##### **§ 11-44-31** Resolutions, Bylaws, or Ordinances Generally - Manner of Enactment Generally {#sec-11-44-31 omnilex-key=us-al-statutes--title-11--11-44-31}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2357; Code 1940, T. 37, §56.)*
##### **§ 11-44-32** Resolutions, Bylaws, or Ordinances Generally - Form and Voting Thereon {#sec-11-44-32 omnilex-key=us-al-statutes--title-11--11-44-32}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2358; Code 1940, T. 37, §57.)*
##### **§ 11-44-33** Resolutions, Bylaws, or Ordinances Granting Franchises, Etc., for Use of Streets, Public Highways, Etc. - Publication; Effective Date {#sec-11-44-33 omnilex-key=us-al-statutes--title-11--11-44-33}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2360; Code 1940, T. 37, §59.)*
##### **§ 11-44-34** Resolutions, Bylaws, or Ordinances Granting Franchises, Etc., for Use of Streets, Public Highways, Etc. - Objections Thereto and Elections Thereon {#sec-11-44-34 omnilex-key=us-al-statutes--title-11--11-44-34}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2361; Code 1940, T. 37, §60.)*
##### **§ 11-44-35** Resolutions, Bylaws, or Ordinances Granting Franchises, Etc., for Use of Streets, Public Highways, Etc. - Proceedings Upon Determination of Election Result {#sec-11-44-35 omnilex-key=us-al-statutes--title-11--11-44-35}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2362; Code 1940, T. 37, §61.)*
##### **§ 11-44-36** Manner in Which Franchise, Etc., as to Use of Streets, Public Highways, Etc., to Be Granted, Extended, or Enlarged {#sec-11-44-36 omnilex-key=us-al-statutes--title-11--11-44-36}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2363; Code 1940, T. 37, §62.)*
##### **§ 11-44-37** Elections for Office of Commissioner - Filing and Form of Statement of Candidacy, Etc {#sec-11-44-37 omnilex-key=us-al-statutes--title-11--11-44-37}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2365; Code 1940, T. 37, §63.)*
##### **§ 11-44-38** Elections for Office of Commissioner - Qualifications of Candidates {#sec-11-44-38 omnilex-key=us-al-statutes--title-11--11-44-38}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2372; Code 1940, T. 37, §69.)*
##### **§ 11-44-39** Elections for Office of Commissioner - Ballots Generally {#sec-11-44-39 omnilex-key=us-al-statutes--title-11--11-44-39}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2367; Code 1940, T. 37, §64.)*
##### **§ 11-44-40** Elections for Office of Commissioner - Specification in Statement of Candidacy and Ballot as to Long or Short Term {#sec-11-44-40 omnilex-key=us-al-statutes--title-11--11-44-40}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2368; Code 1940, T. 37, §65.)*
##### **§ 11-44-41** Elections for Office of Commissioner - Manner of Voting; Majority of Votes Required {#sec-11-44-41 omnilex-key=us-al-statutes--title-11--11-44-41}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2369; Code 1940, T. 37, §66.)*
##### **§ 11-44-42** Elections for Office of Commissioner - Holding of Runoff Election {#sec-11-44-42 omnilex-key=us-al-statutes--title-11--11-44-42}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2370; Code 1940, T. 37, §67.)*
##### **§ 11-44-43** Elections for Office of Commissioner - Qualified Voters Only to Vote {#sec-11-44-43 omnilex-key=us-al-statutes--title-11--11-44-43}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2371; Code 1940, T. 37, §68.)*
##### **§ 11-44-44** Filing and Publication of Statement of Campaign Expenses, Etc., by Commissioners {#sec-11-44-44 omnilex-key=us-al-statutes--title-11--11-44-44}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2380; Code 1940, T. 37, §76.)*
##### **§ 11-44-45** Selection of Municipal Employees {#sec-11-44-45 omnilex-key=us-al-statutes--title-11--11-44-45}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2378; Code 1940, T. 37, §74.)*
##### **§ 11-44-46** Officers or Employees Not to Be Interested in Contracts for Services, Etc., for Municipality or Railway, Gas Works, Etc., Therein {#sec-11-44-46 omnilex-key=us-al-statutes--title-11--11-44-46}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2381; Code 1940, T. 37, §77.)*
##### **§ 11-44-47** Officers Not to Be Interested in or Employed by Public Service Utilities {#sec-11-44-47 omnilex-key=us-al-statutes--title-11--11-44-47}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2382; Code 1940, T. 37, §78.)*
##### **§ 11-44-48** Acceptance, Etc., of Free Passes, Gifts, Etc., by Officers or Employees from Railways, Gas Works, Etc {#sec-11-44-48 omnilex-key=us-al-statutes--title-11--11-44-48}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §§2383, 2384; Code 1940, T. 37, §79.)*
##### **§ 11-44-49** Publication, Etc., of Quarterly Statement of Receipts and Expenses, Etc {#sec-11-44-49 omnilex-key=us-al-statutes--title-11--11-44-49}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2385; Code 1940, T. 37, §80.)*
##### **§ 11-44-50** Examinations of Books and Accounts {#sec-11-44-50 omnilex-key=us-al-statutes--title-11--11-44-50}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2386; Code 1940, T. 37, §81.)*
##### **§ 11-44-51** Maintenance of Record Books by Probate Judges and Compensation Therefor {#sec-11-44-51 omnilex-key=us-al-statutes--title-11--11-44-51}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2390; Code 1940, T. 37, §85.)*
##### **§ 11-44-52** Promising, Etc., of Employment, Etc., to Obtain Political Support, Etc.; Provision of Automobiles, Etc., to Bring Voters to Polls {#sec-11-44-52 omnilex-key=us-al-statutes--title-11--11-44-52}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2379; Code 1940, T. 37, §75.)*
##### **§ 11-44-53** Offering or Accepting Bribes for Votes; Unauthorized Voting {#sec-11-44-53 omnilex-key=us-al-statutes--title-11--11-44-53}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2387; Code 1940, T. 37, §82.)*
##### **§ 11-44-54** Solicitation, Etc., of Votes by Municipal Employees {#sec-11-44-54 omnilex-key=us-al-statutes--title-11--11-44-54}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2388; Code 1940, T. 37, §83.)*
##### **§ 11-44-55** Payment, Etc., of Persons to Solicit Votes; Acceptance of Pay, Etc., to Solicit Votes {#sec-11-44-55 omnilex-key=us-al-statutes--title-11--11-44-55}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2391; Code 1940, T. 37, §86.)*
##### **§ 11-44-56** Applicability of General State Laws as to Municipal Elections {#sec-11-44-56 omnilex-key=us-al-statutes--title-11--11-44-56}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §2389; Code 1940, T. 37, §84.)*
##### **§ 11-44-57** Penalties for Violations of Provisions of Article {#sec-11-44-57 omnilex-key=us-al-statutes--title-11--11-44-57}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 504, p. 591; Code 1923, §5005; Code 1940, T. 37, §88.)*
##### **§ 11-44-58** Designation by Ordinance of Mayor and Finance Commissioner, Public Works Commissioner, and Public Safety Commissioner in Class 7 Municipalities; Elections; Further Changes in Designations Must Be Authorized by Legislature {#sec-11-44-58 omnilex-key=us-al-statutes--title-11--11-44-58}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1986, No. 86-220, p. 316.)*
#### **Article 2** Optional Form A
##### **§ 11-44-70** Applicability of Article {#sec-11-44-70 omnilex-key=us-al-statutes--title-11--11-44-70}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §89.)*
##### **§ 11-44-71** Procedure for Adoption - Generally {#sec-11-44-71 omnilex-key=us-al-statutes--title-11--11-44-71}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §90.)*
##### **§ 11-44-72** Procedure for Adoption - Election {#sec-11-44-72 omnilex-key=us-al-statutes--title-11--11-44-72}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §91.)*
##### **§ 11-44-73** Commissioners - Election, Terms of Office, Etc., Generally {#sec-11-44-73 omnilex-key=us-al-statutes--title-11--11-44-73}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 749, p. 869; Acts 1939, No. 246, p. 408; Code 1940, T. 37, §92.)*
##### **§ 11-44-74** Commissioners - Election, Terms of Office, Etc., of Commissioners Elected After September 1, 1945 {#sec-11-44-74 omnilex-key=us-al-statutes--title-11--11-44-74}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1939, No. 246, p. 408; Code 1940, T. 37, §93; Acts 1951, No. 640, p. 1095.)*
##### **§ 11-44-75** Commissioners - Designation of Positions and Election Thereto {#sec-11-44-75 omnilex-key=us-al-statutes--title-11--11-44-75}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1939, No. 246, p. 408; Code 1940, T. 37, §94; Acts 1945, No. 295, p. 490, §1.)*
##### **§ 11-44-76** Commissioners - Qualifications; Filling of Vacancies Caused by Ineligibility {#sec-11-44-76 omnilex-key=us-al-statutes--title-11--11-44-76}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §102.)*
##### **§ 11-44-77** Commissioners - Filling of Vacancies Caused by Death, Resignation or Removal {#sec-11-44-77 omnilex-key=us-al-statutes--title-11--11-44-77}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Acts 1939, No. 352, p. 481; Code 1940, T. 37, §104.)*
##### **§ 11-44-78** Commissioners - Filling of Two or More Simultaneous Vacancies {#sec-11-44-78 omnilex-key=us-al-statutes--title-11--11-44-78}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §115.)*
##### **§ 11-44-79** Commissioners - Oath; Bond {#sec-11-44-79 omnilex-key=us-al-statutes--title-11--11-44-79}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §103.)*
##### **§ 11-44-80** Commissioners - Compensation {#sec-11-44-80 omnilex-key=us-al-statutes--title-11--11-44-80}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Acts 1939, No. 283, p. 440; Code 1940, T. 37, §105; Acts 1945, No. 295, p. 490, §4; Acts 1953, No. 315, p. 372; Acts 1955, No. 396, p. 931; Acts 1980, No. 80-362, p. 482.)*
##### **§ 11-44-81** Commissioners - Designation; Qualification for and Taking of Office {#sec-11-44-81 omnilex-key=us-al-statutes--title-11--11-44-81}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1939, No. 289, p. 441, §1; Code 1940, T. 37, §95; Acts 1945, No. 295, p. 490, §2.)*
##### **§ 11-44-82** Commissioners - Meetings {#sec-11-44-82 omnilex-key=us-al-statutes--title-11--11-44-82}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1927, No. 390, p. 461; Code 1940, T. 37, §98.)*
##### **§ 11-44-83** Mayor-President of Board of Commissioners {#sec-11-44-83 omnilex-key=us-al-statutes--title-11--11-44-83}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1939, No. 289, p. 441; Code 1940, T. 37, §95; Acts 1945, No. 295, p. 490, §2.)*
##### **§ 11-44-84** Powers and Authority of Board of Commissioners Upon Organization of Commission Form of Government; Abolition of Certain Boards, Commissions, and Officers; Continuation of Corporate Existence, Territorial Limits, Etc., of Municipality {#sec-11-44-84 omnilex-key=us-al-statutes--title-11--11-44-84}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §96.)*
##### **§ 11-44-85** Appointment, Etc., of Officers and Employees Generally; Distribution of Executive and Administrative Powers and Duties Among Departments {#sec-11-44-85 omnilex-key=us-al-statutes--title-11--11-44-85}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1935, No. 505, p. 1083; Code 1940, T. 37, §97; Acts 1955, No. 557, p. 1219.)*
##### **§ 11-44-86** Assignment or Delegation of Powers and Duties of Board of Commissioners {#sec-11-44-86 omnilex-key=us-al-statutes--title-11--11-44-86}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1927, No. 390, p. 461; Code 1940, T. 37, §98.)*
##### **§ 11-44-87** Enactment of Resolutions, Bylaws, or Ordinances Generally {#sec-11-44-87 omnilex-key=us-al-statutes--title-11--11-44-87}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1927, No. 390, p. 461; Code 1940, T. 37, §98.)*
##### **§ 11-44-88** Procedure for Adoption of Resolutions, Bylaws, or Ordinances Granting Franchises, Etc., for Use of Streets, Public Highways, Etc.; Manner in Which Franchises, Etc., Extended, Enlarged, Etc {#sec-11-44-88 omnilex-key=us-al-statutes--title-11--11-44-88}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §99.)*
##### **§ 11-44-89** Procedure for Letting of Contracts for Construction, Improvements, Etc., of Streets, Highways, Etc {#sec-11-44-89 omnilex-key=us-al-statutes--title-11--11-44-89}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1927, No. 390, p. 461; Code 1940, T. 37, §98.)*
##### **§ 11-44-90** Elections for Office of Commissioner - Filing and Form of Statement of Candidacy, Etc {#sec-11-44-90 omnilex-key=us-al-statutes--title-11--11-44-90}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 749, p. 869; Code 1940, T. 37, §100.)*
##### **§ 11-44-91** Elections for Office of Commissioner - Ballots; Voting {#sec-11-44-91 omnilex-key=us-al-statutes--title-11--11-44-91}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Acts 1939, No. 246, p. 408; Code 1940, T. 37, §101; Acts 1945, No. 295, p. 490, §3.)*
##### **§ 11-44-92** Filing and Publication of Statement of Campaign Expenses, Etc., by Commissioners {#sec-11-44-92 omnilex-key=us-al-statutes--title-11--11-44-92}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §107.)*
##### **§ 11-44-93** Appointment of Municipal Employees {#sec-11-44-93 omnilex-key=us-al-statutes--title-11--11-44-93}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §106.)*
##### **§ 11-44-94** Conflicts of Interest of Municipal Officers and Employees {#sec-11-44-94 omnilex-key=us-al-statutes--title-11--11-44-94}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §108.)*
##### **§ 11-44-95** Publication, Etc., of Monthly Statement of Receipts and Expenses, Etc.; Examinations of Books and Accounts {#sec-11-44-95 omnilex-key=us-al-statutes--title-11--11-44-95}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §109.)*
##### **§ 11-44-96** Maintenance of Record Books by Probate Judges and Compensation Therefor; Fee for Examination of Petitions for Elections {#sec-11-44-96 omnilex-key=us-al-statutes--title-11--11-44-96}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §112.)*
##### **§ 11-44-97** Use of Influence or Contribution of Money, Etc., in Elections for Commissioners by Municipal Officers or Employees {#sec-11-44-97 omnilex-key=us-al-statutes--title-11--11-44-97}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §108.)*
##### **§ 11-44-98** Solicitation of Votes by Municipal Employees {#sec-11-44-98 omnilex-key=us-al-statutes--title-11--11-44-98}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §110.)*
##### **§ 11-44-99** Payment, Etc., of Persons to Solicit Votes; Acceptance of Pay, Etc., to Solicit Votes {#sec-11-44-99 omnilex-key=us-al-statutes--title-11--11-44-99}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §113.)*
##### **§ 11-44-100** Applicability of General State Laws as to Municipal Elections {#sec-11-44-100 omnilex-key=us-al-statutes--title-11--11-44-100}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §111.)*
##### **§ 11-44-101** Requirements, Etc., as to Petitions {#sec-11-44-101 omnilex-key=us-al-statutes--title-11--11-44-101}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §114.)*
##### **§ 11-44-102** Certain Persons Not to Receive Profits, Wages, Etc., from Municipality {#sec-11-44-102 omnilex-key=us-al-statutes--title-11--11-44-102}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §116.)*
##### **§ 11-44-103** Certain Persons Not to Become Officers or Employees of Municipality {#sec-11-44-103 omnilex-key=us-al-statutes--title-11--11-44-103}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §117.)*
##### **§ 11-44-104** Commissioners, Officers, or Employees to Receive Regular Compensation Only {#sec-11-44-104 omnilex-key=us-al-statutes--title-11--11-44-104}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1911, No. 281, p. 330; Code 1940, T. 37, §118.)*
##### **§ 11-44-105** Adoption of Ordinances by Initiative and Referendum {#sec-11-44-105 omnilex-key=us-al-statutes--title-11--11-44-105}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 749, p. 869; Code 1940, T. 37, §119.)*
#### **Article 3** Optional Form B
##### **§ 11-44-120** Definitions {#sec-11-44-120 omnilex-key=us-al-statutes--title-11--11-44-120}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §1.)*
##### **§ 11-44-121** Adoption by Ordinance; Powers, Designation, Election, Etc., of Commissioners Generally; Continuation in Office of Members of Governing Body {#sec-11-44-121 omnilex-key=us-al-statutes--title-11--11-44-121}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §2.)*
##### **§ 11-44-122** Continuation in Force of Laws, Ordinances, Resolutions, and Appointments of Municipal Officials and Employees {#sec-11-44-122 omnilex-key=us-al-statutes--title-11--11-44-122}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §3.)*
##### **§ 11-44-123** Commissioners - Election; Terms of Office; Designation of Positions; Qualification for Office and Taking of Oath {#sec-11-44-123 omnilex-key=us-al-statutes--title-11--11-44-123}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*Acts 1964, 1st Ex. Sess., No. 214, p. 288, §4.)*
##### **§ 11-44-124** Commissioners - Qualification of Candidates Therefor {#sec-11-44-124 omnilex-key=us-al-statutes--title-11--11-44-124}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §5.)*
##### **§ 11-44-125** Commissioners - Vacancies {#sec-11-44-125 omnilex-key=us-al-statutes--title-11--11-44-125}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §13.)*
##### **§ 11-44-126** Meetings of Board of Commissioners - Time; Presiding Officer; Quorum; Record of Proceedings {#sec-11-44-126 omnilex-key=us-al-statutes--title-11--11-44-126}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §7.)*
##### **§ 11-44-127** Meetings of Board of Commissioners - Place; Meetings Open to Public {#sec-11-44-127 omnilex-key=us-al-statutes--title-11--11-44-127}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §15.)*
##### **§ 11-44-128** Bond of Commissioners; Holding of Offices of Profit or Trust, Etc., by Commissioners, Etc {#sec-11-44-128 omnilex-key=us-al-statutes--title-11--11-44-128}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §10.)*
##### **§ 11-44-129** Compensation of Commissioners; Disbursement of Funds from Municipal Treasury {#sec-11-44-129 omnilex-key=us-al-statutes--title-11--11-44-129}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §14; Acts 1980, No. 80-365, p. 484.)*
##### **§ 11-44-130** Removal of Commissioners - Filing, Etc., of Petition Requesting Resignation of Commissioner; Examination of Petition, Issuance of Certificate, Etc., by Probate Judge {#sec-11-44-130 omnilex-key=us-al-statutes--title-11--11-44-130}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §17.)*
##### **§ 11-44-131** Removal of Commissioners - Certification of Lists of Electors to Probate Judge Where Municipality Situated in Two or More Counties {#sec-11-44-131 omnilex-key=us-al-statutes--title-11--11-44-131}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §21.)*
##### **§ 11-44-132** Removal of Commissioners - Unauthorized Signing of Petition {#sec-11-44-132 omnilex-key=us-al-statutes--title-11--11-44-132}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §19.)*
##### **§ 11-44-133** Removal of Commissioners - Fee of Probate Judge; Payment of Security Upon Presentation of Petition to Probate Judge {#sec-11-44-133 omnilex-key=us-al-statutes--title-11--11-44-133}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §18.)*
##### **§ 11-44-134** Removal of Commissioners - Delivery of Petition and Certificate to Board of Commissioners; Recall Election; Special Election for Selection of Successor {#sec-11-44-134 omnilex-key=us-al-statutes--title-11--11-44-134}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §20.)*
##### **§ 11-44-135** Distribution of Municipal Powers and Duties Among Departments; Authority of Commissioners as Heads of Departments; Additional Duties of President of Board {#sec-11-44-135 omnilex-key=us-al-statutes--title-11--11-44-135}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §6.)*
##### **§ 11-44-136** Publication, Enactment, Etc., of Ordinances or Resolutions Generally {#sec-11-44-136 omnilex-key=us-al-statutes--title-11--11-44-136}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §7.)*
##### **§ 11-44-137** Ordinances Granting Franchises, Etc., for Use of Public Highways or Property {#sec-11-44-137 omnilex-key=us-al-statutes--title-11--11-44-137}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §8.)*
##### **§ 11-44-138** Conflicts of Interest of Commissioners, Officers, or Employees; Certain Persons Not to Be Employed by or Receive Compensation from Municipality; Privileges, Immunities, Etc., of Elective Officers of Municipality {#sec-11-44-138 omnilex-key=us-al-statutes--title-11--11-44-138}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §11.)*
##### **§ 11-44-139** Publication of Semiannual Statement of Receipts and Expenses, Etc.; Audit of Books and Accounts {#sec-11-44-139 omnilex-key=us-al-statutes--title-11--11-44-139}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §12.)*
##### **§ 11-44-140** Alteration of Form of Government of Municipality {#sec-11-44-140 omnilex-key=us-al-statutes--title-11--11-44-140}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1964, 1st Ex. Sess., No. 214, p. 288, §16.)*
#### **Article 4** Abandonment
##### **§ 11-44-150** Petition to Probate Judge for Election as to Abandonment of Commission Form of Government {#sec-11-44-150 omnilex-key=us-al-statutes--title-11--11-44-150}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2394; Code 1940, T. 37, §120.)*
##### **§ 11-44-151** Examination of Petition and Certification Thereof to President of Board of Commissioners {#sec-11-44-151 omnilex-key=us-al-statutes--title-11--11-44-151}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2395; Code 1940, T. 37, §121.)*
##### **§ 11-44-152** Calling of Election {#sec-11-44-152 omnilex-key=us-al-statutes--title-11--11-44-152}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2396; Code 1940, T. 37, §122.)*
##### **§ 11-44-153** Subsequent Elections Not to Be Held Within Two Years of Preceding Election {#sec-11-44-153 omnilex-key=us-al-statutes--title-11--11-44-153}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2397; Code 1940, T. 37, §123.)*
##### **§ 11-44-154** Proposition Submitted to Voters; Form and Marking of Ballots {#sec-11-44-154 omnilex-key=us-al-statutes--title-11--11-44-154}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2398; Code 1940, T. 37, §124.)*
##### **§ 11-44-155** Conduct of Election, Canvassing of Vote and Declaration of Election Result; Adoption and Certification Thereof of Provisions as to Mayor-Council Form of Government {#sec-11-44-155 omnilex-key=us-al-statutes--title-11--11-44-155}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2399; Code 1940, T. 37, §125.)*
##### **§ 11-44-156** Mayor and Aldermen - Election {#sec-11-44-156 omnilex-key=us-al-statutes--title-11--11-44-156}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2400; Code 1940, T. 37, §126.)*
##### **§ 11-44-157** Mayor and Aldermen - Powers and Duties {#sec-11-44-157 omnilex-key=us-al-statutes--title-11--11-44-157}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2402; Code 1940, T. 37, §128.)*
##### **§ 11-44-158** Continuation of Corporate Existence, Etc., of Municipality; Continuation in Force of Laws, Bylaws, Ordinances, and Resolutions {#sec-11-44-158 omnilex-key=us-al-statutes--title-11--11-44-158}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2403; Code 1940, T. 37, §129.)*
##### **§ 11-44-159** Continuation of Territorial Limits; Creation of Wards; Vesting of Rights, Powers, and Privileges {#sec-11-44-159 omnilex-key=us-al-statutes--title-11--11-44-159}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2404; Code 1940, T. 37, §130.)*
##### **§ 11-44-160** Rights, Liabilities, Civil Actions, Etc., Not Affected {#sec-11-44-160 omnilex-key=us-al-statutes--title-11--11-44-160}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2405; Code 1940, T. 37, §131.)*
##### **§ 11-44-161** Continuation in Office of Officials and Employees; Offices of Commissioners, President of Board of Commissioners, Etc., Abolished {#sec-11-44-161 omnilex-key=us-al-statutes--title-11--11-44-161}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2406; Code 1940, T. 37, §132.)*
##### **§ 11-44-162** Management, Etc., of Municipalities Abandoning Commission Form of Government; Powers, Duties, Etc., of Mayor and Aldermen {#sec-11-44-162 omnilex-key=us-al-statutes--title-11--11-44-162}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1915, No. 699, p. 770; Code 1923, §2407; Code 1940, T. 37, §133.)*
### **Chapter 44A** Abandonment of Commission Form of Government in Class 7 Municipalities
#### **Article 1** In General
##### **§ 11-44A-1** Referendum to Determine Continuation of Commission or Adoption of Mayor-Council Form of Government {#sec-11-44a-1 omnilex-key=us-al-statutes--title-11--11-44A-1}
Within three months of the approval of this section, the governing body of any Class 7 municipality with a commission form of government organized pursuant to Article 1, Chapter 44, Title 11, by a majority vote of the members of that governing body, may call for a referendum to be held at public expense within 90 days after such call at which the following question shall be submitted to the voters of any such municipality:
“Shall the city of _______________ adopt a mayor-council form of government with the mayor elected at large and a five-member council elected from single member districts?
YES _____ NO ______”
*(Acts 1984, No. 84-397, §1; Acts 1984, 2nd Ex. Sess., No. 85-45, p. 68.)*
##### **§ 11-44A-2** Establishment of Council Districts; Salaries; Election Notice; Powers and Duties of Mayor-Council {#sec-11-44a-2 omnilex-key=us-al-statutes--title-11--11-44A-2}
If a majority of the voters voting in said election approve the proposition, then,
(1) Within 90 days thereafter the commission shall adopt an ordinance establishing the boundaries of the five council districts herein provided for and shall take such steps as are necessary to comply with the federal Voting Rights Act of 1965, as amended,
(2) Within 60 days after the referendum the commissioners shall establish the salaries to be paid to the mayor and council members to be elected at the first election held hereunder,
(3) Within ten days after receipt of notification of compliance with the federal Voting Rights Act of 1965, as amended, the mayor or other chief executive officer of the municipality shall give notice of an election for a mayor and all the members of the city council to be held not more than 90 days after the publication of said notice, and
(4) The municipality shall thereafter and as provided in this article be governed by a mayor elected at large and a five-member council elected from single-member districts, which shall have the same powers and duties as other mayor-council municipalities organized under Title 11 and any other powers and duties not inconsistent with this article which may have been theretofore granted to such municipality.
*(Acts 1984, No. 84-397, p. 922, §2.)*
##### **§ 11-44A-3** Mayor-Council - Assumption of Office; Duties, Etc., of Commission Terminated {#sec-11-44a-3 omnilex-key=us-al-statutes--title-11--11-44A-3}
On noon of the seventh day following the canvass of the election results, the newly elected mayor and council members shall assume office and the terms, powers, duties, responsibilities, and emoluments of office of the commissioners shall end.
*(Acts 1984, No. 84-397, p. 922, §3.)*
##### **§ 11-44A-4** Mayor-Council - Terms {#sec-11-44a-4 omnilex-key=us-al-statutes--title-11--11-44A-4}
The mayor and council members elected hereunder shall serve until the first Monday in October, 1988.
*(Acts 1984, No. 84-397, p. 922, §4.)*
##### **§ 11-44A-5** Conduct of Election and Referendum {#sec-11-44a-5 omnilex-key=us-al-statutes--title-11--11-44A-5}
The election and referendum provided for herein shall be conducted, the vote canvassed, and the result declared in the same manner as provided by Chapter 46, Title 11, in respect to other municipal elections conducted in any such municipality.
*(Acts 1984, No. 84-397, p. 922, §5.)*
##### **§ 11-44A-6** Reapportionment of Council Districts {#sec-11-44a-6 omnilex-key=us-al-statutes--title-11--11-44A-6}
Whenever there shall be a change in population in any of the districts heretofore established, evidenced by a federal census of population, or by virtue of a substantial change in the corporate limits, there shall be a reapportionment of the council districts in the manner hereinafter provided:
(1) The mayor shall, within six months after the publication of each federal census of population for the municipality or within six months after there shall have been any substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous and, to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well-defined boundaries;
b. Each district shall contain as nearly as is possible the same population, but not more than five per centum more or less than the average.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment by the council, as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall not apply to any primary or regular or special election held within six months after its becoming effective. No incumbent member of the council shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1984, No. 84-397, p. 922, §6.)*
##### **§ 11-44A-7** Effect of Article on Pre-existing Rights and Privileges of Municipal Employees, Etc {#sec-11-44a-7 omnilex-key=us-al-statutes--title-11--11-44A-7}
Nothing contained in this article, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or of any office, department, board, or agency existing at the time when this article shall take effect, or any provision of law in force at the time when the mayor-council form of government shall be adopted and not inconsistent with the provisions of this article, in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension and retirement rights, civil rights, or any other rights or privileges of officers or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1984, No. 84-397, p. 922, §7.)*
##### **§ 11-44A-8** Administrative Officers Continued; Reassignment of Duties and Powers Formerly Exercised by Abolished Agency, Etc {#sec-11-44a-8 omnilex-key=us-al-statutes--title-11--11-44A-8}
All persons holding administrative office at the time the mayor-council form of government is adopted shall continue in office and in the performance of their duties until provision shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. If any office, department, board, or agency of the municipality be abolished by this article or under its authority, the powers conferred and the duties imposed upon such office, department, board, or agency by the laws of the state shall be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
*(Acts 1984, No. 84-397, p. 922, §8.)*
##### **§ 11-44A-9** Civil Service Officers Continued {#sec-11-44a-9 omnilex-key=us-al-statutes--title-11--11-44A-9}
Any person holding such an office or position in the civil service of such municipality when the mayor-council form of government shall be adopted shall continue to hold such office in the civil service under the mayor-council form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service system.
*(Acts 1984, No. 84-397, p. 922, §9.)*
##### **§ 11-44A-10** Interagency Transfer of Records, Equipment, Etc {#sec-11-44a-10 omnilex-key=us-al-statutes--title-11--11-44A-10}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency by this article, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency, or part thereof, are by this article assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1984, No. 84-397, p. 922, §10.)*
##### **§ 11-44A-11** Municipal Contracts Continued; Completion of Public Works Required {#sec-11-44a-11 omnilex-key=us-al-statutes--title-11--11-44A-11}
All contracts entered into by the municipality, or for its benefit, prior to the adoption by such municipality of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the mayor-council form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1984, No. 84-397, p. 922, §11.)*
##### **§ 11-44A-12** Judicial Proceedings Unaffected by Adoption of Mayor-Council Government {#sec-11-44a-12 omnilex-key=us-al-statutes--title-11--11-44A-12}
No action or proceeding, civil or criminal, pending at the time of the adoption of the mayor-council form of government, brought by or against the municipality or any office, department, board, or agency or officer thereof, shall be affected or abated by the adoption of the mayor-council form of government or by anything therein contained in this article.
*(Acts 1984, No. 84-397, p. 922, §12.)*
##### **§ 11-44A-13** Pension and Retirement Plans, Etc., Continued {#sec-11-44a-13 omnilex-key=us-al-statutes--title-11--11-44A-13}
All laws and parts of laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to the municipality at the time when it shall elect to be governed by the provisions of this article, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1984, No. 84-397, p. 922, §13.)*
##### **§ 11-44A-14** Continuation of Laws Relating to Certain Boards, Etc {#sec-11-44a-14 omnilex-key=us-al-statutes--title-11--11-44A-14}
All laws relating to the school board, library board, hospital board, airport board, housing authority, plumbers or electricians board, planning board, zoning board, park or recreation board, municipally owned public utility, and any municipally owned service enterprise, including inter alia, electric, gas and water boards, agencies, etc., and any board, authority, agency, etc., given such independent status, as the same may apply and be in effect at the time when the municipality shall elect to be governed by the provisions of this article, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board or agency, until otherwise provided by law.
*(Acts 1984, No. 84-397, p. 922, §14.)*
##### **§ 11-44A-15** Applicability of Article {#sec-11-44a-15 omnilex-key=us-al-statutes--title-11--11-44A-15}
For all purposes the provisions of Sections 11-44A-6 through 11-44A-14 shall become applicable to the municipality at the time when the first council elected under the provisions hereof takes office and qualifies, otherwise, this article shall become effective immediately upon its passage and approval by the governor, or upon its otherwise becoming a law.
*(Acts 1984, No. 84-397, p. 922, §15.)*
##### **§ 11-44A-16** Continuation of Ordinances and Resolutions {#sec-11-44a-16 omnilex-key=us-al-statutes--title-11--11-44A-16}
All ordinances and resolutions of the municipality in effect at the time of adoption of the mayor-council form of government herein set up shall continue in effect unless and until changed or repealed by the council.
*(Acts 1984, No. 84-397, p. 922, §16.)*
#### **Article 2** Adoption of Mayor-Council Form of Government Where Commission Form Violates Federal Voting Rights Act
##### **§ 11-44A-30** Adoption of Mayor-Council Form of Government Where Commission Form Violates Federal Voting Rights Act; Division into Single-Member Districts; Residence Requirements for Candidates and Electors {#sec-11-44a-30 omnilex-key=us-al-statutes--title-11--11-44A-30}
Any Class 7 municipality operating under a commission form of government with its members elected at large and which at large system has been decreed to be in violation of the federal Voting Rights Act by a court of law may, by an ordinance duly adopted not less than three months prior to the regular municipal election, adopt a mayor-council form of government with the mayor elected at large and a five-member council elected from single-member districts. The ordinance shall divide the municipality into five single-member districts of nearly equal population and shall provide that candidates for election for a place on the council shall have resided within the district from which he or she seeks election for a period of 90 days immediately preceding the date of the election, and shall continue to reside in the district he or she represents so long as he or she remains a member of said council. Only electors residing within a district shall be entitled to vote for candidates seeking election for said district.
*(Acts 1988, No. 88-556, p. 872, §1.)*
##### **§ 11-44A-31** Boundaries of Districts {#sec-11-44a-31 omnilex-key=us-al-statutes--title-11--11-44A-31}
The ordinance establishing the districts shall describe the territory composing each district and its boundary line shall be the centerline of streets or other well-defined boundaries.
*(Acts 1988, No. 88-556, p. 872, §1.)*
##### **§ 11-44A-32** Form of Government; Powers and Duties of Municipality {#sec-11-44a-32 omnilex-key=us-al-statutes--title-11--11-44A-32}
The municipality shall thereafter and as provided herein be governed by a mayor elected at large and a five-member council elected from single-member districts, and shall have the same powers and duties as other mayor-council municipalities organized under Title 11, as amended, and any other powers and duties not inconsistent with this article which may have therefore been granted to such municipality.
*(Acts 1988, No. 88-556, p. 872, §1.)*
### **Chapter 44B** Abandonment of Commission Form of Government in Class 4 Municipalities
##### **§ 11-44B-1** Ordinance Abandoning Commission Form of Government and Adopting Mayor-Council Form {#sec-11-44b-1 omnilex-key=us-al-statutes--title-11--11-44B-1}
Within three months of January 29, 1985, the governing body of any Class 4 municipality with a commission form of government may by a majority vote of the members of that governing body adopt an ordinance abandoning the commission form of government and adopting a mayor-council form of government pursuant to the terms and conditions of this article. Any municipality desiring to abandon the commission form of government and adopt the form of government provided for herein, shall adopt an ordinance in substantially the following form:
BE IT ORDAINED BY THE COMMISSION BOARD OF THE CITY OF _____ as follows:
Section 1. That, pursuant to Act No. 85-107 of the 1985 First Special Session of the Legislature, the commission form of government, pursuant to which this municipality has operated, be and the same is hereby abandoned according to the provisions of said Act No. 85-107.
Section 2. That the form of government as described by Act No. 85-107 of the 1985 First Special Session of the Legislature, providing for a mayor-council form of government with the mayor elected at large and a seven-member council elected from single-member districts, is hereby adopted as the form of government for the city of _____, pursuant to all the terms and conditions contained in said act.
Section 3. This ordinance shall take effect as provided by law, and implemented pursuant to said Act No. 85-107.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §1.)*
##### **§ 11-44B-2** Ordinances Establishing Boundaries of Seven-Council Districts and Salaries of Mayor and Council Members; Compliance with Voting Rights Act; Election of Mayor and Council; Powers and Duties of Municipality {#sec-11-44b-2 omnilex-key=us-al-statutes--title-11--11-44B-2}
If said ordinance be adopted by the governing body of any municipality to which this chapter applies, then:
(1) Within 90 days thereafter, the commission board of such municipality shall adopt an ordinance,
a. Establishing the boundaries of the seven-council districts herein provided for, and
b. Establishing the salaries to be paid to the mayor and council members to be elected at the first election to be held hereunder;
(2) The commission board shall take such steps as are necessary to comply with the Federal Voting Rights Act of 1965, as amended;
(3) After receipt of notification of compliance with the Federal Voting Rights Act of 1965, as amended, the mayor or other chief executive officer of the municipality shall give notice that an election for mayor and all the members of the city council will be held at the next regular municipal election as required and provided for by the election laws of the state of Alabama, which shall be the same date at which the regular municipal elections for the commission board would otherwise be held, being the second Tuesday in July, 1985, and if necessary, run-off elections on the third Tuesday next thereafter as provided by law, and such elections shall be so held wherein a mayor shall be elected at large and a seven-member council shall be elected from single-member districts as provided by this chapter;
(4) The municipality shall, after said election and the qualification and assumption of office of the council and mayor as provided in this chapter, be deemed to have adopted the form of government as herein provided and thereafter be governed by a mayor elected at large and a seven-member council elected from single-member districts pursuant to this chapter, which municipality shall have the same powers and duties as herein enumerated and as other mayor-council municipalities organized under Title 11, and any other powers and duties not inconsistent with this chapter which may be now or hereafter granted to such municipality.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §2.)*
##### **§ 11-44B-3** Mayor and Council - Assumption of Office; Duties, Etc., of Commissioners Terminated {#sec-11-44b-3 omnilex-key=us-al-statutes--title-11--11-44B-3}
The newly elected mayor and council members elected as herein provided shall assume the duties of their respective offices at noon on the first Monday in October following their election, and the terms, powers, duties, responsibilities, and emoluments of office of the commissioners shall end.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §3.)*
##### **§ 11-44B-4** Mayor and Council - Terms; Election Date {#sec-11-44b-4 omnilex-key=us-al-statutes--title-11--11-44B-4}
The mayor and council members elected hereunder shall serve four-year terms with the first election being held as herein provided on the second Tuesday of July, 1985, and quadrennially thereafter on the month and the day established by the general law of the state pertaining to municipal elections for mayor-council forms of government.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §4.)*
##### **§ 11-44B-4.1** Elections - Mayor, City Council, and City of Tuscaloosa Board of Education {#sec-11-44b-4.1 omnilex-key=us-al-statutes--title-11--11-44B-4.1}
(a) This section shall only apply in a Class 4 municipality organized pursuant to this chapter.
(b) Notwithstanding any other provision of law, in any Class 4 municipality organized pursuant to this chapter, the election for the mayor, members of the city council, and members of the city board of education of the Class 4 municipality shall be held on the first Tuesday in March and every four years thereafter.
*(Act 2015-201, §§1, 2.)*
##### **§ 11-44B-5** Conduct of Elections; Qualifications of Mayor and Council; Qualifying Fee {#sec-11-44b-5 omnilex-key=us-al-statutes--title-11--11-44B-5}
The elections provided for herein, and all subsequent elections, shall be conducted, the vote canvassed, and the results declared in the same manner as provided by the general law of the state pertaining to municipal elections for mayor-council forms of government, except as otherwise herein provided by this article.
The mayor shall be elected by the whole of the electors of the city, shall be a qualified elector of the city, and shall have been a resident of the city for at least 90 days prior to his election and shall reside within the limits of the city during his term of office. Council members shall be elected by the electors of the district which they represent, shall be qualified electors of the city, shall have been residents of the district which they represent for at least 90 days prior to their election, and shall reside in said district during their term of office. Any person desiring to become a candidate for mayor or council member must, at the time of filing their statement of candidate, pay to the city clerk a qualifying fee in the amount of $200.00. If any person desiring to become a candidate for mayor or council member is financially unable to pay said filing fee, then they shall file with the city clerk a verified statement of indigency supported by three verified statements of city electors to the effect that said candidate is not financially capable of paying the aforementioned filing fee.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §5.)*
##### **§ 11-44B-6** Meetings; Quorum; Majority Vote Requirements; Procedure for Adoption of Ordinances and Resolutions; Approval or Veto of Mayor; Record of Proceedings; Power of Council as to City Employees; All Powers of City Vested in Council {#sec-11-44b-6 omnilex-key=us-al-statutes--title-11--11-44B-6}
(a) The council shall hold regular public meetings at least once a week at some regular hour to be fixed by the council. The council may hold such adjourned, called, or other meetings as may be necessary or convenient.
(b) All council meetings shall comply with the applicable law concerning open or public meetings.
(c) A majority of the elected membership of the council shall constitute a quorum for the transaction of any and every power conferred upon the council. For the purposes of determining a quorum, the mayor shall not be counted.
(d) The affirmative vote of a majority of the council members present, and the mayor in the event of a tie, as provided by this article, shall be sufficient for the passage of any resolution, bylaw, or ordinance, or the transaction of any business of any sort by the council, or the exercise of any other power conferred upon it by the terms of this article or by law, or which may hereafter be conferred upon it. Provided, however, no ordinance or resolution of a general nature or permanent operation shall be adopted except as follows:
(1) The ordinance or resolution shall be introduced only at a regularly scheduled weekly meeting of the council and shall not be available for consideration until the next regularly scheduled weekly meeting of the council.
(2) The limitation of subdivision (1) above may be waived and the ordinance or resolution considered and adopted at any meeting in which it was introduced only with the unanimous consent of the council members present, the consent shall be shown by a vote taken by yeas and nays, and the names of the members voting shall be entered upon the minutes.
(3) Whenever an ordinance or resolution is considered, it shall not be passed or otherwise become law unless on its final passage it has the affirmative vote of at least four council members, or in the event of a tie vote of three yeas and three nays of the council, such resolution or ordinance may be passed if the mayor votes yea in its favor to break the tie.
An ordinance or resolution of a general nature or permanent operation as used herein shall include an appointment, nomination, or election which is required by law to be made by the governing body of the municipality. Provided, however, all resolutions or ordinances of a general nature or permanent operation shall also be subject to the approval or veto of the mayor as set forth in this article.
(e) No resolution, bylaw, or ordinance granting any franchise, appropriating any money for any purpose, providing for any public improvements, any regulation concerning public health, or of any other general or permanent nature including an appointment, nomination, or election which is required by law to be made by the governing body of the municipality except the proclamation of quarantine, shall be enacted except at a regular meeting of the council or an adjournment thereof. Every ordinance introduced at any and every such meeting shall be in writing and read by title before any vote thereon shall be taken, and the yeas and nays thereon shall be recorded; provided, if the vote of all council members present be unanimous, it may be so stated in the journal without recording the yeas and nays.
(f) A record of the proceedings of every meeting of the council shall be kept, and every resolution or ordinance passed by the council shall be recorded, and the record of the proceedings of the meetings shall, when approved by the council, be signed by the mayor and the city clerk. The record shall be kept available for inspection by all citizens at all reasonable times.
(g) Neither the council nor any of its members shall direct or request the appointment of any person to or removal from office or position by the mayor or any employee of the city, or in any manner take part in the appointment or removal of hourly employees in the service of the city. Officers and employees of the city subject to civil service appointment shall be appointed pursuant to the applicable law, rule, and regulation, and in the event that any law, rule, or regulation should allow a selection by the city from among qualified candidates, the selection shall be made by the council.
Except for the purpose of inquiry, neither the council nor any of its members shall either publicly or privately supervise, order, or give directions to any employee of the city.
The foregoing two paragraphs shall not apply to the election or appointment of any person not an employee of the city to any board or agency funded or supported in whole or in part by the city.
(h) The municipal government of any city proceeding under this article shall be known as the mayor-council form of government. Except as otherwise provided herein and subject to the limitations imposed by the Constitution of Alabama and its laws, all powers of the city shall be vested in the council elected as herein provided and hereinafter referred to as “the council,” which shall enact ordinances, adopt budgets, and determine policy. All powers of the city shall be exercised in the manner prescribed by this article, or if the manner not be prescribed, then in such a manner as may be prescribed by law or ordinance.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §6; Acts 1996, No. 96-455, p. 566, §1.)*
##### **§ 11-44B-7** Powers and Duties of Mayor {#sec-11-44b-7 omnilex-key=us-al-statutes--title-11--11-44B-7}
The mayor shall preside at all meetings of said council and sit with said council. Provided, however, the mayor shall not, for any purpose, be a member of the council, shall vote only in the case of a tie, and shall have the right of veto as provided herein.
(1) The mayor shall be the chief executive officer, and shall have general supervision and control of all other officers and the affairs of the city except as otherwise provided by this article and general statutes of the state.
(2) The mayor shall devote full time to the duties of his office. The mayor shall maintain an office at the city hall and be present thereat during reasonable hours when not otherwise absent therefrom on other duties of the city.
(3) The mayor shall, each quarter, prepare a detailed statement of all receipts and expenses of the city, and annually, at the end of each fiscal year, the mayor shall cause the books and accounts of the city to be audited by a reputable, disinterested, and certified accountant, selected by the council, and the audit report shall be certified to by the finance director, attested by the mayor, and published in pamphlet form. A true summary of the annual audit report shall be published one time in a newspaper regularly published and of general circulation in the city. The audit report shall be submitted by the mayor to the council at its first meeting after the completion of the report, and the same shall be spread upon the minutes of the council. The mayor shall prepare and submit the budget of the city annually to the council.
(4) All resolutions or ordinances which are intended to be of general nature or permanent operation passed by the council, shall be transmitted by the clerk, within forty-eight (48) hours after their passage, to the mayor for his or her consideration, who, if he or she shall approve thereof, shall sign and return the same to the clerk, who shall publish them, and such ordinances or resolutions shall thereupon have the force of law; provided, that the council may provide that they shall be effective from approval.
Any such ordinance or resolution may be recalled from the mayor at any time before it has become a law or has been acted on by him or her by resolution adopted by a majority of the members elected to the council in regular or special session.
If the mayor shall disapprove of any such ordinance or resolution transmitted to him or her, he or she shall, within seven (7) days of the time of its passage by the council, return the same to the clerk with his or her objections in writing, and the clerk shall make report thereof to the next regular meeting of the city council; and, if five (5) members of the said council shall adhere to said ordinance or resolution notwithstanding said objections, said vote being taken by “yeas” and “nays” and spread upon the minutes, then, and not otherwise, said ordinance or resolution shall, after publication thereof, have the force of law, unless by its terms it was to take effect on its approval, in which event it shall take effect upon its passage over such veto. The failure of the mayor to return to the clerk, an ordinance or resolution with his veto in writing stating his or her objections, within seven (7) days after its passage by the council, shall operate and have the same effect as an approval of the same, and the clerk shall publish the same as required by law for the publication of laws and ordinances of said city. If no publication is required, the ordinance or resolution shall become effective upon the expiration of said seven (7) days.
The veto of the mayor shall pertain to the entire ordinance or resolution as passed by the city council and no ordinance or resolution may be vetoed by the mayor in part as to specific items or any portion thereof.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §7; Acts 1996, No. 96-455, p. 566, §1.)*
##### **§ 11-44B-8** Temporary and Permanent Vacancies in Office of Mayor; Vacancy on City Council {#sec-11-44b-8 omnilex-key=us-al-statutes--title-11--11-44B-8}
(a) Temporary Vacancy in the Office of Mayor. The council shall elect from its members, a president pro tempore of the council. In the case of the temporary absence of the mayor or his inability to serve temporarily on account of sickness or any other good reason, the president pro tempore of the council shall act as mayor pro tempore with the power and authority of the mayor during such time. Provided; however, the president pro tempore while acting as mayor pro tempore shall not exercise the mayor’s right to vote nor the right of approval or veto of ordinances or resolutions, nor receive the rate of compensation or allowance of the mayor. In the event of a failure or refusal of the president pro tempore of the council to act, the council may appoint one of its members to act as mayor pro tempore with like effect, which appointment shall be entered in the minutes of the council. While serving as mayor pro tempore, the president pro tempore of the council shall have the right to vote on all questions the same as any other member of the council.
(b) Permanent Vacancy in the Office of Mayor. Whenever any vacancy in the office of mayor occurs by reason of death, resignation, removal, or any other cause, the vacancy shall be filled as follows:
(1) ACTING MAYOR. The president pro tempore of the council shall succeed to and assume the duties of the office of mayor, effective as soon as practical after the vacancy occurs and shall serve as acting mayor until a new mayor assumes the duties or is elected as provided for herein.
While the president pro tempore of the council is serving as acting mayor, he or she shall receive the same rate of pay and allowance provided for the mayor, whose vacated office he or she fills, in lieu of council president pro tempore pay and shall have the right to vote on all questions, the same as any other council member. Provided, however, the acting mayor shall not exercise the mayor’s right to vote nor the right of approval or veto of ordinances or resolutions and the same shall become effective upon final enactment by the council as otherwise provided by law. In the event of a failure or refusal of the president pro tempore of the council to serve as acting mayor, the council may appoint one of its members to be acting mayor with like effect, which appointment shall be entered in the minutes of the council.
(2) TERM OF LESS THAN ONE (1) YEAR REMAINING. If the vacated term in the office of mayor has less than one year remaining, then the president pro tempore of the council shall vacate his or her position as a member of the city council and qualify for the office as soon as practical after the vacancy occurs and assume the duties, responsibilities, and powers of the office immediately upon qualification and shall hold the office for the unexpired term of his or her predecessor.
In the event of a failure or refusal of the president pro tempore of the council to serve as mayor, then the council may appoint one of its members to serve as mayor with like effect, which appointment shall be entered in the minutes of the council.
(3) VACATED TERM OF ONE (1) YEAR OR MORE. If the vacated term in the office of mayor has one (1) year or more remaining, the council shall call for a special election within thirty (30) days of the vacancy in the office of mayor. The election shall be held not less than sixty (60) days, nor more than ninety (90) days from the date the council called for the special election. Special elections called pursuant to this section shall be conducted as provided by the general laws of this state regarding municipal elections.
The person elected to fill the vacancy in the office of mayor shall qualify for office as soon as practical, shall assume the duties, responsibilities, and powers of the office immediately and shall hold office for the unexpired term of his or her predecessor and until his or her successor is elected and qualified.
(c) VACANCY ON CITY COUNCIL. Whenever any vacancy on the city council shall occur by reason of death, resignation, removal, or any other cause, the vacancy shall be filled as follows:
(1) TERM OF LESS THAN ONE (1) YEAR REMAINING. If the vacated term of a council member has less than one (1) year remaining, then the remaining members of the council may appoint a successor by ordinance duly adopted at the next or any subsequent regular meeting of the city council or the council may, in its discretion, allow the position to remain vacant until the next regular municipal election.
(2) VACATED TERM OF ONE (1) YEAR OR MORE. If the vacated term of the council member has one (1) year or more remaining, the council shall call for a special election to be held in the district of the vacated council position, within thirty (30) days of the occurrence of the vacancy. The election shall be held not less than sixty (60) days, nor more than ninety (90) days from the date the council called the special election. Special elections called pursuant to this subsection shall be conducted as provided by the general election laws of the state regarding municipal elections.
(3) The person selected or elected to fill a vacancy on the city council shall possess all the qualifications of office, including residency in the district he or she represents, and serve the remainder of the unexpired term until a successor has been qualified and elected.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §8; Acts 1996, No. 96-389, p. 476, §1.)*
##### **§ 11-44B-9** Franchise, Lease, or Right to Use Streets, Public Highways, Thoroughfares, or Public Ways {#sec-11-44b-9 omnilex-key=us-al-statutes--title-11--11-44B-9}
No resolution or ordinance, granting to any person, firm, or corporation any franchise, lease or right to use the streets, public highways, thoroughfares, or public ways of any city organized under the provisions of this article, either in, under, along, through, or over same shall take effect and be enforced until 30 days after the final enactment of same by the council and publication of said resolution or ordinance in full once a week for three consecutive weeks, in some daily newspaper published in said city, which publication shall be made at the expense of the person, firm, or corporation applying for said grant. No grant of any franchise or lease or right of user, or any other right, in, under, upon, along, through, or over the streets, public highways, thoroughfares, or public ways of any such city shall be made or given nor shall any such rights of any kind whatever be conferred upon any person, firm, or corporation, except by resolution or ordinance duly passed by the council at some regular or adjourned regular meeting and published as above provided for in this section; nor shall any extension or enlargement of any such rights or powers previously granted be made or given except in the manner and subject to all the conditions herein provided for as to the original grant of same. It is expressly provided, however, that the provisions of this section shall not apply to the grant of sidetrack or switching privileges to any railroad for the purpose of reaching and affording railway connections, and switch privileges to the owners or users of any industrial plant, store or warehouse.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §9.)*
##### **§ 11-44B-10** Initial Territorial Limits; Reapportionment of Council Districts; Recommended Plan for Reapportionment; Redistricting Ordinance {#sec-11-44b-10 omnilex-key=us-al-statutes--title-11--11-44B-10}
(a) The initial territorial limits of any municipality which adopts the mayor-council form of government as provided by this chapter shall be the same as under its former organization.
(b) If following a federal census of population or an alteration of the corporate limits, any council district shall contain a population of 10 percent more or less than the total population of the city divided by seven, then there shall be a reapportionment of the council districts in the manner hereinafter provided.
(1) The mayor shall, within six months after the publication of such federal census of population for the municipality or within six months after there shall have been such substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous and to the extent reasonably possible, compact territory, and its boundary lines shall be the centerlines of streets or other well-defined boundaries;
b. Each district shall contain as nearly as possible the same population, but not more than five percent more or less than the average.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall not apply to any election held within six months after it becomes effective. No incumbent member of the council shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §10.)*
##### **§ 11-44B-11** City Clerk, Finance Director, Revenue Director, City Attorney, Assistant City Attorneys, and City Department Heads Continued in Office; Powers and Duties; Claims Against City; Financial Records; Warrants; Deposit of Public Money; Payment of Moneys Due Municipality; Office Space, Supplies, and Other Support {#sec-11-44b-11 omnilex-key=us-al-statutes--title-11--11-44B-11}
(a) If the city clerk of any city which adopts the mayor-council form of government as herein provided holds office subject to any civil service or merit system, such clerk shall continue to be the city clerk under the mayor-council form of government of such city and his successors shall be selected and hold office subject to the provisions of such civil service or merit system. The city clerk shall attend the meetings of the council and keep a record of its proceedings. He shall have the custody of the rules, ordinances and resolutions of the council and shall keep a record of them when adopted by the council. He shall also have the custody of the city seal. During the absence of the clerk, assistant city clerks shall perform his duties.
(b) The finance director shall submit all claims, requisitions, and demands against the city to the city clerk who shall then submit the same to the council at its next meeting for its approval, unless already provided for by ordinance or resolution, and upon their being approved by the council and the passage of ordinances or resolutions carrying them into effect when necessary, the finance director shall issue warrant or warrants on the city for the amount of such claims, requisitions or demands. Before issuing any warrant, the finance director shall audit the same, certify to its correctness and keep a record thereof which record shall also show to what department or departments it is chargeable.
The finance director shall keep a convenient set of books or records in which there shall be kept a separate accounting for each revenue item of the city. He shall keep a separate account with each department for which a separate appropriation shall have been made, crediting the amount of the appropriation and charging warrants drawn against the same. He shall keep such other accounts as may be necessary to show the financial condition of the municipality and of each department thereof at all times. He shall not allow the amount appropriated for any item of expense to be drawn on for any other purpose. He shall not allow any warrant to be drawn unless sufficient funds actually be in the treasury to the credit of the fund upon which such warrant is drawn unless specifically authorized by ordinance or resolution.
The finance director shall be the custodian of the funds of the municipality, keeping an accurate record of the funds of the several departments, and shall keep books or records showing accurately the financial condition of the city. He shall pay out money only upon warrants drawn by the officers authorized to draw warrants upon the city, and when paid shall keep safely the warrants so drawn. Such warrants, approved by the mayor or such other person as the council may designate, except as otherwise provided by law, shall be drawn by the finance director, the warrant showing to what department the same is to be charged. Such warrants shall be drawn by the finance director on the city, the warrant showing to what department the same is to be charged, but the council may authorize the finance director to draw such warrants on the city without the approval of the mayor. No warrants shall be drawn except by authority of law, ordinance, or resolution. No expenditure shall be allowed unless the same shall have been authorized by ordinance or resolution or by the mayor and is carefully itemized and shall have been examined, audited, and approved. The finance director shall keep a record of all warrants presented for payment which are unpaid for want of funds and shall pay them when funds are available in the order of their presentation. He shall make a report quarterly, or more often if required by the council, of the financial condition of the account of each department authorized to draw on the city and shall make a quarterly statement, under oath, of the financial condition of the city.
If no interest is stipulated to be paid on warrants drawn upon the finance director and not paid for want of funds, then the legal rate shall be allowed from the time of presentation, which time shall be endorsed by the finance director on the warrant with his signature.
The council may direct, by ordinance or resolution, the place where the finance director or any other department shall deposit public money and may require interest to be paid thereon and security to be given by the depository, but as to deposits made under the authority of an ordinance or resolution of the council, neither the finance director nor his bondsman, if the finance director has exercised due care, shall be further liable for any loss occasioned thereby.
The council shall provide by ordinance or resolution that all moneys due the municipality or any department thereof shall be paid to the respective departments and said department shall promptly deposit the same as prescribed by the council.
(c) The revenue director shall issue all licenses unless otherwise provided by ordinance, receiving the money therefore, and pay the same over instanter to the finance director. Any part of the duties of the finance director, revenue director or city clerk may devolve upon the auditor by ordinance.
(d) The city clerk, finance director and revenue director in addition to these numerated duties, shall perform any and all duties that may be required of them by ordinance or resolution. They shall give bond, with sureties, to be approved by the mayor, in such sum as the council may prescribe.
(e) If the finance director and/or revenue director of any city which adopts the mayor-council form of government as herein provided by this chapter, holds office subject to any civil service or merit system, such finance director and/or revenue director shall continue to be the finance director and the revenue director under the mayor-council form of government of such city, and his successors shall be selected and hold office subject to the provisions of such civil service or merit system.
(f) If the city attorney or any assistant city attorneys of any city which adopts the mayor-council form of government pursuant to this chapter holds office subject to any civil service or merit system, such city attorney and any assistant city attorneys shall continue to be the city attorney and assistant city attorneys respectively under the mayor-council form of government of such city, and the successors of the city attorney shall be selected and hold office subject to the provisions of such civil service system. Said city attorney shall be the chief legal officer of the city and be responsible for the proper administration of the legal affairs of the city. The city attorney or his designated representatives shall have the supervision and the responsibility for the prosecution of all charges of violations of municipal ordinances and regulations in the municipal court and the prosecution and defense of all actions and appeals involving the city in all courts, before all boards, commissions, and administrative agencies; and shall furnish such legal advice, counsel, and assistance to the city, heads of departments, and all other city officers in relation to their duties and the business of the city. The city attorney shall have control and direction over the legal services performed by assistant city attorneys and special counsel of the city who, at the recommendation of the city attorney, may be employed from time to time to assist the city attorney in the provision of legal services to the city. The city attorney and any assistant city attorneys shall devote their entire time to the duties of their office and shall not engage in the private practice of law. The city attorney or his designated representative shall attend all council meetings unless excused therefrom by the council or the mayor.
(g) If the head of any city department which adopts the mayor-council form of government holds office subject to any civil service or merit system, such head of any city department shall continue to be the head of that department under the mayor-council form of government pursuant to this article of such city and his successor shall be selected and hold office subject to the provisions of such civil service or merit system.
(h) The city council shall furnish all necessary office space, supplies and and other support to the administrative officers specifically enumerated in this section in connection with said officers’ duties.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §11.)*
##### **§ 11-44B-12** Existing Rights and Privileges of Officers and Employees; Existing Laws Not Inconsistent with Personnel, Etc., Provisions of Article {#sec-11-44b-12 omnilex-key=us-al-statutes--title-11--11-44B-12}
Nothing contained in this article, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or of any office, department, board, or agency existing at the time when this article shall take effect, or any provision of law enforced at the time when the mayor-council form of government shall be adopted and not inconsistent with the provisions of this article in relation to the personnel, appointment, ranks, grades, tenure of office, promotions, removal, pension and retirement rights, civil rights, civil service, of any or other rights or privileges of officers or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §12.)*
##### **§ 11-44B-13** Persons Holding Administrative Offices Continued in Office until Other Provisions Made; Powers and Duties of Abolished Offices, Etc.; Certain Offices, Etc., Deemed Continued; References to Existing Offices, Etc., in Laws, Contracts, Etc {#sec-11-44b-13 omnilex-key=us-al-statutes--title-11--11-44B-13}
All persons holding administrative office at the time the mayor-council form of government is adopted shall continue in office and in the performance of their duties until provisions shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office subject to any existing civil service law. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency be abolished by this article, or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
Any office, department, board, or agency provided for in this article with a name or with powers and duties the same or substantially the same as those of the office, department, board, or agency heretofore existing and the persons holding those offices, shall be deemed a continuation of such office, department, board, or agency and, until otherwise provided, shall exercise his powers and duties in continuation of their exercise by the office, department, board, or agency by which the same were heretofore exercised, and until otherwise provided, shall have power to continue any business proceeding or other matter within the scope of his regular powers and duties commenced by any office, department, board, or agency by which such powers and duties were heretofore exercised. Any provisions in any law, rule, regulation, contract, or other document relating to such an existing office, department, board, or agency shall, so far as not inconsistent with the provisions of this article, apply to such office, department, board, or agency provided for by this article.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §13.)*
##### **§ 11-44B-14** Persons Holding Civil Service Positions Continued in Office; Existing Civil Service System Continued {#sec-11-44b-14 omnilex-key=us-al-statutes--title-11--11-44B-14}
Any person holding such an office or position in the civil service of such municipality when the mayor-council form of government shall be adopted shall continue to hold such office in the civil service under the mayor-council form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service system. Where there is an existing civil service system, then that system shall remain in full force and effect and this articleshall not supersede, modify, or repeal said civil service system.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §14.)*
##### **§ 11-44B-15** Transfer of Records, Property, and Equipment of Office, Etc., Where Powers and Duties Reassigned {#sec-11-44b-15 omnilex-key=us-al-statutes--title-11--11-44B-15}
All records, property, and equipment whatsoever of any office, department, board, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, board, or agency by this article, shall be transferred and delivered to the office, department, board, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, board, or agency or part thereof, are by this article assigned to another office, department, board, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, board, or agency to which such powers and duties are so assigned.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §15.)*
##### **§ 11-44B-16** Existing Contracts Continued in Force; Public Improvements for Which Legislative Steps Taken {#sec-11-44b-16 omnilex-key=us-al-statutes--title-11--11-44B-16}
All contracts entered into by the municipality, or for its benefit, prior to the adoption by such municipality of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the mayor-council form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §16.)*
##### **§ 11-44B-17** Pending Legal Actions and Proceedings {#sec-11-44b-17 omnilex-key=us-al-statutes--title-11--11-44B-17}
No action or proceedings, civil or criminal, pending at the time of the adoption of the mayor-council form of government, brought by or against the municipality or any office, department, board, agency, or officer or employee thereof shall be affected or abated by the adoption of the mayor-council form of government or by anything contained in this article.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §17.)*
##### **§ 11-44B-18** Pension, Retirement, and Relief Fund Laws Continued in Force {#sec-11-44b-18 omnilex-key=us-al-statutes--title-11--11-44B-18}
All laws and parts of laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to the municipality at the time when it shall elect to be governed by the provisions of this article, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §18.)*
##### **§ 11-44B-19** Laws Relating to Municipal Boards, Agencies, and Service Enterprises Continued in Force {#sec-11-44b-19 omnilex-key=us-al-statutes--title-11--11-44B-19}
All laws relating to the school board, library board, hospital board, industrial development boards or authorities, housing authorities, medical clinic boards, plumbers or electricians boards or other technical boards, planning board, zoning board, park or recreation board, municipally owned public utility, other boards and agencies and any municipally owned service enterprise, including inter-alia, electric, gas and water boards, agencies, etc., and any board, authority, agency, etc., given such independent status as the same may apply and be in effect at the time when the municipality shall elect to be governed by the provisions of this article, shall continue in full force and effect and without interruption or change as to the establishment of conduct of any such authority, board, or agency until otherwise provided by law.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §19.)*
##### **§ 11-44B-20** Powers of City; Vesting of Existing Rights, Powers, and Properties {#sec-11-44b-20 omnilex-key=us-al-statutes--title-11--11-44B-20}
The city shall have all powers granted to municipal corporations and to cities by the Constitution and laws of this state, together with all the implied powers necessary to carry and execute all the powers granted. The city may acquire property within or without its corporate limits for any purpose, in fee simple or any lesser interest or estate, by purchase, gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage and control such property as the interest may require; and except as prohibited by the Constitution of this state, or restricted by this article, the city shall and may exercise all municipal powers, functions, rights, privileges and immunities of every name and nature whatsoever. The enumeration of particular powers by this article shall not be deemed to be exclusive, and in addition to the powers enumerated therein or implied thereby, or appropriate to the exercise of such powers, it is intended that the city shall have and may exercise all powers which, under the Constitution of this state, it would be competent for this article to specifically enumerate.
All rights, powers and properties of every description which were vested in any city which adopts the mayor-council form of government as herein provided by this article, shall vest in such city under the organization herein provided for, unless in conflict with the provisions of this article.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §20.)*
##### **§ 11-44B-21** Ordinances and Resolutions Continued in Effect; References to Certain Officers or Governing Body in Existing Ordinances, Etc., Deemed References to Mayor or Council {#sec-11-44b-21 omnilex-key=us-al-statutes--title-11--11-44B-21}
All ordinances and resolutions of the municipality in effect at the time of the adoption of the mayor-council form of government herein established shall continue in effect unless and until changed or repealed by the council.
Whenever, in any ordinance, resolution, or law in effect at the time of the adoption of the mayor-council form of government herein established, reference is made to the mayor, chairman of the commission board, public safety commissioner, associate commissioner No. 1, finance and water commissioner or associate commissioner No. 2, the same shall be construed to refer to the mayor of the mayor-council form of government herein established. Whenever in any ordinance, resolution or law in effect at the time of the adoption of the mayor-council form of government herein established, reference is made to the commission board of the city, city commission, the governing body, or like term, the same shall be construed to refer to the city council.
*(Acts 1985, 1st Ex. Sess., No. 85-107, p. 141, §21.)*
##### **§ 11-44B-22** Laws Relating to or Affecting City Continued in Effect; Inconsistent or Conflicting Laws Relating to Exercise of Powers, Functions, and Duties of Commission or Other Form of Government {#sec-11-44b-22 omnilex-key=us-al-statutes--title-11--11-44B-22}
All laws and parts of laws, general, local or special, relating to or affecting the city, its powers, functions, duties and property, in force when this article shall take effect, are hereby continued in effect; but all such laws relating to the exercise of the powers, functions, and duties of the commission or some other form of government, shall be superseded to the extent that the same are inconsistent with the provisions of this article, and all laws or parts of laws which conflict with this article are hereby repealed.
*(Acts 1985, No. 85-107, p. 141, §23.)*
##### **§ 11-44B-23** Authority to Collect Surcharge on New Water And/Or Sewer Customers {#sec-11-44b-23 omnilex-key=us-al-statutes--title-11--11-44B-23}
Any law to the contrary notwithstanding and in addition to any other lawful charges, fees, or rates which may be imposed and collected under various state laws and municipal ordinances for water and/or sewer service, any Class IV incorporated municipality in this state organized pursuant to Section 11-44B-1, et seq., that maintains and operates a water supply system and a sanitary sewer system shall have the power and authority to establish and collect in addition to all other fees and charges, a surcharge upon each new water and/or sewer customer of the municipality from April 21, 1994, not located within the corporate limits of the municipality. Provided, however, said surcharge shall not exceed 25 percent of any such water and/or sewer customer’s monthly bill for such services. Provided further, however, no such surcharge may be imposed or collected for water sales to any water works system operated by a corporation or association organized in accordance with Sections 10-4-190 to 10-4-194, inclusive, Sections 11-88-1 to 11-88-21, inclusive, Sections 11-88-40 to 11-88-111, inclusive, or Sections 11-89-1 to 11-89-19, inclusive, nor for water and/or sewer sales to industries located within industrial parks designated by the city council of said municipality.
*(Acts 1994, No. 94-537, p. 988, §1.)*
##### **§ 11-44B-24** Municipalities’ Authority to Annex Certain Unincorporated Territory {#sec-11-44b-24 omnilex-key=us-al-statutes--title-11--11-44B-24}
Any Class IV incorporated municipality in this state organized in accordance with Section 11-44B-1, et seq., shall have the following power and authority:
(a) To annex all or any portion of any unincorporated territory or any unincorporated territories which are enclosed within the corporate limits of the municipality and have been so enclosed for a period of one (1) year or more on April 21, 1994. The municipality shall adopt an ordinance finding and declaring that the unincorporated territory or unincorporated territories set forth and described therein is enclosed within the existing corporate limits of the municipality and has been so enclosed for a period of one (1) year or more on April 21, 1994, and that the annexation of the unincorporated territory or unincorporated territories is in the best interest of the public good and welfare of the municipality. Annexation of the unincorporated territory or unincorporated territories described in the ordinance shall be effective following the adoption and the publication thereof as required by law, and the filing of a copy of the ordinance, together with a map of the territory or territories annexed in the office of the judge of probate of the county or counties where the annexed territory is located. Any annexation made pursuant to this subsection must be made within one year of April 21, 1994.
(b) To annex all or any portion of any unincorporated territory or any unincorporated territories which become enclosed within the corporate limits of the municipality and have been so enclosed for a period of one (1) year or more. The municipality shall adopt an ordinance finding and declaring that the unincorporated territory or unincorporated territories set forth and described therein is enclosed within the corporate limits of the municipality and has been so enclosed for a period of one (1) year or more on the date of the adoption of said ordinance and that the annexation of the unincorporated territory or unincorporated territories is in the best interest of the public good and welfare of the municipality. Annexation of the unincorporated territory or unincorporated territories described in the ordinance shall be effective following the adoption and the publication thereof as required by law, and the filing of a copy of the ordinance, together with a map of the territory or territories annexed in the office of the judge of probate of the county or counties where the annexed territory is located. Provided, however, no unincorporated territory or unincorporated territories larger than fifteen (15) acres in size may be annexed pursuant to the provisions of this subsection.
*(Acts 1994, No. 94-561, p. 1032, §1.)*
##### **§ 11-44B-25** Procedures to Reduce or Delete Areas from Police Jurisdiction {#sec-11-44b-25 omnilex-key=us-al-statutes--title-11--11-44B-25}
Notwithstanding any law to the contrary, any Class 4 municipality that is organized pursuant to this article may from time to time reduce or delete various portions and areas from the territorial limits of its respective police jurisdiction or its planning jurisdiction or both as established by law, including, but not limited to, Sections 11-40-10 and 11-52-30, Act 76-594 and as amended by Act 94-539, the reduction and deletion shall be pursuant to the following procedure:
(1) INITIATION. The governing body of the municipality shall adopt a resolution calling for public hearings to consider the adoption of an ordinance or ordinances for the purpose of deleting a portion or portions of territory from its respective police jurisdiction or planning jurisdiction, or both, as the case may be. The resolution shall state the time, date, and place of all public hearings in regard to the ordinance and a reasonably accurate description of the territory proposed to be deleted from the police jurisdiction or the planning jurisdiction, or both, of the municipality, together with a plat or map of the territory attached thereto showing its relationship to the corporate limits of the municipality.
(2) PUBLIC NOTICE. The resolution including the map or plat shall be published at least once a week for four (4) consecutive weeks in a newspaper with a minimum circulation of 20,000 in the county or counties. Provided, however, if there are no newspapers with the stated minimum circulation in the county or counties then the publication may be made in any newspaper published or circulated in the county or counties. The notice shall state that important issues will be discussed at the public hearing, including, but not limited to, fire protection and law enforcement activities within the area depicted on the map or plat proposed to be deleted.
The resolution including the map or plat shall also be posted at fifteen (15) different places in the county or counties, at least ten (10) of which shall be in the territory proposed to be deleted at least twenty (20) days prior to the first public hearing thereon.
At least twenty (20) days prior to the first public hearing a copy of the resolution together with the map or plat shall be filed in the office of the probate judge in the county or counties wherein such territory to be deleted is located and the same shall be open to public inspection.
At least twenty (20) days prior to the first public hearing, copies of the resolution together with the map or plat shall be mailed to the persons, firms, associations, or corporations last assessing property, within the territory proposed to be deleted, for state taxes. The mailing of the resolution to the address on file in the tax assessors’ office with postage prepaid thereon by regular mail shall constitute notice as required herein. Provided, however, substantial compliance with the foregoing shall be sufficient and the failure of any person, firm, corporation, or association to be mailed or actually receive the notice shall not invalidate the process of deletion as provided herein.
(3) HEARINGS; ORDINANCE ADOPTION; LIMITATIONS. A minimum of two public hearings shall be conducted and more may be held in the discretion of the city council. At the public hearings, parties in interest and citizens shall have an opportunity to be heard before the city council or a committee of its designated representatives. At each public hearing, city representatives will advise those in attendance of the affect the deletion of the territory would have upon fire and police services within the area. After the public hearings, at any regular council meeting thereafter, the city council may adopt an ordinance electing to delete the territory from its respective police jurisdiction or planning jurisdiction, or both, and stating that municipal services, excluding certain utility services, shall be terminated and no longer available within such territory. The ordinance shall not be effective for a period of ninety (90) days from the date of the adoption thereof and until approved by the county commission pursuant to this section.
No territory within the municipality’s respective police jurisdiction or planning jurisdiction may be included within the territory to be deleted therefrom, pursuant to this section, if the territory has been designated as an “urbanized area” of the municipality according to the last preceding federal decennial census.
(4) COUNTY COMMISSION APPROVAL. Subsequent to the public hearings and after the enactment by the municipality of an ordinance deleting a portion or portions of territory from the municipality’s respective police jurisdiction or planning jurisdiction, or both, as provided for in this section, a copy of the ordinance together with the map or plat depicting the territory proposed to be so deleted, shall be mailed to each member of the county commission or commissions and delivered to the clerk of the county commission or commissions in which the territory proposed to be deleted is located, together with a request from the municipality for the county commission’s approval of the proposed deletion.
The county commission may by the passage of a resolution either approve or disapprove the proposed deletion of territory at a regular meeting of the commission at any time within thirty (30) days from the date of the receipt by the county clerk of the request. If the county commission subsequently enacts a resolution disapproving the request of the municipality, the municipality may not delete the territory from its respective police jurisdiction or planning jurisdiction, or both, as the case may be. The disapproval shall not prevent the municipality from making subsequent requests to the county commission pursuant to this section.
In the event the county commission fails to act upon the request of the municipality by resolution duly adopted within thirty (30) days from the date of the receipt by the county clerk of the request, the failure to act shall have the same effect as a disapproval by the county commission.
The municipality, upon resolution duly adopted by the city council, without further notice, advertisements, or public hearings, may request the county commission to reconsider its disapproval and state its reasons therefor. The resolution shall be certified by the city clerk, filed with the clerk of the county commission, and copies thereof mailed to all members of the county commission.
The county commission shall act upon the request for reconsideration by the municipality by the passage of a resolution approving or disapproving the proposed deletion by the municipality at a regular meeting of the county commission at any time within thirty (30) days from the date of the receipt by the county clerk of the resolution of the city council. If the county commission, upon reconsideration, disapproves the proposed deletion, then it shall set forth the reasons for the disapproval in its resolution. In the event the county commission fails to act, in regard to the request to reconsider either by approval or disapproval in regard to the proposed deletion within thirty (30) days from the date of receipt by the county clerk of the city’s resolution, the failure to act shall have the same effect as an approval by the county commission of the deletion of territory as set forth in the ordinance adopted by the city council.
Provided, however, notwithstanding anything herein to the contrary, at any time subsequent to the submission of the request from the municipality for the county commission’s approval of the proposed deletion, but prior to the time the county commission enacts a resolution, either approving or disapproving the proposed deletion of territory, the municipality may modify and/or alter the request by reducing the area proposed to be deleted from its respective police jurisdiction or planning jurisdiction or both, as the case may be, by ordinance duly adopted amending the original ordinance pertaining thereto. Under such circumstances, there shall be no requirement that such amendment be accompanied or preceded by any of the public notices, advertisements, and/or public hearings otherwise associated with the original ordinance.
(5) POLICE JURISDICTION; TERMINATION OF CERTAIN TAXES; TERMINATION OF SERVICES, ETC.
a. Any law to the contrary notwithstanding, in the event the ordinance relates to the elimination or reduction of territory from the police jurisdiction of the municipality, the final adoption and approval of such ordinance shall also terminate the levy and collection by the municipality of license taxes, sales taxes, and use taxes levied and collected by the municipality pursuant to Section 11-51-91 and Section 11-51-206 within the territory. Simultaneously with the effective date and approval of the ordinance and notwithstanding any law to the contrary, municipal services, except as otherwise provided herein, and any duty or obligation to provide municipal services shall be terminated in the territory. The municipal services that are terminated shall include, but not be limited to, police, fire, building inspection and related code services, and any other services financed in whole or in part by such license taxes, sales taxes, or use taxes, imposed and collected by the municipality in the territory, or other services provided by the municipality, notwithstanding any law to the contrary, including, but not limited to, Act 76-594 and as amended by Act 94-539. Provided, however, the adoption and approval of any ordinance pursuant to this section shall not operate to terminate or otherwise limit the municipality’s ability or authority to provide water, sewer, or solid waste services within the territory as authorized by law, nor limit in any way the municipality’s participation in countywide or intergovernmental joint agencies or organizations as otherwise authorized by law.
b. All license taxes, sales taxes, and use taxes levied and collected by the municipality pursuant to Section 11-51-91 and Section 11-51-206 from within territory eliminated from the municipality’s respective police jurisdiction shall be prorated, if necessary, to coincide with the effective date of the ordinance. If excess taxes have been paid, the excess amount shall be refunded no later than sixty (60) days following the effective date of the ordinance deleting the territory.
c. Any municipality that, pursuant to this section, deletes a portion of territory from its police jurisdiction and thereby terminates the levy and collection of the license taxes, sales taxes, and use taxes within the territory and, at the same time, terminates services within the territory, shall be immune from any liability or damages whatsoever arising out of or in any way associated with such deletion or reduction of territory and termination of services. No municipality shall be required or compelled through injunctive, declaratory, or any other form of equitable or mandatory relief by any court of competent jurisdiction of this state to continue to provide services within territory deleted from the municipalities’ police or planning jurisdiction, or both, pursuant to this section.
Nothing contained in Act 76-594, Act 94-539 of the Legislature of Alabama, nor Sections 11-51-91 or 11-51-206, or any other law shall be construed to obligate or compel any municipality which has elected to reduce its police jurisdiction pursuant to the provisions hereof through the deletion of certain territory therefrom, to continue to provide any such services within the territory deleted from its respective police jurisdiction, regardless of the period of time that any or all of the services may have been provided or made available.
d. Nothing in this section shall be construed to prohibit or limit in any manner any municipality that has terminated taxation and services in the territory in accordance with this section from participating in countywide or intergovernmental joint agencies or organizations as otherwise authorized by law nor from entering into or continuing to honor agreements, for a fee or other consideration, with the applicable public entity or authority for the following activities or services within the territory:
1. Emergency Medical Assistance and/or Rescue.
2. Fire Response Mutual Aid Agreements.
3. Participation in Joint Law Enforcement Activities.
4. Law Enforcement Mutual Aide Agreements.
5. Emergency Management.
(6) POLICE JURISDICTION; PRESERVATION OF OTHER REVENUE SOURCES. The termination by the municipality of the levy and collection of license taxes and sales taxes and use taxes pursuant to Section 11-51-91 and Section 11-51-206, in the territory deleted from its police jurisdiction pursuant to this section shall not alter or affect the right and privilege of the municipality to continue to receive any countywide or statewide tax revenue such as sales taxes and use taxes, gas taxes, or other tax revenues and to fully participate in the receipt of all or any portion of the same from the territory derived by virtue of other legislative enactments or amendments thereto, imposing, levying, and collecting various taxes, assessments, or fees, countywide or statewide, nor shall the same in any manner affect or alter the validity of such legislative enactments or amendments thereto.
(7) PLANNING JURISDICTION. Any law to the contrary notwithstanding, in the event the ordinance relates to deletion of territory from the planning jurisdiction of the municipality, then after the effective date and approval of the ordinance, the territorial jurisdiction of the planning commission of the municipality shall not include any property located in the territory.
(8) RESERVATION OF RIGHTS TO PROVIDE SERVICES. Nothing herein contained shall in any manner limit or restrict a municipality which has terminated services within territory deleted from its police jurisdiction or planning jurisdiction, or both, as provided for in this section or an instrumentality of the municipality from providing or continuing to provide solid waste, water, and/or sewer services, nor limit in any way the municipality’s participation in countywide or intergovernmental joint agencies or organizations as otherwise authorized by law.
(9) SUBSEQUENT ANNEXATIONS, RE-EXTENSIONS OF JURISDICTIONS. Nothing in this section shall prohibit a municipality which has reduced its police jurisdiction or planning jurisdiction, or both, through the deletion of certain territory pursuant to this section from subsequently annexing all or any portion of said territory in accordance with law.
In the event a municipality, pursuant to the provisions hereof adopts an ordinance(s) relating to the deletion of territory from its respective police jurisdiction or planning jurisdiction, or both, any subsequent annexations by the municipality shall not re-extend the respective police jurisdiction or planning jurisdiction, or both of the municipality so as to include any such territory so deleted, nor extend the police jurisdiction or planning jurisdiction, or both of the municipality into or over any area adjacent to or beyond any such territory so deleted.
Notwithstanding any law to the contrary, the respective police or planning jurisdiction, or both, of any other municipality in this state shall not at any time subsequently extend into or over any territory or area deleted from the respective police jurisdiction or planning jurisdiction, or both, of a municipality pursuant to the provisions of this section.
Provided, however, in the event a municipality desires to extend its police jurisdiction or planning jurisdiction, or both, into or over such an area or territory previously deleted, it shall follow all the procedural requirements as set forth herein for deletion of territory, except that the purpose thereof shall be for the extension of the police jurisdiction or planning jurisdiction, or both, of the municipality into or over all or a portion of the territory or area previously deleted. As provided for herein, the county commission shall have the right and authority to approve and/or disapprove the municipal request for extension of the respective jurisdictions.
(10) CODE ENFORCEMENT SERVICES. The municipality shall terminate the providing of building and related technical code enforcement services in any territory deleted from its police jurisdiction pursuant to this section.
*(Acts 1997, No. 97-647, p. 1194, §1.)*
##### **§ 11-44B-40** Applicability of Article {#sec-11-44b-40 omnilex-key=us-al-statutes--title-11--11-44B-40}
This article shall apply only to Class 4 municipalities organized under Chapter 44B, and electing by ordinance within 30 days of March 15, 2006, to be subject to this article and participate in the personnel system provided for in this article.
*(Act 2006-233, p. 420, §1.)*
##### **§ 11-44B-41** Definitions {#sec-11-44b-41 omnilex-key=us-al-statutes--title-11--11-44B-41}
As used in this article, unless the context indicates otherwise, the following words, terms, and phrases shall have the meanings ascribed to them:
(1) APPOINTING AUTHORITY. Depending upon the context, either the mayor, who shall appoint all department heads, or the department heads, who shall appoint all other covered employees pursuant to the provisions herein.
(2) APPOINTMENT. Depending upon the context, selection by the appointing authority to a covered job or selection by the Governor, Lieutenant Governor, or the Speaker of the House of Representatives of this state of a person to serve on the board.
(3) BASE PAY. The regular compensation for covered employees as most recently established or authorized by city ordinance, not to include overtime pay, job assignment pay, incentive pay, bonuses, or any other special, temporary, supplemental, or conditional pay. Base pay is usually expressed annually, but may also, if so indicated, be expressed biweekly or hourly.
(4) BOARD. The personnel board created by this article.
(5) CITY. A Class 4 municipality electing to participate in the personnel system provided for in this article.
(6) CITY COUNCIL. The governing body of the city.
(7) COVERED EMPLOYEE OR JOB. Regular status or probationary status employees or jobs covered by the personnel system herein established shall include any individual or job, including department heads, employed or required to be employed full time in the service of the city in a department on a regular basis for at least 32 hours in a workweek established by the city or the equivalent hours for a public safety individual who is assigned to work a work period pursuant to 29 U.S.C. §207(k). The term does not include individuals employed by the city in temporary or part-time jobs. The conditions of employment for these individuals shall be established by the city council. Temporary and part-time employees may not be moved directly into the personnel system as established by this article, but may apply, along with other qualified applicants, for any vacancy which exists in the personnel system.
(8) DEMOTION. Selection of a covered employee to a job classification with a lower pay grade either voluntarily or involuntarily.
(9) DEPARTMENT HEAD. Any employee designated by the city council or general state law as head of a major activity or department of the city. Employees functioning as department heads on March 15, 2006, shall remain as department heads subject to this article.
(10) FIREFIGHTER. A firefighter of the city fire department who has satisfied the requirements of Section 36-32-7, and the rules and regulations adopted by the Alabama Firefighters’ Personnel Standards and Education Commission and certified by that commission as a firefighter.
(11) JOB. A funded position of a department within a job classification.
(12) JOB CLASSIFICATION. Covered jobs separated into a group or class having one or more common factors.
(13) PART-TIME EMPLOYEE. Individuals employed on an on-going basis who are normally scheduled to work less than 32 hours in the established seven calendar day workweek, or less than the equivalent hours for those public safety individuals who are assigned to a work period pursuant to 29 U.S.C. §207(k).
(14) PERSONNEL SYSTEM. The personnel system created pursuant to this article.
(15) POLICE OFFICER. A sworn police officer of the city police department who has satisfied the requirements of and has been certified by the Alabama Peace Officers’ Standards and Training Commission pursuant to Article 3, commencing with Section 36-21-40, of Chapter 21, Title 36 and who is classified as police patrol officer.
(16) PROBATIONARY STATUS. A condition of employment which a covered employee must successfully serve to completion of the established probationary period to achieve regular status. Those individuals who are currently employed by the city on March 15, 2006, but have not completed the probationary period required by this article shall be required to complete the remainder of the probationary period before being granted regular status in the personnel system. A probationary status employee shall not be entitled to the privileges and protection of that afforded regular status employees by this article.
(17) PROMOTION. Selection of a covered employee to a job classification with a higher pay grade or reclassification to a higher pay grade.
(18) REGULAR STATUS. A condition of employment that covered employees are afforded upon the successful completion of the established probationary period. A regular status employee shall be entitled to the privileges and protection afforded by this article. Employees who, on March 15, 2006, have previously completed the required probationary period for the job he or she holds shall be given credit for previous probationary service and granted regular status. In addition, any former full-time, at-will employees who have completed one year of employment with the city shall be given credit for previous service and granted regular status.
(19) TEMPORARY EMPLOYMENT. An individual employed in a job for a period of no more than 180 calendar days. If warranted, temporary employment may be extended by the appointing authority for an additional 90 calendar days.
(20) TRANSFER. Assignment of a covered employee from one job to another job within the same job classification.
(21) VACANCY. A covered job which has not been filled by the appointment of an individual.
*(Act 2006-233, p. 420, §2.)*
##### **§ 11-44B-42** Scope of Article; Rules and Regulations; Job Classification Specifications; Employment Retention and Removal; Reduction of Base Pay {#sec-11-44b-42 omnilex-key=us-al-statutes--title-11--11-44B-42}
(a) All covered employees of the city shall be subject to this article and the rules and regulations prescribed in or promulgated pursuant to this article.
(b) All rules and regulations promulgated pursuant to this article shall be enacted by the city council based upon applicable state and federal laws. The rules and regulations shall establish qualifications for examinations and appointment of new covered employees, assignment or transfer of current covered employees, resignations, disciplinary actions to include, but not be limited to, suspensions, demotions and dismissals, layoffs, leaves of absence with pay, leaves of absence without pay, and all other matters determined by the city council to be required to effectively implement the intent of this article. All rules and regulations shall govern covered employees. The city council shall cause the rules and regulations and other components of the established personnel system to be periodically reviewed and revised as needed to insure the system is responsive to the needs of the city, to meet all legal requirements, and to implement the intent of this article.
(c) The human resources department of the city shall develop and submit to the city council for approval by resolution job classification specifications for all jobs in the city to be representative of the duties, activities, and qualifications; provided however, the mayor may authorize or direct revisions to established job classification specifications to promote the efficiency of the city.
(d) Present employees determined to be regular status employees in accordance with this article and those who may hereafter be employed in the personnel system and to have achieved regular status shall remain in their respective employment subject to removal for cause, availability of funds, need for jobs as determined by the city council, and reductions in force. For department heads, removal for cause shall include failure to meet standards under performance based contracts or agreements if such performance based contracts are implemented. No covered employee on March 15, 2006, shall be subject to any examination in order to retain his or her present job. This article shall not be construed to prevent or preclude the removal of any covered employee, regardless of employment status, in the manner provided herein.
(e) Except in connection with a reduction in base pay for all jobs or a job classification, due to the availability of funds, the base pay of a covered employee may not be reduced except as provided herein.
*(Act 2006-233, p. 420, §3.)*
##### **§ 11-44B-43** Filling of Vacancies; Eligibility Lists; Examinations; Selection of Applicants; Promotions of Firefighters and Police Officers {#sec-11-44b-43 omnilex-key=us-al-statutes--title-11--11-44B-43}
(a) With the exception of promotions of firefighters and police officers which shall be made by the board, all vacancies for covered jobs shall be filled by the appointing authority as provided herein.
(b) The human resources department of the city shall make and maintain sufficient lists of all persons eligible and available for appointment to jobs as is necessary for the city to operate efficiently as determined by the city council. All appointments shall be made from such eligibility lists. With the exception of police officers and firefighters, no appointment or promotion shall be made from an eligibility list that is more than 12 months old. The human resources department shall conduct examinations to test the ability and qualifications of applicants for all job classifications of police officer, firefighter, telecommunicator, and any other covered jobs for which it deems examinations or interviews are appropriate. Examinations shall be competitive, open to all qualified applicants, and subject to the limitations specified by the human resources department or city council. The human resources department shall notify applicants of the date and time of the examinations. Based upon an examination or interviews, or both, by the appointing authority or his or her designee, the human resources department shall develop a list of eligible qualified applicants and the appointing authority shall select the best qualified applicant to fill the vacancy from the list. The appointing authority shall notify the human resources director in writing of the selection. If the human resources director is satisfied that the best qualified applicant was selected, he or she shall extend a conditional offer to the selected applicant pursuant to established city policy. If the appointing authority is not the mayor and the human resources director is not satisfied that the best qualified applicant was selected, the director shall meet with the department head to review the department head’s reasons for the selection. After meeting with the department head, if the human resources director remains unsatisfied that the best qualified applicant was selected, then the matter shall be referred to the mayor, who shall conduct a hearing with the department head and the human resources director. At the conclusion of the hearing, the mayor may endorse and direct the selection of the applicant selected by the department head or the mayor may direct the selection of another applicant from the eligibility list if the mayor determines that the best qualified applicant was not selected by the department head for reasons inconsistent with the principles of this article, city policy, or applicable state or federal law.
(c) Promotions of firefighters and police officers, excluding the initial appointment to the entry level of the firefighter and police officer job classifications, shall be made by the board in accordance with this article. The human resources department shall develop a list of eligible qualified applicants as provided in subsection (b), and the board shall select the best qualified applicant to fill the vacancy for promotion from the list and notify the human resources director as provided in subsection (b). If the board does not select an applicant to fill the vacancy for promotion from the list within 90 calendar days from the date the list was provided to the board, the human resources director of the city shall provide the list to the mayor, who shall select the best qualified candidate from that list.
*(Act 2006-233, p. 420, §4; Act 2020-192, §1.)*
##### **§ 11-44B-44** Probationary Period for Appointments {#sec-11-44b-44 omnilex-key=us-al-statutes--title-11--11-44B-44}
All appointments to covered jobs, including promotions, demotions, and transfers, shall be on a probationary basis for a period of one year from the beginning of employment. For those jobs in which the individual is required to meet state minimum standards, the probationary period shall conclude upon fulfillment of the standards or the passage of one year, whichever is later. A leave of absence will stay the probationary period for the length of the leave. During a covered employee’s probationary period, a department head may discharge a probationer under his or her supervision by stating in writing the reasons to the mayor. If the mayor disagrees with the discharge, he or she, within five days of receipt of the written statement, may notify the department head and the probationer of the time and place of a hearing to be conducted in regard to the discharge. Upon failure of the mayor to so notify within five business days, the mayor shall be deemed to have consented to the discharge. In the event that a hearing is scheduled, the department head may suspend the probationer without pay pending the hearing.
*(Act 2006-233, p. 420, §5; Act 2020-192, §1.)*
##### **§ 11-44B-45** Appointments and Promotions by Merit {#sec-11-44b-45 omnilex-key=us-al-statutes--title-11--11-44B-45}
All persons shall be appointed or promoted to covered jobs on a nonpartisan merit basis. No person shall be appointed or promoted to, or dismissed from, any job, or in any way favored or discriminated against with respect to employment because of his or her political or religious opinions or affiliations. No person shall seek or attempt to use any political endorsement in connection with any appointment or promotion to a job.
*(Act 2006-233, p. 420, §6.)*
##### **§ 11-44B-46** Establishment of Personnel Board; Composition; Terms; Meetings; Compensation; Records {#sec-11-44b-46 omnilex-key=us-al-statutes--title-11--11-44B-46}
(a) Upon election by ordinance of a city to participate in the personnel system provided for in this article, there shall be established a personnel board composed of five members designated, respectively, as place number 1, place number 2, place number 3, place number 4, and place number 5. Each member shall be of recognized good character and ability and a resident and qualified elector of the city. No person shall be eligible for membership on the board who holds any civil office of profit under the city, county, or state. No board member shall be a member of any local committee of a political party, or an official of a local partisan political club, or a candidate for nomination or election to any public office, nor shall he or she take any part in the management or affairs of any local political party or in any city political campaign, except to exercise his or her right as a citizen privately to express his or her opinion and to cast his or her vote. With the exception of current board members, no person shall be or remain a board member if their spouse, a dependent, an adult child or his or her spouse, a parent, a spouse’s parents, a sibling or his or her spouse is an elected official of the city or an employee of the city. Any board member who violates any of the foregoing provisions of this section shall forfeit his or her office and position.
(b) The members of the board shall be appointed as follows:
(1) The city council shall nominate, by ordinance duly enacted, three qualified candidates for each of the five places on the board or for any place on the board that subsequently becomes vacant.
(2) Places number 1, number 2, and number 5 on the board shall be appointed by the Governor of this state from the three candidates nominated by the city council for that place for appointment on the board.
(3) Place number 3 on the board shall be appointed by the Lieutenant Governor from the three candidates nominated by the city council for that place for appointment on the board.
(4) Place number 4 on the board shall be appointed by the Speaker of the House from the three candidates nominated by the city council for that place for appointment on the board.
(5) If either the Governor, the Lieutenant Governor, or the Speaker of the House does not appoint a member to a place on the board within 90 calendar days from the date of receipt of the nominations by the city council for that place, the city council shall make the appointment to that place on the board.
(c) The initial term of place number 1, place number 3, and place number 5 shall be for two years. The initial term of place number 2 and place number 4 shall be for four years. Thereafter, the term of each board member shall be four years with vacancies for unexpired terms to be filled for the remainder of the unexpired term by the appointing authority.
(d) Any member of the board may be removed by a resolution of the city council if five members vote in favor of the resolution when his or her service to the board, including bias, conflict of interest, excessive absenteeism, or personal conduct, is considered to be detrimental to the effectiveness or reputation of the board or the city. The mayor and city council may initiate termination action or may react in response to a written request from the majority of the board members when they deem the action is warranted.
(e) The board shall meet as often as necessary or as required by the city council in city hall, or other municipal building as designated by the mayor, on a date and at an hour to be fixed by it. Three members of the board shall constitute a quorum. All meetings of the board shall be subject to all applicable provisions of the Alabama Open Meetings Law.
(f) The board shall annually elect one of its members as chair.
(g) Every person appointed to the board shall within 15 days after his or her appointment qualify by making written oath that he or she is eligible for the office and that he or she will faithfully perform the duties of the office. The oath shall be administered by a person authorized to administer oaths with a copy filed with the city clerk.
(h) Any current members of any civil service board or personnel board or similar body existing on March 15, 2006, and exercising any powers or authorities that would otherwise be exercised pursuant to this article who were appointed in accordance with applicable law or for those who were appointed by the Governor shall complete their term of office as follows: Member number 1 in place number 1; member number 2 in place number 2; and member number 3 in place number 3.
(i) Board members shall serve without compensation unless the city council elects to establish the compensation of each board member by ordinance.
(j) The board shall keep minutes of its meetings and a record of all business transacted by it. Its records, except those which applicable law requires or permits to be held confidential, shall be open for inspection by any person at all reasonable times upon reasonable request. The city shall furnish clerical assistance to the board and shall act as the custodian of the records of the board. The board shall have no employees nor supervise or direct any covered employees.
*(Act 2006-233, p. 420, §7.)*
##### **§ 11-44B-47** Disciplinary Actions; Hearing {#sec-11-44b-47 omnilex-key=us-al-statutes--title-11--11-44B-47}
(a) The mayor or department head shall have authority to discipline any covered employee pursuant to this article and the rules and regulations adopted by the city council to implement this article.
(b) No regular status employee may be suspended without pay, demoted, dismissed, or otherwise deprived of any constitutionally protected property interest in his or her job unless he or she has been afforded the opportunity of a predisciplinary hearing before a neutral hearing officer of the city in which he or she is informed of the reasons in writing for the disciplinary action and afforded an opportunity to respond orally or in writing in his or her defense prior to any such disciplinary action being taken. Thereafter, the department head or the mayor shall have the authority to demote or suspend the employee without pay for a period not to exceed 30 calendar days. A regular status employee so demoted or suspended may appeal the disciplinary decision to the board by filing a written demand with the board for a hearing within 10 calendar days of receipt of the disciplinary order. A department head’s or the mayor’s decision to terminate a regular status employee or suspend a regular status employee without pay for a period exceeding 30 calendar days shall require written charges sworn to before any person authorized to administer oaths setting forth succinctly the matters to be complained of to be filed with the board.
*(Act 2006-233, p. 420, §8.)*
##### **§ 11-44B-48** Conduct of Hearing; Appeal and Review {#sec-11-44b-48 omnilex-key=us-al-statutes--title-11--11-44B-48}
(a) Within 90 calendar days after receipt of written charges or a written appeal of an employee from a decision after predisciplinary hearing, the board shall schedule and hold a public hearing in regard thereto and render a decision. The board shall provide notice of the hearing to the mayor, the employee’s department head, and the city attorney. At the hearing, the employee shall be entitled to be represented by an attorney of his or her choosing and expense.
(b) If the regular status employee appeals, no disciplinary action taken against the employee shall become final until the board holds a hearing on the action. Provided however, suspensions with or without pay in regard to seeking an employee’s termination shall remain in effect until a final ruling by the board unless otherwise ordered by the board.
(c) All hearings before the board shall be recorded and transcribed. In all cases, the decision of the board shall be reduced to writing and entered in the record of the case. The board may in its decision uphold the disciplinary action, modify the disciplinary action, increase the punishment, set aside the disciplinary action, or impose some other disciplinary action as warranted by the evidence and pursuant to the law.
(d) In any proceeding before the board, the city attorney or his or her designee shall appear and represent the interests of the city. The mayor, department head, or any member of the city council shall also have the right to appear and be heard by the board.
(e) The board shall have the power to administer oaths, take depositions, certify official acts, and issue subpoenas to compel the attendance of witnesses and production of papers necessary as evidence in connection with any hearing, investigation, or proceeding within the purview of this article. The board or its representative may invoke the aid of the circuit court of the county in which the city is located to enforce subpoenas. The fees of witnesses for attendance and travel shall be the same as fees for witnesses in the circuit courts of this state and shall be paid from the treasury of the city.
(f) Any party, including the mayor, department head, or city council, aggrieved by a final decision of the board shall be entitled to a review of the decision by the circuit court of the county in which the city is located, by filing a petition in the court within 30 days after the final decision is rendered. Upon the filing of any petition, notice thereof shall be served upon the chair of the board, the mayor, and on the petitioner. The petition shall be heard by the court at the earliest practicable date. Review by the court shall be without a jury and confined to the record, including a transcript of the evidence. The court, upon the terms and conditions it deems proper, at any time before the hearing of the petition, may permit the taking of additional evidence before the board and allow modification of the findings and final decision of the board. The court upon a hearing of the petition, shall have power to affirm or reverse and render the decision of the board or reverse and remand the matter to the board for further proceedings consistent with the judgment of the court. The court shall affirm the decision of the board unless it finds that the substantial rights of the petitioner have been prejudiced because the final decision of the board was any of the following:
(1) Unsupported by substantial evidence in the record submitted.
(2) In excess of the authority conferred by this article on the board.
(3) Violative of constitutional provisions.
(4) Arbitrary or capricious.
(g) An appeal may be taken from any final judgment of the circuit court to the Alabama Court of Civil Appeals or the Alabama Supreme Court, or both, pursuant to the Alabama Rules of Appellate Procedure. The decision or order of the board shall not be superseded pending any review or appeal, and the city shall not be obligated to pay the salary of any employee who is not working during the pendency of any review or appeal.
(h) All cases pending before any civil service or personnel board pursuant to prior legislative requirements on March 15, 2006, shall be transferred to the board and the proceedings shall be held in accordance with this article.
*(Act 2006-233, p. 420, §9.)*
##### **§ 11-44B-49** Use of Authority to Influence Official Action; Candidates for Municipal Office to Take Leave of Absence {#sec-11-44b-49 omnilex-key=us-al-statutes--title-11--11-44B-49}
No individual shall use, or promise to use, directly or indirectly, any official authority or influence, whether possessed or anticipated, to affect employment, promotion, pay, or other conditions of employment, either adversely or advantageously, with the city or the board, for the purpose of influencing the vote or political action of any person or for any other consideration. A covered employee who is a candidate for municipal office in the city shall take a leave of absence beginning on the day he or she files a statement of candidacy and continuing for as long as he or she is a candidate for the office.
*(Act 2006-233, p. 420, §10.)*
##### **§ 11-44B-50** Violations {#sec-11-44b-50 omnilex-key=us-al-statutes--title-11--11-44B-50}
The violation by any covered employee of this article, or of any of the rules and regulations adopted by the city pursuant to this article, shall constitute an offense for which charges may be preferred against the employee pursuant to the provisions hereof.
*(Act 2006-233, p. 420, §11.)*
##### **§ 11-44B-51** Adoption of Rules and Regulations {#sec-11-44b-51 omnilex-key=us-al-statutes--title-11--11-44B-51}
Within 12 months from March 15, 2006, the city council shall adopt and have published the rules and regulations in accordance with this article. The rules and regulations and all amendments thereafter shall be adopted by ordinance of a general and permanent nature and codified in the city code. Any reference in any ordinance, resolution, or code of any city electing to be subject to this article to any civil service board or personnel board or similar body existing on March 15, 2006, and exercising any powers or authorities that would otherwise be exercised pursuant to this article shall mean and refer to the appointing authority, the city, or the board as the context indicates.
*(Act 2006-233, p. 420, §12.)*
### **Chapter 44C** Government of Class 2 Municipalities
##### **§ 11-44C-1** Applicability of Chapter {#sec-11-44c-1 omnilex-key=us-al-statutes--title-11--11-44C-1}
This chapter shall apply to any Class 2 municipality in the state of Alabama.
*(Acts 1985, No. 85-229, p. 96, §1.)*
##### **§ 11-44C-2** Special Election as to Adoption of Commission or Mayor-Council Form of Government {#sec-11-44c-2 omnilex-key=us-al-statutes--title-11--11-44C-2}
Upon March 28, 1985, the mayor or chief executive officer of any city to which this chapter applies shall call a special election to be held on May 14, 1985, said call for the purpose of determining whether such city shall adopt the court ordered district commission form of government in accordance with the consent decree entered into by the parties and approved by the court on April 7, 1983, in the case of Bolden vs. City of Mobile, Civil Action No. 75-297, or in the alternative the mayor-council form of government, authorized by this chapter, and shall give notice of the time and purpose of such election by publication once each week for four consecutive weeks in a newspaper published in said city. All qualified electors of such city may participate in said election, as provided by this chapter, and such questions shall be plainly printed upon the ballot as provided in Section 11-44C-3. The election shall be conducted, the expenses paid, the votes canvassed and the results declared in the same manner as is or may be provided by law in other city elections. The proposal for which the majority of the votes cast shall be “yes,” or in favor of such proposition shall thereby be adopted for such city, and the mayor or other chief executive officer shall transmit to the Governor, to the Secretary of State, and to the judge of probate of the county, a certificate stating that such proposition was adopted for such city.
*(Acts 1985, No. 85-229, p. 96, §2.)*
##### **§ 11-44C-3** Form of Ballot; Marking of Ballot; Use of Voting Machines {#sec-11-44c-3 omnilex-key=us-al-statutes--title-11--11-44C-3}
At such election the proposition to be submitted shall be printed in plain prominent type on ballots separate and distinct from ballots used for any other office or question and shall read as follows:
Check one of the following:
(1) Shall the mayor-council form of government, as provided by Act 85-229, be adopted for the city of _____?
Yes _____; or
(2) Shall the district commission form of government be adopted for the city of _____?
Yes _____.
The voter shall mark his ballot with a cross mark (X) after the proposition which expresses his choice. If voting machines are used at any voting place in such election, the above proposition may, at the discretion of the election commission or other body or official having charge of the conduct of municipal elections in such city, be submitted as a separate proposition on voting machines so used.
*(Acts 1985, No. 85-229, p. 96, §3.)*
##### **§ 11-44C-4** Conduct of Election; Portions of Chapter Applicable Upon Choosing Form of Government; Election Expenses {#sec-11-44c-4 omnilex-key=us-al-statutes--title-11--11-44C-4}
The election shall be held and conducted in accordance with the provisions of Title 11, except as herein otherwise specifically provided. If the votes shall be in favor of the court ordered district commission form of government then only the applicable provisions of this chapter shall thereby be adopted for such city; if the majority of the votes shall be in favor of the mayor-council form of government, then only the applicable provisions of this chapter shall thereby be adopted for such city. The expenses of any and all elections provided for in this chapter shall be paid by the city.
*(Acts 1985, No. 85-229, p. 96, §4.)*
##### **§ 11-44C-5** Provisions Applicable to Mayor-Council Form of Government {#sec-11-44c-5 omnilex-key=us-al-statutes--title-11--11-44C-5}
If a majority of the qualified electors voting in the election provided herein choose a mayor-council form of government, the following provisions of this chapter shall be applicable.
*(Acts 1985, No. 85-229, p. 96, §5.)*
##### **§ 11-44C-6** Election of Council and Mayor-at-Large; Time of Taking Office; Election Expenses {#sec-11-44c-6 omnilex-key=us-al-statutes--title-11--11-44C-6}
An election shall be held in 1985 at the regularly scheduled municipal election and the officials elected shall take office upon the expiration of the present official’s term of office. Seven council members to be elected by districts and a mayor to be elected at-large shall be elected and the expense thereof shall be paid by the municipality.
*(Acts 1985, No. 85-229, p. 96, §6.)*
##### **§ 11-44C-7** Qualification of Council Candidates; Votes Cast by Each Voter; Majority Vote Requirements; Run-Off Elections; Elections Held Quadrennially; When Elected Councilmen Take Office; Term of Office; Councilman May Succeed Himself {#sec-11-44c-7 omnilex-key=us-al-statutes--title-11--11-44C-7}
Council candidates shall qualify as provided by law and shall have the qualification and eligibility set forth herein. Each voter in the election may cast one vote for a candidate from his district, and one vote for a candidate for mayor. Any district councilman candidate receiving a majority of the total votes cast from the district in which he is a candidate shall be elected as a district councilman in his district. In the event that a district councilman candidate, should fail to receive such a majority, then another election shall be held upon the same day of the week three weeks thereafter to be called and held in the same mode and manner and under the same rules and regulations. In the second election there shall be two candidates for each place upon the council to be filled in such run-off election and these candidates shall be the two who received the highest number of votes. The candidate or candidates for the council receiving the highest number of votes cast in the second election shall be elected, so that in the first and second elections seven councilmen shall be elected. Regular municipal elections shall be held quadrennially thereafter under the same rules and regulations and in the same mode and manner as provided by law. The councilmen so elected shall take office upon the expiration of the terms of office of the present municipal officeholders. Each councilman shall hold office for four years, but shall serve until his successor shall have qualified. A councilman may succeed himself in office.
*(Acts 1985, No. 85-229, p. 96, §7.)*
##### **§ 11-44C-8** Mayor - Majority Vote Requirements; Run-Off Election {#sec-11-44c-8 omnilex-key=us-al-statutes--title-11--11-44C-8}
The candidate for mayor receiving the largest number of votes for the office shall be elected thereto, provided such candidate receives a majority of all votes cast for such office. If at the first election no candidate received a majority of the votes cast for the office, then another election shall be held upon the same day of the week three weeks thereafter to be called and held in the same mode and manner and under the same rules and regulations. In the second election there shall be two candidates for the office of mayor; and these candidates shall be the two who received the highest number of votes for said office at the first election.
*(Acts 1985, No. 85-229, p. 96, §8.)*
##### **§ 11-44C-9** Mayor - Elections Held Quadrennially; Oath; May Succeed Himself {#sec-11-44c-9 omnilex-key=us-al-statutes--title-11--11-44C-9}
The mayor shall qualify and take office in the manner herein prescribed. The regular election for mayor shall be held quadrennially thereafter under the same rules and regulations and in the same mode and manner herein provided. The mayor elected at such regular election shall qualify by making oath that he is eligible for said office and will execute the duties of same according to the best of his knowledge and ability. Said oath may be administered by any person authorized to administer an oath under the laws of Alabama. A mayor may succeed himself.
*(Acts 1985, No. 85-229, p. 96, §9.)*
##### **§ 11-44C-10** City Continued as Municipal Corporation {#sec-11-44c-10 omnilex-key=us-al-statutes--title-11--11-44C-10}
When this mayor-council form of government becomes applicable to a city, said city shall continue as a municipal corporation, within the corporate limits as now established and as may hereafter be fixed in the manner prescribed by law, subject to all duties and obligations then pertaining to or incumbent upon it as a municipal corporation and shall continue to enjoy all the rights, immunities, powers and franchises then enjoyed by it, as well as those that may thereafter or hereinafter be granted to it.
*(Acts 1985, No. 85-229, p. 96, §10.)*
##### **§ 11-44C-11** Government Known as “Mayor-Council Form of Government”; Powers of City Vested in Council; Manner in Which Powers Exercised {#sec-11-44c-11 omnilex-key=us-al-statutes--title-11--11-44C-11}
The municipal government of any such city proceeding under this chapter shall be known as the “mayor-council form of government.” Pursuant to the provisions and limitations of this chapter and subject to the limitations imposed by the Constitution of Alabama and its laws, all powers of the city shall be vested in the council elected as herein provided and hereinafter referred to as “the council,” which shall enact ordinances, adopt budgets and determine policies. All powers of the city shall be exercised in the manner prescribed by this chapter, or if the manner be not prescribed, then in such manner as may be prescribed by law or by ordinance.
*(Acts 1985, No. 85-229, p. 96, §11.)*
##### **§ 11-44C-12** Powers of City Generally {#sec-11-44c-12 omnilex-key=us-al-statutes--title-11--11-44C-12}
The city shall have all the powers granted to municipal corporations and to cities by the Constitution and laws of this state, together with all the implied powers necessary to carry into execution all the powers granted, and the provisions of this chapter.
*(Acts 1985, No. 85-229, p. 96, §12.)*
##### **§ 11-44C-13** Council to Consist of Seven District Council Members; Composition of Districts {#sec-11-44c-13 omnilex-key=us-al-statutes--title-11--11-44C-13}
The council shall include seven members who shall be known and elected as district council members. Such district council members shall be elected from districts which shall be, as near as practicable, of equal population according to the last federal decennial census. The seven districts shall be as follows:
*(Acts 1985, No. 85-229, p. 96, §13; Acts 1985, No. 85-623, p. 948.)*
##### **§ 11-44C-14** District Council Members - Filing as Candidate; Qualifying Fee {#sec-11-44c-14 omnilex-key=us-al-statutes--title-11--11-44C-14}
Any person desiring to become a candidate in any election for the office of district council member may become such candidate by filing in the office of the city clerk, a statement in writing as required by the general municipal election laws. Said statement shall be accompanied by a qualifying fee in the amount of $125.00, which fee shall be paid into the general fund of the city.
*(Acts 1985, No. 85-229, p. 96, §14.)*
##### **§ 11-44C-15** District Council Members - No Primary Elections; Filing of Pauper’s Oath or Petition to Become Candidate {#sec-11-44c-15 omnilex-key=us-al-statutes--title-11--11-44C-15}
No primary election shall be held for the nomination of candidates for the office of council member, and candidates shall be nominated only as provided herein. A person may also become a candidate for the office of council member by filing a verified pauper’s oath with the city clerk, or by filing a verified petition containing an endorsement of candidacy by the signatures and addresses of 500 persons, each of whom is a registered voter residing in the city and within the district for which the individual intends to be a candidate for election to office, provided that no such signature may be obtained more than 12 months preceding the deadline for filing said statements.
*(Acts 1985, No. 85-229, p. 96, §15.)*
##### **§ 11-44C-16** District Council Members - Oath of Office {#sec-11-44c-16 omnilex-key=us-al-statutes--title-11--11-44C-16}
Every person who shall be elected or appointed to fill a vacancy in the office of council member shall, upon assuming office, qualify by making oath that he is eligible for said office and will execute the duties of same according to the best of his knowledge and ability. Said oath may be administered by any person authorized to administer an oath under the laws of the state of Alabama.
*(Acts 1985, No. 85-229, p. 96, §16.)*
##### **§ 11-44C-17** District Council Members - Qualifications; Holding Other Offices; Effect of Conviction or Loss of Any Qualification {#sec-11-44c-17 omnilex-key=us-al-statutes--title-11--11-44C-17}
Councilmen shall be qualified electors of the city and, in the case of candidates for any district, they shall have been residents of the district which they represent for at least 90 days prior to their election, shall reside in the district during their terms of office and shall have attained the age of 21 years. No councilman shall hold any other public office except that of notary public or member of the national guard or naval or military reserve, and all shall have been residents of the city for at least one year prior to their election. If the councilman shall cease to possess any of these qualifications or shall be convicted of crime involving moral turpitude, his office shall immediately become vacant.
*(Acts 1985, No. 85-229, p. 96, §17.)*
##### **§ 11-44C-18** District Council Members - Compensation; Additional Stipend for President of Council {#sec-11-44c-18 omnilex-key=us-al-statutes--title-11--11-44C-18}
Each council member shall receive as compensation for his services the sum of $100.00 for each meeting of the council attended, and $500.00 per month. Said salaries shall be payable in monthly installments at the end of each month. The president of the council shall receive an additional stipend not to exceed $100.00 per month. Subsequent to the term of office of the mayor and councilmen elected hereunder, the mayor and each councilman shall receive as compensation for their services the sum established by the municipal governing body at least six months prior to the date of the regular election, but in no event shall salaries be set below those as specified in this chapter.
*(Acts 1985, No. 85-229, p. 96, §18.)*
##### **§ 11-44C-19** President of Council {#sec-11-44c-19 omnilex-key=us-al-statutes--title-11--11-44C-19}
The president of the council shall be elected by the members of the council and shall serve the regular four-year term. He shall preside at all meetings of the council and shall be a voting member. If a vacancy shall occur in the office of the president of the council, the council shall elect a successor to the president.
*(Acts 1985, No. 85-229, p. 96, §19.)*
##### **§ 11-44C-20** Vice-President of Council {#sec-11-44c-20 omnilex-key=us-al-statutes--title-11--11-44C-20}
The vice-president of the council shall be elected by the members of the council. The vice-president will serve in the absence of the president. If a vacancy shall occur in the office of the vice-president of the council, the council shall elect a successor to the vice-president.
*(Acts 1985, No. 85-229, p. 96, §20.)*
##### **§ 11-44C-21** Powers of Council; Dealings with Officers and Employees in Administrative Service {#sec-11-44c-21 omnilex-key=us-al-statutes--title-11--11-44C-21}
All legislative powers of the city, including all powers vested in it by this chapter, by the laws, general and local, of the state, and by the Code of Alabama 1975, as amended, and the determination of all matters of legislative policy, shall be vested in the council. Without limitation of the foregoing, the council shall have power to:
(1) Upon recommendation of the mayor, establish administrative departments and distribute the work of divisions,
(2) Adopt the budget of the city,
(3) Authorize the issuance of bonds or warrants,
(4) Inquire into the conduct of any office, department or agency of the city and make investigations as to municipal affairs,
(5) Appoint the members of all boards except the planning commission and the housing board and the Airport Authority and the Industrial Development Authority,
(6) Succeed to all the powers, rights and privileges conferred upon the former governing body of the city by statutes in effect at the time of adoption by the city of the mayor-council form of government and not in conflict with this chapter,
(7) Levy property, sales and license taxes and local improvement assessments.
Neither the council nor any of its members shall direct or request the appointment of any person to, or his removal from office, or in any manner take part in the appointment or removal of officers and employees in the administrative service to the city. Except for the purpose of inquiry, the members of the council shall deal with the administrative service only through the mayor. Members of the council shall not give orders to any subordinates of the mayor, either publicly or privately. Any councilman violating the provisions of this section, or voting for a resolution or ordinance in violation of this section, shall be guilty of a misdemeanor and upon conviction thereof shall cease to be a councilman.
*(Acts 1985, No. 85-229, p. 96, §21.)*
##### **§ 11-44C-22** Vacancies in Council {#sec-11-44c-22 omnilex-key=us-al-statutes--title-11--11-44C-22}
Vacancies of any nature in the council, other than those occurring less than one year prior to the date of the next regular council election, shall be filled by special elections to be held for that purpose, the dates of which shall be set by the council at the next regular meeting or any subsequent meeting of the council after such vacancy occurs, such dates to be set no later than 120 nor less than 60 days after the occurrence of such vacancies. Such elections shall be held in the same manner and subject to the same procedures as regular council elections and the person so elected shall hold office for the remainder of the unexpired term. A special election shall be called by the mayor on the date set by the council and shall be held in accordance with the provisions of this chapter and the general laws applicable to such city.
If a vacancy occurs after reapportionment has changed the district boundaries, but before the new districts take effect, the old district boundaries will remain in effect for filling that vacancy.
Vacancies where less than one year remains of the unexpired term shall be filled by appointment by the mayor with confirmation by the council.
*(Acts 1985, No. 85-229, p. 96, §22; Act 2012-245, p. 477, §2.)*
##### **§ 11-44C-23** Creating, Changing, Abolishing, or Assigning Additional Functions to Offices, Departments, or Agencies {#sec-11-44c-23 omnilex-key=us-al-statutes--title-11--11-44C-23}
The council, upon recommendation of the mayor, by ordinance may create, change and abolish offices, departments, or agencies, other than the offices, departments and agencies established or continued by this chapter. The council, upon recommendation of the mayor, by ordinance may assign additional functions or duties to offices, departments or agencies established by this chapter, but may not discontinue or assign to any other office, department, or agency any function or duty assigned by this chapter to a particular office, department or agency.
*(Acts 1985, No. 85-229, p. 96, §23.)*
##### **§ 11-44C-24** City Clerk Continued in Office; Applicability of Merit System; Appointment of Successor; Duties {#sec-11-44c-24 omnilex-key=us-al-statutes--title-11--11-44C-24}
The city clerk serving under the merit system at the time that this chapter becomes effective shall continue to hold office as the city clerk under the mayor-council form of government of such city, and his successor shall be selected and hold office subject to the provisions of such merit system. After the current city clerk retires, the council shall be the appointing authority in filling any vacancy in the office of city clerk. The city clerk shall give notice of special or called meetings of the council, shall keep the journal of its proceedings, shall authenticate by his signature and record in full in a book kept for such purpose all ordinances and resolutions and shall perform such other duties as shall be required by this chapter, or by ordinance, or such duties as are imposed by general law of Alabama upon city clerks.
*(Acts 1985, No. 85-229, p. 96, §24.)*
##### **§ 11-44C-25** First Meeting of Council; Council to Meet Regularly; Meetings Open to Public {#sec-11-44c-25 omnilex-key=us-al-statutes--title-11--11-44C-25}
The first meeting of each newly elected council for induction into office shall be held at 10 o’clock in the morning on the first Monday after the expiration of the term of office of the present municipal officeholders, after which the council shall meet regularly at such times as may be prescribed by its rules, but not less frequently than once a week. All meetings of the council shall be open to the public.
*(Acts 1985, No. 85-229, p. 96, §25.)*
##### **§ 11-44C-25.1** Number of Required Council Meetings Per Year {#sec-11-44c-25.1 omnilex-key=us-al-statutes--title-11--11-44C-25.1}
The city council or governing body of a Class 2 municipality shall meet not less than 48 times per year on dates and at times to be decided by the city council.
*(Acts 1996, No. 96-308, p. 351, §1.)*
##### **§ 11-44C-26** Council to Judge Election and Qualifications of Members {#sec-11-44c-26 omnilex-key=us-al-statutes--title-11--11-44C-26}
The council shall be the judge of the election and qualifications of its members and for such purpose shall have power to subpoena witnesses and require the production of records, but the decision of the council in any such case shall be subject to review by the courts.
*(Acts 1985, No. 85-229, p. 96, §26.)*
##### **§ 11-44C-27** Rules and Order of Business of Council; Journal of Proceedings {#sec-11-44c-27 omnilex-key=us-al-statutes--title-11--11-44C-27}
The council shall determine its own rules and order of business. It shall keep a journal of its proceedings, and the journal shall be open to public inspection.
*(Acts 1985, No. 85-229, p. 96, §27.)*
##### **§ 11-44C-28** Meetings of Council; Quorum; Majority Vote Requirement; Procedure; Record of Proceedings; Procedure as to Ordinances or Resolutions of Permanent Operation; Publication; No Veto as to Council Actions Relating to an Investigation {#sec-11-44c-28 omnilex-key=us-al-statutes--title-11--11-44C-28}
The council shall hold regular public meetings weekly, day or night, at a regular hour to be fixed by said council from time to time and publicly announced; it may hold such special or other meetings as the business of the city may require. The presence of five council members will constitute a quorum for the conduct of official council business. The affirmative vote of at least five members of the council shall be sufficient for the passage of any resolution, bylaw ordinance, or the transaction of any business of any sort by the said council or the exercise of any of the powers conferred upon it by the terms of this chapter or bylaw, or which may hereafter be conferred upon it. No resolution, bylaw or ordinance granting any franchise, appropriating any money for any purpose, providing for any public improvements, any regulation concerning the public health, or of any other general or permanent nature, shall be enacted except at a regular or special public meeting of said council. Every ordinance introduced at any and every meeting shall be in writing and shall be read before any vote thereon shall be taken, and the yeas and nays thereon shall be recorded; provided that if the vote of all council members present be unanimous, it may be so stated in the journal without recording the yeas and nays. A record of the proceedings of every meeting of the council shall be kept, and every resolution or ordinance passed by the council must be recorded, and the record of the proceedings of the meeting shall, when approved by the council, be signed by the president of the council and the city clerk. Such records shall be kept available for inspection by all citizens of such city during regular business hours. No ordinance of permanent operation shall be considered at the meeting at which it was introduced except by unanimous consent of all members of the council present, and such unanimous consent shall be entered upon the minutes of said meeting; provided, however, that if all members of the council present vote for the passage of the ordinance and their names are so entered of record as voting in favor thereof, it shall be construed as giving unanimous consent to the action upon such ordinance at the meeting at which it is introduced. All ordinances or resolutions of a permanent nature, after having been passed by the council, shall be transmitted by the clerk within 48 hours after their passage to the mayor for his consideration, who, if he shall approve thereof, shall sign and return the same to the clerk, who shall publish them, if publication thereof is required, and such ordinances and resolutions shall thereupon become effective and have the force of law. Delivery to the office of the mayor shall constitute delivery to the mayor. An ordinance or resolution may be recalled from the mayor at any time before it has become law, or has been acted on by him, by a resolution adopted by a majority of the members elected to the council in regular or special session. If the mayor shall disapprove of any ordinance or resolution transmitted to him as aforesaid, he shall, within 10 days of the time of its passage by the council, return the same to the clerk with his objections in writing, and the clerk shall make a report thereof to the next regular meeting of the city council; and if five members elected to the said council shall at said meeting adhere to said ordinance or resolution, notwithstanding said objections, said vote being taken by yeas and nays and spread upon the minutes, then, and not otherwise, said ordinance or resolution shall after publication thereof, if publication is required, have the force of law. If publication of said ordinance or resolution is not required, it shall take effect upon its passage over such veto. The failure of the mayor to return to the city clerk an ordinance or resolution with his veto within 10 days after its passage by the council shall operate and have the same effect as an approval of the same, and the city clerk, if publication is required, shall publish the same as is herein provided for publication of laws and ordinances of said city. If no publication is required, the ordinance or resolution shall become effective upon the expiration of said 10 days. These provisions are subject to the publication of ordinances as set out in section 11-45-8. Anything in this section to the contrary notwithstanding, the mayor shall not have the power of veto over any action of the council relating to an investigation as provided herein.
*(Acts 1985, No. 85-229, p. 96, §28.)*
##### **§ 11-44C-29** Grant of Franchise, Lease, or Right to Use Streets, Etc., by Ordinance or Resolution {#sec-11-44c-29 omnilex-key=us-al-statutes--title-11--11-44C-29}
No resolution or ordinance granting to any person, firm, or corporation any franchise, lease, or right to use the streets, public highways, thoroughfares or public way of said city, either in, under, upon, along, through or over same shall take effect and be enforced until 30 days after the final enactment of same by the council and publication of said resolution or ordinance in full once a week for three consecutive weeks in one or more newspapers of general circulation published in said city or, if no such newspaper exists then by posting notices in three public places, which publication shall be made at the expense of the persons, firm, or corporation applying for said grant. Pending the passage of any such resolution or ordinance or during the time intervening between its final passage, and the expiration of the 30 days during which publication shall be made as above provided, the qualified voters of said city may, by written petition addressed to said council, object to such grant, and if during such period such written petition signed by at least 10 percent of the qualified voters of the city shall be filed with said council, said council shall forthwith order an election, which shall be conducted by the election commission of the city or official charged with the duty of conducting elections therein, at which election the qualified voters of said city shall vote for or against the proposed grant as set forth in the said resolution or ordinance. In the call for said election, the said resolution or ordinance making such grant shall be published at length and in full at the expense of the city in one or more newspapers of general circulation published in said city by one publication, or if no such newspaper exists then by posting said notice in three public places. If a majority of the votes cast at such election shall be against the passage of said resolution or ordinance, then said resolution or ordinance shall not become effective, nor shall it confer any rights, powers, or privileges of any kind; otherwise, said resolution or ordinance and said grant shall thereupon become effective as fully and to the same extent as if said election had not been called or held. If, as the result of said election, said resolution or ordinance shall not become effective, then it shall be the duty of said council, after the results of said election shall be determined, to pass a resolution or ordinance to that effect. No grant of any franchise or lease or right of user, or any other right, in, under, upon, along, through or over the streets, public highways, thoroughfares, or public ways of any such city, shall be made or given, nor shall any such rights of any kind whatever be conferred upon any person, firm, or corporation, except by resolution or ordinance duly passed by the council at some regular or special meeting and published as above provided for in this section; nor shall any extension or enlargement of any such rights or powers previously granted be made or given except in the manner and subject to all the conditions herein provided. It is expressly provided, however, that the provisions of this section shall not apply to the grant of side track or switching privileges to any railroad for the purpose of reaching and affording railway connections, and switch privileges to the owners or users of any industrial plant, store or warehouse; provided, further, that said track or switch shall not extend for a greater distance than 1,320 feet.
*(Acts 1985, No. 85-229, p. 96, §29.)*
##### **§ 11-44C-30** Revision and Codification of Ordinances, Bylaws, and Resolutions; Comprehensive Zone Map {#sec-11-44c-30 omnilex-key=us-al-statutes--title-11--11-44C-30}
The council may provide for the revision and codification of its ordinances, bylaws and permanent resolutions, or for the adoption of a code or codes by ordinance. Such code or codes and the revisions or amendments thereof may relate to the whole system of city bylaws, ordinances and permanent resolutions, or may relate to that portion of such ordinances, bylaws and permanent resolutions which relate to, affect or purport to govern any particular subject of municipal legislation. The council shall have full power and authority to prescribe the manner in which said code or codes, revisions or amendments thereto, shall be made public, whether by proclamation of any officer of said city by posting or by publication, one or all, but it shall not be necessary unless so prescribed by the council for such code or codes, revisions or amendments thereto, to be published in a newspaper or newspapers unless such codes, revisions, or amendments include theretofore unpublished substantial changes, in which case such changes along with at least so much of the context thereof as is necessary to convey the meaning of such changes shall be published in accordance with then existing state law. Nor shall it be necessary that such code or codes, revisions or amendments thereto, be spread at length upon the minutes, but they will be noted in the minutes. The council may prescribe that such code or codes, revisions or amendments thereto may be certified by and filed with the city clerk, or other corresponding officer, in lieu of spreading at length the same on the minutes; and the council may prescribe the manner in which copies of such code or codes, revisions or amendments thereto, may be officially certified for use by the residents or by the courts. The council may adopt and provide for the maintenance in a designated office of the city of a comprehensive zone map of the city open for inspection by the public at all reasonable times, and may make such zone map a part of any ordinance by reference thereto in such ordinance and without publication of such zone map in any newspaper. Such zone map need not be in one piece but may for convenience be in sections. A zone map of territory newly added to the city shall be treated as a comprehensive zone map of the city for purposes of application of the provisions of the preceding sentence. These provisions are subject to the publication and recordation of ordinances as set out in section 11-45-8.
*(Acts 1985, No. 85-229, p. 96, §30.)*
##### **§ 11-44C-31** Monthly Statement of Receipts and Expenses; Annual Examination of Books and Accounts {#sec-11-44c-31 omnilex-key=us-al-statutes--title-11--11-44C-31}
The mayor shall each month print a detailed statement of all receipts and expenses of the city, and shall furnish printed copies thereof to the daily newspapers of the city, other members of the news media of the city, and to persons who apply for copies. At the end of each year, the mayor shall cause a full and complete examination of all the books and accounts of the city to be made by a certified public accountant, or by the state examiners, and shall cause the result of the examination to be published in the same manner as provided above for publication of statements of monthly expenditures. The examination shall not be made more than five years in succession by the same accountant.
*(Acts 1985, No. 85-229, p. 96, §31; Acts 1993, No. 93-301, p. 435, §1; Act 2001-421, p. 537, §1.)*
##### **§ 11-44C-32** Mayor - Filing as Candidate; Qualifying Fee {#sec-11-44c-32 omnilex-key=us-al-statutes--title-11--11-44C-32}
Any person desiring to become a candidate in any election for the office of mayor may become such candidate by filing in the office of the city clerk a statement in writing of such candidacy as required by the general municipal election laws. Said statement shall be accompanied by a qualifying fee in the amount of $500.00, which qualifying fee shall be paid into the general fund of the city.
*(Acts 1985, No. 85-229, p. 96, §32.)*
##### **§ 11-44C-33** Mayor - No Primary Election; Filing of Pauper’s Oath or Petition to Become Candidate {#sec-11-44c-33 omnilex-key=us-al-statutes--title-11--11-44C-33}
No primary election shall be held for the nomination of candidates for the office of mayor, and candidates shall be nominated as herein provided. A person may also become a candidate for the office of mayor by filing a verified pauper’s oath with the city clerk, or by filing a verified petition containing an endorsement of candidacy by the signatures and addresses of 2,000 persons, each of whom is a registered voter residing in the city, provided that no such signature may be obtained more than 12 months immediately preceding the deadline for filing said statements of candidacy.
*(Acts 1985, No. 85-229, p. 96, §33.)*
##### **§ 11-44C-34** Mayor - Qualifications {#sec-11-44c-34 omnilex-key=us-al-statutes--title-11--11-44C-34}
The mayor shall be a qualified elector, and shall have been a resident of the city at least 90 days prior to the election and shall reside within the city during his term of office and shall have attained the age of 25 years.
*(Acts 1985, No. 85-229, p. 96, §34.)*
##### **§ 11-44C-35** Mayor - Compensation {#sec-11-44c-35 omnilex-key=us-al-statutes--title-11--11-44C-35}
The mayor elected hereunder shall receive an annual salary of $65,000.00. Thereafter, the mayor’s salary shall be established as provided in section 11-44C-18, but in no event shall said salary be less than $65,000.00 per annum.
*(Acts 1985, No. 85-229, p. 96, §35.)*
##### **§ 11-44C-36** Mayor - Vacancies; Acting Mayor; Special Election to Fill Vacancy; Term of Office {#sec-11-44c-36 omnilex-key=us-al-statutes--title-11--11-44C-36}
Whenever any vacancy in the office of mayor shall occur by reason of death, resignation, removal, or any other cause, the president of the council shall assume the duties of the office of mayor effective on the date such vacancy occurs and shall serve as acting mayor until a new mayor is elected and qualified as herein provided. The acting mayor shall receive no compensation, expenses, or allowances as a council member while acting as mayor, but he will receive the same rate of pay and allowances provided for the mayor whose vacated office he fills, and the compensation received for days of service as acting mayor shall not be counted in determining the maximum annual per diem compensation permitted council members. While the president of the council is serving as acting mayor he may attend council meetings but may not vote on any matters before the council. The council shall within 10 days of the occurrence of the vacancy in the office of the mayor call a special election to fill such vacancy, such election to be held in accordance with general municipal election laws. The successor to the mayor chosen at any such election shall qualify for office as soon as practicable thereafter, and shall assume the duties, responsibilities and powers of such office immediately upon such qualification, and shall hold office for the unexpired term of his predecessor and until his successor is elected and qualified.
*(Acts 1985, No. 85-229, p. 96, §36.)*
##### **§ 11-44C-37** Mayor - Powers and Duties {#sec-11-44c-37 omnilex-key=us-al-statutes--title-11--11-44C-37}
All executive powers of the city shall be vested in the mayor and the mayor shall be the head of the executive and administrative branches of the city government. He may attend council meetings but may not vote in its proceedings and he shall have the power and duties herein conferred. The mayor shall be responsible for the proper administration of all affairs of the city, and, except as otherwise provided herein, he shall have the power and shall be required to:
(1) Enforce all laws and ordinances,
(2) Appoint and remove, when necessary for the good of the service, all officers and employees of the city except those appointed by the council. Such appointment and removal of personnel are subject to any merit system provisions in effect at such time, except for those officers and employees who are exempted from the merit system by other sections of this chapter,
(3) Appoint the members of the Airport Authority and the Industrial Development Authority. The members of the Airport Authority and Industrial Development Authority shall be subject to confirmation by a vote of five members of the council, and the housing board. The members of the planning commission shall be appointed pursuant to Section 11-52-3,
(4) Exercise administrative supervision and control over all departments created by this chapter or by law or hereafter created by the council, except those otherwise given independent status under this chapter,
(5) Keep the council fully advised as to the financial conditions and needs of the city; prepare and submit the budget annually to the council and be responsible for its administration after its adoption; prepare and submit, as of the end of the fiscal year, a complete report on the financial and administrative activities of the city for such year,
(6) Recommend to the council such actions as he may deem desirable,
(7) Prepare and submit to the council such reports as may be required of him,
(8) Perform such other duties as may be prescribed by this chapter,
(9) Fix the salaries or compensation of all officers and employees of the city who are appointable by the mayor, subject, however, to the provisions of any merit law applicable to the city.
*(Acts 1985, No. 85-229, p. 96, §37.)*
##### **§ 11-44C-38** Divisions of City Government; Executive Directors of Divisions; City Attorney; Outside Counsel {#sec-11-44c-38 omnilex-key=us-al-statutes--title-11--11-44C-38}
(a) There are hereby created three divisions of city government: public works, finance, and public safety. Each division may have an executive director appointed by the mayor with the approval of a vote of five members of the council, who shall be an officer of the city and shall be responsible for the supervision and control of such officer’s jurisdiction. Said executive director shall not be subject to the city merit system and shall serve at the pleasure of the mayor; provided, however, each such officer shall be removed from office only upon recommendation of the mayor and approval of five council members. Upon the first vacancy, of any nature whatsoever, in the office of police chief or fire chief, the mayor may appoint the police chief and fire chief, respectively, from outside the said merit system, with the approval of five members of the council who shall serve at the pleasure of the mayor; provided, however, such officers shall be removed from office only upon recommendation of the mayor with the approval of five council members.
(b) The mayor also is authorized to appoint a city attorney who shall serve at the pleasure of the mayor and shall be compensated in the manner and at a rate approved by the mayor. In addition to the city attorney, the mayor, from time to time in his sole discretion, is authorized to obtain additional legal counsel outside of the city merit system to advise and defend him in his capacity of mayor and in the pursuit of the operation of government.
(c) Upon approval by a majority of those present and voting, the council, from time to time when it deems necessary and reasonable, is authorized to obtain legal counsel outside the city merit system to advise and defend them in their respective capacities as council members and in the pursuit of the operation of government.
*(Acts 1985, No. 85-229, p. 96, §38.)*
##### **§ 11-44C-39** Distribution of Work Among Departmental Divisions {#sec-11-44c-39 omnilex-key=us-al-statutes--title-11--11-44C-39}
The work of each department may be distributed among such divisions thereof as may be established by ordinance upon the recommendation of the mayor. Pending the passage of an ordinance or ordinances distributing the work of departments under the supervision and control of the mayor among specific divisions thereof, the mayor may establish temporary divisions.
*(Acts 1985, No. 85-229, p. 96, §39.)*
##### **§ 11-44C-40** Mayor Authorized to Employ Additional Personnel; Amount Available for Salaries; Not Subject to Merit System {#sec-11-44c-40 omnilex-key=us-al-statutes--title-11--11-44C-40}
The mayor is hereby authorized to employ such additional personnel who shall serve at the pleasure of the mayor, and for such purposes an additional $100,000.00 per annum shall be made available for the salaries of such personnel from the city treasury. Said personnel shall not be subject to the provisions of the merit system. This section shall not limit the authority of said mayor to appoint other employees of said city under the provisions of the merit system or otherwise where authorized by any other law.
*(Acts 1985, No. 85-229, p. 96, §40; Acts 1990, No. 90-657, p. 1274.)*
##### **§ 11-44C-41** Fiscal, Budget, and Accounting Years {#sec-11-44c-41 omnilex-key=us-al-statutes--title-11--11-44C-41}
The fiscal year of the city government shall end on the last day of September of each calendar year. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term “budget year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
*(Acts 1985, No. 85-229, p. 96, §41.)*
##### **§ 11-44C-42** Mayor to Submit Budget to Council {#sec-11-44c-42 omnilex-key=us-al-statutes--title-11--11-44C-42}
On a day to be fixed by the council but in no case later than the twentieth day of August in each year, the mayor shall submit to the council:
(1) A separate current revenue and expense budget for the general operation of the city government, to be known as the “general fund budget”;
(2) A budget for each public utility owned and operated by such city;
(3) A capital budget; and
(4) A budget message.
When submitting the budgets to the council, the mayor shall submit his recommendation of new sources of revenue or manner of increasing existing sources of revenue, sufficient to balance the budgets, if such additional revenue is necessary to accomplish that purpose.
*(Acts 1985, No. 85-229, p. 96, §42.)*
##### **§ 11-44C-43** Estimates of Revenue and Expenditures for Each Department, Etc.; Compilation of Budget Information by Director of Finance; Review and Revision of Estimates {#sec-11-44c-43 omnilex-key=us-al-statutes--title-11--11-44C-43}
It shall be the duty of the head of each department, and each other office or agency supported in whole or in part by the city, to file with the director of finance, at such time as the mayor may prescribe, estimates of revenue and expenditures for that department, office or agency for the ensuing fiscal year. Such estimates shall be submitted on the forms furnished by the director of finance and it shall be the duty of the head of each department, office or agency, to supply all the information which the director of finance may require to be submitted. The director of finance shall assemble and compile these estimates and supply such additional information relating to the financial transactions of the city as may be required by the mayor in the preparation of the budgets. The mayor shall hold such hearings as he may deem advisable and with the assistance of the director of finance shall review the estimates and other data pertinent to the preparation of the budgets and make such revisions in such estimates as he may deem proper, subject to the laws of the state of Alabama and any municipal ordinance relating to obligatory expenditures for any purpose.
*(Acts 1985, No. 85-229, p. 96, §43.)*
##### **§ 11-44C-44** General Fund Budget {#sec-11-44c-44 omnilex-key=us-al-statutes--title-11--11-44C-44}
The general fund budget shall include for each public utility within the city only the net amounts estimated to be received from or to be appropriated to each public utility. The general fund budget shall be prepared in accordance with accepted principles of municipal accounting and budgetary procedures and techniques, and shall show:
(1) Such portion of the general fund cash surplus as it is estimated will exist, at the end of the current fiscal year, and is proposed to be used for meeting expenditures in the general fund budget for the ensuing year;
(2) An estimate of the receipts from current ad valorem taxes on real estate and tangible personal property during the ensuing fiscal year, assuming that the percentage of the levy collected be no greater than the average percentage of the levy collected in the last three completed tax years;
(3) An estimate of receipts from all other sources of revenue, provided that the estimated receipts from each such source shall not exceed the percentage of estimated revenue in the current fiscal year from the same source over the amount of the revenue received from the same source in the last completed fiscal year, unless a law or ordinance under which revenue from any source is derived, has been amended or a new source of revenue has been provided by law or ordinance, in the course of the current year, in which case the estimated receipts from that source may be fixed by the mayor. If additional revenue is to be derived from the state, the amount fixed by the mayor shall not exceed the amount which the proper state official shall certify in writing to be the reasonable expectation of receipts from such source;
(4) A statement to be furnished by the director of finance of the debt service requirements for the ensuing year;
(5) An estimate of the general fund cash deficit, if any, at the end of the current fiscal year and of any other obligations required by law to be budgeted for the ensuing fiscal year;
(6) An estimate of expenditures and appropriations for all other purposes to be met from the general fund in the ensuing fiscal year. All the estimates shall be in detail showing receipts by sources and expenditures by operating units, character and object, so arranged as to show receipts and expenditures as estimated for the current fiscal year and actual receipts and expenditures for the last fiscal year, in comparison with estimated receipts and recommended expenditures for the ensuing fiscal year.
*(Acts 1985, No. 85-229, p. 96, §44.)*
##### **§ 11-44C-45** Recommended Expenditures Not to Exceed Estimated Receipts Unless Additional Revenue Measures Adopted; Recommendations Where Receipts Estimated to Exceed Expenditures; Public Utility Budgets {#sec-11-44c-45 omnilex-key=us-al-statutes--title-11--11-44C-45}
In no event shall the expenditures recommended by the mayor in the general fund budget exceed the receipts estimated, taking into account the estimated cash surplus or deficit at the end of the current fiscal year, as provided in the preceding section hereof, unless the mayor shall recommend an increase in or levy of new or increased taxes or licenses within the power of the city to levy and collect in the ensuing fiscal year, the receipts from which, estimated on the basis of the average experience with the same or similar taxes during the three full tax years last past, will make up the difference. If estimated receipts exceed estimated expenditures, the mayor may recommend revisions in the tax and license ordinances of the city in order to bring the general fund budget into balance. The same balanced budget restrictions shall apply in the adoption of any public utility budget.
*(Acts 1985, No. 85-229, p. 96, §45.)*
##### **§ 11-44C-46** Contents of Budget Message {#sec-11-44c-46 omnilex-key=us-al-statutes--title-11--11-44C-46}
The budget message shall contain the recommendations of the mayor concerning the fiscal policy of the city, a description of the important features of the budget plan, an explanation of all changes in each budget submitted, as to estimated receipts and recommended expenditures as compared with the current fiscal year and the preceding fiscal year, and a summary of the proposed budgets showing comparisons similar to those required herein.
*(Acts 1985, No. 85-229, p. 96, §46.)*
##### **§ 11-44C-47** Printing and Distribution of Budget Message and General Fund, Public Utility and Capital Budgets {#sec-11-44c-47 omnilex-key=us-al-statutes--title-11--11-44C-47}
The mayor shall cause the budget message to be printed, mimeographed or otherwise reproduced for general distribution at the time of its submission to the council and sufficient copies of the proposed general fund, public utility and capital budgets to be made, to supply copies to each member of the council and each newspaper of general circulation published in the city and all other members of the news media in the city, and two copies to be deposited in the office of the city clerk where they shall be open to public inspection during regular business hours.
*(Acts 1985, No. 85-229, p. 96, §47.)*
##### **§ 11-44C-48** Public Hearing on Budget {#sec-11-44c-48 omnilex-key=us-al-statutes--title-11--11-44C-48}
At the meeting of the council at which the budget and budget message are submitted, the council shall determine the place and time of the public hearing on the budget, and shall cause to be published a notice of the place and time, not less than seven days after the date of publication, and the council will hold a public hearing at which any citizen of the city shall be given an opportunity to be heard, for or against the estimates of any item.
*(Acts 1985, No. 85-229, p. 96, §48.)*
##### **§ 11-44C-49** Revision of Budget After Hearing; Increase in Expenditures Over Mayor’s Recommendation; Expenditures Not to Exceed Receipts and Surplus Unless Additional Revenue Measures Adopted {#sec-11-44c-49 omnilex-key=us-al-statutes--title-11--11-44C-49}
After the conclusion of the public hearing the council may insert new items of expenditures or may increase, decrease, or strike out items of expenditure in the general fund budget, except that no item of expenditure for debt service, or any other item required to be included by this chapter or other provision of law, shall be reduced or stricken out. The council shall not alter the estimates of receipts contained in the budget except to correct omissions or mathematical errors, and it shall not cause the total of expenditures as recommended by the mayor to be increased without a public hearing on such increase, which shall be held not less than three days after notice thereof by publication in a newspaper of general circulation published in the city. The council shall in no event adopt a general fund budget in which the total of expenditures exceeds the receipts and available surplus, estimated as herein provided by this chapter unless at the same time it adopts measures to provide for additional revenue in the ensuing fiscal year estimated to be sufficient to make up the difference.
*(Acts 1985, No. 85-229, p. 96, §49.)*
##### **§ 11-44C-50** Summary of Budget {#sec-11-44c-50 omnilex-key=us-al-statutes--title-11--11-44C-50}
At the head of the budget there shall appear a summary of the budget, which need not be itemized further than by principal sources of anticipated revenue, stating separately the amount to be provided by property tax, kinds of expenditures itemized according to departments, doing so in such manner as to present to the taxpayers a simple and clear summary of the detailed estimates of the budget.
*(Acts 1985, No. 85-229, p. 96, §50.)*
##### **§ 11-44C-51** Adoption of General Fund Budget and Any Necessary Revenue Measure; Failure to Adopt Budget {#sec-11-44c-51 omnilex-key=us-al-statutes--title-11--11-44C-51}
Not later than the twentieth day of September of the current fiscal year, the council by a majority vote shall adopt the general fund budget, and such ordinance providing for additional revenue as may be necessary to put the budget in balance, including a two percent reserve. If for any reason the council fails to adopt the general fund budget on or before such day, the general fund budget of the current fiscal year shall be the general fund budget for the ensuing year, until such time as a newly revised budget shall be adopted by the council and, until such time, it shall have full force and effect to the same extent as if the same had been adopted by the council.
*(Acts 1985, No. 85-229, p. 96, §51.)*
##### **§ 11-44C-52** Disapproval by Mayor of Expenditure Line Item; Adherence by Council to Expenditure {#sec-11-44c-52 omnilex-key=us-al-statutes--title-11--11-44C-52}
If the mayor shall disapprove of any expenditure line item contained in the budget transmitted to him by the council, he shall, within 10 days of the time of its passage by the council, return the same to the clerk with his objections in writing, and the clerk shall make report thereof to the next regular meeting of the city council, and if five of the council members shall at the meeting adhere to said expenditure line item by yeas and nays and spread upon the minutes, then said expenditure line item shall become effective.
*(Acts 1985, No. 85-229, p. 96, §52.)*
##### **§ 11-44C-53** Budget Effective Upon Final Adoption; Certification; Printing and Distribution {#sec-11-44c-53 omnilex-key=us-al-statutes--title-11--11-44C-53}
Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be certified by the mayor and the city clerk and filed in the office of the director of finance. The budget so certified shall be printed, mimeographed, or otherwise reproduced and sufficient copies thereof shall be made available for the use of all offices, departments and agencies and for the use of the citizens of the city who request a copy.
*(Acts 1985, No. 85-229, p. 96, §53.)*
##### **§ 11-44C-54** Budget Estimates for Public Utilities; Presentation of Budget to Council {#sec-11-44c-54 omnilex-key=us-al-statutes--title-11--11-44C-54}
Separate budget estimates for any public utility owned and operated by the city shall be submitted to the director of finance at the same time as the budget estimates of other departments, and in the form prescribed by the director of finance. The mayor shall present to the council the budget for the utility operation, itemizing the receipts and expenditures in manner and form as is generally provided for in the general fund budget.
*(Acts 1985, No. 85-229, p. 96, §54.)*
##### **§ 11-44C-55** Submission of Work Program Which Shows Requested Appropriations for Department, Etc.; Revision {#sec-11-44c-55 omnilex-key=us-al-statutes--title-11--11-44C-55}
After the current expense budgets have been adopted and before the beginning of the fiscal year, the head of each department, office, and agency, shall submit to the mayor in such form as the mayor shall prescribe a work program which shall show the requested appropriations for such department, office, or agency for the entire fiscal year by monthly or quarterly periods as the mayor may direct. If at any time during the fiscal year the mayor shall ascertain that the revenue cash receipts of the general fund or any public utility for the year plus any cash surplus available from the preceding year, will be less than the total appropriations to be met from such receipts and the surplus, he or she shall reconsider appropriations of the departments, offices, and agencies, and, subject to the laws of the State of Alabama and any municipal ordinances of the city relating to obligatory expenditures for any purpose, revise the appropriations so as to forestall the incurring of a deficit; provided, however, that there shall be no reduction in salaries except by order of the council, or as authorized by law.
*(Acts 1985, No. 85-229, p. 96, §55; Acts 1993, No. 93-301, p. 435, §1.)*
##### **§ 11-44C-56** Transfer of Unencumbered Balance from One Department, Etc., to Another {#sec-11-44c-56 omnilex-key=us-al-statutes--title-11--11-44C-56}
At the request of the mayor, the council may by resolution transfer any unencumbered balance or portion thereof in any general fund appropriation from one department, office, or agency to another department, office, or agency.
*(Acts 1985, No. 85-229, p. 96, §56; Acts 1993, No. 93-301, p. 435, §1.)*
##### **§ 11-44C-57** Additional Appropriations {#sec-11-44c-57 omnilex-key=us-al-statutes--title-11--11-44C-57}
Appropriations in addition to those contained in the original general fund budget ordinance, may be made by the council by not less than five affirmative votes, but only on the recommendation of the mayor and only if the director of finance certifies in writing that there is available in the general fund an unappropriated sum sufficient to meet such appropriation.
*(Acts 1985, No. 85-229, p. 96, §57.)*
##### **§ 11-44C-58** Emergency Appropriations {#sec-11-44c-58 omnilex-key=us-al-statutes--title-11--11-44C-58}
At any time in any budget year, the council may make emergency appropriations to meet a pressing need for public expenditures, for other than a regular or recurring requirement, to protect the public health, safety, or welfare. Such appropriation may be made by the council by not less than five affirmative votes, but only on the recommendation of the mayor.
*(Acts 1985, No. 85-229, p. 96, §58.)*
##### **§ 11-44C-59** Lapse of Unexpended and Unencumbered Appropriation {#sec-11-44c-59 omnilex-key=us-al-statutes--title-11--11-44C-59}
Any portion of an appropriation remaining unexpended and unencumbered in the general fund at the close of the fiscal year shall lapse.
*(Acts 1985, No. 85-229, p. 96, §59; Acts 1993, No. 93-301, p. 435, §1.)*
##### **§ 11-44C-60** Capital Improvement Program {#sec-11-44c-60 omnilex-key=us-al-statutes--title-11--11-44C-60}
At the same time that he submits the general fund budget, the mayor shall submit to the council a capital improvement program covering all recommended capital improvement projects for the ensuing fiscal year and for the four fiscal years thereafter, with his recommendation as to the means of financing the improvements proposed for the ensuing fiscal year. The council shall have the power to accept with or without amendments or reject the proposed program and proposed means of financing for the ensuing fiscal year; and may from time to time during the fiscal year amend by ordinance adopted by at least five affirmative votes, the program previously adopted by it, or the means of financing the whole or any part thereof, or both, provided that the amendment shall have been recommended by the mayor and further provided such additional funds are available in the general fund or in any other fund of the city.
*(Acts 1985, No. 85-229, p. 96, §60.)*
##### **§ 11-44C-61** Capital Budget; Lapse of Appropriations for Capital Improvement Projects; Reserve Fund for Permanent Public Improvements {#sec-11-44c-61 omnilex-key=us-al-statutes--title-11--11-44C-61}
The council shall adopt a capital budget prior to the beginning of the fiscal year in which the budget is to take effect. No appropriations for a capital improvement project contained in the capital budget shall lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned, provided that any project shall be deemed to have been abandoned if three fiscal years lapse without any expenditure therefor. Any such lapsed appropriation shall be applied to the payment of any indebtedness incurred in financing the project or if there is no such indebtedness, shall be available for other appropriation. The council may by ordinance establish a reserve fund for permanent public improvements and may appropriate thereto any portion of the general fund cash surplus not otherwise appropriated. Appropriations from said fund shall be made only to finance improvements included in the capital budget.
*(Acts 1985, No. 85-229, p. 96, §61.)*
##### **§ 11-44C-62** Payments and Obligations Must Be in Accord with Appropriations; Certification by Director of Finance; Void Payments and Obligations; Penalty for Knowing Violations {#sec-11-44c-62 omnilex-key=us-al-statutes--title-11--11-44C-62}
No payment shall be made and no obligation incurred by or on behalf of the city except in accordance with an appropriation duly made, and no payment shall be made from or obligation incurred against any appropriation unless the director of finance shall first certify that there is a sufficient unexpended and unencumbered balance in such appropriation to meet the same; provided that nothing herein shall be taken to prevent the advance authorization of expenditures for small purchases as provided for by this chapter. Every expenditure or obligation authorized or incurred in violation of the provisions of this chapter shall be void. Every payment made in violation of the provisions of this chapter shall be deemed illegal, and every official who shall knowingly authorize or make such payment or knowingly take part therein and every person who shall knowingly receive the payment or any part thereof shall be jointly and severally liable to the city for the full amount so paid or received. If any officer, member of any board, or employee of the city, shall knowingly incur any obligation or shall knowingly authorize or make any expenditure in violation of the provisions of this chapter or knowingly take part therein, such action shall be cause for his or her removal. Nothing in this section, however, shall prevent the making of contracts of lease or for services providing for the payment of funds at a time beyond the fiscal year in which such contracts are made, provided the nature of such transactions will reasonably require the making of such contracts.
*(Acts 1985, No. 85-229, p. 96, §62; Acts 1993, No. 93-301, p. 435, §1.)*
##### **§ 11-44C-63** Existing Budget Continued in Force {#sec-11-44c-63 omnilex-key=us-al-statutes--title-11--11-44C-63}
Any officially adopted budget in existence at the time that the council is first organized shall continue in force and effect during the balance of the city’s then fiscal year, or until such time as the mayor may submit to the council and the council adopts an amended, altered, or revised budget for the balance of said fiscal year.
*(Acts 1985, No. 85-229, p. 96, §63.)*
##### **§ 11-44C-64** Department of Finance; Director {#sec-11-44c-64 omnilex-key=us-al-statutes--title-11--11-44C-64}
There shall be a department of finance, the head of which shall be the financial officer of the city. The director shall be appointed by the mayor and shall not be subject to the provisions of the merit system.
*(Acts 1985, No. 85-229, p. 96, §64.)*
##### **§ 11-44C-65** Director of Finance - Qualifications; Bond {#sec-11-44c-65 omnilex-key=us-al-statutes--title-11--11-44C-65}
The director of finance shall be a person skilled in municipal accounting, taxation, and financial control. He shall provide a bond with such surety and in such amount as the council may require by resolution or ordinance. The premium on said bond shall be paid by the city.
*(Acts 1985, No. 85-229, p. 96, §65.)*
##### **§ 11-44C-66** Director of Finance - Powers and Duties {#sec-11-44c-66 omnilex-key=us-al-statutes--title-11--11-44C-66}
The director of finance shall have general management and control of the several divisions and units of the department of finance. He or she shall have charge, subject to the direction and control of the mayor, of the administration of the financial affairs of the city, and to that end shall have authority and be required to:
(1) Cooperate with the mayor in compiling estimates for the general fund, public utility, and capital budgets;
(2) Supervise and control all encumbrances, expenditures, and disbursements to insure that budget appropriations are not exceeded;
(3) Prescribe and install systems of accounts for all departments, offices, and agencies of the city and provide instructions for their use; and prescribe the form of receipts, vouchers, bills, or claims to be used and of accounts to be kept by all departments, offices, and agencies of the city;
(4) Require daily, or at such other intervals, a report of receipts from each of such departments, offices, and agencies, and prescribe the time and the manner in which moneys received by them shall be paid to the office of the director of finance or deposited in a city bank account under his or her control;
(5) Examine all contracts, purchase orders, and other documents, except bonds and notes which create financial obligations against the city, and approve the same only upon ascertaining that money has been appropriated therefor and that an unexpended and unencumbered balance is available in such appropriation to meet the same. Each such purchase order shall be charged against such authorization and no such purchase order, which together with all such purchase orders previously charged shall exceed the amount of such authorization;
(6) Have custody of all funds under the control of the city, or any office, department, or agency and deposit all funds coming into his or her hands in such depositories as may be designated by resolution or ordinance of the council, or, if no such resolution or ordinance be adopted, by the mayor, subject to the requirements of law as to surety and the payment of interest on deposits. All such interest shall be the property of the city and shall be accounted for and credited to the proper account. The director of finance shall not be liable for any loss sustained as to funds of the city that are on deposit in such a designated bank or depository;
(7) Audit and approve before payment all bills, invoices, payrolls, and other evidences of claims, demands, or charges against the city government and with the advice of the department of law, determine the regularity, legality, and correctness of such claims, demands, or charges;
(8) Have custody of all invested funds of the city unless otherwise provided by this chapter, or by law, ordinance, or the terms of any trust, and be responsible for the safekeeping of all bonds and notes of the city and for the receipt and delivery of city bonds and notes for transfer, registration, and exchange;
(9) Have supervision over the preparation of bonds, including advertisements for their sale, preparation of bond prospectuses, conduct of their sale, and their delivery subject to applicable provisions of law and municipal ordinances. Bonds shall be authenticated by the manual signature of the director of finance and shall bear the facsimile signature of the mayor and a facsimile of the seal of the city. Interest coupons transferable by delivery shall be attached to the bond and shall be authenticated by the facsimile signature of the director of finance;
(10) Supervise and direct the placing of all types of insurance carried by the city where the premiums in whole or in part are paid by the city, or the premiums in whole or in part are withheld through the payrolls; the amount of all types of insurance on which the city pays the premiums in whole or in part shall be determined by the council after a recommendation by the mayor;
(11) Submit to the mayor for presentation to the council not later than the twelfth day of each month, a statement showing in reasonable detail the revenues received by the city during the preceding month, the revenues received during that fiscal year up to and through the end of the preceding month, the expenditures made during the preceding month, and the accumulated expenditures made during that fiscal year up to and through the end of the preceding month, together with a comparison of the items with the budget estimates;
(12) Furnish to the head of each department, office, or agency of the city a copy of that portion of the statement herein provided, as it relates to the department, office, or agency;
(13) Prepare and submit to the mayor at the end of each fiscal year, for the preceding year, a complete financial statement and report of the financial transactions of the city;
(14) Designate, with the approval of the mayor, and subject to the provisions of the merit system, an employee of the department of finance who, during the temporary absence or incapacity of the director, shall have and perform all the powers and duties conferred or imposed upon the director;
(15) Protect the interests of the city by withholding the payment of any claim or demand by any person, firm, or corporation against the city until any indebtedness or other liability due from such person, firm, or corporation shall first have been settled and adjusted;
(16) Collect all special assessments, license fees, and other revenues of the city and collect all money receivable from the county, state, or federal government, or from any court, or from any office, department, or agency of the city;
(17) Inspect and audit, with approval of the mayor, records of financial transactions which may be maintained in any office, department, or agency of the city government apart from, or subsidiary to, the accounts kept in the office of the director of finance;
(18) Supervise, through the division of purchases, the purchase, storage, and distribution of all supplies, materials, equipment, and other articles used by any office, department, or agency of the city government.
*(Acts 1985, No. 85-229, p. 96, §66; Acts 1993, No. 93-301, p. 435, §1.)*
##### **§ 11-44C-67** Expenditures Not to Exceed Appropriation for That General Classification of Expenditure; Expenditures Financed by Bonds; Leases or Contracts for Period Exceeding Budget Year {#sec-11-44c-67 omnilex-key=us-al-statutes--title-11--11-44C-67}
No officer, department, or agency shall, during any budget year, expend or contract to expend any money or incur any liability, for any purpose in excess of the amounts appropriated for that general classification of expenditure pursuant to this chapter. Any contract, verbal or written, made in violation of this chapter shall be null and void. Nothing in this section, however shall prevent the making of contracts or the spending of money for capital improvements to be financed in whole or in part by the issuance of bonds, nor the making of leases or contracts for services for a period exceeding the budget year in which such lease or contract is made, when such contract is permitted by law.
*(Acts 1985, No. 85-229, p. 96, §67.)*
##### **§ 11-44C-68** Disposition of Fees Received by Officers and Employees {#sec-11-44c-68 omnilex-key=us-al-statutes--title-11--11-44C-68}
All fees received by any officer or employee of the city shall belong to the city government and shall be paid daily to the department of finance.
*(Acts 1985, No. 85-229, p. 96, §68.)*
##### **§ 11-44C-69** Division of Department of Finance to Be Responsible for Purchases; Powers and Duties of Division Head {#sec-11-44c-69 omnilex-key=us-al-statutes--title-11--11-44C-69}
There shall be established in the department of finance a division responsible for purchases, the head of which shall be the city purchasing agent. Such division head, pursuant to rules and regulations established by resolution or ordinance, shall contract for, purchase, store, and distribute all supplies, materials and equipment required by any office, department or agency. The city purchasing agent shall also have power and shall be required to:
(1) Establish and enforce specifications with respect to supplies, materials, and equipment required by the city government;
(2) Inspect or supervise the inspection of all deliveries of supplies, materials and equipment, and determine their quality, quantity, and conformance with specifications;
(3) Have charge of such general storerooms and warehouses as the council may provide by resolution or ordinance;
(4) Transfer to or between offices, departments, or agencies, or sell surplus, obsolete, or unused supplies, material and equipment;
(5) Perform such other duties as may be imposed by resolution or ordinance.
*(Acts 1985, No. 85-229, p. 96, §69.)*
##### **§ 11-44C-70** Competitive Bidding on Contracts for Supplies, Materials, or Equipment {#sec-11-44c-70 omnilex-key=us-al-statutes--title-11--11-44C-70}
Before the purchasing agent makes any purchase of or contract for supplies, materials, or equipment he shall give ample opportunity for competitive bidding, under such rules and regulations as the council may prescribe by resolution or ordinance; provided, however, the council shall not exempt individual contracts, purchases, or sales from the requirement of competitive bidding.
*(Acts 1985, No. 85-229, p. 96, §70.)*
##### **§ 11-44C-71** City Improvements Costing More Than $2,000.00 to Be Executed by Contract; Bidding on Contract; Alteration of Contract {#sec-11-44c-71 omnilex-key=us-al-statutes--title-11--11-44C-71}
Any city improvement costing more than $2,000.00 shall be executed by contract except where such improvement is authorized by the council to be executed directly by a city department in conformity with detailed plans, specifications and estimates. All such contracts for more than $2,000.00 shall be awarded to the lowest responsible bidder after such public notice and competition as may be prescribed by resolution or ordinance; provided, however, the mayor shall have the power to reject all bids and advertise again. Alteration in any contract may be made when authorized by the council upon the written recommendation of the mayor. Nothing in this chapter shall be construed to supersede or nullify provisions of state law requiring or governing competitive bidding.
*(Acts 1985, No. 85-229, p. 96, §71.)*
##### **§ 11-44C-72** Purchases and Contracts Shall Be Pursuant to Written Requisition; Certification of Balance Sufficient to Pay for Contract or Order {#sec-11-44c-72 omnilex-key=us-al-statutes--title-11--11-44C-72}
All purchases made and contracts executed by the purchasing agent shall be pursuant to a written requisition from the head of the office, department or agency whose appropriation will be charged, and no contract or order shall be issued to any vendor unless and until the director of finance certifies that there is a sufficient unencumbered appropriation balance to pay for the supplies, materials, equipment or contractual service for which the contract or order is to be issued.
*(Acts 1985, No. 85-229, p. 96, §72.)*
##### **§ 11-44C-73** Revenue Notes {#sec-11-44c-73 omnilex-key=us-al-statutes--title-11--11-44C-73}
In any budget year, in anticipation of the collection of revenues, the council may by resolution authorize the borrowing of money by the issuance of negotiable notes of the city, each of which shall be designated “revenue note for the year _____ (stating the budget year).” Such notes may be renewed from time to time, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year after the budget year in which the original notes have been issued. Such borrowing shall be subject to any limitation provided by law.
*(Acts 1985, No. 85-229, p. 96, §73.)*
##### **§ 11-44C-74** Emergency Notes {#sec-11-44c-74 omnilex-key=us-al-statutes--title-11--11-44C-74}
In the absence of available revenues to meet emergency appropriations under the provisions of this chapter, the council may by resolution authorize the issuance of notes, each of which shall be designated “emergency note” and may be renewed from time to time, but all such notes and renewals shall be paid not later than the last day of the fiscal year next succeeding the budget year in which the emergency appropriation was made.
*(Acts 1985, No. 85-229, p. 96, §74.)*
##### **§ 11-44C-75** Notes Not Payable on Demand; Redemption Prior to Maturity; Private Sale {#sec-11-44c-75 omnilex-key=us-al-statutes--title-11--11-44C-75}
No notes shall be made payable on demand, but any note may be made subject to redemption prior to maturity upon notice and at such time as may be stated in the note. All notes may be sold at not less than par and accrue interest at private sale without previous advertisement.
*(Acts 1985, No. 85-229, p. 96, §75.)*
##### **§ 11-44C-76** Existing Rights and Privileges of Officers and Employees; Existing Laws Not Inconsistent with Personnel, Etc., Provisions of Chapter {#sec-11-44c-76 omnilex-key=us-al-statutes--title-11--11-44C-76}
Nothing contained in the provisions of this chapter shall affect or impair the rights or privileges of officers or employees of the city or of any office, department, or agency existing at the time when this chapter shall take effect or any provision of law in force at the time when the mayor-council form of government shall become applicable and not inconsistent with the provisions of this chapter in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension, and retirement rights, civil rights or any other rights or privileges of officers or employees of the city or any office, department or agency thereof, and as provided by the city’s merit system.
*(Acts 1985, No. 85-229, p. 96, §76.)*
##### **§ 11-44C-77** Personnel Holding Administrative Office Continued in Office; Transfer of Powers and Duties of Office, Etc., Abolished by This Chapter {#sec-11-44c-77 omnilex-key=us-al-statutes--title-11--11-44C-77}
All personnel, except those specifically designated by the provisions of this chapter as removable at the discretion of the mayor, holding administrative office at the time the mayor-council form of government becomes effective shall continue in office and in the performance of their duties until other provisions have been made by law for the performance of such duties or the discontinuance of such office. If any office, department or agency of the city shall be abolished by this chapter, the powers conferred and the duties imposed upon such units by the laws of the state shall thereafter be exercised and discharged by the office, department or agency designated by the council.
*(Acts 1985, No. 85-229, p. 96, §77.)*
##### **§ 11-44C-78** Transfer of Records, Property, and Equipment of Office, Etc., Where Powers and Duties Reassigned {#sec-11-44c-78 omnilex-key=us-al-statutes--title-11--11-44C-78}
All records, property, and equipment of any office, department or agency, whose power and duties are assigned to any other office, department, or agency by the provisions of this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency are assigned to another office, department, or agency, all records, property and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1985, No. 85-229, p. 96, §78.)*
##### **§ 11-44C-79** Office, Etc., with Name or Powers and Duties the Same or Substantially Same as Existing Office Deemed a Continuation of Such Office {#sec-11-44c-79 omnilex-key=us-al-statutes--title-11--11-44C-79}
Any office, department, or agency provided for by this chapter with a name or with powers and duties the same or substantially the same as those of any such office, department or agency heretofore existing, shall be deemed to be a continuation of such office, department, or agency, and shall continue to exercise its powers and duties until otherwise provided, and shall have power to continue any business, proceeding or other matter within the scope of its regular powers and duties. Any provision in any law, rule, regulation, contract, grant, or other document relating to such a formerly existing office, department, or agency shall, so far as not inconsistent with the provisions of this chapter, apply to such office, department, or agency.
*(Acts 1985, No. 85-229, p. 96, §79.)*
##### **§ 11-44C-80** Existing Contracts Continued in Force; Public Improvements for Which Legislative Steps Taken {#sec-11-44c-80 omnilex-key=us-al-statutes--title-11--11-44C-80}
All contracts entered into by the city, or for its benefit, prior to the application to such city of the mayor-council form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the organization under the mayor-council form of government may be carried to completion as nearly as practicable in accordance with the provisions of such existing laws.
*(Acts 1985, No. 85-229, p. 96, §80.)*
##### **§ 11-44C-81** Pending Legal Actions and Proceedings {#sec-11-44c-81 omnilex-key=us-al-statutes--title-11--11-44C-81}
No action or proceeding, civil or criminal, pending at the time of the organization under the mayor-council form of government, brought by or against the city or any office, department, or agency or officer thereof, shall be affected or abated by the change to the mayor-council form of government or by anything contained in this chapter; but all such actions or proceedings may be continued notwithstanding that functions, powers, and duties of any office, department, or agency or officer party thereto may by or under this chapter be assigned or transferred to another office, department, or agency or officer, but in that event, the same may be prosecuted or defended by the head of the office, department, or agency to which such functions, powers, and duties have been assigned or transferred by or under the provisions of this chapter.
*(Acts 1985, No. 85-229, p. 96, §81.)*
##### **§ 11-44C-82** Laws Relating to Pensions or Retirement and Relief Funds Continued in Force {#sec-11-44c-82 omnilex-key=us-al-statutes--title-11--11-44C-82}
All laws and parts of laws relating to pensions or retirement and relief funds for policemen, firemen, and other employees of the city, contained in the general or local laws of the state as the same may apply and be in effect with respect to any such city at the time when such city shall become governed by the provisions of this chapter, shall continue in full force and effect, and without interruption.
*(Acts 1985, No. 85-229, p. 96, §82.)*
##### **§ 11-44C-83** Laws Relating to Authority for Fairgrounds, Etc., Continued in Force {#sec-11-44c-83 omnilex-key=us-al-statutes--title-11--11-44C-83}
All laws and parts of laws relating to establishment or financing of an authority for fairgrounds, parks, exhibitions, and other facilities for the amusement, recreation, and cultural development of the citizens of the city, contained in the general or local laws of the state, as the same may apply and be in effect with respect to any such city at the time when such city shall become organized under the provisions of this chapter, shall continue in full force and effect and without interruption or change until otherwise provided by law.
*(Acts 1985, No. 85-229, p. 96, §83.)*
##### **§ 11-44C-84** Ordinances and Resolutions Continued in Effect {#sec-11-44c-84 omnilex-key=us-al-statutes--title-11--11-44C-84}
All ordinances and resolutions of the city in effect at the time the form of government herein provided for becomes effective shall continue in effect unless and until changed or repealed by the council.
*(Acts 1985, No. 85-229, p. 96, §84.)*
##### **§ 11-44C-85** Removal of Merit System Officers and Employees; Appeal of Decision {#sec-11-44c-85 omnilex-key=us-al-statutes--title-11--11-44C-85}
Any merit system officer or employee to whom the mayor, or a head of any office, department, or agency, may appoint a successor, may be removed by the mayor or other appointing officer at any time, and the decision of the mayor, or other appointing officer, shall be subject to appeals provided by law.
*(Acts 1985, No. 85-229, p. 96, §85.)*
##### **§ 11-44C-86** Participation in Meetings of Council by Mayor, Department Heads, Etc {#sec-11-44c-86 omnilex-key=us-al-statutes--title-11--11-44C-86}
The mayor, the heads of all departments, and such other officers of the city as may be designated by the council, shall be entitled to attend meetings of the council, but shall have no vote therein. The mayor shall have the right to take part in the discussion of all matters coming before the council, and the directors and other officers shall be entitled to take part in all discussions of the council relating to their respective offices, departments, or agencies.
*(Acts 1985, No. 85-229, p. 96, §86.)*
##### **§ 11-44C-87** Inquiry into Conduct of Office, Department, Agency, or Officer; Investigations as to Municipal Affairs; Subpoena Power {#sec-11-44c-87 omnilex-key=us-al-statutes--title-11--11-44C-87}
The council, or the mayor, shall have power to inquire into the conduct of any office, department, agency, or officer of the city and to make investigations as to municipal affairs, and for that purpose may subpoena witnesses, administer oaths, and compel the production of books, papers, and other evidence. Failure to obey such subpoena or to produce books, papers, or other evidence as ordered under the provisions of this section shall constitute a misdemeanor and shall be punishable by a fine not to exceed $200.00 or by imprisonment not to exceed 30 days, or both.
*(Acts 1985, No. 85-229, p. 96, §87.)*
##### **§ 11-44C-88** Interest of Official or Employee in Contracts with City or Public Utility Prohibited; Acceptance of Gifts, Etc.; Free Transportation of Officials, Policemen, and Firemen in Discharge of Duties {#sec-11-44c-88 omnilex-key=us-al-statutes--title-11--11-44C-88}
No elected official or city employee shall be interested, directly or indirectly, in any contract for work or material, or the profits thereof, or services to be furnished or performed for the city, nor shall he be interested, directly or indirectly, in any contract for work or material, or the profits thereof, or services to be furnished or performed for any person, firm, or corporation operating interurban railway, street railway, water works, gas works, electric light or power plant, heating plant, telegraph line or telephone exchange within the territorial limits of said city, nor shall he accept any free pass, free ticket, or free service from said corporations or utilities or accept any gift or other thing of value, or any service upon terms more favorable than are granted to the public generally. Any violation of the provisions of this section shall be a misdemeanor and, upon conviction thereof, the guilty person shall be punished by a fine of not less than $100.00 nor more than $300.00, be imprisoned in the county jail for not more than 90 days, and every such contract or agreement shall be void. Such prohibition of free transportation shall not apply to policemen or firemen in uniform nor to policemen in the discharge of their duty nor shall service to city officials in their official capacity heretofore provided by any franchise or ordinance be affected by this section.
*(Acts 1985, No. 85-229, p. 96, §88.)*
##### **§ 11-44C-89** Oath Taken by City Officers {#sec-11-44c-89 omnilex-key=us-al-statutes--title-11--11-44C-89}
Every officer of the city shall, before entering upon the duties of his office, take and subscribe to an oath or affirmation as provided by law, to be filed and kept in the office of the city clerk.
*(Acts 1985, No. 85-229, p. 96, §89.)*
##### **§ 11-44C-90** Reapportionment of Council Districts Because of Population Change {#sec-11-44c-90 omnilex-key=us-al-statutes--title-11--11-44C-90}
Whenever there shall be a change in the population in any of the seven districts heretofore established following a decennial federal census beginning in 1990, there shall be a reapportionment of the council districts in the following manner:
(1) The mayor shall within six months after the publication of the 1990 federal census, and each decennial federal census thereafter, file with the council a report containing a recommended plan for the reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous, and to the extent reasonably possible, compact territory, and its boundary lines shall be the centerlines of streets or other well-defined boundaries.
b. Each district shall contain as nearly as is reasonable the same population.
The report shall include a map and description of the districts recommended and shall be drafted as a proposed ordinance and considered by the council as other ordinances are considered. Once filed with the clerk, the report shall be treated as an ordinance introduced by a council member.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment by the council, as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall apply to the first regular election held more than six months after its becoming effective and to all municipal elections, regular or special, held after the first regular election. No incumbent council member shall be deprived of his or her unexpired term of office because of such redistricting.
*(Acts 1985, No. 85-229, p. 96, §90.)*
##### **§ 11-44C-91** Procedure for Changing Form of Government; Change from Mayor-Council Form Prohibited for Two Years {#sec-11-44c-91 omnilex-key=us-al-statutes--title-11--11-44C-91}
The city is prohibited from changing from the mayor-council form of government within two years after the adoption thereof. At the end of such period, or at any time thereafter, the city’s form of government may be amended or changed when:
(1) A written petition executed by 10 percent of the number of those who voted in the last city election is submitted to the council with the proposed changes or amendments incorporated in the petition; after presentation of the petition, the council shall call for a referendum vote on the proposed changes and amendments, and
(2) A majority of the votes cast in the referendum is in favor of the proposed changes or amendments. After the council receives the proposed changes and petition, it shall call a special election for the purpose of determining whether the city shall adopt the changes or amendments. Notice shall be given of the time and purpose of such election by publication once each week for four consecutive weeks in a newspaper published in said city prior to the referendum vote. All qualified electors of such city may participate in the election and such questions shall be plainly printed upon the ballot. The referendum shall be conducted, the expenses paid, the votes canvassed and the results declared in the same manner as is provided by law in other city elections.
*(Acts 1985, No. 85-229, p. 96, §91.)*
##### **§ 11-44C-92** Commission Form of Government {#sec-11-44c-92 omnilex-key=us-al-statutes--title-11--11-44C-92}
If a majority of the qualified electors voting in the election provided herein choose the court ordered districted commission form of government in accordance with the consent decree entered into by the parties and approved by the court on April 7, 1983, in the case of Bolden vs.City of Mobile, Civil Action No. 75-297, then the provisions of said court ordered districted commission form shall be applicable to said city.
The three commissioners elected under said court ordered plan from single member districts shall sit as a board and shall possess and exercise all municipal powers, legislative, executive, and judicial, possessed and exercised by city governing bodies as provided by sections 11-44-70 through 11-44-105, as amended, and other applicable laws, except that all functions, responsibilities and operations of the city shall be under the direction and supervision of the board of commissioners as a whole. All three commissioners shall be jointly and equally responsible for all departments, boards and commissions and the discharge of all other administrative duties provided by the applicable state law or this decree. Every department head shall be responsible to the commission as a whole, provided however, that the powers, functions, duties, and rotation of the mayor’s office among the three commissioners shall remain in effect as prescribed by existing state law. No later than 30 days following the date the commissioners take office under the court ordered plan, the city commission shall appoint a city administrator. The city administrator shall serve as the chief administrative officer of the city and oversee the administration of the financial and budgeting, purchasing, planning, recreational and cultural, public works and public safety functions of the government of the city. The city administrator shall be charged with the responsibility of carrying out the policies and objectives established by the board of city commissioners and the coordination of activities of the city government, and shall have wide latitude in accomplishing the daily solution of municipal problems, including the establishment of effective relationships with other governmental bodies and agencies, and the general public. The person holding this position shall have general administrative direction over all departments and employees of the city, provided, that the final executive and administrative authority shall remain with the city commission. Without limitation by the foregoing, the city administrator shall discharge other duties and responsibilities at the direction of the board of commissioners. The compensation to be paid the city administrator shall be set by the city commissioners. The city administrator shall serve at the pleasure of the city commissioners.
The city commission elected pursuant to this court ordered plan shall have the rights, duties, powers, and responsibilities provided by applicable state law except to the extent that such state law provisions conflict with the provisions of this order. If such conflicts arise, the city commission may by resolution or ordinance determine how such conflicts should be resolved; provided, however, that upon the motion of any of the parties, or upon its own motion, the United States district court may reverse or modify the determinations of conflicts by the city commission.
*(Acts 1985, No. 85-229, p. 96, §92.)*
##### **§ 11-44C-93** Provisions Applicable Regardless of Form of Government Chosen {#sec-11-44c-93 omnilex-key=us-al-statutes--title-11--11-44C-93}
It is the legislative intent of this bill that the following provisions shall apply regardless of which form of government the majority of the qualified electors voting in the election provided herein choose:
(1) Within 30 days of taking office, the officials of the form of government chosen shall adopt an ordinance to provide that all appointments made by the mayor, council or city commission to positions in city government, boards, commissions, agencies, authorities, or any other organization or entity of the city or to any positions to which said officials make appointments, shall fairly and equitably reflect the makeup of the total community with due consideration given to all demographic characteristics of the population.
(2) Within 30 days of taking office, the officials of the form of government chosen shall adopt an ordinance to provide that all contracts or agreements entered into by the city or any entity thereof for any service of any kind, whether by bid or otherwise, including but not limited to, professional services and bond issues, shall make every reasonable effort to require that the contractor, firm, or company to which any contract is awarded, must have at least 15 percent participation by socially and economically disadvantaged individuals or the city shall make every reasonable effort to insure that at least 15 percent of the total value of all such contracts and agreements described above shall be awarded to qualified contractors or professionals who are socially and economically disadvantaged.
(3) Within 30 days of taking office, the officials of the form of government chosen shall adopt an ordinance to require that all capital improvements and repairs made in the city shall be made on the basis of need and shall, as nearly as practicable, be fairly and equitably made in all districts of the city whether they be council or commission districts.
(4) The officials of the form of government chosen shall demonstrate their commitment to the poor and needy in this city by annually allocating in the city budget an amount of funds to be approved by the council or commission, to agencies, organizations, and programs serving the poor and needy in a manner and amount to be determined by the council or commission.
*(Acts 1985, No. 85-229, p. 96, §93.)*
##### **§ 11-44C-94** Materials or Supplies Becoming Component Parts in Repair, Etc., of Certain Aircraft {#sec-11-44c-94 omnilex-key=us-al-statutes--title-11--11-44C-94}
(a) In Class 2 municipalities, the gross proceeds from the sale or sales of materials or supplies to any person for the use in fulfilling a contract for the painting, repair, conversion, modification, or reconditioning of aircraft of 30,000 pounds gross weight or greater shall be exempt from municipal sales and use tax. Notwithstanding the foregoing, the exemption provided in this section shall only apply to those materials and supplies which enter into and become a component part of those aircraft.
(b) The exemption provided in this section shall be applicable to all sales occurring on and after October 1, 2003.
*(Act 2004-112, p. 180, §§1, 2.)*
##### **§ 11-44C-94.1** Exemption Reiterated for Materials or Supplies Becoming Component Parts in Repair, Etc., of Certain Aircraft {#sec-11-44c-94.1 omnilex-key=us-al-statutes--title-11--11-44C-94.1}
In Class 2 municipalities, the gross proceeds of the sale or sales of materials or supplies to any person for the use in fulfilling a contract for the painting, repair, conversion, modification, or reconditioning of aircraft of 30,000 pounds gross weight or greater shall be exempt from county sales and use tax; provided, however, that the exemption herein shall only apply to those materials and supplies which enter into and become a component part of such aircraft.
*(Act 2005-74, p. 110, §1.)*
##### **§ 11-44C-95** Tax Exemption for the Centre for the Living Arts, Inc {#sec-11-44c-95 omnilex-key=us-al-statutes--title-11--11-44C-95}
In Class 2 municipalities, the Centre for the Living Arts, Inc., shall be exempt from all municipal ad valorem and sales and use tax.
*(Act 2004-507, p. 984, §1.)*
##### **§ 11-44C-96** Tax Exemption for Bayfest, Inc {#sec-11-44c-96 omnilex-key=us-al-statutes--title-11--11-44C-96}
In Class 2 municipalities, BayFest, Incorporated, is exempt from the payment of all municipal sales and use taxes and gross receipts taxes. This exemption from all municipal sales and use taxes and gross receipts taxes shall be retroactive to October 1, 1999.
*(Act 2006-389, p. 990, §1.)*
##### **§ 11-44C-97** Water and Sewer System Boards - Composition {#sec-11-44c-97 omnilex-key=us-al-statutes--title-11--11-44C-97}
In any Class 2 municipality, any law to the contrary notwithstanding, the number of members on a water and sewer system board organized under state law whose members are appointed by the governing body of the Class 2 municipality shall be the same as the number of members on the governing body of the Class 2 municipality.
*(Act 2008-85, p. 111, §1.)*
##### **§ 11-44C-98** Board of Adjustment {#sec-11-44c-98 omnilex-key=us-al-statutes--title-11--11-44C-98}
(a) In any Class 2 municipality, any law to the contrary notwithstanding, the number of members on a board of adjustment provided for in Section 11-52-80, whose members are appointed by the governing body of the Class 2 municipality shall be the same as the number of members of the governing body of the Class 2 municipality.
(b) In exercising the powers in subsection (d) of Section 11-52-80, the board may reverse, affirm, or modify the order, requirement, decision, or determination appealed from and may enter the appropriate order, requirement, decision, or determination and, to that end, shall have all the powers of the officer from whom the appeal is taken. The concurring vote of five members of the board shall be necessary to reverse any order, requirement, decision, or determination of an administrative official or to decide in favor of the applicant on a matter upon which the board is required to pass under any ordinance or to effect any variation in the ordinance.
*(Act 2013-253, p. 660, §1.)*
### **Chapter 44D** Abandonment of Commission Form of Government in Class 6 Municipalities
##### **§ 11-44D-1** Ordinance Abandoning Commission Form of Government and Referendum Adopting Mayor-Council or Manager-Council Form {#sec-11-44d-1 omnilex-key=us-al-statutes--title-11--11-44D-1}
Within three months of the adoption and approval of this chapter, the governing body of any Class 6 municipality with a commission form of government may by a majority vote of the members of that governing body adopt an ordinance abandoning the commission form of government and calling for a referendum to be held at public expense within 60 days after such call for the purpose of determining whether such city shall adopt the mayor-council form of government, authorized by this chapter, or in the alternative the manager-council form of government authorized by this chapter. The mayor or chief executive officer shall give notice of the time and purpose of such referendum election by publication once a week for two consecutive weeks in a newspaper of general circulation in the municipality, or, if there is no such newspaper of general circulation in the municipality, by posting notice thereof in three public places within the municipality. All qualified electors of the city may participate in said election, as provided by this chapter, and the questions shall be plainly printed upon the ballot as provided in Section 11-44D-2. The proposal for which the majority of votes cast shall be “yes,” or in favor of such proposition shall thereby be adopted for such city, and the mayor or other chief executive officer shall transmit to the Governor, to the Secretary of State, and to the judge of probate of the county, a certificate stating that such proposition was adopted for such city.
*(Acts 1986, No. 86-195, p. 240, §1.)*
##### **§ 11-44D-2** Form of Referendum Ballot; Use of Voting Machines {#sec-11-44d-2 omnilex-key=us-al-statutes--title-11--11-44D-2}
At such election the proposition to be submitted shall be printed in plain prominent type on ballots separate and distinct from ballots used for any other office or question and shall read as follows:
Check only one of the following:
(1) Shall the mayor-council form of government, as provided by Act _____, be adopted for the City of _____?
YES _____; or
(2) Shall the council-manager form of government, as provided by Act _____, be adopted for the City of _____?
YES _____.
The voter shall mark his ballot with a cross mark (X) after the proposition which expresses his choice. If voting machines are used at any voting place in such election, the above proposition may at the discretion of the body or official having charge of the conduct of municipal elections in such city, be submitted as a separate proposition on voting machines so used.
*(Acts 1986, No. 86-195, p. 240, §2.)*
##### **§ 11-44D-3** Conduct of Referendum; Election Results Determine Which Provisions of Chapter Applicable; Election Expenses {#sec-11-44d-3 omnilex-key=us-al-statutes--title-11--11-44D-3}
The referendum shall be held and conducted in accordance with the provisions of this title, except as herein otherwise specifically provided. If the majority of votes shall be in favor of the mayor-council form of government, then only the applicable provisions of this chapter shall thereby be adopted for such city; if the majority of the votes shall be in favor of the council-manager form of government, then only the applicable provisions of this chapter shall thereby be adopted for such city. The expenses of any and all elections provided for in this chapter shall be paid by the city.
*(Acts 1986, No. 86-195, p. 240, §3.)*
##### **§ 11-44D-4** Mayor-Council Form of Government {#sec-11-44d-4 omnilex-key=us-al-statutes--title-11--11-44D-4}
If a majority of the qualified electors voting in the referendum provided herein choose a mayor-council form of government, the following provisions of this chapter shall be applicable:
(1) The municipality shall thereafter and as provided in this chapter be governed by a mayor elected at-large and a five-member council elected from single-member districts, which municipality shall have the same powers and duties as herein enumerated and as other mayor-council municipalities organized under Chapter 43, Title 11, and any other powers and duties not inconsistent with this chapter which may be now or hereafter granted to such municipality.
(2) The council shall include five members who shall be elected from districts, which shall be, as near as practicable, of equal population according to the last federal decennial census, but not more than five percent, more or less, than the average of the five districts.
(3) The council members shall be qualified electors of the city, shall have been residents of the district which they represent for at least 90 days prior to the time of filing their statement of candidacy and shall reside in their district during their term of office. If any councilman shall remove from within the limits of his district, his office shall become vacant.
(4) All legislative powers of the city, including all powers vested in it by this chapter, by the laws, general and local, of the state, and by the Code of Alabama 1975, as amended, and the determination of all matters of legislative policy shall be vested in the council. Without limitation of the foregoing, the council shall have power to:
a. Establish administrative departments and distribute the work of divisions,
b. Adopt the budget of the city,
c. Authorize the issuance of bonds, warrants, or other securities,
d. Inquire into the conduct of any office, department, or agency of the city and make investigations as to municipal affairs,
e. Appoint those members of municipal boards which are subject to appointment by the council of other mayor-council municipalities organized under Chapter 43, Title 11,
f. Succeed to all the powers, rights, and privileges conferred upon the former governing body of the city by statutes in effect at the time of adoption by the city of the mayor-council form of government and not in conflict with this chapter,
g. Levy property, sales, use, excise, franchise, and license taxes and local improvements assessments.
(5) The council, by majority vote of the whole qualified membership of the council, shall elect one of its own members to serve as president of the council. The council president shall preside at all meetings of the council and shall have the right to vote on all questions the same as any other member of the council.
In case of the absence of the mayor, or his inability to serve on account of sickness, temporary disability, or other good reason, the council president shall act as mayor pro tempore with the power and authority of the mayor during such time. While the president of the council is serving as mayor pro tempore, he shall receive no additional compensation, and may vote on any matters before council. In the event of a failure or refusal of the president of the council to act as mayor pro tempore, the council may appoint one of its members to act as mayor pro tempore with like effect, which appointment shall be entered in the minutes of council.
In the event of a vacancy in the office of president of the council, the office shall be filled by majority vote of those members of the council voting.
(6) The council, by majority vote of the whole qualified membership of the council, shall elect one of its own members to serve as president pro tempore of the council. The president pro tempore shall serve in the absence of the council president. If a vacancy exists in the office of president pro tempore of the council, the office shall be filled by majority vote of those members of the council voting.
(7) Notwithstanding the provisions of any other law, council members may vote for themselves for the offices of president and president pro tempore of the council. The president and president pro tempore of the council shall hold their respective offices until the next council takes office, unless otherwise provided in this chapter.
(8) Any vacancies on the council shall be filled as herein provided:
a. If the vacated term has less than one year remaining, then the remaining members of the council shall appoint a successor at any regular meeting by a majority vote of those members voting. In the event of a deadlock, and for purposes of breaking the deadlock, the mayor shall cast a vote to fill the vacancy. For purposes of this subsection, a deadlock shall be determined to exist when, at the end of the third regular meeting of the council following the creation of the vacancy, the council shall not have selected a person to fill the vacancy.
b. If the term has been declared vacant and has one year or more remaining, the council shall call for a special election to fill the vacancy. Such election shall be held not less than 60 days nor more than 90 days from the date such vacancy occurred. Special elections called pursuant to this subsection shall be conducted as provided by the general laws of this state regarding municipal elections.
c. The persons selected or elected to fill a vacancy shall possess all the qualifications of office, including residence in the district he represents, and shall serve the remainder of the unexpired term until a successor has been qualified and elected.
(9) The mayor shall be elected by the whole of the electors of the city, shall be a qualified elector of the city, and shall have been a resident of the city at least 90 days prior to the time of filing his statement of candidacy, and shall reside within the limits of the city during his term of office. If the mayor shall remove from within the limits of the city, his office shall become vacant.
(10) All executive powers of the city shall be vested in the mayor and the mayor shall be the head of the executive and administrative branches of city government. The mayor shall not sit with council nor have a vote in its proceedings, but he shall have veto power the same as is provided in Section 11-45-4, as amended. The mayor shall be responsible for the proper administration of all affairs of the city, and, except as otherwise provided herein, the mayor shall have the power and shall be required to:
a. Enforce all laws and ordinances,
b. Appoint and remove, when necessary for the good of the service, all officers and employees of the city subject to the provisions of Section 11-43-81, as amended, and subject to the provisions of any civil service or merit system law applicable to such municipality. The mayor may authorize the head of a department or office to appoint and remove subordinates in such department or office,
c. Appoint those members of municipal boards which are subject to appointment by the mayor of other mayor-council municipalities organized under Chapter 43, Title 11,
d. Exercise administrative supervision and control over all officers, employees, offices, departments, and agencies of the municipality or hereafter created by council, except those otherwise given independent status; and subject to any civil service or merit system law in effect in such municipality,
e. Keep the council fully advised as to the financial conditions and needs of the city; prepare and submit the budget annually to the council and be responsible for its administration after its adoption; prepare and submit, as of the end of the fiscal year, a complete report on the financial and administrative activities of the city for such year,
f. Recommend to the council such actions as the mayor deems desirable,
g. Prepare and submit to the council such reports as may be required of the mayor,
h. Perform such other duties as may be prescribed by law or required of the mayor by ordinance or by resolution of the council not inconsistent with this chapter.
(11) Whenever any vacancy in the office of mayor shall occur by reason of death, resignation, removal, or any other cause, the president of the council shall assume the duties of the office of mayor effective on the date such vacancy occurs and shall serve as acting mayor until a new mayor is elected. While the president of the council is serving as acting mayor, he shall receive the same rate of pay and allowance provided for the mayor whose vacated office he fills, and may vote on any matters before council. In the event of a failure or refusal of the president of the council to serve as acting mayor, the council may appoint one of its members to serve as acting mayor with like effect, which appointment shall be entered in the minutes of council.
The council shall within 21 days of the occurrence of the vacancy in the office of the mayor call for a special election to fill the vacancy, such election to be held not less than 60 days nor more than 90 days from the date the vacancy occurred. Special elections called pursuant to this section shall be conducted as provided by the general laws of this state regarding municipal elections. The successor to the mayor chosen at any such election shall qualify for office as soon as practicable thereafter, and shall assume the duties, responsibilities, and powers of such office immediately upon such qualification, and shall hold office for the unexpired term of his predecessor and until his successor is elected and qualified.
(12) All laws or parts of laws relating to other mayor-council municipalities organized under chapter 43, Title 11, not inconsistent with the provisions of this chapter, shall become applicable to any municipality choosing the mayor-council form of government pursuant to this chapter.
*(Acts 1986, No. 86-195, p. 240, §4.)*
##### **§ 11-44D-5** Council-Manager Form of Government {#sec-11-44d-5 omnilex-key=us-al-statutes--title-11--11-44D-5}
If a majority of the qualified electors voting in the referendum herein choose a council-manager form of government the following provisions of this chapter shall be applicable:
(1) The municipality shall thereafter and as provided in this chapter be governed by a council-manager form of government, with a five-member council elected from single-member districts, which municipality shall have the same powers and duties as other council-manager municipalities organized under chapter 43A, Title 11, and any other powers and duties not inconsistent with this chapter, which may have been heretofore granted to such municipalities.
(2) The council shall include five members who shall be elected from districts, which shall be, as near as practicable, of equal population according to the last federal decennial census, but not more than five percent, more or less, than the average of the five districts.
(3) The council members shall be qualified electors of the city, they shall have been residents of the district which they represent for at least 90 days prior to the time of filing their statement of candidacy and shall reside in their district during their term of office. If any councilman shall remove from within the limits of his district, his office shall become vacant.
(4) The council shall, by the affirmative vote of at least three members, elect one of its members to serve as mayor and one of its members to serve as assistant mayor. The mayor shall preside at the meetings of the council and shall be recognized as the head of municipal government for all ceremonial purposes and by the governor for purpose of military law, but shall have no other administrative duties. The assistant mayor shall act as mayor during the absence or disability of the mayor. Any vacancies in the offices of mayor or assistant mayor shall be filled by majority vote of the remaining members of the council. Notwithstanding the provisions of any other law, council members may vote for themselves for the offices of mayor and assistant mayor.
(5) The council shall exercise the same powers, functions, and duties as exercised by the council of any other municipality organized pursuant to the provisions of Chapter 43A, Title 11.
(6) The council, by a majority vote of the whole qualified membership of the council, shall appoint a city manager, who shall have the same qualifications, perform the same duties, and assume the same obligations as the manager of any other municipality organized pursuant to the provisions of Chapter 43A, Title 11.
(7) Any vacancies on the council shall be filled as herein provided:
a. If the vacated term has less than one year remaining then the remaining members of the council shall appoint a successor at any regular meeting by a majority vote of those members voting. In the event of a deadlock, and for purposes of breaking the deadlock, the mayor shall cast an additional vote to fill the vacancy. For purposes of this paragraph, a deadlock shall be determined to exist when at the end of the third regular meeting of the council following the creation of the vacancy, the council shall not have selected a person to fill the vacancy.
b. If the term has been declared vacant and has one year or more remaining, the council shall call for a special election to fill the vacancy. Such election shall be held not less than 60 days nor more than 90 days from the date such vacancy occurred. Special elections called pursuant to this subsection shall be conducted as provided by the general laws of this state regarding municipal elections.
c. The person selected or elected to fill a vacancy shall possess all the qualifications of office, including residence in the district he represents, and shall serve the remainder of the unexpired term until a successor has been qualified and elected.
(8) All laws or parts of laws relating to other council-manager municipalities organized under Chapter 43A, Title 11, not inconsistent with the provisions of this chapter, shall become applicable to any municipality choosing the council-manager form of government pursuant to this chapter.
*(Acts 1986, No. 86-195, p. 240, §5.)*
##### **§ 11-44D-6** Provisions Applicable to Both Mayor-Council and Manager-Council Forms of Government {#sec-11-44d-6 omnilex-key=us-al-statutes--title-11--11-44D-6}
The following provisions shall apply regardless of which form of government the majority of the qualified electors voting in the referendum provided herein choose:
(1) Within 30 days after the referendum, the governing body of such municipality shall adopt an ordinance,
a. Establishing the boundaries of the five-council districts herein provided for, and
b. Establishing the salaries to be paid the mayor and council members to be elected at the first election to be held hereunder.
(2) The governing body shall take such steps as are necessary to comply with the Federal Voting Rights Act of 1965, as amended.
(3) Within 10 days after the receipt of notification of compliance with the Federal Voting Rights Act of 1965, as amended, the mayor or other chief executive officer shall give notice of an election for the members of the city council, and for mayor if the mayor-council form of government was adopted, to be held not more than 90 days after the publication of said notice.
(4) On noon of the seventh day following the canvass of the election results, including the results of any runoff election, if needed, the newly elected officers shall assume office and the terms, powers, duties, responsibilities, and emoluments of office of the commissioners shall end.
(5) The officers elected hereunder shall serve until the first Monday in October, 1988. Officers elected thereafter shall hold office for four years, but shall serve until their successors shall have been elected and qualified. An election shall be held in 1988 on the month and day established by the general laws of the state pertaining to municipal elections. Regular municipal elections shall be held quadrennially thereafter under the same rules and regulations and in the same mode and manner as provided by the general laws of the state pertaining to municipal elections, except as otherwise provided by this chapter.
(6) The municipality shall, after said election and the qualification and assumption of office of the council and mayor if the mayor-council form of government was adopted, be deemed to have adopted the form of government as herein provided and thereafter be governed pursuant to the provisions of this chapter.
*(Acts 1986, No. 86-195, p. 240, §6.)*
##### **§ 11-44D-7** Conduct of Election and Referendum {#sec-11-44d-7 omnilex-key=us-al-statutes--title-11--11-44D-7}
The election and referendum provided for herein shall be conducted, the vote canvassed, and the results declared in the same manner as provided by Chapter 46, Title 11, in respect to other municipal elections conducted in any such municipality.
*(Acts 1986, No. 86-195, p. 240, §7.)*
##### **§ 11-44D-8** Reapportionment of Council Districts {#sec-11-44d-8 omnilex-key=us-al-statutes--title-11--11-44D-8}
Whenever there shall be a change in population in any of the districts heretofore established, evidenced by a federal census of population, or by virtue of a substantial change in the corporate limits, there shall be a reapportionment of the council districts in the manner hereinafter provided:
(1) The mayor shall within six months after the publication of each federal census of population for the municipality or within six months after there shall have been any substantial change in the corporate limits of the municipality, file with the council a report containing a recommended plan for reapportionment of the council district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous and to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well defined boundaries;
b. Each district shall contain as nearly as is possible the same population, but not more than five per centum more or less than the average of the five districts.
(2) The council shall enact a redistricting ordinance within six months after receiving such report. If the council fails to enact the redistricting ordinance within the said six months, the redistricting plan submitted by the mayor shall become effective without enactment by the council, as if it were a duly enacted ordinance.
(3) Such redistricting ordinance shall not apply to any primary or regular or special election held within six months after its becoming effective. No incumbent member of the council shall be deprived of his unexpired term of office because of such redistricting.
*(Acts 1986, No. 86-195, p. 240, §8.)*
##### **§ 11-44D-9** Powers of City Generally {#sec-11-44d-9 omnilex-key=us-al-statutes--title-11--11-44D-9}
The city shall have all powers granted to municipal corporations and to cities by the Constitution and laws of the state, together with all the implied powers necessary to carry and execute all the powers granted. The city may acquire property within or without its corporate limits for any purpose, in fee simple or any lesser interest or estate, by purchase, gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage, and control such property as the interest may require; and except as prohibited by the Constitution of this state, or restricted by this chapter, the city shall and may exercise all municipal powers, functions, privileges, and immunities of every kind and nature whatsoever. The enumeration of particular powers by this chapter shall not be deemed to be exclusive, and in addition to the powers enumerated herein or implied hereby, or appropriate to the exercise of such powers, it is intended that the city shall have and may exercise all powers which, under the Constitution of this state, it would be competent for this chapter to specifically enumerate.
*(Acts 1986, No. 86-195, p. 240, §9.)*
##### **§ 11-44D-10** Existing Rights, Powers, and Properties Continued {#sec-11-44d-10 omnilex-key=us-al-statutes--title-11--11-44D-10}
All rights, powers, and properties of every description which were vested in any city which adopts a form of government as provided by this chapter, shall vest in such city under the new form of government as herein provided for, unless in conflict with the provisions of this chapter.
*(Acts 1986, No. 86-195, p. 240, §10.)*
##### **§ 11-44D-11** Initial Territorial Limits {#sec-11-44d-11 omnilex-key=us-al-statutes--title-11--11-44D-11}
The initial territorial limits of any municipality which adopts a form of government as provided by this chapter shall be the same as under its former organization.
*(Acts 1986, No. 86-195, p. 240, §11.)*
##### **§ 11-44D-12** Effect of Chapter on Preexisting Rights and Privileges of Municipal Employees, Etc {#sec-11-44d-12 omnilex-key=us-al-statutes--title-11--11-44D-12}
Nothing contained in this chapter, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the municipality or of any office, department, board, or agency existing at the time when this chapter shall take effect, or any provision of law in force at the time when the new form of government shall be adopted and not inconsistent with the provisions of this chapter, in relation to the personnel, appointment, ranks, grades, tenure of office, promotions, removal, pension and retirement rights, civil rights, of any or other rights or privileges of officers or employees of the municipality or any office, department, board, or agency thereof.
*(Acts 1986, No. 86-195, p. 240, §12.)*
##### **§ 11-44D-13** Administrative Officers Continued; Reassignment of Powers and Duties Formerly Exercised by Abolished Agency {#sec-11-44d-13 omnilex-key=us-al-statutes--title-11--11-44D-13}
All persons holding administrative office at the time the new form of government is adopted shall continue in office and in the performance of their duties until provision shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. The powers conferred and the duties imposed upon any office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency of the municipality by the laws of the state shall, if such office, department, board, or agency be abolished by this chapter, or under its authority, be thereafter exercised and discharged by the office, department, board, or agency designated by the council unless otherwise provided herein.
*(Acts 1986, No. 86-195, p. 240, §13.)*
##### **§ 11-44D-14** Civil Service Officers Continued {#sec-11-44d-14 omnilex-key=us-al-statutes--title-11--11-44D-14}
Any person holding an office or position in the civil service of such municipality when the new form of government shall be adopted shall continue to hold such office in the civil service under the new form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service system.
*(Acts 1986, No. 86-195, p. 240, §14.)*
##### **§ 11-44D-15** Interagency Transfer of Records, Equipment, Etc {#sec-11-44d-15 omnilex-key=us-al-statutes--title-11--11-44D-15}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency by this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency, or part thereof, are by this chapter assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1986, No. 86-195, p. 240, §15.)*
##### **§ 11-44D-16** Contracts Continued; Completion of Public Improvements {#sec-11-44d-16 omnilex-key=us-al-statutes--title-11--11-44D-16}
All contracts entered into by the municipality or for its benefit, prior to the adoption by such municipality of the new form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the new form of government shall be carried to completion in accordance with the provisions of such existing laws.
*(Acts 1986, No. 86-195, p. 240, §16.)*
##### **§ 11-44D-17** Pending Actions and Proceedings {#sec-11-44d-17 omnilex-key=us-al-statutes--title-11--11-44D-17}
No action or proceeding, civil or criminal, pending at the time of the adoption of the new form of government, brought by or against the municipality or any office, department, board, agency, or officer or employee thereof, shall be affected or abated by the adoption of the new form of government or by anything contained in this chapter.
*(Acts 1986, No. 86-195, p. 240, §17.)*
##### **§ 11-44D-18** Pension and Retirement Plans, Etc., Continued {#sec-11-44d-18 omnilex-key=us-al-statutes--title-11--11-44D-18}
All laws and parts of the laws relating to pension, retirement, and relief funds for any employees of the municipality, as the same may apply and be in effect with respect to the municipality at the time when it shall elect to be governed by the provisions of this chapter, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder.
*(Acts 1986, No. 86-195, p. 240, §18.)*
##### **§ 11-44D-19** Continuation of Laws Relating to Certain Boards, Etc {#sec-11-44d-19 omnilex-key=us-al-statutes--title-11--11-44D-19}
All laws relating to the school board, library board, medical clinic board, hospital board, airport board, housing authority, industrial development board, downtown development authority, plumbers or electricians board, planning board, zoning board, park or recreation board, municipally owned public utility, and any municipally owned service enterprise, including inter alia, electric, gas and water boards, agencies, etc., and any board, authority, agency, etc., given such independent status, as the same may apply and be in effect at the time when the municipality shall elect to be governed by the provisions of this chapter, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board, or agency, until otherwise provided by law.
*(Acts 1986, No. 86-195, p. 240, §19.)*
##### **§ 11-44D-20** Continuation of Ordinances and Resolutions {#sec-11-44d-20 omnilex-key=us-al-statutes--title-11--11-44D-20}
All ordinances and resolutions of the municipality in effect at the time of the adoption of the new form of government shall continue in effect unless and until changed or repealed by the council.
*(Acts 1986, No. 86-195, p. 240, §20.)*
##### **§ 11-44D-21** Continuation of Other Laws Relating to Cities in This Class {#sec-11-44d-21 omnilex-key=us-al-statutes--title-11--11-44D-21}
All laws and parts of laws, general, local, or special, relating to or affecting any city in this class, its powers, functions, duties, and property, in force when this chapter shall take effect are continued in effect; but all such laws relating to the exercise of powers, functions, and duties of the commission or some other form of government, shall be superseded to the extent that the same are inconsistent with the provisions of this chapter.
*(Acts 1986, No. 86-195, p. 240, §22.)*
### **Chapter 44E** Adoption of Mayor/Commission/City Manager Form of Government in Class 5 Municipalities
#### **Article 1** Adoption of the Mayor/Commission/City Manager Form of Government; Election and Term of First Commission
##### **§ 11-44E-1** Cities to Which Chapter Applies {#sec-11-44e-1 omnilex-key=us-al-statutes--title-11--11-44E-1}
Any Class 5 municipality in the State of Alabama may adopt the mayor/commission/city manager form of government by proceeding in the manner hereinafter provided in this chapter.
*(Acts 1988, No. 88-445, p. 660, §1.01.)*
##### **§ 11-44E-2** Authority to Adopt Mayor/Commission/City Manager Form of Government; Ordinance for Election of Commissioners {#sec-11-44e-2 omnilex-key=us-al-statutes--title-11--11-44E-2}
At any time upon passage of this chapter and said chapter becoming law, any Class 5 municipality may adopt the mayor/commission/city manager form of government by adopting an ordinance by a majority vote of the members of that governing body adopting the mayor/commission/city manager form of government. Within 30 days of the adoption of the ordinance adopting the mayor/commission/city manager form of government, members of that governing body shall adopt a second ordinance for the election of commissioners from six single-member districts with the district boundaries established therein.
*(Acts 1988, No. 88-445, p. 660, §1.02; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-3** Election of Commission and Mayor; Term of Office {#sec-11-44e-3 omnilex-key=us-al-statutes--title-11--11-44E-3}
(a) The expense for all elections shall be paid by such city. The mayor and all commission candidates shall qualify as provided in Sections 11-44E-71 and 11-44E-72, respectively, and shall have the qualifications and eligibility set forth in this chapter. Under applicable laws for the election of commissioners to the commission, the mayor, within the scope of this chapter, shall provide for an election to be held on the second Tuesday in July, 1991, and every two years thereafter for the positions of associate commissioners in the manner herein provided.
Upon the adoption of such form of government and approval by the Justice Department, the mayor shall call an election, to be governed by this chapter, to be held no later than the second Tuesday in July, 1991, and every four years thereafter for the positions of associate commissioner for Districts 2, 4, and 6 for four-year terms. Associate commissioners for Districts 1 and 5 shall also be elected the second Tuesday in July 1991, for initial two-year terms. Any commissioner whose present term does not expire until 1993, shall continue to serve the remainder of his or her term, but shall represent the district in which he or she resides. Districts 1, 3, and 5 shall elect associate commissioners the second Tuesday in July, 1993, for four-year terms. After 1993, all associate commissioners shall serve four-year terms. The mayor shall continue to hold office until the first Monday in October, 1993, and shall continue to be elected at-large for a four-year term.
Each voter in the election may cast one vote for a candidate from his or her district and one vote for a candidate for mayor. Any district commissioner candidate receiving a majority of the total votes cast from the district in which he or she is a candidate shall be declared elected as a commissioner from his or her district. In the event that no candidate receives a majority, the two candidates receiving the highest number of votes cast shall be eligible for a second or run-off election. Such election shall be held on the second Tuesday next thereafter following the first election. The candidate for the commissioner receiving a majority of votes cast in the second election shall be declared elected to such designated office. The commissioners so elected shall take office on the first Monday in October following the election. Each commissioner shall hold office for four years, but shall serve until his or her successor shall have been designated as prescribed elsewhere in this chapter. A commissioner may succeed himself or herself in office.
The candidate for mayor receiving the majority of votes cast at the first election shall be elected thereto. If at the first election no candidate receives a majority of the votes cast, the two candidates receiving the highest number of votes shall be declared eligible for a second or run-off election. The second or run-off election shall be held on the second Tuesday next thereafter following the first election. The candidate receiving the majority of votes cast in the second or run-off election shall be declared elected to such office.
Notwithstanding any notice requirements of any other statute or statutes concerning municipal elections, a notice shall be published by the city clerk no earlier than the second Tuesday and no later than the third Tuesday in May preceding the election. The notice shall, in substance, state the month, day, and year of the election and the purpose for which it is called. The notice shall further recite that the city has been divided into districts as provided under this chapter and state where a copy of the district division is on file. The notice shall be published at least one time in a newspaper published in the city, and if no newspaper is published in the city, then by posting notices in three public places within the municipality. The election of the first commission shall be held and conducted in the same manner as provided by law unless otherwise provided for in this chapter. All municipal officials of the city shall have the same duties and responsibilities as they have with respect to municipal elections as provided by law. The call of the election by the mayor shall be sufficient to require any municipal officer or officers to comply with their duties and responsibilities with regard to all municipal elections, including the designation of places of voting, appointment of election officers, and other matters concerning the election. The officer or officers shall issue any orders necessary to cause all election requirements to be met.
(b) Notwithstanding subsection (a), effective in 2011, and thereafter, the first election date for the mayor shall be on the first Tuesday in August and the second election or run-off election shall be held on the sixth Tuesday thereafter. Notice of the election shall be given no earlier than the first Tuesday and no later than the third Tuesday in June preceding the election.
*(Acts 1988, No. 88-445, p. 660, §1.03; Acts 1988, 1st Ex. Sess., No. 88-831, p. 293, §1; Acts 1990, No. 90-287, p. 379, §1; Act 2006-348, p. 921, §1; Act 2009-362, p. 684, §1.)*
##### **§ 11-44E-4** Mayor and Commissioners to Be Known as Commission; Powers and Duties; Qualification and Taking of Office; Commencement of Mayor/Commission/City Manager Form of Government {#sec-11-44e-4 omnilex-key=us-al-statutes--title-11--11-44E-4}
The commissioners provided for in this section, along with the mayor, shall be known collectively as the commission and shall have the powers and duties hereinafter provided. The commissioners first elected shall qualify and take office in the manner hereinafter prescribed on the first Monday in October following the date of election, and thereupon such city shall at that time be organized under the mayor/commission/city manager form of government provided under this chapter and shall thereafter be governed by the provisions of this chapter.
*(Acts 1988, No. 88-445, p. 660, §1.04.)*
#### **Article 2** Legal Status; Form of Government; Powers
##### **§ 11-44E-20** Continuation as Municipal Corporation; Duties, Rights, Etc {#sec-11-44e-20 omnilex-key=us-al-statutes--title-11--11-44E-20}
Any such city which adopts the mayor/commission/city manager form of government shall continue its existence as a municipal corporation. The word “city” as hereinafter used shall mean and refer to any city which has adopted the mayor/commission/city manager form of government. The city shall continue as a municipal corporation, within the corporate limits as then established, and as thereafter fixed in the manner prescribed by law, subject to all the duties and obligations then pertaining to or incumbent upon it as a municipal corporation and shall enjoy all the rights, privileges, immunities, powers, duties, and franchises then enjoyed by it, as well as those that may thereafter or hereinafter be granted to it.
*(Acts 1988, No. 88-445, p. 660, §2.01.)*
##### **§ 11-44E-21** Government to Be Known as Mayor/Commission/City Manager Form of Government; Powers of City Vested in Commission; Exercise of Powers {#sec-11-44e-21 omnilex-key=us-al-statutes--title-11--11-44E-21}
The municipal government of any such city proceeding under this chapter shall be known as the “mayor/commission/city manager form of government.” Pursuant to the provisions and limitations of this chapter and subject to the limitations imposed by the laws and Constitution of Alabama, all powers of the city shall be vested in the commission elected as herein provided and hereinafter referred to as “the commission,” which shall enact ordinances, resolutions, budgets, and policies. All powers of the city shall be exercised in the manner prescribed by this chapter, or if the manner be not prescribed, then in such manner as may be prescribed by the laws of the state.
*(Acts 1988, No. 88-445, p. 660, §2.02.)*
##### **§ 11-44E-22** Powers of City; Acquisition of Property; Enumeration of Powers in Chapter Not Exclusive {#sec-11-44e-22 omnilex-key=us-al-statutes--title-11--11-44E-22}
The city shall have all the powers granted to municipal corporations and to cities by the Constitution and laws of this state together with all the implied powers necessary to carry into execution all the powers granted. The city may acquire within or without its corporate limits for any city purpose, in fee simple and any lesser interest or estate, by purchase, gift, devise, lease, or condemnation, and may sell, lease, mortgage, hold, manage, and control such property as its interests may require; and except as prohibited by the Constitution of this state or restricted by this chapter, the city shall and may exercise all municipal powers, functions, rights, privileges, and immunities of every name and nature whatsoever. The enumeration of particular powers by this chapter shall not be deemed to be exclusive, and in addition to the powers enumerated therein or implied thereby, or appropriate to the exercise of such powers, it is intended that the city shall have and may exercise all powers which, under the Constitution of this state, it would be competent for this chapter specifically to enumerate.
*(Acts 1988, No. 88-445, p. 660, §2.03.)*
#### **Article 3** The Commission
##### **§ 11-44E-40** Elections; Qualification and Term of Office; Oath {#sec-11-44e-40 omnilex-key=us-al-statutes--title-11--11-44E-40}
(a) Any commissioner whose present term does not expire until October, 1993, shall continue to serve the remainder of his or her term, but shall represent the district in which he or she resides. The commissioners shall qualify and take office in the manner hereinafter prescribed on the first Monday in October following his or her election. An election shall be held on the second Tuesday in July, 1991, and every four years thereafter for the positions of associate commissioner for Districts 2, 4, and 6 and in the manner herein provided. Associate commissioners for Districts 1 and 5 shall also be elected the second Tuesday in July, 1991, for initial two-year terms. Districts 1, 3, and 5 shall elect associate commissioners the second Tuesday in July, 1993, for four-year terms. After 1993, all associate commissioners shall serve four-year terms. The mayor shall continue to hold office until the first Monday in October, 1993, and shall continue to be elected at-large for a four-year term at the same election in 1993 as Districts 1, 3, and 5 and every four years thereafter. The commissioners shall qualify and take office on the first Monday in October following his or her election. The commissioners elected at any such regular election shall on or before the first Monday in October, make oath that he or she is eligible for the office and will execute the duties of same according to the best of his or her knowledge and ability. At any election for commissioner the candidate receiving the highest number of votes for the office shall be elected thereto, provided such candidate receives a majority of all votes cast for such office. If at the first election a majority is not received by any candidate for the office of commissioner, then a second election shall be held on the second Tuesday next thereafter following the first election, in the same mode, manner, and under the same rules and regulations provided in Section 11-44E-3 hereof with respect to the election of the first commission.
(b) Notwithstanding subsection (a), effective for the election of city commissioners in 2011, the city commissioners in Districts 2, 4, and 6 shall be elected for a two-year term. Effective for the election of city commissions in 2013 and thereafter, all city commissioners shall be elected for four-year terms. Effective for the election of city commissioners in 2011, and thereafter, the first election date shall be on the first Tuesday in August and the second election or run-off election shall be held on the sixth Tuesday thereafter.
*(Acts 1988, No. 88-445, p. 660, §3.01; Acts 1990, No. 90-287, p. 379, §1; Act 2006-348, p. 921, §1; Act 2009-362, p. 684, §1.)*
##### **§ 11-44E-41** Statement of Candidacy {#sec-11-44e-41 omnilex-key=us-al-statutes--title-11--11-44E-41}
Any person desiring to become a candidate in any election for the office of commissioner may become such candidate by filing in the office of the city clerk a statement in writing of such candidacy accompanied by a petition signed by a minimum of fifty registered voters of such commission district or in the case of mayor, one hundred registered voters of the municipality, endorsing the candidacy of such candidate and an affidavit taken and certified by such city clerk or notary public. Such statement shall be filed by 5:00 P.M. on the fourth Tuesday in June preceding the date set for the election and shall be substantially in the following form:
“State of Alabama, _____ County. I, the undersigned, being first duly sworn, depose and say that I am a citizen of the City of _____, in said State and County, and reside at _____ in said City of _____, that I desire to become a candidate for the office of commissioner for District _____, in said City at the election for said office to be held on the _____ day of _____ and that I am duly qualified to hold said office if elected thereto, and I hereby request that my name be printed upon the official ballot at said election.
Signed _____;
Sworn to and subscribed before me on this _____ day of _____, 2__, and filed in this office for record on said day.
_____ City Clerk.”
Said statement shall be accompanied by a qualifying fee in the amount of $150.00 for candidates for a commissioner, which fee shall be paid over by the city clerk to the general fund of the city. Any person may file with the city clerk, a verified pauper’s oath that he (she) does not have the financial resources to pay a qualifying fee and thereupon shall be exempt from filing such fee. No name shall appear upon said ballot as a candidate for election except the names of such persons as have become candidates according to provisions as above set forth. No primary election shall be held for the nomination of candidates for the office of mayor or commissioner and candidates shall be nominated only as hereinabove described.
*(Acts 1988, No. 88-445, p. 660, §3.02; Acts 1988, 1st Sp. Sess., No. 88-831, p. 293, §2; Act 2011-252, p. 450, §1.)*
##### **§ 11-44E-42** Eligibility of Candidates; Vacancy When Commissioner Ceases to Possess Qualifications {#sec-11-44e-42 omnilex-key=us-al-statutes--title-11--11-44E-42}
The candidates for office of commissioner shall be qualified electors in the city for at least one year prior to qualifying, shall be at least 19 years of age, shall have continuously resided in the district for which he (she) is a candidate for the preceding six months, and shall hold no other public office except that of notary public or member of the National Guard of Naval or Military Reserve. If the commissioner shall cease to possess any of these qualifications or shall be convicted of a crime involving moral turpitude, his (her) office shall immediately become vacant.
*(Acts 1988, No. 88-445, p. 660, §3.03.)*
##### **§ 11-44E-43** Compensation; Increase or Decrease in Compensation; Bond {#sec-11-44e-43 omnilex-key=us-al-statutes--title-11--11-44E-43}
The compensation of all commissioners elected during the first election held under the terms of this chapter shall be the sum of $21,000.00 per annum.
The fees, salary, or compensation of any commissioner whose election is authorized by this chapter shall not be increased or diminished during the term for which he (she) shall be elected, provided, however, that the commission shall have authority and power to adjust such fees, salaries, or compensation for the succeeding term.
The commissioners shall each be bonded in the minimum amount of $25,000.00, and such additional amount as the commission may determine, if any. Such bond will be at the expense of the municipality.
*(Acts 1988, No. 88-445, p. 660, §3.04; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-44** Powers of Commission {#sec-11-44e-44 omnilex-key=us-al-statutes--title-11--11-44E-44}
The commission shall be the legislative body of the city. It shall have powers vested in it by this chapter. These powers shall be as follows:
(1) To establish administrative departments.
(2) To adopt the budgets of the city.
(3) To authorize the issuance of bonds or warrants.
(4) To inquire into the conduct of any office, department, or agency of the city and make investigations as to municipal affairs.
(5) To appoint the members of all boards, commissions, or other bodies authorized hereunder or by law.
(6) To succeed to all the powers, rights, and privileges conferred upon the former governing body of the city by statutes in effect at the time of adoption by the city of the mayor/commission/city manager form of government and not in conflict with this chapter.
(7) To levy property taxes and impose and collect license taxes and local improvement assessments and enact any such new revenue or adjustments as elsewhere prescribed by law.
(8) To adopt each year a financial plan for at least the next succeeding five years showing anticipated revenues, anticipated expenditures and with all capital projects ranked by priority. Said financial plan shall be used as a financial planning guide by the city staff and city manager, but shall not be binding on the commission.
(9) To enact such resolutions, ordinances, and policies, as prescribed by this chapter or prescribed elsewhere in the Code of Alabama.
(10) To employ the city manager; to discharge the city manager; to enter into employment contract with the city manager.
(11) To hold public hearings as prescribed by law.
(12) To set the compensation of the mayor and commission in accordance with procedure in Sections 11-44E-43 and 11-44E-73.
(13) To adopt policies for the operation of the city.
(14) To adopt rules of procedure.
*(Acts 1988, No. 88-445, p. 660, §3.05; Acts 1989, No. 89-525, p. 1074, §1.)*
##### **§ 11-44E-45** Interference in Appointment or Removal of Officers and Employees; Dealings of Commission with Administrative Service {#sec-11-44e-45 omnilex-key=us-al-statutes--title-11--11-44E-45}
Neither the commission nor any of its members shall direct or request the appointment of any person to, or his removal from, office or position by the city manager or by any of his (her) subordinates, or in any manner take part in the appointment or removal of officers and employees in the administrative service of the city with the exception of certain employees as prescribed in Section 11-44E-92(2) of this chapter. Except for the purpose of inquiry, the commission and its members shall deal with the administrative service solely through the city manager and neither the commission nor any member thereof shall give orders to any subordinates of the city manager, either publicly or privately.
*(Acts 1988, No. 88-445, p. 660, §3.06.)*
##### **§ 11-44E-46** Vacancies in Commission {#sec-11-44e-46 omnilex-key=us-al-statutes--title-11--11-44E-46}
(a) Whenever a vacancy in the office of commissioner shall occur by reason of death, resignation, removal, or any other cause, and the remainder of the term is six months or less, the remaining members shall, by a majority vote, appoint a commissioner to serve the remainder of the vacated term, who shall serve until a successor has been elected and qualified.
(b) If the remainder of the vacated term is more than six months, the remaining members shall, by a majority vote, appoint a commissioner to serve until a successor has been elected and qualified as hereinafter provided. The interim commissioner selected shall receive the same rate of pay and allowances provided for the commissioner whose vacated office he or she fills. The mayor shall within 10 days after the occurrence of the vacancy, call for a special election to be held in the district of the vacancy on a Tuesday not less than 60 days and not more than 120 days from the date the vacancy occurred. If a regular or special municipal election is scheduled in the municipality within not less than 60 days nor more than 120 days after the date the vacancy occurred, then the election for a commissioner to fill this vacancy shall be held at the regular or special municipal election. Notice of the election shall be given by publication in a newspaper of general circulation and published in the city. The method, procedure, and requirements of qualifying, voting, and determining the successful election of the commissioner shall be the same as is provided herein relative to the election of a commissioner at regular elections, except that statements of candidacy shall be filed within 10 days after notice of election has been given. The commissioner chosen at the election shall take office no later than the next Monday following election and shall hold office for the unexpired term until a successor is elected and qualified.
*(Acts 1988, No. 88-445, p. 660, §3.07; Act 98–290, p. 476, §1.)*
##### **§ 11-44E-47** Continuation of City Clerk in Office Where Subject to Civil Service or Merit System; Appointment Where Not Subject to Such System; Duties of City Clerk {#sec-11-44e-47 omnilex-key=us-al-statutes--title-11--11-44E-47}
If the city clerk of any city which adopts the mayor/commission/city manager form of government holds office subject to any civil service or merit system, such clerk shall continue to be the city clerk under the mayor/commission/city manager form of government of such city, and the clerk’s successor shall be selected and hold office subject to the provisions of such civil service or merit system. If the city clerk of any city which adopts the mayor/commission/city manager form of government does not hold office subject to any civil service or merit system, the city manager may appoint the city clerk in the same manner as department heads are appointed. The city clerk shall give notice of special or called meetings of the commission, shall keep the journal of its proceedings, shall authenticate by his (her) signature and record in full, in a book kept for that purpose, all ordinances and resolutions and shall perform such other duties as shall be required by this chapter or by ordinance, and such duties as are imposed by law of Alabama upon city clerks.
*(Acts 1988, No. 88-445, p. 660, §3.08.)*
##### **§ 11-44E-48** Meetings of Commission {#sec-11-44e-48 omnilex-key=us-al-statutes--title-11--11-44E-48}
The first meeting of each newly elected commission shall be held at two o’clock in the afternoon on the first Tuesday in October, with all subsequent meetings held at such times as may be prescribed by ordinance of the commission.
*(Acts 1988, No. 88-445, p. 660, §3.09.)*
##### **§ 11-44E-49** Commission to Judge Election {#sec-11-44e-49 omnilex-key=us-al-statutes--title-11--11-44E-49}
The commission shall be the judge of the election by officially canvassing the votes.
*(Acts 1988, No. 88-445, p. 660, §3.10.)*
##### **§ 11-44E-50** Rules of Procedure of Commission; Journal of Commission Proceedings {#sec-11-44e-50 omnilex-key=us-al-statutes--title-11--11-44E-50}
The commission shall determine its own rules and order of business. It shall keep a journal of its own proceedings and the journal shall be open to public inspection.
*(Acts 1988, No. 88-445, p. 660, §3.11.)*
##### **§ 11-44E-51** Meetings of Commission; Mayor to Preside; Quorum; Majority Vote Requirement; Enactment of Resolutions, Bylaws, and Ordinances; Record of Proceedings; Publication of Ordinances {#sec-11-44e-51 omnilex-key=us-al-statutes--title-11--11-44E-51}
The commission shall hold regular public meetings at a regular hour to be fixed by ordinance of said commission. It may hold such adjourned, called, special, or other meetings as the business of the city may require. The mayor when present, shall preside at all meetings of said commission. A majority of the commission members elected shall constitute a quorum for the transaction of any and every power conferred upon said commission, and affirmative vote of a majority of those members present shall be sufficient for the passage of any resolution, bylaw, or ordinance, or the transaction of any business of any sort by the said commission or the exercise of any of the powers conferred upon it by the terms of this chapter or by law, or which may hereafter be conferred upon it. No resolution, bylaw, or ordinance granting any franchise, appropriating any money for any purpose, providing for any public improvements, any regulation concerning the public health, or of any other general or permanent nature, except the proclamation of quarantine, shall be enacted except at a regular public meeting of said commission or an adjournment thereof. Every ordinance introduced at any and every such meeting shall be in writing before any vote thereon shall be taken, and the yeas and nays thereon shall be recorded; provided that if the vote of all commissioners present be unanimous, it may be so stated in the journal without recording the yeas and nays. A record of the proceedings of every meeting of the commission shall be kept, and every resolution or ordinance passed by the commission must be recorded and the record of the proceedings of the meeting shall, when approved by the commission be signed by the mayor and the city clerk. Such record shall be kept available for inspection by all citizens of such city at reasonable times. No ordinance of permanent operation shall be passed at the meeting at which it was introduced except by unanimous consent of all members of the commission present, and such unanimous consent shall be shown by the yea and nay votes entered upon the minutes of said meeting, provided, however, that if all members of the commission present vote for the passage of the ordinance and their names are so entered of record as voting in favor thereof, it shall be construed as giving unanimous consent to the action upon such ordinance at the meeting at which it is introduced. Publication of ordinances shall be governed by Section 11-45-8, as amended, Act No. 87-668.
*(Acts 1988, No. 88-445, p. 660, §3.12.)*
##### **§ 11-44E-52** Grant of Franchise; Lease, or Right to Use Streets, Etc.; Transfer of Waterworks, Sewer, Electric, or Gas Plant and System to Board or Public Corporation {#sec-11-44e-52 omnilex-key=us-al-statutes--title-11--11-44E-52}
No resolution, bylaw, or ordinance granting to any person, firm, or corporation any franchise, lease, or right to use the streets, public highways, thoroughfares, or public property of the city organized under the provisions of this chapter, either in, under, upon, along, through, or over same shall take effect and be in force until 30 days after the final enactment of same by the commission, and publication of said resolution, or ordinance in full once a week for three consecutive weeks in some newspaper published in the city, which publication shall be made at the expense of the persons, firms, or corporations applying for the grant.
Pending the passage of any such resolution or ordinance, or during the time intervening between its final passage and the expiration of the 30 days during which publication shall be made as above provided, the legally qualified voters of the city may by written petition or petitions addressed to the subject of such grant, and if during this period such written petition or petitions signed by at least a number of qualified inhabitants equal to four for every 100 inhabitants of the city or fraction thereof, according to the last federal census, shall be filed with the commission, the commission shall forthwith order an election, at which the legally qualified voters of the city shall vote for or against the proposed grant as set by resolution or ordinance. In the call for the election, the resolution or ordinance making the grant shall be published at length and in full at the expense of the city in some newspaper in the city. One publication shall be sufficient for the purposes of this section.
If at such election the majority of the votes are in favor of the resolution or ordinance and the making of the proposed grant, the same shall thereupon become effective; but if a majority of the votes so cast shall be against the passage of the resolution, or ordinance and against the making of the grant, the resolution, or ordinance shall not become effective, nor shall it confer any rights, powers or privileges of any kind, and it shall be the duty of the commission, after the result of the election is determined, to pass a resolution or ordinance to that effect.
No grant of any franchise or lease or right of user, or any other right in, under, upon, along, through, or over, the streets, public highways, thoroughfares, or public property of any such city shall be made or given, nor shall any such rights of any kind whatsoever be conferred upon any person, firm, or corporation, except by resolution or ordinance, duly passed by the commission at some regular or adjourned meeting, and published as above provided for; nor shall any extension or enlargement of any such rights or powers previously granted, be made or given except in the manner and subject to all the conditions herein provided for as to the original grant of same.
Any waterworks plant and system, sewer plant and system, electric plant and system, and gas plant and system, or any one or more of such plants and systems now or hereafter owned by any Class 5 municipality shall be authorized to transfer and convey one or more of such plants or systems, or any part of such plants or systems, or any rights incidental thereto to any board or public corporation organized under the provisions of Section 11-50-1 et seq. as amended, or under any subsequent act providing for the incorporation of like boards to own and operate any waterworks plant or system, any sewer plant or system, any electric plant or system, or any gas plant or system, whether such board was incorporated with the approval of the city owning such plant or system, or with the approval of some other city in Alabama, the governing body owning any such plant and/or systems shall provide for an election at which the qualified voters of such city shall be allowed to vote on such proposition, which election shall be held in accordance with this chapter except that no written petition or petitions to the governing body of the city owning such plants or systems shall be required for the holding of such election herein provided.
Except as herein provided for, and at the time holding of the same, all elections herein required shall be held according to the general laws of Alabama. At any such election the proposition to be submitted to the voters shall be:
“Shall the governing body of the City of ______ be authorized to transfer and convey the city-owned waterworks plant and system, sewer plant and system, electric plant and system, gas plant and system, or any one or more thereof, or any part or parts of such plants or systems, or any rights incidental thereto to any board or public corporation organized under Section 11-50-1 et seq. of the Code of Alabama (1975) as amended, or to any board created or established by any subsequent Act providing for the incorporation of like boards to own and operate any such plant and/or systems, the members of which board will not be elected by the qualified voters of the City of _____ ? NO ___ YES ___.”
*(Acts 1988, No. 88-445, p. 660, §3.13; Acts 1989, No. 89-525.)*
##### **§ 11-44E-53** Codification Authorized {#sec-11-44e-53 omnilex-key=us-al-statutes--title-11--11-44E-53}
The commission may provide at any time it may deem proper, for the revision and codification of its resolutions, bylaws, and ordinances, or for the adoption of a code or codes by ordinance. Such code or codes and the revisions or amendments thereof may relate to the whole system of city resolutions, bylaws, and ordinances, or may relate to that portion of such resolutions, bylaws, and ordinances, which relate to, affect, or purport to govern any particular subject or subjects or subdivision of municipal legislation. The commission shall have full power and authority to prescribe the manner in which said code or codes, revisions or amendments thereto, shall be made public, whether by proclamation of any officer or officers of said city by posting or by publication, one or all, but it shall not be necessary unless so prescribed by the commission for such code or codes, revisions or amendments thereto, to be published in a newspaper or newspapers. Nor shall it be necessary that such code or codes, revisions or amendments thereto, be spread at length upon the minutes. The commission may prescribe that such code or codes, revisions or amendments thereto, be spread at length upon the minutes. The commission may prescribe that such code or codes, revisions or amendments thereto may be certified by and filed with the city clerk, or other corresponding officer, in lieu of spreading the same on the minutes; and the commission may prescribe the manner in which copies of such code or codes, revisions or amendments thereto, may be officially certified for use by the inhabitants or by the courts. The commission may adopt and provide for the maintenance in a designated office of the city a comprehensive zoning map of the city open for inspection by the public at all reasonable times, and may make such zoning map a part of any ordinance by reference thereto in such ordinance and without publication of such zoning map in any newspaper. Such zoning map need not be in one piece but may for convenience be in sections. A zoning map of territory newly added to the city shall be treated as a comprehensive zoning of the city for purposes of application of the provisions of the preceding sentence.
*(Acts 1988, No. 88-445, p. 660, §3.14; Acts 1988, 1st Sp. Sess., No. 88-831, p. 293, §3.)*
##### **§ 11-44E-54** Examination of Books and Publication of Accounts {#sec-11-44e-54 omnilex-key=us-al-statutes--title-11--11-44E-54}
At the end of each year, the commission shall cause a full and complete examination of all the books and accounts of the city to be made by a certified public accountant, or by the state department of public examiner of public accounts.
*(Acts 1988, No. 88-445, p. 660, §3.15.)*
#### **Article 4** Mayor
##### **§ 11-44E-70** Election; Term; Qualification {#sec-11-44e-70 omnilex-key=us-al-statutes--title-11--11-44E-70}
The mayor shall be elected at the same election at which commissioners for Districts 1, 3, and 5 are elected under the provisions of Article 3 of this chapter and shall hold office for four years. The mayor shall be elected at large. The mayor shall qualify and take office in the manner hereinafter prescribed on the first Monday in October following his (her) election. The regular election for mayor shall be held on the second Tuesday of July, 1993, and every four years thereafter. The mayor elected at any such regular election shall on or before the first Monday in October following his (her) election make oath that he (she) is eligible for said office and will execute the duties of same according to the best of his (her) knowledge and ability. At any election for mayor the candidate receiving a majority of votes for the office shall be elected thereto. If at the first election a majority is not received by any candidate for the office of mayor, the two candidates receiving the highest number of votes shall be declared eligible for a second (run-off) election to be held on the second Tuesday next thereafter following the first election.
*(Acts 1988, No. 88-445, p. 660, §4.01; Acts 1988, 1st Ex. Sess., No. 88-331, p. 293, §4; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-71** Statement of Candidacy {#sec-11-44e-71 omnilex-key=us-al-statutes--title-11--11-44E-71}
Any person desiring to become a candidate at any election for the office of mayor may become such candidate by filing in the office of the city clerk a statement in writing of such candidacy, accompanied by a petition signed by a minimum of 100 registered voters of such city endorsing the candidacy of such candidate and an affidavit taken and certified by such city clerk or by a notary public that such person is duly qualified to hold the office for which he (she) desires to be a candidate. Such statement shall be filed by 5:00 p.m. on the fourth Tuesday in June preceding the day set for such election and shall be in substantially the following form:
“State of Alabama, _____ County. I, the undersigned, being first duly sworn, depose and say that I am a citizen of the City of _____, in said State and County, and reside at _____ in said City of _____, that I desire to become a candidate for the office of mayor in said City at the election for said office to be held on the _____ day of _____ and that I am duly qualified to hold said office if elected thereto and I hereby request that my name be printed upon the official ballot at said election.
Signed ________;
Sworn to and subscribed before me by said _____ on this _____ day of _____, 2__, and filed in this office for record on said day _____, City Clerk.”
Said statement shall be accompanied by a qualifying fee in the amount equal to $300.00 which qualifying fee shall be paid over by the city clerk to the general fund of the city. Any person may file with the city clerk, a verified pauper’s oath that he (she) does not have the financial resources to pay a qualifying fee and thereupon shall be exempt from filing such fee. No names shall appear upon said ballot as a candidate for election except the names of such persons as have become candidates according to provisions of this chapter.
*(Acts 1988, No. 88-445, p. 660, §4.02; Acts 1988, 1st Sp. Sess., No. 88-831, p. 293, §5; Act 2011-252, p. 450, §1.)*
##### **§ 11-44E-72** Eligibility of Candidates {#sec-11-44e-72 omnilex-key=us-al-statutes--title-11--11-44E-72}
The candidates for office of mayor shall have been qualified electors of the city for at least one year prior to qualifying, shall be at least 19 years of age, and shall hold no other public office, except that of notary public or a member of the National Guard, Naval or Military Reserve, or the city commission. The candidates for mayor shall reside in any district within the city.
*(Acts 1988, No. 88-445, p. 660, §4.03.)*
##### **§ 11-44E-73** Compensation; Increase or Decrease of Compensation; Bond {#sec-11-44e-73 omnilex-key=us-al-statutes--title-11--11-44E-73}
The compensation of the mayor elected during the first election held under the terms of this chapter shall be the sum of $42,000.00 per annum.
The fees, salary, or compensation of the mayor whose election is authorized by this chapter shall not be increased or diminished during the term for which he (she) shall be elected provided, however, that the commission shall have authority and power to adjust such fees, salaries, or compensation for the succeeding term.
The mayor shall be bonded in the minimum amount of $50,000.00, and such additional amount as the commission may determine, if any. Such bond will be at the expense of the city.
*(Acts 1988, No. 88-445, p. 660, §4.04; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-74** Vacancy in Office of Mayor; Acting Mayor; Special Election; Qualification, Duties, and Term of Successor {#sec-11-44e-74 omnilex-key=us-al-statutes--title-11--11-44E-74}
Whenever a vacancy in the office of mayor shall occur by reason of death, resignation, removal, or any other cause, including physical or mental incapacity, the senior member of the commission based on consecutive time in service as commissioner shall serve as acting mayor until an acting mayor is selected by the commission. An acting mayor shall be selected by a majority vote of the commission and shall assume the duties of the office of mayor effective on the date selected and shall serve as acting mayor until a new mayor is elected and qualified as hereinafter provided. The acting mayor shall receive no compensation, expenses, or allowances as a commissioner while acting as mayor, but shall receive the same rate of pay and allowances provided for the mayor whose vacated office the acting mayor fills. The election commission of the city, if there be one, and if not then the commission thereof, shall within five days of the occurrence of a vacancy in the office of mayor call a special election to fill the vacancy, the election to be held on a Tuesday not less than 30 days and not more than 60 days from the occurrence of the vacancy. Notwithstanding the foregoing, if a regular or special election is scheduled or required to be held within 90 days after the occurrence of the vacancy but more than 30 days after the occurrence, then the vacancy in the office of mayor will be filled at the regular or special election. Notice of the election shall be given at the expense of the city by one publication at least 18 days in advance of the election in one or more newspapers published in the city. The method, procedure, and requirements of qualifying, voting upon, and determining the successful candidate shall be the same as is provided herein relative to the election of the mayor at regular elections, except that statements of candidacy must be filed at least 20 days before the date set for such election. The successor to the mayor chosen at any such election shall qualify for office as soon as practical thereafter, and shall be clothed with and assume the duties, responsibilities, and powers of such office immediately upon qualification and shall hold office for the unexpired term of the predecessor and until a successor is elected and qualified.
*(Acts 1988, No. 88-445, p. 660, §4.05; Acts 1990, No. 90-287, p. 379, §1; Act 2003-387, §1.)*
##### **§ 11-44E-75** Powers and Duties of Mayor {#sec-11-44e-75 omnilex-key=us-al-statutes--title-11--11-44E-75}
The mayor shall have the following powers and duties:
(1) To serve as the presiding officer of the commission.
(2) To vote and have the same privileges as any member of the commission.
(3) To represent the city in ceremonial functions.
(4) To serve as chief executive officer.
(5) To develop the basic objectives and policies of the city in conjunction with the commission and with the advice of the city manager.
(6) To insure that adequate plans for the future development and growth of the city are prepared; participate in the preparation; and periodically present such plans for general review and approval by the commission; and present such proposals to the commission for review and approval.
(7) To plan in conjunction with the commission for the development of resources within the city and maintain programs which will encourage successful future management of the city.
(8) To succeed to all powers, rights, and privileges conferred upon the mayor of the city by statutes and laws of Alabama in effect at the time of adoption by the city of the mayor/commission/city manager form of government and not in conflict with this chapter.
(9) To designate the mayor pro-tem in the temporary absence of the mayor.
(10) With commission approval, to take such steps as may be necessary to protect and enhance the city’s fiscal posture.
(11) To develop proposed rules of procedure for consideration by the commission.
*(Acts 1988, No. 88-445, p. 660, §4.06; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-76** Payment of All Funds {#sec-11-44e-76 omnilex-key=us-al-statutes--title-11--11-44E-76}
The payment of all funds shall be by checks or warrants signed by the city clerk and countersigned by the mayor, provided, however, a facsimile thereof may be used for such signing. During the absence of the mayor from the corporate limits of the city, and necessity therefore arising, checks or warrants may be countersigned by the mayor pro-tem designated by the mayor to act in his (her) stead. All such disbursements shall be authorized by resolution of the commission.
*(Acts 1988, No. 88-445, p. 660, §4.07.)*
#### **Article 5** City Manager
##### **§ 11-44E-90** Creation of Office of City Manager {#sec-11-44e-90 omnilex-key=us-al-statutes--title-11--11-44E-90}
The office of the city manager is hereby created under sole authority of this chapter.
*(Acts 1988, No. 88-445, p. 660, §5.01.)*
##### **§ 11-44E-91** Appointment of City Manager; Qualifications; Residence; Noneligibility of Elected Officials {#sec-11-44e-91 omnilex-key=us-al-statutes--title-11--11-44E-91}
The city manager shall be appointed by a majority vote of the commission. He (She) shall be chosen without regard to political beliefs and solely upon the basis of his (her) executive and administrative qualifications, with special recognition to his (her) actual experience in, or knowledge of, the duties of his office as defined by this chapter. The choice shall not be limited to inhabitants of the city or the State of Alabama, but once appointed to the office, the city manager shall reside within the city. No elected official of the city shall be appointed to the position of city manager during the term for which he (she) shall have been elected nor within one year after the expiration of such term.
*(Acts 1988, No. 88-445, p. 660, §5.02.)*
##### **§ 11-44E-92** Powers and Duties of City Manager {#sec-11-44e-92 omnilex-key=us-al-statutes--title-11--11-44E-92}
The city manager shall be the administrative head of the city. He (She) shall devote all his (her) working time and attention to the affairs of the city and shall be responsible to the commission for the efficient administration of all the affairs of the city over which he (she) has jurisdiction. He (She) shall have the power and it shall be his (her) duty:
(1) To administer the policies of the commission, the code of ordinances of the city, and state and federal laws pertaining to the city as provided herein. For the purpose of said administration, the commission does hereby authorize and direct the city manager to see that all duties and authority conferred upon it by law, all city ordinances, resolutions, policies, and directives are carried out, and any and all his (her) acts shall be for and in the name of the city and/or the commission; provided, however, there is hereby excepted and excluded those duties and authority given by the commission, state, and federal laws to other boards, agencies, and officials.
(2) To direct the affairs of all department heads and to appoint and, when necessary for the good of the service, discipline, and remove all heads of departments, or other employees appointed by the city manager. Said appointments and removal shall be done only upon the recommendation of the city manager and subsequent approval by the commission. All such appointments shall be made upon merit and fitness alone. The city manager may, without notice, cause the affairs of any department head or employee to be examined. All appointments, removals, or suspensions shall be subject to regulations, authority, and provisions of any civil service act or merit system act relating to such city.
(3) To exercise control over all departments under his (her) supervision now in existence or that may hereinafter be created by the commission.
(4) To recommend to the commission the creating, consolidating, and combining of offices, positions or departments of the administrative and operational departments of the city.
(5) To plan, organize, and supervise the operations of the city’s various department heads so as to promote harmony, economy, efficiency, and cooperation among the departments and with the other agencies, commissions, and committees as hereinabove set forth.
(6) To investigate all complaints in relation to matters concerning the administration and operation of the city government and services maintained by the public utilities of the city.
(7) To see that all terms and conditions imposed in favor of the city or its inhabitants in any public utility franchise are faithfully kept and performed and, upon the knowledge of any violation thereof, to call the same to the attention of the commission.
(8) The city manager, or an officer appointed by him (her), shall be the purchasing agent for the city for purchases for departments under his (her) control.
(9) To attend all meetings of the commission with the right to take part in the discussions but having no vote. The city manager shall be entitled to notice of all special meetings.
(10) To keep the commission fully advised at all times as to the financial condition and needs of the city.
(11) To prepare, or cause to be prepared, each year, an operations budget and supplemental budget as provided in Article 6 of this chapter.
(12) To cause to be prepared and presented to the commission semiannually a statement showing the exact financial condition of the city as of the end of the preceding quarter and showing amounts appropriated, amounts expended, and unexpended balance of the items of appropriation.
(13) To recommend to the commission adoption of such measures as he (she) may deem necessary or expedient.
(14) To insure that proper accounting procedures are established and followed.
(15) To seek to improve the relationship between the city government and the public by the formulation of an adequate program which shall include personnel training as well as public relations.
(16) To perform such other lawful duties as may be required by resolution or ordinance of the commission.
(17) To assure that each administrative unit of the municipality develops written operating procedures for that unit.
*(Acts 1988, No. 88-445, p. 660, §5.03.)*
##### **§ 11-44E-93** Noninterference by Mayor or Commission with Certain Duties of City Manager; Dealings with Administrative Service {#sec-11-44e-93 omnilex-key=us-al-statutes--title-11--11-44E-93}
Neither the mayor, commission nor any of its members shall direct the employment or removal of any person by the city manager or by any of his (her) subordinates in the administrative service of the city. Appointments or removals of employees not subject to a civil service or merit act will be done in conformity with Section 11-44E-92(2). Except for the purposes of inquiry and investigation held in a manner firmly established by resolution or ordinance in advance of such inquiry and investigation, the commission and its members shall deal with the administrative service of the city solely through the city manager, and neither the commission nor any member thereof shall give orders, either publicly or privately, to any employee under the supervision of the city manager, except in emergencies.
*(Acts 1988, No. 88-445, p. 660, §5.04.)*
##### **§ 11-44E-94** Political, Other Improper Influences on City Manager and Personnel Under His (Her) Authority Prohibited; Ineligibility of Candidates for Public Office to Continue Employment {#sec-11-44e-94 omnilex-key=us-al-statutes--title-11--11-44E-94}
Neither the city manager nor any person appointed by him (her) or seeking appointment by him (her) shall be appointed, promoted, reduced, removed, or in any way favored or discriminated against because of his (her) political opinions or affiliations. Neither the city manager nor any officer or employee directly appointed by the city manager shall continue in such position after becoming a candidate for nomination or election to any municipal public office. No person appointed by the city manager, or seeking appointment by him (her), shall either directly or indirectly give, render, or pay any money, service, or other valuable thing to any person for, or on account of, or in connection with, his (her) test, appointment, proposed appointment, promotion, or proposed promotion.
*(Acts 1988, No. 88-445, p. 660, §5.05.)*
##### **§ 11-44E-95** Bond of City Manager {#sec-11-44e-95 omnilex-key=us-al-statutes--title-11--11-44E-95}
The city manager, before entering upon the discharge of his (her) duties, shall give bond in the penal sum of not less than $50,000.00 payable to the city and for the benefit of the city, and for the use and benefit of the public, to secure and indemnify the city and any of the public by reason of his (her) default, misfeasance, or nonfeasance in the performance of his (her) duties. Expenses of providing such bond shall be paid by the city.
*(Acts 1988, No. 88-445, p. 660, §5.06.)*
##### **§ 11-44E-96** Compensation of City Manager {#sec-11-44e-96 omnilex-key=us-al-statutes--title-11--11-44E-96}
The city manager shall receive such compensation as, from time to time, may be approved by the commission as is specified in any employment contract that may exist between the commission and city manager.
*(Acts 1988, No. 88-445, p. 660, §5.07.)*
##### **§ 11-44E-97** Eligibility and Participation in City Retirement and Insurance Plans {#sec-11-44e-97 omnilex-key=us-al-statutes--title-11--11-44E-97}
The city manager shall be eligible and may participate in the retirement system and the group insurance plan of the city.
*(Acts 1988, No. 88-445, p. 660, §5.08.)*
##### **§ 11-44E-98** Contract Between City Manager and City {#sec-11-44e-98 omnilex-key=us-al-statutes--title-11--11-44E-98}
The tenure, compensation, and duties as provided by law of the city manager shall be enumerated in a contract between the city manager and the city. The contract shall not exceed two years in length with two, one-year renewal options. Commencing on October 1, 2009, the contract shall not exceed four years in length with two, one-year renewal options.
*(Acts 1988, No. 88-445, p. 660, §5.09; Act 2009-355, p. 678, §1.)*
##### **§ 11-44E-99** Vacancies in Office of City Manager {#sec-11-44e-99 omnilex-key=us-al-statutes--title-11--11-44E-99}
In the case of a vacancy in the office of city manager, the commission may appoint an acting city manager who shall possess the powers and duties of the city manager until such time as a new city manager is appointed by the commission. The acting city manager shall be compensated at no less than the level as the preceding city manager.
*(Acts 1988, No. 88-445, p. 660, §5.10.)*
##### **§ 11-44E-100** Temporary Absence or Disability of City Manager {#sec-11-44e-100 omnilex-key=us-al-statutes--title-11--11-44E-100}
During the temporary absence or disability of the city manager, the city manager shall designate the appropriate department head to serve in his (her) absence with the city commission’s approval.
*(Acts 1988, No. 88-445, p. 660, §5.11.)*
#### **Article 6** Budget
##### **§ 11-44E-110** Fiscal, Budget, and Accounting Year {#sec-11-44e-110 omnilex-key=us-al-statutes--title-11--11-44E-110}
The fiscal year of the city government shall begin on the first day of October and shall end on the last day of September of each calendar year. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term “budget year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
*(Acts 1988, No. 88-445, p. 660, §6.01.)*
##### **§ 11-44E-111** Submission of Budgets {#sec-11-44e-111 omnilex-key=us-al-statutes--title-11--11-44E-111}
On a day to be fixed by the commission, but in no case later than the 1st day of September in each year the city manager shall submit to the commission:
(1) A separate current revenue and expense budget for the general operation of the city government to be known as “operations budget”; and
(2) A budget message.
On a day to be fixed by the commission, but in no case later than the 20th day of March each year the city manager shall submit to the commission:
(1) A supplemental budget, which shall encompass new programs or activities, capital expenditures, and new personnel additions; and
(2) A budget message.
When submitting budgets to the commission, the city manager shall submit his recommendation of new sources of revenue or manner of increasing existing sources of revenue, sufficient to balance the budgets, if such additional revenue is necessary to accomplish that purpose.
*(Acts 1988, No. 88-445, p. 660, §6.02; Acts 1988, 1st Sp. Sess., No. 88-831, p. 293, §6.)*
##### **§ 11-44E-112** Five-Year Plan {#sec-11-44e-112 omnilex-key=us-al-statutes--title-11--11-44E-112}
The city manager shall submit to the commission on an annual basis at least a five-year projection of revenue and expenses. In addition, the plan shall include a projection of personnel, program, and capital needs along with a ranking of such by priority. This document shall be known as the five-year plan and without binding the commission shall be used as a budgeting tool.
*(Acts 1988, No. 88-445, p. 660, §6.03.)*
#### **Article 7** Commission Districts
##### **§ 11-44E-120** Division of City into Six Single-Member Districts {#sec-11-44e-120 omnilex-key=us-al-statutes--title-11--11-44E-120}
The territorial limits of the city shall remain the same as under its former organization, except that for the purpose of holding elections under applicable laws, the present governing body shall by duly enacted ordinance, divide such city into six single-member districts, each containing as nearly as practical equal population according to the last federal decennial census.
*(Acts 1988, No. 88-445, p. 660, §7.01; Acts 1990, No. 90-287, p. 379, §1.)*
##### **§ 11-44E-121** Reapportionment {#sec-11-44e-121 omnilex-key=us-al-statutes--title-11--11-44E-121}
Whenever there shall be a change in population in any of the districts heretofore established, evidenced by a federal decennial census of population published following the last federal census of population preceding the adoption of this chapter, there shall be a reapportionment of the commission districts in the manner hereinafter provided:
(1) The mayor and commissioners shall within six months after the publication of each federal census of population for the city, following the last federal decennial census of population preceding the adoption of this chapter, or if within six months after there shall have been any change in the corporate limits of the city, file with the commission a report containing a recommended plan for reapportionment of the commission district boundaries to comply with the following specifications:
a. Each district shall be formed of contiguous, and to the extent reasonably possible, compact territory, and its boundary lines shall be the center lines of streets or other well-defined boundaries.
b. Each district shall contain as nearly as is practicable the same population.
(2) The report shall include a map and description of the districts recommended and shall be drafted as a proposed ordinance and considered by the commission as other ordinances are considered. Input shall be solicited from the community.
(3) The commission shall enact a redistricting ordinance within six months after receiving such report.
*(Acts 1988, No. 88-445, p. 660, §7.02; Acts 1990, No. 90-287, p. 379, §1.)*
#### **Article 8** Succession in Government
##### **§ 11-44E-140** Rights of Officers and Employees Preserved {#sec-11-44e-140 omnilex-key=us-al-statutes--title-11--11-44E-140}
Nothing in this chapter contained, except as specifically provided, shall affect or impair the rights or privileges of officers or employees of the city or of any office, department, or agency existing at the time when this chapter shall take effect, or any provision of law in force at the time when the mayor/commission/city manager form of government shall be adopted and not inconsistent with the provisions of this chapter, in relation to the personnel, appointment, ranks, grades, tenure of office, promotion, removal, pension and retirement rights, civil rights, or any other rights or privileges of officers or employees of the city or any office, department, or agency thereof.
*(Acts 1988, No. 88-445, p. 660, §8.01.)*
##### **§ 11-44E-141** Continuance of Present Officers; Exercise of Powers of Abolished Agency by Agency Designated by Commission {#sec-11-44e-141 omnilex-key=us-al-statutes--title-11--11-44E-141}
All persons holding administrative office at the time the mayor/commission/city manager form of government is adopted shall continue in office and in the performance of their duties until provision shall have been made in accordance therewith for the performance of such duties or the discontinuance of such office. The powers conferred and the duties imposed upon any office, department or agency of the city by the laws of the state shall, if such office, department or agency be abolished by this chapter or under its authority, be thereafter exercised and discharged by the office, department, or agency designated by the commission unless otherwise provided herein.
*(Acts 1988, No. 88-445, p. 660, §8.02.)*
##### **§ 11-44E-142** Continuance of Officers and Employees Holding Positions in Classified Service {#sec-11-44e-142 omnilex-key=us-al-statutes--title-11--11-44E-142}
Any person holding an office or position in the classified service of the city under any civil service or merit system applicable to the city when the mayor/commission/city manager form of government is adopted shall continue as such officer or employee in the classified service of the city under the mayor/commission/city manager form of government and with the same status, rights, and privileges and subject to the same conditions under such applicable civil service or merit system as if the mayor/commission/city manager form of government had not been adopted.
*(Acts 1988, No. 88-445, p. 660, §8.03.)*
##### **§ 11-44E-143** Transfer of Agency Records and Property {#sec-11-44e-143 omnilex-key=us-al-statutes--title-11--11-44E-143}
All records, property, and equipment whatsoever of any office, department, or agency or part thereof, all the powers and duties of which are assigned to any other office, department, or agency of this chapter, shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned. If part of the powers and duties of any office, department, or agency or part thereof are by this chapter assigned to another office, department, or agency, all records, property, and equipment relating exclusively thereto shall be transferred and delivered to the office, department, or agency to which such powers and duties are so assigned.
*(Acts 1988, No. 88-445, p. 660, §8.04.)*
##### **§ 11-44E-144** Office, Etc., with Name or Powers and Duties the Same or Substantially Same as Existing Office Deemed a Continuation of Such Office {#sec-11-44e-144 omnilex-key=us-al-statutes--title-11--11-44E-144}
Any office, department, board, or agency provided for in this chapter with a name or with powers and duties the same or substantially the same as those of an office, department, or agency heretofore existing shall be deemed to be a continuation of such office, department, or agency and, until otherwise provided, shall exercise its powers and duties in continuation of their exercise by the office, department, board, or agency by which the same were heretofore exercised and, until otherwise provided, shall have power to continue any business, proceeding, or other matter within the scope of its regular powers and duties commenced by an office, department, or agency by which such powers and duties were heretofore exercised. Any provision in any law, rule, regulation, contract, grant, or other document relating to such a formerly existing office, department, or agency, shall, so far as not inconsistent with the provisions of this chapter, apply to such office, department, or agency provided for by this chapter.
*(Acts 1988, No. 88-445, p. 660, §8.05.)*
##### **§ 11-44E-145** Existing Contracts Continued in Force; Public Improvements for Which Legislative Steps Taken {#sec-11-44e-145 omnilex-key=us-al-statutes--title-11--11-44E-145}
All contracts entered into by the preceding form of government, shall continue in full force and effect. Public improvements for which legislative steps have been taken under laws existing at the time of the adoption of the mayor/commission/city manager form of government may be carried to completion as nearly as practicable in accordance with the provisions of such existing laws.
*(Acts 1988, No. 88-445, p. 660, §8.06.)*
##### **§ 11-44E-146** Pending Legal Actions and Proceedings {#sec-11-44e-146 omnilex-key=us-al-statutes--title-11--11-44E-146}
No action or proceeding, civil or criminal, pending at the time of the adoption of the mayor/commission/city manager form of government, brought by or against the city or any office, department, or agency or officer thereof, shall be affected or abated by the adoption of the mayor/commission/city manager form of government or by anything herein contained in this chapter; but all such actions or proceedings may be continued notwithstanding that functions, powers, and duties of any office, department, or agency, or officer party thereto may by or under this chapter be assigned or transferred to another office, department, or agency or officer, but in that event the same may be prosecuted or defended by the head of the office, department, or agency to which such functions, powers, and duties have been assigned or transferred under this chapter.
*(Acts 1988, No. 88-445, p. 660, §8.07; Acts 1989, No. 89-525.)*
##### **§ 11-44E-147** Laws Relating to Pensions or Retirement and Relief Funds Continued in Force {#sec-11-44e-147 omnilex-key=us-al-statutes--title-11--11-44E-147}
All laws and parts of laws relating to pensions, retirement, and relief funds for policemen, firemen, and other employees of the city, contained in the general or local laws of the state, as the same may apply and be in effect with respect to any city at the time when such city shall elect to be governed by the provisions of this chapter, shall continue in full force and effect, and without interruption or change as to any rights which have been acquired thereunder, after adoption of the mayor/commission/city manager form of government by such city.
*(Acts 1988, No. 88-445, p. 660, §8.08.)*
##### **§ 11-44E-148** Laws Relating to Authority for Fairgrounds, Etc., Continued in Force {#sec-11-44e-148 omnilex-key=us-al-statutes--title-11--11-44E-148}
All laws and parts of laws relating to establishment of an authority for fairgrounds, parks, exhibits, exhibitions, and other installations, facilities, and places for the amusement, entertainment, recreation, and cultural development of the citizens of a city, and for the powers, authority, mode of financing, and conduct of the same, contained in the general or local laws of the state, as amended, or as the same may apply and be in effect with respect to any city at the time when such city shall elect to be governed by the provisions of this chapter, shall continue in full force and effect, and without interruption or change as to the establishment or conduct of any authority created thereunder, after adoption of the mayor/commission/city manager form of government by such city.
*(Acts 1988, No. 88-445, p. 660, §8.09.)*
##### **§ 11-44E-149** Ordinances and Resolutions Continued in Effect {#sec-11-44e-149 omnilex-key=us-al-statutes--title-11--11-44E-149}
All ordinances and resolutions of the city in effect at the time of adoption by the city of the mayor/commission/city manager form of government herein set up shall continue in effect unless and until changed or repealed by the commission.
*(Acts 1988, No. 88-445, p. 660, §8.10.)*
#### **Article 9** Code of Conduct and Penalties for Violations of This Chapter
##### **§ 11-44E-160** Party Caucus or Primary for Nomination of Candidates for Mayor or Commissioner Prohibited {#sec-11-44e-160 omnilex-key=us-al-statutes--title-11--11-44E-160}
It shall be unlawful to hold a party caucus or primary for the purpose of nominating any candidate for the office of mayor or commissioner and any candidate who solicits, receives, or accepts a party or caucus nomination for any office shall be ineligible for such office or any other municipal office for a period of four years thereafter.
*(Acts 1988, No. 88-445, p. 660, §9.01; Acts 1989 No. 89-525, p. 1074, §1.)*
##### **§ 11-44E-161** Bribes; Transportation of Voters to Polls {#sec-11-44e-161 omnilex-key=us-al-statutes--title-11--11-44E-161}
It shall be unlawful for any candidate for office or any officer in the city, directly or indirectly, to give or promise any person or persons an office, position, benefit, or anything of value for the purpose of influencing or obtaining the political support, aid, or vote of any person or persons, or for any candidate to provide or use any trucks, automobiles or other vehicles for the purpose of transporting voters to the polls on election day.
*(Acts 1988, No. 88-445, p. 660, §9.02.)*
##### **§ 11-44E-162** Statement of Campaign Contributions {#sec-11-44e-162 omnilex-key=us-al-statutes--title-11--11-44E-162}
Each candidate for city office provided for by this chapter shall, not later than 30 days after the election, file with the city clerk his (her) sworn itemized statement in detail of each contribution received by him (her) or any person or committee acting in his (her) behalf, specifying the amount of same, the full name and address of the contributor, and each campaign-related expenditure in excess of $50.00, specifying the name and address of the person or company to whom the expenditure was made. The statement shall also list the total amount of contributions received and the total amount of campaign expenditures made by the candidate or any person or committee acting in his (her) behalf. The statement shall be published one time, at the expense of the city, in a newspaper of general circulation in the city.
*(Acts 1988, No. 88-445, p. 660, §9.03.)*
##### **§ 11-44E-163** Financial Interest in Public Service Utility {#sec-11-44e-163 omnilex-key=us-al-statutes--title-11--11-44E-163}
No mayor or commissioner or any other official of the city, nor any employee thereof, shall be financially interested in any corporation operating any public service utility within the city; provided, however, this shall not apply to any employment or interest existing at the time of the selection or election of such mayor or commissioner or other official.
*(Acts 1988, No. 88-445, p. 660, §9.04.)*
##### **§ 11-44E-164** Election Bribes; False Statement as to Qualification to Vote; Voting or Offering to Vote by Person Who Is Not Qualified {#sec-11-44e-164 omnilex-key=us-al-statutes--title-11--11-44E-164}
Any person offering to give a bribe, either in money or other consideration, to any voter for the purpose of influencing his (her) vote at any election provided for in this chapter, or any voter entitled to vote at such election, receiving and accepting such bribe or other consideration, or any person making false answer to any of the provisions of this chapter relative to his (her) qualifications to vote at an election, or any person willfully voting or offering to vote at such election, who has not complied with the residency requirements provided for by general law, or who is not voting age, or is not a citizen of the United States, or knowing himself (herself) not to be a qualified voter of the precinct, where he (she) offers to vote, or any person knowingly procuring, aiding or abetting any violation hereof, shall be deemed guilty of a misdemeanor and punished as provided by law.
*(Acts 1988, No. 88-445, p. 660, §9.05.)*
##### **§ 11-44E-165** Employee Involvement in Elections {#sec-11-44e-165 omnilex-key=us-al-statutes--title-11--11-44E-165}
Any employee of any such city shall not wear signs or election material at his (her) place of employment or work.
*(Acts 1988, No. 88-445, p. 660, §9.06.)*
##### **§ 11-44E-166** Hiring of Persons to Solicit Votes at Polls on Election Day {#sec-11-44e-166 omnilex-key=us-al-statutes--title-11--11-44E-166}
It shall be unlawful for any candidate for mayor or commissioner, or for any other person in his (her) behalf, to hire, or pay or agree to pay, any person to solicit votes at the polls on election day, and it shall also be unlawful for any person to accept such hire, or make contract for pay, to solicit votes for any candidate for mayor or commissioner.
*(Acts 1988, No. 88-445, p. 660, §9.07.)*
##### **§ 11-44E-167** Penalties for Violations of This Chapter; Disqualification of Candidate {#sec-11-44e-167 omnilex-key=us-al-statutes--title-11--11-44E-167}
Any person willfully violating any provisions of this chapter relating to the mayor/commission/city manager form of government for which penalties have not otherwise been prescribed shall be guilty of a misdemeanor, and on conviction shall be fined not less than $50.00 nor more than $500.00 or may be sentenced to hard labor for the county for a term not to exceed six months, or both. Furthermore, any candidate for the office of commissioner or mayor, shall be disqualified from holding municipal office for a period of four years from such conviction.
*(Acts 1988, No. 88-445, p. 660, §9.08.)*
##### **§ 11-44E-168** Recall of Elected Official {#sec-11-44e-168 omnilex-key=us-al-statutes--title-11--11-44E-168}
The mayor or any commissioner shall be subject to recall. To institute a recall election, any registered voter may present a petition to the city clerk having the signatures of no less than 30 percent of the registered voters having voted in the last preceding election. Such petition shall contain the following statement:
Signatures of those signing the petition along with residential addresses shall follow.
Upon receipt of such petition, the city clerk shall make arrangements under Alabama law to hold such election within 30 days of receipt by the city clerk of such petition.
Provided that a majority of registered voters vote for the recall, then the city clerk shall thereupon declare that office vacant and the office holder shall no longer be an elected official.
The office holder’s successor shall be named as prescribed elsewhere in this chapter.
*(Acts 1988, No. 88-445, p. 660, §9.09.)*
#### **Article 10** General Provisions
##### **§ 11-44E-180** Removal of Officers and Employees; Appeal {#sec-11-44e-180 omnilex-key=us-al-statutes--title-11--11-44E-180}
Subject to the provisions of any civil service or merit system applicable to the city, and Section 11-44E-92, any officer or employee or a head of any office, department, or agency, may be removed by the city manager or other appointing officer at any time, and the decision of the city manager, or other appointing officer shall be subject to appeals therefrom, if any are provided by applicable law.
*(Acts 1988, No. 88-445, p. 660, §10.01; Acts 1988, 1st Sp. Sess., No. 88-831, p. 293, §7.)*
##### **§ 11-44E-181** Appointment of Committees; Inquiries and Investigations by Commission, Etc.; Subpoenas; Failure to Obey Subpoena {#sec-11-44e-181 omnilex-key=us-al-statutes--title-11--11-44E-181}
Any committee of the commission or comprised of members of the commission shall be appointed by the mayor only. Any other committee comprised solely of noncommission members shall be appointed by the mayor and commissioners. The commission or any person or committee authorized by them, shall have power by resolution to inquire into the conduct of any office, department, agency, or officer of the city and to make investigations as to municipal affairs, and for that purpose may subpoena any person to produce books, papers, and other evidence. Failure to obey such subpoena or to produce books, papers, or other evidence as ordered under the provisions of this section shall constitute a misdemeanor and shall be punishable by a fine not to exceed $100.00, or by imprisonment not to exceed 10 days, or both.
*(Acts 1988, No. 88-445, p. 660, §10.02.)*
##### **§ 11-44E-182** Contracts Extending Beyond One Year {#sec-11-44e-182 omnilex-key=us-al-statutes--title-11--11-44E-182}
No contract involving the payment of money out of the appropriation of more than one year shall be made for a period of more than five years, nor shall any such contract be valid unless made or approved by resolution or ordinance.
*(Acts 1988, No. 88-445, p. 660, §10.03.)*
##### **§ 11-44E-183** Interest of Official or Employee in Contracts with City or Public Utility Prohibited; Acceptance of Gifts, Etc.; Penalty {#sec-11-44e-183 omnilex-key=us-al-statutes--title-11--11-44E-183}
No member of the commission, the mayor, officer, or employee appointed shall be financially interested, directly or indirectly, in any contract for work or material, or the profits thereof, in services to be furnished or performed for the city; and no such member of the commission, the mayor, or employee shall be financially interested, directly or indirectly, in any contract for work or material, or the profits thereof, in any services to be furnished or performed for any person, firm, or corporation operating interurban railway, street railway, gas works, cable television systems, electric light or power plant, heating plant, telegraph line, or telephone exchange within the territorial limits of said city. No such member of the commission, the mayor, officer, or employee of such city shall be interested in or be an employee or an attorney of any corporation operating any public service utility within said city. No such member of the commission, officer, or employee shall accept or receive, directly or indirectly, from any person, firm, or corporation operating within the territorial limits of said city any cable television system, railway, gas works, water works, electric light or power plant, heating plant, telegraph line, or telephone exchange, or other business using or operating under a public franchise, any frank, free pass, free ticket or free service, or accept or receive, directly or indirectly, from any such person, firm, or corporation, any gift or other thing of value, or any service upon terms more favorable than are granted to the public generally. Any violation of the provisions of this section shall be a misdemeanor, and upon conviction thereof, the guilty person shall be punished by a fine of not less than $100.00 nor more than $300.00.
*(Acts 1988, No. 88-445, p. 660, §10.04.)*
##### **§ 11-44E-184** Bonds of Employees {#sec-11-44e-184 omnilex-key=us-al-statutes--title-11--11-44E-184}
Such employees as required by Alabama law and those required by the commission, shall give bond in such amount and with such surety as may be approved by the commission. The premiums on such bonds shall be paid by the city.
*(Acts 1988, No. 88-445, p. 660, §10.05.)*
##### **§ 11-44E-185** Oath of Office {#sec-11-44e-185 omnilex-key=us-al-statutes--title-11--11-44E-185}
Every officer of the city shall before entering upon the duties of his (her) office, take and subscribe to the oath or affirmation as required by law to be filed and kept in the office of the city clerk.
*(Acts 1988, No. 88-445, p. 660, §10.06.)*
##### **§ 11-44E-186** Continuation of Laws {#sec-11-44e-186 omnilex-key=us-al-statutes--title-11--11-44E-186}
All laws relating to the school board, library board, hospital board, airport board, housing authority, plumbers or electricians board, planning board, zoning board, park or recreation board, municipally owned public utility and any municipally owned service enterprise, including inter alia, electric, gas and water boards, agencies, etc., and any board, authority, agency, etc., given such independent status, as the same may apply and be in effect at the time when such municipality shall elect to be governed by the provisions of this chapter, shall continue in full force and effect and without interruption or change as to the establishment or conduct of any such authority, board, or agency, until otherwise provided by law.
*(Acts 1988, No. 88-445, p. 660, §10.07; Acts 1989, No. 89-525, p. 1074, §1.)*
##### **§ 11-44E-187** Inclusion of Annexed Territory into Districts {#sec-11-44e-187 omnilex-key=us-al-statutes--title-11--11-44E-187}
Upon the adoption of any ordinance providing for the addition or deletion of territory into the city limits of the city, such ordinance shall provide for the inclusion of such territory into one of the districts of the city.
*(Acts 1988, No. 88-445, p. 660, §10.08.)*
#### **Article 11** Abandonment of Mayor/Commission/City Manager Form of Government
##### **§ 11-44E-200** Authority to Change from Mayor/Commission/City Manager Form of Government {#sec-11-44e-200 omnilex-key=us-al-statutes--title-11--11-44E-200}
No city may change from the mayor/commission/city manager form of government within two years after adoption thereof. At the end of such period, or at any time thereafter, the city may change its form of municipal government to any form of municipal government provided by the laws of Alabama.
*(Acts 1988, No. 88-445, p. 660, §11.01.)*
##### **§ 11-44E-201** Petition for Change of Form of Government; Election as to Proposed Change; Election of New Officers and Governing Body; Termination of Term of Office of Mayor and Commissioners {#sec-11-44e-201 omnilex-key=us-al-statutes--title-11--11-44E-201}
Any proposal to change the form of government shall be initiated by a petition signed by at least the number of qualified voters, equal to four for every 100 inhabitants of the city or fraction thereof according to the last federal census, and then filed with the city clerk. The city commission shall forthwith order an election, at which the legally qualified voters of the city shall vote for or against the proposed change in form of government. The officers and members of the governing body of such newly adopted form of municipal government shall be elected as soon as practicable under the provisions of law applicable thereto; and upon their election and qualification for office the term of office of all members of the commission and mayor under the mayor/commission/city manager form of government shall terminate.
*(Acts 1988, No. 88-445, p. 660, §11.02.)*
##### **§ 11-44E-202** No Election on Change of Form of Government Within Two Years {#sec-11-44e-202 omnilex-key=us-al-statutes--title-11--11-44E-202}
No election on the abandonment of the mayor/commission/city manager form of government shall be held within two years after any other election thereon.
*(Acts 1988, No. 88-445, p. 660, §11.03.)*
#### **Article 12** General Statutory Provisions
##### **§ 11-44E-220** Effect of Chapter on Existing Law {#sec-11-44e-220 omnilex-key=us-al-statutes--title-11--11-44E-220}
All laws and parts of laws, general, local, or special, relating to or affecting the city, its powers, functions, duties, and property, in force when this chapter shall take effect, are hereby continued in effect; but all such laws relating to the exercise of powers, functions, and duties by the preceding other form of government shall be superseded to the extent that the same are inconsistent with the provisions of this chapter.
*(Acts 1988, No. 88-445, p. 660, §12.01.)*
##### **§ 11-44E-221** Short Title {#sec-11-44e-221 omnilex-key=us-al-statutes--title-11--11-44E-221}
This chapter shall be known and may be cited as the “Mayor/Commission/City Manager Act of 1988.”
*(Acts 1988, No. 88-445, p. 660, §12.03.)*
### **Chapter 44F** Class 8 Municipalities with Mayor-Council Form of Government
#### **Article 1** Abandonment of Commission Form of Government
##### **§ 11-44F-1** Adoption of Mayor-Council Form of Government Where Commission Form Violates Federal Voting Rights Act; Division into Single-Member Districts; Residence Requirements for Candidates and Electors {#sec-11-44f-1 omnilex-key=us-al-statutes--title-11--11-44F-1}
Any Class 8 municipality operating under a commission form of government with its members elected at large and which at large system has been decreed to be in violation of the federal Voting Rights Act by a court of law may, by an ordinance duly adopted not less than three months prior to the regular municipal election, adopt a mayor-council form of government with the mayor elected at large and a five-member council elected from single-member districts. The ordinance shall divide the municipality into five single-member districts of nearly equal population and shall provide that candidates for election for a place on the council shall have resided within the district from which he or she seeks election for a period of 90 days immediately preceding the date of the election, and shall continue to reside in the district he or she represents so long as he or she remains a member of said council. Only electors residing within a district shall be entitled to vote for candidates seeking election for said district.
*(Acts 1988, No. 88-555, p. 871, §1.)*
##### **§ 11-44F-2** Boundaries of Districts {#sec-11-44f-2 omnilex-key=us-al-statutes--title-11--11-44F-2}
The ordinance establishing the districts shall describe the territory composing each district and its boundary line shall be the centerline of streets or other well-defined boundaries.
*(Acts 1988, No. 88-555, p. 871, §1.)*
##### **§ 11-44F-3** Form of Government; Powers and Duties of Municipality {#sec-11-44f-3 omnilex-key=us-al-statutes--title-11--11-44F-3}
The municipality shall thereafter and as provided herein be governed by a mayor elected at large and a five-member council elected from single-member districts, and shall have the same powers and duties as other mayor-council municipalities organized under Title 11, as amended, and any other powers and duties not inconsistent with this chapter which may have therefore been granted to such municipality.
*(Acts 1988, No. 88-555, p. 871, §1.)*
#### **Article 2** Status of Mayor
##### **§ 11-44F-20** Governing Body Authorized to Provide for Referendum to Determine Status of Mayor {#sec-11-44f-20 omnilex-key=us-al-statutes--title-11--11-44F-20}
The governing body of a Class 8 municipality may, by resolution adopted within 60 days after the date on which the United States Justice Department determines not to interpose objection to this article, provide for a referendum of the registered voters of the city or town to determine public opinion as to whether the candidate elected mayor at the 1996 municipal election, and thereafter, shall serve in a full-time capacity. Except as otherwise provided herein, any referendum conducted pursuant to this article shall comply with general municipal election laws for special elections.
*(Acts 1995, No. 95-367, p. 739, §1.)*
##### **§ 11-44F-21** Procedures for Referendum {#sec-11-44f-21 omnilex-key=us-al-statutes--title-11--11-44F-21}
At the referendum, the proposition to be submitted shall be printed in plain prominent type on ballots separate and distinct from ballots used for any other office or question and shall read substantially as follows:
Check one of the following:
Do you favor the Office of Mayor of the City (Town) of _______ being a full-time position with the City (Town) of _______ for the person elected at the 1996 municipal election and thereafter?
Yes ___ No ___.
The voter shall mark the ballot with a cross mark (x) after the proposition which expresses his or her choice. If voting machines are used at any voting place in the referendum, the proposition may, at the discretion of the election commission or other body or official having charge of the conduct of municipal elections, be submitted as separate propositions on the voting machines.
*(Acts 1995, No. 95-367, p. 739, §2.)*
##### **§ 11-44F-22** Ordinance Once Majority of Voters Vote in Favor of Mayor Being Full-Time {#sec-11-44f-22 omnilex-key=us-al-statutes--title-11--11-44F-22}
If a majority of voters vote in favor of the mayor of the Class 8 municipality being full-time, the governing body of the city may provide, by ordinance, that the mayor of the Class 8 municipality shall serve in a full-time capacity, until such time, if any, that the municipality subsequently holds a referendum on the issue as provided by Section 11-44F-25.
*(Acts 1995, No. 95-367, p. 739, §3.)*
##### **§ 11-44F-23** Salary of Mayor {#sec-11-44f-23 omnilex-key=us-al-statutes--title-11--11-44F-23}
Upon certification of the results of the referendum by the election official, the governing body of the municipality shall, at least six months prior to the next regularly scheduled election, establish the salary of the mayor as provided by general law.
*(Acts 1995, No. 95-367, p. 739, §4.)*
##### **§ 11-44F-24** Resolution That Officer Who Fills Vacancy Not Required to Serve Full-Time {#sec-11-44f-24 omnilex-key=us-al-statutes--title-11--11-44F-24}
In the event the mayor is serving on a full-time basis and a vacancy occurs in the office of mayor, the city council may provide, by resolution, that the officer who fills the vacancy would not be required to serve on a full-time basis for the remainder of that term.
*(Acts 1995, No. 95-367, p. 739, §5.)*
##### **§ 11-44F-25** Subsequent Referendum to Reconsider Status of Mayor as Part-Time Position {#sec-11-44f-25 omnilex-key=us-al-statutes--title-11--11-44F-25}
In the event that the governing body of any Class 8 municipality, which has adopted an ordinance pursuant to Section 11-44F-22, shall later determine that it would be in the best interests of the municipality that a subsequent referendum be held to reconsider the status of the mayor as a part-time position in such city (town), then the governing body may, by resolution, provide for a subsequent referendum upon the issue and, if so provided, the ballot shall be substantially as set forth in Section 11-44F-21, except that the question presented shall read substantially as follows:
Check one of the following:
Do you favor that the office of mayor of the City (Town) of _______ shall no longer be required to be a full-time position?
Yes ___ No ___.
If a majority of the voters voting cast their votes in favor of no longer requiring the position of mayor to be full time, then the governing body of the municipality may adopt an ordinance in effect repealing the previous ordinance requiring the mayor to serve in a full-time position, and the ordinance shall become effective when the next mayor takes office. The votes shall be canvassed and certified in the same manner as provided by Section 11-44F-23 and the governing body shall establish the salary of the mayor at least six months prior to the next regularly scheduled municipal election.
*(Acts 1995, No. 95-367, p. 739, §6.)*
##### **§ 11-44F-26** Construction with Other Law {#sec-11-44f-26 omnilex-key=us-al-statutes--title-11--11-44F-26}
All laws and parts of laws, general, local, or special, relating to or affecting the Class 8 municipality, its powers, duties, functions, and property, in force when this article takes effect, are hereby continued in effect, and this article shall be supplemental to all laws relating to the exercise of powers, functions, and duties of the mayor of the Class 8 municipality.
*(Acts 1995, No. 95-367, p. 739, §7.)*
### **Chapter 44G** Filling Vacant Mayor and Council Positions in Class 7 and 8 Municipalities
##### **§ 11-44G-1** Procedures in Event of Vacancy - City Council {#sec-11-44g-1 omnilex-key=us-al-statutes--title-11--11-44G-1}
(a)(1) A vacancy in the office of city council member in any Class 7 or Class 8 municipality shall be filled by the city council at the next regular meeting or any subsequent meeting of the council. The person elected shall hold office for the unexpired term. In the event a vacancy is not filled within 60 days after it occurs in a Class 7 or Class 8 municipality, each existing city council member, including the mayor, may submit a name to the Governor for appointment. If the Governor fails to make an appointment from any submitted names within 90 days after the vacancy occurs, the judge of probate shall call a special election to fill the vacancy.
(2) In the event the Governor is unable or unwilling to make the appointment within the time period provided, he or she shall immediately notify the judge of probate of the county.
(3) Any election called pursuant to this section shall be conducted pursuant to Chapter 46 of this title.
(4) In the event more than one vacancy exists in the office of city council member or in the office of mayor, or both, all vacancies shall be filled in the same manner.
(b) In any election held pursuant to this section, only qualified electors who are residents of the municipality shall be eligible to vote and shall present proof of identification to the pollworkers before casting a vote. The identification may be in the form of a valid Alabama driver’s license or some other form of identification that confirms a permanent address in the city where the vote is to be cast. Other forms of identification may include, but are not limited to, a credit card, birth certificate, food stamp card, Social Security card, check cashing card, library card, passport, school record, work identification record, school identification, certified copy of a marriage license, any form of governmentally-issued identification, or Medicaid, Medicare, or welfare identification.
*(Acts 1997, 97-940, p. 510, §1.)*
##### **§ 11-44G-2** Procedures in Event of Vacancy - Mayor {#sec-11-44g-2 omnilex-key=us-al-statutes--title-11--11-44G-2}
(a)(1) In the event of the absence or disability of the mayor in any Class 7 or Class 8 municipality, the functions of the office shall be exercised by the chair pro tempore of the city council and, during his or her absence or disability, by such person as the city council may appoint from its membership, which appointment shall be entered upon the minutes of the city council.
(2) In the event of a vacancy from any cause in the office of mayor, the city council shall fill the vacancy either from its own membership or from without the membership of the city council. The person elected by the city council to fill the vacancy in the office of mayor shall be a qualified elector in the municipality and shall meet all other legal qualifications required by law for the performance of the duties of the office to which elected.
(3)a. In the event a vacancy in the office of mayor is not filled within 60 days after it occurs in a Class 7 or Class 8 municipality, each existing city council member may submit a name to the Governor for appointment. If the Governor fails to make an appointment from any submitted names within 90 days after the vacancy occurs, the judge of probate shall call a special election to fill the vacancy.
b. In the event the Governor is unable or unwilling to make the appointment within the time period provided, he or she shall immediately notify the judge of probate of the county.
c. Any election called pursuant to this section shall be conducted pursuant to Chapter 46 of this title.
d. In the event more than one vacancy exists in the office of city council member or in the office of mayor, or both, all vacancies shall be filled in the same manner.
(4) In any election held pursuant to this subsection, only qualified electors who are residents of the municipality shall be eligible to vote and shall present proof of identification to the pollworkers before casting a vote. The identification may be in the form of a valid Alabama driver’s license or some other form of identification that confirms a permanent address in the city where the vote is to be cast. Other forms of identification may include, but are not limited to, a credit card, birth certificate, food stamp card, Social Security card, check cashing card, library card, passport, school record, work identification record, school identification, certified copy of a marriage license, any form of governmentally-issued identification, or Medicaid, Medicare, or welfare identification.
(b) This section shall not apply to cities operating under commission form of government.
(c) This section shall not apply to Class 7 or 8 municipalities which have a population of 12,000 or more inhabitants according to the most recent federal decennial census. These municipalities shall fill vacancies in the office of mayor pursuant to subsection (a) of Section 11-43-42.
*(Acts 1997, 97-940, p. 510, §2; Act 2015-81, §1.)*
### **Chapter 45** Ordinances and Resolutions
##### **§ 11-45-1** Adoption and Enforcement Authorized {#sec-11-45-1 omnilex-key=us-al-statutes--title-11--11-45-1}
Municipal corporations may from time to time adopt ordinances and resolutions not inconsistent with the laws of the state to carry into effect or discharge the powers and duties conferred by the applicable provisions of this title and any other applicable provisions of law and to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of the inhabitants of the municipality, and may enforce obedience to such ordinances.
*(Code 1907, §1251; Code 1923, §1992; Code 1940, T. 37, §455; Acts 1971, No. 2279, p. 3670, §1.)*
##### **§ 11-45-1.1** Subject Matter of Handguns Reserved to State Legislature; Power of Municipality to Adopt Certain Ordinances; Concurrent Jurisdiction of Municipal Courts with District Courts {#sec-11-45-1.1 omnilex-key=us-al-statutes--title-11--11-45-1.1}
*[Repealed]*
Repealed by Act 2013-283, §9, effective August 1, 2013.
*(Acts 1982, No. 82-442, p. 694, §1; Acts 1994, No. 94-635, p. 1195, §1.)*
##### **§ 11-45-2** Style of Ordinances; Procedure for Adoption of Ordinances or Resolutions Generally; Manner of Awarding Contracts on Bids {#sec-11-45-2 omnilex-key=us-al-statutes--title-11--11-45-2}
(a) The style of an ordinance of a city or town shall be, “Be it ordained by the city (or town) council of _______ as follows:” inserting the name of the city or town as the case may be.
(b) No ordinance or resolution intended to be of permanent operation shall be adopted by the council at the same meeting at which it is introduced, unless unanimous consent of those present is given for the immediate consideration of such ordinance or resolution, such consent to be shown by a vote taken by yeas and nays, and the names of the members voting shall be entered upon the minutes, and no ordinance or resolution intended to be of permanent operation shall become a law unless on its final passage a majority of the members elected to said council in cities of over 12,000 inhabitants shall vote in its favor. In all towns and in cities of less than 12,000 population an affirmative vote of a majority of the whole number of members of the council to which the corporation is entitled, including the mayor, shall be required to enact any ordinance or resolution intended to be of permanent operation.
(c) The council shall award no contract on bids except by resolution.
*(Code 1907, §1252; Acts 1909, No. 200, p. 197; Code 1923, §1993; Code 1940, T. 37, §456; Acts 1961, No. 666, p. 910, §5; Acts 1991, No. 91-590, p. 1092, §1.)*
##### **§ 11-45-3** Transmittal of Ordinances or Resolutions to Mayor for Consideration; Approval by Mayor and Publication by Clerk; Recall of Ordinances or Resolutions from Mayor {#sec-11-45-3 omnilex-key=us-al-statutes--title-11--11-45-3}
In cities having a population of 12,000 or more, all resolutions or ordinances intended to be of permanent operation, after having been passed by the council, shall be transmitted by the clerk, within 48 hours after their passage, to the mayor or acting mayor for his consideration, who, if he shall approve thereof, shall sign and return the same to the clerk, who shall publish them, and such ordinances and resolutions shall thereupon have the force of law; provided, that the council may provide that they shall be effective from approval.
An ordinance or resolution may be recalled from the mayor at any time before it has become a law or has been acted on by him by a resolution adopted by a majority of the members elected to the council in regular or special session.
*(Code 1907, §1185; Code 1923, §1901; Code 1940, T. 37, §457; Acts 1961, No. 666, p. 910, §6.)*
##### **§ 11-45-4** Veto of Ordinances and Resolutions, and Passage Over Veto Generally {#sec-11-45-4 omnilex-key=us-al-statutes--title-11--11-45-4}
(a) Except as provided in subsection (b), if the mayor shall disapprove of any ordinance or resolution transmitted to him or her as provided in Section 11-45-3, within 10 days of the time of its passage by the council, he or she shall return the same to the clerk with his or her objections in writing, and the clerk shall make report thereof to the next regular meeting of the city council. If two thirds of the members elected to the council shall adhere to the ordinance or resolution notwithstanding the objections, the vote being taken by yeas and nays and spread upon the minutes, then the ordinance or resolution, after publication thereof, shall have the force of law, unless by its terms it was to take effect on its approval, in which event it shall take effect upon its passage over the veto. The failure of the mayor to return to the clerk an ordinance or resolution with his or her veto within 10 days after its passage by the council shall operate and have the same effect as an approval of the same, and the clerk shall publish the same as is provided in subsection (b) of Section 11-45-8 for the publication of laws and ordinances of the city.
(b) The mayor of a city or town who operates pursuant to Section 11-43-2 as it relates to the legislative functions of the mayor in cities and towns having a population of 12,000 or more but less than 25,000 inhabitants according to the last or any subsequent federal decennial census, may not exercise veto power pursuant to this section and his or her signature as the mayor may not affect the validity of an ordinance or resolution passed by the council while the mayor is a voting member of the council.
*(Code 1907, §1186; Code 1923, §1902; Code 1940, T. 37, §458; Act 2018-281, §1.)*
##### **§ 11-45-5** Veto, Passage Over Veto, Etc., of Ordinances and Resolutions Fixing Salaries of Officers and Employees {#sec-11-45-5 omnilex-key=us-al-statutes--title-11--11-45-5}
(a) Except as provided in subsection (b), every ordinance and resolution fixing the salaries of employees and officers of the city shall be submitted to the mayor as other ordinances and resolutions are to be submitted and may be approved in part and vetoed as to specific items, to be mentioned by the mayor in his or her veto message, in which case there shall first be submitted to the council at its next regular meeting the question: “Shall the ordinance pass, the veto of the mayor notwithstanding?” and, in the event that two-thirds of the members elected to the council do not vote for the passage of the ordinance, the veto notwithstanding, there shall then be submitted the question: “Shall the ordinance stand as approved by the mayor?” and if a majority of those elected to the council vote in the affirmative, the law as amended and approved by the mayor shall have the force and effect of law as in other cases; otherwise, the salary ordinance shall be defeated.
(b) The mayor of a city or town who operates pursuant to Section 11-43-2 as it relates to the legislative functions of the mayor in cities and towns having a population of 12,000 or more but less than 25,000 inhabitants according to the last or any subsequent federal decennial census, may not exercise veto power pursuant to this section and his or her signature as the mayor may not affect the validity of an ordinance or resolution passed by the council while the mayor is a voting member of the council.
*(Code 1907, §1187; Code 1923, §1903; Code 1940, T. 37, §459; Act 2018-281, §1.)*
##### **§ 11-45-6** Amendment of Ordinances {#sec-11-45-6 omnilex-key=us-al-statutes--title-11--11-45-6}
No ordinance shall be amended after its passage by providing that designated words be stricken out or that designated words be inserted or that designated words be stricken out and other words inserted in lieu thereof, unless the ordinance or section or subdivision thereof amended shall be set forth in full as amended.
*(Code 1907, §1253; Code 1923, §1994; Code 1940, T. 37, §460.)*
##### **§ 11-45-7** Codification of Ordinances; Adoption of Code by Ordinance {#sec-11-45-7 omnilex-key=us-al-statutes--title-11--11-45-7}
The council may provide at any time it may deem proper for the revision and codification of its ordinances or for the adoption of a code by ordinance.
*(Code 1907, §1254; Acts 1909, No. 200, p. 197; Code 1923, §1995; Code 1940, T. 37, §461.)*
##### **§ 11-45-8** Publication and Recordation of Ordinances; When Ordinances Take Effect; Adoption of Certain Technical Codes by Reference {#sec-11-45-8 omnilex-key=us-al-statutes--title-11--11-45-8}
(a) All ordinances shall as soon as practicable after their passage be recorded in a book kept for that purpose and be authenticated by the signature of the clerk.
(b)(1) All ordinances of a general or permanent nature, except as provided in subdivision (2) and in subsection (d) of this section, shall be published in some newspaper of general circulation published in the municipality, but if no such newspaper is published in the municipality such ordinances may be published by posting a copy of the ordinance in three public places within the municipality, one of which shall be at the mayor’s office in the city or town. In the event there is no newspaper published in the municipality and there is a newspaper published in the county in which the municipality is located having general circulation in the municipality, at the option of the governing body of such municipality the ordinance may be published in that newspaper. In towns having a population of less than 2,000 inhabitants as shown by the 1950 federal census, the governing body of such town shall have the option of publication of the ordinance by posting as above provided or in a newspaper published in the town or in the county having a general circulation in the town.
(2) All ordinances of a general and permanent nature relating to planning or zoning or the licensing or franchising of businesses, as an alternative to the publishing requirements of subdivision (1), may be published in a synopsis form in some newspaper of general circulation published in the municipality provided that the synopsis, at a minimum, includes the following information:
a. A summary of the purpose and effect of the ordinance.
b. If the ordinance relates to planning or zoning, a general description of the property or properties affected by the ordinance including the common name by which the property or properties are known and the substance of the ordinance.
c. If the ordinance relates to the licensing of businesses or the granting of a franchise, the categories of businesses affected by the ordinance and the substance of the ordinance.
d. The date upon which the ordinance was passed and, if different from the date of publication, the effective date of the ordinance.
e. A statement that a copy of the full ordinance may be obtained from the office of the city or town clerk during normal business hours.
(3) When the ordinance or notice of the substance of an ordinance is published in the newspaper, it shall take effect from and after the time it shall first appear therein, and when published by posting it shall take effect five days thereafter. When an ordinance is published by posting, the municipality shall take reasonable steps to maintain the posting for not less than 30 days. In addition, if the municipality maintains an Internet website, the municipality, at a minimum, shall include a copy of the ordinance or notice of the substance of an ordinance on its website for 30 days.
(4) Immediately following the record of any ordinance, the clerk shall append a certificate stating therein the time and manner of publication, which certificate shall be presumptive of the facts stated therein.
(5) All ordinances or notices of the substance of an ordinance granting a franchise shall be published at the expense of the party or parties to whom the franchise is granted.
(c) Ordinances may adopt by reference thereto, without setting the same out at length in the ordinance, rules, and regulations which have been printed as a code in book or pamphlet form for any of the following:
(1) The construction, erection, alteration, or improvement of buildings.
(2) Installation of plumbing or plumbing fixtures.
(3) Installation of electric wiring or lighting fixtures.
(4) Installation of gas or gas fixtures.
(5) Fire prevention.
(6) Health and sanitation.
(7) Milk and milk products.
(8) Parks.
(9) Airports.
(10) Waterworks and sewers.
(11) Traffic.
(12) Mechanical.
(13) Swimming pools.
(14) Housing.
(15) Standard code for elimination and repair of unsafe buildings.
(16) Other like codes.
If, before adopting the code in book or pamphlet form, the governing body of the city or town shall by resolution hold a public hearing of which there shall be at least 15 days’ notice of the time, place, and purpose of the hearing by publication of the resolution once a week for two successive weeks or by posting notices of the hearing for the length of time, as the case may be, under subsection (b) of this section, the resolution shall provide that not less than three copies of the code shall be filed for not less than 15 days prior to the holding of the public meeting for use and examination by the public in the office of the city or town clerk.
Amendments to such rules or regulations adopted as a code thereafter shall be adopted by ordinances published as provided in subsection (b) of this section.
(d) The following shall not be deemed ordinances of a general or permanent nature requiring publication:
(1) Ordinances authorizing or ratifying contracts with public utilities for utility services for a specified term.
(2) Ordinances authorizing the issuance or sale or security of bonds, debentures, notes, warrants and other obligations, whether full faith and credit obligations or payable from general revenues or special taxes or from revenues of a utility or other property of a municipality.
(e) The provisions of this section shall not apply to the adoption of a code for the revision and codification of the ordinances of a municipality and the adoption of such code by ordinances as provided in Section 11-45-7.
*(Code 1907, §1258; Acts 1915, No. 676, p. 735; Code 1923, §1999; Code 1940, T. 37, §462; Acts 1943, No. 303, p. 261; Acts 1949, No. 405, p. 577; Acts 1959, No. 353, p. 942; Acts 1961, No. 268, p. 287; Acts 1987, No. 87-668, p. 1193, §1; Act 2011-618, p. 1414, §1.)*
##### **§ 11-45-9** Penalties Which May Be Imposed for Violations of Ordinances {#sec-11-45-9 omnilex-key=us-al-statutes--title-11--11-45-9}
(a) Municipal ordinances may provide penalties of fines, imprisonment, hard labor, or one or more of such penalties for violation of ordinances.
(b) Except as otherwise provided in this section, no fine shall exceed five hundred dollars ($500), and no sentence of imprisonment or hard labor shall exceed six months.
(c) In the enforcement of the penalties prescribed in Section 32-5A-191, the fine shall not exceed five thousand dollars ($5,000) and the sentence of imprisonment or hard labor shall not exceed one year.
(d) Notwithstanding any other provision of law, the maximum fine for every person either convicted for violating any of the following misdemeanor offenses adopted as a municipal ordinance violation or adjudicated as a youthful offender shall be one thousand dollars ($1,000):
(1) Criminal mischief in the second degree, Section 13A-7-22.
(2) Criminal mischief in the third degree, Section 13A-7-23.
(3) Theft of property in the third degree, Section 13A-8-5.
(4) Theft of lost property in the third degree, Section 13A-8-9.
(5) Theft of services in the third degree, Section 13A-8-10.3.
(6) Receiving stolen property in the third degree, Section 13A-8-19.
(7) Tampering with availability of gas, electricity, or water, Section 13A-8-23.
(8) Possession of traffic sign; notification; destruction, defacement, etc., of traffic sign or traffic control device; defacement of public building or property, Section 13A-8-71 and Section 13A-8-72.
(9) Offenses against intellectual property, Section 13A-8-102.
(10) Theft by fraudulent leasing or rental, Section 13A-8-140 through Section 13A-8-144.
(11) Charitable fraud in the third degree, Section 13A-9-75.
(12) Illegal possession of food stamps in the third degree, Section 13A-9-91.
(e) The penalty imposed upon a corporation shall consist of the fine only, plus costs of court.
(f) In the enforcement of a Class A misdemeanor, including a domestic violence offense, the fine may not exceed five thousand dollars ($5,000) and the sentence of imprisonment may not exceed one year.
*(Acts 1975, No. 1205, p. 2384, §8-104; Acts 1983, No. 83-620, p. 959, §1; Act 2011-680, p. 2004, §1; Act 2015-493, §5.)*
##### **§ 11-45-9.1** Issuance of Summons and Complaint in Lieu of Custodial Arrest for Certain Offenses; Fines; Failure to Appear; Disposition of Funds {#sec-11-45-9.1 omnilex-key=us-al-statutes--title-11--11-45-9.1}
(a)(1) Except as provided in subdivision (2), the governing body of any municipality, by ordinance, may authorize any law enforcement officer of a municipality or any law enforcement officer of the state, in lieu of placing an individual under custodial arrest, to issue a summons and complaint to any individual charged with violating any municipal ordinance or any misdemeanor or violation within the corporate limits or the police jurisdiction of the municipality. A county law enforcement officer who issues a summons and complaint in lieu of placing an individual under custodial arrest shall in all respects be acting as an agent of the governing body of the municipality. The governing body of the municipality shall be liable for all actions and inactions of the officer, who shall not be considered to be acting on behalf of the county commission, the sheriff of the county, or the county.
(2) An ordinance adopted pursuant to subdivision (1) may not authorize a law enforcement officer to issue a summons and complaint in lieu of arrest under any of the following circumstances:
a. The individual is charged with committing a crime involving violence, threat of violence, or domestic violence, as defined under Article 7 (commencing with Section 13A-6-130) of Chapter 6, Title 13A.
b.1.(i) The individual is charged with the use or possession of alcohol and, in the opinion of the law enforcement officer, is a risk to public safety.
(ii) The individual is charged with the use or possession of a controlled substance.
2.(i) This paragraph does not apply in any municipality that had an ordinance in effect on May 1, 2022, which allowed a citation in lieu of arrest for the use or possession of alcohol or a controlled substance.
(ii) On or after June 15, 2023, a municipality, by local law, may allow a citation in lieu of arrest for the use or possession of alcohol or a controlled substance.
c. A victim of the crime is a minor.
d. The individual is charged with a violation of Section 32-5A-191.
e. The individual is charged with a crime that would require restitution to the victim.
f. The individual is charged with identity theft, as provided under Section 13A-8-192.
g. The individual is charged with the crime of theft of property in the fourth degree, as defined under Section 13A-8-5.
h. The individual is charged with fleeing or attempting to elude a law enforcement officer under Section 13A-10-52.
i. The individual is charged with a crime involving cruelty to or abuse of an animal, including a violation of Section 13A-11-241.
j. The individual is charged with a crime that is sexual in nature.
(b) The summons and complaint shall be on a form approved by the governing body of the municipality and shall contain the name of the court; the name of the defendant; a description of the offense, including the municipal ordinance number; the date and time of the offense; the place of the offense; signature of the officer issuing the citation; the scheduled court date and time; an explanation to the individual cited of the ways in which he or she may settle his or her case; and a signature block for the magistrate to sign upon the officer’s oath and affirmation given prior to trial.
(c) Whenever any individual is arrested for a violation of an offense subject to the summons and complaint procedure of subdivision (a)(1), the arresting officer shall take the name and address of the individual and any other identifying information and issue a summons and complaint to the individual charged. The officer shall release the individual from custody upon his or her written promise to appear in court at the designated time and place as evidenced by his or her signature on the summons and complaint, without any condition relating to the deposit of security.
(d) If any individual refuses to give a written recognizance to appear by placing his or her signature on the summons and complaint, the officer shall take that individual into custody and bring him or her before any officer or official who is authorized to approve bond.
(e) Before implementation of the summons and complaint procedure under subsection (a), the governing body of the municipality shall adopt a schedule of fines for first, second, and subsequent offenders of the alleged violation of offenses subject to the summons and complaint procedure. The schedule of fines shall be posted in a place conspicuous to the public within the court clerk’s office and the police department. The filing fee provided in Section 12-19-311(a)(1)a. shall apply to each summons and complaint issued under this section, and the filing fee shall be distributed as provided by Section 12-19-311.
(f)(1) When an individual is charged with an offense subject to the summons and complaint procedure, he or she may elect to appear before the municipal court magistrate, or where the municipal court has been abolished, the district court magistrate, within the time specified in the summons and complaint, and upon entering a plea of guilty, pay the fine and court costs. A plea of guilty shall only be accepted by the magistrate after the defendant has executed a notice and waiver of rights form.
(2) In the alternative, the defendant shall have the option of depositing the required bail, and upon a plea of not guilty, shall be entitled to a trial as authorized by law.
(g) The court clerk or magistrate shall receive and issue receipts for cash bail from individuals who wish to be heard in court; enter the time of their appearance on the court docket; and notify the arresting officer and witnesses, if any, to be present.
(h) If the defendant fails to appear as specified in the summons and complaint, the judge or magistrate having jurisdiction of the offense may issue a warrant for his or her arrest commanding that he or she be brought before the court to answer the charge contained on the summons and complaint. In addition, any individual who willfully violates his or her written promise or bond to appear, given in accordance with this section, shall be guilty of the separate offense of failing to appear, a misdemeanor, regardless of the disposition of the charge upon which he or she was originally arrested.
(i) All fines and forfeitures collected upon a conviction or upon the forfeiture of bail of any individual charged with a violation of the ordinances shall be remitted to the general fund of the municipality or as otherwise provided by law; provided, however, fines, forfeitures, and court costs assessed and collected in district court shall be distributed as now provided by law.
*(Acts 1989, No. 89-954, §§1-9; Acts 1992, No. 92-588, p. 1212, §1; Act 2021-495, §1; Act 2023-509, §1.)*
##### **§ 11-45-10** Procedure for Adoption or Repeal of Canine Leash Ordinance in Class 5 Municipalities {#sec-11-45-10 omnilex-key=us-al-statutes--title-11--11-45-10}
(a) The provisions of this section shall apply to all Class 5 municipalities of this state, as such class is designated by act of the legislature.
(b) The municipal governing bodies are hereby authorized by resolution to call for referendum elections, which shall be held only upon the dates of regularly scheduled municipal elections, to either call for the adoption of a canine leash ordinance, or to call for the repeal of any existing canine leash ordinance.
(c) The question to be presented at any such election shall be substantially as follows:
“Do you favor the adoption (repeal) of a canine leash ordinance by the municipal governing body? Yes ___. No ___.”
If a majority of the qualified electors of the municipality vote “Yes,” the appropriate action shall be taken by the municipal governing body within 90 days following any such election. If a majority vote “No,” no action shall be taken.
*(Acts 1983, No. 83-423, p. 603.)*
##### **§ 11-45-11** Judicial Notice of Ordinances of Class 1 or Class 2 Municipalities {#sec-11-45-11 omnilex-key=us-al-statutes--title-11--11-45-11}
All courts of the State of Alabama shall take judicial notice of all municipal ordinances of each Class 1 or Class 2 municipality.
*(Acts 1987, No. 87-645, p. 1150; Acts 1987, No. 87-780, p. 1532; Act 2021-501, §1.)*
### **Chapter 46** Elections
#### **Article 1** General Provisions
##### **§ 11-46-1** Municipalities May Provide for Election, Compensation, Bond, Etc., of Officers {#sec-11-46-1 omnilex-key=us-al-statutes--title-11--11-46-1}
Cities and towns may, except as otherwise provided by law, by ordinance provide for the election at any regular municipal election or for the appointment of such officers as are deemed needful or proper for the good government of the city or town and the due exercise of its corporate powers, fix their terms of office, fix their compensation and prescribe the duties of such officers, their liabilities and powers and require them to give bond in such sum and to be conditioned and approved as the council may prescribe.
*(Code 1907, §1171; Code 1923, §1887; Code 1940, T. 37, §34.)*
##### **§ 11-46-2** Establishment of Qualification Fee for Candidates for Office {#sec-11-46-2 omnilex-key=us-al-statutes--title-11--11-46-2}
The governing body of all municipal corporations of this state may, by ordinance, establish and fix a qualification fee to be imposed upon all candidates seeking election in municipal elections conducted under the provisions of Sections 11-46-20 through 11-46-25, 11-46-27 through 11-46-73, as amended, and of Sections 11-46-90 through 11-46-96, 11-46-98 through 11-46-144, as amended. Such fee, if established as provided for in this section, shall in no event be less than $10.00 and shall not exceed $50.00 for any office for which a candidate qualifies for election. The ordinance establishing and fixing such qualification fee shall be adopted by the governing body at least five days prior to the first day upon which a candidate seeking election in a municipal election may qualify for the office to be filled at the municipal election.
*(Acts 1969, No. 1109, p. 2045.)*
##### **§ 11-46-3** Primary Elections by Political Parties and Partisan Elections Abolished in Municipalities Having 300,000 Inhabitants or Less {#sec-11-46-3 omnilex-key=us-al-statutes--title-11--11-46-3}
Primary elections of political parties are hereby abolished in cities and towns of this state which have a population of 300,000 inhabitants or less, according to the latest federal decennial census, and election of the members of the municipal governing body of said cities and towns shall be by and on a nonpartisan ballot in all elections held for the purpose of electing members of the governing body.
*(Acts 1971, No. 2234, p. 3592.)*
##### **§ 11-46-4** Identification of Electors Eligible to Vote; Municipality, County Contracts; Official Poll List {#sec-11-46-4 omnilex-key=us-al-statutes--title-11--11-46-4}
(a) The incorporated municipalities of this state are hereby authorized to enter into contracts with the counties of this state and their boards of registrars to conduct an identification program of electors eligible to vote in municipal elections. The said municipalities are authorized to expend public funds in payment of services rendered by such counties and boards of registrars in such identification program. Such contracts shall be authorized by appropriate resolution of the governing body of the municipality. It shall be the duty of the various boards of registrars to conduct an identification program of electors residing in the municipality and eligible to vote in municipal elections upon adoption of an appropriate resolution of the governing body of the municipality and upon approval of a contract between the municipality and the county and its board of registrars. The county and its board of registrars shall not unreasonably withhold approval of a contract with any municipality for such purposes nor shall such county or its board unreasonably delay acceptance of such contract; it being the intention of the legislature that the said county and its board shall cooperate fully with the municipalities which adopt the said appropriate resolution and attempt in good faith to contract with such municipality. Any such program contracted for shall be completed at least 180 days prior to any municipal election held within a municipality to elect officers of the municipality. It is the intention of the legislature that any such contracts, as herein authorized, be detailed and sufficiently complete so that any elector may look to it for all requirements of the program of identification. It is likewise the intention of the legislature that after the identification program is completed that the list of electors established may be used as the official poll list for the immediately ensuing municipal election held within a municipality to elect officers of the municipality and the mayor of the municipality is authorized to certify such poll list as the official poll list of the municipality.
(b) All moneys paid as consideration for such contracts shall be deposited in the general fund of the county.
*(Acts 1979, No. 79-630, p. 1112.)*
##### **§ 11-46-5** Date of Elections in Certain Municipalities {#sec-11-46-5 omnilex-key=us-al-statutes--title-11--11-46-5}
The governing body of a municipality having a general municipal election or runoff election required by general or local act at a time different from the dates now or hereafter provided by Article 2, Chapter 46 of Title 11, may elect by ordinance to have the election at the same time required by Article 2 and the election made by ordinance shall not have the effect of changing the beginning of a term of office or the time for taking office.
*(Acts 1980, No. 80-243, p. 320; Acts 1993, No. 93-760, p. 1514, §1.)*
##### **§ 11-46-6** Date of Elections in Certain Class 5 Municipalities {#sec-11-46-6 omnilex-key=us-al-statutes--title-11--11-46-6}
(a) The provisions of this section shall apply to all Class 5 cities, according to Section 11-40-12.
(b) Any Class 5 city may hold its city election on the second Tuesday in July, 1980, and the runoff election four weeks after that second Tuesday, with the city election every three years thereafter to be held at the same appointed time, upon adoption of a resolution by the city governing body.
(c) The provisions of this section are cumulative and shall not be construed to repeal or supersede any laws or parts of laws not directly inconsistent herewith.
*(Acts 1980, No. 80-363, p. 483; Act 2021-157, §1; Act 2021-164, §1.)*
##### **§ 11-46-7** Polling Places for Municipal Elections in Class 1 Municipalities {#sec-11-46-7 omnilex-key=us-al-statutes--title-11--11-46-7}
(a) Notwithstanding any provision of law to the contrary, except for those citizens of Birmingham that reside in Shelby County and those citizens of Birmingham that vote in the general election outside the Birmingham city limits, the polling places for municipal elections in any Class 1 municipality shall be the same as the polling places for general elections.
(b) The polling places in which the Class 1 municipal election are held shall be in compliance with the requirements of the U.S. Department of Justice for compliance with the Americans with Disabilities Act, shall submit all required information to the U.S. Department of Justice for pre-clearance to hold the election in time to receive the appropriate approval and conduct the election at the time specified by law, and shall provide all notification to the voters of Birmingham regarding their assigned voting locations and any special procedures to be implemented to accommodate ballots for any city council district within the same polling place.
*(Act 2008-416, p. 817, §§1, 2.)*
##### **§ 11-46-8** Election of Mayor and Members of City Council in Class 1 Municipalities {#sec-11-46-8 omnilex-key=us-al-statutes--title-11--11-46-8}
(a) This section shall only apply in a Class 1 municipality.
(b) Commencing with the municipal election in 2011, the mayor shall be elected for a two-year term of office. Commencing with the municipal election in 2013, and thereafter, the mayor and the members of the city council shall be elected at the same election for a four-year term of office.
*(Act 2010-721, p. 1797, §§1, 2.)*
##### **§ 11-46-9** Election Commission in Class 1 Municipality {#sec-11-46-9 omnilex-key=us-al-statutes--title-11--11-46-9}
In any Class 1 municipality, the mayor, the city attorney, and the president of the city council shall constitute an election commission for the city. Notwithstanding the foregoing, if either the mayor or the president of the council is a candidate for office, the mayor shall appoint a member of the city council who is not a candidate for office to serve on the election commission for the election in which the mayor or the president is a candidate. In the event that both the mayor and the president of the council are candidates for office at the same election, the mayor shall appoint two members of the council who are not candidates for office to serve on the election commission in place of the mayor and the president. If the mayor and all members of the council are candidates for office at the same election, the mayor shall designate a senior member of his or her staff and the council president shall designate a senior member of the council administrative staff to serve in place of the mayor and the president.
The election commission shall have charge of and hold all municipal elections, including bond elections, initiative, referendum, and recall elections. The election commission shall appoint all election managers, clerks, and returning officers, designate places for the holding of municipal elections, shall arrange and prepare the ballot, shall decide as to the validity of all petitions necessary or incidental to elections, make such laws and rules as may be necessary to prohibit illegal voting, shall canvass the vote and declare the results of elections, and shall be custodian of the ballots after election until the time of filing contest shall have passed, after which they shall destroy the ballots in accordance with state election law. It shall be the duty of the commission to give notice of elections as required by law and to do and perform all acts relating to municipal elections, which are now or which may hereafter be vested by law in the governing body of the city. Two members of the commission shall constitute a quorum and may exercise the powers and duties herein mentioned. The city clerk or secretary of the city commission shall act as secretary of the commission. The expenses of elections shall be paid out of the city treasury.
*(Act 2012-222, p. 407, §1.)*
##### **§ 11-46-10** Ranked-Choice Voting Prohibited; Exceptions {#sec-11-46-10 omnilex-key=us-al-statutes--title-11--11-46-10}
(a) Ranked-choice voting shall not be used in determining the election or nomination of any candidate to any local office.
(b) As used in this section, the term “ranked-choice voting” means a voting method that allows electors to rank candidates for an office in order of preference and tabulates ballots cast in multiple rounds following the elimination of a candidate until a single candidate attains a majority.
(c) This section shall supersede any provision in this title that conflicts with this section.
(d) This section shall not apply to electors who are entitled to vote absentee ballot under the federal Uniformed and Overseas Citizens Absentee Voting Act, 52 U.S.C. § 20301, et seq.
*(Act 2024-338, §1.)*
#### **Article 2** Elections in Certain Cities or Towns Having Mayor-Council Form of Government
##### **§ 11-46-20** Cities and Towns Governed by Article; Costs of Elections; Standard of Time Applicable; Effect of Legal Holidays or Closing Days {#sec-11-46-20 omnilex-key=us-al-statutes--title-11--11-46-20}
(a) General and special elections in cities and towns of this state, in all municipalities except Class 1 municipalities and except cities and towns organized under a commission form of government, shall be held and conducted at the times and in the manner prescribed in this article, and the expenses and costs incident to the conduct of all such elections shall be paid out of the treasury of the city or town holding the election.
(b) Whenever in this article an hour of the day is prescribed for the doing of any act, the time used shall be that of the official time established by the law of the State of Alabama then in effect.
(c) Whenever the last day on which an act may be done pursuant to this article falls on a legal holiday, as defined in Section 1-3-8, or on a day on which the office in which the act must be done is authorized by law to be closed, such act may be done on the next succeeding secular or working day.
*(Acts 1961, No. 663, p. 827, §1; Acts 1964, 1st Ex. Sess., No. 219, p. 306; Acts 1976, No. 358, p. 403, §1; Acts 1982, No. 82-458, p. 711, §1.)*
##### **§ 11-46-21** Time of Elections; Notice; Assumption of Duties by Elected Officers {#sec-11-46-21 omnilex-key=us-al-statutes--title-11--11-46-21}
(a) The regular municipal elections in cities and towns shall be held on the fourth Tuesday in August 2025, and quadrennially thereafter, and, when necessary as provided in subsection (d) of Section 11-46-55, a second or runoff election shall be held on the fourth Tuesday following the regular election.
(b) Special elections shall be held on the second or fourth Tuesday of any month when ordered by the municipal governing body; provided, that notice of the election shall be published in the manner prescribed in Section 11-46-22 on or before the corresponding Tuesday of the second month preceding the month in which the special election is to be held.
(c) Municipal officers elected at regular elections shall assume the duties of their respective offices on the first Monday in November following their election unless otherwise provided in this article and shall serve until their successors are elected and qualified.
(d) This section shall not apply to any municipal election required by general or local act at a time different from the dates provided for in this section.
*(Acts 1961, No. 663, p. 827, §2; Acts 1971, No. 159, p. 434; Acts 1980, No. 80-94, p. 140, §1; Acts 1982, No. 82-458, p. 711, §2; Acts 1987, No. 87-581, p. 928, §1; Act 2006-354, p. 937, §2; Act 2021-157, §1; Act 2021-164, §1.)*
##### **§ 11-46-22** Notice of Elections {#sec-11-46-22 omnilex-key=us-al-statutes--title-11--11-46-22}
(a) It shall be the duty of the mayor to give notice of all municipal elections by publishing notice thereof in a newspaper published in the city or town, and, if no newspaper is published in the city or town, by posting notices thereof in three public places in the city or town. When the notice is of a regular election, the notice shall be published on the second Tuesday in June preceding the election or the first business day thereafter. When the notice is of a special election to be held on the second Tuesday in a month, the notice shall be published on or before the second Tuesday of the second month preceding the month in which the election will be held, except where otherwise provided by law. When the notice is of a special election to be held on the fourth Tuesday of a month, the notice shall be published on or before the fourth Tuesday of the second month preceding the month in which the election will be held, except where otherwise provided by law. Whenever and wherever two or more municipal offices of the same name (constituting a group) are to be filled at the regular election, prior to the first day of April preceding the election, the municipal governing body shall by ordinance designate each of the offices by number. When the offices have been designated by number, the notice of the election shall clearly indicate that the offices have been numbered and each candidate for the offices, in the announcement of his or her candidacy, shall designate the number of the office for which he or she is a candidate. Candidates may begin to qualify after the notice of election is given by the mayor.
(b) The notice of an election for municipal officers shall be substantially in the following form:
“Notice of Election of Municipal Officers
“Notice is hereby given that on (day of week), (date - month, day, and year) an election for the purpose of electing a mayor (or other chief executive) and the board of aldermen (town, city council, or other municipal governing body, or, if the positions on the governing board have been designated by number, the position numbers to be filled at the election) and the other officers as pursuant to duly enacted law or ordinance, or any or all of the officers, are to be elected at the election for the city (or town) of _____, Alabama, will be held, and that all registered and qualified electors of the state, who reside within the corporate limits of _____, Alabama, and have resided therein for 30 days or more immediately preceding the date of the election, and who are qualified to vote in the county precinct which embraces and covers that part of the corporate limits of the city (or town) in which the elector resides, will be authorized to participate in the election.
“The polls will be opened at (here list the places of voting which have been designated pursuant to Section 11-46-24). If necessary, a run-off election will be held on (day of the week), (date - month, day, year).”
Any qualified elector who has resided within the municipality, or if the municipality is districted, within the district from which he or she seeks election, for a period of at least 90 days on election day may qualify to run for office by filing the appropriate forms and paying any appropriate fees, as otherwise provided by law.
*(Acts 1961, No. 663, p. 827, §3; Acts 1976, No. 358, p. 403, §2; Acts 1980, No. 80-94, p. 140, §2; Acts 1982, No. 82-458, p. 711, §3; Acts 1987, No. 87-581, p. 928, §2; Acts 1993, No. 93-760, p. 1514, §2; Act 2003-400, p. 1150, §1; Act 2021-157, §1.)*
##### **§ 11-46-23** Authority and Procedure for Adjustment of Boundary Lines of Wards, Division of Wards into Voting Districts, Etc {#sec-11-46-23 omnilex-key=us-al-statutes--title-11--11-46-23}
The boundaries of wards within municipalities which have been divided into wards as now defined shall so remain until changed by ordinance. Hereafter the municipal governing body may, in its discretion, readjust the boundary lines of wards and may divide or consolidate any number of wards and resubdivide the same into voting districts; provided, that no such adjustment shall be made within three months of any election unless such adjustment is made during calendar year 1984 for the purpose of complying with the Voting Rights Act of 1965 as amended.
Whenever the municipal governing body readjusts any ward lines or divides a ward into voting districts, the ordinance whereby the ward is established or subdivided into voting districts shall describe the territory composing the ward, and when the ward has been subdivided, the territory composing each district therein, by metes and bounds, and the municipal clerk, within five days after adoption of the ordinance, shall file with the judge of probate of the county in which the municipality lies a certified copy of such ordinance, accompanied by a map or plat of the city or town showing the bounderies of all wards and voting districts in wards into which the municipality is then divided and shall also publish notice of all such changes or adjustments of boundaries of wards and voting districts within wards in a newspaper published in such city or town, or if there is no newspaper is published therein then by posting notice thereof at three public places in such city or town. This published notice need not be accompanied by a map or plat of the city or town.
*(Acts 1961, No. 633, p. 827, §4; Acts 1984, 1st Ex. Sess., No. 84-703, p. 32.)*
##### **§ 11-46-24** Designating and Equipping Voting Places; Election Officials; Canvass Returns {#sec-11-46-24 omnilex-key=us-al-statutes--title-11--11-46-24}
(a) The municipal governing body may, when it orders an election, designate at least one place of voting in each ward and if the ward has been divided into voting districts then at least one place of voting in each district or the municipal governing body may establish and designate one central place (location) within the municipality as the place of voting for all wards. The number of voting boxes or voting machines as prescribed, shall be placed in a central place of voting for use by the electors.
The municipal governing body shall provide at least one machine or at least one box for the voters of each ward, provided that this requirement shall not apply to any municipality which uses electronic vote counters or tabulators or other devices that are regulated by the Alabama Electronic Voting Committee established in Chapter 24 of Title 17 that are capable of counting the ballots from all wards that vote at the central place of voting.
In each central place of voting where paper ballots are used the election officials shall consist of one returning officer, one chief inspector, who shall supervise the conduct of the other officials and the operation of the voting place, one inspector, and two clerks for each box. In the central place of voting where voting machines are used, the election officials shall consist of one chief inspector who shall supervise the conduct of the other officials and the operation of the voting place, one inspector, and one chief clerk and, for each voting machine to be used at the voting place there shall be appointed two assistant clerks. The election officials serving at voting places, shall be compensated for their services in the same manner and at the same rates provided by law for election officers pursuant to Section 11-46-27.
In wards or voting districts where paper ballots are used in which there are more than 300 legal voters, or where mechanical voting machines are used and there are more than 600 legal voters, or where electronic voting machines are used and there are more than 1,200 legal voters, the municipal governing body may divide alphabetically the list of qualified voters in the ward or voting district into groups and assign each qualified voter a designated voting place and a designated box or voting machine in the ward or voting district.
Nothing in this subsection shall be construed to require the municipal governing body to designate more than one voting place in a ward which has not been subdivided, nor more than one voting place in a voting district, nor to provide more than one ballot box for every 300 qualified electors when paper ballots are used, or more than one voting machine for every 600 qualified electors where mechanical voting machines are used, or more than one voting machine for every 1,200 qualified electors where electronic voting machines are used. The number of counters or tabulators required in elections where devices are used that are regulated by the Alabama Electronic Voting Committee established in Chapter 24 of Title 17 shall be governed by regulations established by the committee.
In any municipal run-off election involving 50 percent or fewer races than were on the ballot during the general election, a municipal governing body shall not be required to provide more than one ballot box for every 600 qualified electors when paper ballots are used, or more than one voting machine for every 1,200 qualified electors where mechanical voting machines are used, or more than one voting machine for every 2,400 qualified electors where electronic voting machines are used.
(b) Notwithstanding subsection (a) or another provision of this article, the governing body of a municipality may establish in a ward or in the municipality where voting machines are used a voting center, which term means a place in the ward or municipality which the governing body designates as a place where a voting machine or voting machines will be maintained or operated at elections.
The ordinance designating voting centers shall state the location of the voting center and, if the voting center shall be utilized in a ward, then the boundaries of the ward in which the electors shall reside to be entitled to vote at the voting center. The voting list furnished to the election officers serving at the voting center shall contain the names of all qualified electors of the ward or municipality on a single roll. If the roll contains more than 2,400 names, the list of qualified electors on the roll shall be divided into alphabetical sections of not more than 2,400 names per section.
No elector shall vote at a voting center other than the voting center of the ward of which he or she is a qualified elector, but an elector eligible to vote at a voting center may vote on a voting machine maintained at the voting center upon presentation of the identification card issued to him or her by an election officer serving at the voting center.
The municipal governing body shall determine the number of voting machines deemed necessary to serve adequately the voters at an election. There shall be maintained at each voting center at least one mechanical voting machine for each 600 qualified electors, or fraction thereof, or at least one electronic voting machine for each 1,200 qualified electors, or fraction thereof, residing in the ward served by the voting center. The number of counters or tabulators required in elections where devices are used that are regulated by the Alabama Electronic Voting Committee established in Chapter 24 of Title 17 shall be governed by regulations established by the committee.
If all ballots are the same in any municipal run-off election held at a voting center pursuant to this section, the municipal governing body shall not be required to provide more than one ballot box for every 600 qualified electors when paper ballots are used, or more than one voting machine for every 1,200 qualified electors where mechanical voting machines are used, or more than one voting machine for every 2,400 qualified electors where electronic voting machines are used.
For each voting center where only one voting machine is to be used, the election officials shall consist of an inspector, a chief clerk, and a first and second assistant clerk. For each voting center where more than one voting machine is to be used, there shall be appointed one chief inspector, who shall supervise the conduct of the other officials and the operation of the voting center, one inspector and one chief clerk and, for each voting machine to be used at the center, there shall be appointed two assistant clerks. For each voting center where four or more voting machines shall be used, there may be appointed two additional assistant clerks for each group of four voting machines or fraction thereof.
The municipal governing body shall, not less than 15 days before the holding of a municipal election, appoint from the qualified electors of the municipality or the ward officers to hold the election as provided in this article.
The officers shall perform all duties imposed on election officers by this article and in addition thereto the following duties: One of the election officers shall be assigned to each section of the voting list and the election officer shall issue to each elector at the time he or she checks the name off the list of qualified electors an identification card, which shall be presented to the assistant clerk in charge of the voting machine and surrendered to him or her when the voter enters the voting machine. The identification cards shall each have printed on them the words “voter identification card” and they shall contain a space in which shall be entered the signature of the election officer who delivered the card to the elector. The identification card shall bear neither a number nor the name of the voter. Identification cards shall be procured by the same officer who procures other election supplies and shall be paid for from the same funds that the cost of other election supplies are paid. The assistant clerk in charge of the voting machine shall require that each voter sign at the machine a poll list before he or she shall be allowed to enter the machine to vote. The poll list shall be signed or the name of the voter recorded pursuant to Section 17-7-15.
The returns of the canvass as required by law shall be filled out and verified and shall show the number of votes cast for each candidate, the number of votes cast for and against a proposition submitted, and shall be signed and certified by the chief inspector, if any, an inspector, or chief clerk, and not less than two assistant clerks.
Election officers serving at voting centers shall be compensated for their services in the same manner and at the same rates provided by law for election officers pursuant to Section 11-46-27.
It shall be the duty of all election officials to see that order is maintained in the polling place and the inspector shall see that the returns are filled out for each voting machine as required by law and delivered to the proper officials, that the records of the election relating to each machine are enclosed respectively in each machine, and that the list of qualified voters and other records relating to the election in general are enclosed in the appropriate voting machine.
*(Acts 1961, No. 663, p. 827, §5; Acts 1976, No. 358, p. 403, §3; Acts 1987, No. 87-581, p. 928, §3; Acts 1993, No. 93-760, p. 1514, §3; Act 2003-400, p. 1150, §1; Act 2006-281, p. 496, §1.)*
##### **§ 11-46-24.1** Designation of Voting Places in Class 8 Municipalities by Combination of Districts and Wards {#sec-11-46-24.1 omnilex-key=us-al-statutes--title-11--11-46-24.1}
Notwithstanding the provisions of subsection (a) of Section 11-46-24, the municipal governing body of a Class 8 municipality, for the purpose of designating voting places in a municipal election, may provide by ordinance for the combination of any district in a ward with any other district in the ward, and may provide for the combination of any ward with one or more wards. Voting places shall be designated by the municipal governing body when it orders an election in the same manner as provided in Chapter 46.
*(Act 2004-361, p. 590, §1.)*
##### **§ 11-46-25** Ballots; Statements of Candidacy; Withdrawal of Candidacy {#sec-11-46-25 omnilex-key=us-al-statutes--title-11--11-46-25}
(a) In all municipal elections on any subject which may be submitted by law to a vote of the people of the municipality and for any municipal officers, if paper ballots are used, the voting shall be by official ballot printed and distributed as provided in subsections (c) and (d), and no ballot shall be received or counted in any election unless it is provided as prescribed by law.
(b) There shall be but one form of ballot for all the candidates for municipal office and every ballot provided for use at any polling place in a municipal election shall contain the names of all candidates who have properly qualified and have not withdrawn, as provided in subsection (g), together with the title of the office for which they are candidates.
(c) All ballots shall be printed in black ink on clear book paper. At the bottom of each ballot and at a point an equal distance from the sides thereof there shall be printed a one-inch square in which the number of the ballot shall be placed by the inspector when the ballot is cast. The arrangement of the ballot shall in general conform substantially to the plan given in subsection (f).
(d) Ballots shall be fastened together in convenient numbers in books or blocks in such manner that each ballot may be detached and removed separately, and each ballot shall have attached to it a stub of sufficient size to enable one of the inspectors to write or stamp his or her name or initials thereon and so attached to the ballot that when the same is folded the stub can be detached therefrom without injury to the ballot or exposing the contents thereof.
(e) Absentee ballots shall be in the form prescribed for absentee ballots by Title 17.
(f) The ballot shall be arranged in substantially the following form: For MayorVote for One( ) John Doe( ) Richard RoeFor City Council Place Number One( ) _____________________( ) _____________________For City Council Place Number Two( )_____________________( ) _____________________Etc.
(g) Upon confirmation from the Alabama Ethics Commission that a candidate has complied with the filing requirements under Section 36-25-15, the clerk shall cause to be printed on the ballots the name of any qualified elector who, by 5:00 P.M. on the fourth Tuesday in June preceding the date set for the election, has filed a statement of candidacy, accompanied by an affidavit taken and certified by an officer authorized to take acknowledgments in this state that the individual is duly qualified to hold the office for which the individual desires to become a candidate. The statement shall be substantially in the following form:
“State of Alabama, _____ County. I, the undersigned, being first duly sworn, depose and say that I am a citizen of the city (or town) of _____, in the county, and reside at _____, in the city (or town); that I have been or will have been on the date of the municipal election a resident of the city (or town) for a period of not less than 90 days; that I desire to become a candidate for the office of _____ in the city (or town) for the term of _____ years at the election for the office to be held on the _____ day of _____ , 2__; that I am presently a qualified elector of the city (or town) of_____; and I hereby request that my name be printed upon the official ballot at the election.
”(Signed) ________________“Subscribed and sworn to before me by the _____ on this ___ day of ___, 2__ ”(Style of Officer) ________”
(h) No names shall be printed upon the ballot as candidates for election except the names of individuals who have become candidates in the manner prescribed in subsection (g) nor may any individual be a candidate or be permitted to file a declaration for more than one place or position in a group of offices of the same name when the offices have been designated by number as authorized in Section 11-46-22.
(i) All statements of candidacy filed with the mayor within the time prescribed in subsection (g) shall be preserved for six months after the election for which the statements of candidacy were filed.
(j) Any candidate may withdraw as a candidate by giving written notice to the mayor, at any time, prior to the date of the election. If a candidate withdraws, as herein provided, the election officials shall, if paper ballots are used in the election, draw a line in ink through the name of the candidate and if electronic voting tabulators are used in the election, the name of the candidate shall be removed from the ballot in accordance with the manufacturer’s guidelines or instructions.
All written notices of withdrawal filed with the mayor shall be preserved for six months after the election.
*(Acts 1961, No. 663, p. 827, §6; Acts 1976, No. 358, p. 403, §4; Acts 1980, No. 80-94, p. 140, §3; Acts 1982, No. 82-458, p. 711, §4; Acts 1987, No. 87-581, p. 928, §4; Act 2010-687, p. 1660, §1; Act 2021-157, §1.)*
##### **§ 11-46-26** Proceedings Where Only One Candidate or Nominee for Office {#sec-11-46-26 omnilex-key=us-al-statutes--title-11--11-46-26}
In the event only one individual has filed a statement of candidacy for an office by 5:00 P.M. on the fourth Tuesday in June preceding the date set for an election of municipal officers pursuant to subsection (g) of Section 11-46-25, then that individual shall for all purposes be deemed elected to office, any provisions of this article to the contrary notwithstanding. The mayor or other chief executive officer shall not cause the name of that individual so elected or the office for which his or her candidacy was declared to be printed on the ballot, but shall immediately file a written statement with the governing body of the municipality, attested by the clerk, certifying the fact that only one individual filed a statement of candidacy for the office of _____ (naming the office) by 5:00 P.M. on the fourth Tuesday in June preceding the day of _____, 2__, the date set for an election of municipal officers in the City (Town) of _____, Alabama, and setting forth the name of the individual. At its first regular meeting after receiving the mayor or other chief executive officer’s statement the governing body of the municipality shall adopt a resolution declaring the individual named in the statement duly elected to the office described in the statement and shall issue a certificate of election for the individual. Certificates of election shall be filed as provided in Section 11-46-55(d). For the purpose of this article, each place on the council of a municipality organized under the mayor-council form of government shall be considered a separate office.
*(Acts 1965, No. 404, p. 582; Acts 1976, No. 358, p. 403, §5; Acts 1980, No. 80-94, p. 140, §4; Acts 1987, No. 87-581, p. 928, §5; Act 2021-157, §1.)*
##### **§ 11-46-27** Appointment, Compensation, Etc., of Election Officers {#sec-11-46-27 omnilex-key=us-al-statutes--title-11--11-46-27}
(a) The municipal governing body or a majority of them must, not less than 15 days before the holding of any municipal election, appoint from the qualified electors of the respective wards or voting districts officers to hold the election as follows: Where paper ballots are used, one returning officer for each ward and three inspectors and two clerks for each box at each voting place and, where voting machines are used, an inspector, a chief clerk, and a first and second assistant clerk for each voting machine; except that in the event voting centers or voting places are established, then the requirements of Section 11-46-24 shall control the number of election officials. In any Class 6, Class 7, or Class 8 municipality, election officials must reside within the municipality and may serve at any polling place within the municipality. An election official appointed to serve in a polling place other than where he or she would be required to vote based on residency, may vote by absentee ballot.
(b)(1) No officer or employee of the municipality shall be eligible to serve as an election official.
(2) No kindred of any candidate or his or her spouse to the second degree, according to the civil law, shall be eligible to serve as an election official.
(c) In every city having, according to the last or any subsequent federal decennial census, 10,000 or more inhabitants, the municipal governing body shall also appoint from the qualified electors of the city one inspector and at least three clerks, who shall meet on the day of the election at such place and hour as the municipal governing body may designate for the purpose of receiving, counting, and returning the absentee ballots cast at such election, and four days before the election the municipal governing body shall ascertain the number of absentee ballots which have been cast at the election and, if more than 600 absentee ballots have been cast, then such governing body shall appoint three more inspectors and two more clerks for each 600 absentee ballots or fraction thereof cast at such election.
(d) In every city or town having less than 10,000 inhabitants, according to the most recent federal decennial census, the municipal governing body may adopt an ordinance at least six months prior to the date of the election to provide that at the time other election officials are appointed, the governing body shall appoint additional election officials who shall meet on the day of the election at the place and hour as the municipal governing body may designate for the purpose of receiving, counting, and returning the absentee ballots cast at the election. The ordinance shall enumerate the election officials the governing body will appoint for this purpose, but the number shall not be less than three. This ordinance shall remain in effect until repealed by a subsequent ordinance adopted at least six months prior to an election. These absentee election officials shall be in addition to other election officials required by law and shall be appointed at the same time and in the same manner as are other election officials. When the election officials are appointed, one of them shall be designated by the municipal governing body as the inspector.
(e) In the event a person appointed as an election official is excused from serving or otherwise disqualifies himself or herself prior to election day, the vacancy created thereby shall be filled by the municipal governing body or a majority of them in the same manner that original appointments are made; provided, however, that if the vacancy is among the officers appointed to serve at a polling place where voting machines will be used, after the school of instruction for election officials has been held as prescribed in subsection (a) of Section 11-46-30, a person who has received a certificate from a previous school of instruction shall, if possible, be appointed to fill the vacancy.
(f) The mayor or other chief executive officer of the municipality shall publish a list of the election officers so appointed, either by posting a list thereof showing the voting places and the election officers appointed for each voting place at three public places in the city or town or by publishing a list in a newspaper published in the city or town at least 10 days prior to the election.
(g) The mayor or other chief executive officer of the municipality shall notify the inspectors, clerks, and returning officers of their appointment.
(h) The returning officers, the inspectors, and the clerks at polling places where voting is solely by paper ballots shall be entitled to such compensation as the municipal governing body establishes but which in no event shall be less than eight dollars ($8) per day, and each election officer at a polling place where elections are conducted in whole or in part by voting machines shall be entitled to such compensation as the municipal governing body establishes but which in no event shall be less than eight dollars ($8) per day. The compensation of the election officials shall be paid as preferred claims out of the general fund of the municipality holding the election on proper proof of service rendered.
*(Acts 1961, No. 663, p. 827, §7; Acts 1971, No. 157, p. 431; Acts 1976, No. 358, p. 403, §6; Acts 1982, No. 82-458, p. 711, §5; Acts 1987, No. 87-581, p. 928, §6; Act 2003-400, p. 1150, §1; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-28** Polling Place Hours; Duties of Election Officers; Challenger; Deletion of Absentee Voter Applicants from Voter List; Preservation of Order {#sec-11-46-28 omnilex-key=us-al-statutes--title-11--11-46-28}
(a) Every polling place shall open for voting at 7:00 A.M. and shall close at 7:00 P.M. and shall remain open for voting for not less than 12 consecutive hours. All polling places in areas operating on eastern time may open and close under this section pursuant to eastern time.
The election officers at voting places shall meet at the respective places of holding elections for which they have been appointed 30 minutes before the hour established by the municipal governing body to open the polls and shall at the designated hour open the several polling places as designated and keep them open without adjournment or recess until the hour established by the municipal governing body to close the polls and no longer.
(b) Any qualified elector entitled to vote at a polling place who has identified himself or herself with the election officials at the polling place by closing time shall be permitted to cast his or her ballot.
(c) Before entering upon their duties, the election officers must take an oath to perform their duties at the election according to law, and the oath may be administered either by any person authorized by law to administer oaths or by an election inspector.
(d) When paper ballots are used, the inspectors shall select one of their number, on opening the polls, to act as challenger, and the challenger shall ascertain if each person presenting himself or herself to vote is registered, the finding to be from an examination of the official list of the voters furnished by the mayor or other chief executive officer.
(e) Upon receipt of the list showing the names of every person whose name appears on the official list of qualified electors for that particular polling place who have applied for absentee ballots in the election, the election officials shall strike from the list of qualified electors kept at the polling place the name of every person who has applied for an absentee ballot, and no person who has applied for an absentee ballot shall vote again.
(f) Before the election officials commence receiving ballots, the election inspectors must cause it to be proclaimed aloud at the places of voting that the election is opened.
(g) After the polls have been opened, no adjournment or recess shall be taken until the certificate of the result of the election is signed.
(h) When voting machines are used, the election officials shall also comply with Section 11-46-47, and upon completing the duties thereby imposed shall formally declare the polls opened.
(i) The marshal, chief of police, or other chief law enforcement officer of the city or town shall preserve good order at all municipal elections held in the city or town, but not more than one officer shall at the same time be allowed to enter the polling place. Except as electors are admitted to vote and persons to assist them as provided in this article and except the above-mentioned law enforcement officers, the election officials, and the watchers, no person shall be permitted within 30 feet of the polling place.
*(Acts 1961, No. 663, p. 827, §8; Acts 1976, No. 358, p. 403, §7; Acts 1982, No. 82-458, p. 711, §6; Act 2003-400, p. 1150, §1; Act 2006-281, p. 496, §1.)*
##### **§ 11-46-29** Appointment of Election Officers Upon Failure of Others to Attend Polls {#sec-11-46-29 omnilex-key=us-al-statutes--title-11--11-46-29}
On the failure of any person who has been duly appointed an election officer to attend the polls at the hour prescribed for his attendance, such of the election officers appointed for that voting box or machine as are present may appoint such election officers as are needed to complete the number of election officials for the box or machine. All persons so appointed shall be qualified electors who are entitled to vote at that polling place.
Should all the appointed election officers fail to be present at a polling place by the hour prescribed on election day, then any three qualified electors who are entitled by law to vote at that polling place at the election then to be held may open the polls, act as three of the election officers for such box or machine and appoint such other officers as are required to fill the place of those absent; provided, that every person so appointed shall be a qualified elector entitled to vote at the polling place.
*(Acts 1961, No. 663, p. 827, §9.)*
##### **§ 11-46-30** Schools for Instruction of Election Officials in Use of Voting Machines; Qualifications and Certification of Election Officials {#sec-11-46-30 omnilex-key=us-al-statutes--title-11--11-46-30}
(a) When voting machines are to be used in any municipal election, the municipal governing body shall provide for holding a school or schools of instruction for those who will actually conduct the election. The municipal clerk shall notify those persons who have been appointed election officials of the time and place of the holding of such school of instruction and shall also publish notice thereof at least 48 hours before the same is to be held.
(b) No election official shall serve in any election district in which a voting machine is used, unless he has received such instruction, is fully qualified to perform the duties in connection with the machine and has received a certificate to that effect from the authorized instructor; provided, that this requirement shall not prevent the appointment of an uninstructed person as an election official to fill a vacancy among the election officials.
*(Acts 1961, No. 663, p. 827, §10.)*
##### **§ 11-46-31** Exhibition of Voting Machines for Voter Instruction and Information; Diagrams Furnished with Voting Machines {#sec-11-46-31 omnilex-key=us-al-statutes--title-11--11-46-31}
During the 30 days next preceding an election at which voting machines will be used, the municipal governing body shall place on public exhibition in public places and at times as it may deem most suitable for the information and instruction of the voters one or more voting machines, containing the ballot labels and showing the offices and questions to be voted upon and, so far as practicable, the names and arrangements of the candidates for office. The machines will be under the charge and care of a person competent as custodian and instructor. No voting machine which is to be assigned for use in an election shall be used for public exhibition and instruction after having been prepared and sealed for the election. This requirement shall not apply in any municipality which will use a vote tabulator that requires voters to fill out a card or paper ballot that will be read by the tabulator. In these municipalities, the municipal governing body shall, at least 30 days prior to the municipal election, place a sample of the ballot or vote card that will be used in the election on public exhibition in public places and at the times it deems most suitable for the information and instruction of the voters.
Prior to any election the municipal governing body may cause copies of any diagram or diagrams required to be furnished with voting machines at polling places to be made, either in full size or reduced size, and to be posted, published, advertised, or distributed among the electors in a manner as they may deem desirable.
*(Acts 1961, No. 663, p. 827, §11; Acts 1976, No. 358, p. 430, §8; Act 2003-400, §1.)*
##### **§ 11-46-32** Election Supplies {#sec-11-46-32 omnilex-key=us-al-statutes--title-11--11-46-32}
(a) The mayor or other chief executive officer of the municipality shall at the expense of the municipality procure and superintend and insure the delivery to the election officers at each polling place within the corporate limits of the municipality of the necessary election supplies and shall also procure and deliver or cause to be delivered to the municipal clerk a sufficient number of the absentee ballots and the envelopes therefor prescribed by general laws and other supplies needed for the handling of absentee ballots in such election in the manner prescribed by general law. In the event the municipal clerk is a candidate in the election, he or she shall immediately upon receipt of the absentee ballots and other supplies deliver the same to the person appointed pursuant to Section 11-46-55 to act in his or her stead.
(b) When paper ballots are used, such supplies shall consist of: At least 100 ballots for each 50 registered electors at each voting place; the same number of black seals, two inches square, around the outer edge of which is a mucilaginous surface one-fourth inch wide, so designed that a seal may be placed securely over the square bearing the ballot number in such manner that it will make it impossible to read such number without removing the seal yet such seal may be removed without obliterating the number; ballot boxes; blank poll lists; three or more cards of instructions to voters for each ward or voting district, which shall be printed in large clear type and shall contain full instructions to electors as to what should be done, first, to obtain ballots for voting, second, to prepare the ballot for deposit in the ballot box, third, to obtain a new ballot in place of one accidentally spoiled and, fourth, to obtain a watcher for each candidate to be voted for; certificates of results; oaths; and any other stationery, blank forms, or supplies necessary in the conduct of the election.
(c) When voting machines are used, such supplies shall consist of: Ballot labels; diagrams; blanks for keeping a record of assisted voters; seals; blank forms for a statement of canvass of the votes cast on each machine, such forms to conform to the type of voting machine to be used and the designating number and letter if the construction of the machine is such as to require a designating number and letter of each candidate or proposition to be printed next to the candidate’s name on the statement of canvass; and all other necessary election supplies for use on voting machines.
*(Acts 1961, No. 663, p. 827, §12; Act 2015-216, §1.)*
##### **§ 11-46-33** Duties of Clerk as to Voting Machines {#sec-11-46-33 omnilex-key=us-al-statutes--title-11--11-46-33}
(a) Whenever voting machines are to be used in any municipal election the municipal clerk shall:
(1) Cause the proper ballot labels to be placed on the voting machines;
(2) Cause the machines to be placed in proper working order for voting;
(3) Examine all voting machines in the presence of authorized watchers for any interested persons before they are sent out to the polling places;
(4) See that all the registering counters are set at zero;
(5) Lock, in the presence of authorized watchers, all voting machines so that the counting machinery cannot be operated; and
(6) Seal each one with a numbered seal, a list of which numbered seals and the number on the protective counters, together with the number of the voting place to which it was sent shall be kept as a permanent record in such clerk’s office, open to any citizen.
(b) The inspection and sealing of voting machines shall begin not later than 9:00 A.M., of the Monday before any election at which such machines are to be used and shall continue until all machines are sealed. When all machines are locked and sealed, the key to each machine shall be placed in an envelope and sealed, the signature of the municipal clerk and the signature of two watchers of opposed interest, if such there shall be, shall be placed across the seal, and on the envelope shall be written the number then on the protective counter and the number on the seal of the voting machines. This envelope shall be delivered to the election inspector who will serve as an election officer at the polling place where such machine is used.
(c) It shall be the duty of the municipal clerk to see that a voting machine or machines, together with an instruction model for each machine showing a portion of the face of such machine in use at such election, is delivered to each and every polling place where machines are required by law to be used at least one hour before the time set for opening the polls in such ward. After the machine has been delivered, the clerk shall cause such machine to be set up in the proper manner and cause protection to be given so that such machine shall be free from molestation and injury. The protective curtains shall be examined to see that they properly conceal the actions of the voter while such voter is operating the machine. All poll lists and necessary supplies shall be delivered to the inspector at the same time the key or keys to the machine are delivered.
(d) Except as otherwise provided by law, the term voting machines, as used in this title, shall not include electronic vote counting systems as defined in Title 17.
*(Acts 1961, No. 663, p. 827, §13; Act 2015-216, §1.)*
##### **§ 11-46-34** Voting Booths {#sec-11-46-34 omnilex-key=us-al-statutes--title-11--11-46-34}
For all elections at which paper ballots will be used, the chief executive officer of the municipality at the expense of the municipality shall provide at each polling place in all municipalities having a population of over 3,000 inhabitants a room or covered enclosure and in such room or covered enclosure shall provide booths or compartments, one booth or compartment for each 100 or fraction thereof over 50 electors registered in the ward or wards in such municipality for that election, and shall furnish each booth or compartment with a shelf or table for the convenience of the electors in the preparation of their ballots. Each booth or compartment shall be so arranged that it will be impossible for one elector at a shelf or table in one compartment to see an elector at a shelf or table in another compartment in the act of marking his ballot. Each voting shelf or table shall be kept supplied with conveniences for marking the ballots. In voting places in municipalities having a population of 3,000 inhabitants or less no booths shall be required.
*(Acts 1961, No. 663, p. 827, §14.)*
##### **§ 11-46-35** Watchers {#sec-11-46-35 omnilex-key=us-al-statutes--title-11--11-46-35}
(a) Each candidate may name a watcher for every polling place. As used in this subsection, a polling place shall mean a location for ballot boxes or voting machines, regardless of the number thereof.
(b) The watcher, upon presentation of his or her appointment in writing and being sworn faithfully to observe the rule of law prescribed for the conduct of elections, shall be permitted to be present at the place where ballots are cast from the time the polls are opened until the ballots are counted and certificates of the result of the election are duly signed by the proper election officers. The function of the watcher is to observe activities at the polling place. The watcher may not disturb voters, attempt to influence voters, campaign, or display or wear any campaign material or buttons while inside any polling place.
(c) When paper ballots are used at the election, the watcher shall be permitted to see the ballots as they are called during the count.
(d) When voting machines are used, the watchers shall, upon presentation of their appointment in writing, be permitted to be present when the machines are being prepared and sealed for use at the election. On election morning the watcher may witness the breaking of the seal on the envelope containing the key or keys to the voting machines, and, when the machine has been unlocked and the counters exposed, he or she shall carefully examine each and every counter to see that it registers zero, and he or she shall also examine the ballots and satisfy himself or herself that they are in their proper places on the machine and that the machine is properly placed. The watcher must also sign a certificate setting out the above facts, as required by subsection (c) of Section 11-46-47. He or she may also be present and witness the opening of the machine after the polls have closed, the reading and tabulating of the result of the election as recorded on the voting machine and the resealing of the machine.
*(Acts 1961, No. 663, p. 827, §15; Acts 1976, No. 358, p. 403, §9; Act 2003-400, §1.)*
##### **§ 11-46-36** Preparation, Certification, Filing, and Publication of Lists of Qualified Regular Voters {#sec-11-46-36 omnilex-key=us-al-statutes--title-11--11-46-36}
(a) The mayor or other chief executive officer of the city or town shall cause to be made a list of the qualified voters who reside within the corporate limits of such city or town and who are registered to vote regular ballots, dividing the same into separate alphabetical lists of the qualified voters of each ward where such city or town has been divided into wards and all qualified voters thereof vote at one box or voting machine, or dividing such list into separate alphabetical lists of voters authorized to vote at each respective box or voting machine if the list of qualified voters has been divided alphabetically and each alphabetical group assigned a box or machine at which to vote. He or she shall have such lists compared with the official list of electors qualified to vote during the current year on file in the probate office of the county in which the municipality is situated and shall certify on each list prepared pursuant to this section that it is a correct list of the voters who are qualified to vote regular ballots in the municipality, ward, ballot box, or voting machine to which it appertains. He or she shall have full access to all registration lists of the county for this purpose. A copy of each list so prepared shall be filed with the municipal clerk, who shall file and retain each such list as a public record in his or her office, on or before the third Tuesday in July before a regular municipal election. The clerk shall prepare a copy of the list of qualified voters authorized to vote at each of the respective polling places in the municipality, and, prior to the opening of the polls on election day, he or she shall furnish to the inspectors, or one of them, of each ballot box or voting machine at each polling place a copy of the list of qualified voters authorized to vote at the box or voting machine for which he or she was appointed an inspector. The clerk shall also publish the list of qualified voters authorized to vote at the ensuing election at least five days prior to the election by posting copies thereof in at least three public places in the municipality.
(b) Following each election, the municipal clerk shall make a copy of that portion of the poll list to be made a public record and shall maintain the original in his or her office. The clerk shall redact any information required to be redacted pursuant to Section 17-4-33 from the copy to be made a public record. This subsection shall not affect poll lists used at local precincts.
*(Acts 1961, No. 663, p. 827, §16; Acts 1976, No. 358, p. 403, §10; Acts 1980, No. 80-94, p. 140, §5; Acts 1982, No. 82-458, p. 711, §7; Acts 1987, No. 87-581, p. 928, §7; Act 2014-221, p. 704, §1.)*
##### **§ 11-46-37** Preparation, Etc., of Lists of Qualified Voters Upon Disqualification of Mayor, Etc {#sec-11-46-37 omnilex-key=us-al-statutes--title-11--11-46-37}
In the event the mayor or other chief executive officer of any city or town is a candidate in any municipal election held under the provisions of this article, he shall be disqualified to perform the duties set forth in Section 11-46-36, and said duties shall be performed by a disinterested person appointed by the board of aldermen or other governing body of the city or town.
*(Acts 1961, No. 663, p. 827, §17.)*
##### **§ 11-46-38** Electors to Vote in Wards or Precincts of Residence, Etc.; Qualifications for Voting {#sec-11-46-38 omnilex-key=us-al-statutes--title-11--11-46-38}
(a) At all municipal elections, a qualified elector may vote only in the ward or precinct of his or her residence where he or she is registered to vote.
(b) An individual may not vote at any municipal election unless he or she is a qualified elector of the State of Alabama, has resided in the county 30 days and in the ward 30 days prior to the election, and has registered to vote in conformance with the time frame set forth in Section 17-3-50; provided, however, if a qualified elector relocates his or her residence from one ward to another ward in the same city or town within the 30-day period prior to the election, the elector shall have the right to vote in the ward where the elector had previously resided if he or she would have been entitled to vote in that ward but for relocating to the new ward. If any elector attempts to vote in any ward other than that of his or her residence, except as authorized in this section, his or her vote must be rejected.
*(Acts 1961, No. 663, p. 827, §18; Acts 1976, No. 358, p. 403, §11; Acts 1982, No. 82-458, p. 711, §8; Act 2006-281, p. 496, §1; Act 2019-358, §1.)*
##### **§ 11-46-39** Oath and Identification of Voters Challenged; Voting Procedure Where Paper Ballots Used {#sec-11-46-39 omnilex-key=us-al-statutes--title-11--11-46-39}
(a) Where paper ballots are used, the inspector, upon the elector’s entering the polling place, shall examine the list of qualified electors furnished by the clerk pursuant to subsection (a) of Section 11-46-36, and, if it appears from this examination that the person is a qualified elector of the state authorized to vote at that box, the inspector shall then give the person one ballot on the stub of which the inspector shall write or shall have already written his or her name or initials. If the person’s name does not appear on the list of qualified voters for that ward or box, the person may not vote except by provisional ballot.
(b) In cities of more than 3,000 inhabitants, each elector on receiving a ballot shall forthwith and without leaving the polling place retire alone to one of the booths or compartments provided for that purpose and there prepare the ballot in the manner provided in this article. In all other cities or towns the elector may prepare the ballot at any point within the polling place.
(c) Any elector who shall by accident or mistake spoil a ballot so that the elector cannot conveniently or safely vote the same may return it to the inspectors and receive another in lieu thereof which must be voted or returned by such elector.
(d) After preparing the ballot the elector shall fold the same so as to conceal the face thereof and show the stub thereto attached with the name or initial of the inspector and hand it to the receiving inspector, who must receive the folded ballot and call the name of the elector audibly and distinctly.
(e) One of the clerks shall immediately enter on one of the lists headed names of voters and called poll lists the name of such elector opposite the number indicating the order in which electors vote, the first elector voting being numbered one, the second two, and so on to the last elector voting, and at the same time the other clerk shall see that the elector whose name was called shall immediately sign his or her own name on another poll list on a line bearing the same number appearing opposite such elector’s name on the above-mentioned poll list, unless such elector because of physical handicap or illiteracy is unable to write his or her own name on such list. If the voter is physically handicapped, an election official shall write the name of such voter on the list together with the cause of assistance and shall sign his or her own name on the poll list on the same line with the voter’s name. If the voter is unable to sign his or her name because of illiteracy, the name shall be written for the voter and the voter shall, in the presence of one of the election officials, make his or her mark upon the poll list. The election official witnessing the act shall record his or her name as witness on the same line with the name of the voter.
(f) The receiving inspector shall then write the number of the ballot in the square provided therefor and forthwith, in the presence of the voter, shall place one of the black seals furnished along with the other election supplies over the square in such manner as to make it impossible to see the number placed therein without removing the seal, yet so that the seal may be removed without obliterating the number placed in the square. After numbering the ballot the inspector shall detach the stub and pass the ballot to each of the other inspectors, and it must then, without being opened or examined, be deposited in the proper ballot box.
*(Acts 1961, No. 663, p. 827, §19; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-40** Assistance of Disabled Electors Generally {#sec-11-46-40 omnilex-key=us-al-statutes--title-11--11-46-40}
When paper ballots are used, any elector applying to vote who shall state under oath to any of the inspectors (which oath may be administered by any one of the inspectors) that by reason of his inability to write the English language, or by reason of blindness or the loss of the use of his hand or hands he is unable to prepare his ballot may have the assistance of any person he may select. In such case, said elector must remain within the polling place, and the inspector shall send for the person selected. If the person first selected cannot be found, then such elector may select another person to assist him. The person so selected shall render said elector all such assistance in the preparation of his ballot as he may require so that the ballot may be voted for the candidate of his choice in the manner provided in this article. In cities of more than 3,000 inhabitants, the elector and the person selected to assist him shall retire to a booth or compartment and there prepare the elector’s ballot. In all other cities and towns they shall be permitted to prepare it at any point in the polling place.
*(Acts 1961, No. 663, p. 827, §20; Acts 1987, No. 87-581, p. 928, §8.)*
##### **§ 11-46-41** Forms of Oaths to Be Taken by and for Challenged Voters; Penalty for False Oath; Refusal to Take Oath {#sec-11-46-41 omnilex-key=us-al-statutes--title-11--11-46-41}
*[Repealed]*
Repealed by Acts 2006-281, p. 496, §2, effective January 1, 2007.
*(Acts 1961, No. 663, p. 827, §21; Acts 1976, No. 358, p. 403, §12; Acts 1982, No. 82-458, p. 711, §9.)*
##### **§ 11-46-42** Number of Electors Allowed in Polling Place; Time Limit, Etc., for Occupation of Booth {#sec-11-46-42 omnilex-key=us-al-statutes--title-11--11-46-42}
Where paper ballots are used, no more than 10 electors shall be allowed in the polling place at the same time.
In all elections for which voting booths or compartments have been provided, if all such booths or compartments are occupied and other electors are waiting to vote, no elector shall occupy a booth or compartment for a longer time than five minutes. No elector shall be allowed to occupy a booth or compartment already occupied by another nor to speak or converse with anyone except as provided in this article while in the polling place. After having voted or declined or failed to vote within five minutes, the elector shall immediately withdraw from the polling place and go beyond the prohibited distance and shall not enter the polling place again.
*(Acts 1961, No. 663, p. 827, §22.)*
##### **§ 11-46-43** Right of Secret Ballot; Write-In Voting Prohibited {#sec-11-46-43 omnilex-key=us-al-statutes--title-11--11-46-43}
(a) Every voter in a municipal election shall have the right to vote a secret ballot which shall be kept secret and inviolate.
(b) Electors shall not be entitled to vote for any person whose name does not appear on the ballot, and no elector shall write in the name of any person on the ballot.
*(Acts 1961, No. 663, p. 827, §23; Acts 1976, No. 358, p. 403, §13.)*
##### **§ 11-46-44** Votes Not to Be Counted until Polls Closed; Disposition of Poll Lists and Affidavits; Counting of Ballots {#sec-11-46-44 omnilex-key=us-al-statutes--title-11--11-46-44}
(a) No votes shall be counted until the polls are closed.
(b) Immediately after the polls are closed at elections where paper ballots are used, the poll list signed by the voters and the poll list made by one of the clerks shall be sealed in separate envelopes and labelled before the inspectors begin to count the votes.
(c) As soon as this is done, the ballots cast shall be counted in the following manner: The returning officer or one of the inspectors must take the ballots one by one from the box in which they were deposited, at the same time reading aloud the name of each person receiving a vote and the office for which the person received the vote, and they must separately keep a calculation of the number of votes each person receives and for what office the person receives them. If the elector has marked more than there are persons to be elected to an office or if for any reason it is impossible to determine the elector’s choice for any office to be filled, the ballot shall not be counted for that office, but this shall not vitiate the ballot so far as properly marked nor shall any ballot be rejected for any technical error which does not make it impossible to determine the elector’s choice.
*(Acts 1961, No. 663, p. 827, §24; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-45** Preparation of Statements of Vote; Certification, Sealing, and Delivery of Statements and Poll Lists; Packaging of Ballots; Sealing and Delivery of Ballot Boxes {#sec-11-46-45 omnilex-key=us-al-statutes--title-11--11-46-45}
(a) At elections where paper ballots are used, as soon as the ballots are all counted, the inspectors must ascertain the number of votes received for each person and for what office and must make a statement of same in writing. Each of the inspectors must sign this statement and must also certify in writing on the sealed envelope containing the poll list signed by the electors that such poll list is the poll list of the election in the ward or voting place at which they were inspectors, the day and year on which such election was held and for what offices. The statement of the vote and the poll list thus certified, together with a list of the registered electors qualified to vote at such voting place at such election on such day, must be sealed up in an envelope furnished along with the other election supplies and addressed to the municipal governing body. Each of the inspectors shall write his or her name across every fold at which the envelope when fastened could be opened, and such envelope shall be delivered immediately to the returning officer of the ward, who shall deliver it to the municipal clerk along with the ballot box within the time prescribed in subsection (c).
(b) As soon as the ballots contained in a ballot box have been counted and the statement of the vote prepared as directed in subsection (a), the inspectors shall roll up the ballots so counted, seal the bundle thereof, and label the same as to show for what officer or officers the ballots contained therein were received. The rejected ballots, if any, shall also be rolled up, the package thereof labelled as rejected ballots and sealed up as the other parcel of ballots. These sealed packages, together with the sealed poll list made by one of the clerks, shall be returned by the inspectors to the ballot box from which the ballots were taken and the ballot box shall be securely sealed and labelled so as to show the nature of its contents. The inspectors shall also attach to the outside of the box a slip of paper or other device showing the total votes received by each candidate voted for in such election.
(c) The envelope containing the statement of the votes prepared pursuant to subsection (a) and the sealed ballot box shall be delivered to the returning officer of the ward who shall immediately and in any event not later than 11:00 A.M. of the next day after the polls have closed deliver them to the municipal clerk, who shall thereupon give such returning officer a receipt stating therein the condition of the box when received.
*(Acts 1961, No. 663, p. 827, §25; Acts 1980, No. 80-94, p. 140, §6; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-46** Delivery of Returns, Etc.; Retention and Destruction of Ballot Boxes; Opening of Ballot Boxes {#sec-11-46-46 omnilex-key=us-al-statutes--title-11--11-46-46}
(a) At the time appointed by the municipal governing body to canvass the returns of the election the municipal clerk shall deliver to the governing body the envelopes addressed to the governing body, which were delivered to him or her by the returning officers of the several wards in the city or town immediately after the votes had been counted and the returns thereof prepared.
(b) The clerk shall securely keep the ballot boxes until it is known that there will be no contest, but in any event not less than six months, and, if in that time no contest has been properly instituted, the clerk shall then destroy the contents of the boxes without examining the same.
(c) No ballot box shall be opened except in one of the following events:
(1) In the event of a contest, where the opening of a box has been ordered by the court hearing the contest, in which event the ballot box shall be opened by or under the supervision of the judge ordering the opening of a box and in the manner prescribed by him or her.
(2) For the purpose of canvassing the returns and obtaining the result of the election in a particular ward or voting district from the contents of the box when the box has been returned, but no certificate of the result of the election has been separately delivered to the municipal governing body by the election inspectors. If a box is opened for this latter purpose the certificate of result contained therein, if any, and if no certificate of result is enclosed, then any other of the contents of the box, so far as necessary, may be used to determine the result of the election, after which the papers shall be returned into the box and the box shall be resealed in the presence of the municipal governing body, and the box shall then be retained without again opening it for the time prescribed in subsection (b).
(3) For the purpose of conducting a recount of the ballots as otherwise allowed by law.
*(Acts 1961, No. 663, p. 827, §26; Acts 1980, No. 80-94, p. 140, §7; Act 2003-400, p. 1150, §1; Act 2006-281, p. 496, §1; Act 2010-687, §1.)*
##### **§ 11-46-47** Delivery, Examination, and Identification of Keys to Voting Machines; Examination of Counters, Ballots, Etc.; Certification as to Keys, Counters, and Ballots; Opening of Machines and Polls {#sec-11-46-47 omnilex-key=us-al-statutes--title-11--11-46-47}
(a) Whenever voting machines are used for municipal elections, the key or keys to the voting machine or machines, still in the envelopes in which they were placed when the machines were sealed for this election pursuant to subsection (b) of Section 11-46-33 and with the seals thereof unbroken and all other necessary election supplies shall be delivered to the inspector of each poll at least 30 minutes before the time for opening the polls. The inspector shall compare the number appearing on the envelope containing the key or keys with the number shown in the protective counter, and, if these numbers are not identical, he shall not break the seal on the envelope containing the keys, and he shall immediately so notify the municipal clerk or his representative, who shall immediately deliver the correct key or keys or another properly sealed machine. If the numbers on the envelope and the respective numbers on the seal and on the protective counter are found to be the same, the inspectors shall open the door concealing the counters.
(b) Before the polls are declared open the election officials and each authorized watcher or any interested person shall carefully examine each and every counter and see that it registers zero and shall examine the ballots and satisfy themselves that the ballots are in their proper place on the machine. The election officials shall post the sample ballots and the model for the guidance of voters at conspicuous points about the polling place. All persons authorized to be in the polling place shall satisfy themselves that the voting machine is properly placed and that the face of the machine is turned so that the election officials and the public may obtain a clear and unobstructed view of the same at all times except when the curtain on the machine is closed for the casting of the ballot.
(c) The election officials and at least two watchers of opposing interests (if any there shall be) shall then sign a certificate setting out that the keys were delivered intact, that the numbers on the protective counter and seal correspond with that on the envelope, that all the counters were set at zero and that the ballot labels were in their proper places. If any counter, however, does not register zero, the inspector shall summon the custodian of the machine, who shall set the counter back to zero.
(d) The machine shall then be opened for voting and the polls formally declared open.
*(Acts 1961, No. 663, p. 827, §27.)*
##### **§ 11-46-48** Provision of Election Materials and Supplies; Preparation of Lighting Facilities; Posting and Placement of Diagrams and Models {#sec-11-46-48 omnilex-key=us-al-statutes--title-11--11-46-48}
The municipal clerk shall furnish and deliver with each voting machine: Lighting facilities which shall give sufficient light to enable voters while in the voting machine booth to read the ballot labels and suitable for the use of election officers in examining the counters; a model and two diagrams or sample ballots of suitable size, representing such part of the face of such voting machine as will be in use in the election, and accompanied by directions for voting on the machine; a seal or seals for sealing the machine after the polls are closed; an envelope for the return of the keys, if the construction of the voting machine shall permit their separate return; and such other election materials and supplies as may be necessary.
The lighting facilities above mentioned shall be prepared and in good order for use before the opening of the polls. The diagrams shall be posted prominently outside the voting booth for the instruction of electors. The model shall be placed in the polling place and at or outside the guard rail or barrier.
*(Acts 1961, No. 663, p. 827, §28.)*
##### **§ 11-46-49** Election Officers for Voting Machines; Duties {#sec-11-46-49 omnilex-key=us-al-statutes--title-11--11-46-49}
(a) At all elections where voting machines are used, there shall be the following election officers for each voting machine: An inspector, a chief clerk, and a first and a second assistant clerk; except, in the event voting centers are established, then the requirements of Section 11-46-24 shall control the number of election officials.
(b) The inspector shall be in general charge of the poll, shall see that the counter compartments of the machine are never unlocked or opened so that the counters are exposed during voting, shall see that the other election officers perform the duties imposed on them by this section, shall keep a record of all voters at such machine who received assistance pursuant to subsection (a) of Section 11-46-51, and all other records required by this article, and immediately after the polls have closed and the statement of the returns has been made, shall deliver such statement and the key or keys to the machine to the municipal clerk. He shall also act as challenger.
(c) The chief clerk shall examine the list of qualified electors and check off the names of voters which appear thereon as they vote.
(d) The first assistant clerk shall attend the poll list and see that each voter signs his name thereon in the order in which he votes.
(e) The second assistant clerk shall attend the voting machine at all times and see that it is not tampered with. He shall also inspect the ballot labels at frequent intervals to see that none have been tampered with and that the machine has not been injured.
*(Acts 1961, No. 663, p. 827, §29; Acts 1976, No. 358, p. 403, §14.)*
##### **§ 11-46-50** Identification of Voters Where Voting Machines Used; Voting Procedure; Assistance of Voters; Provisional Ballot {#sec-11-46-50 omnilex-key=us-al-statutes--title-11--11-46-50}
(a) The election officials, where voting machines are used, shall ascertain whether each applicant to vote is entitled to vote, and each applicant found to be entitled to vote shall be permitted to vote in the manner provided in this article. Each applicant to vote shall identify himself or herself to the chief clerk, who shall examine the list of qualified electors furnished by the municipal clerk and, if such voter’s name appears on such list, the chief clerk shall mark the applicant’s name off the list. The applicant, unless unable to write his or her own name because of physical handicap or illiteracy, shall then sign his or her name on the poll list on the line numbered to indicate the order in which the voters cast their ballots, and the clerk shall record the voter’s name on a second poll list on the line numbered to indicate the order in which the voter cast his or her ballot. Thereafter, the voter shall be admitted within the voting machine booth and permitted to vote.
(b) If the applicant is unable to sign his or her name because of physical disability or illiteracy, his or her name shall be written for him or her in the manner prescribed in subsection (e) of Section 11-46-39 for the writing of names of voters on the poll list at polls where paper ballots are used.
(c) If the applicant’s name is not on the list of qualified voters, the applicant shall not be allowed to vote except by provisional ballot.
*(Acts 1961, No. 663, p. 827, §30; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-51** Instruction of Voters in Use of Machines; Oath, Etc., of Disabled Voters; Assistance of Voters {#sec-11-46-51 omnilex-key=us-al-statutes--title-11--11-46-51}
(a) The election officers shall, with the aid of the diagrams authorized by this article and the mechanically operated model, instruct each voter before he enters the voting machine booth regarding the operation of the machine and shall give the voter opportunity personally to operate the model. No voter shall be permitted to receive any assistance in voting at any election, unless he shall first state in writing upon printed forms supplied for that purpose and under oath or affirmation, which shall be administered to him by the inspector, that he is blind or that he cannot read the names on the voting machines or that, by reason of physical disability, he is unable to see the machine or prepare it for voting or to enter the voting machine booth without assistance. The voter shall state the specific physical disability which requires him to receive assistance. Thereupon the voter may request assistance of two inspectors of his choice or some other person of his own choice and he shall be assisted by the two election officials of his choice or by such other person who shall aid him in voting, and the inspector shall forthwith enter in writing on the record of assisted voters the voter’s name, the fact that the voter cannot read the names on the voting machine, if that shall be the reason for requiring assistance and, otherwise, the specific physical disability which requires him to receive assistance and the name of the election officials or such other person furnishing the assistance. Further, should an illiterate voter desire the assistance of a federal observer in casting his ballot, the election officials shall permit such federal observer to assist such illiterate voter in casting his ballot.
If any voter, after entering the voting machine booth and before the closing of such booth shall ask for further instruction concerning the manner of voting, he may choose an election officer or other person of his choice who shall give him such instructions, but no official or other person giving a voter such instructions shall in any manner request, suggest, or seek to persuade or induce any such voter to vote any particular ticket, or for any particular candidate or for or against any particular question. After giving such instructions and before the elector closes the booth or votes, the election officer or other person shall retire, and the voter shall forthwith vote.
(b) It shall be unlawful for any official to assist a voter who has not made the oath required in subsection (a) of this section, or for an official or any other person to do anything to enable himself to see how any voter votes other than in the course of assisting a voter as provided in subsection (a) of this section.
*(Acts 1961, No. 663, p. 827, §31; Acts 1971, No. 2230, p. 3587; Acts 1976, No. 358, p. 403, §15; Acts 1987, No. 87-581, p. 928, §9.)*
##### **§ 11-46-52** Closing of Polls; Locking of Machines; Announcement of Results; Statements of Canvass; Proclamation; Disposition of Voting Materials {#sec-11-46-52 omnilex-key=us-al-statutes--title-11--11-46-52}
(a) When the time arrives for closing the polls, all qualified voters who are then waiting within the voting room to vote shall be permitted by the election officers to do so. As soon as the last voter has voted and the poll closed, the election officials shall immediately lock the machines against voting.
(b) The election officials shall then sign a certificate stating that the machine was locked and sealed, giving the exact time. Such certificate shall also state the number of voters shown on the public counters, which shall be the total number of votes cast on such machine in that ward, the number on the seal, and the number registered on the protective counter.
(c) The election officials shall then open the counting compartment in the presence of the watchers and of at least one representative of any newspaper or press association which cares to be represented, giving full view of all the counter numbers. The inspector shall, under the scrutiny of the watchers, in the order of the officers as their titles are arranged on the machines, read and announce in distinct tones the designating number and letter on each counter for each candidate’s name, if the construction of the voting machine is such as to require a designating number and letter, and the result as shown by the counter numbers. He or she shall in the same manner announce the result on each constitutional amendment, bond proposition, or any other question voted on.
(d) The vote as registered shall be entered on the statements of canvass in ink by the clerks, such entries to be made in the same order on the space which has the same designating number and letter if the construction of the voting machine is such as to require a designating number and letter, after which the figures shall again be verified by being called off in the same manner from the counters of the machines. The returns of the canvass as required by law shall then be filled out, verified and shall show the number of votes cast for each candidate, the number of votes cast for and against any proposition submitted, and shall be signed by the election officials. The counter compartments of the voting machine shall remain open throughout the time of the making of all statements and certificates and the official returns and until such have been fully verified, and during such time the watchers of any candidate or any representative of any newspaper shall be admitted.
(e) The proclamation of the result of the votes cast shall be deliberately announced in a distinct voice by the inspector who shall read the name of each candidate with the designating number and letter, if the construction of the voting machine is such as to require a designating number and letter, his or her counter and the vote registered on such counter and also the vote cast for and against each proposition submitted. During such proclamation, ample opportunity shall be given to any person lawfully entitled to be in the polling place to compare the results announced with the counter dials of the machine and any necessary corrections shall then and there be made, after which the doors of the voting machine shall be locked and sealed with the seal provided, so sealing the operating lever or electrical control, if an electrically operated machine, that the voting and counting mechanism will be prevented from operation.
(f) The record of assisted voters, the oaths of assisted voters, the poll list and a copy of the list of qualified electors shall be placed in the voting machine, if the machine is so constructed that this may be done, and if these items cannot be placed in the machine, then they shall be sealed in an envelope or package, across the seal of which each election official shall sign his or her own name, and this envelope or package shall be delivered to the municipal clerk and retained by him or her unopened for the time prescribed by subsection (b) of Section 11-46-53 for the retention of records of elections. The inspectors shall deliver to the municipal clerk the keys of the machine, enclosed in a sealed envelope, across the seal of which shall be written his or her own name, together with that of the other election officials, and on this envelope shall be recorded the date of the election, the number of the voting district, the number of the seal with which the machine was sealed, the number of the public counter, and the number on the protective counter.
*(Acts 1961, No. 663, p. 827, §32; Act 2006-281, p. 496, §1.)*
##### **§ 11-46-53** Voting Machines to Remain Locked During Period for Filing of Contests; When Seals of Machines May Be Broken; Disposition of Records Taken from Machines {#sec-11-46-53 omnilex-key=us-al-statutes--title-11--11-46-53}
(a) The voting machines shall remain locked against voting for the time provided by law for the filing of contests and then shall have the seal broken only on the order of the municipal governing body and if, in the opinion of such body, the contest has developed or is likely to develop, and shall remain locked until such times as ordered by the court hearing the contest or until a final determination thereof; provided, that on the order of any court of competent jurisdiction or on the order of the municipal governing body, the seal may be broken for the purpose of proper investigation. When such investigation is completed, the machine shall again be sealed and across the envelope containing the keys shall be written the signature of the person or persons having broken same; provided further, that in the event another election is held during the time for which the machines are required by this subsection to be locked and the machines are needed at such election, the municipal governing body shall be authorized to break the seal and make a record of the numbers on all counters on each machine and to remove all of the election records from the machine.
(b) The municipal governing body shall securely seal all records taken from a machine in an envelope or package and on the outside thereof label the package in such manner as to indicate plainly the machine from which they were removed and the month, day, and the year, of the election of which they are records. Each member of the municipal governing body present when the machines were opened shall certify to the accuracy of the records of the numbers on the counters and shall sign the envelope or package across the seal. This certificate and all other records removed from the voting machines shall be delivered to the municipal clerk and preserved by him for the same length of time prescribed in subsection (b) of Section 11-46-46 for the retention of paper ballots and then destroyed in the same manner that paper ballots are destroyed.
*(Acts 1961, No. 663, p. 827, §33.)*
##### **§ 11-46-54** Designation, Etc., of Custodians of Voting Machines and Keys; Transportation, Storage, and Protection of Machines {#sec-11-46-54 omnilex-key=us-al-statutes--title-11--11-46-54}
(a) The governing body of any municipality procuring voting machines shall designate a person or persons who shall have the custody of the voting machines and the keys therefor when the machines are not in use at an election and shall provide for his compensation and for the safe storage and care of the machines and keys.
(b) All voting machines, when not in use, shall be properly boxed or covered and stored in a suitable place or places by said custodian. The same authority that caused the delivery of the voting machines shall be charged with transporting such machines back to the custodian and shall furnish all necessary protection to see that such machines are not molested nor injured from the time such machines leave the place where they are regularly stored until they are turned over to the custody of the officials of a voting district and from the time that custody ceases on the part of the voting district officials and the machines are returned to the place of regular storage.
*(Acts 1961, No. 663, p. 827, §34.)*
##### **§ 11-46-55** (Amended by Act 2026-579) Canvassing of Returns and Certificate of Election; Determination of Majority; Runoff Elections; Tie Votes {#sec-11-46-55 omnilex-key=us-al-statutes--title-11--11-46-55}
**AMENDED** **BY ACT 2026-579, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) Commencing at 12:00 noon on the first Tuesday after the election, the municipal governing body shall proceed to open the envelopes addressed to the governing body which have been delivered by the returning officers to the municipal clerk, canvass the returns, and ascertain and determine the number of votes received by each candidate and for and against each proposition submitted at the election. If it appears that any candidate or any proposition in the election has received a majority of the votes cast for that office or on that question, the municipal governing body shall declare the candidate elected to the office or the question carried, and a certificate of election shall be given to the individuals by the municipal governing body or a majority of them, which shall entitle the individuals so certified to the possession of their respective offices immediately upon the expiration of the terms of their predecessors as provided by law. If the certification results of provisional ballots cast at the election have been received from the board of registrars prior to the first Tuesday after the election, or if no provisional votes were cast in the election, the municipal governing body, at any special or regular meeting, may canvass the results before the first Tuesday after the election.
(b) If a single office is to be filled at the election and there is more than one candidate running, then the majority of the votes cast for the office in the election shall be ascertained by dividing the total votes cast for all candidates for the office by two, and any number of votes in excess of one half of the total votes cast for all candidates for the office shall be a majority within the meaning of subsection (a).
(c) If two or more offices constituting a group are to be filled and there are more candidates for election than there are offices, then the majority of the votes cast for the office in the election shall be ascertained by dividing the total vote cast for all candidates for the offices by the number of positions to be filled and then dividing the result by two. Any number of votes in excess of the number ascertained by the last division shall be the majority prescribed in subsection (a) as necessary for election. If in ascertaining the result in this way it appears that more candidates have obtained this majority than there are positions to be filled, then those having the highest vote, if beyond the majority just defined, shall be declared elected to fill the positions.
(d) If no candidate receives a majority of all the votes cast in the election for any one office or offices for the election to which there were more than two candidates, then the municipal governing body shall order a second or runoff election to be held on the fourth Tuesday following the regular election, at which election the two candidates having received the most and the second most votes, respectively, shall be candidates, and the individual receiving the highest number of votes for that office in the runoff election shall be declared elected.
(e) In the event one of the candidates for a particular office in the runoff election withdraws or dies, then there need not be a second or runoff election to fill the office. If there should be a tie vote cast at any runoff election, then in that event the tie shall be decided by the municipal governing body no later than 12:00 noon on the first Tuesday following the second or runoff election. A vote for a particular candidate by a majority of those members eligible to vote of the governing body shall be necessary to decide the election in his or her favor. If the municipal governing body fails to break the tie, the elected candidate shall be decided by lot by the judge of probate of the county where the city or town hall is located no later than 5:00 p.m. on the first Tuesday following the second or runoff election in the presence of the candidates and other electors who choose to be present.
(f) Any judge of probate who openly participated in the promotion of candidates in the election that resulted in a tie may not decide the outcome of the election and shall be disqualified to do so. The presiding circuit court judge in the county where the city or town hall is located shall replace the disqualified judge of probate and shall conduct the duties required herein.
(g) Within 10 days of canvassing the results, the municipal clerk shall file a copy of each certificate of election with all of the following:
(1) The office of the judge of probate of the county in which the city or town hall is situated. The judge of probate shall file the certificate in the same manner that he or she files the declaration of the result of elections to county offices.
(2) The Secretary of State.
(3) The Alabama League of Municipalities.
*(Acts 1961, No. 663, p. 827, §35; Acts 1980, No. 80-94, p. 140, §8; Acts 1982, No. 82-458, p. 711, §10; Act 2006-281, p. 496, §1; Act 2006-354, p. 937, §2; Act 2010-687, p. 1660, §1; Act 2015-216, p. 638, §1; Act 2021-157, §1; Act 2021-164, §1; Act 2022-337, §1.)*
##### **§ 11-46-55.1** Recount Procedures {#sec-11-46-55.1 omnilex-key=us-al-statutes--title-11--11-46-55.1}
(a) Any person with standing to contest a municipal election may petition the canvassing authority for a recount of any or all precinct returns. The time period for requesting a recount ends 48 hours after the official canvass of returns by the municipal governing body. The petitioner must be prepared to pay the cost of the recount and must be required to give security to cover these costs in an amount as determined by the municipal governing body based upon an estimate of actual costs. The recount must be conducted under the supervision of a trained and certified poll official. Representatives of opposing interests shall be given at least 24 hours’ notice and shall be invited to participate in the recount.
(b) The recount shall be conducted as simply as the type of equipment and local conditions permit provided that the following minimum safeguards shall be observed:
(1) The box or envelope holding the ballots shall be delivered unopened to the inspector in charge of the recount.
(2) A representative of the municipality shall be present during the recount.
(3) Where ballots are counted by hand, representatives of opposing interests have the right to participate in the hand count, and any unresolved disputes over the interpretation of the voter’s intent may be appealed to the municipal governing body.
(c) When the recount has been completed, the ballots shall be returned to their container along with a copy of the recount results. The ballot container shall be sealed and signed by the inspector conducting the recount and by the representative of the authority having custody of the ballots.
(d) If the recount produces a change in precinct totals of sufficient magnitude to alter the result of the election, the outcome shall constitute grounds for an election contest as now prescribed by law. If the recount of the resulting contest alters the result of the election, the cost of the recount shall be borne by the municipality.
*(Act 2003-400, p. 1150, §2; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-56** Absentee Ballots - Eligibility {#sec-11-46-56 omnilex-key=us-al-statutes--title-11--11-46-56}
Any qualified elector of a city or town shall be entitled to cast an absentee ballot under and pursuant to the election laws of the State of Alabama in any municipal election.
*(Acts 1961, No. 663, p. 827, §37; Acts 1976, No. 358, p. 403, §16.)*
##### **§ 11-46-57** Absentee Ballots - Casting and Handling of Ballots; Duties and Compensation of Clerks, Etc., Generally; Applicability of Other Laws {#sec-11-46-57 omnilex-key=us-al-statutes--title-11--11-46-57}
The provisions of Chapter 11 of Title 17 shall be applicable to the casting and handling of absentee ballots in municipal elections, and any amendments, extensions, or deletions from this chapter in the future shall likewise be applicable to municipal elections.
The town clerk, city clerk, or other officer performing the duties of the clerk, as the case may be, shall have and perform the duties required by Chapter 11 of Title 17. For performing these duties, the municipal governing body may compensate the clerk, or other officer performing the duties of the clerk, in whatever manner and amount it deems appropriate.
All other laws of this state regulating and providing for voting of an absentee ballot shall apply to elections held under this article.
*(Acts 1961, No. 663, p. 827, §37; Acts 1976, No. 358, p. 403, §16; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-58** Absentee Ballots - Marking, Posting, Etc., of Lists of Applicants {#sec-11-46-58 omnilex-key=us-al-statutes--title-11--11-46-58}
The town clerk, city clerk, or other officer performing the duties of the clerk, as the case may be, in municipal elections held under the provisions of this article, shall comply with the provisions of Chapter 11 of Title 17 with respect to marking, enrolling, posting, and delivering of lists showing the names and addresses of applicants for an absentee ballot.
*(Acts 1961, No. 663, p. 827, §38; Acts 1976, No. 358, p. 403, §17; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-59** Offenses of Mayor and Other Executive Officers {#sec-11-46-59 omnilex-key=us-al-statutes--title-11--11-46-59}
(a) Any mayor or other chief executive officer of a municipality who willfully fails to give notice of any municipal election as required in this article shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than $500.00 and may also be imprisoned in the county jail or sentenced to hard labor for the county for not more than six months.
(b) Any mayor or other chief executive officer of a municipality who knowingly puts on the list of qualified electors for a municipal election the name of any person who is not registered, as shown by the records in the probate office of the county in which such municipality lies, shall be guilty of a misdemeanor and, on conviction, must be fined not less than $100.00.
(c) Any mayor or other chief executive officer of a municipality or other officer on whom the duty of the mayor may have temporarily devolved who willfully and knowingly neglects, fails or refuses to perform any of the duties prescribed in this article shall be guilty of a misdemeanor and, on conviction, shall be fined not less than $100.00, unless otherwise provided in this article.
*(Acts 1961, No. 663, p. 827, §39; Acts 1976, No. 358, p. 403, §18.)*
##### **§ 11-46-60** Offenses of Clerks {#sec-11-46-60 omnilex-key=us-al-statutes--title-11--11-46-60}
(a) Any municipal clerk who sends any ballots to or makes any suggestions in reference to furnishing ballots for absent voters, except upon the application or request of the absent voter himself, shall be guilty of a misdemeanor and, on conviction, shall be fined not more than $500.00, and may also be imprisoned in the county jail or sentenced to hard labor for the county for not more than six months.
(b) Any municipal clerk who fails to properly preserve the certificate of results of an election and deliver it to the municipal governing body at the time appointed for canvassing the returns of the election as required by subsection (a) of Section 11-46-46, shall be guilty of a felony and, on conviction, shall be punished by imprisonment in the penitentiary for not less than one nor more than five years.
*(Acts 1961, No. 663, p. 827, §40.)*
##### **§ 11-46-61** Offenses of Election Officers Generally {#sec-11-46-61 omnilex-key=us-al-statutes--title-11--11-46-61}
(a) Any election officer appointed as such by a municipal governing body who shall fail to attend a municipal election without a lawful excuse shall, on conviction, be fined not more than $100.00.
(b) Any election officer who drinks any intoxicating liquors while any election is being held shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $50.00.
(c) Any election officer who, without lawful excuse, neglects, fails, or refuses to perform any official duty prescribed by this article shall be guilty of a misdemeanor, unless otherwise provided, and, on conviction, shall be fined not less than $50.00.
(d) Any election officer who discloses how any elector voted shall be guilty of a misdemeanor and, on conviction, shall be fined not less than $100.00 nor more than $500.00, and may also be sentenced to hard labor for the county for not more than six months.
(e) If any election officer willfully neglects to perform any duty imposed on him by this article or is guilty of any corrupt conduct in the execution of the same, and no other punishment is provided for such neglect or conduct, he must, on conviction, be fined not less than $100.00 nor more than $1,000.00; provided, that no person shall be deemed an officer within the meaning of this subsection, until he first shall have taken an oath well and truly to discharge the duties of such office to the best of his ability or until he shall have performed some of the duties of such office. The failure or refusal of any person to accept office or his failure or refusal to discharge and perform the duties of such office at any time after his appointment thereto and prior to his taking the oath of such office and before he shall have discharged and performed any of the duties thereof shall not in either event be deemed a violation of this subsection.
(f) Any election officer or any other person who makes a copy of the poll list, or any memoranda therefrom, or list of the persons voting or the number of their ballots or discloses the number of such voter’s ballot shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $200.00.
*(Acts 1961, No. 663, p. 827, §41.)*
##### **§ 11-46-62** Offenses of Inspectors {#sec-11-46-62 omnilex-key=us-al-statutes--title-11--11-46-62}
(a) Any inspector of an election who shall, without challenging him, permit any person to vote in a municipal election knowing that he is not a qualified elector shall be fined not less than $100.00.
(b) Any inspector of an election who shall willfully exclude any vote duly tendered and unchallenged in a municipal election, knowing that the person offering the same is lawfully entitled to vote at such election, or who shall willfully receive a vote from any person who has been duly challenged in relation to his right to vote at such election, without exacting from such person such oath or other proof of qualification as is required by law shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $100.00 and may also be sentenced to hard labor for the county for not more than six months.
(c) Any inspector of a municipal election who willfully fails or refuses to advise any elector entitled thereto that he is entitled to an assistant or who refuses to let such elector select an assistant, as required by law, must, on conviction, be fined not less than $100.00 nor more than $500.00.
(d) Any inspector of a municipal election who does or performs any of the following acts shall be guilty of a felony and, upon conviction, shall be imprisoned in the penitentiary for not less than one nor more than five years:
(1) Willfully deceives any elector in preparing his ballot;
(2) Alters or changes the ballot of a voter or substitutes a ballot for the one offered by any voter; or
(3) Makes a false copy of the certificate of the results of an election.
*(Acts 1961, No. 663, p. 827, §42.)*
##### **§ 11-46-63** Failure of Returning Officer to Deliver Statement of Votes and Poll List {#sec-11-46-63 omnilex-key=us-al-statutes--title-11--11-46-63}
Any returning officer of the ward who fails to deliver the statement of votes and poll list of a municipal election to the municipal clerk within the time required by law must, on conviction, be fined not less than $100.00 nor more than $500.00 and must also be imprisoned in the county jail for not more than six months.
*(Acts 1961, No. 663, p. 827, §43.)*
##### **§ 11-46-64** Deception of Disabled Voters by Marker, Etc {#sec-11-46-64 omnilex-key=us-al-statutes--title-11--11-46-64}
Any marker or helper or assistant authorized to aid a disabled voter at a municipal election who willfully deceives any elector in preparing his ballot must, on conviction, be imprisoned in the penitentiary for not less than one nor more than five years.
*(Acts 1961, No. 663, p. 827, §44.)*
##### **§ 11-46-65** Drinking of Intoxicating Liquors by Watcher {#sec-11-46-65 omnilex-key=us-al-statutes--title-11--11-46-65}
Any duly appointed watcher at a municipal election who drinks any intoxicating liquors while the election is being held shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $50.00.
*(Acts 1961, No. 663, p. 827, §45.)*
##### **§ 11-46-67** Offenses of Electors {#sec-11-46-67 omnilex-key=us-al-statutes--title-11--11-46-67}
(a) Any elector who takes or removes or attempts to take or remove any ballot from the polling place at a municipal election before the close of the polls or who remains longer than the time allowed by law in the booth or compartment after being notified his or her time has expired must, on conviction, be fined not less than ten dollars ($10) nor more than one hundred dollars ($100).
(b) Any person who willfully makes to the inspectors of a municipal election a false declaration asserting an inability to prepare his or her ballot without assistance must, on conviction, be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500).
(c) Any qualified elector at any municipal election who takes or receives any money or other valuable thing upon the condition that the same shall be paid at any future time in exchange for the vote of such elector for any particular candidate or the promise to vote for any particular candidate shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500). No witnesses shall be prosecuted for any offense under this subsection as to which the witness testifies before the grand jury.
(d) Any person who falsely impersonates another and thereby or otherwise fraudulently casts a vote in a municipal election or, having voted at such election votes a second time, whether in the same ward or another, shall, on conviction, be punished by hard labor for the county for not more than 12 months or by a fine of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000) or by both fine and sentence to hard labor.
(e) Any absentee voter who shall willfully make or subscribe to an oath falsely in order to qualify to vote at a municipal election shall, on conviction, be punished by hard labor for the county for not more than 12 months or by a fine of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000) or by both fine and sentence to hard labor.
(f) Any person voting at any municipal election who has not registered and taken and subscribed to the registration oath must, on conviction, be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) and may also be imprisoned in the county jail or sentenced to hard labor for the county for not less than one nor more than six months.
*(Acts 1961, No. 663, p. 827, §47; Acts 1976, No. 358, p. 403, §19; Act 2010-687, p. 1660, §1.)*
##### **§ 11-46-68** Miscellaneous Offenses {#sec-11-46-68 omnilex-key=us-al-statutes--title-11--11-46-68}
(a) Any person who shall willfully fail or refuse to perform or discharge any duty relating to absent voters required of him by this article shall be guilty of a misdemeanor and, on conviction, shall be fined not more than $100.00.
(b) Any person found drunk or intoxicated at or about any polling place during any municipal election day is guilty of a misdemeanor and, upon conviction, shall be fined not more than $500.00 and may also be imprisoned in the county jail or sentenced to hard labor for the county for not more than six months.
(c) Any person who, at a municipal election, interferes with any elector when inside the polling place or when marking the ballot, or unduly influences or attempts to unduly influence any elector in the preparation of his ballot must, on conviction, be fined not less than $10.00 nor more than $100.00.
(d) Any person who, during or before a municipal election, willfully removes, tears down, destroys, or defaces any booth or compartment or any convenience provided for the purpose of enabling electors to prepare their ballots or any card printed for the instruction of electors must, on conviction, be fined not less than $10.00 nor more than $500.00.
(e) Any person who buys or offers to buy any vote of any qualified elector at any municipal election by the payment of money or the promise to pay the same at any future time or by the gift of intoxicating liquors or other valuable thing shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not less than $50.00 nor more than $100.00.
(f) Any person who by bribery or offering to bribe or by any other corrupt means attempts to influence any elector in giving his vote in a municipal election or to deter him from giving the same or to disturb or to hinder him in the full exercise of the right of suffrage at any municipal election must, on conviction, be fined not less than $50.00 nor more than $500.00.
(g) Any person who, by the offer of money or the gift of money or by the gift of intoxicating liquor or other valuable thing to any qualified elector at any municipal election or by the loan of money to such elector with the intent that the same shall not be repaid, attempts to influence the vote of such elector at such election, shall be guilty of a misdemeanor and, on conviction, shall be fined not less than $50.00 nor more than $500.00.
(h) Any person who discloses how any elector voted at a municipal election shall be guilty of a misdemeanor and, on conviction, shall be fined not less than $100.00 nor more than $500.00 and may also be sentenced to hard labor for the county for not more than six months.
(i) Any person who fraudulently alters or changes the vote of any elector, by which such elector is prevented from voting in a municipal election as he intended, must, on conviction, be fined not less than $100.00 nor more than $1,000.00 and may also be imprisoned in the county jail for not less than 30 days nor more than six months.
(j) Any person who compares the number on the ballot in a municipal election with the poll list shall be guilty of a misdemeanor and, on conviction, shall be fined not less than $100.00; provided, that this subsection shall not apply on the trial of any contested elections.
(k) Any person who makes a copy of the poll list, or any memoranda therefrom, or list of the persons voting at any municipal election or the number of their ballots or discloses the number of a voter’s ballot shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $200.00.
(l) Any person who, on a municipal election day, disturbs or prevents or attempts to prevent any elector from freely casting his ballot must, on conviction, be fined not less than $500.00 nor more than $1,000.00 and may also be sentenced to hard labor for the county or imprisoned in the county jail for not less than six months nor more than one year.
(m) Any person who forges or falsely writes the name or initials of any inspector of a municipal election on any ballot shall, on conviction, be punished by hard labor for the county for not more than 12 months or by a fine of not less than $500.00 nor more than $2,000.00 or by both fine and sentence to hard labor.
*(Acts 1961, No. 663, p. 827, §48; Acts 1976, No. 358, p. 403, §20.)*
##### **§ 11-46-69** Contest of Elections - Grounds; Commencement of Action {#sec-11-46-69 omnilex-key=us-al-statutes--title-11--11-46-69}
(a) The election of any person declared elected to any office of a city or town may be contested by any person who was at the time of the election a qualified elector of such city or town for any of the following causes:
(1) Misconduct, fraud, or corruption on the part of any election official, any marker, the municipal governing body, or any other person;
(2) The person whose election to office is contested was not eligible thereto at the time of such election;
(3) Illegal votes;
(4) The rejection of legal votes; or
(5) Offers to bribe, bribery, intimidation, or other misconduct calculated to prevent a fair, free, and full exercise of the elective franchise.
(b) Any contest of such an election must be commenced within five days after the result of the election is declared. Such contest shall be instituted in the manner prescribed by Section 17-15-29 and, except as otherwise provided in this article, all proceedings relative to contests of elections to municipal offices shall be governed by the provisions of Articles 2 and 3, Chapter 15, Title 17 of this Code, insofar as they are applicable.
*(Acts 1961, No. 663, p. 827, §49.)*
##### **§ 11-46-70** Contest of Elections - Trial; Entry of Judgment {#sec-11-46-70 omnilex-key=us-al-statutes--title-11--11-46-70}
If, on the trial of the contest of any municipal election, it shall appear that any person other than the one whose election is contested, received or would have received, had the ballots intended for him and illegally rejected been received, the requisite number of votes for election, judgment must be entered declaring such person duly elected, and such judgment shall have the force and effect of investing the person thereby declared elected with full right and title to have and to hold the office to which he is declared elected.
If it appears that no person has or would have had, if the ballots intended for him and illegally rejected had been received, the requisite number of votes for election, judgment must be entered declaring this fact, and such fact must be certified to the municipal governing body and the vacancy in the office, election to which had been contested, shall be filled in the manner prescribed by law for filling the vacancy in such office.
If the person whose election is contested is found to be ineligible to the office, judgment must be entered declaring the election void, and the fact must be certified to the municipal governing body. The vacancy in such office shall be filled in the manner prescribed by law.
If the party whose election is contested is found to have been duly and legally elected, judgment must be entered declaring him entitled to have and to hold the office to which he was so elected.
*(Acts 1961, No. 663, p. 827, §51.)*
##### **§ 11-46-71** Annulment of Elections {#sec-11-46-71 omnilex-key=us-al-statutes--title-11--11-46-71}
No misconduct, fraud, or corruption on the part of the election officers, the marker, the municipal governing body, or any other person, nor any offers to bribe, bribery, intimidation, or other misconduct which prevented a fair, free, and full exercise of the elective franchise can annul or set aside any municipal election unless the person declared elected and whose election is contested shall be shown not to have received the requisite number of legal votes for election to the office for which he was a candidate thereby, nor must any election contested under the provisions of this article be annulled or set aside because of illegal votes given to the person whose election is contested unless it appears that the number of illegal votes given to such person, if taken from him, would reduce the number of votes given to him below the requisite number of votes for election. No election shall be annulled or set aside because of the rejection of legal votes unless it appears that such legal votes, if given to the person intended, would increase the number of his legal votes to or above the requisite number of votes for election.
*(Acts 1961, No. 663, p. 827, §50.)*
##### **§ 11-46-72** Procedure Where Election Not Held on Day Appointed {#sec-11-46-72 omnilex-key=us-al-statutes--title-11--11-46-72}
If any municipal election provided for in this article should not take place on the day appointed, the municipal corporation shall not for that cause be dissolved, but the incumbent officers shall remain in office until their successors shall be elected and qualified. The municipal governing body shall fix some day, as early as convenient, on which day said election shall be held, and the election shall be conducted in all respects as a regular election, and the persons so elected shall hold office until the next general election and until their successors are elected and qualified.
*(Acts 1961, No. 663, p. 827, §52.)*
##### **§ 11-46-73** Provisions of Article as to Offenses Cumulative {#sec-11-46-73 omnilex-key=us-al-statutes--title-11--11-46-73}
It is specifically declared that the designation in this article of certain acts and omissions relative to municipal elections as offenses shall not be exclusive and that any act or omission relative to a municipal election which is by law designated as an offense but which is not mentioned in this article shall continue to be an offense punishable in the manner prescribed by law.
*(Acts 1961, No. 663, p. 827, §54.)*
##### **§ 11-46-74** Use of Election Dates Established by Classification Act or Local Act {#sec-11-46-74 omnilex-key=us-al-statutes--title-11--11-46-74}
Any municipality whose election dates have been established by classification act, local act, or general act of local application may continue to use said election dates unless a majority of the members of the governing body vote to use the election dates established in this article or Section 11-43-2.
*(Acts 1987, No. 87-581, p. 928, §11.)*
#### **Article 3** Elections in Certain Cities or Towns Having Commission Form of Government
##### **§ 11-46-90** Applicability of Article; Costs of Elections {#sec-11-46-90 omnilex-key=us-al-statutes--title-11--11-46-90}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §1; Acts 1982, No. 82-459, p. 724, §1.)*
##### **§ 11-46-91** Standard of Time Applicable; Effect of Legal Holidays or Closing Days; Municipal Governing Body Defined {#sec-11-46-91 omnilex-key=us-al-statutes--title-11--11-46-91}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §2; Acts 1976, No. 361, p. 426, §1.)*
##### **§ 11-46-92** Time of Holding Regular, Special, or Runoff Elections; Assumption of Duties by Officers Elected; Service until Successors Are Elected and Qualified {#sec-11-46-92 omnilex-key=us-al-statutes--title-11--11-46-92}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §3; Acts 1971, No. 160, p. 435; Acts 1980, No. 80-93, p. 132, §1; Acts 1982, No. 82-459, p. 724, §2; Acts 1987, No. 87-583, p. 945, §1.)*
##### **§ 11-46-93** Notice of Elections {#sec-11-46-93 omnilex-key=us-al-statutes--title-11--11-46-93}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §4; Acts 1976, No. 361, p. 426, §2; Acts 1982, No. 82-459, p. 724, §3; Acts 1987, No. 87-583, p. 945, §2.)*
##### **§ 11-46-94** Authority and Procedure for Adjustment of Boundary Lines of Wards; Division of Wards into Voting Districts, Etc {#sec-11-46-94 omnilex-key=us-al-statutes--title-11--11-46-94}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §5.)*
##### **§ 11-46-95** Designation of Voting Places Generally; Voting Centers; Officials and Equipment; Voting Procedures {#sec-11-46-95 omnilex-key=us-al-statutes--title-11--11-46-95}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §6; Acts 1976, No. 361, p. 426, §3; Act 2006-281, p. 496, §1.)*
##### **§ 11-46-96** Ballots; Statements of Candidacy; Withdrawal of Candidacy {#sec-11-46-96 omnilex-key=us-al-statutes--title-11--11-46-96}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §7; Acts 1976, No. 361, p. 426, §4; Acts 1980, No. 80-93, p. 132, §2; Acts 1982, No. 82-459, p. 724, §4; Acts 1987, No. 87-583, p. 945, §3.)*
##### **§ 11-46-97** Proceedings Where Only One Candidate for Office {#sec-11-46-97 omnilex-key=us-al-statutes--title-11--11-46-97}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1965, No. 166, p. 233, §1; Acts 1976, No. 361, p. 426, §5; Acts 1980, No. 80-93, p. 132, §3; Acts 1987, No. 87-583, p. 945, §4.)*
##### **§ 11-46-98** Appointment, Compensation, Etc., of Election Officers {#sec-11-46-98 omnilex-key=us-al-statutes--title-11--11-46-98}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §8; Acts 1971, No. 158, p. 432; Acts 1976, No. 361, p. 426, §6; Acts 1982, No. 82-459, p. 724, §5; Acts 1987, No. 87-583, p. 945, §5.)*
##### **§ 11-46-99** Hours During Which Polls Open; Attendance at and Opening of Polls by Election Officers; Oath of Officers; Selection and Duties of Challengers; Deletion of Voters by Absentee Ballot from Lists of Qualified Electors; Preservation of Order {#sec-11-46-99 omnilex-key=us-al-statutes--title-11--11-46-99}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §9; Acts 1976, No. 361, p. 426, §7; Acts 1982, No. 82-459, p. 724, §6.)*
##### **§ 11-46-100** Appointment of Election Officers Upon Failure of Others to Attend Polls {#sec-11-46-100 omnilex-key=us-al-statutes--title-11--11-46-100}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §10.)*
##### **§ 11-46-101** Schools for Instruction of Election Officials in Use of Voting Machines; Qualifications and Certification of Election Officials {#sec-11-46-101 omnilex-key=us-al-statutes--title-11--11-46-101}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §11.)*
##### **§ 11-46-102** Public Exhibition of Voting Machines for Instruction and Information of Voters; Posting, Etc., of Diagrams Furnished with Voting Machines {#sec-11-46-102 omnilex-key=us-al-statutes--title-11--11-46-102}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §12; Acts 1976, No. 361, p. 426, §8.)*
##### **§ 11-46-103** Election Supplies {#sec-11-46-103 omnilex-key=us-al-statutes--title-11--11-46-103}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §13.)*
##### **§ 11-46-104** Duties of Clerk as to Voting Machines {#sec-11-46-104 omnilex-key=us-al-statutes--title-11--11-46-104}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §14.)*
##### **§ 11-46-105** Voting Booths {#sec-11-46-105 omnilex-key=us-al-statutes--title-11--11-46-105}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §15.)*
##### **§ 11-46-106** Watchers {#sec-11-46-106 omnilex-key=us-al-statutes--title-11--11-46-106}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §16; Acts 1976, No. 361, p. 426, §9.)*
##### **§ 11-46-107** Preparation, Certification, Filing, and Publication of Lists of Qualified Regular Voters {#sec-11-46-107 omnilex-key=us-al-statutes--title-11--11-46-107}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §17; Acts 1976, No. 361, p. 426, §10; Acts 1980, No. 80-93, p. 132, §4; Acts 1982, No. 82-459, p. 724, §7; Acts 1987, No. 87-583, p. 945, §6; Act 2014-221, p. 704, §1.)*
##### **§ 11-46-108** Preparation, Etc., of Lists of Qualified Voters Upon Disqualification of Mayor, Etc {#sec-11-46-108 omnilex-key=us-al-statutes--title-11--11-46-108}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §18.)*
##### **§ 11-46-109** Electors to Vote in Ward or Precinct of Residence, Etc.; Qualifications for Voting; Challenges of Voters Generally {#sec-11-46-109 omnilex-key=us-al-statutes--title-11--11-46-109}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §19; Acts 1976, No. 361, p. 426, §11; Acts 1982, No. 82-459, p. 724, §8.)*
##### **§ 11-46-110** Oath and Identification of Voters Challenged Generally; Voting Procedure Where Paper Ballots Used Generally {#sec-11-46-110 omnilex-key=us-al-statutes--title-11--11-46-110}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §20.)*
##### **§ 11-46-111** Assistance of Disabled Electors Generally {#sec-11-46-111 omnilex-key=us-al-statutes--title-11--11-46-111}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §21; Acts 1987, No. 87-583, p. 945, §7.)*
##### **§ 11-46-112** Forms of Oaths to Be Taken by and for Challenged Voters; Penalty for False Oath; Refusal to Take Oath {#sec-11-46-112 omnilex-key=us-al-statutes--title-11--11-46-112}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §22; Acts 1976, No. 361, p. 426, §12; Acts 1982, No. 82-459, p. 724, §9.)*
##### **§ 11-46-113** Number of Electors Allowed in Polling Place; Time Limit, Etc., for Occupation of Booth {#sec-11-46-113 omnilex-key=us-al-statutes--title-11--11-46-113}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §23.)*
##### **§ 11-46-114** Right of Secret Ballot; Write-In Voting Prohibited {#sec-11-46-114 omnilex-key=us-al-statutes--title-11--11-46-114}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §24; Acts 1976, No. 361, p. 426, §13.)*
##### **§ 11-46-115** Votes Not to Be Counted until Polls Closed; Disposition of Poll Lists and Affidavits; Counting of Ballots {#sec-11-46-115 omnilex-key=us-al-statutes--title-11--11-46-115}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §25.)*
##### **§ 11-46-116** Preparation of Statements of Vote; Certification, Sealing, and Delivery of Statements and Poll Lists; Packaging of Ballots; Sealing and Delivery of Ballot Boxes {#sec-11-46-116 omnilex-key=us-al-statutes--title-11--11-46-116}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §26; Acts 1980, No. 80-93, p. 132, §5.)*
##### **§ 11-46-117** Delivery of Returns, Etc., to Governing Body; Retention and Destruction of Ballot Boxes Generally; When Ballot Boxes May Be Opened {#sec-11-46-117 omnilex-key=us-al-statutes--title-11--11-46-117}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §27; Acts 1980, No. 80-93, p. 132, §6.)*
##### **§ 11-46-118** Delivery, Examination, and Identification of Keys to Voting Machines; Examination of Ballots, Counters, Etc.; Certification as to Keys, Counters, and Ballots; Opening of Machines and Polls {#sec-11-46-118 omnilex-key=us-al-statutes--title-11--11-46-118}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §28.)*
##### **§ 11-46-119** Provision of Election Materials and Supplies; Preparation of Lighting Facilities; Posting and Placement of Diagrams and Models {#sec-11-46-119 omnilex-key=us-al-statutes--title-11--11-46-119}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §29.)*
##### **§ 11-46-120** Election Officers for Voting Machines; Duties {#sec-11-46-120 omnilex-key=us-al-statutes--title-11--11-46-120}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §30; Acts 1976, No. 361, p. 426, §14.)*
##### **§ 11-46-121** Identification of Voters Where Voting Machines Used; Voting Procedure Generally; Assistance of Voters Generally; Challenges to Voters {#sec-11-46-121 omnilex-key=us-al-statutes--title-11--11-46-121}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §31.)*
##### **§ 11-46-122** Instruction of Voters in Use of Machines; Oath, Etc., of Disabled Voters; Assistance of Voters {#sec-11-46-122 omnilex-key=us-al-statutes--title-11--11-46-122}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §32; Acts 1971, No. 2229, p. 3586; Acts 1976, No. 361, p. 426, §15; Acts 1987, No. 87-583, p. 945, §8.)*
##### **§ 11-46-123** Closing of Polls; Locking of Machines; Announcement of Results; Statements of Canvass; Proclamation; Disposition of Voting Materials {#sec-11-46-123 omnilex-key=us-al-statutes--title-11--11-46-123}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §33; Act 2006-281, p. 496, §1.)*
##### **§ 11-46-124** Voting Machines to Remain Locked During Period for Filing of Contests; When Seals of Machines May Be Broken; Disposition of Records Taken from Machines {#sec-11-46-124 omnilex-key=us-al-statutes--title-11--11-46-124}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §34.)*
##### **§ 11-46-125** Designation, Etc., of Custodians of Voting Machines and Keys; Transportation, Storage, and Protection of Machines {#sec-11-46-125 omnilex-key=us-al-statutes--title-11--11-46-125}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §35.)*
##### **§ 11-46-126** Canvassing of Returns, Declaration of Election Result, and Issuance of Certificate of Election by Board of Commissioners; Runoff Elections {#sec-11-46-126 omnilex-key=us-al-statutes--title-11--11-46-126}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §36; Acts 1980, No. 80-93, p. 132, §7; Acts 1982, No. 82-459, p. 724, §10.)*
##### **§ 11-46-127** Absentee Ballots - Eligibility {#sec-11-46-127 omnilex-key=us-al-statutes--title-11--11-46-127}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §38; Acts 1976, No. 361, p. 426, §16.)*
##### **§ 11-46-128** Absentee Ballots - Casting and Handling of Ballots Generally; Duties of Registers, Clerks, Etc., Generally; Applicability of Other Laws Relating to Absentee Voting {#sec-11-46-128 omnilex-key=us-al-statutes--title-11--11-46-128}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §38; Acts 1976, No. 361, p. 426, §16.)*
##### **§ 11-46-129** Absentee Ballots - Marking, Posting, Etc., of Lists of Applicants for Absentee Ballots {#sec-11-46-129 omnilex-key=us-al-statutes--title-11--11-46-129}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §39; Acts 1976, No. 361, p. 426, §17.)*
##### **§ 11-46-130** Offenses of Mayors and Other Executive Officers {#sec-11-46-130 omnilex-key=us-al-statutes--title-11--11-46-130}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §40; Acts 1976, No. 361, p. 426, §18.)*
##### **§ 11-46-131** Offenses of Clerks {#sec-11-46-131 omnilex-key=us-al-statutes--title-11--11-46-131}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §41.)*
##### **§ 11-46-132** Offenses of Election Officers Generally {#sec-11-46-132 omnilex-key=us-al-statutes--title-11--11-46-132}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §42.)*
##### **§ 11-46-133** Offenses of Inspectors {#sec-11-46-133 omnilex-key=us-al-statutes--title-11--11-46-133}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §43.)*
##### **§ 11-46-134** Failure of Returning Officer to Deliver Statement of Votes and Poll List {#sec-11-46-134 omnilex-key=us-al-statutes--title-11--11-46-134}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §44.)*
##### **§ 11-46-135** Deception of Disabled Voter by Marker, Etc {#sec-11-46-135 omnilex-key=us-al-statutes--title-11--11-46-135}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §45.)*
##### **§ 11-46-136** Drinking of Intoxicating Liquors by Watcher {#sec-11-46-136 omnilex-key=us-al-statutes--title-11--11-46-136}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §46.)*
##### **§ 11-46-138** Offenses of Electors {#sec-11-46-138 omnilex-key=us-al-statutes--title-11--11-46-138}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §48; Acts 1976, No. 361, p. 426, §19.)*
##### **§ 11-46-139** Miscellaneous Offenses {#sec-11-46-139 omnilex-key=us-al-statutes--title-11--11-46-139}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §49; Acts 1976, No. 361, p. 426, §20.)*
##### **§ 11-46-140** Contest of Elections - Grounds; Commencement of Action {#sec-11-46-140 omnilex-key=us-al-statutes--title-11--11-46-140}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §50.)*
##### **§ 11-46-141** Contest of Elections - Trial; Entry of Judgment {#sec-11-46-141 omnilex-key=us-al-statutes--title-11--11-46-141}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §52.)*
##### **§ 11-46-142** Annulment of Elections {#sec-11-46-142 omnilex-key=us-al-statutes--title-11--11-46-142}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §51.)*
##### **§ 11-46-143** Procedure Where Election Not Held on Day Appointed {#sec-11-46-143 omnilex-key=us-al-statutes--title-11--11-46-143}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §53.)*
##### **§ 11-46-144** Provisions of Article as to Offenses Cumulative {#sec-11-46-144 omnilex-key=us-al-statutes--title-11--11-46-144}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1961, No. 664, p. 868, §55.)*
##### **§ 11-46-145** Use of Election Dates Established by Classification Act or Local Act {#sec-11-46-145 omnilex-key=us-al-statutes--title-11--11-46-145}
*[Repealed]*
Repealed by Act 2016-295, §1(a), effective May 10, 2016.
*(Acts 1987, No. 87-583, p. 945, §9.)*
### **Chapter 47** Powers, Duties and Liabilities Generally
#### **Article 1** General Provisions
##### **§ 11-47-1** Borrowing of Money Authorized - Twelve-Month Renewable Loans {#sec-11-47-1 omnilex-key=us-al-statutes--title-11--11-47-1}
Cities and towns shall have the right to borrow money for any purpose or purposes not in excess of any limitation imposed by the Constitution and, in case of loans for temporary use, the same may be evidenced either by negotiable notes or by nonnegotiable warrants or certificates of indebtedness which shall not bear exceeding the legal rate of interest, and no obligation of the municipality for money borrowed shall be issued unless signed by the mayor and attested by the clerk, with the seal of the municipality impressed thereon, and a record kept thereof. Any such note, warrant, or certificate of indebtedness shall be payable not later than 12 months after the date of its issuance but may be renewed from time to time until the indebtedness evidenced thereby shall have been paid.
License taxes, ad valorem taxes, rents or revenues from water or any other taxes or revenues due or to become due to a city or town within 12 months from the date of such note, warrant, or certificate of indebtedness may be pledged to secure the payment of any such note, warrant, or certificate of indebtedness.
*(Code 1907, §1181; Code 1923, §1897; Acts 1932, Ex. Sess., No. 213, p. 215, §1; Acts 1935, No. 68, p. 155, §1; Code 1940, T. 37, §465.)*
##### **§ 11-47-2** Borrowing of Money Authorized - Thirty-Year Loans {#sec-11-47-2 omnilex-key=us-al-statutes--title-11--11-47-2}
Any incorporated city or town in this state may borrow money for temporary or any other lawful purpose or use to the extent of its constitutional debt limit and pay all costs, fees, and commissions agreed upon in connection with any such loans, and the governing body thereof may, without an election, issue evidences of indebtedness in the form of interest-bearing warrants, notes, or bills payable, maturing at such times as such governing body may determine, not exceeding 30 years from the date of issue, and any such city or town may as security for any such evidences of indebtedness and, as a part of the contract whereunder any money is borrowed, pledge to the payment thereof so much as may be necessary therefor of any tax or license or revenues that such city or town may then be authorized to pledge to the payment of bonded or other indebtedness.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2011; Acts 1927, No. 472, p. 515; Acts 1932, Ex. Sess., No. 188, p. 203; Code 1940, T. 37, §466; Acts 1986, Ex. Sess., No. 86-712, p. 126.)*
##### **§ 11-47-3** Contracts and Indebtedness for Municipal Buildings and Public Utility Systems; Consolidation of Systems; Ancillary Service Contracts {#sec-11-47-3 omnilex-key=us-al-statutes--title-11--11-47-3}
(a) The governing body of any city or town may contract for the construction, reconstruction, extension, or repair of any municipal building, plant, waterworks system, or electric light and power plant or system or may on credit employ labor and purchase on credit all materials and supplies needed in such construction, reconstruction, extension, or repair and may, without an election, issue evidences of indebtedness in the forms and of the maturities described in Section 11-47-2 to the extent of any indebtedness incurred in such contract or purchase or construction, reconstruction or extension and may secure such evidences of indebtedness by mortgage or deed of trust (in such form and with such provisions as such governing body may determine) on such municipal building, plant, waterworks system, or electric light and power plant or system.
(b) The governing body may consolidate or combine their waterworks systems or plants with their lighting or power plants and systems and use any part of the one system or plant for the operation of the other plant or system, and may use the net proceeds, receipts and revenues from the lighting or power plant for the payment or security of any debt incurred in the construction, maintenance, extension, or operation of the waterworks system.
(c) The governing body may enter into agreements with companies duly registered as service contract providers under Chapter 32 of Title 8 to make available ancillary service contracts to residential utility customers of the city or town’s utilities system, including residential water, sewer, gas, and electric utility services customers, with the endorsement of the city or town if deemed appropriate, and the governing body may apply any fees it receives pursuant to the agreements to its general revenue fund. No city or town shall require utility customers to purchase an ancillary service contract.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2011; Acts 1927, No. 472, p. 515; Acts 1932, Ex. Sess., No. 188, p. 203; Code 1940, T. 37, §466; Act 2013-117, p. 239, §1.)*
##### **§ 11-47-4** Authority for Issuance of Bonds After Reorganization {#sec-11-47-4 omnilex-key=us-al-statutes--title-11--11-47-4}
Bonds authorized to be issued by cities and towns of the state by act of the legislature before the adoption of the constitution or by laws adopted since the adoption of said constitution may be issued by such municipality, the same after becoming reorganized under the applicable provisions of this title as before.
*(Code 1907, §1181; Code 1923, §1897; Acts 1932, Ex. Sess., No. 213, p. 215; Acts 1935, No. 68, p. 155; Code 1940, T. 37, §465.)*
##### **§ 11-47-5** Execution of Contracts {#sec-11-47-5 omnilex-key=us-al-statutes--title-11--11-47-5}
Contracts entered into by a municipality shall be in writing, signed and executed in the name of the city or town by the officers authorized to make the same and by the party contracting. In cases not otherwise directed by law or ordinance, such contracts shall be entered into and executed by the mayor in the name of the city or town and all obligations for the payment of money by the municipality, except for bonds and interest coupons, shall be attested by the clerk. This section shall not be construed to cover purchases for the ordinary needs of the municipality.
*(Code 1907, §1183; Code 1923, §1899; Code 1940, T. 37, §467.)*
##### **§ 11-47-6** Contracts to Be Awarded to Lowest Responsible Bidder {#sec-11-47-6 omnilex-key=us-al-statutes--title-11--11-47-6}
(a) The award of each contract for which bids have been submitted to a municipality shall be made to the lowest responsible bidder who may comply with such reasonable regulations as may be prescribed before the bids are called for.
(b) Any person who violates any of the provisions of this section shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not less than $50.00 nor more than $1,000.00 and may also be sentenced to hard labor for the county for not more than six months.
*(Code 1907, §1195; Acts 1909, No. 200, p. 197; Code 1923, §§1911, 5084; Code 1940, T. 37, §468.)*
##### **§ 11-47-7** Erection, Maintenance, Etc., of Jails, Morgues, Hospitals, Etc {#sec-11-47-7 omnilex-key=us-al-statutes--title-11--11-47-7}
All cities and towns of this state shall have the power to establish, erect, maintain, and regulate jails, morgues, houses of refuge, stationhouses and prisons, public baths and bathhouses, and to own, establish, maintain, and regulate public hospitals, and to purchase and provide for any and all things which may be deemed advisable or necessary thereto and to receive donations and bequests of property or money in trust or otherwise for the exercise of all such powers, rights, and duties incident to the same.
*(Code 1907, §1287; Code 1923, §2045; Code 1940, T. 37, §469.)*
##### **§ 11-47-7.1** Additional Court Costs and Fees on Certain Municipal Cases; Disposition of Funds {#sec-11-47-7.1 omnilex-key=us-al-statutes--title-11--11-47-7.1}
(a) In addition to any court costs and fees now or hereafter authorized, any municipal governing body, by majority vote of the municipal governing body, may individually or jointly with one or more municipalities in the county levy and assess additional court costs and fees up to an amount not to exceed the court costs and fees in the district court of the county for a similar case on each case hereafter filed in any municipal court of the municipality or municipalities. The cost or fee shall not be waived by any court unless all other costs, fees, assessments, fines, or charges associated with the case are waived. The costs and fees when collected by the clerks or other collection officers of the courts, shall be paid into a special municipal fund designated as the corrections fund. The affected governing body shall allocate the funds exclusively for the purchase of land for, and the construction, equipment, operation, and maintenance of, the municipal jail or jails, other correctional facilities, if any, any juvenile detention center, or any court complex.
(b) The municipal governing body may appropriate other funds, space, and property sufficient to maintain and equip any municipal jail or court complex. The municipal governing body may also receive gifts, grants, and property for the use of the jail or court complex and may contract for services related to the construction, equipment, and maintenance of the jail or court complex.
(c) The municipal governing body or municipal governing bodies may provide for the implementation of this section with another governmental entity by entering into a contract pursuant to a resolution or ordinance for the construction and operation of joint municipal correctional facilities or a court complex and may adopt joint rules and regulations applicable to the jurisdiction of each entity relative to the correctional or court facilities.
*(Acts 1994, No. 94-694, p. 1334, §§1-3; Acts 1995, No. 95-401, p. 835, §1; Act 2010-586, p. 1317, §1.)*
##### **§ 11-47-8** Removal of Prisoners from Municipal Jail to Another Jail {#sec-11-47-8 omnilex-key=us-al-statutes--title-11--11-47-8}
If the jail of any municipality is destroyed or becomes overcrowded, insufficient or unsafe or any epidemic dangerous to life is prevalent in the vicinity, or there be danger of rescue or lawless violence to any prisoner, any circuit judge of the county, on application of the mayor or governing body of such municipality and proof of the fact, may direct the removal of any prisoner or prisoners, either before or after conviction, to the nearest sufficient jail in any other municipality or county, and it is the duty of such judge in such case to make an endorsement on the order or process of commitment stating the reason why such removal is ordered and to date and sign such endorsement.
The maintenance and cost of removal of said prisoners shall be borne by the municipality requesting said removal.
*(Acts 1964, 1st Ex. Sess., No. 247, p. 344.)*
##### **§ 11-47-9** Advertisement of Municipalities - Authorized {#sec-11-47-9 omnilex-key=us-al-statutes--title-11--11-47-9}
All municipalities in the State of Alabama shall be and are hereby authorized and empowered to enter into contracts or agreements with any persons, firms, or corporations for the advertisement of such municipality or any function or undertaking of such municipality both within and without the limits of such municipality through the use of any recognized medium of advertising.
*(Acts 1953, No. 869, p. 1167, §1.)*
##### **§ 11-47-10** Advertisement of Municipalities - Costs {#sec-11-47-10 omnilex-key=us-al-statutes--title-11--11-47-10}
The reasonable cost of or charge for such advertising shall be a legal charge against any available funds of the municipality engaged in such advertising.
*(Acts 1953, No. 869, p. 1167, §2.)*
##### **§ 11-47-11** Appropriations, Etc., for Promotion, Etc., of Municipal Resources and for Promotion of Industry, Etc., Within Municipality, Etc {#sec-11-47-11 omnilex-key=us-al-statutes--title-11--11-47-11}
In addition to all other powers which may be conferred on it by law, every incorporated city or town shall have the power to set aside, appropriate and use municipal funds or revenues for the purpose of developing, advertising and promoting the agricultural, mineral, timber, water, labor and all other resources of every kind within its police jurisdiction, and for the purpose of locating and promoting agricultural, industrial and manufacturing plants, factories and other industries within the municipality or elsewhere inside the county not more than 15 miles from the boundaries of the municipality.
*(Acts 1961, Ex. Sess., No. 300, p. 2361.)*
##### **§ 11-47-12** Provision of Building for Storage of Gunpowder, Etc {#sec-11-47-12 omnilex-key=us-al-statutes--title-11--11-47-12}
*[Repealed]*
Repealed by Act 2015-70 effective April 21, 2015.
*(Code 1852, §1119; Code 1867, §1299; Code 1876, §1604; Code 1886, §1380; Code 1896, §2971; Code 1907, §1453; Code 1923, §2309; Code 1940, T. 37, §472.)*
##### **§ 11-47-13** Purchase of School Property and Erection of School Buildings; Levy of Tax Therefor {#sec-11-47-13 omnilex-key=us-al-statutes--title-11--11-47-13}
All municipal corporations may purchase school property or purchase lots and erect school buildings thereon for the use and benefit of the citizens of their respective towns or cities. For said purpose the town council or board of aldermen may levy a tax not exceeding one-fourth of one percent; provided, that the city or town tax shall not exceed the constitutional limitation. The town council or board of aldermen may purchase school property, from time to time, for the maintenance and improvement of such school property and the maintenance of public schools therein within the limits prescribed in this section. Any purchase of school property under the power granted in this section shall only be made by the majority vote of the town council or board of aldermen of such city or town and approved by the mayor.
*(Code 1907, §1458; Code 1923, §2314; Code 1940, T. 37, §474.)*
##### **§ 11-47-14** Provision of Wharves and Landings and Improvement of Waterfronts Generally {#sec-11-47-14 omnilex-key=us-al-statutes--title-11--11-47-14}
All municipal corporations which may have heretofore regularly issued bonds as provided by law for all or any of the purposes of constructing a wharf or wharves and a landing or landings and purchasing such real estate as may be necessary for such wharf or wharves and landing or landings and the equipping and furnishing of the same and improving of the waterfront for such municipalities may expend the proceeds of the sale of such bonds for all or any of the purposes of constructing a wharf or wharves and a landing or landings and acquiring such real estate as may be necessary for such wharf or wharves, landing or landings, either by purchase or condemnation proceedings in the manner provided by Title 18 of this Code, and of equipping and furnishing the same and improving the waterfront for such municipality, within its limits and outside its limits within five miles of the corporate limits of such municipality as such limits are now or may hereafter be established, and for the purpose of securing the complete use and enjoyment of all of said improvements for such municipality whether located within or without its limits.
*(Acts 1919, No. 141, p. 123; Code 1923, §2044; Code 1940, T. 37, §475.)*
##### **§ 11-47-14.1** Construction of Port Facilities by Class 1 Municipalities; Bonds and Other Contributions {#sec-11-47-14.1 omnilex-key=us-al-statutes--title-11--11-47-14.1}
(a) Legislative findings. The Legislature of Alabama finds that the Tombigbee Waterway will soon be completed, and the transportation opportunities afforded thereby must be fully utilized if Alabama is to benefit from economic growth and job development potential afforded by this project, and that local governments need broader authorization to participate in the development of river port facilities necessary to accomplish this purpose.
(b) Municipalities authorized to construct port facilities; limitations thereon. The council or other governing body of any Class 1 municipality may alter and change the channel of any watercourse within 25 miles of such municipality and may construct and maintain wharves and construct buildings and other improvements on and near wharves and wharf sites, within such municipality or within 25 miles of the limits thereof, and may collect wharfage dues and other charges thereon and rentals with respect thereto. Said council or other governing body may lease to others all or any part of wharves or sites for wharves constructed, maintained, or owned by such municipality and any buildings and other improvements so constructed on or near any wharf or wharf site for public or private use for a period or periods not exceeding 40 years from the completion of such construction or for a period or periods not exceeding 40 years from the delivery of the lease if such construction shall have been completed before the date of delivery of the lease, and may authorize the lessees in such leases and their sublessees to construct or maintain buildings, and other improvements upon the properties so leased and collect wharfage dues thereon and to sublet all or any part of said wharves, buildings and other improvements.
(c) When authorization required by other municipalities and county governing body. No municipality shall construct or develop any facilities under the provisions of this section within the police jurisdiction of another municipality or in any unincorporated area of any county without obtaining consent from such municipality and such county evidenced by a resolution adopted by the governing body thereof approving the site of such development or construction.
(d) Bond authorized. To finance such construction and development, any such municipality may issue its general obligation bonds, or may authorize an industrial development board created and operating under the provisions of Sections 11-54-80 through 11-54-101, to issue bonds secured by rentals and other income to be produced therefrom to finance such improvements.
(e) Municipal and county contributions. Any municipality or county governing body may contribute public funds to any project undertaken under this section, and any municipality authorized to act under this section may contract with any county governing body and/or one or more other municipalities to jointly construct and operate facilities authorized under subsection (a) hereof.
*(Acts 1984, No. 84-444, p. 1033.)*
##### **§ 11-47-15** Alteration of Channel of Watercourse; Construction, Maintenance, Leasing, Etc., of Wharves and Buildings, Etc., on and Near Wharves and Wharf Sites {#sec-11-47-15 omnilex-key=us-al-statutes--title-11--11-47-15}
The council or other governing body of any town or city may alter and change the channel of any watercourse in the police jurisdiction of the city or town and may construct and maintain wharves and construct buildings and other improvements on and near wharves and wharf sites and may collect wharfage dues and other charges thereon and rentals with respect thereto. Said council or other governing body may lease to others all or any part of wharves or sites for wharves constructed, maintained, or owned by such town or city and any buildings and other improvements so constructed on or near any wharf or wharf site for public or private use for a period or periods not exceeding 40 years from the completion of such construction or for a period or periods not exceeding 40 years from the delivery of the lease if such construction shall have been completed before the date of delivery of the lease, and may authorize the lessees in such leases and their sublessees to construct or maintain buildings and other improvements upon the properties so leased and collect wharfage due thereon and to sublet all or any part of said wharves, buildings and other improvements.
*(Acts 1939, No. 37, p. 38; Code 1940, T. 37, §470; Acts 1961, No. 820, p. 1206.)*
##### **§ 11-47-16** Establishment, Acquisition, Administration, Etc., of Public Cultural Facilities {#sec-11-47-16 omnilex-key=us-al-statutes--title-11--11-47-16}
Each county, city, and town in this state shall have power to establish, operate, maintain, or contract with others to operate and maintain public cultural facilities consisting of museums, art galleries, art centers, music halls, and related facilities, and, if necessary, to acquire sites for, construct, or otherwise acquire such facilities, all to the end of making cultural facilities available to the public, whether separately or grouped two or more in the same building. Whenever any such facilities shall have been so established they may be administered by and through such instrumentality or instrumentalities as may be designated for that purpose by the governing body of such county, city, or town.
*(Acts 1936, Ex. Sess., No. 151, p. 168; Code 1940, T. 37, §511; Acts 1963, No. 541, p. 1159; Acts 1983, 2nd Ex. Sess., No. 83-163, p. 333.)*
##### **§ 11-47-17** Provision of Public Scales, Inspection of Weights and Measures, Etc {#sec-11-47-17 omnilex-key=us-al-statutes--title-11--11-47-17}
The council or other governing body of any town or city may provide public scales and an inspection of weights and measures and may provide punishment for persons, firms and corporations using fraudulent weights and measures.
*(Acts 1939, No. 37, p. 38; Code 1940, T. 37, §470; Acts 1961, No. 820, p. 1206.)*
##### **§ 11-47-18** Provision for Lighting, Sprinkling, and Cleaning of Streets {#sec-11-47-18 omnilex-key=us-al-statutes--title-11--11-47-18}
The council or other governing body of any town or city may provide for lighting, sprinkling, and cleaning the streets by contract or otherwise.
*(Acts 1939, No. 37, p. 38; Code 1940, T. 37, §470; Acts 1961, No. 820, p. 1206.)*
##### **§ 11-47-19** Establishment, Etc., of Public Grounds, Parks, Etc., and Provision of Music and Other Exhibitions {#sec-11-47-19 omnilex-key=us-al-statutes--title-11--11-47-19}
The council or other governing body of any town or city may establish, lay out and improve public grounds, parks, and boulevards and regulate the same and may provide music and other exhibitions for the amusement of the inhabitants.
*(Acts 1939, No. 37, p. 38; Code 1940, T. 37, §470; Acts 1961, No. 820, p. 1206.)*
##### **§ 11-47-20** Disposition of Unneeded Real Estate - Generally {#sec-11-47-20 omnilex-key=us-al-statutes--title-11--11-47-20}
The governing body of any city or town in this state may, by ordinance to be entered on its minutes, direct the disposal of any real property not needed for public or municipal purposes and direct the mayor to make title thereto, and a conveyance made by the mayor in accordance with such ordinance invests the grantee with the title of the municipality.
*(Acts 1953, No. 843, p. 1135, §1.)*
##### **§ 11-47-21** Disposition of Unneeded Real Estate - Leasing Thereof {#sec-11-47-21 omnilex-key=us-al-statutes--title-11--11-47-21}
The governing body of any city or town in this state may, by ordinance to be entered on its minutes, lease any of its real property not needed for public or municipal purposes, and a lease made by the mayor in accordance with such ordinance shall be binding for the term specified in the lease, not to exceed a period of 99 years; provided, that in counties having a population of not less than 225,000 and not more than 400,000 inhabitants according to the most recent federal decennial census, such limitation of the term to a period of 99 years shall not apply to any oil, gas, or mineral lease made in accordance with such ordinance.
*(Acts 1953, No. 843, p. 1135, §2; Acts 1957, No. 412, p. 574.)*
##### **§ 11-47-22** Exercise of Police Jurisdiction Over Hospitals, Poorhouses, Cemeteries, Etc {#sec-11-47-22 omnilex-key=us-al-statutes--title-11--11-47-22}
All cities and towns of this state shall have the power to exercise police jurisdiction over all lands purchased or acquired by the city or town for the purpose of being used or occupied as a hospital, quarantine station, poorhouse, pesthouse, workhouse or house of correction, schoolhouse, sanitary or storm water sewers, rights-of-way, cemeteries and parks, and the laws and ordinances of the cities and towns shall apply to and extend over all the lands so used or occupied and the inhabitants thereof.
*(Code 1907, §1288; Code 1923, §2046; Code 1940, T. 37, §477.)*
##### **§ 11-47-23** Limitation Periods for Presentation of Claims Against Municipalities {#sec-11-47-23 omnilex-key=us-al-statutes--title-11--11-47-23}
All claims against the municipality (except bonds and interest coupons and claims for damages) shall be presented to the clerk for payment within two years from the accrual of said claim or shall be barred. Claims for damages growing out of torts shall be presented within six months from the accrual thereof or shall be barred.
*(Code 1907, §1191; Code 1923, §1907; Code 1940, T. 37, §476.)*
##### **§ 11-47-24** Government Agency Required to Provide Defense Counsel to Any Employee Sued for Damages Arising Out of Performance of Official Duties; Municipal Corporation Authorized to Obtain Liability Insurance {#sec-11-47-24 omnilex-key=us-al-statutes--title-11--11-47-24}
(a) Whenever any employee of a municipal corporation of the State of Alabama shall be sued for damages arising out of the performance of his official duties, and while operating a motor vehicle or equipment engaged in the course of his employment, such government agency shall be authorized and required to provide defense counsel for such employees in such suit and to indemnify him from any judgment rendered against him in such suit. In no event shall a municipal corporation of the state be required to provide defense and indemnity for employees who may be sued for damages arising out of actions which were either intentional or willful or wanton.
(b) All municipal corporations of the State of Alabama are hereby authorized to contract at governmental expense for policies of liability insurance to protect employees in the course of their employment.
*(Acts 1988, No. 88-657, p. 1055.)*
##### **§ 11-47-25** Acceptance of Credit Card Payments in Class 1 Municipalities {#sec-11-47-25 omnilex-key=us-al-statutes--title-11--11-47-25}
(a) This section shall apply only in a Class 1 municipality.
(b) Notwithstanding any other provision of law to the contrary, any office or unit of a Class 1 municipality government required or authorized to receive or collect any payments to the municipality or to state or local government may, upon approval of the mayor, accept a credit card payment of the amount.
(c) This section shall be broadly construed to authorize acceptance of credit card payments by:
(1) All departments, agencies, boards, bureaus, commissions, authorities, and other units of the municipality.
(2) All officers, officials, employees, and agents of the municipal units of the municipality.
(d) This section shall be broadly construed to authorize acceptance of credit card payments of all types of amounts payable to or collected by the municipality, including, but not limited to, taxes, license and registration fees, fines, and penalties.
(e) For purposes of this section, the term “credit card” shall include any credit cards, charge cards, and other debit cards issued by any bank, foreign lender, domestic lender, or credit card bank as defined in Section 5-20-3.
(f) The governing body of the municipality may establish procedures, rules, and regulations for the acceptance of credit card payments for the matters and amounts payable covered by this section.
(g) Whether to accept credit card payments for any type of payment including, but not limited to, payments for building permits, traffic citations, licenses, and taxes shall be made by the mayor after consultation with the office, board, or other body accepting payments. If credit card payments are to be accepted, the office, board, or other body shall do so in accordance with the procedures, rules, and regulations established by the governing body. The procedures, rules, and regulations may provide for appropriate agreements with credit card issuers or other appropriate parties as needed to facilitate the acceptance of credit card payments. Without limiting the generality of the foregoing, the agreements, if authorized by the municipal governing body, may provide for the acceptance of credit card payments at a discount from their face amount of the payment and may make any payment of discount or administrative fees by paying an invoice or by allowing withholding of discounts or administrative fees from the face amount of the credit card payments. The discount or administrative fees may be authorized when the officer, board, or other body determines that any reduction of revenue resulting from the discount or fees will be in the best interest of the municipality. Factors which may be considered in making that determination may include, but are not limited to, improved governmental finance, security, or a combination of one or more of the foregoing together with the benefit of increased public convenience. Any agreement shall provide that it may be canceled at any time by the affected officer or unit of government, but the agreement shall provide for a reasonable period of notice of cancellation.
(h) An office, board, or other body authorizing acceptance of credit card payments may impose a surcharge upon the person making a payment by credit card. When a party elects to make a payment by credit card and a surcharge is imposed, the payment of the surcharge shall be deemed voluntary by the party and shall not be refundable.
(i) No person making any payment by credit card shall be relieved from liability for the underlying obligation only to the extent the municipality realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the credit card issuer or other guarantor of payment in the credit card transaction, then the underlying obligation shall survive and the municipality shall retain all remedies for enforcement which would have applied if the credit card transaction had not occurred. No contract may modify the provisions of this subsection. This subsection shall not make the underlying obligor liable for any discount or administrative fees paid to a credit card issuer or other party by the municipality.
(j) A municipal government officer or employee of the municipality who accepts a credit card payment in accordance with this section and any applicable procedures, rules, or regulations of the governing body shall not thereby incur any personal liability for the final collection of the payments.
*(Act 2000-377, p. 593, §1.)*
##### **§ 11-47-26** Payment of Municipal Employees by Direct Deposit of Wages {#sec-11-47-26 omnilex-key=us-al-statutes--title-11--11-47-26}
(a) A municipality may adopt a policy to require new employees hired by the municipality after the adoption of the policy to participate in direct deposit of the employee’s wages.
(b) If a municipality elects to pay the wages of its employees by direct deposit, the municipality shall do all of the following:
(1) Provide a municipal employee with an electronic fund transfer authorization form.
(2) Deposit the wage of a municipal employee into a personal bank account at a financial institution selected by the employee on the electronic fund transfer authorization form.
(3) Each time the municipality pays the wage of a municipal employee by direct deposit, provide the employee with a direct deposit statement that includes:
a. The total amount of the wage.
b. Any amount deducted from the wage.
c. The amount of the wage directly deposited into the personal bank account selected by the employee.
(c) A municipality may not require an employee to participate in direct deposit of the employee’s wages if the employee would incur fees charged to the employee’s account as a result of the direct deposit and a comparable financial institution that would not charge a fee for a direct deposit is not available to the employee in the municipality.
(d) An employe may opt out of the direct deposit requirement by submitting a written request to his or her employer prior to the end of the first pay period, or once annually thereafter.
*(Act 2014-334, p. 1231, §1.)*
#### **Article 2** Cemeteries and Burial Grounds
#### **Division 1** General Provisions
##### **§ 11-47-40** Ownership, Regulation, Etc., of Municipal Cemeteries; Regulation, Etc., of Establishment or Use of Private Cemeteries Within Police Jurisdiction {#sec-11-47-40 omnilex-key=us-al-statutes--title-11--11-47-40}
All cities and towns of this state shall have the power to own, regulate, improve, lay out, and control town or city cemeteries and permit additions thereto and the establishment of new ones, either within or without the town or city limits, and to sell burial lots in the same, and to regulate or prohibit the establishment or use of private cemeteries within the police jurisdiction of a city or town elsewhere than in the city or town cemeteries.
*(Code 1907, §1284; Code 1923, §2041; Code 1940, T. 37, §478.)*
##### **§ 11-47-41** Contracts for Municipal Care and Maintenance of Burial Grounds, Cemeteries, and Graves - Authorized {#sec-11-47-41 omnilex-key=us-al-statutes--title-11--11-47-41}
Any incorporated city or town having within its corporate limits an ancient family cemetery or burial ground or owning a cemetery or burial ground may make and enter into a contract with any interested party or parties obligating and binding the city or town to forever protect, maintain, and properly care for such cemetery or burial ground or for graves of individuals in the cemeteries or burial grounds owned by such city or town, upon terms and conditions as may be agreed upon and for such compensation as it may see fit to accept.
*(Code 1907, §1309; Acts 1919, No. 165, p. 153; Code 1923, §2122; Code 1940, T. 37, §479.)*
##### **§ 11-47-42** Contracts for Municipal Care and Maintenance of Burial Grounds, Cemeteries, and Graves - Manner of Contracting {#sec-11-47-42 omnilex-key=us-al-statutes--title-11--11-47-42}
All contracts made under the provisions of Section 11-47-41 shall be by ordinance, which shall state all the terms and conditions of the contract, and the same shall be passed and approved as other ordinances of such city or town and recorded upon the minutes thereof.
*(Code 1907, §1310; Code 1923, §2123; Code 1940, T. 37, §480.)*
#### **Division 2** Abandonment of Cemeteries and Removal and Reinterment of Human Remains
##### **§ 11-47-60** Declaration for Abandonment of Cemetery and Removal of Human Remains Interred Therein - Adoption, Etc {#sec-11-47-60 omnilex-key=us-al-statutes--title-11--11-47-60}
(a) Any cemetery corporation or association, including religious bodies, owning or controlling any cemetery within this state may, with the consent and approval of the governing body of the city or town in which such cemetery is located or with the consent and approval of the governing body of the county if such cemetery is located outside the limits of an incorporated municipality, by resolution of its board of directors or other governing body, when assented to in writing filed with the secretary by at least three fourths of the lot owners and holders of such corporation or association or ratified and approved by like vote thereof at any regular meeting of the cemetery corporation or association or at a meeting specially called for that purpose, declare for the abandonment in whole or in part of such cemetery as a burial place for the human dead and for the removal of human remains interred therein to another cemetery or cemeteries in this state or for the depositing of such remains in a memorial mausoleum or columbarium as provided in this division.
(b) Any corporation sole or other person owning or controlling any cemetery or the lands on which any grave or cemetery is located in this state may also declare for the abandonment in whole or in part of any such cemetery owned or controlled by such corporation sole or other person and for the removal of human remains interred therein to another cemetery or cemeteries in this state or the depositing of such remains in a memorial mausoleum or columbarium as provided in this division.
*(Acts 1957, No. 389, p. 523, §1; Acts 1965, No. 155, p. 224, §2.)*
##### **§ 11-47-61** Declaration for Abandonment of Cemetery and Removal of Human Remains Interred Therein - Specification as to Removal of Remains After Two Months {#sec-11-47-61 omnilex-key=us-al-statutes--title-11--11-47-61}
Any resolution or declaration for abandonment and removal duly adopted and made under the provisions of Section 11-47-60 shall specify and declare that at any time after the expiration of two months from and after the first publication of the notice of declaration of abandonment and removal required to be published under the provisions of Section 11-47-62 the human remains then remaining in such cemetery or part thereof will be removed by such cemetery corporation, association, corporation, or other person owning or controlling such cemetery.
*(Acts 1957, No. 389, p. 523, §2.)*
##### **§ 11-47-62** Declaration for Abandonment of Cemetery and Removal of Human Remains Interred Therein - Publication, Posting, and Mailing of Notice {#sec-11-47-62 omnilex-key=us-al-statutes--title-11--11-47-62}
(a) Notice of the said declaration of abandonment and of the proposed removal of the human remains from any such cemetery or part thereof shall be given to all persons interested therein by publication in a newspaper of general circulation published in the city or town wherein said cemetery or part thereof is situated or in a newspaper of general circulation published in the county wherein the same is situated if located outside the limits of an incorporated municipality, which publication shall be made once a week for two successive months.
(b) Said notice shall be entitled “Notice of declaration of abandonment of lands for cemetery purposes and of intention to remove the human bodies interred therein,” and shall specify a date, not less than two months after the first publication of such notice, when the cemetery corporation, association, corporation sole or other person owning or controlling such cemetery lands and causing such notice to be published will proceed to remove the human remains then remaining in such cemetery or part thereof.
(c) Copies of said notice so published shall within 10 days after the first publication thereof be posted in at least three conspicuous places in the cemetery or part thereof from which said removals of the human remains interred therein are to be made, and a further copy of said notice shall be mailed to every person who owns or holds or had the right of burial in any lot or plat in said cemetery or part thereof affected by such resolution or declaration of abandonment and removal whose name appears as such owner or holder upon the records of such cemetery, which such notice so mailed shall be addressed to the last known post office address of said respective lot owner or lot holder as the same appears from the records of said cemetery and, if no such address appears or is known, then the same shall be addressed to such person at the city or town or post office address wherein said cemetery land is situated. Such notice shall be mailed to each known living heir at law of any person whose remains are resting in said cemetery when the address of such heir is known.
*(Acts 1957, No. 389, p. 523, §3; Acts 1965, No. 155, p. 224, §3.)*
##### **§ 11-47-63** Removal and Reinterment of Remains by Corporations, Etc., Generally; Notices {#sec-11-47-63 omnilex-key=us-al-statutes--title-11--11-47-63}
(a) After the completion of the publication, posting and mailing of the “Notice of declaration of abandonment of lands for cemetery purposes and of intention to remove the human bodies interred therein,” as provided for in Section 11-47-62, and after the expiration of the period of two months specified in said notice as provided in Section 11-47-61, any cemetery corporation, association, corporation sole or other person owning or controlling any such cemetery shall have power to cause the removal of all human remains interred in any such cemetery or part thereof to be abandoned as a cemetery or burial place for the dead and to cause the reinterment in other cemeteries in this state where burials are permitted or to deposit the said remains in a mausoleum or columbarium erected for that purpose without further notice to any person claiming any interest in said cemetery or part thereof or in the remains therein interred; provided, however, that at any time before the date fixed for the removal of such remains by the cemetery corporation, association, corporation sole or other person owning or controlling such cemetery lands, any relative or friend of any person whose remains are interred in such cemetery or part thereof from which it is proposed to make such removals may give such cemetery corporation, association, corporation sole or other person proposing to make such removals written notice that he or she desires to be present when such remains of a friend or relative so giving notice are disinterred or are reinterred or deposited in such mausoleum or columbarium. Such notice shall state the name of the person whose remains are referred to, and, as accurately as possible, shall describe the lot or plat where the remains are buried and the date of burial and shall specify an address at which the notice provided for in subsection (b) of this section may be given. Such notice may be delivered at the office or principal place of business of said cemetery corporation, association, corporation sole or other person owning or controlling such cemetery lands and proposing to make such removals or may be forwarded thereto by registered or certified mail.
(b) Upon receipt of any such notice before the date fixed for the removal of said remains by the cemetery corporation, association, corporation sole or other person proposing to make such removals, it shall be the duty of said cemetery corporation, association, corporation sole or other person to give written notice to the person giving the notice provided for in subsection (a) of this section of the time when such remains shall be disinterred and of the time when and the place where the same will be reinterred or deposited. Said notice may be given by delivery thereof at the address stated in the notice referred to in subsection (a) of this section or by mailing the same to the person giving such notice at such address, such delivery or mailing to be made at least 10 days prior to the date specified for the disinterment of such remains.
(c) Whenever such written notice provided for in subsection (a) of this section shall be given by a relative or friend of any person interred in such cemetery lands from which such removals are proposed to be made, said cemetery corporation, association, corporation sole or other person owning or controlling said cemetery lands and proposing to remove the bodies interred therein shall not disinter the remains referred to in said notice until the notice of the time of such disinterment is given such relative or friend as provided in subsection (b) of this section.
*(Acts 1957, No. 389, p. 523, §4.)*
##### **§ 11-47-64** Notice to Board of Health of Removal of Remains, Etc.; Removal of Remains, Etc., Subject to Rules and Regulations of Board of Health {#sec-11-47-64 omnilex-key=us-al-statutes--title-11--11-47-64}
(a) Any cemetery corporation, association, corporation sole or other person owning or controlling such cemetery shall, before disinterring, transporting or removing human remains under the provisions of this division, make a written report to the State Board of Health setting forth the name and date of death of each person whose remains are to be removed, if known, the location of the grave and the location of the grave to which such remains are to be removed.
(b) Such disinterment, transportation, or removal of human remains shall be performed subject to such reasonable rules and regulations relative to the manner of disinterring, transporting, or removing such remains as may be adopted by the State Board of Health.
*(Acts 1957, No. 389, p. 523, §14; Acts 1965, No. 155, p. 224, §4.)*
##### **§ 11-47-65** Voluntary Removal of Remains by Relative or Friend of Person Interred or by Owner of Plat or Lot; Affidavit of Person Removing Remains {#sec-11-47-65 omnilex-key=us-al-statutes--title-11--11-47-65}
At any time prior to the removal by said cemetery corporation, association, corporation sole or other person owning or controlling said cemetery lands of the remains of any person buried therein, any relative or friend of said person may voluntarily remove such remains and dispose of the same as he may desire; provided, that the person desiring to cause such removal shall, prior to such removal, deliver to said cemetery corporation, association, corporation sole or other person owning or controlling such cemetery an affidavit duly sworn to before an officer qualified to administer oaths stating the name of the person whose remains it is desired to remove and further stating, so far as is known to the affiant, the date of burial of such remains and the names and places of residence of the heirs at law of such deceased person. In the event that the person desiring to cause such removal is not an heir at law of the person whose remains he desires to remove, such removal shall not be made by him until he shall have delivered to said cemetery corporation, association, corporation sole or other person owning or controlling such cemetery the written consent of a majority of the known heirs at law of such deceased persons who are residents of the State of Alabama. The statements in the said affidavit shall be sufficient evidence of the numbers, names, and residences of such heirs at law for all of the purposes of this section, and the written consent of the majority of such heirs at law named in said affidavit shall be sufficient warrant and authority for the cemetery corporation, association, corporation sole or other person owning or controlling such cemetery to permit the removal of the remains by such person; provided further, that the purchaser or owner of any burial lot or plat in any such cemetery or part thereof or of the right of burial therein or any one of the joint purchasers or owners of such lot or plat or burial right therein may cause the removal of any or all of the remains interred in such lot or plat without the necessity of filing any affidavit of consent as hereinabove specified, and if the right, title or interest of any grantee of any burial lot or plat in such cemetery or the right of burial therein shall be passed by succession to the heir or heirs at law of such grantee without formal distribution by order of court, such heir or heirs at law may remove the remains of persons interred in any such lot or plat, and the affidavit of any such heir at law setting out the facts of such heirship shall be accepted by the cemetery corporation, association, corporation sole or other person owning or controlling such cemetery lands from which such removals are to be made as sufficient evidence for all the purposes of this section of the fact of the transfer of such title or right of burial to such heir or heirs at law as alleged in said affidavit.
*(Acts 1957, No. 389, p. 523, §5.)*
##### **§ 11-47-66** Purchase and Sale of Lands, Etc., for Reinterment of Remains from Abandoned Cemeteries; Reservation of Lands in Abandoned Cemeteries for Erection of Memorial Mausoleum, Etc {#sec-11-47-66 omnilex-key=us-al-statutes--title-11--11-47-66}
(a) Whenever any such cemetery corporation, association, corporation sole or other person owning or controlling any such cemetery lands from which the bodies interred therein are to be removed in accordance with the provisions of this division shall have purchased or otherwise acquired lands or a mausoleum or columbarium or the possession or use thereof for the purpose of providing a place for the reinterment or depositing of any human remains which may be removed from any such abandoned cemetery or part thereof, such new lands may be surveyed and subdivided into lots and plats and avenues and walks for cemetery purposes, and any such mausoleum or columbarium or any part thereof may be divided into niches, compartments, or receptacles for the receipt of such remains as may be therein deposited. Thereafter such lots or plats, niches, compartments, or receptacles may be sold to persons desiring to make reinterments or to deposit human remains therein and the board of directors or other governing body of any such cemetery corporation or association may receive and accept as part or full consideration for the purchase price of such new lots or plats, niches, compartments, or receptacles and under such terms and conditions as to the value or price thereof as the said directors or other governing body may deem equitable, full or partial releases from the members of such corporation of their respective right in or to the whole or any part of the assets of said corporation or association other than the lot or plat, niche, compartment, or receptacle conveyed to such purchasers respectively. Any retransfer to said cemetery corporation or association of any lot or plat in the cemetery from which the removal of the human remains are to be made shall operate as such a release.
(b) Sufficient lands may be reserved from any such cemetery lands abandoned as a burial place for the dead and from which the human remains have been removed to erect a memorial mausoleum or columbarium for the depositing of the bodies disinterred from such cemetery lands and to provide sufficient grounds around the same and to preserve such historical vaults or monuments as the board of directors or other governing body of any such cemetery corporation or association may determine to be proper or necessary.
*(Acts 1957, No. 389, p. 523, §10.)*
##### **§ 11-47-67** Reinterment of Remains Generally {#sec-11-47-67 omnilex-key=us-al-statutes--title-11--11-47-67}
Whenever under the provisions of this division the remains of any person shall have been removed from any cemetery or part thereof abandoned as such burial place under the provisions of the division by the cemetery corporation, association, corporation sole or other person having charge or control of such cemetery lands, such remains shall be transported to and reinterred in any other cemetery in this state where burials are permitted by such cemetery corporation, association, corporation sole or other person having charge or control of such cemetery lands or part thereof or deposited in a mausoleum or columbarium as provided in this section.
The remains of each person so reinterred shall be placed in a separate and suitable receptacle and decently and respectfully interred under such rules and regulations now in force or that may be adopted by such cemetery corporation, association, corporation sole or other person making such removal. If the remains of any such person so removed from said cemetery lands are deposited in a memorial mausoleum or columbarium built for that purpose, each body so removed shall be inclosed in a separate and suitable receptacle or container and shall be so deposited in a decent and respectful manner in accordance with such rules and regulations now existing or that may hereafter be adopted by such cemetery corporation, association, corporation sole or other person owning or controlling such cemetery lands.
*(Acts 1957, No. 389, p. 523, §6.)*
##### **§ 11-47-68** Erection of Markers Upon and Preparation, Filing, Etc., of Maps, Plans, Etc., of Lands, Etc., Where Remains Reinterred {#sec-11-47-68 omnilex-key=us-al-statutes--title-11--11-47-68}
After the removal and reinterment or deposit in a mausoleum or columbarium of the bodies disinterred from any such abandoned cemetery or part thereof the cemetery corporation, association, corporation sole or other person owning or controlling such abandoned cemetery lands and making such removals shall cause to be erected upon or imbedded in any lot or plat wherein any such body is reinterred a suitable permanent marker identifying such remains and shall prepare a complete map or plat describing and showing the location and subdivision into lots and plats of the cemetery lands where such bodies are reinterred or a plan of any mausoleum or columbarium wherein such bodies may be deposited, and there shall also be attached to any such map or plat or plans a description of the name of each person whose body is so reinterred or deposited, where known, and the lot or plat in the cemetery or the niche or compartment in any mausoleum or columbarium where such body is reinterred or deposited. Such map or plat shall be kept on file in the office of such cemetery corporation, association, corporation sole or other person making such removals and reinterments or depositing bodies in a mausoleum or columbarium and shall at all times be open to inspection by the relatives or friends of those so reinterred or deposited.
*(Acts 1957, No. 389, p. 523, §11.)*
##### **§ 11-47-69** Care, Etc., of Lands, Etc., in Which Remains Reinterred {#sec-11-47-69 omnilex-key=us-al-statutes--title-11--11-47-69}
Whenever any cemetery corporation or association having a board of directors or other governing body shall have caused the removal from any cemetery or part thereof owned by it or under its charge or control the human remains therein interred and said cemetery corporation or association shall have funds in its treasury which are not required for other purposes of said corporation, said corporation shall have power to set aside, invest, use, and apply from such unexpended funds such sum as, in the judgment of the directors of said corporation, shall be necessary or expedient to provide for the perpetual or other care or improvement of any lands or mausoleum or columbarium or part thereof in which said remains may be reinterred or deposited; provided, however, that in lieu of itself investing, using or applying said funds for the purposes in this section specified, said cemetery corporation may transfer said funds to any other corporation under such conditions and regulations as in the judgment of the directors of said cemetery corporation will insure the application thereof to the purposes in this section specified; provided further, that before any such transfer of such funds is made said cemetery corporation or association shall have obtained an order authorizing such transfer from the probate court of the county where the cemetery or part thereof abandoned under the provisions of this division is situated. Such order shall be obtained upon petition of said cemetery corporation and any member of said corporation may support or oppose the granting of the order by affidavit or otherwise. Before making the order, proof must be made to the satisfaction of the court that notice of the application for leave to transfer such funds has been given by publication in such manner and for such time as the court has directed and that it is for the best interests of the said cemetery corporation that such transfer be made.
*(Acts 1957, No. 389, p. 523, §13.)*
##### **§ 11-47-70** Removal, Etc., of Monuments, Headstones, Etc., from Graves from Which Remains Removed {#sec-11-47-70 omnilex-key=us-al-statutes--title-11--11-47-70}
(a) Whenever the remains of any person shall have been removed from any cemetery by any relative or friend of such person under the provisions of Section 11-47-65, the person causing such removal shall also be entitled to remove any vault, monument, headstone, coping, or other improvement appurtenant to the grave from which such remains have been removed, and the affidavit or written consent given under the provisions of Section 11-47-65 shall be sufficient warrant and authority for the cemetery corporation, association, corporation sole or other person owning or controlling such cemetery to permit such removal of any vault, monument, headstone, coping, or other improvement appurtenant to such grave.
(b) Whenever the remains of any person buried in any lot or plat shall have been removed and any vault, monument, headstone, coping, or other improvement appurtenant thereto shall remain on said lot or plat for more than 90 days after the removal of the last human remains therefrom, such vault, monument, headstone, coping, or other improvement may be removed and disposed of by the cemetery corporation, association, corporation sole, or other person owning or controlling such cemetery lands and thereafter no person claiming any interest in said lot or plat or any such vault, monument, headstone, coping, or other improvement appurtenant thereto shall have the right to maintain in any court any action in relation to any such vault, monument, headstone, coping or other improvement so removed or disposed of.
*(Acts 1957, No. 389, p. 523, §7.)*
##### **§ 11-47-71** Sale, Etc., of Lands in Abandoned Cemeteries by Corporations, Etc.; Confirmation of Sales by Probate Court {#sec-11-47-71 omnilex-key=us-al-statutes--title-11--11-47-71}
(a) Whenever such a cemetery or part thereof has been abandoned as a cemetery or place of burial for the human dead as provided for in Section 11-47-60 by the cemetery corporation, association, corporation sole, or other person owning or controlling the same, the parts or portions thereof in which no interments had been made and such parts and portions thereof from which all human remains have been removed may be sold by the cemetery corporation, association, corporation sole, or other person owning or controlling such cemetery land or may be mortgaged or otherwise pledged as security for any loan or loans made to such cemetery corporation, association, corporation sole, or other person owning or controlling such cemetery lands. No order of any court shall be required prior to the making of any such sale, mortgage, pledge, or other encumbrance of such lands abandoned for cemetery purposes or from which the human remains have been removed; provided, however, that any sale of such cemetery lands made by any cemetery corporation or association controlled by a board of directors or other governing body shall be fairly conducted and the price paid therefor must be fair and reasonable and all such sales must be confirmed, as to the fairness and reasonableness of the price paid by the probate court of the county in which such lands are situated.
(b) Petitions for confirmation of such sales by cemetery corporations and associations governed by a board of directors or other governing body shall be made to the probate court of the county wherein such lands are situated, and the judge of said court shall fix a day for the hearing and give notice thereof by publication in accordance with the provisions of Section 43-2-445, relating to confirmation of sales of real estate by an executor or administrator.
*(Acts 1957, No. 389, p. 523, §8.)*
##### **§ 11-47-72** Filing, Etc., of Declaration as to Removal of All Remains from Abandoned Cemetery {#sec-11-47-72 omnilex-key=us-al-statutes--title-11--11-47-72}
After the removal of all human remains interred in any part or the whole of the cemetery lands abandoned as a burial place for the human dead as provided in this division, the cemetery corporation, association, corporation sole, or other person owning or controlling such cemetery lands may file for record in the office of the judge of probate of the county in which such lands are situated a written declaration reciting that all human remains have been removed from the part or portion of such lands described in such declaration. Such declaration shall be acknowledged in the manner of the acknowledgment of deeds to real property by the president and secretary or other corresponding officers of such cemetery corporation or association or by the incumbent of any such corporation sole or by the persons owning or controlling such cemetery lands, and thereafter any deed, mortgage, or other conveyance of any part of said lands shall be conclusive evidence in favor of any grantee or mortgagee therein named his successor or assigns of the fact of the complete removal of all human bodies therefrom.
*(Acts 1957, No. 389, p. 523, §12.)*
##### **§ 11-47-73** Payment of Expenses of Abandonment and Removal by Corporations, Etc.; Disposition of Funds of Corporation, Etc., Remaining Thereafter {#sec-11-47-73 omnilex-key=us-al-statutes--title-11--11-47-73}
(a) Whenever any cemetery corporation or association shall have resolved upon the abandonment of any cemetery or part thereof and the removal of the human remains therefrom under the provisions of this division, such cemetery corporation or association shall have power to employ any moneys in its treasury to defray the expense of such abandonment and removal, including the expense of purchasing or otherwise providing a suitable place for the interment or depositing of such remains in any other cemetery, mausoleum, or columbarium in this state, including the expenses of disinterment, transportation, and reinterment or the depositing of such remains in such mausoleum or columbarium, the expenses of the removal and disposal of such vaults, monuments, headstones, coping, or other improvements which may remain after the human bodies are removed from any such cemetery or part thereof, all necessary expenses incident to the sale or mortgaging of any of said lands, all other expenses necessarily incurred in carrying out such abandonment of such cemetery lands and the removal and reinterment or disposing of the bodies so removed and all other expenses incident to any of the above purposes.
(b) Any moneys remaining in the treasury of such cemetery association or corporation after making the removal and reinterment of the bodies from such cemetery lands shall be retained and used as a fund for the perpetual maintenance and care of the cemetery lands wherein such bodies so removed have been interred or for the maintenance and care of any memorial mausoleum or columbarium in which said human remains have been deposited or such fund may be used for such other purposes as such cemetery corporation or association may lawfully declare.
*(Acts 1957, No. 389, p. 523, §9.)*
##### **§ 11-47-74** Removal of Remains, Etc., from Cemeteries Owned by Churches, Etc {#sec-11-47-74 omnilex-key=us-al-statutes--title-11--11-47-74}
Nothing contained in this division shall authorize or permit or be construed or deemed to authorize or permit the heirs, relatives, or friends of any deceased person whose body has been interred in any cemetery owned, governed, or controlled by any religious corporation or by any church or religious society or any denomination or by any corporation sole administering temporalities of any religious denomination, society, or church or owned, governed or controlled by any person or persons as trustee or trustees for any religious denomination, society or church to disinter, remove, reinter, or dispose of any such body except in accordance with the rules, regulations, and discipline of such religious denomination, society, or church.
*(Acts 1957, No. 389, p. 523, §15.)*
#### **Article 3** Census
##### **§ 11-47-90** Authorization for Conduct by Municipality; Appointment, Oath, and Duties of Enumerators {#sec-11-47-90 omnilex-key=us-al-statutes--title-11--11-47-90}
Municipal corporations may by ordinance require a census to be taken of the inhabitants residing within the corporate limits of such municipality. Such census shall be taken by enumerators, who shall be responsible citizens appointed by the mayor and confirmed by the council. Such enumerator or enumerators shall take such census block by block and shall state, as far as practical, the name, age, sex, and race of each person residing within such municipality. They shall, before entering upon their duties, take and subscribe the following oath: “I solemnly swear that I will honestly and conscientiously enumerate the inhabitants living within the town or city, or portion thereof allotted to me for enumeration.”
*(Code 1907, §1060; Code 1923, §1751; Code 1940, T. 37, §481.)*
##### **§ 11-47-91** Arrangement and Return of Enumeration; Certification of Same to Secretary of State; Effect as to Conduct of School Census {#sec-11-47-91 omnilex-key=us-al-statutes--title-11--11-47-91}
Such enumeration shall be alphabetically arranged and returned to the mayor, together with the original books of enumeration. The mayor shall thereupon certify to the Secretary of State the result of such census, giving the total number of each race residing within the corporate limits of the municipality, and the result so certified by the mayor under the seal of the municipality, attested by the clerk, shall be the official census of such city or town until the next federal census or until a new enumeration shall have been taken.
When a municipal census shall have been taken in an odd year, it shall not be necessary to take a separate school census in such municipality during such year, but such school census shall be taken from the result of the enumeration made by the municipality and certified as required by law to the State Superintendent of Education.
*(Code 1907, §1061; Code 1923, §1752; Code 1940, T. 37, §482.)*
##### **§ 11-47-92** Authorization for Conduct by Federal Bureau of Census; Limitation {#sec-11-47-92 omnilex-key=us-al-statutes--title-11--11-47-92}
Any city or town may by ordinance provide for a census of all persons residing within the corporate limits of such city or town to be taken by the bureau of the census of the United States Department of Commerce, but no such census may be conducted more often than every five years.
*(Acts 1953, No. 845, p. 1136, §1.)*
##### **§ 11-47-93** Use of Federally Conducted Census {#sec-11-47-93 omnilex-key=us-al-statutes--title-11--11-47-93}
Any census taken under the provisions of Section 11-47-92 shall be used only as the basis for any law which provides for the levy or collection of license taxes where such levy or collection of license taxes is based on population and as the basis for any law which provides for the distribution of state-collected or county-collected licenses, excises, revenues, or funds where such distribution is administered or distributed on a population basis. Such census shall be used in administering any such laws as soon as such census is certified by the bureau of the census, of the United States Department of Commerce and proclaimed by the governing body of the city or town providing for the taking of the census; provided, that where a municipality is annexed or otherwise merged with another municipality it shall not be necessary to take a census as provided in this section but the population of the municipality to which such other municipality is annexed or merged shall be the combined total of the population of each such municipality according to the last federal census and such total population shall be the official census of such municipality.
*(Acts 1953, No. 845, p. 1136, §2.)*
##### **§ 11-47-94** Effect of Taking and Filing Report of Census {#sec-11-47-94 omnilex-key=us-al-statutes--title-11--11-47-94}
Where the census of any city or town in this state has been or may hereafter be taken as provided by this article and the report of the census thus taken has been or may hereafter be filed with the Secretary of State, the census, purporting to be a true and correct enumeration of the inhabitants residing in said cities and towns, is and shall be ratified, confirmed, and validated and the report of said census which has been or may hereafter be filed shall for all purposes govern and be taken as the true and correct census for all such cities and towns in the state when so taken. The form of government of such cities and towns shall be governed and controlled by such census when the same is so taken and a report thereof is filed in accordance with the provisions of this section.
*(Acts 1919, No. 357, p. 465; Code 1923, §1762; Code 1940, T. 37, §483; Acts 1953, No. 855, p. 1146.)*
##### **§ 11-47-95** Limitation Upon Taking of Census {#sec-11-47-95 omnilex-key=us-al-statutes--title-11--11-47-95}
A census may be taken by the cities and towns as provided by this article and a report of the same be filed in accordance with the provisions of Section 11-47-94 as often as the city or town council of any such city or town may deem advisable, but in no event shall such census be taken more than once in each five years.
*(Acts 1919, No. 357, p. 465; Code 1923, §1763; Code 1940, T. 37, §484.)*
#### **Article 4** General Police Powers
##### **§ 11-47-110** Animals Running at Large on Streets; Driving Livestock through Streets {#sec-11-47-110 omnilex-key=us-al-statutes--title-11--11-47-110}
All cities and towns of this state shall have the power to regulate and prevent the running at large on the streets of all equine or equidae, cows, hogs, dogs, or other animals and to pass all laws necessary for the impounding and sale of the animals and destruction of dogs and to regulate and prohibit the driving of livestock in droves through the streets of a city or town.
*(Code 1907, §1285; Code 1923, §2042; Code 1940, T. 37, §485; Act 2004-627, §1.)*
##### **§ 11-47-110.1** Certified Animal Control Officer in Class 5 and Class 8 Municipalities {#sec-11-47-110.1 omnilex-key=us-al-statutes--title-11--11-47-110.1}
(a) As used in this section, a local animal control law means a municipal ordinance or local law governing the treatment, care, well-being, or safety of animals.
(b) A Class 5 and Class 8 municipality, by ordinance, may:
(1) Establish civil penalties for violations of local animal control laws in an amount not to exceed one thousand dollars ($1,000) for any violation.
(2) Establish the position of certified animal control officer as well as the authorities and responsibilities of a certified animal control officer, which may include the authority to issue citations, as further provided in this section.
(c) The chief of police of a Class 5 and Class 8 municipality or his or her designee shall be responsible for certifying and revoking the certification of animal control officers, which shall include establishing minimum standards for training and experience that an individual must meet to qualify for certification.
(d) A certified animal control officer authorized by municipal ordinance to issue citations for violations of local animal control laws may do so by either certified mail or personal service.
(e) The municipal court of the respective Class 5 and Class 8 municipality shall have the authority to hear any appeal and impose and enforce civil penalties issued pursuant to this section.
*(Act 2017-320, §1.)*
##### **§ 11-47-111** Prohibition of Gaming and Gambling Houses, Etc {#sec-11-47-111 omnilex-key=us-al-statutes--title-11--11-47-111}
All cities and towns of this state shall have the power to restrain and prohibit gaming and the keeping of gambling houses or tables and may by ordinance authorize the police to enter such house or part thereof, seize all gambling implements, and arrest all persons therein whenever any reputable person shall make affidavit that he has good cause to believe and does believe that any house is being kept for the purpose of carrying on gambling therein.
*(Code 1907, §1291; Code 1923, §2049; Code 1940, T. 37, §486.)*
##### **§ 11-47-112** Promotion of Temperance; Suppression of Intemperance and Traffic in Certain Beverages, Etc {#sec-11-47-112 omnilex-key=us-al-statutes--title-11--11-47-112}
All cities and towns of this state shall have the power to adopt ordinances not inconsistent with the laws of the state to promote temperance and to suppress intemperance and to suppress the traffic in such beverages as the laws of the state prohibit to be manufactured, sold, or otherwise disposed of, and to prevent evasion of such ordinances. Such cities and towns shall also have the power to provide for the destruction of liquors and beverages kept for sale in violation of law or for other illegal purposes and that may be declared to be contraband.
*(Acts 1909, No. 161, p. 174; Code 1923, §2054; Code 1940, T. 37, §487.)*
##### **§ 11-47-113** Prohibition of Houses of Prostitution {#sec-11-47-113 omnilex-key=us-al-statutes--title-11--11-47-113}
The council or other governing body of any town or city of this state may prohibit houses of prostitution and punish the inmates thereof.
*(Code 1907, §1294; Code 1923, §2052; Code 1940, T. 37, §488.)*
##### **§ 11-47-114** Regulation of Running, Etc., of Trains or Automobiles Within Corporate Limits {#sec-11-47-114 omnilex-key=us-al-statutes--title-11--11-47-114}
All towns or cities shall have the power to regulate the running of railroad trains or engines or automobiles within the corporate boundaries, and to prohibit the standing thereof on or across the streets or highways within the corporate boundaries.
*(Code 1876, §1801; Code 1886, §1519; Code 1896, §2970; Code 1907, §1452; Code 1923, §2308; Code 1940, T. 37, §489.)*
##### **§ 11-47-115** Regulation of Operation of Street Railroad Company Over Tracks of Another {#sec-11-47-115 omnilex-key=us-al-statutes--title-11--11-47-115}
Any street railroad company operating its railroad by steam, electric, or other power shall have the right and may be required by the council or other governing body of any town or city of this state to operate its cars over the tracks of any other street railroad company in whole or in part in said city or town under such rules and regulations as may be prescribed by ordinance, upon the payment by the company so using the tracks of another of just compensation for the use thereof, and the council or other governing body of said city or town shall pass such ordinances as may be necessary to carry this provision into effect.
*(Code 1907, §1267; Code 1923, §2015; Code 1940, T. 37, §490.)*
##### **§ 11-47-116** Taking Up and Storing of Abandoned and Stolen Personal Property; Redemption by Owner; Sale and Disposition of Proceeds {#sec-11-47-116 omnilex-key=us-al-statutes--title-11--11-47-116}
(a) All municipalities are hereby authorized to provide by ordinance for the taking up and storing of abandoned and stolen personal property found within the corporate limits or outside the corporate limits but within the police jurisdictions and to sell the same in the manner provided in subsection (b) of this section. A permanent record giving the date of the taking of each piece of such property, the place where found and taken and a description of the property shall be kept. The property so taken shall be stored in a suitable place to protect it from deterioration; provided, that if the property be perishable the same may be sold at once without notice, in which case the proceeds shall be held for a period of six months for the account of the owner and if not called for within that time shall be converted into the general fund.
(b) At least every six months the chief officer of the law enforcement department of each such city and town adopting an ordinance under subsection (a) of this section shall sell at public auction to the highest bidder for cash the property which shall have then been taken up and stored for a period of three months or more, the sales to be made after notice of the time and place thereof shall have first been given by publication of notice once a week for two successive weeks in a newspaper of general circulation published in the city or town in question and, in cities and towns in which no newspaper is published, by posting such notice in a conspicuous place at the city hall or police station. The first publication or posting of notice, as the case may be, shall be at least 20 days before the sale. The owner of any of the property taken up and stored may redeem the same at any time prior to its sale by paying the reasonable expense of taking the property in charge, its maintenance and storage and a pro rata of the cost of publication. Each article shall be sold separately and a notation in the storage record book shall be made of the amount received for each article. The person making the sale shall have the right to reject any and all bids if the amount bid be unreasonably low and shall have the right to continue the sales from time to time if no bidders are present. After deducting and paying all expenses incurred in the taking up, storing, maintaining and selling of the property, the balance, if any, shall be paid into the general fund of the municipality making the sale.
*(Acts 1943, No. 533, p. 507.)*
##### **§ 11-47-117** Abatement of Nuisances, Etc., Generally; Assessment of Costs of Abatement {#sec-11-47-117 omnilex-key=us-al-statutes--title-11--11-47-117}
All cities and towns of this state shall have the power to prevent injury or annoyances from anything dangerous or offensive or unwholesome and to cause all nuisances to be abated and assess the cost of abating the same against the person creating or maintaining the same.
*(Code 1907, §1278; Code 1923, §2034; Code 1940, T. 37, §505.)*
##### **§ 11-47-118** Maintenance of Civil Actions to Enjoin and Abate Public Nuisances {#sec-11-47-118 omnilex-key=us-al-statutes--title-11--11-47-118}
Municipalities may maintain a civil action to enjoin and abate any public nuisance, injurious to the health, morals, comfort, or welfare of the community or any portion thereof.
*(Acts 1919, No. 49, p. 50; Code 1923, §2055; Code 1940, T. 37, §506.)*
#### **Article 5** Powers as to Health, Sanitation and Quarantine
##### **§ 11-47-130** Maintenance of Health and Cleanliness Generally {#sec-11-47-130 omnilex-key=us-al-statutes--title-11--11-47-130}
All cities and towns in this state shall have the power to maintain the health and cleanliness of the city or town within its limits and within the police jurisdiction thereof.
*(Code 1907, §1290; Code 1923, §2048; Code 1940, T. 37, §491.)*
##### **§ 11-47-131** Powers as to Health, Sanitation and Quarantine Generally {#sec-11-47-131 omnilex-key=us-al-statutes--title-11--11-47-131}
In addition to the powers granted to them by the applicable provisions of this title or any other provisions of law, all cities and towns of this state shall have the following powers, and the councils or other governing bodies of such cities and towns may provide by ordinance or resolution for the exercise or enforcement of the same:
(1) To prevent the introduction of contagious, infectious, or pestilential diseases into such cities or towns;
(2) To establish and regulate a sufficient quarantine, not inconsistent with laws of the state, in the towns and cities and within the police jurisdiction thereof and to punish any breach of quarantine law;
(3) To adopt such ordinances and regulations as the council or other governing body may deem necessary to insure good sanitary condition in public places or in private premises in the cities and towns; and
(4) To prescribe the duties and fix the salaries and compensation for such health officials as they may deem necessary.
*(Code 1907, §1276; Code 1923, §2032; Code 1940, T. 37, §492.)*
##### **§ 11-47-132** Provision for System of Compulsory Vaccination, Etc {#sec-11-47-132 omnilex-key=us-al-statutes--title-11--11-47-132}
All cities and towns of this state shall have the power to adopt all necessary ordinances and enforce the same to prevent the introduction or spread of contagious, infectious, or pestilential diseases in such cities or towns and, to that end, may provide for a system of compulsory vaccination and enforcement of the same.
*(Code 1907, §1289; Code 1923, §2047; Code 1940, T. 37, §493.)*
##### **§ 11-47-133** Appropriation of Funds for Care of Certain Sick and Wounded Persons in Municipal Hospitals {#sec-11-47-133 omnilex-key=us-al-statutes--title-11--11-47-133}
The board of mayor and aldermen or other governing body of cities or towns in this state may make appropriations out of the revenues of their respective cities or towns to aid in maintaining and taking care of sick or wounded persons who are unable to provide such maintenance and care for themselves in any hospital maintained in their respective cities or towns exclusively for the care of the sick or wounded within the limits of such cities or towns.
*(Code 1907, §1460; Code 1923, §2316; Code 1940, T. 37, §494.)*
##### **§ 11-47-134** Establishment, Aid, Etc., of Hospitals, Poorhouses, Etc., in Counties; Removal and Detention of Persons with Contagious, Etc., Diseases {#sec-11-47-134 omnilex-key=us-al-statutes--title-11--11-47-134}
All cities and towns of this state shall have the power to aid, establish, set up, and regulate hospitals, poorhouses, workhouses, houses of correction, and pesthouses anywhere in the county in which the city or town is situated and cause persons afflicted with contagious, infectious, or pestilential diseases to be removed to such hospitals or pesthouses as may be provided for the purpose and to cause persons who have been exposed to such diseases, or any of them, to be removed to some suitable place of detention and detained for a reasonable length of time.
*(Code 1907, §1277; Code 1923, §2033; Code 1940, T. 37, §495.)*
##### **§ 11-47-135** Establishment of Incinerators, Etc., for Disposal of Garbage, Etc.; Hauling and Disposal of Garbage and Trash; Fees {#sec-11-47-135 omnilex-key=us-al-statutes--title-11--11-47-135}
All cities and towns of this state shall have the power to establish and maintain incinerators for the destruction of garbage and like substances or to otherwise dispose of garbage, either within or without the city limits, and to haul or cause to be hauled to such incinerators or other places of disposal trash and garbage of all kinds and cause the destruction of the same in such manner as may be deemed expedient by the proper municipal authorities and to fix and collect such reasonable fees as may be necessary to carry out the provisions of this section.
*(Code 1907, §1282; Code 1923, §2039; Code 1940, T. 37, §496; Acts 1947, No. 61, p. 26.)*
##### **§ 11-47-136** Prohibition of Sale, Etc., of Impure, Adulterated, Etc., Food, Drink, Etc.; Provision for Inspections; Fees {#sec-11-47-136 omnilex-key=us-al-statutes--title-11--11-47-136}
All cities and towns of this state shall have the power to prohibit and prevent the gift, barter, sale, or display of impure or adulterated foods and drinks and of diseased or unsound meats or decayed fruits and vegetables or impure, adulterated, unsound, or unwholesome articles of food or drink of any kind and to provide all such inspection laws as may be deemed advisable or necessary and to prescribe and require the payment of all such reasonable fees as may be necessary to defray the expenses of carrying out the powers granted in this section.
*(Code 1907, §1295; Code 1923, §2053; Code 1940, T. 37, §497.)*
##### **§ 11-47-137** Regulation, Etc., of Markets and Marketing of Food Products, Etc {#sec-11-47-137 omnilex-key=us-al-statutes--title-11--11-47-137}
All cities and towns of this state shall have the power to establish, regulate and control markets and market houses and to require and provide for the proper inspection of food products and articles offered for sale or barter within the police jurisdiction of the city or town and for the punishment of persons or corporations offering for sale unsound or unwholesome articles in markets or other places in the city or town or within the police jurisdiction thereof.
Such cities and towns shall have the power to inspect all dairies and the products of the same in the county in which the city or town or any part thereof is located and the owner of which sells or disposes of milk or butter in such city or town and to regulate the same, and the council or other governing body of such city or town may fix and prescribe the payment of a reasonable fee for such inspection. Such council or other governing body shall have the power to regulate the sale of meats, vegetables, fruits, and other articles and to prescribe the localities in which the same may be sold, but any person may keep and sell fresh meats in such localities in any grocery store, green grocery store, or other store of similar nature, subject to the ordinances of the city or town regulating the slaughtering, inspecting, and keeping and selling of such meats, and this right shall not be restrained or denied by the imposition of unnecessary, unreasonable, or discriminatory regulations or excessive licenses. In the territory outside of the corporate limits and inside of the police jurisdiction of a municipality, any person shall have the right to sell fresh meats subject to the inspection of such meats on the premises where sold and subject to the same sanitary and slaughtering regulations governing meats sold inside of the corporate limits and subject to a license to be fixed by the city or town.
*(Code 1907, §1279; Acts 1915, No. 555, p. 619; Code 1923, §2035; Code 1940, T. 37, §498.)*
##### **§ 11-47-138** Establishment, Regulation, Etc., of Slaughterhouses and Pens; Regulation of Sale, Etc., of Fresh Meats, Etc.; Fees and Charges {#sec-11-47-138 omnilex-key=us-al-statutes--title-11--11-47-138}
All cities and towns of this state shall have the power to establish, control, and regulate slaughterhouses and pens and to confine the same to a specified limit in or outside of the city or town or prohibit the same within the police jurisdiction of the city or town, and to regulate the sale of fresh meats within the city or town, whether butchered therein or not, and to establish a system of inspecting such slaughterhouses and such meats, either before or after the same are butchered, and to prohibit the sale of such meats after the same are condemned, and provide for the disposition thereof. Such cities and towns shall also have the power to provide for the weighing and herding outside of the city or town of all livestock intended for slaughter and to fix, regulate, and collect reasonable fees and charges to pay the expenses of carrying out the powers granted in this section.
*(Code 1907, §1281; Code 1923, §2038; Code 1940, T. 37, §499.)*
##### **§ 11-47-139** Inspection of Dairies, Meats, Etc., for Other Municipalities {#sec-11-47-139 omnilex-key=us-al-statutes--title-11--11-47-139}
All municipalities of this state may inspect dairies, milk, meats and other food products for other municipalities and may make contracts and agreements with such other municipalities with reference to payment or compensation for such services, and the governing bodies of such municipalities may apportion the costs of such inspections or agree upon such terms as they deem proper.
*(Acts 1919, No. 43, p. 41; Code 1923, §2036; Code 1940, T. 37, §500.)*
##### **§ 11-47-140** Construction, Regulation, Etc., of Public Wells, Cisterns, Etc.; Requirement of Cutting of Weeds, Proper Setting of Gutters, Etc {#sec-11-47-140 omnilex-key=us-al-statutes--title-11--11-47-140}
All cities and towns of this state shall have the power to construct, repair, and regulate public wells and cisterns and to compel the screening of all wells, cisterns, and other places in the city or town in which water is collected where mosquitoes or other insects of like kind are apt to propagate. Such cities and towns shall also have the power to compel the proper setting of gutters so as to prevent stagnant water therein and to require weeds to be cut or other things or conditions favorable to the harboring of such insects to be abated or to do such work at the expense of the owner, the same to be a lien on the property to be collected as any other debts are collected or liens enforced.
*(Code 1907, §1280; Code 1923, §2037; Code 1940, T. 37, §501.)*
#### **Article 7** Acquisition of Lands, Easements, Rights-of-Way, Etc
##### **§ 11-47-170** Acquisition of Lands, Easements, Etc., by Municipality; Limitations on Condemnation {#sec-11-47-170 omnilex-key=us-al-statutes--title-11--11-47-170}
(a) Except as otherwise provided in subsection (b), whenever in the judgment of the council, commission, or other governing body of a city or town it may be necessary or expedient for the carrying out and full exercise of any power granted by the applicable provisions of this title or any other applicable provision of law, the town or city shall have full power and authority to acquire by purchase the necessary lands or rights, easements, or interests therein, thereunder, or thereover or, for the purposes for which private property may be acquired by condemnation, may proceed to condemn the same in the manner provided by this article, or by the general laws of this state governing the taking of lands or the acquiring of interests therein for the uses for which private property may be taken, and such proceedings shall be governed in every respect by the general laws of this state pertaining thereto or by the provisions on the subject contained in this article when the same are followed.
(b) Notwithstanding any other provision of law, a municipality or county may not condemn property for the purposes of private retail, office, commercial, industrial, or residential development; primarily for enhancement of tax revenue; for transfer to a person, nongovernmental entity, public-private partnership, corporation, or other business entity; or for the primary purpose of acquiring a mortgage or deed of trust. Provided, however, the provisions of this subsection shall not apply to the use of eminent domain by any municipality, housing authority, or other public entity based upon a finding of blight in an area covered by any redevelopment plan or urban renewal plan pursuant to Chapters 2 and 3 of Title 24, provided the primary purpose of the use of eminent domain pursuant to Chapters 2 and 3 of Title 24 is not primarily to acquire a mortgage or deed of trust, but just compensation, in all cases, shall continue to be first made to the owner. Nothing in this article shall limit the exercise of eminent domain by or for the benefit of public utilities or other entities engaged in the generation, transmission, or distribution of telephone, gas, electricity, water, sewer, or other utility products or services. Nothing in this article shall be interpreted to prohibit a municipal or county governing body from exercising the power of eminent domain to condemn real property, irrespective of whether the property may be subject to a mortgage or deed of trust, for the purpose of constructing, maintaining, or operating streets and roadways, government buildings, or park and recreation facilities.
(c) Property condemned pursuant to the authorizations as described in subsections (a) and (b), if not ever used for the purpose or purposes for which it was condemned or for some other public use, that is subsequently determined to be sold, shall be first offered for sale to the person or persons from whom the property was condemned, or his or her known or ascertainable heirs or assigns, at the price which was paid for the property, less such amount, if any, as the person or persons from whom the property was condemned shall show by good and sufficient documentation to be the amount of income and transaction taxes, if any, actually paid in connection therewith, and if the offer shall not be accepted within 90 days from the date it is made, the property may be sold to any other person, but only at public sale after legal notice is given.
*(Code 1907, §1439; Code 1923, §2295; Code 1940, T. 37, §507; Act 2005-313, 1st Sp. Sess., p. 643, §2; Act 2015-39, §1.)*
##### **§ 11-47-171** Authorization of Acquisition by Municipal Governing Body {#sec-11-47-171 omnilex-key=us-al-statutes--title-11--11-47-171}
Whenever in the opinion of the council or other governing body of a city or town, a right-of-way through the lands of others (whether in or out of the city or town) is necessary for obtaining a water supply or for sewerage or drainage purposes and whenever the council or other governing body may determine to change the grade of any street, sidewalk, or public place and whenever any property is needed for any city or town purpose, the council or other governing body shall authorize the mayor or other chief executive officer to attempt to acquire such right by purchase from the owner or owners thereof and, in case of failure, to acquire the same by condemnation.
*(Code 1907, §1440; Code 1923, §2296; Code 1940, T. 37, §508.)*
##### **§ 11-47-172** Procedure for Condemnation and Appeal; Asssessment of Value, Etc {#sec-11-47-172 omnilex-key=us-al-statutes--title-11--11-47-172}
(a) Whenever the proprietor or proprietors or any of them of any of the lands necessary for any of the purposes provided in Section 11-47-171 or necessary for opening new streets or widening old streets and the mayor or other chief executive officer cannot agree on a price of said lands or cannot agree as to the amount to be paid for changing the grade of any street, sidewalk, or public place and whenever the proprietor or proprietors thereof shall be an infant, non compos mentis, a nonresident, or unknown, then the mayor or other chief executive officer shall apply to the clerk of the circuit court of the county for a writ of ad quod damnum to be directed to the sheriff of the county, commanding him to summon three freeholders of the county to appear before the sheriff on a day named, not less than two days from the date of the writ, and to proceed under his direction to assess a value of the lands of such proprietor for the use thereof or damages or injury which may be done to any property by the change in the grade of any street, sidewalk, or public place named in the application for the writ and in the writ, which shall describe the lands required for the use of the city or town, the use for which said lands are desired, the grade intended (in case of change desired in grade of any street, sidewalk, or public place) and the name of the owners, respectively, if known, and the said persons thus selected shall be sworn by the sheriff to faithfully perform their duty under such writ and, after viewing the premises, enter a verdict, which verdict shall be endorsed on the writ by them and shall assess the damages to each proprietor severally.
(b) The sheriff shall thereupon return the writ so endorsed to the clerk of the circuit court, and the verdict so entered shall be entered on the records of the court of the next session thereof after its return, unless an appeal shall have been taken, in the manner prescribed in this section. The same jury may render a verdict upon all matters contained in the same application.
(c) On the return of the verdict and the payment to the clerk of the damages assessed, the land so assessed shall inure to the public use for the use specified in the application and the council or other governing body may take the property condemned or proceed to change the grade of any such street, sidewalk, or public place, unless the council or other governing body or some proprietor or proprietors shall, within 30 days, take an appeal to the circuit court of the county by filing a written notice of appeal, a copy of which shall be served on the opposite party or his attorney. On such appeal being taken, the assessment of damages shall be tried de novo in such court and, upon such trial, either party may demand a jury.
(d) On the suing out of a writ, the mayor or other chief executive officer shall pay to the clerk of the court three dollars ($3) for his or her fees, two dollars ($2) per day for each juror on the preliminary assessment and three dollars ($3) for the sheriff, to be paid by a warrant drawn by the city or town clerk on the order of the mayor or other chief executive officer.
(e) When any owner of lands, which lands or the use thereof are desired for the city or town or for any of the purposes mentioned in Section 11-47-171 or subsection (a) of this section, is an infant, non compos mentis, a nonresident, or unknown, the clerk of such court must give notice of the filing of such application by publishing a copy for three successive weeks in some newspaper published in said city or town, before he issues the writ to the sheriff, and, in all other cases, five days’ notice of the filing of the writ shall be given by the clerk of the court to the owners of the property by service upon the owner personally by the sheriff or by leaving a copy thereof at the owner’s residence or place of business, and the mayor or other chief executive officer of such city or town must deposit with the clerk the advertising fee, to be paid by warrant drawn by the city or town clerk on an order of the mayor or other chief executive officer as other warrants are drawn.
(f) For purposes of the assessment of value, damages, or injury pursuant to subsection (a) and the trial of the assessment of damages pursuant to subsection (c), if lands, or rights, easements, or interests in land, lying seaward of the construction control line then in effect under the regulations of the Alabama Department of Environmental Management, the ordinances of a coastal municipality, or both, are taken for use by a coastal municipality in the construction and maintenance of a beach project permitted pursuant to Section 9-15-56, the assessment of damages for the taking of the lands, or rights, easements, or interests in land, lying seaward of the construction control line shall take into consideration the value of the enhancement to the remaining lands of the proprietor that the beach project may cause as the result of the placement of sand directly on and directly seaward of the lands, or rights, easements, or interests in land so taken. To the extent, and only to the extent, that sand is placed directly on, and directly seaward of the lands, or rights, easements, or interests in land so taken, it may be presumed:
(1) That the value of the remaining lands of the proprietor will exceed the value of all affected lands, rights, easements, and interests of the proprietor prior to the taking as a result of the enhancement in value resulting from the beach project.
(2) That the proprietor has sustained no damage or injury and is entitled to no compensation as a result of the taking.
(g) The presumptions under subsection (f) shall be rebutted only by substantial evidence adduced by the owner.
*(Code 1907, §1441; Code 1923, §2297; Code 1940, T. 37, §509; Act 2000-676, p. 1365, §2.)*
##### **§ 11-47-173** Right of Entry of Municipality Pending Appeal {#sec-11-47-173 omnilex-key=us-al-statutes--title-11--11-47-173}
When an appeal is taken from any preliminary assessment as provided for in subsection (c) of Section 11-47-172, such appeal shall not deprive the municipal corporation obtaining the judgment of condemnation from a right of entry for any or all of the purposes provided for in Section 11-47-171 or subsection (a) of Section 11-47-172; provided, that the amount of damages assessed shall be paid into court in money and a bond shall be given in not less than double the amount of damages assessed, with good and sufficient sureties, to be approved by the clerk of the court to which the appeal is taken, conditioned to pay such damages as the owner of the property may sustain.
*(Code 1907, §1442; Code 1923, §2298; Code 1940, T. 37, §510.)*
#### **Article 8** Liability for Negligence of Agents, Etc
##### **§ 11-47-190** When Municipality Liable; Joint Liability of Other Persons or Corporations {#sec-11-47-190 omnilex-key=us-al-statutes--title-11--11-47-190}
No city or town shall be liable for damages for injury done to or wrong suffered by any person or corporation, unless such injury or wrong was done or suffered through the neglect, carelessness, or unskillfulness of some agent, officer, or employee of the municipality engaged in work therefor and while acting in the line of his or her duty, or unless the said injury or wrong was done or suffered through the neglect or carelessness or failure to remedy some defect in the streets, alleys, public ways, or buildings after the same had been called to the attention of the council or other governing body or after the same had existed for such an unreasonable length of time as to raise a presumption of knowledge of such defect on the part of the council or other governing body and whenever the city or town shall be made liable for damages by reason of the unauthorized or wrongful acts or negligence, carelessness, or unskillfulness of any person or corporation, then such person or corporation shall be liable to an action on the same account by the party so injured. However, no recovery may be had under any judgment or combination of judgments, whether direct or by way of indemnity under Section 11-47-24, or otherwise, arising out of a single occurrence, against a municipality, and/or any officer or officers, or employee or employees, or agents thereof, in excess of a total $100,000 per injured person up to a maximum of $300,000 per single occurrence, the limits set out in the provisions of Section 11-93-2 notwithstanding.
*(Code 1907, §1273; Code 1923, §2029; Code 1940, T. 37, §502; Acts 1994, No. 94-641, p. 1202, §1.)*
##### **§ 11-47-191** Institution of Actions, Entry, and Execution of Judgments Against Municipalities and Other Persons or Corporations Jointly Liable {#sec-11-47-191 omnilex-key=us-al-statutes--title-11--11-47-191}
(a) The injured party, if he institutes a civil action against the municipality for damages suffered by him, shall also join such other person or persons or corporation so liable as defendant or defendants of the civil action, and no judgment shall be entered against the city or town unless judgment is entered against such other person or corporation so liable for such injury, except where a summons is returned not found as to a defendant or when judgment is entered in his favor on some personal defense, and if a civil action be brought against the city or town alone and it is made to appear that any person or corporation ought to be joined as a defendant in the action according to the provisions in Section 11-47-190, the action shall be dismissed, unless the plaintiff amends his complaint by making such party or corporation a defendant, if a resident of the state, but no person shall be sued jointly with the city or town who would not be liable separately, irrespective of this provision.
(b) When a judgment shall be obtained against a municipality and the other party liable as provided in subsection (a) of this section, execution shall issue against the other defendant or defendants in the ordinary form and shall not be demandable of the city or town unless the other defendants are insolvent and the same cannot be made out of their property, and the city or town shall pay only so much of the said judgment as cannot be collected from the other defendants.
(c) If the injured party shall, before bringing the civil action, demand of the mayor or other chief executive officer of such municipality the name of such other person or persons or corporation as may be liable jointly with the said municipality to such injured party, and if such mayor or other chief executive officer fails to furnish, within 10 days from the making of such demand, the name of such person or persons or corporation so jointly liable, the said injured party shall not be required to join such other person as a party defendant with said municipality in any civil action brought to recover damages for such injuries.
*(Code 1907, §1274; Code 1923, §2030; Code 1940, T. 37, §503.)*
##### **§ 11-47-192** Filing of Statement as to Manner of Injury, Damages Claimed, Etc {#sec-11-47-192 omnilex-key=us-al-statutes--title-11--11-47-192}
No recovery shall be had against any city or town on a claim for personal injury received, unless a sworn statement be filed with the clerk by the party injured or his personal representative in case of his death stating substantially the manner in which the injury was received, the day and time and the place where the accident occurred and the damages claimed.
*(Code 1907, §1275; Code 1923, §2031; Code 1940, T. 37, §504.)*
#### **Article 9** Parks, Playgrounds, and Other Recreational and Athletic Areas and Facilities
##### **§ 11-47-210** Definitions {#sec-11-47-210 omnilex-key=us-al-statutes--title-11--11-47-210}
When used in this article, unless the context plainly indicates otherwise, the following words and phrases shall have the meanings respectively ascribed to them by this section:
(1) APPLICANT. An individual who files a written application with the governing body of any county or municipality in accordance with Section 11-47-214.
(2) AUTHORITY. A public corporation organized under this article for the purposes, with the powers, and subject to the restrictions set forth in this article.
(3) AUTHORIZING COUNTY. With respect to an authority, any county which has a governing body that has made findings and determinations of facts pertaining to the organization of the authority in accordance with Section 11-47-214.
(4) AUTHORIZING MUNICIPALITY. With respect to an authority, any municipality which has a governing body that has made findings and determinations of facts pertaining to the organization of the authority in accordance with Section 11-47-214.
(5) AUTHORIZING RESOLUTION. A resolution or ordinance adopted by the governing body of any county or municipality in accordance with Section 11-47-214 to authorize the incorporation of an authority.
(6) AUTHORIZING SUBDIVISION. With respect to an authority, any authorizing county or authorizing municipality.
(7) BOARD. The board of directors of the authority.
(8) BONDS. Bonds, notes, or other obligations representing an obligation to pay money.
(9) COUNTY. Any county in the state.
(10) DIRECTOR. A member of the board of directors of the authority.
(11) GOVERNING BODY. With respect to a municipality, its city or town council, board of commissioners, or other comparable governing body exercising the legislative functions of a municipality and with respect to a county, its county commission, or other comparable governing body exercising the legislative functions of a county.
(12) INCORPORATORS. The individuals forming a public corporation pursuant to this article.
(13) INDENTURE. A mortgage, mortgage indenture, mortgage and trust indenture, or trust indenture executed by an authority as security for any of its bonds.
(14) MUNICIPALITY. Any city or town incorporated under the laws of the State of Alabama.
(15) PERSON. The state, a municipality, a county, any political subdivision or agency of the state or any county or municipality, a public corporation, or any private corporation, individual, partnership, trust, or foundation.
(16) PROJECT. Any land and interest therein, including forests, rivers, streams, waterways, and lakes, and any buildings or other improvements thereon, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for a public park, including, without limitation, any park that constitutes or includes a water theme park, an amusement park or any comparable entertainment facility, a playground or other recreational or athletic facility, and all buildings, facilities, and improvements incident thereto or useful in connection therewith, including, without limitation, picnic areas, campsites, trailer sites, cabins, lodges, roads, and trails for hiking, bicycling, or horseback riding, nature trails, botanical gardens, zoos, museums, athletic fields, golf courses, tennis, handball and badminton courts, public restroom facilities, boats, rides, amusement facilities, bowling alleys, skeet, trap, rifle, and archery ranges, gymnasiums, swimming pools, bathhouses, beaches, docks and marinas, boating facilities, areas and facilities for fishing and hunting, areas and facilities for aquatic entertainment and sports, stadiums, coliseums, arenas, grandstands, auditoriums, meeting halls, pavilions, centers for cultural entertainment, music, drama, exhibitions and exhibits, amphitheaters, administrative building, and sports, gift, and souvenir shops. This term shall not include any facility or location for casino gambling or any other game of chance.
(17) STATE. The State of Alabama.
(18) SUBDIVISION. Any county or municipality.
*(Acts 1977, No. 209, p. 276, §1; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-210.1** Legislative Findings and Declarations {#sec-11-47-210.1 omnilex-key=us-al-statutes--title-11--11-47-210.1}
The Legislature finds and declares all of the following:
(1) Through this article, the Legislature has (i) granted to each municipality in the state, acting either individually or in cooperation with one or more other municipalities, the power to acquire, operate, manage, and control parks, playgrounds, and other recreational or athletic facilities and to authorize the organization of an authority, as a public corporation, to act on behalf of the municipality or municipalities in providing for the ownership and management of parks, playgrounds, and other recreational or athletic facilities, (ii) provided for the organization of the authorities, and (iii) specified certain powers to be enjoyed by such an authority.
(2) In order to facilitate the accomplishment of the legislative objectives reflected in this article and to provide for a greater degree of mutual cooperation among separate political subdivisions, it is necessary, appropriate, and desirable to amend this article in order to grant to any county the powers granted to municipalities by the article, to describe in a more comprehensive manner the types of properties and facilities that are subject to being acquired and managed under the article, to provide with more specificity the procedure to be followed in organizing an authority pursuant to the article, to modify certain provisions respecting the composition of the governing body of such an authority and to further define and expand the corporate powers of such an authority.
(3) In addition to an amendment of the existing provisions of this article, it is necessary, appropriate, and desirable for the Legislature to provide for the issuance by such an authority of bonds, notes, or other obligations and for the undertaking by such an authority of related contractual commitments and to grant to the authority certain exemptions that are typically granted to Alabama public corporations formed to serve a specified public purpose.
(4) In order to enable such an authority to issue bonds, notes, or other obligations to finance an authorized capital project, it is necessary, appropriate, and desirable (i) to empower any county or municipality which would derive benefits from the project to render financial assistance to the authority and, in particular, to incur a contractual obligation to make periodic payments to, or for the benefit of, the authority in order to provide for the payment of all or a portion of the debt service on the bonds, notes, or other obligations of the authority, and (ii) to specify the extent to which such a financial commitment by a county or municipality is to be regarded as a debt of the county or municipality for purposes of any applicable limitation on indebtedness imposed by the constitution or other laws of the state.
*(Acts 1996, No. 96-320, p. 361, §1.)*
##### **§ 11-47-211** Powers of Subdivisions as to Acquisition or Leasing of Lands, Buildings, Etc., for Projects, Generally {#sec-11-47-211 omnilex-key=us-al-statutes--title-11--11-47-211}
Each subdivision in the State of Alabama may, in the manner as may be authorized or provided by law for the acquisition of lands, buildings, facilities, and improvements for public purposes, acquire or lease lands, buildings, facilities, and improvements situated in whole or in part inside or outside the limits of the subdivision for one or more projects; provided, however, that no project acquired by a municipality shall be located in whole or in part within the corporate limits or the police jurisdiction of another municipality or within a county other than the county where its primary site of government is located unless the governing body of the other municipality or county has first adopted a resolution consenting to the location therein of the project; provided further, that no project acquired by a county shall be located in whole or in part in a different county unless the governing body of the other county has first adopted a resolution consenting to the location therein of the project.
*(Acts 1977, No. 209, p. 276, §2; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-212** Exercise by Subdivision with Respect to Projects Outside Corporate Limits or Boundaries of Powers Granted with Respect to Projects Within Corporate Limits or Boundaries {#sec-11-47-212 omnilex-key=us-al-statutes--title-11--11-47-212}
All authority heretofore or hereafter granted to a subdivision to acquire, provide, establish, finance, including the issuance of bonds, warrants, or other obligations to pay the cost thereof, own, use, operate, manage, and control, including the fixing of fees and the charging for access to and the use and enjoyment thereof and the making of rules and regulations with respect thereto, projects situated within its corporate limits, in the case of a municipality, or within its boundaries, in the case of a county, shall be applicable to and may be exercised by the subdivision with respect to any project situated in whole or in part outside its corporate limits or its boundaries, as the case may be.
*(Acts 1977, No. 209, p. 276, §3; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-213** Cooperation by Subdivisions in Acquisition, Establishment, Operation, Etc., of Projects; Powers of Cooperating Subdivisions {#sec-11-47-213 omnilex-key=us-al-statutes--title-11--11-47-213}
A subdivision may join and cooperate with one or more other subdivisions in acquiring, providing, establishing, financing, refinancing, operating, managing, and controlling and conducting projects, making them common to the use of the subdivisions and the inhabitants thereof, and in fixing and charging fees and making rules and regulations for the conduct, management, and use thereof.
All subdivisions so joining or cooperating shall jointly have the same powers and authority conferred on each by this article.
*(Acts 1977, No. 209, p. 276, §4; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-214** Authorization by Subdivisions of Organization and Incorporation of Authorities for Acquisition, Establishment, Operation, Etc., of Projects Generally; Application for Authority to Form Corporation; Review of Application; Publication of Resolution Approving or Denying Application {#sec-11-47-214 omnilex-key=us-al-statutes--title-11--11-47-214}
(a) The governing bodies of two or more subdivisions may authorize the organization of an authority as a public corporation with powers set forth in this article for the purpose of acquiring, financing, refinancing, providing, establishing, installing, using, or managing one or more projects.
(b) To organize such a corporation, not less than three natural persons shall file with the governing body of any subdivision or any two or more thereof, an application in writing for permission to incorporate a public corporation under this article, which application shall:
(1) Recite the name of each county and municipality with the governing body of the county or municipality with which the application is filed.
(2) Contain a statement that the applicants propose to incorporate an authority pursuant to this article.
(3) State the proposed location of the principal office of the authority.
(4) State that each of the applicants is a duly qualified elector of at least one authorizing subdivision.
(5) Request that the governing body of the authorizing subdivision adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed, its certificate of incorporation is approved, and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-47-215. The application shall be accompanied by the form of certificate of incorporation of the proposed authority and by other supporting documents or evidence which the applicants may consider appropriate.
(c) As soon as practicable after receiving an application filed with it in accordance with this section, the governing body of each authorizing subdivision shall review the contents of the application and the accompanying form of the certificate of incorporation and shall adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary that the proposed authority be formed, approving the form of its certificate of incorporation, and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-47-215. The resolution shall be published once a week for two consecutive weeks in a newspaper of general circulation in the subdivision approving the resolution. Each governing body with which the application is filed shall cause a copy of the application to be spread upon the minutes of the meeting of the governing body at which final action upon the application is taken.
*(Acts 1977, No. 209, p. 276, §5; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-215** Certificate of Incorporation of Authorities - Contents {#sec-11-47-215 omnilex-key=us-al-statutes--title-11--11-47-215}
The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority, together with the residence of each person, and that each of them is a duly qualified elector of at least one of the subdivisions.
(2) The name of the authority, which may be a name indicating in a general way the area proposed to be served by the authority and shall include the words “Public Park Authority” (e.g., “The _____ Public Park Authority,” or “The Public Park Authority of _____,” the blank spaces to be filled in with the name of one or more of the authorizing subdivisions or other geographically descriptive word or words, the descriptive word or words shall not, however, preclude the authority from locating facilities or otherwise exercising its powers in other geographical areas), unless the Secretary of State shall determine that the name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case, the incorporators may insert additional identifying words so as to eliminate the possibility of duplication or similarity.
(3) The period for the duration of the authority (if the duration is to be perpetual, that fact should be so stated).
(4) The name of each authorizing subdivision, together with the date on which the governing body thereof adopted an authorizing resolution.
(5) The proposed location of the principal office of the authority, which shall be within the boundaries of one of the authorizing subdivisions.
(6) That the authority is organized pursuant to the provisions of this article.
(7) If the exercise by the authority of any of its powers hereunder is to be in any way prohibited, limited, or conditioned and a statement of the terms of the prohibition, limitation, or condition.
(8) The number of members of the board of directors of the authority, which shall be an odd number not less than three, the duration of their respective terms of office, which shall not be in excess of six years, and the manner of their election or appointment.
(9) Any provisions, not inconsistent with this article, which relate to the vesting of title to its properties upon its dissolution.
(10) A statement as to whether employees of the authority shall or shall not be subject to civil service laws, retirement laws, and disability laws applicable to employees of one of the authorizing subdivisions which then may be in effect or may thereafter be enacted.
(11) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this article or with the laws of the state.
*(Acts 1977, No. 209, p. 276, §6; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-216** Certificate of Incorporation of Authorities - Form; Execution and Acknowledgment; Filing with Probate Judge; Recordation by Probate Judge; Amendment {#sec-11-47-216 omnilex-key=us-al-statutes--title-11--11-47-216}
(a) Within 40 days following the adoption of the most recent authorizing resolution, the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the county in which the principal office of the authority is to be located a certificate of incorporation which shall comply in form and substance with the requirements of this article and which shall be in the form and executed in the manner provided in this article and shall also be in the form theretofore approved by the governing body of each authorizing subdivision.
(b) The certificate of incorporation of the authority shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgment to deeds. When the certificate of incorporation is filed for recordation, there shall be attached thereto a certified copy of the authorizing resolution adopted by the governing body of each authorizing subdivision and a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty.
(c) The certificate of incorporation of the authority, together with the documents required by subsection (b) shall be attached thereto and filed for record in the office of the judge of probate of the county in which the principal office of the authority shall be located. The judge of probate shall forthwith receive and record the same. When such a certificate of incorporation and attached documents have been so filed, the authority referred to therein shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation, whereupon the authority shall be vested with the rights and powers granted in this article.
(d) The certificate of incorporation of an authority incorporated under this article at any time may be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation, which amendment shall be set forth in full in the resolution and which amendment may include any matters which might have been included in the original certificate of incorporation. After the board adopts the resolution proposing an amendment to the certificate of incorporation of the authority, the chair of the board and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of each authorizing subdivision, requesting the governing body to adopt a resolution approving the proposed amendment, and the application shall be accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with any documents in support of the application which the chair may consider appropriate. As soon as practicable after the application is filed with the governing body of an authorizing subdivision pursuant to the foregoing provisions of this section, the governing body shall review the application and adopt a resolution either denying the application or authorizing the proposed amendment. The governing body of the authorizing subdivision with which the application is filed shall publish the resolution once a week for two consecutive weeks in a newspaper of general circulation in the subdivision and shall cause a copy of the application and all accompanying documents to be spread upon the minutes of the meeting of the governing body at which the final action upon the application is taken. The certificate of incorporation of an authority may be amended only after the filing of an application therefor and the adoption by the governing body of each authorizing subdivision of an approving resolution.
(e) Within 40 days following the adoption by the governing body of the authorizing subdivision of the most recent resolution approving the proposed amendment, the chair of the board of the authority and the secretary of the authority shall sign and file for record in the office of the judge of probate with which the certificate of incorporation of the authority was originally filed a certificate in the name of and on behalf of the authority, under its seal, reciting the adoption of the respective resolutions by the board and by the governing body of each authorizing subdivision and setting forth the proposed amendment. The judge of probate for the county shall thereupon record the certificate in an appropriate book in his or her office. When the certificate has been filed and recorded, the amendment shall become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of an authority shall be amended except in the manner provided in this section.
*(Acts 1977, No. 209, p. 276, §7; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-217** Boards of Directors of Authorities {#sec-11-47-217 omnilex-key=us-al-statutes--title-11--11-47-217}
(a) Each authority shall have a board of directors composed of the number of directors provided in the certificate of incorporation, as most recently amended. Unless provided to the contrary in its certificate of incorporation, all powers of the authority shall be exercised, and the authority shall be governed by the board or pursuant to its authorization. Subject to the provisions of subdivision (8) of Section 11-47-215, the board shall consist of directors who have the qualifications and are elected or appointed for certain terms of office as shall be specified in the certificate of incorporation of the authority. Notwithstanding the foregoing, if the original directors are appointed by the incorporators, the original directors shall be identified in the proposed form of the certificate of incorporation submitted to the governing body of each of the authorizing subdivisions together with the application for authority to incorporate.
(b) Upon the expiration of any term of office of any director, if a successor thereto has not been elected or appointed, then the director whose term of office has expired shall continue to hold office until his or her successor is elected or appointed. If at any time there should be a vacancy on the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to the vacancy shall be elected or appointed by the person or persons who elected or appointed the predecessor director, unless the predecessor director was appointed by the incorporators, in which case the successor thereto shall be appointed by the remaining members of the board who continue to serve as directors following the event that resulted in the vacancy. Each election or appointment of a director, whether for a full term or to complete an unexpired term, shall be made not earlier than 30 days prior to the date on which the director is to take office. Any director, irrespective of by whom elected or appointed, shall be eligible for reelection or reappointment.
(c) Each director shall serve without compensation but shall be reimbursed for expenses actually incurred in the performance of his or her duties. A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board may be adjourned by a majority of the directors present or may be so adjourned by a single director if the director is the only director present at the meeting. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times as may be provided in the bylaws of the authority, may hold other meetings at any time upon notice of the meeting being given as required by the bylaws of the authority, and shall, upon call of the chair of the authority or a majority of the total number of directors, hold a special meeting. Any matter on which the board is authorized to act may be acted upon at any regular, special, or called meeting. At the request of any director, the vote on any question before the board shall be taken by yeas and nays and entered upon the record. All resolutions adopted by the board shall constitute actions of the authority, and all proceedings of the board shall be reduced to writing and signed by the secretary of the authority and shall be recorded in a well-bound book. Copies of the proceedings, when certified by the secretary of the authority, under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
All proceedings of the board shall be reduced to writing by the secretary of the authority and recorded in a well-bound book and open to each director and to the public at all times.
(d) Any director may be impeached or removed from office in the same manner and on the same grounds provided by Section 175 of the Constitution of Alabama of 1901 and the general laws of the state for impeachment or removal of officers.
(e) The officers of an authority shall consist of a chair, a vice-chair, a secretary, a treasurer, and other officers the board deems to be necessary or desirable. The chair and the vice-chair of the authority shall be elected by the board from its membership, but neither the secretary, the treasurer, nor any of the other officers of the authority shall be a director. The offices of secretary and treasurer may, but need not, be held by the same person. The chair and the vice-chair of the authority shall be elected by the board for terms which do not exceed three years, and the secretary, the treasurer, and the other officers of the authority shall be elected by the board for such terms as it deems advisable. The duties of the chair, vice-chair, secretary, and treasurer shall be those which are customarily performed by officers and as may be prescribed by the board. The duties of any other officers of the authority shall be such as are from time to time prescribed by the board.
*(Acts 1977, No. 209, p. 276, §8; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-218** Powers of Authorities Generally; Location of Projects; Exercise of Power of Eminent Domain {#sec-11-47-218 omnilex-key=us-al-statutes--title-11--11-47-218}
(a) In addition to all other powers at any time conferred on it by law, and subject to any express provisions of its certificate of incorporation to the contrary, an authority shall have the following lawful powers, together with all powers incidental thereto or necessary to discharge thereof in the corporate form:
(1) To have succession by its corporate name in perpetuity or for the duration specified in its certificate of incorporation.
(2) To sue and be sued in its own name in civil actions and to defend actions against it.
(3) To adopt and make use of a corporate seal and to alter the same at pleasure.
(4) To adopt, alter, and repeal bylaws, regulations, and rules, not inconsistent with this article or its certificate of incorporation, for the regulation and conduct of the affairs and business of the authority.
(5) To acquire, receive, take, and hold, whether by purchase, gift, lease, devise or otherwise, property of every description, whether real, personal or mixed, and to manage the property and to develop any undeveloped property owned, leased, or controlled by it.
(6) To borrow money and to sell and issue bonds for any corporate use or purposes.
(7) To acquire, whether by gift, purchase, transfer, foreclosure, lease, or otherwise, to construct and to expand, improve, operate, maintain, equip, and furnish one or more projects, including all real and personal properties that its board may deem necessary in connection therewith.
(8) To lease to any person or persons all or any part of any project or projects that are or shall be owned by it, to charge and collect rent therefor and to terminate the lease upon the failure of the lessee to comply with any of the obligations thereof, all upon the terms and conditions as its board may deem advisable.
(9) To pledge for payment of any bonds issued or assumed by the authority any revenues, including any moneys payable by a subdivision to, or for the benefit of, the authority for such purpose, from which the bonds are payable, and to mortgage or pledge any or all of its projects and revenues or any part or parts thereof, whether then owned or received or thereafter acquired or received.
(10) To assume obligations secured by a lien on or secured by and payable out of or secured by a pledge of any project or projects or part thereof or the revenues derived from any project or projects that may be acquired by the authority.
(11) To make, enter into, and execute contracts, agreements, leases, and other instruments, and to take such other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted under this article.
(12) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to do any and all things not specifically prohibited by this article or other applicable laws of the state which may be necessary in order to avail itself of the aid and cooperation of the United States of America, the state, or any agency, instrumentality, or political subdivision of either thereof in furtherance of the purposes of this article.
(13) To receive and accept from any source aid or contributions in the form of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this article, subject to any lawful condition upon which the aid or contributions may be given or made.
(14) To enter into a management contract or contracts with any municipality, any county, or any person or persons for the management, supervision, or operation of all or any part of its projects as may in the judgment of the authority be necessary or desirable in order to perform more efficiently or economically and function for which it may become responsible in the exercise of the powers conferred upon it by this article.
(15) To procure insurance against any loss in connection with its property and other assets in the amounts and from the insurers as its board may deem desirable.
(16) To invest its moneys, including, without limitation, the moneys held in any special fund created pursuant to any indenture securing any of its bonds and proceeds from the sale of any bonds, not required for immediate use in:
a. Any debt securities that are direct, general obligations of the United States of America.
b. Any debt securities, the payment of the principal of and interest on which is unconditionally guaranteed by the United States of America.
c. Any time deposit with, or any certificate of deposit issued by, any bank which is organized under the laws of the United States of America or any state thereof and deposits which are insured by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of the corporation.
d. Any debt obligation in which an insurance company organized under the laws of the state may legally invest its money at the time of investment by the authority.
(17) To procure or agree to the procurement of insurance or guarantees from the United States of America or any agency or instrumentality thereof, or from any private insurance company, of the payment of any bonds issued by the authority, and to pay premiums or fees for the insurance or guarantees.
(18) To fix and charge fees and to make rules and regulations for the conduct, management, and use of projects.
(19) To appoint, employ, contract with, and provide for compensation of the officers, employees, and agents, including engineers, attorneys, consultants, financial advisors, and other employees, as the business of the authority may require, including the power to fix working conditions and other conditions of employment by general rule, subject to the provisions of the certificate of incorporation of the authority, and the power at its option to provide a system of disability pay, retirement, compensation, and pensions or any of them and to hire and fire servants, agents, employees, and officers at will.
(20) To sell and convey any of its properties that, in the judgment of the board, have become obsolete or worn out or that may no longer be needed or useful.
(21) To participate as a shareholder in a corporation, as a joint venturer in a joint venture, as a general or limited partner in a limited partnership or a general partnership, as a member in a nonprofit corporation, or as a member of any other lawful form of business organization.
(22) To elect (i) all or any of the members of the board of directors of any nonprofit corporation of which the authority is a member or of which any one or more of the members of the board of directors of the authority is an ex officio member (subject, however, to any contrary or inconsistent provision of the articles of incorporation or bylaws of the nonprofit corporation), and (ii) all or any of the members of the board of directors of any nonprofit corporation that has no members and whose articles of incorporation or bylaws provide for the election of one or more of the members of its board of directors from among members of the board of directors of the authority (subject, however, to any contrary or inconsistent provision of the articles of incorporation or bylaws of the nonprofit corporation).
(23) To create, establish, acquire, operate, or support subsidiaries and affiliates, either for profit or nonprofit, to assist the authority in fulfilling its purposes.
(24) To create, establish, or support nonaffiliated for profit or nonprofit corporations or other lawful business organizations which operate and have as their purpose the furtherance of the purposes of the authority.
(25) Without limiting the generality of the preceding subdivisions (23) and (24), to accomplish and facilitate the creation, establishment, acquisition, operation, or support of the subsidiary, affiliate, nonaffiliated corporation, or other lawful business organization, by means of loans of funds, leases of real or personal property, gifts and grants of funds, or guarantees of indebtedness of the subsidiaries, affiliates, and nonaffiliated corporations.
(26) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to this article.
(b) Any project or projects of an authority organized pursuant to authorization from an authorizing municipality may be located within or without or partially within and partially without the authorizing municipality, subject to the following conditions:
(1) No project or part thereof shall be located more than 30 miles from the corporate limits of the authorizing municipality.
(2) No project or part thereof shall be located within the corporate limits of a municipality other than the authorizing municipality in this state.
(3) No project or part thereof shall be located within the police jurisdiction of another municipality in this state unless the governing body of the municipality has first adopted a resolution consenting to the location of the project or part thereof in the police jurisdiction of the municipality.
(4) No project or part thereof shall be located in a county other than the county in which the principal place and seat of government and at least a portion of the authorizing municipality are situated unless the governing body of the other county has first adopted a resolution consenting to the location of the project or part thereof in the county.
(5) Any project or part thereof that is located outside of the authorizing municipality shall comply with all zoning laws, subdivision restrictions and regulations, and all other laws and regulations of any county or municipality in which the project or a part thereof is situated.
(c) Any project or projects of an authority organized pursuant to authorization from an authorizing county may be located within or without or partially within and partially without the authorizing county, subject to the following conditions:
(1) No part of a project shall be located more than three miles outside the boundaries of the authorizing county.
(2) In no event shall any project or part thereof be located within the corporate limits of a municipality unless the governing body of the municipality has first adopted a resolution consenting to the location of the project or part thereof in the municipality.
(3) No project or part thereof shall be located in a county other than the authorizing county unless the governing body of the other county has first adopted a resolution consenting to the location of a part of the project in the other county.
(d) Any project or projects of an authority jointly organized pursuant to authorization from two or more subdivisions may be located within or without or partially within and partially without the respective authorizing subdivisions, subject to the following conditions:
(1) No project or part thereof shall be located in a county other than (i) the county in which any authorizing municipality is situated and has its principal place and seat of government, or (ii) a county that is also an authorizing subdivision unless the governing body of the other county has first adopted a resolution consenting to the location of the project or part thereof in the county.
(2) No project or part thereof shall be located within the corporate limits of a municipality other than an authorizing municipality unless the governing body of the municipality has first adopted a resolution consenting to the location of the project or part thereof in the municipality.
(e) Nothing in this section shall be construed to authorize the acquisition by eminent domain of any real property or rights owned or held by railroads or utilities, both public or private.
*(Acts 1977, No. 209, p. 276, §9; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-219** Authority and Procedure for Dissolution of Authorities; Vesting of Title, Etc., to Properties Thereof Upon Dissolution {#sec-11-47-219 omnilex-key=us-al-statutes--title-11--11-47-219}
At any time when an authority has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the resolution in the office of the judge of probate with which the authority’s certificate of incorporation is filed, the authority shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall, subject to any constitutional provision or inhibitions to the contrary, thereupon vest in one or more counties or municipalities in the manner and interests as may be provided in the certificate of incorporation. Notwithstanding the foregoing, if the certificate of incorporation contains no provision respecting the vesting of title to the properties of the authority, title to all of the properties shall, subject to any constitutional provision or inhibitions to the contrary, thereupon vest in its authorizing subdivision, or if the authority has more than one authorizing subdivision, in its authorizing subdivisions as tenants in common.
*(Acts 1977, No. 209, p. 276, §10; Acts 1996, No. 96-320, p. 361, §2.)*
##### **§ 11-47-220** Construction of Article {#sec-11-47-220 omnilex-key=us-al-statutes--title-11--11-47-220}
Neither this article nor anything contained in this article shall be construed as a limitation or restriction upon any power which a municipality might otherwise have under the laws of the State of Alabama and this article shall be construed as cumulative of such powers.
*(Acts 1977, No. 209, p. 276, §11.)*
##### **§ 11-47-221** Bonds of an Authority - Execution and Delivery; Form and Denominations; Rate of Interest; Redemption; Issuance and Sale {#sec-11-47-221 omnilex-key=us-al-statutes--title-11--11-47-221}
Bonds of an authority may be executed and delivered by it at any time, shall be in the form and denominations and of the tenor and maturity or maturities not exceeding 30 years from their date, shall bear the rate or rates of interest, which may be fixed or which may float or vary based on some index or other standard deemed appropriate by the board or pursuant to periodic determinations made by an agent of the authority, shall be payable and evidenced in the manner, may contain provisions for redemption prior to maturity, and may contain other provisions not inconsistent with the provisions of this article, all as may be provided by the resolution of the board authorizing the bonds or by the indenture whereunder the bonds are authorized to be issued. A bond of any authority having a specified maturity date more than 10 years after its date shall be made subject to redemption at the option of the authority at the end of the tenth year after its date, and on any interest payment date thereafter, under such terms and conditions and at such premiums, if any, as may be provided in the resolution under which the bond is authorized to be issued. Any borrowing may be effected by the issuance and sale of bonds at either public or private sale in the manner, at the price or prices, at the time or times and on the other terms and conditions as may be determined by the board to be most advantageous to the authority.
*(Acts 1996, No. 96-320, p. 361, §3.)*
##### **§ 11-47-222** Bonds of an Authority - Sale and Issuance of Refunding Bonds; Maturity; Limitation on Principal Amount; Use of Proceeds; Effectuation of Refunding by Sale or Exchange of Bonds {#sec-11-47-222 omnilex-key=us-al-statutes--title-11--11-47-222}
(a) An authority may at any time and from time to time sell and issue its refunding bonds for the purpose of refunding the principal of and interest on any then outstanding bonds of the authority, whether or not the bonds shall have matured or be redeemable at the option of the authority at the time of the refunding, and for the payment of any expenses incurred in connection with the refunding and any premium or other sum necessary to be paid to redeem or retire the bonds to be refunded. No refunding bonds shall be issued unless the present value of all debt service on the refunding bonds (computed with a discount rate equal to the true interest rate of the refunding bonds and taking into account all underwriting discount and other issuance expenses) shall not be greater than 95 percent of the present value of all debt service on the bonds to be refunded (computed using the same discount rate and taking into account the underwriting discount and other issuance expenses originally applicable to such bonds) determined as if such bonds to be refunded were paid and retired in accordance with the schedule of maturities (considering mandatory redemption as a scheduled maturity) provided at the time of their issuance. Provided further that the average maturity of the refunding bonds, as measured from the date of issuance of such refunding bonds, shall not exceed by more than three years the average maturity of the bonds to be refunded, as also measured from such date of issuance, with the average maturity of any principal amount of bonds to be determined by multiplying the principal of each maturity by the number of years (including any fractional part of a year) intervening between such date of issuance and each such maturity, taking the sum of all such products, and then dividing such sum by the aggregate principal amount of bonds for which the average maturity is to be determined. Such refunding bonds shall be subrogated and entitled to all priorities, rights, and pledges to which the bonds refunded thereby were entitled. Notwithstanding the foregoing, the principal amount of bonds that the authority may at any time issue for refunding purposes shall not exceed the sum of the following:
(1) The outstanding principal or face amount of the bonds refunded thereby.
(2) The unpaid interest accrued or to accrue thereon to their respective maturities or, in the event the bonds to be refunded, or any part thereof, are to be retired prior to their respective maturities, the interest accrued or to accrue thereon to the date or dates on which they are to be retired.
(3) Any premium or other sum necessary to be paid in order to redeem or retire the bonds to be refunded, but only if the bonds are in fact to be redeemed or retired prior to their respective maturities.
(4) The expenses estimated to be incurred in connection with the refunding. The authority may also sell and issue its bonds at any time for the combined purpose of refunding any of its bonds and of obtaining funds for any other purposes for which it is authorized by this article to sell and issue bonds, in which event the provisions of this article relating to refunding bonds shall apply only to those bonds issued for refunding purposes.
(b) The principal proceeds derived by the authority from the sale of any refunding bonds shall be used only for the payment of the principal, interest, and premium, if any, on the bonds being refunded and for payment of the expenses referred to in the preceding subdivision (4) of subsection (a) of this section. Notwithstanding the foregoing, if in the judgment of the board the action is necessary or desirable to effect an advantageous refunding, a portion of the proceeds may be used for payment of principal of and interest on the refunding bonds themselves and the remainder of the proceeds for payment of the bonds being refunded and for the aforementioned expenses.
(c) The refunding may be effected either by sale of refunding bonds and the application of the proceeds thereof as provided in subsection (b) of this section, or by exchange of the refunding bonds for the bonds to be refunded thereby, or by any combination thereof. Notwithstanding the foregoing, the holders of any bonds to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they may be paid or redeemed by call of the authority under their respective provisions. All provisions of this article pertaining to bonds of the authority that are not inconsistent with this section shall, to the extent applicable, also apply to refunding bonds issued by the authority and to bonds issued by the authority for both refunding and other purposes.
*(Acts 1996, No. 96-320, p. 361, §4.)*
##### **§ 11-47-223** Bonds of an Authority - Signature and Seal {#sec-11-47-223 omnilex-key=us-al-statutes--title-11--11-47-223}
All bonds of an authority shall be signed in the name and behalf of the authority by its chair or vice-chair, and the seal of the authority shall be affixed thereto and attested by its secretary or an assistant secretary. Notwithstanding the foregoing, facsimiles of the signatures of the officers may be imprinted or otherwise reproduced on any of the bonds in lieu of the officers manually signing the same so long as the related indenture or other authorizing proceedings provide for the manual authentication of the bonds by a trustee or paying agent, and provided further that a facsimile of the seal of the authority may be imprinted, or otherwise reproduced, on any of the bonds in lieu of being manually affixed thereto. If, after any of the bonds are so signed, whether manually or by facsimile, any officer shall, for any reason, vacate his or her office, the bonds so signed may nevertheless be delivered at any time thereafter as the act and deed of the authority.
*(Acts 1996, No. 96-320, p. 361, §5.)*
##### **§ 11-47-224** Bonds of an Authority - Payment Out of Revenues; Security for Payment; Mortgages, Security Interests, or Assignments as Security for Payment {#sec-11-47-224 omnilex-key=us-al-statutes--title-11--11-47-224}
(a) Any bonds issued by an authority shall be revenue bonds and shall be payable solely out of the revenues of the authority as may be designated in the proceedings of the board under which the bonds are authorized to be issued.
(b) As security for payment of the principal of and interest on any bonds issued or assumed by it, an authority may enter into a contract or contracts, and adopt resolutions or other proceedings containing provisions constituting a part of the contract or contracts with the holders of the bonds, pertaining to, among other things, the following:
(1) Pledging all or any part of the revenues of the authority to secure the payment of the bonds.
(2) Pledging, assigning, or mortgaging all or any part of the assets of the authority to secure the payment of the bonds.
(3) The creation of reserve, sinking, or other funds and the regulation and disposition thereof.
(4) The issuance of additional parity bonds.
(5) The procedure, if any, by which the terms of any contract with the holders of the bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which the consent may be given.
(6) Limitations on the amount of moneys to be expended by the authority for its operating expenses.
(7) Vesting in a trustee or trustees the property, rights, powers, and duties as the authority may determine.
(8) Defining the acts or omissions to act that shall constitute a default in the performance of the obligations and duties of the authority to the holders of the bonds and providing for the rights and remedies of the holders in the event of the default. Notwithstanding the foregoing, the rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this article.
(9) Any other matters, of like or different character, which in any way affect the security or protection of the holders of the bonds.
(c) Any mortgage of property granted by an authority, any security interest in property created by it, or any assignment or pledge of revenues or contract rights made by it, in each case to secure the payment of its bonds, shall be valid and binding from the time when the mortgage is granted, the security interest created, or the assignment or pledge is made, as the case may be, and the property so mortgaged, the property with respect to which the security interest is so created, and the revenues and contract rights so assigned or pledged shall immediately, or as soon thereafter as the authority obtains any right thereto or interest therein, be subject to the mortgage, security interest, assignment, or pledge, as the case may be, without physical delivery of any property, revenues, or contract documents covered thereby or any further act, and the lien of such a mortgage, security interest, assignment, or pledge shall be valid and binding against all persons having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the persons have actual notice thereof, from the time notice of the mortgage, security interest, assignment, or pledge is filed for record (1) in the office of the judge of probate in which the certificate of incorporation of the authority was filed for record and (2) in the case of any mortgage or security interest covering any tangible property, whether real, personal, or mixed, in the office of the judge of probate of the county in which the property is or is to be located pursuant to any agreement made by the authority with any person respecting the location and use of the property. The notice shall contain a statement of the existence of such a mortgage, security interest, assignment, or pledge, as the case may be, a description of the property, revenues, or contract rights subject thereto and a description of the bonds secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of the mortgage, security interest, assignment, or pledge. If the requirements of the preceding sentence are met, the notice may consist of (i) a summary statement prepared specially for the purpose of serving as the notice, (ii) an executed counterpart of any mortgage, security agreement, assignment, trust indenture, or other instrument granting the mortgage, creating the security interest, or making the assignment or pledge, as the case may be, or (iii) a certified copy of the resolution adopted by the board of the authority authorizing the mortgage, security interest, assignment, or pledge, as the case may be.
*(Acts 1996, No. 96-320, p. 361, §6.)*
##### **§ 11-47-225** Use of Proceeds of Borrowing; Application of Any Portion of Proceeds Not Needed for Original Purposes {#sec-11-47-225 omnilex-key=us-al-statutes--title-11--11-47-225}
(a) The principal proceeds derived from any borrowing made by an authority shall be used solely for the purpose or purposes for which the borrowing was authorized. If any bonds are issued for the purpose of financing costs of acquiring, constructing, improving, enlarging, and equipping a project, the costs shall be deemed to include the following:
(1) The cost of any land forming a part of the project.
(2) The cost of the labor, materials, and supplies used in the construction, improvement, or enlargement, including architectural and engineering fees and the cost of preparing contract documents and advertising for bids.
(3) The purchase price of, and the cost of installing, equipment for the project.
(4) The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities, and parking places in connection therewith.
(5) Legal, accounting, publishing, printing, fiscal, and recording fees, and expenses incurred in connection with the authorization, sale, and issuance of the bonds issued in connection with the project; bond discount, commission, or other financing charges; fees and expenses of financial advisers and planning and management consultants; the cost of any feasibility studies deemed necessary or advisable in connection with the issuance and sale of the bonds; the amount of any debt service reserve that the board deems necessary or advisable to be funded out of the proceeds from the sale of the bonds; premiums or other fees payable to secure bond insurance, one or more letters of credit or a comparable credit enhancement facility; and other expenses as shall be necessary or incident to the borrowing.
(6) Interest on the bonds for a reasonable period prior to the commencement of the construction and equipment of the project, or of any improvements or additions being financed, in whole or in part, out of the proceeds from the sale of the bonds, and during the period estimated to be required for the construction and equipment and for a period of not more than two years after the completion of the construction and equipment.
(7) The reimbursement to itself, to any authorizing subdivision or other county or municipality, or to any other public agency, authority, or body, or any funds advanced, to or for the benefit of the authority or any project owned by it, in anticipation of the issuance of bonds by the authority, including the amount of any interest paid or incurred on any borrowings made for the purpose of obtaining funds to advance to or for the benefit of the authority or the project.
(8) The amount of the reserves for the payment of debt service on the bonds and for the maintenance, repair, replacement, improvement, and enlargement of any of its projects and other properties as the board shall deem advisable.
(b) Any portion of the principal proceeds derived from the borrowing not needed for any of the purposes for which the borrowing was authorized to be made shall be applied and used:
(1) For retirement of the bonds issued in evidence of the borrowing.
(2) For payment of the interest thereon.
(3) For payment into one or more special funds created for payment of principal or interest, or both, or for the creation of reserves for the payment of debt service or for maintenance, repair, replacement, improvement, or enlargement.
(4) For any combination thereof, all as shall be specified in the indenture under which the bonds are issued or in the resolution of the board authorizing the borrowing.
*(Acts 1996, No. 96-320, p. 361, §7.)*
##### **§ 11-47-226** Loans, Donations, Performance of Services, Etc., by County, Municipality, or Other Political Subdivision, Etc., to Achieve Objectives of Article; Funding Agreements; Amount of Indebtedness Under Funding Agreements {#sec-11-47-226 omnilex-key=us-al-statutes--title-11--11-47-226}
(a) For the purpose of attaining the objectives of this article, any county, municipality, or other political subdivision, or public corporation, agency, or instrumentality of the state, a county, or municipality, may, upon such terms and with or without consideration, as it may determine, do any or all of the following:
(1) Lend or donate money to an authority or perform services for the benefit thereof.
(2) Donate, sell, convey, transfer, lease, or grant to an authority, without the necessity of authorization at any election of qualified voters, any property of any kind.
(3) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, which are necessary or convenient to aid and cooperate with an authority in attaining the objectives of this article.
(b) Without limiting the generality of the provisions of the preceding subsection (a), if the governing body of any subdivision finds and determines that the project or projects to be financed, in whole or in part, through the issuance by the authority of an issue or series of its bonds will benefit the residents of the subdivision, then the subdivision may, upon notice to the public by publication once a week for two consecutive weeks in a newspaper of general circulation in the subdivision, (i) appropriate and pledge, on a continuing basis, public moneys of the subdivision for the express purpose of paying all or a portion of the principal of and interest and premium, if any, on the bonds of the authority and (ii) enter into one or more contracts with the authority, or with the trustee under the indenture pursuant to which the bonds are issued, to evidence and specify the terms of the financial commitment undertaken by the subdivision, such a contract being herein called a “funding agreement.” Any funding agreement executed and delivered by a subdivision may be for a term that corresponds to the term of the bonds secured, in whole or in part, thereby and may contain the terms, provisions, covenants, and conditions as the governing body of the subdivision and the board deem to be appropriate. The contractual commitment of a subdivision pursuant to a funding agreement may be either a general obligation of the subdivision, secured by a pledge of its full faith and credit, or a limited obligation of the subdivision payable solely from specified sources. In either event, a subdivision may specifically pledge and assign for the payment of its funding agreement obligations the proceeds from any specific tax or taxes levied by the subdivision or the revenues from any revenue-producing properties owned, leased, or operated by the subdivision. In any instance where a funding agreement contains a pledge by a subdivision of any tax proceeds, the subdivision shall, during each fiscal year that the funding agreement shall be in effect, levy the tax or taxes so pledged and use so much of the proceeds therefrom as may be necessary to pay its funding agreement obligations. Any funding agreement executed and delivered by a subdivision may specify that, notwithstanding the actual debt service payable on the bonds secured thereby, the total amount payable pursuant to the agreement by the subdivision during any fiscal year shall not exceed a specified sum.
(c) In any instance in which (i) bonds of the authority are secured by funding agreements of more than one subdivision and (ii) each of the funding agreements specifies the maximum amount payable pursuant to its provisions in any particular fiscal year, the specified amount being herein called the “maximum annual contract obligation,” the amount of the resulting indebtedness of such a subdivision, for purposes of any limitation on indebtedness imposed by the Constitution of Alabama of 1901 or any other applicable provision of law, shall at any time be equal to the product of (A) the sum of the then outstanding principal amount of the bonds secured by the funding agreements and the amount of interest then accrued and unpaid thereon and (B) a fraction, the numerator of which shall be equal to the subdivision’s maximum annual contract obligation and the denominator of which shall be equal to the aggregate of the maximum annual contract obligations of all of the subdivisions that are parties to the funding agreements.
*(Acts 1996, No. 96-320, p. 361, §8; Acts 1997, No. 97-216, p. 331, §1.)*
##### **§ 11-47-227** Construction of Bonds as Negotiable Instruments {#sec-11-47-227 omnilex-key=us-al-statutes--title-11--11-47-227}
Bonds issued by an authority shall be construed to be negotiable instruments although payable solely from a specified or limited source.
*(Acts 1996, No. 96-320, p. 361, §9.)*
##### **§ 11-47-228** Exemption from Taxation {#sec-11-47-228 omnilex-key=us-al-statutes--title-11--11-47-228}
The property and income of an authority, all bonds issued by an authority, the interest on the bonds, conveyances by or to an authority, and leases, deeds, or indentures by or to an authority shall be exempt from all taxation in the state. All tangible personal property sold by an authority is expressly exempt from all state and local sales and use taxes imposed pursuant to law. An authority shall be exempt from all taxes levied by any county or municipality which has consented to and approved the project, or other political subdivision of the state, including, without limitation, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Acts 1996, No. 96-320, p. 361, §10; Act 2000-716, p. 1538, §1.)*
##### **§ 11-47-229** Exemption from State Laws Governing Usury or Prescribing or Limiting Interest Rates {#sec-11-47-229 omnilex-key=us-al-statutes--title-11--11-47-229}
Each authority shall be exempt from the laws of the state governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1996, No. 96-320, p. 361, §11.)*
##### **§ 11-47-230** Compliance with State Laws Governing Competitive Bidding {#sec-11-47-230 omnilex-key=us-al-statutes--title-11--11-47-230}
An authority and all contracts made by it shall comply with the laws of the state requiring competitive bids for any contract to be entered into by municipalities or public corporations including, without limitation, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1996, No. 96-320, p. 361, §12.)*
##### **§ 11-47-231** Bonds as Legal Investments {#sec-11-47-231 omnilex-key=us-al-statutes--title-11--11-47-231}
The bonds of an authority shall be legal investments in which the state and its agencies and instrumentalities, all counties, municipalities, and other political subdivisions of the state and public corporations organized under the laws thereof, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investments companies of any kind, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whosoever are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds in their control or belonging to them.
*(Acts 1996, No. 96-320, p. 361, §13.)*
##### **§ 11-47-232** Authority as Nonprofit Corporation {#sec-11-47-232 omnilex-key=us-al-statutes--title-11--11-47-232}
An authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of an authority, then any portion, as determined by the board, of the net earnings of an authority thereafter accruing may, in the discretion of the board, be paid to one or more of its authorizing subdivisions.
*(Acts 1996, No. 96-320, p. 361, §14.)*
##### **§ 11-47-233** Notice Respecting Issuance of Bonds; Limitation of Actions Contesting Validity of Bonds {#sec-11-47-233 omnilex-key=us-al-statutes--title-11--11-47-233}
Upon the adoption by the board of an authority of any resolution providing for the issuance of bonds, the authority shall cause a notice respecting the issuance of the bonds to be published once a week for two consecutive weeks in each county in which shall be located any project financed or in any way assisted by the issuance of the bonds, the publication in each county to be in a newspaper having general circulation therein. The notice shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the authority:
“________, a public corporation and instrumentality of the State of Alabama, on the _____ day of ________, authorized the issuance of $ _____ principal amount of bonds (or notes, as the case may be) of the public corporation for purposes authorized in the act of the Legislature of Alabama under which the public corporation was organized. Any action or proceedings questioning or contesting the validity of the bonds, or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before ________ (insert date determined in accordance with the provision of the next paragraph of this section).”
The date stated in the notice as the date on or before which any action or proceedings questioning or contesting the validity of the bonds referred to therein shall be commenced shall be a date at least 30 days after the date on which occurs the last publication of the notice necessary for it to have been published at least once in all counties in which it is required to be published. Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of the bonds, or the validity of any instruments securing the same, shall be commenced on or before the date determined in accordance with the preceding sentence and stated in the notice as the date on or before which the action or proceeding shall be commenced. After the date no right of action or defense shall be asserted questioning or contesting the validity of the bonds, or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of the bonds or the instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before the date.
*(Acts 1996, No. 96-320, p. 361, §15.)*
##### **§ 11-47-234** Eminent Domain {#sec-11-47-234 omnilex-key=us-al-statutes--title-11--11-47-234}
Neither an authority nor a participating subdivision in an authority shall have the power of eminent domain for a project under this article.
*(Acts 1996, No. 96-320, p. 361, §16.)*
##### **§ 11-47-235** Effect of Revenue Obligations on State of Alabama; Prohibition Against Use of State Funds to Retire Indebtedness {#sec-11-47-235 omnilex-key=us-al-statutes--title-11--11-47-235}
Revenue obligations issued by any public authority pursuant to this article shall not create an obligation or debt of the State of Alabama, and no state funds shall be used to retire the principal and interest of any indebtedness issued pursuant to this article.
*(Acts 1996, No. 96-320, p. 361, §17.)*
##### **§ 11-47-236** Application of Alabama Administrative Procedure Act to Rules Adopted by Authorities {#sec-11-47-236 omnilex-key=us-al-statutes--title-11--11-47-236}
The Alabama Administrative Procedure Act shall apply to rules adopted by authorities created pursuant to this article.
*(Acts 1996, No. 96-320, p. 361, §18.)*
##### **§ 11-47-237** Application of State Ethics Act to Members of Authorities {#sec-11-47-237 omnilex-key=us-al-statutes--title-11--11-47-237}
The State Ethics Act shall apply to members of authorities created pursuant to this article.
*(Acts 1996, No. 96-320, p. 361, §19.)*
##### **§ 11-47-238** Relationship of Article to Other Laws {#sec-11-47-238 omnilex-key=us-al-statutes--title-11--11-47-238}
The provisions of this article are cumulative and shall not be deemed to repeal existing laws.
*(Acts 1996, No. 96-320, p. 361, §20.)*
##### **§ 11-47-239** Construction of Article to Effect Its Purpose {#sec-11-47-239 omnilex-key=us-al-statutes--title-11--11-47-239}
The provisions of this article shall be liberally construed to effect its purpose.
*(Acts 1996, No. 96-320, p. 361, §21.)*
#### **Article 10** Off-Street Parking Facilities
##### **§ 11-47-240** Definitions {#sec-11-47-240 omnilex-key=us-al-statutes--title-11--11-47-240}
When used in this article, unless the context plainly indicates otherwise, the following words and terms shall have the following meanings ascribed to them:
(1) THE CITY. A city subject to this article.
(2) GOVERNING BODY. The body in which the general legislative power of the city is vested.
(3) PARKING FACILITY. Any building, structure, land, right-of-way, equipment, or facility used or useful in connection with the construction, enlargement, development, maintenance, or operation of any area or building for off-street parking of motor vehicles.
*(Acts 1977, No. 300, p. 401, §2.)*
##### **§ 11-47-241** Powers of Certain Cities as to Planning, Establishment, Operation, Etc., of Parking Facilities {#sec-11-47-241 omnilex-key=us-al-statutes--title-11--11-47-241}
Any city in this state having a population of 34,000 or more according to the last federal decennial or any subsequent federal census is hereby authorized:
(1) To plan, establish, develop, acquire, construct, enlarge, improve, maintain, equip, operate, regulate, and protect parking facilities;
(2) To finance the cost of parking facilities in whole or in part by the issuance of bonds, warrants, notes, or other evidences of indebtedness;
(3) To pledge to the payment thereof its full faith and credit and any taxes, licenses, or revenues which the city may then be authorized to pledge to the payment of bonded or other indebtedness;
(4) To lease or let parking facilities or any one or more of them to such tenant or tenants, for such period and such compensation or rental and on such conditions as the governing body may prescribe;
(5) To fix, establish, collect, and alter parking fees, tolls, rents, and other charges for the use of any parking facility;
(6) To make and enforce rules and regulations governing the use of any parking facility owned or controlled by the city; and
(7) To execute such contracts and other instruments and to take such other action as may be necessary or convenient in connection with parking facilities.
*(Acts 1977, No. 300, p. 401, §3.)*
##### **§ 11-47-242** Applicability of Provisions of Article {#sec-11-47-242 omnilex-key=us-al-statutes--title-11--11-47-242}
This article shall apply to each city of the State of Alabama having a population of 34,000 or more according to the last or any subsequent federal decennial census and to no other city.
*(Acts 1977, No. 300, p. 401, §1.)*
##### **§ 11-47-243** Construction of Article {#sec-11-47-243 omnilex-key=us-al-statutes--title-11--11-47-243}
The provisions of this article are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with the provisions of this article.
*(Acts 1977, No. 300, p. 401, §4.)*
#### **Article 11** Beach Projects of Coastal Municipalities
##### **§ 11-47-250** Definitions {#sec-11-47-250 omnilex-key=us-al-statutes--title-11--11-47-250}
When used in this article, the following words and terms shall have the following meanings:
(1) BEACH. A sandy shoreline area abutting to the Gulf of Mexico, characterized by low relief, generally of gentle slope, and some vegetation, extending into the abutting waters to a distance 1,000 feet seaward of the mean high tide line.
(2) BEACH PROJECT. The placement and maintenance of sand and associated sand stabilization structures, vegetation, vegetation irrigation systems, and access structures on a coastal beach for the purposes of maintaining or restoring the beach and providing storm protection for upland properties.
(3) COASTAL BEACH. Any beach that is located wholly or partially within the corporate limits of a coastal municipality and that abuts the waters of the Gulf of Mexico.
(4) COASTAL MUNICIPALITY. A municipal corporation whose corporate limits include or abut the waters of the Gulf of Mexico.
(5) GOVERNING BODY. The body in which the general legislative power of a coastal municipality is vested.
*(Act 2000-676, p. 1365, §1.)*
##### **§ 11-47-251** Powers of Coastal Municipalities {#sec-11-47-251 omnilex-key=us-al-statutes--title-11--11-47-251}
(a) Any coastal municipality may do any of the following:
(1) Plan, establish, develop, construct, enlarge, improve, maintain, regulate, and protect beach projects, including, without limitation, joint beach projects with one or more other coastal municipalities.
(2) Finance the cost of beach projects in whole or in part by the issuance of bonds, warrants, notes, or other evidence of indebtedness.
(3) Pledge to the payment thereof its full faith and credit and any taxes, licenses, or revenues which the coastal municipality may then be authorized to pledge to the payment of bonded or other indebtedness.
(4) Make and enforce rules and regulations governing the use of and activities upon the areas included within any beach project established by the coastal municipality with the concurrence of the Commissioner of the Department of Conservation and Natural Resources, acting through the Lands Division of the department.
(5) Acquire or condemn lands or rights, easements, or interests therein for use in the establishment and maintenance of beach projects in accordance with Article 7 of this chapter or Chapter 1A of Title 18.
(6) Execute contracts and other instruments and take such other action as may be necessary or convenient in connection with beach projects.
(b) Nothing in this section shall be construed to limit or repeal the powers and authority otherwise granted to a municipal corporation under Chapter 48 of this title.
*(Act 2000-676, p. 1365, §1.)*
##### **§ 11-47-252** Requirements for Construction of Beach Project {#sec-11-47-252 omnilex-key=us-al-statutes--title-11--11-47-252}
A coastal municipality may not begin construction of a beach project until each of the following requirements have been satisfied:
(1) The governing body of the coastal municipality, after a public hearing held on not less than 30 days’ public notice, has identified the following by adoption of a survey, map, metes and bounds description, or plane coordinate references.
a. The location of the mean high tide line for the area in which the beach project is proposed to be located.
b. The location of the limits of the landward and seaward extensions of the proposed beach project relative to both the mean high tide line and the construction control line, if any, then established under the regulations of the Alabama Department of Environmental Management, the ordinances of the coastal municipality, or both.
(2) The Commissioner of the Department of Conservation and Natural Resources, acting through the Lands Division of the department, has issued a permit ratifying and confirming the location of the mean high tide line and authorizing the construction and maintenance of the proposed beach project pursuant to Section 9-15-56.
(3) To the extent that the proposed beach project is to be located landward of the mean high tide line, the coastal municipality has obtained by conveyance or exercise of powers of eminent domain any necessary rights to utilize the land lying between the mean high tide line and the limits of the landward extension of the beach project.
(4) The governing body of the coastal municipality has caused to be recorded with the office of the judge of probate in the county or counties within which the beach project is to be located a certified copy of the survey, plat, map, metes and bounds description, or plane coordinate references identifying the location of the mean high tide line within the area of the beach project as ratified and confirmed by the commissioner.
*(Act 2000-676, p. 1365, §1.)*
### **Chapter 48** Public Improvements and Assessments Generally
#### **Article 1** General Provisions
##### **§ 11-48-1** Short Title {#sec-11-48-1 omnilex-key=us-al-statutes--title-11--11-48-1}
This article may be referred to and designated as “The Municipal Public Improvement Act.”
*(Acts 1927, No. 639, p. 753, §2.)*
##### **§ 11-48-2** Definitions {#sec-11-48-2 omnilex-key=us-al-statutes--title-11--11-48-2}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) COUNCIL. The council, mayor and aldermen, or other governing body.
(2) MUNICIPALITY. Any city or town now or hereafter created, except where clearly restricted.
*(Code 1907, §1360; Code 1923, §2175; Acts 1927, No. 639, p. 753, §§1, 4; Code 1940, T. 37, §§512, 514.)*
##### **§ 11-48-3** Applicability of Provisions of Article {#sec-11-48-3 omnilex-key=us-al-statutes--title-11--11-48-3}
The provisions of this article shall apply to all municipalities of this state.
*(Acts 1927, No. 639, p. 753, §1; Code 1940, T. 37, §512.)*
##### **§ 11-48-4** General Powers of Municipalities as to Public Improvements {#sec-11-48-4 omnilex-key=us-al-statutes--title-11--11-48-4}
All cities or towns in this state may design or cause to be designed, contract for and execute or cause to be executed a contract for the construction of the following named improvements or reimprovements to the streets or any portions thereof and the following named sewers or sewer systems and the following named water and gas mains and service connections. All cities or towns in this state having a population of 60,000 inhabitants or more according to the most recent federal census may design or cause to be designed, contract for and execute or cause to be executed a contract for the construction of the following named drainage improvements or drainage systems or reclamation systems and the filling in of swamps or inundated or overflowed or submerged lands within the limits of such municipality. All cities or towns in this state may design or cause to be designed, contract for and execute or cause to be executed a contract for the construction of the following named ornamental lighting systems or white way systems of lighting and also for the construction, acquisition, improvement, and extension of seawalls, dikes, levees, and embankments within the limits of the municipality for protection against streams, rivers, waters, floods, tides, seas, and waves in such manner and with such material as such city or town may prescribe. Each city or town in this state may cause the cost and expense of all or any part of any improvement or reimprovement which it is authorized to make under the provisions of this section to be assessed against the property abutting on said street, avenue, alley, highway, or other public place so improved or upon or along which such ornamental lighting system or white way is constructed or served by said water and gas mains and service connection or drained, served or benefited by said sewer or sewers or drained by such drainage system or reclaimed or elevated by such reclamation system or by the filling in of the same or protected or improved by such seawalls, dikes, levees or embankments to the extent of the increased value of said property by reason of the special benefits derived from said improvements.
(1) The opening, widening and extending of streets, avenues, alleys, highways and other public places and construction or reconstruction of improvements to streets, avenues, alleys, highways or other public places by filling, grading, leveling, graveling, slagging, cherting, macadamizing, paving, sidewalking, curbing, guttering, draining, or otherwise improving any street, avenue, alley, highway, or other public place; provided, that the cost and expense or any part thereof may be assessed against the property abutting on the portion of such street so opened, widened, extended or improved to the extent of the increased value thereof by reason of the special benefits derived therefrom.
(2) The construction or reconstruction of sanitary sewers or sanitary sewer systems, including sewage treatment or sewage disposal plants; provided, that the cost and expense or any part thereof may be assessed against the property drained, served, or benefited by said sanitary sewers or sanitary sewer systems to the extent of the increased value thereof by reason of the special benefits derived therefrom.
(3) The construction or reconstruction of storm water sewers, main trunk storm sewers and storm water sewer systems; provided, that the cost and expense or any part thereof may be assessed in fair proportion against the district and against every piece of property therein drained, served, or benefited by said storm water sewers, main trunk storm water sewers or storm water sewer system to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(4) The construction or reconstruction of combined sanitary and storm water sewers or combined sanitary and storm water sewer systems, including sewage treatment or sewage disposal plants; provided, that the cost and expense or any part thereof may be assessed against the property within said corporate limits, drained, served, or benefited by said sewers or sewer systems, including sewage treatment or disposal plants, to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(5) The construction or reconstruction of storm water sewers or drains or lateral storm sewers in connection with the improvement or reimprovement of streets for the purpose of properly draining said streets and the property abutting thereon; provided, that the cost and expense or any part thereof of said storm water sewers or drains or lateral storm sewers may be assessed against the property abutting on the portions of said streets so drained, served or benefited to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(6) The construction or reconstruction of outlets for such sewers or sewer systems, either sanitary, storm, water, or combined, including sewage treatment and sewage disposal plants, whether within or without the corporate limits; provided, that the cost and expense or any part thereof may be assessed against the property, within or without said corporate limits, drained, served, or benefited by said sewers or sewer system outlets, including sewage disposal plants, to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(7) The construction or reconstruction of water and gas mains in the streets and of water and gas service connections from the publicly or privately owned water and gas main located in any street, avenue, alley, highway, or other public place to the property line of property abutting on such street; provided, that the cost and expense or any part thereof of said water and gas mains and water and gas service connection or connections may be assessed against the property so served or connected to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(8) In cities having a population of 60,000 or more according to the most recent federal census, the construction or reconstruction of a system or systems of drainage of swamps or inundated or overflowed land within the limits of such municipality, and the filling in, elevating or reclaiming of such lands; provided, that the cost and expense thereof or any part of such cost and expense may be assessed in fair proportion against the property drained, served or benefited or increased in value or filled in, elevated or reclaimed by such improvement, to the extent of the increased value thereof by reason of the special benefits derived from such improvement.
(9) The construction, acquirement, improvement, reimprovement, or extension of seawalls, dikes, levees, or embankments within the limits of such municipality for the purpose of protection against storms, rivers, waters, floods, waves, tides, or seas; provided, that the cost and expense of such improvement or any part thereof may be assessed against the property within the corporate limits of such municipality protected or specially benefited by such improvement to the extent of the increased value of such property by reason of the special benefits derived from such improvement.
*(Code 1907, §1359; Acts 1911, No. 273, p. 371; Code 1923, §2174; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §513.)*
##### **§ 11-48-5** Adoption of Ordinance or Resolution Describing Proposed Improvement, Ordering Preparation of Plans, Specifications, Etc., Thereof, Etc {#sec-11-48-5 omnilex-key=us-al-statutes--title-11--11-48-5}
(a) When the council of any city or town shall determine to open, widen, extend, construct, or improve any street, alley, avenue, sidewalk, highway, or other public place or to make any other public improvements or undertake any work authorized by the provisions of this article, the cost of which or any part thereof it is proposed to assess against the property abutting on, served, illuminated, drained, elevated, reclaimed, protected, or otherwise specially benefited or increased in value by said improvements, it shall adopt an ordinance or resolution to that effect, describing the nature and extent of the work, the general character of the materials to be used and the location and terminal point thereof and the streets, avenues, alleys, or other highways or parts thereof embraced therein, and it shall direct that full details, drawings, plans, specifications, and surveys of said work and estimates be prepared by the city or town engineer or such other person as may be designated in such ordinance or resolution, or the said council may adopt plans for such work already prepared.
(b) When the contemplated improvement is a sanitary sewer or sewers or a sanitary sewer system, including outlets and sewage treatment and sewage disposal plants, such ordinance or resolution shall describe the territory or area within said municipality to be drained, served or benefited by such sewer or sewers or sewer system and define the same by naming the streets, avenues, alleys or other lines by which the same is bounded or shall describe the frontage of the property abutting on and drained, served or benefited by such sewer or sewers or sewer system and define the same.
(c) When the contemplated improvement is a storm water sewer or sewers or main trunk storm water sewers or a storm water sewer system, such ordinance or resolution shall describe the territory or area to be drained, served or benefited by such storm water sewers or main trunk storm water sewers or storm water sewer systems and define the same by naming the streets, avenues, alleys or other lines by which the same is bounded; provided, that when the improvement contemplated is a storm water sewer or sewers or drains and lateral storm water sewers in connection with the improvement of streets for the purpose of properly draining, serving or benefiting said streets and the property abutting thereon, such ordinance or resolution may define the area to be drained, served, or benefited by each of such sewers as the property fronting on each portion of the street or streets provided to be improved, actually drained, served, or benefited by each of said storm water sewers or drains or lateral storm water sewers.
(d) When the contemplated improvement is the construction of water or gas mains or of water and gas service connections, said ordinance or resolution shall name the property abutting on the portion of the streets, avenues, or alleys in which said water or gas mains or water or gas service connections are to be constructed and which is to be served or benefited by said improvement.
(e) When the contemplated improvement is the construction of a system for draining swamps or for the draining of swamps or inundated or overflowed or submerged land within the limits of any municipality in this state having a population of 60,000 inhabitants or more according to the most recent federal census, or the filling in, elevating, or reclaiming of any submerged, inundated or overflowed land within the limits of such municipality, such ordinance or resolution shall describe the territory or area to be drained, served, benefited, elevated, or reclaimed by such improvement.
(f) When the contemplated improvement is the construction, acquirement, improvement, reimprovement, or extension of seawalls, dikes, levees, or embankments for the purpose of protection against storms, rivers, waters, floods, waves, tides, or seas, such ordinance or resolution shall define the nature and extent of the work, the general character of the materials to be used and the location of terminal points of such seawall.
(g) When the contemplated improvement is the construction of an ornamental system of lighting or white way system, said ordinance shall describe the nature and extent of the work, the general character of the materials to be used and the streets, avenues, alleys, and other highways and public places to be so lighted and abutting upon the streets so to be lighted with such ornamental lighting system.
(h) Such ordinance or resolution may set out and describe certain alternative types of paving and other materials, and the council may require advertisements for proposals on the various types enumerated, and the final selection by the council of the type or types of said pavement and other materials from among the alternatives so enumerated shall, in that event, be postponed until the bids shall have been received.
*(Code 1907, §1361; Code 1923, §2176; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §515.)*
##### **§ 11-48-6** Filing of Plans, Specifications, Etc., of Improvements in Office of Engineer for Public Inspection; Establishment of Date for Hearing of Objections as to Improvements {#sec-11-48-6 omnilex-key=us-al-statutes--title-11--11-48-6}
Such details, drawings, plans, specifications, surveys, and estimates shall, when completed, be placed on file not later than two weeks prior to the date of the meeting provided for in this section and Section 11-48-8 in the office of the city or town engineer or other officer designated in such ordinance or resolution, where property owners who may be affected by such improvement may see and examine the same, and the said ordinance or resolution shall appoint a time when the council will meet, which shall be not less than two weeks after the date of the first publication of said ordinance or resolution, to hear any objections or remonstrances that may be made to said improvement, the manner of making the same or the character of the material or materials to be used.
*(Code 1907, §1362; Code 1923, §2177; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §516.)*
##### **§ 11-48-7** Publication of Ordinance or Resolution; Notice to Certain Property Owners of Ordinance or Resolution {#sec-11-48-7 omnilex-key=us-al-statutes--title-11--11-48-7}
Said ordinance or resolution must be published once a week for two consecutive weeks in some newspaper published in said city or town, and, if no newspaper is published therein, it may be published either in a newspaper of general circulation in said municipality or by posting for two weeks in three public places in such city or town.
A copy of said ordinance or resolution shall also be sent, by registered or certified mail, postage prepaid, to the persons last assessed for city or town taxation, the property of whom may be assessed for said improvements at their last known addresses, said notices to be so mailed not less than 10 days before the meeting of the city council provided for in Section 11-48-8. The failure of any official charged with the duty of sending such notice to send the same or the failure of any owner of property to receive such notice, if sent by registered or certified mail as provided in this section, shall not invalidate or in anywise affect any assessment made under the provisions of this article.
*(Code 1907, §1363; Code 1923, §2178; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §517; Acts 1967, No. 742, p. 1595.)*
##### **§ 11-48-8** Hearing Upon Objections as to Proposed Improvement; Amendment, Modification, Rescission, Etc., of Ordinance or Resolution; Actions Ratified and Confirmed Where Prior to Ordinance, Resolution or Hearing {#sec-11-48-8 omnilex-key=us-al-statutes--title-11--11-48-8}
(a) At the meeting, to be held as provided for as specified in Section 11-48-6, or at a place and time to which the same may be adjourned, all persons whose property may be affected by the proposed improvement may appear in person or by attorney or by petition and object or protest against said improvement, the material to be used or the alternative types of material or any of them from which selection is later to be made, if any, and the manner of making the same, and said council shall consider such objection and protest and may confirm, amend, modify, or rescind the original ordinance or resolution.
But if objection to the proposed improvement is made by a majority in frontage of the property owners to be affected thereby when the proposed improvement is to be assessed against the property fronting or abutting any street, avenue, or alley or by a majority in area of the property owners when the proposed improvement is to be assessed against the property comprising a sewerage, drainage, or other improvement district, the improvement shall not take place unless ordered by a two-thirds vote of those elected to the council.
(b) In all cases where any city or town has undertaken a program of public improvements, the cost of which was or is to be assessed in whole or in part against the property drained, served, or benefited by such improvements, the action of such city or town in receiving construction bids, awarding and executing a construction contract or contracts pursuant to such bids, and commencing performance thereunder prior to the adoption of the improvement ordinance or resolution and prior to the holding of the protest meeting required by subsection (a) is hereby ratified and confirmed, and the actions of such cities or towns in proceeding with the program of public improvements and assessing the cost thereof or any part of such cost against the property drained, served, or benefited by the improvements, which costs are determined in part by reference to the amounts paid under any such contract or contracts, are hereby ratified and confirmed; provided that, before any such assessments are or were made final the appropriate improvement ordinance or resolution was adopted and the required protest meeting or hearing was convened, held, and conducted in the manner required by law.
This subsection shall not apply to any such contract, the validity of which has been, prior to the adoption hereof, successfully challenged in a court of competent jurisdiction by judgment entered prior to July 30, 1979, or to any contract when litigation relating to any such contract is pending on July 30, 1979.
*(Code 1907, §1364; Code 1923, §2179; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §518; Acts 1979, No. 79-463, p. 846.)*
##### **§ 11-48-9** Costs of Proposed Improvements Specified; Payment of Portion Thereof by Council {#sec-11-48-9 omnilex-key=us-al-statutes--title-11--11-48-9}
The council may pay out of the general funds of the city or town or any special fund that may be provided for the purpose such portion of the cost of the proposed improvement as it may deem proper.
The cost of any improvement contemplated by this article shall include the expense of the preliminary and other surveys, the inspection and superintendence of the work, the preparation, publication, and mailing of the notices, resolutions, and ordinances required by this article, the cost of construction, the printing of bonds, the interest on money borrowed during construction, or on bonds when bonds have been issued in anticipation of the collection of assessments, the preparation of proceedings authorizing the issuance of notes or bonds under the provisions of this article, and the rendition of the approving opinions with respect thereto and any other expenses necessary for the completion of such improvement.
*(Code 1907, §1365; Acts 1909, No. 200, p. 197; Code 1923, §2180; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §519; Acts 1953, No. 849, p. 1141.)*
##### **§ 11-48-10** When Council to Establish Grade of Street, Alley, Sidewalk, Etc., to Be Improved {#sec-11-48-10 omnilex-key=us-al-statutes--title-11--11-48-10}
Before the passage of the final resolution or ordinance to make any improvement on any street, avenue, alley, or sidewalk, the cost of which or any part thereof is to be assessed to the abutting property, if the grade of such street, avenue, alley, or sidewalk has not been established or if said improvement necessitates a change of grade, the council shall, by ordinance, fix and establish the grade of such street, avenue, alley, or sidewalk about to be improved and also the grade of the curb on each side thereof.
*(Code 1907, §1366; Code 1923, §2181; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §520.)*
##### **§ 11-48-11** Notice, Advertisement and Letting of Contract for Improvements {#sec-11-48-11 omnilex-key=us-al-statutes--title-11--11-48-11}
(a) If the council shall finally order the making of the proposed improvement or improvements, notice shall be given asking for bids for such work, which notice shall describe in a general way the character and approximate quantities of such work and the types of materials, including alternates, if any, to be employed and shall be published once a week for two consecutive weeks in a newspaper published in said city or town or, if there is no newspaper published in said city or town, in a newspaper of general circulation therein. The date for receiving bids as set out in said notice shall be not earlier than two weeks after the date of first publication of said notice.
The said municipal authorities must let the contract to the lowest responsible bidder; provided, that if the lowest responsible bidder has not bid a satisfactory price, the council may reject all bids and readvertise for bids in the same manner as hereinabove provided. The said municipal authorities may, by order, impose further conditions upon bidders with regard to bonds and surety for the faithful completion of such work according to contract or for any other purpose mentioned in the specifications. Surety bond for the faithful completion of said work shall be required, where same or any part thereof is let out by contract, in an amount not less than 50 percent of the estimated total of each contract.
(b) Notwithstanding the provisions of subsection (a) of this section, the city or town may elect
(1) To construct the said improvements or furnish labor or material or both for the same without asking for bids; or
(2) To contract with the State of Alabama or any of its departments or agencies for construction of the said improvements or the furnishing of labor, materials, and services or any thereof for all or part of the said improvements.
In the event that the city or town makes any such election, then the provisions of subsection (a) of this section requiring the city or town to ask for bids from contractors and to publish a notice with respect thereto shall not be applicable to any work of construction to be performed by the city or town or to any labor and material or either to be furnished by the city or town or to any work of construction, labor, materials, or services that are to be supplied by the state pursuant to any contract between the city or town and the state or any of its departments or agencies.
*(Code 1907, §1367; Code 1923, §2182; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §521; Acts 1965, No. 883, p. 1662.)*
##### **§ 11-48-12** City or Town Engineer, Etc., to Supervise Work, Appointment of Engineer, Etc {#sec-11-48-12 omnilex-key=us-al-statutes--title-11--11-48-12}
All work done or improvements made under the provisions of this article shall be done under the supervision of the city or town engineer or other superintendent appointed for that purpose by the council of such city or town; provided, that the city or town engineer or other superintendent so appointed shall not be related by blood or by marriage to any contractor to whom work is awarded under the terms of Section 11-48-11 or, if said contractor is a corporation, to any stockholder thereof. Said city or town engineer or other superintendent so appointed shall not be interested in or have any share in the proceeds of any construction contract or any contract for the sale of materials to be employed in said work nor be a stockholder in the company selling said materials, nor shall said engineer or other superintendent so appointed be employed, directly or indirectly, by any parties having an interest in the proceeds of any such construction or sale of contract.
*(Code 1907, §1368; Code 1923, §2183; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §522.)*
##### **§ 11-48-13** Council to Accept or Reject Work, Etc., for Municipality {#sec-11-48-13 omnilex-key=us-al-statutes--title-11--11-48-13}
In case of any controversy or dispute, the council shall be invested with sole and exclusive power to determine whether any improvement constructed under the provision of this article has been completed in accordance with the terms of the contract therefor and to accept or reject such work on the part of the municipality.
*(Code 1907, §1369; Code 1923, §2184; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §523.)*
##### **§ 11-48-14** Assessment of Costs of Improvements Against Property Abutting or Benefited by Improvements Authorized Generally {#sec-11-48-14 omnilex-key=us-al-statutes--title-11--11-48-14}
(a) If any such improvement is finally ordered and constructed, the council shall have power and authority, after the completion and acceptance thereof, to assess the cost of constructing said improvements or any part thereof upon or against the property abutting on any street, avenue, alley, highway, or other public place so opened, widened, improved, lighted, served, or drained or against the property drained, protected or benefited by such improvement to the extent of the increased value of such property by reason of the special benefits derived from such improvements.
(b) If the construction or reconstruction of a system or systems of drainage of swamps or inundated or overflowed lands within the limits of any municipality having a population of 60,000 or more inhabitants according to the most recent federal census, is finally ordered and constructed, the council of said city shall have power and authority, after the completion and acceptance thereof, to assess the cost thereof or any part of the cost thereof upon and against the property elevated, filled, reclaimed, drained, or benefited by such improvement to the extent of the increased value of such property by reason of the special benefits derived from such improvements.
*(Code 1907, §1370; Code 1923, §2185; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §524.)*
##### **§ 11-48-15** Assessment Against Lands Purchased by State at Sale for Nonpayment of Taxes of Costs of Street Improvements and Sewers Authorized; Effect of Redemption or Sale of Said Lands {#sec-11-48-15 omnilex-key=us-al-statutes--title-11--11-48-15}
Any and every city or town shall have the power to assess for the cost of street improvements and sewers any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes, and where any such assessment is made against such lot or lots, parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem or sale thereof by the state shall not operate to discharge or in any manner affect the lien of such city or town for such assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied whether prior to or subsequent to a sale to the state for the nonpayment of taxes shall take the same subject to such assessment.
*(Acts 1953, No. 856, p. 1146.)*
##### **§ 11-48-16** Manner of Assessment of Costs of Improvements Generally - Sewers, Swamp Drainage, Seawalls, Levees, Etc {#sec-11-48-16 omnilex-key=us-al-statutes--title-11--11-48-16}
(a) When the improvement consists of a sanitary or storm water sewer or sewers or a sanitary or storm water sewer system, including sewage treatment or sewage disposal plants, the cost of any part thereof may be assessed in fair proportion against the frontage of the property drained by said sewer system or against all the lots or parcels of land lying within the district drained, served, or benefited, but the assessment shall not exceed the increased value of such property by reason of the special benefits derived from the improvement.
(b) When the improvement consists of the draining of swamps or the elevating, filling, reclamation, or draining of submerged, inundated, or overflowed land, then the council shall have the power and authority, after the completion and acceptance of such improvement, to assess the cost thereof or any part thereof upon or against the property so drained, elevated, or reclaimed and specially benefited thereby to the extent of the increased value of such property by reason of the special benefits derived by such property from such improvement.
(c) When such improvement consists of the construction of seawalls, dikes, levees, embankments, or other protection against seas, waves, storms, floods, waters, or rivers, then the council shall have power and authority, after the completion and acceptance thereof, to assess the cost of constructing said improvement or any part thereof upon or against the property abutting on such improvement and all other property protected or specially benefited thereby to the extent of the increased value of such property by reason of the special benefits derived by such property from such improvement.
*(Code 1907, §1371; Code 1923, §2186; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §525.)*
##### **§ 11-48-16.1** Assessment of Charge Against Landowner Seeking to Connect to Sewer {#sec-11-48-16.1 omnilex-key=us-al-statutes--title-11--11-48-16.1}
(a) If a landowner, whose property has not previously been assessed a fee for the public improvement of sanitary sewers or the sanitary sewer system, requests to be connected to the existing sanitary sewer after the term of a public improvement ordinance relating to that improvement has expired, the governing body of any city or town shall, if the improvement has sufficient capacity to add the user, assess a charge against the property to be drained, served, or benefitted by the sanitary sewers or sanitary sewer system to the extent of the increased value to the property by reason of the special benefit derived from the connection.
(b) The assessment shall be computed at the same rate, if readily available, for property originally assessed under the public improvement ordinance establishing the sanitary sewers to which the landowner desires to connect. If the governing body determines the rate is not readily available, the assessment shall be as determined by the governing body, but shall not be in excess of either (1) the reasonable front foot cost of the sewer at current construction costs under similar circumstances or (2) the increased value to the property by reason of the special benefit derived from the connection.
(c) The fee for the connection shall be assessed prior to a plumbing permit being issued to perform the connection. Payment for the assessment shall be allowed pursuant to Section 11-48-48, and arrangements for the payment shall be made prior to the issuance of any required plumbing permit for the connection.
(d) The provisions of this section are cumulative and shall not be construed to repeal or supersede any provisions of any local law or general law of local application relating to assessment of property owners by cities or towns for public improvements.
*(Acts 1995, No. 95-379, p. 774, §§1, 2.)*
##### **§ 11-48-17** Manner of Assessment of Costs of Improvements Generally - Improvements of Intersections of Streets, Alleys, Etc {#sec-11-48-17 omnilex-key=us-al-statutes--title-11--11-48-17}
Where the intersections of streets, avenues, alleys, or other highways are improved, the cost of improving any intersection or any part thereof may be assessed against the lots or parcels of land abutting on each of the streets, avenues, alleys, or other highways so intersecting for a half block in each direction therefrom; provided, that for the purpose of computing assessments under this section, no block shall be considered as extending more than 1,000 feet from any intersection so improved.
*(Code 1907, §1372; Code 1923, §2187; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §526.)*
##### **§ 11-48-18** Manner of Assessment of Costs of Improvements Generally - Sidewalk Improvements {#sec-11-48-18 omnilex-key=us-al-statutes--title-11--11-48-18}
In the case of sidewalk improvements, including curbing and guttering, the costs or any part thereof of the improvement of the street or avenue corner may be assessed against the lots abutting on or nearest said improvement, and the entire cost or any part thereof of the sidewalks improvement, including curbing and guttering, at the intersection of any alley with a street or avenue or other highway may be assessed in fair proportion against the respective lots or parcels of land abutting or cornering on the alley at such intersection, but in no case shall the assessment against any lots or parcels of land be greater than the increased value of such lots or parcels of land by reason of the special benefits derived from such improvement.
*(Code 1907, §1373; Code 1923, §2188; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §527.)*
##### **§ 11-48-19** Assessment of Costs of Improvements Against Railroads {#sec-11-48-19 omnilex-key=us-al-statutes--title-11--11-48-19}
If there is a street, electric, or other railroad track or tracks on any street or highway improved or reimproved under this article, the cost of such improvement, except storm water and sanitary sewers, between the tracks and the rails of the tracks and, in case there are two or more tracks, the space between such tracks and 18 inches on each side of the tracks, including switches and turnouts, shall be paid by the owner of the railroad and shall be assessed against and form a lien on said railroad and the property connected therewith and, in the event that storm water sewers are constructed which drain, serve or benefit the streets or avenues or rights-of-way on which a street, electric, or other railroad is located, whether the same is a continued or separate system, there shall be assessed against such railroad a fair and just proportion of the cost of construction of such sewer, to be determined by the council, and such assessment shall be a lien like other assessments and may be collected in like manner, and the council may require the owners of such street railroad or other railroad to prepare or construct its tracks for the receipt of such paving or other improvements in a manner satisfactory to the council.
In the event that seawalls or other protection against waves, storms and floods are constructed which protect or benefit streets or avenues or rights-of-way on which a street, electric, or other railroad is located, whether the same is a continued or separate system, there shall be assessed against such railroad a fair and just proportion of the cost of construction of such seawall or other protection against waves, storms, and floods, to be determined by the council, and such assessment shall be a lien like other assessments and may be collected in like manner; provided, however, that such assessments shall not exceed the increased value of such railroad by reason of the benefits received by such railroad from the construction of such seawall.
*(Code 1907, §1374; Code 1923, §2189; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §528.)*
##### **§ 11-48-20** Preparation, Etc., of List of Property Owners to Be Assessed for Improvement {#sec-11-48-20 omnilex-key=us-al-statutes--title-11--11-48-20}
When any improvement made under the provisions of this article is completed, the mayor or other chief executive officer shall cause to be prepared a roll or list showing the names of the property owners and opposite each name a description of each lot or parcel of land proposed to be assessed for such improvement belonging to such owner or owners and the amount proposed to be assessed against each lot or parcel of land.
*(Code 1907, §1375; Code 1923, §2190; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §529.)*
##### **§ 11-48-21** Entry of List in Assessment Book for Local Improvements {#sec-11-48-21 omnilex-key=us-al-statutes--title-11--11-48-21}
Such list shall be entered in a well-bound book or loose-leaf book firmly bound, prepared for that purpose, and shall contain appropriate columns in which payments may be credited and the lien of the assessment satisfied by the proper officers of the municipality. Said book shall be known as the “assessment book for local improvements” and shall be a public record, and no error or mistake in regard to the name of the owner shall be held to invalidate any assessment, and it shall be sufficient if the name of the person in whose name such property was last assessed for taxes for state taxation is shown in said book.
*(Code 1907, §1376; Code 1923, §2191; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §530.)*
##### **§ 11-48-22** Delivery of Assessment Book to City or Town Clerk; Publication of Notice as to Delivery and Inspection of Book, Etc {#sec-11-48-22 omnilex-key=us-al-statutes--title-11--11-48-22}
After the completion of the proper entries of each improvement, said book shall be delivered to the city or town clerk, who shall thereupon give notice by publication one time in some newspaper published in said municipality or of general circulation therein that said assessment roll or list has been delivered to him and is open for inspection in the office of the person authorized to make collection of said assessments.
*(Code 1907, §1377; Code 1923, §2192; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §531.)*
##### **§ 11-48-23** Notice of Hearing Upon Objections, Etc., to Assessments {#sec-11-48-23 omnilex-key=us-al-statutes--title-11--11-48-23}
The notice provided for in Section 11-48-22 shall state that, at a time and place therein mentioned, not less than 20 days from the date of publication, the council shall meet to hear and determine any objections or defense that may be filed to such assessment or the amount thereof.
*(Code 1907, §1378; Code 1923, §2193; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §532.)*
##### **§ 11-48-24** Contents of Notice as to Assessments for Improvements {#sec-11-48-24 omnilex-key=us-al-statutes--title-11--11-48-24}
The notice required by Section 11-48-22 shall also state the general character of the improvements, the terminal points thereof and the streets, avenues, alleys, or other highways or portions thereof along which the improvement has been constructed, and, if the improvement made consists of a sanitary or storm water sewer or sanitary or storm water sewer system, said notice shall also describe the frontage of the property drained by said sewers or the territory or area drained, served, or benefited by said sewer or sewers by naming the streets, avenues, alleys, or other highways or other lines by which said district is bounded.
If the improvement made consists of the draining, elevating, filling or reclaiming of swamps or overflowed, inundated, or submerged land within the limits of any municipality having a population of 60,000 or more inhabitants according to the most recent federal census, said notice shall also describe the territory or area drained, filled, elevated, or reclaimed and the territory benefited and increased in value by reason of such improvement.
If the improvement made consists of the construction of a seawall or other protection against waves, seas, storms, and floods, said notice shall also describe the territory or area protected, benefited, or increased in value by reason of the construction of such seawall or other protection against seas, waves, storms, and floods.
*(Code 1907, §1379; Code 1923, §2194; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §533.)*
##### **§ 11-48-25** Effect and Correction of Defects or Errors in Notice {#sec-11-48-25 omnilex-key=us-al-statutes--title-11--11-48-25}
If there is any defect in said notice or proceedings before or subsequent to said notice with respect to one or more interested persons, the same shall not affect such notice or proceedings except insofar as it may touch the interest or property of such person or persons and shall not avail any other person concerned therein. In the case of such defect, supplementary proceedings of the same general character as those prescribed in this article may be had in order to supply such defect.
*(Code 1907, §1380; Code 1923, §2195; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §534.)*
##### **§ 11-48-26** Filing of Written Objections, Etc., to Assessments by Property Owners {#sec-11-48-26 omnilex-key=us-al-statutes--title-11--11-48-26}
The owner or owners of any real estate or any interest therein which it is proposed to assess for the cost or any part thereof of said improvement may appear at any time on or before the date named in said notice or at said meeting and file in writing with the clerk or in his office any objections or defense to the proposed assessment against said property or to the amount thereof, and persons who do not file objections or protests in writing against such assessment shall be held to have consented to the same.
*(Code 1907, §1381; Code 1923, §2196; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §535.)*
##### **§ 11-48-27** Hearing Upon Objections to Assessments - Conduct Generally {#sec-11-48-27 omnilex-key=us-al-statutes--title-11--11-48-27}
The council shall hear and pass upon all such objections to and protests against the proposed assessment under such reasonable rules and regulations as it may adopt.
*(Code 1907, §1382; Code 1923, §2197; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §536.)*
##### **§ 11-48-28** Hearing Upon Objections to Assessments - Powers of Council as to Subpoena of Witnesses, Etc {#sec-11-48-28 omnilex-key=us-al-statutes--title-11--11-48-28}
The council, by the mayor or clerk or other executive officer, may issue subpoenas for witnesses to appear before the council or any committee thereof and may administer oaths to any witness to be examined.
*(Code 1907, §1383; Code 1923, §2198; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §537.)*
##### **§ 11-48-29** Fixing of Amount of Assessments by Council and Effect Thereof; Reduction, Abatement, Etc., of Assessments Generally {#sec-11-48-29 omnilex-key=us-al-statutes--title-11--11-48-29}
(a) At such meeting or any adjourned meeting the council shall proceed by order or resolution to fix the amount of the assessment against each lot or tract of land described and included in said assessment roll, and all such assessments from the date of such order or resolution shall be and constitute a lien on the respective lots or parcels of land upon which they are levied superior to all other liens, except those of the state and county for taxes.
(b) The council shall have no power to reduce or abate an assessment made for public improvements after such assessments shall have been made final, unless an appeal shall have been taken from such assessments within the time prescribed by law, except as provided in Sections 11-48-30 and 11-48-31, but this provision shall not affect the power of such council to split an assessment between two or more parties as now provided by law.
*(Code 1907, §1384; Code 1923, §2199; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §538.)*
##### **§ 11-48-30** Reduction or Abatement of Assessments on Property Owned by Government or Charitable Organizations in Municipalities Having Population of 20,000 or Less - Authority Generally; Reconveyance of Property Acquired through Foreclosure of Assessment {#sec-11-48-30 omnilex-key=us-al-statutes--title-11--11-48-30}
The council of any town or city having a population of less than 20,000 people according to the last federal census or which shall hereafter have such a population according to any such census that may be taken hereafter shall have the power to reduce or abate any assessments heretofore or hereafter made for public improvements in such town or city in cases where such assessments have been levied or attempted to be levied against property owned by the State of Alabama or by such town or city or by the county in which such town or city is located or owned by any church, hospital, or other charitable organization, whether or not such assessment shall have been made final and the time to appeal therefrom expired.
Such council may also convey, with or without consideration, to the State of Alabama or to the county in which such town or city is located or to any church, hospital, or other charitable organization any property which such town or city had acquired through foreclosure of an assessment and any conveyance heretofore made by any such town or city, with or without consideration, to any of the class defined in this section is hereby ratified, confirmed, validated, and approved.
*(Acts 1939, No. 94, p. 126; Code 1940, T. 37, §539; Acts 1945, No. 325, p. 527.)*
##### **§ 11-48-31** Reduction or Abatement of Assessments on Property Owned by Government or Charitable Organizations in Municipalities Having Population of 20,000 or Less - Erroneous Assessments; Assessments in Excess of Benefits Derived, Etc {#sec-11-48-31 omnilex-key=us-al-statutes--title-11--11-48-31}
The council of any city having a population of 20,000 or more according to such census shall have power to reduce or abate any assessments heretofore or hereafter made for public improvements in such city in cases where such assessments have been levied or attempted to be levied against property owned by the State of Alabama or by such city or by the county in which such city is located or by any church, hospital, or other charitable organization or in any case where the council after due inquiry has determined that the assessment on any particular property has been made erroneously or in excess of the benefit derived by such property or so great as to constitute an undue burden upon the property, having in view the value thereof, whether or not such assessment shall have been made final and the time to appeal therefrom expired.
*(Acts 1935, No. 296, p. 719; Acts 1936, Ex. Sess., No. 147, p. 167; Code 1940, T. 37, §540; Acts 1969, No. 1056, p. 1976.)*
##### **§ 11-48-32** Assignment and Transfer of Assessment Liens {#sec-11-48-32 omnilex-key=us-al-statutes--title-11--11-48-32}
Such city or town may transfer and assign such assessment liens to the contractor or contractors who made said improvement or improvements or to any other person.
*(Code 1907, §1385; Code 1923, §2200; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §541.)*
##### **§ 11-48-33** Enforcement of Assessment Liens in Circuit Court {#sec-11-48-33 omnilex-key=us-al-statutes--title-11--11-48-33}
In addition to the method hereinafter provided in this article for the collection of such assessments, the circuit court may enforce said liens, and in all civil actions which may be brought to enforce said liens either by the municipality or by its assigns, the complainant shall recover the amount of such assessment, with interest thereon, together with the cost of such proceedings.
*(Code 1907, §1386; Code 1923, §2201; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §542.)*
##### **§ 11-48-34** Effect of Enforcement of Tax Liens Upon Property Upon Assessment Liens; Duration of Assessment Liens {#sec-11-48-34 omnilex-key=us-al-statutes--title-11--11-48-34}
(a) The enforcement by the state, county, city, or town of its lien for taxes on any lot upon which has been levied an assessment for any improvement authorized by this article shall not operate to discharge or in any manner affect the lien of the municipality for the assessment, but any purchaser at any tax sale by the state, county, city, or town of any lots or parcels of land upon which an assessment has been levied shall take them subject to such assessment.
(b) All liens for public improvements which cities and towns in this state now have or may hereafter acquire under the general laws of this state shall continue until they are paid or extinguished or until the expiration of 20 years from the date of default in payment of the assessment or from the date when there was a due recognition of the indebtedness after default, after which time the enforcement of the lien shall be barred and the indebtedness conclusively presumed to have been paid.
*(Code 1907, §1387; Code 1923, §2202; Acts 1927, No. 639, p. 753; Acts 1932, Ex. Sess., No. 270, p. 273; Code 1940, T. 37, §543; Acts 1951, No. 284, p. 570.)*
##### **§ 11-48-35** Effect of Sale of Property for Enforcement of Assessment Lien Upon Other Assessment Liens Upon Same Property {#sec-11-48-35 omnilex-key=us-al-statutes--title-11--11-48-35}
The enforcement by the municipality of its lien for an assessment levied for one improvement by the sale of the property shall not operate to discharge or in any way affect the lien of any other assessment for a different improvement on the same property, but the purchaser at such sale shall take the property subject to the lien of all other assessments and the right of the municipality to enforce the same.
*(Code 1907, §1388; Code 1923, §2203; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §544.)*
##### **§ 11-48-36** Appeals to Circuit Court from Assessments - Authorized {#sec-11-48-36 omnilex-key=us-al-statutes--title-11--11-48-36}
Any person aggrieved by the decision in making any assessment may, within 20 days thereafter, appeal to the circuit court upon executing a bond in double the amount of the probable cost of the appeal.
*(Code 1907, §1389; Code 1923, §2204; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §545.)*
##### **§ 11-48-37** Appeals to Circuit Court from Assessments - Bond {#sec-11-48-37 omnilex-key=us-al-statutes--title-11--11-48-37}
The amount of such appeal bond shall be fixed and the sureties thereon shall be approved by the mayor or other chief executive officer, and the said bond shall be conditioned to prosecute said appeal to effect and pay the city or town any judgment that the circuit court may enter, and all damages that any person may suffer by such appeal.
*(Code 1907, §1390; Code 1923, §2205; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §546.)*
##### **§ 11-48-38** Appeals to Circuit Court from Assessments - Entry on Trial Docket {#sec-11-48-38 omnilex-key=us-al-statutes--title-11--11-48-38}
Said appeal shall be entered on the trial docket in said court and shall be a preferred case therein.
*(Code 1907, §1391; Code 1923, §2206; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §547.)*
##### **§ 11-48-39** Appeals to Circuit Court from Assessments - Transcript for Appeal - Contents {#sec-11-48-39 omnilex-key=us-al-statutes--title-11--11-48-39}
Upon the filing and the approval of the appeal bond, the clerk of the city or town, upon notice thereof, shall immediately send to the clerk of the circuit court a transcript of all the proceedings of the municipality relating to such assessment, so far as the same concerns the property of the appellant. Such transcript shall contain a description of the property of such party or parties, the same to be described as accurately as possible according to the map of the city or town in common use, if there be such map, the name of the owner or owners of such property and the amount of the assessment.
*(Code 1907, §1392; Code 1923, §2207; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §548.)*
##### **§ 11-48-40** Appeals to Circuit Court from Assessments - Authorized - Prima Facie Evidence {#sec-11-48-40 omnilex-key=us-al-statutes--title-11--11-48-40}
Upon hearing such appeal, the introduction of such transcript and papers shall be prima facie evidence of the correctness of such assessment and that said property and persons are justly indebted to the city or town for the amount of said assessment.
*(Code 1907, §1393; Code 1923, §2208; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §549.)*
##### **§ 11-48-41** Appeals to Circuit Court from Assessments - Conduct Generally; Right of Jury Trial; Entry of Judgment and Assessment of Costs Generally {#sec-11-48-41 omnilex-key=us-al-statutes--title-11--11-48-41}
The civil action may be tried on the record without other pleadings, and the court shall hear all objections of the property owners to said assessment and the amount thereof and shall determine whether or not such assessment exceeds the increased value of such property by reason of the special benefits derived from the improvement, and shall enter judgment accordingly. Such civil action shall be tried by the judge without a jury, unless a jury trial is demanded at the time of filing appeal, in which event the action shall be tried by a jury as in other civil actions. In the event the court or jury shall not sustain the assessment for the full amount, the costs of the appeal and trial in the circuit court shall be adjudged against the municipality.
*(Code 1907, §1394; Code 1923, §2209; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §550.)*
##### **§ 11-48-42** Appeals to Circuit Court from Assessments - Entry of Judgment for Amounts Properly Chargeable Against Lands Where Assessment Defective {#sec-11-48-42 omnilex-key=us-al-statutes--title-11--11-48-42}
If, on the hearing of such appeal, it shall appear that by reason of any technical irregularity or defect in the proceedings the assessment has not been properly made against the lot or parcel of land sought to be charged, the court may, nevertheless, on motion of the city or town, upon satisfactory proof that expense has been incurred which is a proper charge against the lot or land in question, enter judgment for the amount properly chargeable against said lot or land, but in such case the court shall make such order for the payment of the costs as it may deem proper.
*(Code 1907, §1395; Code 1923, §2210; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §551.)*
##### **§ 11-48-43** Appeals from Judgment of Circuit Court - by Property Owner - Authorized; Bonds {#sec-11-48-43 omnilex-key=us-al-statutes--title-11--11-48-43}
An appeal may be taken to the Supreme Court of Alabama by any person interested in said property from the judgment entered by the circuit court within 42 days from the date of entry of such judgment, upon giving bond for costs of appeal or, if a stay of execution of the judgment is desired, upon giving further bond in such sum as the judge of the circuit court may prescribe, payable to the city or town with sufficient sureties, to be approved by the clerk of said court, conditioned to pay such judgment or perform such judgment as the supreme court may render in the action, and all such costs and damages as the city or town may have sustained if the judgment is affirmed.
*(Code 1907, §1396; Code 1923, §2211; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §552.)*
##### **§ 11-48-44** Appeals from Judgment of Circuit Court - by Property Owner - Conduct Generally {#sec-11-48-44 omnilex-key=us-al-statutes--title-11--11-48-44}
Such appeal shall be heard upon the record in accordance with the Alabama Rules of Appellate Procedure.
*(Code 1907, §1397; Code 1923, §2212; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §553.)*
##### **§ 11-48-45** Appeals from Judgment of Circuit Court - by Property Owner - Addition of Interest and Damages Upon Affirmance of Judgment for Municipality {#sec-11-48-45 omnilex-key=us-al-statutes--title-11--11-48-45}
In the event a supersedeas bond has been given as provided in Section 11-48-43 and the said case is affirmed by the supreme court, it shall add to the judgment entered by the lower court interest thereon and 10 percent in damages for delay.
*(Code 1907, §1398; Code 1923, §2213; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §554.)*
##### **§ 11-48-46** Appeals from Judgment of Circuit Court - by Municipality - Authorized; Bond Not Required {#sec-11-48-46 omnilex-key=us-al-statutes--title-11--11-48-46}
The city or town may also appeal from any judgment of the circuit court without giving bond, and all appeals taken pursuant to this article shall be preferred cases in the supreme court.
*(Code 1907, §1399; Code 1923, §2214; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §555.)*
##### **§ 11-48-47** Appeals from Judgment of Circuit Court - by Municipality - Issuance of Execution and Order of Sale Upon Entry of Final Judgment in Favor of Municipality {#sec-11-48-47 omnilex-key=us-al-statutes--title-11--11-48-47}
In the event the final judgment is entered in favor of the city or town, execution may be issued thereon against the principal and sureties on the appeal bond, unless the amount of the judgment is paid within 30 days from the date of such judgment, and the court shall, by further order, require that the property assessed be sold to satisfy such judgment.
Nothing contained in this article shall operate to release or discharge the lien on such property unless the assessment is fully paid.
*(Code 1907, §1400; Code 1923, §2215; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §556.)*
##### **§ 11-48-48** Payment of Assessments Generally {#sec-11-48-48 omnilex-key=us-al-statutes--title-11--11-48-48}
The municipality, in ordering any local improvement the cost of which or any part thereof is to be assessed against any property in accordance with the provisions of this article, may provide that the same shall be paid in cash within 30 days after the final assessment, provided the cost of such improvement does not exceed $1,000.00, but if the total cost of said improvement is greater than such sum, any property owner may, at his election, to be expressed by notifying the municipal official charged with the duty of collecting such assessments in writing within 30 days after the assessment is made final, pay the said assessment in 10 equal installments, which shall bear interest at a rate not exceeding 12 percent per annum, payable annually; provided, however, that if, on or before the date such assessment is made final, bonds shall have been issued, under the provisions of Division 1 of Article 4 of Chapter 81 of this title, by the municipality for the purpose of providing funds to pay any portion of the costs of such improvement, the rate of interest on such installments may, at the option of the municipality and notwithstanding the foregoing provisions of this paragraph, be fixed by the municipality at a rate not exceeding the “effective net interest rate” on such bonds, as that term is herein defined; and provided, that if the assessment against any lot or parcel of land does not exceed $25.00, said assessment must be paid in cash within 30 days after assessment is made final as above provided.
Any person may pay the whole assessment against any lot or parcel of land within 30 days from the time the assessment is made and may at any installment period pay the assessment in full by paying the full amount of the installments, together with all accrued interest thereon. Should the property owner desire to pay off the deferred installments between the dates on which they are due, he shall pay interest on the same until the succeeding installment period. The first installment shall be payable within 30 days after the assessment is made final, and all assessments or installments thereof shall be payable at the office of the clerk, tax collector, or treasurer of the city or town as may be prescribed, and all assessments or installments thereof shall bear interest at a rate not exceeding 12 percent per annum after the expiration of 30 days from the date on which the same is made final, which interest shall be due and payable at the time and place the assessment or installment is due and payable; provided, however, that if, on or before the date such assessment is made final, bonds shall have been issued, under the provisions of Division 1 of Article 4 of Chapter 81 of this title, by the municipality for the purpose of providing funds to pay any portion of the costs of such improvement, the rate of interest on such assessments or installments may, at the option of the municipality and notwithstanding the foregoing provisions of this paragraph, be fixed by the municipality at a rate not exceeding the “effective net interest rate” on such bonds, as that term is herein defined.
In all cases where the property owner does not elect to pay installments or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of assessment, he shall be held to have waived the right to pay in installments, and the entire assessment shall at the expiration of said 30 days become due and payable.
The term “effective net interest rate” as used in this section means, with respect to any bonds issued as aforesaid for the purpose of providing funds to pay any portion of the costs of improvements, that rate computed by (1) determining, at the rate or rates of interest borne or to be borne by such bonds, the total dollar amount of the interest on such bonds from their date to their respective maturities (and deducting from such amount any premium thereon in excess of face value, or adding to such amount any discount thereon below face value, as the case may be), and (2) dividing such total dollar amount of interest by the sum of the bond year dollars of such bonds - the bond year dollars of each maturity of such bonds to be computed by multiplying the face amount of the bonds maturing in each year by the number of years the bonds of that maturity are outstanding.
*(Code 1907, §1401; Code 1923, §2216; Acts 1927, No. 639, p. 753; Acts 1932, Ex. Sess., No. 47, p. 55; Code 1940, T. 37, §557; Acts 1953, No. 840, p. 1130; Acts 1971, No. 1511, p. 2596; Acts 1981, 1st Ex. Sess., No. 81-983, p. 164.)*
##### **§ 11-48-48.1** Payment of Assessments in Class 2 Municipalities {#sec-11-48-48.1 omnilex-key=us-al-statutes--title-11--11-48-48.1}
Any Class 2 municipality, in ordering any local improvement the cost of which or any part thereof is to be assessed against any property in accordance with the provisions of this section, may provide that the same shall be paid in cash within 30 days after the final assessment, provided the cost of such improvement does not exceed $1,000.00, but if the total cost of said improvement is greater than such sum, any property owner may, at his election, to be expressed by notifying the municipal official charged with the duty of collecting such assessments in writing within 30 days after the assessment is made final, pay the said assessment in 36, 60 or 120 monthly installments, which shall bear interest at a rate not exceeding 12 percent per annum, as determined by the municipal governing body; provided, however, that if, on or before the date such assessment is made final, bonds shall have been issued, under the provisions of Sections 11-81-110 through 11-81-123, by the municipality for the purpose of providing funds to pay any portion of the costs of such improvement, the rate of interest on such installments may, at the option of the municipality and notwithstanding the foregoing provisions of this paragraph, be fixed by the municipality at a rate not exceeding the “effective net interest rate” on such bonds, as that term is herein defined; and provided, that if the assessment against any lot or parcel of land does not exceed $25.00, said assessment must be paid in cash within 30 days after assessment is made final as above provided.
Any person may pay the whole assessment against any lot or parcel of land within 30 days from the time the assessment is made and may at any installment period pay the assessment in full by paying the full amount of the installments, together with all accrued interest thereon. Should the property owner desire to pay off the deferred installments between the dates on which they are due, he shall pay interest on the same until the succeeding installment period. The first installment shall be payable within 30 days after the assessment is made final, and all assessments or installments thereof shall be payable at the office of the clerk, tax collector, or treasurer of the city as may be prescribed, and all assessments or installments thereof shall bear interest at a rate not exceeding 12 percent per annum after the expiration of 30 days from the date on which the same is made final, which interest shall be due and payable at the time and place the assessment or installment is due and payable; provided, however, that if, on or before the date such assessment is made final, bonds shall have been issued, under the provisions of Division 1 of Article 4 of Chapter 81 of this title, by the municipality for the purpose of providing funds to pay any portion of the costs of such improvement, the rate of interest on such assessments or installments may, at the option of the municipality and notwithstanding the foregoing provisions of this paragraph, be fixed by the municipality at a rate not exceeding the “effective net interest rate” on such bonds, as that term is herein defined.
In all cases where the property owner does not elect to pay installments or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of assessment, he shall be held to have waived the right to pay in installments, and the entire assessment shall at the expiration of said 30 days become due and payable.
The term “effective net interest rate” as used in this section means, with respect to any bonds issued as aforesaid for the purpose of providing funds to pay any portion of the costs of improvements, that rate computed by (1) determining, at the rate or rates of interest borne or to be borne by such bonds, the total dollar amount of the interest on such bonds from their date to their respective maturities (and deducting from such amount any premium thereon in excess of face value, or adding to such amount any discount thereon below face value, as the case may be), and (2) dividing such total dollar amount of interest by the sum of the bond year dollars of such bonds - the bond year dollars of each maturity of such bonds to be computed by multiplying the face amount of the bonds maturing in each year by the number of years the bonds of that maturity are outstanding.
*(Acts 1991, No. 91-460, p. 831, §1.)*
##### **§ 11-48-49** Proceedings for Sale of Land Upon Failure of Owner to Pay Assessment, Installment, or Interest - Notice {#sec-11-48-49 omnilex-key=us-al-statutes--title-11--11-48-49}
If the property owner who has not elected to pay installments fails to pay his assessments within 30 days or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of the assessment or makes default in the payment of any annual installment or the interest thereon, the whole of such assessment shall immediately become due and payable, and the officer designated by the municipality to collect such assessments shall proceed to sell the property against which the assessment is made to the highest bidder for cash, but he shall first give notice by publication once a week for three consecutive weeks in some newspaper published in the city or town or of general circulation therein of the date and time of such sale and the purpose for which the same is made, together with a description of the property to be sold. If said officer shall fail to advertise and sell any property on which said payments or installments are past due, any taxpayer of the issuing municipality or any holder of bonds of the series affected by said failure, whether of bonds heretofore issued or to be hereafter issued, shall have the right to apply for a writ of mandamus requiring said official to take such action to any court of competent jurisdiction, and said court shall, on proof, issue and enforce such writ.
*(Code 1907, §1402; Code 1923, §2217; Acts 1927, No. 639, p. 753; Acts 1932, Ex. Sess., No. 47, p. 55; Code 1940, T. 37, §558.)*
##### **§ 11-48-50** Proceedings for Sale of Land Upon Failure of Owner to Pay Assessment, Installment or Interest — Payment of Assessment Prior to Sale {#sec-11-48-50 omnilex-key=us-al-statutes--title-11--11-48-50}
Any property owner, notwithstanding his default, may pay the assessment with interest and all costs if tendered before a sale of the property.
*(Code 1907, §1403; Code 1923, §2218; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §559.)*
##### **§ 11-48-51** Proceedings for Sale of Land Upon Failure of Owner to Pay Assessment, Installment or Interest — Costs of Notice and Sale Charged Against Land, Etc {#sec-11-48-51 omnilex-key=us-al-statutes--title-11--11-48-51}
The cost of such notice and sale shall constitute a charge against the property to be sold and shall be retained out of the proceeds of the sale.
*(Code 1907, §1404; Code 1923, §2219; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §560.)*
##### **§ 11-48-52** Proceedings for Sale of Land Upon Failure of Owner to Pay Assessment, Installment or Interest - Execution, Etc., of Deed to Purchaser at Sale; Disposition of Surplus from Sale; Purchase of Property by Municipality {#sec-11-48-52 omnilex-key=us-al-statutes--title-11--11-48-52}
The officer making such sale shall execute a deed to the purchaser, which shall convey all the right, title, and interest which the party against whose property the assessment was made had or held in said property at the date of making such assessment or on the date of making such sale. Any surplus arising from said sale shall be paid to the city or town treasurer to be kept as a separate fund by the treasurer for the owner upon the responsibility of his official bond. The council may, by its agents, purchase real estate sold as provided under this article and, in the event of such purchase, the deed for the same shall be made to the town or city.
*(Code 1907, §1405; Code 1923, §2220; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §561.)*
##### **§ 11-48-53** Proceedings for Sale of Land Upon Failure of Owner to Pay Assessment, Installment, or Interest - Effect of Error or Defect in Notice or Sale {#sec-11-48-53 omnilex-key=us-al-statutes--title-11--11-48-53}
No mistake in the notice of sale in the description of the property or in the name of the owner shall vitiate the assessment or the lien and if, for any reason, the sale made by the city or town is ineffectual to pass title, it shall operate as an assignment of the lien, and, upon the request of the purchaser, supplementary proceedings of the same general character as required in this article may be had to correct the errors in said proceedings for his benefit or the lien so assigned to him may be enforced by civil action.
*(Code 1907, §1407; Code 1923, §2222; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §569.)*
##### **§ 11-48-54** Redemption of Property After Sale Generally {#sec-11-48-54 omnilex-key=us-al-statutes--title-11--11-48-54}
Any real property heretofore or hereafter sold for the satisfaction of a local improvement assessment lien imposed thereon by the governing body of a municipality may be redeemed by the former owner, or his assigns, or other person authorized to redeem property sold for taxes by the State of Alabama within two years from the date of such sale by paying to the purchaser at such sale or to any person deraigning title under such purchaser or to the city or town treasurer for such purchaser or person deraigning title under such purchaser the amount of the purchase price for which the property was sold at such sale plus an amount equal to interest on such purchase price from the date of such sale to the date of redemption at the rate of six percent per annum plus a fee of $2.00 to cover the expense of a conveyance. If the redemption is made from the municipality, the payment may be made upon such terms including installment payments as the governing body of the municipality may approve.
*(Code 1907, §1406; Code 1923, §2221; Acts 1927, No. 639, p. 753; Acts 1932, Ex. Sess., No. 269, p. 272; Acts 1939, No. 204, p. 354; Code 1940, T. 37, §562.)*
##### **§ 11-48-55** Extension of Redemption Period {#sec-11-48-55 omnilex-key=us-al-statutes--title-11--11-48-55}
The fixed two year period of redemption allowed by Section 11-48-54 for the redemption of any property heretofore or hereafter sold for the satisfaction of any assessment lien may be extended to a date 60 days after the date of the certificate of warning to redeem provided for in Section 11-48-56, but in no event for a longer period than six years from the date of such sale.
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §563.)*
##### **§ 11-48-56** Application for Entry of Certificate of Warning to Redeem Upon Record of Local Improvement Assessment Sale Deed; Contents of Certificate {#sec-11-48-56 omnilex-key=us-al-statutes--title-11--11-48-56}
At any time after a local improvement assessment sale deed has been recorded in the office of the probate judge of the county in which the property therein described lies and after expiration of the fixed two-year period of redemption allowed by Section 11-48-54, any person may apply to such probate judge for entry upon the margin of the record of such deed of a certificate of warning to redeem in substantially the following form: “I hereby certify that on or prior to the date of this certificate, I mailed a compared copy of the deed here recorded, together with notice that the same is here recorded, and a warning to redeem to each of the one or more persons other than the grantee in said deed, to whom the property therein described was last finally assessed for ad valorem taxation at the address of each such person as shown by said ad valorem tax assessment records. This _____ day of _____, 2__, _____, Probate Judge.”
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §564.)*
##### **§ 11-48-57** Mailing of Copies of Deed and Certificate to Persons Last Assessed Upon Property Described in Deed by Probate Judge; Entry of Certificate on Record of Deed, Etc {#sec-11-48-57 omnilex-key=us-al-statutes--title-11--11-48-57}
At the time of application for entry of such certificate of warning to redeem, the applicant shall deliver to the probate judge three correct copies of said deed with a notation thereon of the deed book and page where recorded and shall pay to said probate judge a fee of $1.00. Said copies of deed need not include any certificate of acknowledgment.
It shall thereupon be the duty of said probate judge to promptly compare said copies with the record of such deed and, if such copies be found to be correct copies of such record, it shall be the further duty of such probate judge to ascertain from the ad valorem tax assessment records of his county the name of the person or persons other than the grantee in said deed to whom the property described in said deed was last finally assessed for ad valorem taxation, together with the address of each such person as shown by said tax assessment records, and thereupon to promptly mail to each such person at such address one of the aforesaid compared copies of said deed, together with an attached warning to redeem in substantially the following form: “Take notice that there is recorded in my office in Deed Book _____ at page _____ a deed of which the attached is a correct copy. You are warned that unless you, or those claiming under you, take prompt steps to redeem from those claiming under said deed, all rights of redemption may be lost. This _____ day of _____, 2__, _____, Probate Judge, _____ County, Alabama.”
Promptly upon or after mailing such notice or notices and compared copy or copies of deed, it shall be the duty of said probate judge to enter upon the margin of the record of such deed a certificate of warning substantially as prescribed by Section 11-48-56 and to sign such certificate and to date the same with the date of entry. At the expiration of 60 days after the date of such certificate all rights to redeem from the sale shown by such deed shall cease and desist.
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §565.)*
##### **§ 11-48-58** Redemption of Property During Extended Redemption Period {#sec-11-48-58 omnilex-key=us-al-statutes--title-11--11-48-58}
Redemption may be effected after expiration of the fixed two-year period of redemption allowed or provided by Section 11-48-54 and before the extended period of redemption has expired in the same manner and at the same redemption price as is provided in Section 11-48-54; provided, that if the probate judge has made the certificate of warning to redeem as provided in Section 11-48-57, said redemption price shall be increased by $1.00; provided further, that if the grantee in the aforesaid public improvement assessment sale deed or any person deraigning any title or right under him shall have placed any improvements upon said property after expiration of the fixed two-year period of redemption allowed or provided by Section 11-48-54, then redemption must be effected by a civil action, and the redemption price shall be increased by the value of such improvements, to be ascertained in such civil action by the court.
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §567.)*
##### **§ 11-48-59** Performance of Duties of Probate Judge; Liability of Probate Judge for Errors in Performance of Duties {#sec-11-48-59 omnilex-key=us-al-statutes--title-11--11-48-59}
The duties imposed upon the probate judge in Sections 11-48-54 through 11-48-58 may be performed in his name and stead by any person or persons thereunto authorized by him. The faithful performance of such duties may be compelled by mandamus, but the probate judge shall not be liable in damages for any error or mistake in the performance of such duties committed in good faith.
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §566.)*
##### **§ 11-48-60** Applicability of Provisions of Sections 11-48-54 through 11-48-58 {#sec-11-48-60 omnilex-key=us-al-statutes--title-11--11-48-60}
Sections 11-48-54 through 11-48-58 shall not apply to unimproved real estate that has been heretofore purchased by any municipality at a municipal assessment sale and by said municipality sold to a third party prior to March 16, 1939.
*(Acts 1939, No. 204, p. 354; Code 1940, T. 37, §568.)*
##### **§ 11-48-61** Making of Temporary Loans or Issuance of Bonds During Progress of Work to Pay for Cost of Improvement {#sec-11-48-61 omnilex-key=us-al-statutes--title-11--11-48-61}
(a) For the purpose of providing funds to pay the cost of any improvement made under the provisions of this article, the governing body of any municipality may:
(1) Borrow money temporarily on the faith and credit of the municipality, executing its negotiable note therefor, which negotiable note may not run longer than a period of one year; or
(2) Issue bonds within the limitations prescribed by the Constitution.
(b) Such temporary loan or issue of bonds may be made before the contract is let for the improvements or during the progress of the work, in installments as the work progresses, and the making of one loan or the issue of one series of bonds shall not exhaust the power of the municipality to provide sufficient funds for the completion of the improvement. The municipality may pledge as security for such loan, whether evidenced by negotiable notes or bonds, the proceeds of the assessments made or to be made against the property benefited by the improvements and may transfer and assign for the benefit of said negotiable note or bond holder the lien of the municipality thereon, with power to enforce the same by civil action, but if negotiable notes or bonds shall be issued before the completion of the work, they shall not be issued in excess of the cost of the improvements as estimated at the time of the issue of the negotiable notes or bonds. If money is borrowed and negotiable notes or bonds issued after the work is completed, such negotiable notes or bonds shall not exceed in the aggregate the total cost of the improvements.
(c) No irregularity or technical defect in the proceedings relating to the making of the improvement shall in any way affect the power of the municipality to borrow money, either by the issue of negotiable notes or bonds, for the completion of the improvement.
*(Code 1907, §1408; Acts 1923, No. 16, p. 13; Code 1923, §2223; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §570.)*
##### **§ 11-48-62** Issuance of Bonds After Completion of Work {#sec-11-48-62 omnilex-key=us-al-statutes--title-11--11-48-62}
If bonds have not been issued during the progress of the work as authorized by Section 11-48-61, the municipality may, after completion of the work, sell and issue bonds not exceeding an amount sufficient to pay the then outstanding principal of and interest on any temporary loans made pursuant to the provisions of said Section 11-48-61 to finance all or part of the improvement, plus such portion of the cost of the improvement, computed in accordance with Section 11-48-9, as has not been financed by any such temporary loan then outstanding and unpaid.
In determining the amount of bonds so to be issued, the council shall take into consideration to the extent practicable the amount which at the time of the authorization of the sale of the bonds has been paid by the property owners toward the cost of the improvement.
*(Code 1907, §1409; Acts 1921, Ex. Sess., No. 53, p. 71; Code 1923, §2224; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §571; Acts 1953, No. 848, p. 1140.)*
##### **§ 11-48-63** Applicability of Provisions of Law as to Issuance of Municipal Bonds Generally {#sec-11-48-63 omnilex-key=us-al-statutes--title-11--11-48-63}
Bonds issued under the provisions of this article shall be subject to the provisions of existing law relating to the issuance of municipal bonds.
*(Code 1907, §1410; Code 1923, §2225; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §572.)*
##### **§ 11-48-64** Acquisition of Lands, Easements, Etc., for Public Improvements {#sec-11-48-64 omnilex-key=us-al-statutes--title-11--11-48-64}
Whenever in the judgment of the municipality it may be necessary or expedient for the carrying out and full exercise of the powers granted by this article, such municipality may acquire by purchase or condemnation the necessary lands or rights or easements or interests therein, thereunder and thereover, and may proceed to condemn the same in the manner provided in this article or by the general laws of this state governing the taking of lands or the acquiring of an interest therein for the uses for which private property may be taken; in which case such proceedings shall be governed in every respect by the general laws of the state pertaining thereto.
*(Code 1907, §1420; Code 1923, §2237; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §574.)*
##### **§ 11-48-65** Article Not to Affect Power of Municipality to Compel Property Owners to Repair Sidewalks, Etc {#sec-11-48-65 omnilex-key=us-al-statutes--title-11--11-48-65}
Nothing in this article shall be so construed as to take from any city or town or in any manner affect the power and authority to compel the property owners, by penal ordinance or otherwise, to repair the sidewalks in front of their property in such manner and with such material as may be directed under the supervision of the engineer or other officer or agent of the city or town or to cause such repairs to be made at the expense of the property owner, such expense to be collected as in the case of taxes.
*(Code 1907, §1419; Code 1923, §2236; Acts 1927, No. 639, p. 753; Code 1940, T. 37, §573.)*
#### **Article 2** Street and Sewer Improvements Outside Corporate Limits of Certain Cities
##### **§ 11-48-80** Definitions {#sec-11-48-80 omnilex-key=us-al-statutes--title-11--11-48-80}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) STREET IMPROVEMENTS. Filling, grading, leveling, graveling, slagging, cherting, macadamizing, paving, draining, or otherwise improving any street, avenue, alley, highway, or other public place, including the construction of sidewalks, curbs, and gutters.
(2) SEWER IMPROVEMENTS. Storm water sewers and storm water sewer systems and sanitary sewers, sanitary sewer systems, sewage treatment plants and sewage disposal plants, and all appurtenances to any such sewers or plants.
(3) PUBLIC IMPROVEMENTS. Street improvements and sewer improvements or either of them.
(4) POLICE JURISDICTION. The territory lying outside the corporate limits of a city but within its police jurisdiction.
*(Acts 1955, No. 492, p. 1112, §1.)*
##### **§ 11-48-81** Powers of Cities as to Construction of Public Improvements, Assessment of Cost Thereof Against Property Benefited, Etc., Outside Corporate Limits Generally; Requirement as to Consent of Property Owners, Etc {#sec-11-48-81 omnilex-key=us-al-statutes--title-11--11-48-81}
(a) Each city in this state having a population of 6,000 or more inhabitants, according to the most recent federal census or any official census taken pursuant to Sections 11-47-90 through 11-47-95 shall have the same powers with respect to the construction of public improvements in the police jurisdiction of such city that it may have under any law now existing or hereafter enacted with respect to the construction of public improvements within the corporate limits of such city.
Each such city shall have the same powers with respect to the assessment of the cost of public improvements, whether constructed in the city or in such police jurisdiction, against the property specially benefited by such improvements, whether such property is located in such city or in such police jurisdiction, that such city may have under any law now existing or hereafter enacted with respect to assessment of the cost of public improvements constructed within the city against property specially benefited by such improvements and located within the corporate limits of the city.
All such laws relating to the making of public improvements within the corporate limits of such city and to the making of public improvement assessments against property located within such corporate limits and the creation and enforcement of liens securing such assessments shall apply to any public improvements constructed within the police jurisdiction of such city, to any public improvement assessments made pursuant to the provisions of this article and to the liens securing such assessments.
(b) No public improvement shall be made under the authority of this article unless with the written consent of the owner or owners of not less than 60 percent of the frontage of the property to be affected; provided, that in the case of street improvements outside the corporate limits but inside the police jurisdiction of a municipality, consent of the governing body of the county in which said improvements are to be constructed must first be obtained and evidenced by resolution duly entered on the minutes of such county governing body.
*(Acts 1955, No. 492, p. 1112, §2.)*
##### **§ 11-48-82** Issuance of General Obligation Bonds, Etc., to Pay Cost of Improvements {#sec-11-48-82 omnilex-key=us-al-statutes--title-11--11-48-82}
Each such city shall have the same power to issue its general obligation bonds and other general obligation securities to pay the cost of public improvements constructed in the police jurisdiction of such city that it may have under any law now existing or hereafter enacted to issue general obligation bonds or other general obligation securities for payment of the cost of public improvements within the city.
All such laws relating to the issuance by any such city of general obligation bonds or other general obligation securities to pay the cost of public improvements, where all or any part of such cost is assessed or to be assessed against property located within the corporate limits of the city, shall apply to and govern the issuance and sale of general obligation bonds and other general obligation securities and the making of any pledges for payment thereof to obtain money to pay the cost of construction of any public improvements constructed in the police jurisdiction of such city where such cost is assessed or to be assessed as provided in this article.
*(Acts 1955, No. 492, p. 1112, §3.)*
##### **§ 11-48-83** Issuance of Bonds Payable Solely Out of Proceeds from Assessments to Pay Cost of Improvements {#sec-11-48-83 omnilex-key=us-al-statutes--title-11--11-48-83}
Each such city shall also have the power to finance the construction of public improvements in the police jurisdiction of such city by the issuance of its bonds payable solely out of the proceeds from assessments then made or to be thereafter made against the properties specially benefited by such improvements. Any such bonds shall not be general obligations of such city, and such city shall not be in any way liable to the holders of such bonds in the event of the failure to collect any of the assessments out of the proceeds from which such securities may be payable.
Any such bonds shall pledge, convey and transfer to the holders thereof all of the issuing city’s right, title and interest in and to such assessments and the city’s liens securing such assessments, together with the right to enforce the collection of such assessments by foreclosure of such liens in any court of competent jurisdiction. If the holder of any bond issued pursuant to the provisions of this section shall institute a foreclosure action in any court against any property subject to a lien securing any such assessment, such holder shall be entitled to have the proceeds of said action applied pro rata to the payment of the bond or bonds of such holder and all other bonds issued under this section and payable from the proceeds of the same assessments to the end that not more than one foreclosure action shall be brought against any one lot or parcel of land. The costs of any such foreclosure action including a reasonable attorney’s fee in any case where the bondholder bringing such action is represented therein by an attorney shall be ascertained by the court and deducted from the proceeds derived from said action before such proceeds are prorated as provided for in this section.
Any bonds issued under the provisions of this section shall be subject to the provisions of Sections 11-81-110 through 11-81-123, and to all other provisions of law now existing or hereafter enacted with respect to the sale and issuance by such cities of general obligation bonds for the purpose of financing public improvements within the city, the cost of which is to be assessed wholly or in part against the properties specially benefited thereby; provided, that any bonds issued under the provisions of this section shall not constitute general obligations of the issuing city but shall be payable solely from the proceeds of assessments as provided in this section.
*(Acts 1955, No. 492, p. 1112, §4.)*
#### **Article 3** Assessments for Public Improvements Against Property Owned by Tenants in Common
##### **§ 11-48-100** Apportionment of Assessment Against Property for Public Improvement Among Joint Owners Thereof Authorized; Discharge of Portion of Assessment Lien Upon Payment of Portion of Assessment {#sec-11-48-100 omnilex-key=us-al-statutes--title-11--11-48-100}
When an assessment for public improvements is levied against a tract of land owned by tenants in common, the governing body of any municipality may, upon petition of an owner or owners of said tract of land, split or divide the original assessment against the same and may apportion the cost of the improvements among the several portions or divisions of said tract of land and shall, upon the payment of the amount so charged or assessed against any separate portion or division, discharge said portion or division from the lien for improvements against the same.
*(Acts 1919, No. 61, p. 65; Code 1923, §2248; Code 1940, T. 37, §578.)*
##### **§ 11-48-101** Petition of Tenant in Common for Division of Assessment Among Joint Owners of Property {#sec-11-48-101 omnilex-key=us-al-statutes--title-11--11-48-101}
When assessments are made for public improvements against property owned by tenants in common and one or more of the tenants in common to the property assessed desires that said assessments be paid, he may file a petition with the governing body of such municipality praying that such assessment may be split or divided among the tenants in common to said property.
*(Acts 1919, No. 61, p. 65; Code 1923, §2245; Code 1940, T. 37, §575.)*
##### **§ 11-48-102** Division of Assessment Among Tenants in Common and Acceptance of Payment of and Discharge of Lien Upon Proportionate Shares of Assessment {#sec-11-48-102 omnilex-key=us-al-statutes--title-11--11-48-102}
The governing body of any municipality may divide such assessment proportionately among the tenants in common and allow any tenant in common to pay and discharge his proportionate share of such assessment, and the lien on his undivided interest shall be discharged upon payment in full, and this may be done before appeal, pending appeal or after final disposition, etc., and also after division, and the governing body of such municipality may adjust the cost of the proceedings with the petitioner and the action may proceed against the other tenants in common.
*(Acts 1919, No. 61, p. 65; Code 1923, §2246; Code 1940, T. 37, §576.)*
##### **§ 11-48-103** Notice to Property Owners of Division of Assessment {#sec-11-48-103 omnilex-key=us-al-statutes--title-11--11-48-103}
In all cases where assessments may be split or divided as authorized in this article, notice to owners of the property covered by such assessments or to their agents shall be given, either in person or by mail, where such owners or agents and their addresses are known or by publication in a newspaper published in the municipality once a week for two consecutive weeks, where such owners or agents and their addresses are unknown, before any final action shall be taken as provided in this article.
*(Acts 1919, No. 61, p. 65; Code 1923, §2250; Code 1940, T. 37, §580.)*
##### **§ 11-48-104** Appeals from Division of Assessment {#sec-11-48-104 omnilex-key=us-al-statutes--title-11--11-48-104}
The owner of any portion of said tract of land may, after said tract and the original assessments have been divided, appeal from the resolution, judgment or order of the governing body levying said assessment in the same manner and under the same conditions as appeals are taken from original assessments; except, that said appeal must be taken within five days after said judgment, resolution, or order.
*(Acts 1919, No. 61, p. 65; Code 1923, §2251; Code 1940, T. 37, §581.)*
##### **§ 11-48-105** Correction of Description of Ownership of Property; Reduction of Assessment {#sec-11-48-105 omnilex-key=us-al-statutes--title-11--11-48-105}
The governing body of a municipality may, at any time before judgment entered in the circuit court, correct errors in the description of ownership of property against which an assessment has been made for public improvements and may, whenever in its judgment the assessment is in excess of the special benefits derived from such improvement, reduce the assessment pending appeal.
*(Acts 1919, No. 61, p. 65; Code 1923, §2247; Code 1940, T. 37, §577.)*
##### **§ 11-48-106** Effect of Reduction of Assessment, Etc., Upon Assessment Lien {#sec-11-48-106 omnilex-key=us-al-statutes--title-11--11-48-106}
When any assessment is split or divided or errors corrected in the description of ownerships or assessments reduced, settled, or compromised or any adjustment made or act done as authorized by this article, no lien on the property affected by the assessment under existing laws shall be discharged or impaired but shall be retained in full force and effect on the several parts or portions of the property which may be thereby affected.
*(Acts 1919, No. 61, p. 65; Code 1923, §2249; Code 1940, T. 37, §579.)*
### **Chapter 49** Regulation, Construction, Maintenance, Etc., of Streets, Highways, Railroad Bridges, Ferries, Etc
#### **Article 1** General Provisions
##### **§ 11-49-1** Consent to Use Public Streets, Etc., for Construction or Operation of Public Utility or Private Enterprise; Fees {#sec-11-49-1 omnilex-key=us-al-statutes--title-11--11-49-1}
(a) No person, firm, association, or corporation may use the streets, avenues, alleys, and other public places of cities or towns for the construction or operation of any public utility or private enterprise without first obtaining the consent of the proper authorities of the city or town.
(b) No electric supplier, as defined in Section 37-14-31, which has an assigned service territory established by general law and is subject to payment of a privilege or license tax or other tax or fee established by general law to a city or town that authorizes a levy not to exceed three percent of the gross receipts of the business done by the electric supplier in the municipality during the preceding year, and that authorizes a levy not to exceed one and one-half percent of the gross receipts of the business done by the electric supplier in the police jurisdiction of the municipality during the preceding year, shall be subject to any separate fee, charge, tax, or other payment to the city or town in connection with the consent required under subsection (a) or any consent required otherwise by law.
(c) Nothing in this section shall affect any franchise fee, charge, tax, or other payment being currently paid by an electric supplier under a franchise agreement in effect on April 28, 2009, or any extension, assignment, or renewal at the same rate.
(d) Any franchise fee, charge, tax, or other payment paid by a natural or manufactured gas utility, as defined in Section 37-4-1(7)b., which is subject to the general supervision of the Alabama Public Service Commission pursuant to Section 37-1-32, and to payment of a privilege or license tax or other tax or fee established by general law to a city or town that authorizes a levy not to exceed three percent of the gross receipts of the business done by the natural or manufactured gas utility in the municipality during the preceding year, and that authorizes a levy not to exceed one and one-half percent of the gross receipts of the business done by the natural or manufactured gas utility in the police jurisdiction of the municipality during the preceding year, may not be increased after December 31, 2025, unless the increase is approved by a majority of the qualified electors residing in the municipality who vote on the proposed increase at an election held pursuant to Chapter 46.
(e)(1) Subsections (b) and (d) shall not be construed to affect the application of any of the following:
a. Health, safety, and welfare rules and regulations to electric suppliers or natural gas or manufactured gas utilities, including, without limitation, payment of reasonable permit fees designed to recover the costs of processing and administering permits generally applicable to all other businesses holding permits issued by the cities or towns.
b. Payment of publication costs associated with approval of a franchise as required by statute.
c. Any requirements stated in the franchise that the electric supplier or natural or manufactured gas utility repair and remediate property of the municipality damaged by the electric supplier’s or natural or manufactured gas utility’s operation and maintenance of its facilities and that the electric supplier or natural or manufactured gas utility indemnify the municipality for negligence or wrongful conduct of the electric supplier or natural or manufactured gas utility, or the electric supplier’s or natural or manufactured gas utility’s officers, agents, employees, or independent contractors, in the construction, operation, and maintenance of its facilities installed pursuant to the franchise.
d. Any tort, contract, or other civil liability that would exist independently of the franchise.
(2) This subsection is intended to provide examples of municipal powers that are unaffected by subsections (b) and (d) and shall not be construed as limitations on the rights and powers of municipalities.
(f) Nothing in subsections (b) through (e) shall affect the right of cities or towns to charge electric suppliers, which have an assigned service territory, or natural or manufactured gas utilities franchise fees for their use of the streets, avenues, alleys, and other public places of the cities or towns to provide services to the public such as cable, voice, data, video, or other nonelectric services and nonnatural or manufactured gas services for which other providers are required to pay franchise fees.
(g) Should any of subsections (b) through (f) be declared unconstitutional or invalid by a final decision of any court of competent jurisdiction, the remaining subsections (b), (c), (d), (e), and (f) shall become void and without effect. Nothing in this section shall be deemed to amend, modify, or otherwise affect in any manner Chapter 14 of Title 37.
*(Code 1907, §3483; Code 1923, §7017; Code 1940, T. 10, §72; Act 2009-301, p. 523, §§1, 2; Act 2025-396, §1.)*
##### **§ 11-49-2** Regulation of Cellar Openings, Stairways, Signs, Etc., on Sidewalks; Regulation, Construction, Etc., of Sidewalk Repairs {#sec-11-49-2 omnilex-key=us-al-statutes--title-11--11-49-2}
Cities and towns may prohibit openings being made on the sidewalks for cellar entrances and may close the same and may prescribe plans and specifications to be followed for such openings, if allowed. They may prohibit stationary or movable stands from being placed on the sidewalks and do any and all things necessary to secure free and ample passageway thereon, including the removal of stairways. They may prohibit the erection of awnings and verandas and signs hanging over the streets and sidewalks and may prescribe plans and specifications therefor, if allowed. They shall require the sidewalks to be kept in repair and, if not repaired by the owners of property abutting thereon, upon reasonable notice, to be determined by the council in the manner to be provided by ordinance, they may be repaired by the municipality at the owner’s expense, and the amount expended therefor shall be a lien upon the property, which, with interest, may be collected as taxes or assessments are collected.
*(Code 1907, §1266; Code 1923, §2014; Code 1940, T. 37, §647.)*
##### **§ 11-49-3** Railroads and Public Utilities Using Streets to Be Required to Keep Streets in Repair, Etc {#sec-11-49-3 omnilex-key=us-al-statutes--title-11--11-49-3}
Street and other railroad companies shall be required to keep their tracks in repair, using such rails as may be prescribed, and shall maintain and keep in repair the streets between their rails and for 18 inches on each side in such manner as the council or other governing body may prescribe.
Any public utility using the streets of the city or town shall at all times, in a manner prescribed by the council or other governing body, render the use of such streets safe to vehicles and to persons, and all tracks on such street shall, when required by the council or other governing body, be placed at any fixed grade and changed, free of expense to the municipality, when found necessary.
*(Code 1907, §1269; Code 1923, §2017; Code 1940, T. 37, §648.)*
##### **§ 11-49-4** Establishment of Speed Limits, Etc., Within Corporate Limits {#sec-11-49-4 omnilex-key=us-al-statutes--title-11--11-49-4}
(a) Except as otherwise provided in this code, each municipality shall fix by ordinance the speed at which motor vehicles may be operated within its corporate limits and shall fix the punishment for any violation of the ordinance in accordance with state law.
(b) Notwithstanding subsection (a), a municipality may not fix the speed at which motor vehicles may be operated on a county-maintained street, as defined in Section 11-49-80, located within the corporate limits of the municipality unless the municipality conducts an engineering and traffic investigation and receives written approval from the county engineer to fix the speed based on the results of that investigation.
*(Acts 1920, No. 9, p. 7; Code 1923, §2057; Code 1940, T. 37, §649; Act 2023-130, §1.)*
##### **§ 11-49-5** Posting of Sign Boards as to Municipal Speed Limits {#sec-11-49-5 omnilex-key=us-al-statutes--title-11--11-49-5}
Any city or town passing any such ordinance shall immediately post on each public highway leading into such city or town where the same enters such corporate limits a sign board on which shall be plainly and legibly written or printed the speed limit adopted.
*(Acts 1920, No. 9, p. 7; Code 1923, §2058; Code 1940, T. 37, §650.)*
##### **§ 11-49-6** Vacation of Right-of-Way Fee {#sec-11-49-6 omnilex-key=us-al-statutes--title-11--11-49-6}
Prior to the exercise of the power of a municipality incorporated in this state to vacate the public right-of-way for a road, street, alley, or other dedicated public way, open or unopen, as a condition of exercise of such power to vacate, the governing body may require abutting landowners who will directly benefit from such vacation to pay to such municipality a vacation of right-of-way fee equal to the fair market value of the land which will be added to the holdings of such abutting landowners. Such fair market value shall be determined by the governing body of the municipality after a public hearing, notice of which shall be published in a daily newspaper of general circulation at least five days prior thereto and mailed to such address or addresses as may be set forth in the application by abutting owners for the vacation of right-of-way unless a waiver of such notice to abutting landowners is filed by such abutting landowners with the clerk of the municipality and noted in the minutes of the municipal governing body at the time of adoption of the resolution vacating such right-of-way, or unless the abutting landowners paying such fee appear, personally or by counsel, at such public hearing. In no event shall the said vacation of right-of-way fee exceed the assessed value per square foot of all subdivision lots or tracts abutting the right-of-way to be vacated applied to square foot area of the real property to be added to holdings of each abutting landowner paying such fee; provided, however, the determination of such a fee in a lesser amount by the governing body of the municipality shall be conclusive as to its amount.
*(Acts 1982, 2nd Ex. Sess., No. 82-785, p. 288.)*
#### **Article 2** Establishment and Operation of Ferries on Rivers Between Two Counties
##### **§ 11-49-20** Exclusive Rights of Municipalities as to Establishment, Regulation, Etc., of Ferries {#sec-11-49-20 omnilex-key=us-al-statutes--title-11--11-49-20}
(a) The mayor and council or other governing bodies of incorporated municipalities in this state have the exclusive power and authority to establish or authorize the establishment of ferries on rivers which in whole or in part constitute the dividing line between two counties in this state at points touching such incorporated municipalities and to regulate the same.
(b) In all cases where the river is the dividing line between two counties and where the boundaries of any incorporated municipality border upon such river and at a public road crossing, the power and authority to establish a ferry across said river at such public road crossing is hereby vested exclusively in such municipality.
*(Acts 1923, No. 541, p. 721; Code 1923, §2409; Code 1940, T. 37, §372.)*
##### **§ 11-49-21** Applications for and Granting of Licenses for Establishment of Ferries - Procedure Generally {#sec-11-49-21 omnilex-key=us-al-statutes--title-11--11-49-21}
On application for a license for establishment of a ferry, where the banks on each side belong to the same person, such person is entitled to the prior right of establishing a ferry; when the banks belong to different persons, the municipal authorities may grant the license at their election to either of such owners making the application. Should any person not the owner of the land on either bank of the river where it is proposed to establish a ferry make application for a license, he shall be required to produce before the municipal authorities a statement in writing from the owner thereof saying that he is not an applicant, and such written statement must appear of record.
*(Acts 1923, No. 541, p. 721; Code 1923, §2410; Code 1940, T. 37, §373.)*
##### **§ 11-49-22** Applications for and Granting of Licenses for Establishment of Ferries - Publication, Posting, Etc., of Notice of Application {#sec-11-49-22 omnilex-key=us-al-statutes--title-11--11-49-22}
No license for a ferry shall be granted until 20 days’ notice of the intended application shall have been given by notice published in a newspaper and posted at the city hall of such municipality and at the courthouse door of the county in which such municipality is situated and at three other public places in the county, two of which shall be in the immediate vicinity where it is proposed to establish such ferry, and three other notices shall be posted in three public places in the adjoining county where said ferry touches, and personal notice shall be given to the owner of the land if he is not an applicant.
*(Acts 1923, No. 541, p. 721; Code 1923, §2411; Code 1940, T. 37, §374.)*
##### **§ 11-49-23** Licenses to Be Granted for Establishment of Ferries at Public Road Crossings Only; Annulment of Nonconforming Licenses {#sec-11-49-23 omnilex-key=us-al-statutes--title-11--11-49-23}
Such license for a ferry shall be granted only at the crossing of a river at a point where a public highway has been established. All licenses granted at points governed by this article and not in conformity with the provisions of the same are hereby annulled.
*(Acts 1923, No. 541, p. 721; Code 1923, §2412; Code 1940, T. 37, §375.)*
#### **Article 3** Requirement of Construction and Maintenance by Railroads of Bridges, Tunnels, Etc., Within Limits of Certain Cities
##### **§ 11-49-40** Authorized {#sec-11-49-40 omnilex-key=us-al-statutes--title-11--11-49-40}
The city council or other governing body of each city in the State of Alabama having according to the most recent federal census a population of more than 35,000 inhabitants shall have full power and authority to require railroad companies to construct and maintain within the city limits viaducts, bridges, and tunnels or parts of viaducts, bridges, and tunnels and their approaches over, along, or under the tracks at their own expense, such bridges and their approaches, tunnels or other conveniences at public crossings and such viaducts and their approaches over their tracks where the same cross or extend along public highways or streets.
*(Code 1907, §1296; Code 1923, §2070; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §651.)*
##### **§ 11-49-41** Vacation of Street Where Bridge, Tunnel, Etc., to Be Constructed to Be Provided For {#sec-11-49-41 omnilex-key=us-al-statutes--title-11--11-49-41}
No viaduct, bridge, or tunnel shall be constructed under this article unless said governing body shall have provided for a vacation of the street upon completion of said viaduct, bridge, or tunnel throughout that portion thereof over, along, or under which the said public improvement is proposed to be constructed. The fee of the street, nevertheless, shall remain in the city.
*(Code 1907, §1297; Code 1923, §2071; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §652.)*
##### **§ 11-49-42** Passage, Etc., of Ordinance Requiring Construction, Etc., of Bridge, Tunnel, Etc.; Apportionment of Costs Between Railroads {#sec-11-49-42 omnilex-key=us-al-statutes--title-11--11-49-42}
Whenever any such governing body shall deem any such improvement necessary, it shall pass an ordinance requiring the construction of such improvement, describing the character and location of such proposed improvement with reasonable certainty, stating the estimated cost thereof and fixing a reasonable time for the construction of the same, and where a viaduct, bridge, or tunnel crosses over or passes under the tracks of two or more railroad companies and such railroad companies cannot themselves agree upon the division as between them of the cost thereof to be borne by them as provided in Section 11-49-40, the said governing body shall have full power and authority to apportion the cost thereof equitably among the different railroads owning the said tracks.
*(Code 1907, §1298; Code 1923, §2072; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §653.)*
##### **§ 11-49-43** Penalization of Railroad, Etc., for Failure to Comply with Ordinance Ordering Construction, Etc., of Bridge, Tunnel, Etc {#sec-11-49-43 omnilex-key=us-al-statutes--title-11--11-49-43}
Any such governing body may penalize the failure of any such railroad company or of such railroad companies to construct within a reasonable time or to maintain any such viaduct, bridge, or tunnel ordered by a proper ordinance, such penalties to be prescribed as provided in the charter of said city for violations of police ordinances, and such penalties may be directed against said railroad company or railroad companies or against its or their officers or agents having supervision, charge, or control of or operating the same, any or all.
*(Code 1907, §1299; Code 1923, §2073; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §654.)*
##### **§ 11-49-44** Enforcement of Ordinance by Action in Circuit Court {#sec-11-49-44 omnilex-key=us-al-statutes--title-11--11-49-44}
Such governing body may also, by complaint filed in the circuit court in the county in which the city is situated, compel compliance with any or all proper ordinances ordering the construction or maintenance of viaducts, bridges, or tunnels passed under the authority of this article, express jurisdiction being conferred on all circuit courts of this state to that end.
*(Code 1907, §1300; Code 1923, §2074; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §655.)*
##### **§ 11-49-45** Right of Appeal of Railroad from Ordinances Requiring Construction, Etc., of Bridges, Tunnels, Etc., and from Orders Imposing Penalties for Failure to Comply Therewith {#sec-11-49-45 omnilex-key=us-al-statutes--title-11--11-49-45}
Any railroad companies so ordered by ordinance of such governing bodies to construct and maintain viaducts, bridges, and tunnels shall have the right to appeal to any circuit court in the county in which the city is situated from the ordinances of such governing bodies and from any orders made penalizing such railroad companies for their failure to construct and maintain such viaducts, bridges, and tunnels. On such appeal the railroad companies shall give such bond as may be prescribed by said circuit court.
*(Code 1907, §1301; Code 1923, §2075; Acts 1927, No. 347, p. 348; Code 1940, T. 37, §656.)*
#### **Article 4** Payment of Costs of Highways, Streets, Etc., Constructed, Improved, Etc., by Counties, State, or Federal Government
##### **§ 11-49-60** Contract by Municipality for Payment of Proportionate Share of Cost of Highway, Street, Etc., Within Municipality Constructed, Improved, Etc., by County, State, or Federal Government Authorized; Assessment of Proportionate Share of Cost Against Property Benefited {#sec-11-49-60 omnilex-key=us-al-statutes--title-11--11-49-60}
Whenever the United States, the State of Alabama, or any county within the State of Alabama or either of them shall establish, construct, or reconstruct, improve or reimprove a public highway, street, or avenue, which said street, highway, or avenue is within or partly within any city or town of the State of Alabama, such city or town may contract and agree with either the United States government, the State of Alabama, or any county thereof as to what proportionate share of the cost of the establishment, construction, reconstruction, improvement, or reimprovement of such street, highway, or avenue within such city or town shall be paid by such municipality, and such cities or towns may assess such proportionate cost of the establishment, construction, reconstruction, improvement, or reimprovement of such streets, avenues, or highways against the property benefited thereby, but such cost shall not exceed the increased value of such property by reason of the special benefits derived from such improvements.
*(Acts 1919, No. 760, p. 1122; Code 1923, §2252; Code 1940, T. 37, §657.)*
##### **§ 11-49-61** Enforcement, Etc., of Lien on Property Assessed for Highway, Street, Etc {#sec-11-49-61 omnilex-key=us-al-statutes--title-11--11-49-61}
Such cities and towns shall have a lien on the lots or parcels of land so assessed as provided in Section 11-49-60, which lien may be enforced as provided by the general laws covering assessment liens for public improvements, and property owners shall have the right to pay such assessments as provided by the general laws.
*(Acts 1919, No. 760, p. 1122; Code 1923, §2254; Code 1940, T. 37, §659.)*
##### **§ 11-49-62** Issuance of Bonds to Pay Proportionate Share of Cost of Highway, Street, Etc {#sec-11-49-62 omnilex-key=us-al-statutes--title-11--11-49-62}
Any city or town proceeding under Section 11-49-60 may issue bonds of the city or town for the improvements mentioned in said section to pay the cost of such public improvements agreed to be paid by said city or town, and may contract with the United States, the State of Alabama, or any county thereof or either of them to build or construct such streets, highways, or avenues and to pay either of them therefor in the same manner as private contractors are now paid.
*(Acts 1919, No. 760, p. 1122; Code 1923, §2253; Code 1940, T. 37, §658.)*
##### **§ 11-49-63** Conduct of Proceedings Under Article {#sec-11-49-63 omnilex-key=us-al-statutes--title-11--11-49-63}
The proceeding under this article shall be held and governed by the general laws of the State of Alabama relating to assessments against property for public improvements insofar as said laws are applicable.
*(Acts 1919, No. 760, p. 1122; Code 1923, §2255; Code 1940, T. 37, §660.)*
#### **Article 5** Assumption, Etc., of Authority Over Streets Controlled, Maintained, Etc., by Counties
##### **§ 11-49-80** Definitions; Responsibility for Streets Within Municipality Controlled by County; Annexation of Unincorporated Territory; Alternative Arrangements; Evacuation Routes {#sec-11-49-80 omnilex-key=us-al-statutes--title-11--11-49-80}
(a) For the purposes of this article, the following terms shall have the following meanings:
(1) COUNTY-MAINTAINED STREET. A public street, road, or bridge that the county commission has the authority or responsibility to control, manage, supervise, regulate, repair, maintain, or improve.
(2) MUNICIPAL STREET. A public street, road, or bridge that the municipality has the authority or responsibility to control, manage, supervise, regulate, repair, maintain, or improve.
(3) RESPONSIBILITY FOR A STREET. The authority or responsibility to control, manage, supervise, regulate, repair, maintain, or improve a public street, road, or bridge.
(4) STREET. A public street, road, bridge, or portion thereof.
(b) Where the responsibility for a public street or streets lying within a municipality is vested in the county commission of the county within which the municipality is located, the municipality may assume responsibility for the public street or streets designated in the resolution adopted by the governing body of the municipality.
(c) Notwithstanding the adoption of a resolution as required in Sections 11-49-80 and 11-49-81, the annexation of unincorporated territory into a municipality, after July 7, 1995, shall result in the municipality assuming responsibility for all public streets lying within the territory annexed, provided the public streets were county-maintained streets for a period of one year prior to the effective date of the annexation. The annexation of unincorporated territory into a municipality shall also result in the municipality assuming responsibility for all public streets lying within the territory annexed, provided the public streets were county-maintained roads for a period of less than one year prior to the effective date of the annexation if the construction of the public streets was also approved by the municipal planning commission of the annexing municipality. Except as herein provided, this section shall not require a municipality to assume responsibility for any public street located within the territory annexed which was not a county-maintained street prior to the effective date of the annexation. Further, nothing in this section shall require a county to assume responsibility for any public street located within the territory annexed which was not a county-maintained street prior to the effective date of the annexation.
(d) After July 7, 1995, when the annexation of unincorporated territory by a municipality results in a public street being located outside the corporate limits of the annexing municipality while at the same time bounded on both sides by the corporate limits of the annexing municipality, the county governing body shall consent to the annexation of the public street by the municipality if the street was a county-maintained street for a period of one year prior to the effective date of the annexation or was approved upon construction by the municipal planning commission. Once consent to annexation is given by the owners of the public street, the municipality shall annex that portion of the public street which is bounded on both sides by the municipal corporate limits. Once the annexation becomes effective, the municipality shall assume responsibility for the public street as provided in subsection (c).
(e) The responsibility for public streets lying within the corporate limits of an incorporated municipality on July 7, 1995, shall remain the responsibility of the entity responsible for the public streets on July 7, 1995.
(f) Nothing contained in Sections 11-49-80 and 11-49-81 shall prohibit a county and municipality from entering into a mutual agreement providing for an alternative arrangement for responsibility of public streets lying within the corporate limits of an incorporated municipality.
(g) A county-maintained divided four-lane public street that has been designed or designated by the county or Governor as an evacuation route to be utilized under emergency conditions found in Chapter 9, Title 31, may not be annexed by a municipality, regulated by a municipal planning commission, nor considered a part of the police jurisdiction of any municipality except where there is a mutual agreement between a county and municipality providing otherwise.
Nothing in this subsection shall prevent a municipality from annexing territory on either side of the evacuation route that would otherwise be considered contiguous for the purpose of annexation under any provision of Alabama law.
*(Acts 1921, Ex. Sess., No. 37, p. 50; Code 1923, §2256; Code 1940, T. 37, §661; Acts 1995, No. 95-312, p. 618, §1; Act 2015-53, §1.)*
##### **§ 11-49-81** Contents of Resolution; When Resolution Effective {#sec-11-49-81 omnilex-key=us-al-statutes--title-11--11-49-81}
Such resolution shall designate the sum or sums ascertained to be the reasonable charge to be paid by such county for being relieved of the burden of the control, management, supervision, repair, maintenance and improvement of such street or streets or part thereof designated in said resolution, and no such resolution shall become effective until and unless the county shall by appropriate action of its county commission pay or contract to pay such sum or sums as may be designated in such resolution.
*(Acts 1921, Ex. Sess., No. 37, p. 50; Code 1923, §2257; Code 1940, T. 37, §662.)*
#### **Article 6** Vacation of Streets for Erection of Public Buildings, Etc
##### **§ 11-49-100** Adoption of Ordinance for Vacation of Street and Erection of Public Building, Etc., Thereon - Authorized Generally {#sec-11-49-100 omnilex-key=us-al-statutes--title-11--11-49-100}
Whenever in the judgment of the council or other governing body of any town or city it is to the interest of the public convenience that a portion of any street in the limits of such city or town be vacated and discontinued as a highway and that such vacated portion should be used for the erection and maintenance in whole or in part thereon of any state, county, or municipal public building or railroad station or depot or street railroad station or depot, such city or town council or other governing body may, by ordinance duly adopted, vacate such portions of such street and discontinue its use as a public highway and permit the erection and maintenance in whole or in part thereon of a state, county, or municipal public building or railroad station or depot or street railroad station or depot.
*(Acts 1909, No. 67, p. 102; Code 1923, §2238; Code 1940, T. 37, §663.)*
##### **§ 11-49-101** Adoption of Ordinance for Vacation of Street and Erection of Public Building, Etc., Thereon - Publication of Notice as to Introduction of Ordinance and Time for Consideration Thereof by Council, Etc. - Required {#sec-11-49-101 omnilex-key=us-al-statutes--title-11--11-49-101}
No ordinance vacating a portion of a street as provided by Section 11-49-100 shall be adopted until after the expiration of 30 days after its first introduction, and after it has been introduced it shall be published in some newspaper published in the city or town for two successive weeks, and such publication shall also contain a statement of the time when it will be considered and that objections to its passage may then be heard by the council or other governing body; provided, however, that if the city or town has no newspaper published therein, such publication shall be made in some newspaper of general circulation published within the county where such city or town is located.
If, for any reason, the ordinance is not acted on at the time stated in the said notice, it may be postponed to the next regular meeting of the council or other governing body and may thereafter be postponed by the council or other governing body to subsequent regular meetings.
*(Acts 1909, No. 67, p. 102; Code 1923, §2242; Code 1940, T. 37, §667; Acts 1949, No. 450, p. 655.)*
##### **§ 11-49-102** Adoption of Ordinance for Vacation of Street and Erection of Public Building, Etc., Thereon - Publication of Notice as to Introduction of Ordinance and Time for Consideration Thereof by Council, Etc. - Payment of Costs Thereof {#sec-11-49-102 omnilex-key=us-al-statutes--title-11--11-49-102}
The state, county, or municipality or the railroad or street railroad company or corporation for whose use as a site in whole or in part for a public building or a railroad station or depot or street railroad station or depot the vacation is proposed to be made shall pay the cost of such publication and notice.
*(Acts 1909, No. 67, p. 102; Code 1923, §2243; Code 1940, T. 37, §668.)*
##### **§ 11-49-103** Adoption of Ordinance for Vacation of Street and Erection of Public Building, Etc., Thereon - Two-Thirds Vote of Council, Etc., Required {#sec-11-49-103 omnilex-key=us-al-statutes--title-11--11-49-103}
Any ordinance for the vacation of a part of a street and erection of buildings thereon as is provided for in Section 11-49-100 shall be adopted only by a two-thirds vote of the council or other governing body.
*(Acts 1909, No. 67, p. 102; Code 1923, §2240; Code 1940, T. 37, §665.)*
##### **§ 11-49-104** Portion of Street to Remain Open to Travel and Traffic {#sec-11-49-104 omnilex-key=us-al-statutes--title-11--11-49-104}
A sufficiently ample portion of the highway or thoroughfare which such street in whole or in part constitutes shall remain open to accommodate the travel and traffic of the owners of abutting property and of the general public, and not more than one half of the width of such highway or thoroughfare shall be vacated for the purposes mentioned in Section 11-49-100.
*(Acts 1909, No. 67, p. 102; Code 1923, §2239; Code 1940, T. 37, §664.)*
##### **§ 11-49-105** Property Rights in Vacated Portion of Street {#sec-11-49-105 omnilex-key=us-al-statutes--title-11--11-49-105}
The fee of such vacated portion of a street shall remain in the city or town, but the council or other governing body may grant the right to maintain thereon a state, county, or municipal public building or a railroad station or depot or street railroad station or depot so long and only so long as the same shall be used for the purpose for which it was vacated.
*(Acts 1909, No. 67, p. 102; Code 1923, §2241; Code 1940, T. 37, §666.)*
##### **§ 11-49-106** Liability for Damages for Vacation of Street {#sec-11-49-106 omnilex-key=us-al-statutes--title-11--11-49-106}
The party for whom the street may be vacated under this article shall be liable to the owners of property adjacent thereto in any civil action for any special damages suffered by them.
*(Acts 1909, No. 67, p. 102; Code 1923, §2244; Code 1940, T. 37, §669.)*
### **Chapter 49A** Public Transportation Service in Class 3 Municipalities
##### **§ 11-49A-1** Legislative Findings and Purpose {#sec-11-49a-1 omnilex-key=us-al-statutes--title-11--11-49A-1}
The legislature has found and determined and does hereby declare that in Class 3 municipalities the following conditions exist:
The legislature does hereby further declare its intention, by the passage of this chapter, to promote public mass transportation in such municipalities through the authorization of public corporations, as agencies of the State of Alabama, with the powers conferred by this chapter.
*(Acts 1979, No. 79-777, p. 1380, §1.)*
##### **§ 11-49A-2** Definitions {#sec-11-49a-2 omnilex-key=us-al-statutes--title-11--11-49A-2}
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of clear implication herein otherwise, be given the following respective interpretations herein:
(1) APPLICANT. A natural person who files a written application with the governing body of any municipality to which this chapter applies all in accordance with the provisions of Section 11-49A-4.
(2) AUTHORITY. A public corporation organized pursuant to the provisions of this chapter.
(3) AUTHORIZING MUNICIPALITY. Any municipality the governing body of which shall have adopted an authorizing resolution.
(4) AUTHORIZING RESOLUTION. A resolution, adopted by the governing body of any municipality to which this chapter applies all in accordance with the provisions of Section 11-49A-4, that authorizes the incorporation of an authority.
(5) BOARD. The board of directors of an authority.
(6) BONDS. Shall include bonds, notes, and certificates representing an obligation to pay money.
(7) CHIEF EXECUTIVE OFFICER. With respect to any municipality, the mayor, president of the board of commissioners, or other chief executive officer of such municipality.
(8) COUNTY. Any county in the state.
(9) DIRECTOR. A member of the board of directors of the authority.
(10) GOVERNING BODY. Court of county commissioners, board of revenue, or other like governing body with respect to a municipality, its city or town council, board of commissioners, or other like governing body.
(11) INCORPORATORS. The persons forming a public corporation organized pursuant to the provisions of this chapter.
(12) MUNICIPALITY. An incorporated city or town of the state.
(13) PERSON. Unless limited to a natural person by the context in which it is used, includes a public or private corporation, a municipality, a county, or an agency, department, or instrumentality of the state or of a county or municipality.
(14) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the by-laws, and the minutes of proceedings of the board of an authority are kept.
(15) PROPERTY. Includes real and personal property, and interests therein.
(16) PUBLIC TRANSPORTATION SERVICE. Includes all service involved in the transportation of passengers for hire by means of street railway, elevated railway, motor vehicles or other means of conveyance generally associated with or developed for mass surface or subsurface transportation of the public, but does not include any service involved in transportation by taxicab, airport limousine, or industrial bus.
(17) TRANSIT SYSTEM. Includes land, plants, systems, facilities, buildings, garages, vehicles of all types, rails, lines and any combination of any thereof, used or useful or capable of future use in furnishing public transportation service, and all other property deemed necessary or desirable by an authority for use in furnishing public transportation service.
(18) STATE. The State of Alabama.
*(Acts 1979, No. 79-777, p. 1380, §2.)*
##### **§ 11-49A-3** Meaning of “Herein,” Etc.; Construction of Definitions {#sec-11-49a-3 omnilex-key=us-al-statutes--title-11--11-49A-3}
The following provisions shall be applied wherever appropriate herein:
“Herein,” “hereby,” “hereunder,” “hereof,” and other equivalent words refer to this chapter as an entirety and not solely to the particular section or portion thereof in which any such word is used.
The definitions set forth in Section 11-49A-2 shall be deemed to include both singular and plural and to cover all genders.
*(Acts 1979, No. 79-777, p. 1380, §3.)*
##### **§ 11-49A-4** Application; Resolution of Denial or Approval by Governing Body {#sec-11-49a-4 omnilex-key=us-al-statutes--title-11--11-49A-4}
A public corporation may be organized pursuant to the provisions of this chapter in any Class 3 municipality. In order to incorporate such a public corporation, any number of natural persons, not less than three, shall first file a written application with the governing body of the municipality which application shall:
(1) Contain a statement that the authority proposes to render public transportation service in such county;
(2) State the proposed location of the principal office of the authority, which shall be within the municipality where such application is filed;
(3) State that each of the applicants is a duly qualified elector of the municipality where such application is filed; and
(4) Request that such governing body adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-49A-5.
Such applications shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application with them in accordance with the provisions of this section, the governing body of the municipality with which the application was filed shall review the contents of the application and shall adopt resolutions either (a) denying the application or (b) declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-49A-5, provided, however, that the contents of the certificate of incorporation shall be approved by the municipal governing body. Each governing body with which an application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1979, No. 79-777, p. 1380, §4.)*
##### **§ 11-49A-5** Certificate of Incorporation - Filing; Contents; Signing and Acknowledging; Additional Documents; Notice to Secretary of State {#sec-11-49a-5 omnilex-key=us-al-statutes--title-11--11-49A-5}
Within 40 days following the adoption of an authorizing resolution by the governing body the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the county in which the municipality is located, a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided.
The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector of the authorizing municipality;
(2) The name of the authority (which shall be “_____ Transit Authority”, with the insertion of the name of the authorizing municipality);
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-49A-20, that fact shall be stated);
(4) The name of the authorizing municipality, together with the date on which the governing bodies thereof adopted authorizing resolutions;
(5) The location of the principal office of the authority, which shall be in the authorizing municipality;
(6) That the authority is organized pursuant to the provisions of this chapter for the purpose of supplying public transportation service in the authorizing municipality and in the county and in any other municipality in the county in which the authorizing municipality is located and in any other county in the state; and
(7) Any other matter relating to the authority that the incorporators or the authorizing municipality may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgements to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (a) a copy of the application as filed with the governing body of the authorizing municipality in accordance with the provisions of Section 11-49A-4, (b) a certified copy of the authorizing resolution adopted by the governing body of the authorizing municipality, and (c) a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. Upon the filing for record of the said certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1979, No. 79-777, p. 1380, §5.)*
##### **§ 11-49A-6** Certificate of Incorporation - Amendments; Resolution; Application; Denial or Approval of Governing Body; Filing {#sec-11-49a-6 omnilex-key=us-al-statutes--title-11--11-49A-6}
The certificate of incorporation of any authority incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section, provided that the contents of any amendment are first approved by the municipal governing body which shall have the authority to recommend requirements with respect to either any amendment or the original certificate of incorporation. The board of directors of the authority shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chairman of the board or other chief executive officer of the authority and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the authorizing municipality, requesting such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman or other chief executive officer may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of the authorizing municipality pursuant to the foregoing provisions of this section, such governing body shall review the said application and shall adopt resolutions either denying the said application or authorizing the proposed amendment. Such governing body shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon said application is taken.
Within 40 days following the adoption of a resolution approving the proposed amendment by that governing body the chairman of the board or other chief executive officer of the authority and the secretary of the authority shall sign, and file for record in the office of the judge of probate of the county in which the municipality is located, a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of said resolution by the board and by the governing body of the authorizing municipality and setting forth the said proposed amendment.
*(Acts 1979, No. 79-777, p. 1380, §6.)*
##### **§ 11-49A-7** Organization of Authority; Board of Directors; Election; Terms; Vacancies; Qualifications; Expenses and Compensation; Removal {#sec-11-49a-7 omnilex-key=us-al-statutes--title-11--11-49A-7}
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. The board shall consist of six directors. Each director shall be elected by the governing body of the authorizing municipality. The initial term of office of three of the directors elected by the governing body of the authorizing municipality shall begin immediately upon their election and shall end at 12:01 A.M., on the second anniversary date of the filing for record of the certificate of incorporation of the authority. The initial term of office of the remaining directors elected by the governing body of the municipality shall begin immediately upon their election and shall end at 12:01 A.M., on the fourth anniversary date of such filing. Thereafter, the term of office of each such director shall be six years. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by the governing body of the authorizing municipality. Each election of a director, whether for a full term or to complete an unexpired term, shall be made not earlier than 30 days prior to the date on which such director is to take office as such. No officer or employee of the state or of any county or municipality shall, during his tenure as such officer, be eligible to serve as a director. Each director must be a duly qualified elector of the authorizing municipality. Directors shall be eligible for re-election. Each director shall be reimbursed for expenses actually incurred by him in and about the performance of his 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 $10.00 per meeting attended but not to exceed $250.00 per year. The chairman shall, if said certificate so provides, be compensated in an additional amount not to exceed $500.00 per year. 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, Constitution of Alabama 1901, and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175.
*(Acts 1979, No. 79-777, p. 1380, §7.)*
##### **§ 11-49A-8** Powers of Authority {#sec-11-49a-8 omnilex-key=us-al-statutes--title-11--11-49A-8}
The authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be perpetual, subject to the provisions of Section 11-49A-20) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil suits and actions and to defend suits against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(5) To acquire, receive, and take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, real, personal, or mixed, whether located in one or more counties or municipalities and whether located within or outside the authorizing municipality;
(6) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted hereunder;
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate transit systems, whether located in one or more municipalities within the state, or within the counties in which such municipalities are located; and without any requirement that such transit systems be interconnected or otherwise constitute an integrated operational unit, and to acquire real and personal property, franchises, and easements deemed necessary or desirable in connection therewith;
(8) To provide public transportation service within a county in any part thereof, upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe;
(9) To sell and issue bonds of the authority with prior approval of the municipal governing body in order to provide funds for any corporate function, use, or purpose, any such bonds to be payable solely from the sources specified in Section 11-49A-10;
(10) To assume obligations secured by a lien on, or payable out of or secured by a pledge of the revenues from, any transit system or any part thereof, that may be acquired by the authority, any obligation so assumed to be payable by the authority solely from the sources from which bonds of the authority may be made payable pursuant to the provisions of Section 11-49A-10;
(11) To pledge for payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable as herein provided;
(12) To execute and deliver, in accordance with the provisions of this section and of Sections 11-49A-10 and 11-49A-11, mortgages and deed of trust and trust indentures, or either;
(13) To exercise the power of eminent domain in the manner provided in and subject to the provisions of Sections 18-1A-1 through 18-3-22, provided however, that this clause shall not be deemed to authorize the authority to acquire, without the consent of the owner or owners thereof, any transit system from which public transportation service is at the time being furnished;
(14) To expend funds for the purchase or lease of materials, equipment, supplies, or other personal property without compliance with the provisions of Sections 41-16-50, 41-16-51, 41-16-53 through 41-16-61, and 41-16-63, that might otherwise be applicable, but only where the expenditure involves less than $2,000.00;
(15) Without regard to any provisions of Sections 41-16-50, 41-16-51, 41-16-53 through 41-16-61, and 41-16-63, at the option of any local civil service system in a Class 3 municipality, to appoint, employ, contract with, and provide for the compensation of, such officers, employees, and agents, including but without limitation to engineers, attorneys, management consultants, and fiscal advisers, as the business of the authority may require and at its option to provide a system of disability pay, employees insurance, retirement compensation and pensions, or any of them;
(16) To make and enforce reasonable rules and regulations governing the use of any transit system owned or controlled by the authority;
(17) To provide for such insurance as the board may deem advisable;
(18) To invest any funds of the authority that the board may determine are not presently needed in the operation of its properties in bonds of the United States of America, bonds of the state, bonds of any county or municipality, and interest-bearing bank deposits, or any thereof;
(19) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any county, municipality, or other political subdivision of the state and any public corporation organized under the laws of the state and to make such contracts with them, or any of them, including agreeing with the terms of any federal statute or regulation as the board may deem advisable to accomplish the purposes for which the authority was established;
(20) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any transit system of the authority;
(21) To sell and convey, with or without valuable consideration, any of its transit systems or any portion of any thereof, to any one or more counties, municipalities, or public corporations organized under the laws of the state, which have the corporate power to operate the system, or portions thereof, so conveyed and the property and income of which are not subject to taxation; provided, that any such sale and conveyance may be made only with the consent of the authorizing municipality, such consent to be evidenced by a resolution adopted by the governing body of such municipality, and only if any such conveyance would not constitute a breach of any then outstanding mortgage and deed of trust, trust indenture, or other agreement to which the authority is a party;
(22) To enter into a management agreement or agreements with any person for the management by or for the authority of any transit system upon such terms and conditions as may be mutually agreeable; and
(23) To fix and revise from time to time reasonable rates, fees, and other charges for public transportation service furnished or to be furnished by any transit system owned or operated by the authority, and to collect all charges made by it.
*(Acts 1979, No. 79-777, p. 1380, §8.)*
##### **§ 11-49A-9** Rates for Public Transportation Service {#sec-11-49a-9 omnilex-key=us-al-statutes--title-11--11-49A-9}
Rates, fees, and charges for public transportation service rendered by the authority from any of its transit systems shall be fixed and from time to time revised as at all times to provide funds that, when added to all other revenues (including tax proceeds) anticipated to be received by the authority, will be at least sufficient:
(1) To pay the cost of operating, maintaining, repairing, replacing, extending, and improving systems from which such services are rendered;
(2) To pay the principal of and the interest on all bonds issued and obligations assumed by the authority, that are payable out of the revenues derived from operation of those systems, as the said principal and interest become due and payable;
(3) To create and maintain such reserve for the foregoing purposes or any of them as may be provided in any mortgage and deed of trust or trust indenture executed by the authority hereunder or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of any such system; and
(4) To make such annual payments, if any, to the United States of America or any agency or instrumentality thereof, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state and any public corporations organized under the laws of the state as the authority may have contracted to make.
*(Acts 1979, No. 79-777, p. 1380, §9.)*
##### **§ 11-49A-10** Bonds - Signature and Seal; Form and Terms; Sale; from What Sources Payable; Trust Indentures, Mortgages, Etc {#sec-11-49a-10 omnilex-key=us-al-statutes--title-11--11-49A-10}
All bonds issued by the authority shall be signed by the chairman of its board or other chief executive officer and attested by its secretary, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman of its board or other chief executive officer; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chairman of its board or other chief executive officer may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same. Any such bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the authority may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds issued or obligations assumed by the authority may thereafter at any time (whether before, at or after maturity of any such principal and whether at, after or not exceeding six months prior to the maturity of any such interest) and from time to time be refunded by the issuance of refunding bonds of the authority, which may be sold by the authority at public or private sale at such price or prices as may be determined by its board to be most advantageous, or which may be exchanged for the bonds or other obligations to be refunded. The authority may pay all expenses, premiums and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source. All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of any county or municipality; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority. Any bonds issued by the authority shall be limited or special obligations of the authority payable solely out of the revenues of the authority specified in the proceedings authorizing those bonds. Any such proceedings may provide that the bonds therein authorized shall be payable solely from that one or combination of the following sources as may be set forth in any resolution of the board authorizing the issuance of such bonds: (a) any tax proceeds appropriated, allocated or made payable (in whole or in part) to such authority by or pursuant to any act of the legislature of the state or by or pursuant to any ordinance, resolution or order of the county in which the authority is authorized to furnish public transportation service or any municipality located in such county, and (b) the revenues derived from the operation of all transit systems owned by the authority or solely out of the revenues from the operation of any one or more of such systems or parts thereof, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems of the authority. The authority may pledge for the payment of any of its bonds the revenues from which such bonds are payable, and may execute and deliver a trust indenture evidencing any such pledge or a mortgage and deed of trust conveying as security for such bonds the transit systems, or any part of any thereof, the revenues or any part of the revenues from which are so pledged. Any mortgage and deed of trust or trust indenture made by the authority may contain such agreements as the board may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage and deed of trust or affected by such trust indenture, and respecting the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made; provided, that no such instrument shall be subject to foreclosure.
*(Acts 1979, No. 79-777, p. 1380, §10.)*
##### **§ 11-49A-11** Bonds - Contracts as Security for Payment {#sec-11-49a-11 omnilex-key=us-al-statutes--title-11--11-49A-11}
As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any transit system owned by it, or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from such system, for the disposition and application of its gross revenues or any part thereof, and for any other act or series of acts not inconsistent with the provisions of this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from such system, when added to all other moneys of the authority available therefor, will be sufficient to operate such system, maintain the same in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from such revenues, and maintain such reserve as may be deemed appropriate for the protection of the bonds, the efficient operation of such system, and the making of replacements thereof and capital improvements thereto. Any contract pursuant to the provisions of this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust, or trust indenture made by the authority hereunder.
*(Acts 1979, No. 79-777, p. 1380, §11.)*
##### **§ 11-49A-12** Statutory Mortgage Lien; Creation; Filing of Notice {#sec-11-49a-12 omnilex-key=us-al-statutes--title-11--11-49A-12}
Any resolution of the board or trust indenture under which bonds may be issued pursuant to the provisions of this chapter may contain provisions creating a statutory mortgage lien, in favor of the holders of such bonds and of the interest coupons applicable thereto, on the transit systems, or any thereof (including any after-acquired property) out of the revenues from which such bonds are made payable. The said resolution of the board or the said trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of such transit system, or any thereof, may be located of a notice containing a brief description of such systems, a brief description of such bonds, and a declaration that said statutory mortgage lien has been created for the benefit of the holders of such bonds and the interest coupons applicable thereto, upon such systems, including any additions thereto and extensions thereof. Each judge of probate shall receive, record and index any such notice filed for record in his office. The recording of such notice, as herein provided, shall operate as constructive notice of the contents thereof.
*(Acts 1979, No. 79-777, p. 1380, §12.)*
##### **§ 11-49A-13** Use of Bond Proceeds {#sec-11-49a-13 omnilex-key=us-al-statutes--title-11--11-49A-13}
All moneys derived from the sale of any bonds issued by the authority shall be used solely for the purpose or purposes for which the same are authorized and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, engineering, legal, and other expenses incurred in connection with the issuance of the bonds;
(2) In the case of bonds issued to pay costs of acquiring or constructing all or any part of a transit system interest on such bonds (or, if a part only of any series of bonds is issued for acquisition or construction purposes, interest on that portion of the bonds of that series that is issued to pay such acquisition or construction costs) prior to and during such acquisition or construction and for not exceeding one year after completion of such acquisition or construction; and
(3) In the case of bonds issued for the purpose of refunding principal and interest, or either, with respect to bonds issued or obligations assumed by the authority, any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded.
*(Acts 1979, No. 79-777, p. 1380, §13.)*
##### **§ 11-49A-14** Powers of Localities, Agencies, Etc {#sec-11-49a-14 omnilex-key=us-al-statutes--title-11--11-49A-14}
For the purpose of securing public transportation or aiding or cooperating with the authority in the planning, development, undertaking, construction, acquisition, extension, improvement, operation, or protection of transit systems, any county, municipality or other political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms and with or without consideration, as it may determine:
(1) Lend or donate money to, or perform services for the benefit of, the authority;
(2) Donate, sell, convey, transfer, lease, or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any transit systems, any interest in any thereof, and any franchise;
(3) Provide that all or a portion of the taxes or funds available or to become available to, or required by law to be used by it for public transportation service or for the support of transit systems, be transferred or paid directly to the authority as such funds become available; and
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that may be necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, acquisition, or operation of transit systems.
*(Acts 1979, No. 79-777, p. 1380, §14.)*
##### **§ 11-49A-15** Exemption from Taxes, Fees, and Costs {#sec-11-49a-15 omnilex-key=us-al-statutes--title-11--11-49A-15}
The property and income of the authority, all bonds issued by the authority, the income from such bonds, conveyances by or to the authority, and leases, mortgages, and deeds of trust by or to the authority shall be exempt from all taxation in the State of Alabama. The authority shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities that an authority may engage in. The authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Acts 1979, No. 79-777, p. 1380, §15.)*
##### **§ 11-49A-16** Exemption from Additional Proceedings, Regulation, Etc {#sec-11-49a-16 omnilex-key=us-al-statutes--title-11--11-49A-16}
This chapter is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions. Except as in this chapter expressly otherwise provided, no proceeding, notice, or approval shall be required for the incorporation of any authority or the amendment of its certificate of incorporation, the acquisition of any property or transit system, or the issuance of any bonds, mortgage and deed of trust, or trust indenture. The authority, every transit system of the authority, any public transportation service provided by the authority, and the rates and charges thereof shall be exempt from all jurisdiction of, and all regulation and supervision by, the Public Service Commission. Neither a public hearing nor the consent of the state Department of Finance shall be prerequisite to the issuance of bonds by the authority.
*(Acts 1979, No. 79-777, p. 1380, §16.)*
##### **§ 11-49A-17** Use of Rights-of-Way {#sec-11-49a-17 omnilex-key=us-al-statutes--title-11--11-49A-17}
Each authority is hereby authorized to use the rights-of-way of all public roads in the state without securing the prior approval of the state or of its agencies or departments or the governing body of said county and subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama; provided, however, that nothing herein shall be construed to exempt any authority from the requirements of Section 23-1-4; and provided further, that the said authority shall have the duty to restore at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in constructing a transit system or performing any of its other corporate functions.
*(Acts 1979, No. 79-777, p. 1380, §17.)*
##### **§ 11-49A-18** Annual Budget; Amendments; Annual Audit {#sec-11-49a-18 omnilex-key=us-al-statutes--title-11--11-49A-18}
Within 30 days of the beginning of the fiscal year of an authority, the board shall adopt a budget for such fiscal year. Any such budget may be amended by a resolution of the board from time to time and at any time. Within 30 days following the close of each fiscal year the authority shall cause an audit of its books and records to be made for such fiscal year by an independent certified public accountant. Within 90 days following the close of each fiscal year the authority will furnish a copy of such audit to the governing body of the authorizing municipality.
*(Acts 1979, No. 79-777, p. 1380, §18.)*
##### **§ 11-49A-19** Dissolution of Authority; Apportionment of Property {#sec-11-49a-19 omnilex-key=us-al-statutes--title-11--11-49A-19}
At any time when the authority has no bonds or other obligations outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of the said resolution in the office of the judge of probate of the county in which the authorizing municipality is located, the authority shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to, and be divided and apportioned as follows: Title to real estate shall vest in the county or municipality, as the case may be, in which the said real estate is located, and the title to tangible personal property (including cash on hand and in banks), accounts receivable, choses in action, and other intangible property (other than tangible interest in land) shall vest in the authorizing municipality.
*(Acts 1979, No. 79-777, p. 1380, §19.)*
##### **§ 11-49A-20** Incorporation of Additional Authorities in Same County Prohibited {#sec-11-49a-20 omnilex-key=us-al-statutes--title-11--11-49A-20}
The existence of an authority incorporated under the provisions of this chapter, shall prevent the subsequent incorporation hereunder of another authority in the same county.
*(Acts 1979, No. 79-777, p. 1380, §20.)*
### **Chapter 49B** Public Transportation Service in Class I Municipalities
##### **§ 11-49B-1** Declaration of Purpose and Legislative Findings {#sec-11-49b-1 omnilex-key=us-al-statutes--title-11--11-49B-1}
The Legislature finds that it is estimated that by the year 2040, 40 percent of the economy of this nation, both people and jobs, will be located in a 14-state region between Texas and Virginia. Alabama, and in particular the Class 1 municipality and surrounding counties, will be in the very center of this geographic spread. This center of the growth pattern when combined with our educational facilities, quality of life, abundance of natural and cultural resources, steady economic growth, range of housing options, quality health care, climate, affordability, and accessibility provides this region with an unprecedented opportunity to attract new business both service based and manufacturing. It, therefore, is the intent of this chapter to take advantage of this growth opportunity by providing for a unified, coordinated, centrally orchestrated, genuinely regional system of public transportation embracing services in the county where a Class 1 municipality is located and possibly neighboring counties in the future.
*(Acts 1997, No. 97-678, p. 1308, §1.)*
##### **§ 11-49B-2** Definitions {#sec-11-49b-2 omnilex-key=us-al-statutes--title-11--11-49B-2}
The words, terms, and phrases defined below shall have the following meanings:
(1) APPLICANT. A natural person who files a written application with the governing body of any county to which this chapter applies and with a municipality in the county.
(2) AUTHORITY. A public corporation organized pursuant to this chapter.
(3) AUTHORIZING COUNTY. Any county where a Class 1 municipality is located whose governing body adopts an authorizing resolution.
(4) AUTHORIZING MUNICIPALITY. Any Class 1 municipality whose governing body adopts an authorizing resolution.
(5) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of the county where the Class 1 municipality is located or by the Class 1 municipality in which an authority may be incorporated.
(6) BOARD. The board of directors of an authority.
(7) BONDS. Bonds, notes, and certificates representing an obligation to pay money.
(8) COUNTY. Any county in the state.
(9) DIRECTOR. A member of the board of directors of the authority.
(10) GOVERNING BODY. The county commission of a county or other like governing body, or the city council of a municipality or like governing body.
(11) INCORPORATORS. The persons forming a public corporation organized pursuant to this chapter.
(12) MUNICIPALITY. An incorporated city or town of the state.
(13) PARTICIPATING MUNICIPALITY. Any municipality in an authorizing county, other than the principal municipality, which is providing funds for the authority, pursuant to resolution, contract, or otherwise.
(14) PERSON. Unless limited to a natural person by the context in which it is used, includes a public or private corporation, municipality, county, agency, department, or instrumentality of the state or of a county or municipality.
(15) PRINCIPAL MUNICIPALITY. The municipality in an authorizing county having the largest population according to the last or any subsequent federal decennial census.
(16) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments to the certificate of incorporation, bylaws, and the minutes of proceedings of the board of an authority are kept.
(17) PROPERTY. Real and personal property and any interest in the property.
(18) PUBLIC TRANSPORTATION SERVICE. All service involved in the transportation of passengers for hire by means of street railway, elevated railway, subway, underground railroad, motor vehicles, or other means of conveyance generally associated with or developed for mass surface or sub-surface transportation of the public, but does not include any service involved in transportation by taxicab, airport limousine, or industrial bus.
(19) TRANSIT SYSTEM. Land, plants, systems, facilities, buildings, garages, vehicles of all types, rails, lines, and combination of any thereof, used or useful or capable of future use in furnishing public transportation service, and all other property deemed necessary or desirable by an authority for use in furnishing public transportation service.
(20) STATE. The State of Alabama.
*(Acts 1997, No. 97-678, p. 1308, §2.)*
##### **§ 11-49B-3** Filing of Application; Authorization of Incorporation by Governing Body of Authorizing County {#sec-11-49b-3 omnilex-key=us-al-statutes--title-11--11-49B-3}
(a) A public corporation may be organized pursuant to this chapter in any Class 1 municipality. Not less than three natural persons may incorporate a public corporation by filing a written application with the governing body of the county and with the governing body of the Class 1 municipality, which application shall:
(1) Contain a statement that the authority proposes to render public transportation service in the Class 1 municipality and surrounding counties.
(2) State the proposed location of the principal office of the authority, which shall be within the county in which the application is filed.
(3) State that each of the applicants is a duly qualified elector of the county where the application is filed.
(4) Request that the governing body adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation pursuant to Section 11-49B-4.
(b) The applications shall, except in their designation of the governing body to which they are addressed and with which they are filed, be identical, and shall be accompanied by any supporting documents or evidence that the applicants consider appropriate. As promptly as may be practicable after the filing of the applications with them in accordance with the provisions of this section, the governing bodies of the county and the municipality with which the application was filed shall review the contents of the application and shall adopt resolutions either:
(1) Denying the application.
(2) Declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation under Section 11-49B-4.
(c) Each governing body with which an application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of the governing body at which final action upon the application is taken.
*(Acts 1997, No. 97-678, p. 1308, §3.)*
##### **§ 11-49B-4** Procedure to Incorporate Contents and Execution of Certificate of Incorporation {#sec-11-49b-4 omnilex-key=us-al-statutes--title-11--11-49B-4}
Within 40 days after the adoption of an authorizing resolution by the last governing body to adopt an authorizing resolution if the governing bodies of both the county and the municipality with which the applications were filed have adopted authorizing resolutions, the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the authorizing county a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided. The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector of the authorizing county.
(2) The name of the authority which shall be “The (insert name of the authorizing municipality) Area Regional Transit Authority.”
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-49B-19, that fact shall be stated).
(4) The names of the authorizing county and the authorizing municipality, together with the dates on which the governing bodies adopted authorizing resolutions.
(5) The location of the principal office of the authority, which shall be in the authorizing county.
(6) That the authority is organized pursuant to this chapter for the purpose of supplying public transportation service in the authorizing county.
(7) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state. The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it the following:
a. A copy of each application filed with the governing bodies of the authorizing county and the authorizing municipality in accordance with Section 11-49B-3.
b. A certified copy of each of the authorizing resolutions adopted by the governing bodies of the authorizing county and the authorizing municipality.
c. A certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or similar to the name of another corporation that would lead to confusion and uncertainty.
Upon the filing for record of the certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the names set forth in the certificate of incorporation. The judge of probate shall send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1997, No. 97-678, p. 1308, §4; Act 97-896, p. 262, §1.)*
##### **§ 11-49B-5** Amendments to Certificate of Incorporation {#sec-11-49b-5 omnilex-key=us-al-statutes--title-11--11-49B-5}
The certificate of incorporation of any authority incorporated under this chapter may be amended as follows:
(1) A resolution adopted by the board of directors proposing an amendment to the certificate of incorporation.
(2) The proposed amendment shall be set forth in full in the resolution, and which may include any matters which might have been included in the original certificate of incorporation.
(3) After the adoption of the resolution proposing an amendment to the certificate of incorporation of the authority, the chair of the board or other chief executive officer, and the secretary of the authority, shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the authorizing county and with the governing body of the principal municipality, requesting each governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with any documents in support of the application as the chair or other chief executive officer may consider appropriate. The application shall, except in its designation of the governing body to which they are addressed and with which they are filed, be identical.
As promptly as may be practicable after the filing of the application with the governing bodies of the authorizing county and the principal municipality pursuant to this section, the governing bodies shall review the application and shall adopt resolutions either denying the application or authorizing the proposed amendment. Each governing body shall also cause a copy of the application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of the governing body at which the final action upon the application is taken. Within 40 days following the adoption of a resolution approving the proposed amendment by that governing body that was the last to adopt a resolution but only if the governing bodies of both the authorizing county and the principal municipality have adopted a resolution, the chair of the board or other chief executive officer of the authority and the secretary of the authority shall sign and file for record in the office of the judge of probate of the authorizing county a certificate in the name of and on behalf of the authority, under its seal, reciting the adoption of respective resolutions by the board and by the governing bodies of the authorizing county and the principal municipality and setting forth the proposed amendment.
*(Acts 1997, No. 97-678, p. 1308, §5.)*
##### **§ 11-49B-6** Board of Directors {#sec-11-49b-6 omnilex-key=us-al-statutes--title-11--11-49B-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. The board shall initially be composed of 10 directors, but may be increased to a maximum of 15 directors if additional counties join the regional system. The directors of the authority shall be appointed as follows:
(1) The president of the county commission in the county where the authority is organized shall appoint three members of the board of directors for the county commission with one appointee being an elected county official. All appointees shall be subject to confirmation by the county commission.
(2) The mayor of the Class 1 municipality shall appoint three members of the board of directors for the city with one appointee being an elected city official. All appointees shall be subject to confirmation by the city council.
(3) The president of the mayors association of the county where the authority is organized shall appoint three members of the board of directors with one being a member of the mayors association.
(4) The president of the area regional transportation authority citizens advisory committee in the Class 1 municipality shall be a member of the board.
(5) Any county that borders Jefferson County may join the regional system provided that the county shall meet all of the requirements of Section 11-49B-22, including the submittal and passage of a referendum authorizing the levy of a 1/4 percent privilege license tax against gross sales and gross receipts in the county. The president of the county commission of any county joining the regional system shall appoint one member to the board of directors of the regional system.
(b) The terms of the members of the board of directors shall be as follows:
(1) The terms of the three members appointed by the president of the county commission where the authority is organized shall expire as follows:
a. The term of the first member shall expire on September 30, 1998, and every fourth year thereafter.
b. The term of the second member shall expire on September 30, 1999, and every fourth year thereafter.
c. The term of the third member shall expire on September 30, 2000, and every fourth year thereafter.
(2) The terms of the members appointed by the mayor of the Class 1 municipality and confirmed by the city council shall expire as follows:
a. The term of the first member shall expire on September 30, 1998, and every fourth year thereafter.
b. The term of the second member shall expire on September 30, 1999, and every fourth year thereafter.
c. The term of the third member shall expire on September 30, 2000, and every fourth year thereafter.
(3) The terms of the members appointed by the president of the mayors association located in the county where the authority is organized shall expire as follows:
a. The term of the first member shall expire on September 30, 1998, and every fourth year thereafter.
b. The term of the second member shall expire on September 30, 1999, and every fourth year thereafter.
c. The term of the third member shall expire on September 30, 2000, and every fourth year thereafter.
(4) The term of all other members of the board of directors appointed by the president of the county commission of any county joining the regional system shall expire a year from October 1 of the year of their appointment, and every four years thereafter.
(c) When the term of a member expires, the appointing authority shall appoint a new member for a full term. If a vacancy occurs, within 90 days of the vacancy the appropriate appointing authority shall appoint a replacement to fill the vacancy for the remainder of the unexpired term.
(d) The appropriate appointing authority may remove a member of the board only for neglect of duty, an unexcused failure to attend more than one of the regularly scheduled meetings held in a calendar year during the term in office of the member, malfeasance, violation of this chapter, or conviction of a felony or other crime of moral turpitude.
(e) Members of the board of directors shall not receive compensation for their service on the board, and shall only receive reimbursement for actual expenses incurred in the performance of their official duties as approved by the board of directors.
*(Acts 1997, No. 97-678, p. 1308, §6; Act 97-896, p. 262, §2.)*
##### **§ 11-49B-7** Powers of Authority {#sec-11-49b-7 omnilex-key=us-al-statutes--title-11--11-49B-7}
The authority shall exercise, subject to this chapter, the following powers and duties necessary to the discharge of its powers and duties in corporate form:
(1) To have succession by its corporate name for the duration of time, which may be perpetual, subject to the provisions of Section 11-49B-19 specified in its certificate of incorporation.
(2) To sue and be sued in its own name in civil suits and actions and to defend suits against it.
(3) To adopt and make use of a corporate seal and to alter the seal at pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, receive, and take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, real, personal, or mixed, whether located in one or more counties or municipalities and whether located within or outside the authorizing county.
(6) To make, enter into, and execute contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted under this chapter.
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate transit systems, within the authorizing county and within any additional county joining the regional system, and without any requirement that the transit systems be interconnected or otherwise constitute an integrated operational unit, and to acquire real and personal property, franchises, and easements deemed necessary or desirable in connection with the system.
(8) To provide public transportation service within the authorizing county or in any part of the county upon any reasonable terms and for any reasonable rates and consideration as the board may prescribe.
(9) To provide charter service within the state upon any terms and for any consideration as the board may prescribe, and to use or operate any part of any transit system owned by the authority in service subject to the regulation and approval of the Alabama Public Service Commission.
(10) To sell and issue bonds of the authority in order to provide funds for any corporate function, use, or purpose with the bonds to be payable solely from the sources specified in Section 11-49B-9.
(11) To assume obligations secured by a lien on, or payable out of or secured by a pledge of the revenues from, any transit system or any part of the transit system that may be acquired by the authority, any obligation assumed to be payable by the authority solely from the sources from which bonds of the authority may be made payable pursuant to Section 11-49B-9.
(12) To pledge for payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable as provided by this chapter.
(13) To execute and deliver, in accordance with this section, Sections 11-49B-9 and 11-49B-10, mortgages, and deeds of trust and trust indentures, or either.
(14) To exercise the power of eminent domain in the manner provided in and subject to Chapter 5 of Title 10. The authority is not authorized to acquire without the consent of the owner any transit system from which public transportation service is currently being furnished. The authority shall not by eminent domain acquire any real property or rights owned or held by public or private railroads or utilities.
(15) To expend funds for the purchase or lease of materials, equipment, supplies, or other personal property in compliance with Article 3 of Chapter 16 of Title 41.
(16) Without regard to Article 3 of Chapter 16 of Title 41, or any law establishing a civil service or merit system that might otherwise be applicable, to appoint, employ, contract with, and provide for the compensation of, officers, employees, and agents, including, but without limitation to, engineers, attorneys, management consultants, and fiscal advisers, as the business of the authority may require, and it may provide a system of disability pay, employee insurance, retirement compensation, and pensions.
(17) To make and enforce reasonable rules and regulations governing the use of any transit system owned or controlled by the authority.
(18) To provide for any insurance as the board may deem advisable.
(19) To invest any funds of the authority that the board may determine are not presently needed in the operation of its properties in bonds of the United States of America, bonds of the state, bonds of any county or municipality, and interest-bearing bank deposits, or any combination.
(20) To cooperate with the United States of America, or its agency or instrumentality, the state, any county, municipality, or other political subdivision of the state and any public corporation organized under the laws of the state and to make contracts with them, or any of them, as the board deems advisable to accomplish the purposes for which the authority was established.
(21) To sell and convey its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any transit system of the authority.
(22) To sell and convey, with or without valuable consideration, any of its transit systems or any portion of the system, to any one or more counties, municipalities, or public corporations organized under the laws of the state, which have the corporate power to operate the system, or any portion of the system conveyed and the property and income of which are not subject to taxation. The sale and conveyance shall be made only with the consent of the authorizing county, the principal municipality, and each participating municipality, with the consent to be evidenced by a resolution adopted by the governing body of each consenting county and municipality, and only if the conveyance would not constitute a breach of any then outstanding mortgage and deed of trust, trust indenture, or other agreement to which the authority is a party.
(23) To enter into agreements with all or any part of the employees of the authority or with any groups or associations representing the employees.
(24) To enter into a management agreement or agreements with any person for the management by or for the authority of any transit system upon any mutually agreeable terms and conditions.
(25) To require that all laborers and mechanics employed by contractors or subcontractors in the performance of construction work for the authority be paid wages at rates not less than those prevailing on similar construction in the locality where the work is performed as determined by the United States Secretary of Labor or any department, agency, or instrumentality of the United States or of the state.
(26) If the authority acquires an existing transit system to enter into an arrangement necessary to protect the interest of employees of the acquired system including, without limiting the generality of the foregoing:
a. The preservation of rights, privileges, and benefits including continuation of pension rights and benefits under existing agreements.
b. The protection of individual employees against a worsening of their positions with respect to their employment.
c. Assurance of employment to the employees of acquired transit systems, except executives and administrative officers, and priority of reemployment of the employees terminated or laid off.
d. Paid training and retraining programs.
(27) To fix and revise from time to time reasonable rates, fees, and other charges for public transportation service furnished or to be furnished by any transit system owned or operated by the authority, and to collect all charges made by it.
(28) Promptly after the initial 10 members of the board of directors are appointed, the board of directors of the authority shall prepare, adopt, and implement a set of policies that shall govern, and set standards for, the conduct of all members of the board of directors of the authority and all employees of the authority. The policy shall provide penalties for the violation of the policy. The policy shall prohibit unethical conduct and shall require the directors and employees of the authority to comply with all the provisions of the policy which shall include, but not necessarily be limited to, the provisions of the code of ethics for public officials and employees as provided for in Section 36-25-1 et seq. and rules and regulations promulgated thereunder by the State Ethics Commission. The matters to be covered by the policy shall include, but not be limited to the following:
a. The expenses for which directors and employees may be reimbursed and the method of keeping records for the expenses and the requirements for the reimbursement of the expenses.
b. Business dealings and contracts between the authority and directors or employees of the authority and business dealings between the authority and members of the family of directors or employees of the authority.
(29) Nothing in this chapter shall be construed to permit an authority to make a gift or donation of the funds of the authority to a charity.
Nothing in this chapter shall be construed to permit an authority to acquire, receive, take, hold, establish, develop, construct, reconstruct, enlarge, improve, maintain, equip, or operate any property or transit system located outside the authorizing county, except in the provision of charter service within the state.
*(Acts 1997, No. 97-678, p. 1308, §7; Act 97-896, p. 262, §3.)*
##### **§ 11-49B-8** Rates and Charges {#sec-11-49b-8 omnilex-key=us-al-statutes--title-11--11-49B-8}
Rates, fees, and charges for public transportation service rendered by the authority from any of its transit systems shall be fixed and revised to provide funds that, when added to all other revenues, including tax proceeds, anticipated to be received by the authority, will be at least sufficient:
(1) To pay the cost of operating, maintaining, repairing, replacing, extending, and improving the systems from which the services are rendered.
(2) To pay the principal and the interest on all bonds issued and obligations assumed by the authority, that are payable out of the revenues derived from operation of those systems, as the principal and interest become due and payable.
(3) To create and maintain reserve for the foregoing purposes or as may be provided in any mortgage and deed of trust or trust indenture executed by the authority or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of any system.
(4) To make annual payments, if any, to the United States of America or any agency or instrumentality, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state and any public corporations organized under the laws of the state as the authority may have contracted to make.
*(Acts 1997, No. 97-678, p. 1308, §8.)*
##### **§ 11-49B-9** Bonds of Authority {#sec-11-49b-9 omnilex-key=us-al-statutes--title-11--11-49B-9}
All bonds issued by the authority shall be signed by the chair of its board or other chief executive officer and attested by its secretary, and the seal of the authority shall be affixed to the bond, and any interest coupons applicable to the bonds of the authority shall be signed by the chair of its board or other chief executive officer. A facsimile of the signature of one, but not both, of the officers may be printed or otherwise reproduced on any of the bonds in lieu of his or her manually signing the bonds, a facsimile of the seal of the authority may be printed or otherwise reproduced on any of the bonds in lieu of being manually affixed to the bonds, and a facsimile of the signature of the chair of its board or other chief executive officer may be printed or otherwise reproduced on any interest coupons in lieu of his or her manually signing the bonds. Bonds may be executed and delivered by the authority and from time to time, shall be in such form and denominations, and of such tenor and maturities, shall contain provisions not inconsistent with this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the authority may be sold at either public or private sale in any manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds issued or obligations assumed by the authority may at any time whether before, at or after maturity of the principal and whether at, after or not exceeding six months prior to the maturity of any interest and from time to time be refunded by the issuance of refunding bonds of the authority, which may be sold by the authority at public or private sale at a price or prices as may be determined by its board to be most advantageous, or which may be exchanged for the bonds or other obligations to be refunded. The authority may pay all expenses, premiums, and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source. All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of any county or municipality. The preceding sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority. Bonds issued by the authority shall be limited or special obligations of the authority payable solely out of the revenues of the authority specified in the proceedings authorizing those bonds. The proceedings may provide that the bonds authorized shall be payable solely from one or combination of the following sources set forth in a resolution of the board authorizing the issuance of the bonds:
(1) The tax proceeds appropriated, allocated, or made payable in whole or in part to the authority by or pursuant to any act of the Legislature of the state, by or pursuant to any ordinance, resolution, or order of the county in which the authority is authorized to furnish public transportation service or any municipality located in the county.
(2) The revenues derived from the operation of all transit systems owned by the authority or solely out of the revenues from the operation of any one or more of the systems or parts of the system, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems of the authority.
(3) The authority may pledge for the payment of any of its bonds the revenues from which the bonds are payable, and may execute and deliver a trust indenture evidencing any pledge or a mortgage and deed of trust conveying as security for the bonds the transit systems, or any part of the system, the revenues or any part of the revenues from which the bonds are pledged.
The mortgage and deed of trust or trust indenture made by the authority may contain the agreements as the board may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to the mortgage and deed of trust or affected by the trust indenture, and respecting the rights, duties, and remedies of the parties to any instrument and the parties for the benefit of whom the instrument is made and no instrument shall be subject to foreclosure.
*(Acts 1997, No. 97-678, p. 1308, §9.)*
##### **§ 11-49B-10** Contracts to Secure Bonds and Assumed Obligations {#sec-11-49b-10 omnilex-key=us-al-statutes--title-11--11-49B-10}
As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may do the following:
(1) Enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any transit system owned by it, or any part of the system.
(2) Impose and collect reasonable rates for any service furnished by the system.
(3) Promulgate rules and regulations respecting any service furnished by the system.
(4) Provide for the disposition and application of its gross revenues received by the system.
(5) Do any act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured by the authority.
(6) Assure that the revenues derived from the system, when added to all other moneys of the authority, will be sufficient to operate and maintain the system in good repair and in good operating condition.
(7) Pay the principal and the interest on any bonds payable from the revenue, and maintain the reserve for the protection of the bonds, the efficient operation of the system, and the making of replacements and capital improvements for the system.
Any contract pursuant to this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust, or trust indenture made by the authority.
*(Acts 1997, No. 97-678, p. 1308, §10.)*
##### **§ 11-49B-11** Statutory Mortgage Lien {#sec-11-49b-11 omnilex-key=us-al-statutes--title-11--11-49B-11}
The resolution of the board or trust indenture that provides for the issuance of bonds may contain provisions creating a statutory mortgage lien, in favor of the holders of the bonds and of the interest coupons on the transit systems, including any after acquired property out of the revenues from which the bonds are made payable. The resolution of the board or the trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of the transit system may be located of a notice containing a brief description of the systems, a brief description of the bonds, and a declaration that the statutory mortgage lien has been created for the benefit of the holders of the bonds and the interest coupons applicable to the bonds upon the systems, including any additions or extensions to the system. Each judge of probate shall receive, record, and index the notice filed for record in his or her office. The recording of the notice shall operate as constructive notice of the contents.
*(Acts 1997, No. 97-678, p. 1308, §11.)*
##### **§ 11-49B-12** Proceeds from Sale of Bonds {#sec-11-49b-12 omnilex-key=us-al-statutes--title-11--11-49B-12}
All moneys derived from the sale of bonds issued by the authority shall be used solely for the purpose for which the bonds are authorized and any costs and expenses incidental to the bonds. The costs and expenses may include, but shall not be limited to:
(1) The fiscal, engineering, legal, and other expenses incurred in connection with the issuance of the bonds.
(2) Bonds issued to pay costs of acquiring or constructing all or any part of a transit system, interest on such bonds or, if a part only of any series of bonds is issued for acquisition or construction purposes, interest on that portion of the bonds of that series that is issued to pay the acquisition or construction costs prior to and during the acquisition or construction and not exceeding one year after completion of the acquisition or construction.
(3) Bonds issued for refunding principal and interest, or either, with respect to bonds issued or obligations assumed by the authority, any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded.
*(Acts 1997, No. 97-678, p. 1308, §12.)*
##### **§ 11-49B-13** Cooperation; Aid from Other Public Bodies {#sec-11-49b-13 omnilex-key=us-al-statutes--title-11--11-49B-13}
A county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state may, for the purpose of securing public transportation or aiding or cooperating with the authority in the planning, development, undertaking, construction, acquisition, extension, improvement, operation, or protection of transit systems, upon any terms and with or without consideration, may:
(1) Lend or donate money to, or perform services for the benefit of the authority.
(2) Donate, sell, convey, transfer, lease, or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any transit systems, any interest in any thereof, and any franchise.
(3) Provide that all or a portion of the taxes or funds available or to become available to, or required by law to be used by it for public transportation service or for the support of transit systems, be transferred or paid directly to the authority as the funds become available.
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that may be necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, acquisition, or operation of transit systems.
*(Acts 1997, No. 97-678, p. 1308, §13.)*
##### **§ 11-49B-14** Exemption from Taxation {#sec-11-49b-14 omnilex-key=us-al-statutes--title-11--11-49B-14}
(a) The property and income of the authority, all bonds issued by the authority, the income from the bonds, conveyances by or to the authority, and leases, mortgages, and deeds of trust by or to the authority shall be exempt from the following:
(1) All taxation in the State of Alabama.
(2) All taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities that an authority may engage in.
(b) The authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
(c) The employees of the authority shall pay any occupational taxes required by law, and the authority shall collect and remit the occupational taxes in accordance with existing law.
*(Acts 1997, No. 97-678, p. 1308, §14; Act 97-896, p. 262, §4.)*
##### **§ 11-49B-15** Freedom of Authority from Public Service Commission and Other State Supervision and Control {#sec-11-49b-15 omnilex-key=us-al-statutes--title-11--11-49B-15}
(a) This chapter is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions. Except as otherwise provided by this chapter, no proceeding, notice, or approval shall be required for the following:
(1) Incorporation of any authority or the amendment of its certificate of incorporation.
(2) The acquisition of any property or transit system, or the issuance of any bonds, mortgage and deed of trust, or trust indenture.
(b) The authority, every transit system of the authority, any public transportation service provided by the authority, and the rates and charges of the authority shall be exempt from all jurisdiction of, and all regulation and supervision by, the Public Service Commission. Neither a public hearing nor the consent of the state Department of Finance shall be prerequisite to the issuance of bonds by the authority.
*(Acts 1997, No. 97-678, p. 1308, §15.)*
##### **§ 11-49B-16** Use of Public Roads {#sec-11-49b-16 omnilex-key=us-al-statutes--title-11--11-49B-16}
Each authority is hereby authorized to use the rights-of-way of all public roads in the authorizing county without securing the prior approval of the state, its agencies, departments, or the governing body of the authorizing county and subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama of 1901. This chapter shall not be construed to exempt any authority from the requirements of Section 23-1-4. The authority shall have the duty to restore at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in constructing a transit system or performing any of its other corporate functions.
*(Acts 1997, No. 97-678, p. 1308, §16.)*
##### **§ 11-49B-17** Annual Budgets and Audits Required {#sec-11-49b-17 omnilex-key=us-al-statutes--title-11--11-49B-17}
Within 30 days of the beginning of the fiscal year of an authority, the board shall adopt a budget for the fiscal year. The budget may be amended by a resolution of the board at any time. Within 30 days following the close of each fiscal year the authority shall cause an audit of its books and records to be made for the fiscal year by an independent certified public accountant. Within 90 days following the close of each fiscal year, the authority shall furnish a copy of the report of the audit to the governing bodies of the authorizing county, the principal municipality, and each participating municipality.
*(Acts 1997, No. 97-678, p. 1308, §17; Act 97-896, p. 262, §5.)*
##### **§ 11-49B-18** Civil Service of Merit Systems Not Applicable {#sec-11-49b-18 omnilex-key=us-al-statutes--title-11--11-49B-18}
The employees of the authority shall not be subject to the provisions of any civil service or merit system or to the rules or regulations of any personnel board that might otherwise be applicable.
*(Acts 1997, No. 97-678, p. 1308, §18.)*
##### **§ 11-49B-19** Dissolution of Authority and Vesting of Property {#sec-11-49b-19 omnilex-key=us-al-statutes--title-11--11-49B-19}
At any time when the authority has no bonds or outstanding obligations, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of the resolution in the office of the judge of probate of the authorizing county, the authority shall be dissolved and in the event it owned any property at the time of its dissolution, the title to its properties shall pass to, and vest in the authorizing county, the principal municipality, and the participating municipalities. The county and each municipality shall have title to the property as tenant in common. The fractional interest of the authorizing county, the principal municipality, and each participating municipality in the property shall be represented by a fraction the numerator of which is the total amount of fund provided by the authorizing county and each municipality to the authority prior to its dissolution, and the denominator of which is the total amount of funds provided by the authorizing county, the principal municipality, and the participating municipalities to the authority prior to its dissolution. In making a determination of a fractional interest, funds provided by the county or a municipality in order to make available public transportation service to persons resident or employed in the county or municipality on terms not generally or uniformly available to all persons in all areas served by the authority shall not be included.
*(Acts 1997, No. 97-678, p. 1308, §19.)*
##### **§ 11-49B-20** Employee Protective Provisions {#sec-11-49b-20 omnilex-key=us-al-statutes--title-11--11-49B-20}
(a) The rights, benefits, and other employee protective conditions and remedies of Section (c) of the Urban Mass Transportation Act of 1964, as amended (49 U.S.C. 1609), as determined by the Secretary of Labor, shall apply to the operation by the authority of any public transportation service and to any contract or other arrangement for the operation of the service. If the authority acquires an existing transit system, it shall assume and observe all existing labor contracts and pension obligations. All employees of the system except executive and administrative officers, shall be transferred to and appointed as employees of the authority, subject to all rights and benefits of this section. These employees shall be given seniority credit and sick leave, vacation, insurance, and pension credit in accordance with the records or labor agreements from the acquired transit system. The authority shall assume the obligations of any transit system acquired by it with regard to wages, salaries, hours, working conditions, sick leave, health and welfare, and pension or retirement provisions for employees. The authority and the employees shall take the appropriate action necessary to have the pension trust funds, presently under the joint control of the acquired transit system and the participating employees transferred to a trust fund to be established, maintained, and administered jointly by the authority and the participating employees. No employee of any acquired transit system who is transferred to a position with the authority shall, by reason of the transfer, be placed in any worse position with respect to workers’ compensation, unemployment compensation, pension, seniority, wages, sick leave, vacation, health and welfare insurance, or any other benefits than he or she enjoyed as an employee of the acquired transportation system.
(b) Prior to commencing to operate any public transportation service, or entering into any contractual or other arrangement for the operation of the service, the authority may take the necessary action to extend to the employees of the transit system, in accordance with seniority, the first opportunity for reasonable comparable employment in any new jobs in respect to the operations for which they can qualify after a reasonable training period.
(c) Notwithstanding any other provision of law, the authority shall make deductions from wages and salaries of its employees upon receipt of authorization for the payment of:
(1) Fees, or assessments, for the payment of contributions pursuant to any health and welfare plan or pension plan.
(2) Any other purpose for which deductions may be authorized by employees of any private employer.
*(Acts 1997, No. 97-678, p. 1308, §20.)*
##### **§ 11-49B-21** Existence of an Authority Prevents Incorporation of Another by the Same County {#sec-11-49b-21 omnilex-key=us-al-statutes--title-11--11-49B-21}
The existence of an authority incorporated under this chapter shall prevent the subsequent incorporation under this chapter of another authority incorporated pursuant to authority granted by the same county.
*(Acts 1997, No. 97-678, p. 1308, §21.)*
##### **§ 11-49B-22** Taxes; Exemptions; Reporting Credit Sales; Lien Security; State Sales Tax Provisions Applicable; Charge for Collecting Tax; Voting {#sec-11-49b-22 omnilex-key=us-al-statutes--title-11--11-49B-22}
(a) The authority shall, subject to a referendum in the counties it proposes to serve, levy, in addition to all other taxes, including, but not limited to, municipal gross receipts license taxes, a 1/4 percent privilege license tax against gross sales or gross receipts, provided, however, that the rate of such tax on any person, firm, or corporation engaged in the type of business described in Section 40-23-2(4) shall be an amount equal to 1/32 percent of the gross proceeds from sales described in such section.
The gross receipts of any business and the gross proceeds of all sales which are presently exempt under the state sales and use tax statutes are exempt from the tax authorized by this chapter.
(b) The tax levied by this chapter shall be collected by the State Department of Revenue, the authority, the county, or by contract to a business that collects sales tax at the same time and in the same manner as state sales and use taxes are collected. On or prior to the date the tax is due, each person subject to the tax shall file with the department a report in the form prescribed by the department. The report shall set forth, with respect to all sales and business transactions that are required to be used as a measure of the tax levied, a correct statement of the gross proceeds of all the sales and gross receipts of all business transactions. The report shall also include items of information pertinent to the tax as the department may require. Any person subject to the tax levied by this chapter may defer reporting credit sales until after their collection, and in the event the person defers reporting them, the person shall thereafter include in each monthly report all credit collections made during the preceding month, and shall pay the tax due at the time of filing the report. All reports filed with the department under this section shall be available for inspection by the county commission, or its designee.
(c) Each person engaging or continuing in a business subject to the tax levied by this chapter, shall add to the sales price or admission fee and collect from the purchaser or the person paying the admission fee the amount due by the taxpayer because of the sale or admission. It shall be unlawful for any person subject to the tax to fail or refuse to add to the sales price or admission fee and to collect from the purchaser or person paying the admission fee the amount required to be added to the sale or admission price. It shall be unlawful for any person subject to the tax levied by this chapter to refund or offer to refund all or any part of the amount collected or to absorb or advertise directly or indirectly the absorption or refund of any portion of the tax.
(d) The tax levied by this chapter shall constitute a debt due the authority. The tax, together with any interest and penalties, shall constitute and be secured by a lien upon the property of any person from whom the tax is due or who is required to collect the tax. The department shall collect the tax, enforce this chapter, and have and exercise all rights and remedies that the state or the department has for collection of the state sales and use tax. The department may employ special counsel as is necessary to enforce collection of the tax levied by this chapter and to enforce this chapter. The department shall pay the special counsel any fees it deems necessary and proper from the proceeds of the tax collected by it for the authority.
(e) All provisions of the state sales and use tax statutes with respect to the payment, assessment, and collection of the state sales and use tax, making of reports, keeping and preserving records, penalties for failure to pay the tax, promulgating rules and regulations with respect to the state sales and use tax, and the administration and enforcement of the state sales and use tax statutes which are not inconsistent with this chapter shall apply to the tax levied under this chapter, including, without limitation, the provisions of Section 40-23-2(4). The State Commissioner of Revenue and the department shall have and exercise the same powers, duties, and obligations with respect to the tax levied under this chapter that are imposed on the commissioner and department by the state sales and use tax statutes. All provisions of the state sales and use tax statutes that are made applicable by this chapter to the tax levied under this chapter, and to the administration and enforcement of this chapter, are incorporated by reference and made a part of this chapter as if fully set forth herein.
(f) The department shall charge the authority for collecting the tax levied under this chapter in an amount or percentage of total collections as may be agreed upon by the commissioner and the authority. The charge shall not exceed five percent of the total amount of the tax collected in the county. The charge may be deducted each month from the gross revenues from the tax before certification of the amount of the proceeds due the authority for that month. The Commissioner of Revenue shall pay into the State Treasury all amounts collected under this chapter, as the tax is received by the department on or before the first day of each successive month. The commissioner shall certify to the State Comptroller the amount collected and paid into the State Treasury for the benefit of the authority during the month immediately preceding the certification. The State Comptroller shall issue a warrant each month payable to the authority in an amount equal to the certified amount which shall be paid into the authority general fund to be used to fund the authority.
(g) This chapter shall be inoperative and void unless it is approved by a majority of the qualified electors of the county who vote thereon at the next general, primary, or special election in the county. The election shall be held and conducted as are elections on constitutional amendments on a date determined by the county commission. Notice of the election shall be given by the judge of probate and shall be published once a week for three successive weeks before the day of the election. On the ballots used at the election, the proposition to be voted on shall be stated substantially as follows:
“Do you favor the local law authorizing the authority to levy a 1/4 percent sales tax to be used to fund the transportation authority?
“Yes ______ No______.”
If a majority of the votes cast at the election are affirmative votes, this chapter shall have full force and effect on the first day of the second month following the election. If a majority of the votes cast are negative votes, this chapter shall have no further effect. The judge of probate shall certify the results of the election to the Secretary of State.
(h) The failure of the referendum in one county shall not preclude the establishment of an authority, and subsequent referendums may be held pursuant to this section without prior legislative approval.
*(Acts 1997, No. 97-678, p. 1308, §22; Act 98–628, p. 1379, §1.)*
##### **§ 11-49B-23** Repeal of Conflicting Laws; Transfer of Funds; Assumption of Assets and Liabilities {#sec-11-49b-23 omnilex-key=us-al-statutes--title-11--11-49B-23}
(a) On the first day of the second month following the election as called by the county commission at which a majority of the votes cast at the election are affirmative votes, as provided in this chapter, all laws or parts of laws which conflict with this chapter are repealed, and specifically Act 993, H. 1089, 1971 Regular Session (Acts 1971, p. 1787), as amended, is repealed.
(b) On the first day of the second month following the election as called by the county commission at which a majority of the votes cast at the election are affirmative votes as provided in this chapter, Act 87-449, H. 543, 1987 Regular Session (Acts 1987, p. 663) is repealed. All payments due to any authority created under Act 993 of the 1971 Regular Session, as amended, (hereafter called the “previous authority”), and which are required or authorized by Act 87-449, 1987 Regular Session, shall be paid to the authority on a pro rata basis through the last day of the first month following the election as called by the county commission at which a majority of the votes cast are affirmative votes as provided in this chapter. The tax collector of the county in which the authority incorporated pursuant to this chapter is organized shall not disburse any funds to the previous authority which would apply to the period after the last day of the first month following the election.
(c) On the first day of the second month following the election at which a majority of the votes cast are affirmative votes as provided in this chapter, and upon the filing of a certificate of incorporation of an authority pursuant to this chapter, the certificate of incorporation of any previous authority is repealed. The authority created pursuant to this chapter shall be the successor in all respects to the previous authority and shall assume all of the assets and liabilities of the previous authority as of the date of the filing of a certification of incorporation pursuant to this chapter. Any and all persons, entities, or governmental agencies, whether city, county, state, or federal, which paid or were obligated to pay the previous authority are hereby authorized and directed to pay any sums due from the person, entity, or governmental agency to the authority incorporated pursuant to this chapter.
*(Act 97-896, p. 262, §6.)*
### **Chapter 49C** Joint Operation of Public Transportation, Fire Fighting, Law Enforcement, and Public Works in Class 8 Municipalities
##### **§ 11-49C-1** Agreements with Contiguous Municipalities in Other States {#sec-11-49c-1 omnilex-key=us-al-statutes--title-11--11-49C-1}
Any Class 8 municipality in Alabama may enter into agreements with other municipalities in other states if the other municipalities are contiguous to the Alabama municipality and share expenses related to operation of public transportation systems, fire fighting services, law enforcement services, and public works.
*(Act 2007-468, p. 990, §1.)*
##### **§ 11-49C-2** Purpose {#sec-11-49c-2 omnilex-key=us-al-statutes--title-11--11-49C-2}
It is the purpose of this chapter to permit certain Class 8 municipalities the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of local communities, public transportation systems, fire fighting, law enforcement, and public works.
*(Act 2007-468, p. 990, §2.)*
##### **§ 11-49C-3** Joint Exercise of Powers, Privileges, or Authority {#sec-11-49c-3 omnilex-key=us-al-statutes--title-11--11-49C-3}
Any power or powers, privileges, or authority exercised or capable of being exercised by Class 8 municipalities of this state may be exercised and enjoyed jointly with any municipality of another state if the municipality is contiguous to the Alabama municipality and the municipalities share in the costs of governmental services such as transportation, fire fighting, law enforcement, and public works. The joint exercise of power shall include any personnel and fringe benefit sharing arrangement whereby the other municipality may transfer funds or receive funds for the payments of personnel and benefit costs for persons where employment is within the geographic location of the municipalities.
*(Act 2007-468, p. 990, §3.)*
##### **§ 11-49C-4** Agreements Construed as Interstate Compacts; Actions in Case of Controversy {#sec-11-49c-4 omnilex-key=us-al-statutes--title-11--11-49C-4}
Any agreements entered into pursuant to this chapter between a Class 8 municipality in Alabama and a municipality of another state which is contiguous to the Alabama municipality shall have the status of an interstate compact, but in any case of controversy involving performance or interpretation thereof or liability thereunder, the municipalities involved thereto shall be real parties in interest and the state may maintain an action to recoup or otherwise make itself whole for any damages or liability which it may incur by reason of being joined as a party therein. The action shall be maintainable against any municipality whose default, failure of performance, or other conduct caused or contributed to the incurring of damage or liability by the state.
*(Act 2007-468, p. 990, §4.)*
##### **§ 11-49C-5** Use of Funds for Personnel or Services {#sec-11-49c-5 omnilex-key=us-al-statutes--title-11--11-49C-5}
Any municipality entering into an agreement pursuant to this chapter may expend appropriated funds for personnel or services therefor as may be within its legal power to furnish.
*(Act 2007-468, p. 990, §5.)*
### **Chapter 50** Public Utilities
#### **Article 1** General Provisions
##### **§ 11-50-1** Establishment, Purchase, Etc., of Waterworks, Gas or Electric Plants by Municipalities Generally; Contracts for Furnishing of Water, Gas, or Electricity; Regulation of Gas, Electricity, and Water Rates and Quality {#sec-11-50-1 omnilex-key=us-al-statutes--title-11--11-50-1}
Cities and towns shall have the right to establish, purchase, maintain, and operate waterworks or contract for a supply of wholesome water for their inhabitants; to establish, purchase, maintain, and operate a gas or electric light works and to contract for the furnishing of gas or electricity to the city or town and surrounding territory; to regulate the manner and rates for furnishing gas, electricity, and water after expiration of a contract; and to prescribe the quality of gas or electricity furnished to the inhabitants by any person or corporation.
*(Code 1907, §1260; Code 1923, §2001; Code 1940, T. 37, §360.)*
##### **§ 11-50-1.1** Acquisition of Certain Waterworks Systems Only with Consent of Governing Board of Corporation or Association Operating Same {#sec-11-50-1.1 omnilex-key=us-al-statutes--title-11--11-50-1.1}
Municipalities are hereby prohibited 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, without the consent of a majority of the members of the governing board of said corporation or association.
*(Acts 1982, No. 82-624, p. 1179.)*
##### **§ 11-50-2** Acquisition of Power Lines and Rights-of-Way, Etc., Incident Thereto {#sec-11-50-2 omnilex-key=us-al-statutes--title-11--11-50-2}
(a) Cities and towns in this state are authorized to construct, lease, purchase, or otherwise acquire power lines for the transmission of electricity from any point in this state or any other state to said city or town for the purpose of serving the needs of its citizens.
(b) For the purposes of this section cities and towns may exercise the right of eminent domain in acquiring title to land for rights-of-way, power stations, and other purposes necessary to the operation of said transmission lines. Such eminent domain proceedings shall be conducted in the manner provided by law.
*(Acts 1933, Ex. Sess., No. 105, p. 99; Code 1940, T. 37, §361.)*
##### **§ 11-50-3** Sale of Water and Power to Other Municipalities {#sec-11-50-3 omnilex-key=us-al-statutes--title-11--11-50-3}
Any city or town in this state owning or operating a municipal water or light plant or both may contract with and sell to other municipalities and to residents thereof water and power.
*(Acts 1933, Ex. Sess., No. 105, p. 99; Code 1940, T. 37, §362.)*
##### **§ 11-50-4** Condemnation of Sources of Water, Watersheds, Rights-of-Way, Etc., to Secure Water Supply {#sec-11-50-4 omnilex-key=us-al-statutes--title-11--11-50-4}
For the purpose of securing and maintaining a water supply sufficient for its inhabitants and users within contiguous areas, any municipal corporation is vested with full authority to have condemned for its use sources of water and water supplies or necessary watersheds, rights-of-way for its pipelines, and lands for its water reservoir anywhere in the state. Condemnation under this section shall be governed by the provisions of Title 18 of this Code.
*(Code 1923, §2003; Code 1940, T. 37, §364; Acts 1953, No. 858, p. 1148.)*
##### **§ 11-50-5** Construction, Purchase, Operation, Etc., of Waterworks and Water Supply Plants and Systems and Expenditure of Municipal Funds Therefor {#sec-11-50-5 omnilex-key=us-al-statutes--title-11--11-50-5}
(a) Any municipality in this state may construct, purchase, operate, maintain, enlarge, extend, and improve waterworks plants and systems or any part or parts thereof, whether located within or without or partly within and partly without the corporate limits of such municipality. Such plants and systems may be purchased subject to encumbrances and to contracts to furnish water therefrom, the payment and performance of which may be assumed. Any municipality in this state may furnish and distribute, under contract, water to persons, firms, and corporations in such municipality and to persons, firms, and corporations in the territory surrounding such municipality, whether or not the territory surrounding such municipality is contiguous thereto.
(b) Without limiting the generality of any of the language contained in subsection (a) of this section, any municipality in this state may construct, purchase, operate, maintain, enlarge, extend, and improve water supply plants and systems, whether located wholly within or wholly without or partly within and partly without the corporate limits of such municipality, and may sell and deliver water therefrom to public corporations for ultimate distribution to the inhabitants of such municipality and to the inhabitants of the territory surrounding such municipality, whether or not the territory surrounding such municipality is contiguous thereto.
(c) The construction, purchase, operation, maintenance, enlargement, extension, and improvement of waterworks plants and systems, including water supply plants and systems, and any part or parts of any thereof are hereby declared to be purposes for which any municipality in this state is authorized to expend funds.
*(Code 1907, §1261; Acts 1911, No. 489, p. 565; Code 1923, §2002; Code 1940, T. 37, §363; Acts 1951, No. 597, p. 1028; Acts 1955, No. 556, p. 1217.)*
##### **§ 11-50-6** Issuance of Bonds for Payment for Waterworks Plants, Etc., Purchased; Security for Bonds; Provision in Purchase Agreement as to Disposition of Revenues from Plants, Etc {#sec-11-50-6 omnilex-key=us-al-statutes--title-11--11-50-6}
In payment for such plants, cities or towns may issue their bonds in the manner provided by law, and the same may be secured by a mortgage or deed of trust on the plants so purchased. By the terms of such purchase it may be provided that the revenue of such waterworks may be collected, controlled, and disbursed by a commission selected in the manner and having the powers and term of office which may be agreed upon between the vendor of such plant and such city or town.
*(Code 1907, §1262; Code 1923, §2004; Code 1940, T. 37, §365.)*
##### **§ 11-50-6.1** Referendum on Issuing Obligations to Construct Hydroelectric Generating Facility in Class 5 Municipality {#sec-11-50-6.1 omnilex-key=us-al-statutes--title-11--11-50-6.1}
Should any Class 5 municipality subject to this section desire to construct a hydroelectric generating facility, said municipality is hereby authorized to call for a referendum of all registered voters living in said municipality. The election shall be held and conducted as nearly as may be in the same way as elections on amendments to the Constitution, and shall be held on the same day as the next general, primary or special election following final passage of this section. The question to be placed before the qualified voters is as follows:
Whereas, the city of (name of municipality) is considering the construction of a hydroelectric generating facility on the (name of river or stream), the question is hereby placed before the qualified voters of said city as follows:
Shall the city of (name of municipality) be authorized to issue obligations payable from both general and electric revenues to construct and operate a hydroelectric generating facility on the (name of river or stream)? Yes ( ) No ( ).
*(Acts 1987, No. 87-552, p. 854, §1.)*
##### **§ 11-50-7** Provision in Purchase Agreement as to Franchise Right of Purchaser at Foreclosure Sale {#sec-11-50-7 omnilex-key=us-al-statutes--title-11--11-50-7}
By the terms of purchase, it may be further provided that the purchaser at a foreclosure sale under such mortgage or deed of trust shall have a franchise for not exceeding 30 years to operate such plant.
*(Code 1907, §1263; Code 1923, §2005; Code 1940, T. 37, §366.)*
##### **§ 11-50-8** Execution of Mortgages or Deeds of Trust as Security for Debts, Etc., Incurred in Construction, Acquisition, Etc., of Waterworks, Electric Lighting, or Power Plants, Etc {#sec-11-50-8 omnilex-key=us-al-statutes--title-11--11-50-8}
All cities and towns, in order to secure the prompt and faithful payment of the principal and interest of all debts, bonds, or other evidence of indebtedness heretofore or hereafter incurred or issued by such cities or towns for the construction, acquisition, extension, or maintenance of waterworks systems or plants, electric lighting plants or systems or power plants or systems, whether such plants or systems are owned and operated separately or in conjunction, may execute a mortgage or deed of trust upon any or all of any such plants or systems and all property used in connection therewith, including the franchise or any part thereof, whether such property is now owned or hereafter acquired by such city or town.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2006; Acts 1933, Ex. Sess., No. 9, p. 6; Code 1940, T. 37, §367.)*
##### **§ 11-50-9** Terms, Covenants, Etc., in Mortgages or Deeds of Trust Generally {#sec-11-50-9 omnilex-key=us-al-statutes--title-11--11-50-9}
Such mortgages or deeds of trust may contain such terms, conditions, covenants, and warranties for the protection of the municipalities and holders of such bonds or securities issued by such cities or towns as may be determined and agreed upon by the governing body of such cities or towns and the persons, firms, or corporations owning such debts, bonds, or securities.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2007; Code 1940, T. 37, §368.)*
##### **§ 11-50-10** Provision in Mortgages or Deeds of Trust as to Franchise Right, Etc., of Purchaser at Foreclosure Sale {#sec-11-50-10 omnilex-key=us-al-statutes--title-11--11-50-10}
Such mortgages or deeds of trust may provide that in the event of the foreclosure of such mortgage or deed of trust the purchaser at such foreclosure sale may acquire the right, privilege, and franchise of operating such plants or systems as may be so sold or conveyed, and such purchaser or his vendee may have the right, authority, and privilege to carry on and operate such business, plant, or system in the same manner, on the same terms, and to the same extent as the cities or towns are now authorized to operate until the city or town may redeem such plants or systems from such mortgage sale.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2008; Code 1940, T. 37, §369.)*
##### **§ 11-50-11** Provision in Mortgages or Deeds of Trust as to Disposition of Revenues, Etc., from Plants, Rates, and Charges, Etc {#sec-11-50-11 omnilex-key=us-al-statutes--title-11--11-50-11}
Such mortgages or deeds of trust hereby authorized may provide that during the ownership of the plant or system by the municipality, its control of the service of the system or systems shall not be diminished or interfered with by the grant of any other franchise for the operation of any other plant or system for similar purposes and that such rates and charges shall be established and maintained sufficient to meet the costs of operation and maintenance; and such cities or towns may pledge all of the receipts, earnings, and revenues from the operation of any and all of such plants for the payments of the debts, bonds, or other evidences secured by such mortgages or deeds of trust.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2009; Code 1940, T. 37, §370.)*
##### **§ 11-50-12** Combination of Electric Light and Power Plants, Etc., and Waterworks Plants, Etc.; Use of Electric Light and Power Plants, Etc., and Disposition of Revenues Therefrom {#sec-11-50-12 omnilex-key=us-al-statutes--title-11--11-50-12}
All cities and towns which own and operate an electric light plant or system or any power plant of any kind may combine such electric light and power plants and system with the waterworks or waterworks system owned and operated by the city or town, and the receipts and revenues derived from the electric light plant and works or from such power plant may be applied in payment of or pledged to secure the payment of any indebtedness incurred by the city or town in the construction, maintenance, or extension of its waterworks system or any additions or improvements thereto; and any electric or hydroelectric power or power plant of similar kind owned and operated by any of the cities and towns within the provisions of this section may use such lighting or power plants and systems for the operation of its waterworks system and plant.
*(Acts 1921, Ex. Sess., No. 8, p. 6; Code 1923, §2010; Code 1940, T. 37, §371.)*
##### **§ 11-50-13** Transfer of Waterworks, Sewer, Electric, and Gas Plants, Etc., to Boards Organized and Incorporated to Own and Operate Same {#sec-11-50-13 omnilex-key=us-al-statutes--title-11--11-50-13}
(a) Each municipality in Alabama which now or hereafter owns a waterworks plant and system, a sewer plant and system, an electric plant and system, and a gas plant and system, or any one or more thereof, is hereby authorized to transfer and convey one or more of such plants and systems or any part or parts of such plants and systems or any rights incidental thereto, without the necessity of authorization at an election of the qualified voters of such municipality, to a board which is a public corporation organized and incorporated under Sections 11-50-231 through 11-50-238, 11-50-240 and 11-50-241, as amended, or under any act providing for the incorporation of like boards to own and operate any waterworks plant or system, any sewer plant or system, any electric plant or system, or any gas plant or system, whether such board was incorporated with the approval of the municipality owning such plant and system or with the approval of some other municipality in Alabama.
(b) Any such transfer or conveyance may be made with or without pecuniary consideration and on such terms and conditions as the governing body of the municipality owning such plant and system may determine. Any such transfer and conveyance shall be made only upon the enactment by the governing body of the municipality owning such plant and system of an ordinance or resolution authorizing such transfer and conveyance.
*(Acts 1951, No. 190, p. 453, §1.)*
##### **§ 11-50-14** Agreements with Boards; Conditions, Etc., in Instruments of Transfer as to Control, Operation, Etc., of Plants, Etc., by Boards; Powers of Boards as to Conveyance, Etc., of Title to Plants {#sec-11-50-14 omnilex-key=us-al-statutes--title-11--11-50-14}
(a) The governing body of such municipality is hereby authorized to enter into any agreements with such board which may be necessary or appropriate in order to effectuate such transfer and, in the instrument of transfer, may impose any conditions or stipulations deemed advisable by its governing body and not inconsistent with the provisions of this section and Section 11-50-13 respecting the subsequent control, management, operation, extension, and improvement by such board of the plant or plants and system or systems so transferred to it.
(b) Nothing contained in this section and Section 11-50-13 shall be construed to authorize any such board to convey any plant or system which may be transferred to it by a municipality so as to vest title thereto in private ownership and control; provided, however, that title to such plant and system may be subjected to a mortgage, deed of trust, or pledge agreement as security for repayment of money borrowed by such board.
*(Acts 1951, No. 190, p. 453, §2.)*
##### **§ 11-50-15** Fees of Directors {#sec-11-50-15 omnilex-key=us-al-statutes--title-11--11-50-15}
In any instance where a public corporation heretofore or hereafter organized pursuant to the provisions of Sections 11-50-231 through 11-50-238, 11-50-240 and 11-50-241, or under the provisions of Sections 11-50-310 through 11-50-318 and 11-50-320 through 11-50-324 owns and operates one or more utility systems, the board of directors of such corporation may at its election authorize the payment by such corporation of the following directors’ fees to the members of the board of directors in lieu of the directors’ fees authorized in the statute under which such corporation was organized. No fee shall be paid to any director for services rendered with respect to a sanitary sewer system. In any instance when the system or systems owned and operated by the corporation are any one or more of a water system, a gas system, and an electric system, the chair of the board of directors may be paid a director’s fee in an amount not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year, for one system and twenty-five dollars ($25) each meeting for each additional system, and each member of the board of directors other than the chair may be paid a director’s fee in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year, for each system and twenty dollars ($20) each meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year, for each additional system.
Upon the adoption of a resolution by the board of directors of such corporation electing to come within the provisions of this section and fixing the amount of the directors’ fees to be paid within the limitations set forth in this section, the corporation shall thereafter be authorized to pay the fees so fixed.
Nothing in Act 2007-458 and nothing in Act 2010-580 shall apply to the City of Montgomery, the City of Prichard Water and Sewer Board, the City of Cullman, or the City of Mobile.
The amendatory provisions of this section as provided in Act 2010-580 and in Act 2007-458 shall not affect the current board director and member fees in the City of Birmingham.
*(Acts 1953, No. 850, p. 1141; Acts 1981, No. 81-688, p. 1159; Act 2007-458, p. 946, §§1-3; Act 2010-580, p. 1291, §1.)*
##### **§ 11-50-16** Employment of Mayor or President of Board of Commissioners of Certain Municipalities as Superintendent of Light, Water, Sewer or Gas Systems, Etc.; Duties and Compensation; Validation of Prior Employment, Etc {#sec-11-50-16 omnilex-key=us-al-statutes--title-11--11-50-16}
(a) In all incorporated municipalities organized and operating under the provisions of Articles 1, 2, and 3 of Chapter 44, of this title, which own and operate a municipal light and power system, a municipal water system, a municipal sewage system, or a municipal gas system or any of them, the board of commissioners may, by resolution duly entered in its minutes, authorize the mayor or president of the board of commissioners to act as superintendent of such system or systems and to give as much of his time thereof as the commissioners may direct; provided, that in any such municipality in which a municipal board or municipal public corporation owns or operates a municipal light and power system, a municipal water system, a municipal sewage system, or a municipal gas system or any of them, such board or municipal public corporation may, by resolution duly entered in its minutes, employ the mayor or president of the board of commissioners to act as superintendent of such system or systems and to give so much of his time thereto as such board or corporation may direct.
(b) The mayor or president of the board of commissioners, as such superintendent of such system or systems, shall serve as purchasing agent and make all purchases authorized by the board of commissioners, board, or municipal public corporation therefor. He shall keep a check on meter readings and bids for service of the system and see that the collections thereof are made. He shall see that the system or systems are kept in proper repair and operation, he shall keep an inventory showing the supplies and equipment on hand for such system or systems, he shall keep a full and complete monthly financial statement of all operation costs and receipts and keep a proper inventory of the fiscal assets of such system or systems available for the board of commissioners, board, or municipal public corporation at such times as it shall require, but not less frequently than once every three months, and shall handle all such data and information relative to such system or systems. For his service as superintendent of such system or systems the mayor or president of the board of commissioners shall be paid, in addition to the salary now or hereafter provided by law, such sum as the board of commissioners, board, or municipal public corporation shall deem reasonable, but not to exceed $600.00 per month, except in cases where the board of commissioners, board, or municipal public corporation requires the full time services of the mayor or president of the board of commissioners as superintendent of such system or systems, in which event he may be paid not more than $1,200.00 per month for such service. The board of commissioners, board, or municipal public corporation may at any time it deems best dispense with the mayor or president of the board of commissioners’ services as superintendent.
(c) The provisions of this section shall be curative and retroactive and any employment of any mayor or president of the board of commissioners as superintendent of any such system or systems (utility or utilities) heretofore made by any such board of commissioners, board, or municipal public corporation and any salary heretofore paid to any mayor or president of the board of commissioners by any such board of commissioners, board, or municipal public corporation for his services as superintendent of such system or systems is hereby validated.
*(Acts 1967, No. 519, p. 1242; Acts 1982, 2nd Ex. Sess., No. 82-764, p. 239.)*
##### **§ 11-50-17** Payment of Interest by Waterworks Boards in Class 1 Municipalities on Customer Security Deposits {#sec-11-50-17 omnilex-key=us-al-statutes--title-11--11-50-17}
Any public water works board in a Class 1 municipality in the state shall pay interest per annum on all customer security deposits required for utility service. The amount of interest paid for each calendar year shall be at the federal funds rate in effect on December 31 of the preceding calendar year.
*(Acts 1980, No. 80-327, p. 448; Act 2011-336, p. 609, §1.)*
#### **Article 2** Acquisition of Water Supply by Foreign Municipal Corporations
##### **§ 11-50-30** Acquisition, Etc., by Foreign Municipalities of Property Necessary to Afford Adequate Water Supply Authorized {#sec-11-50-30 omnilex-key=us-al-statutes--title-11--11-50-30}
Any city or town located in any state adjoining the State of Alabama which is duly incorporated by the laws of the state wherein such town or city is located may acquire, own, take, and dispose of any property, real or personal, in this state, that may be necessary or appropriate for affording such town or city and the inhabitants thereof an adequate water supply to be drawn from a source located in this state.
*(Code 1907, §1443; Code 1923, §2299; Code 1940, T. 37, §387.)*
##### **§ 11-50-31** Rights and Powers of Domestic Municipal Corporations as to Acquisition, Maintenance, Etc., of Waterworks Systems Conferred Upon Foreign Municipal Corporations {#sec-11-50-31 omnilex-key=us-al-statutes--title-11--11-50-31}
All the rights and powers that are incident to and conferred by law upon municipal corporations of this state to purchase, hold, take, and condemn property or easements in property needful for the location, maintenance, security, and operation of a complete system of waterworks, including the ownership of such watersheds, rights-of-way, and easements in property and the construction of such dams, canals, raceways, and reservoirs and the laying of such pipes, conduits, and mains as is necessary and proper to render a public water supply available for use are hereby conferred upon such foreign municipal corporations as may wish to procure a public water supply from this state in accordance with the provisions of this article.
*(Code 1907, §1444; Code 1923, §2300; Code 1940, T. 37, §388.)*
##### **§ 11-50-32** Rights and Powers of Foreign Municipal Corporations to Contract with Persons, Municipal Corporations, Etc., Within State for Water Supply {#sec-11-50-32 omnilex-key=us-al-statutes--title-11--11-50-32}
Such foreign municipal corporations, in connection with the development of a public water supply from this state, shall have the right, power, and authority to contract with any person or persons, municipal corporation, or private corporation located in this state for a supply of water, upon such terms as may be mutually satisfactory and not repugnant to the Constitution and laws of this state, in the same manner and to the same extent as an individual or private corporation may contract for such water supply.
*(Code 1907, §1445; Code 1923, §2301; Code 1940, T. 37, §389.)*
##### **§ 11-50-33** Consent of Counties and Municipalities Required {#sec-11-50-33 omnilex-key=us-al-statutes--title-11--11-50-33}
Before the power and authority conferred by this article may be exercised, the consent of the county commission of the county in which the property lies and, if the said property lies within the limits of any incorporated municipality, then the consent of the governing authority of said incorporated municipality shall be first obtained.
*(Code 1907, §1449; Code 1923, §2305; Code 1940, T. 37, §393.)*
##### **§ 11-50-34** Exercise of Jurisdiction Over Territory Acquired by Foreign Municipalities Generally {#sec-11-50-34 omnilex-key=us-al-statutes--title-11--11-50-34}
Nothing in this article contained shall authorize any foreign municipality to exercise any jurisdiction over any territory acquired by it under this article, but the jurisdiction of the State of Alabama shall be in all things retained over such territory.
*(Code 1907, §1447; Code 1923, §2303; Code 1940, T. 37, §391.)*
##### **§ 11-50-35** Exemption from Levy, Attachment, Etc., of Property of Foreign Municipal Corporations {#sec-11-50-35 omnilex-key=us-al-statutes--title-11--11-50-35}
The property of any and all foreign municipal corporations located in this state in pursuance of the provisions of this article shall be exempt from levy or seizure by attachment or other legal process or proceedings in like manner as the property of municipal corporations located in and existing under the laws of this state are exempt.
*(Code 1907, §1446; Code 1923, §2302; Code 1940, T. 37, §390.)*
##### **§ 11-50-36** Taxation of Property Acquired by Foreign Municipalities {#sec-11-50-36 omnilex-key=us-al-statutes--title-11--11-50-36}
The property so acquired by any foreign municipality shall be subject to taxation in this state as the property of individuals and private corporations.
*(Code 1907, §1448; Code 1923, §2304; Code 1940, T. 37, §392.)*
#### **Article 3** Acquisition, Operation, Etc., of Sewers or Sewer Systems by Municipalities Generally
#### **Division 1** General Provisions
##### **§ 11-50-50** Construction and Maintenance of Sewers, Drains, Etc., by Municipalities Authorized {#sec-11-50-50 omnilex-key=us-al-statutes--title-11--11-50-50}
All cities and towns may make all needful provisions for the drainage of such city or town, may construct and maintain efficient sanitary and stormwater sewers or sewer systems, either within or without the corporate limits of the city or town, may construct and maintain ditches, surface drains, aqueducts, and canals and may build and construct underground sewers through private or public property, either within or without the corporate limits of such city or town, but just compensation must first be made for the private property taken, injured, or destroyed.
*(Code 1907, §1302; Code 1923, §2076; Code 1940, T. 37, §601.)*
##### **§ 11-50-51** Condemnation of Easements, Etc {#sec-11-50-51 omnilex-key=us-al-statutes--title-11--11-50-51}
Cities and towns may acquire, whenever necessary, the requisite rights and easements by condemnation in the manner prescribed by the Constitution and laws of Alabama for the condemnation of lands for the public use.
*(Code 1907, §1303; Code 1923, §2077; Code 1940, T. 37, §602.)*
##### **§ 11-50-52** Extension or Alteration of Sewer System, Etc {#sec-11-50-52 omnilex-key=us-al-statutes--title-11--11-50-52}
Any city or town may extend or alter its sewer system and extend the mains whenever in the opinion of the city or town it may be necessary or expedient to do so, and such city or town may extend the mains to any point in the county in which it is situated, and for these purposes, the said city or town shall have and exercise the full rights of eminent domain and may acquire such lands or easements therein and the uses of such waterways as may be necessary by the proceedings provided by law for acquiring private property for public uses.
*(Code 1907, §1292; Code 1923, §2050; Code 1940, T. 37, §603.)*
##### **§ 11-50-53** Regulation, Installation, Etc., of Drainage and Sewer Connections Generally {#sec-11-50-53 omnilex-key=us-al-statutes--title-11--11-50-53}
All cities and towns of this state shall have the power to establish or build drains and may require private or public premises to be connected with the sewer system for proper drainage or sanitation and shall have the power to regulate the manner of connection therewith. They shall also have the power to adopt and enforce all such laws, ordinances, and resolutions necessary to compel the owners of real property to ditch and drain the same at such owner’s expense and to punish any neglect of such owner or person in charge of said lots or property, and on failure of the owner after 10 days’ notice to do so, the city or town may ditch and drain such premises at the expense of such owner, the same to be a lien on such property to be collected as other debts are collected or liens enforced. The notice required by this section shall be by personal service or by posting a notice on the premises.
*(Code 1907, §1283; Code 1923, §2040; Code 1940, T. 37, §604.)*
##### **§ 11-50-54** Regulation, Installation, Etc., of Drainage, Plumbing, Sewer Connections, Etc {#sec-11-50-54 omnilex-key=us-al-statutes--title-11--11-50-54}
All cities and towns of this state shall have the power to prescribe the location and manner in which drainage from private premises may be disposed of and to prescribe the manner in which plumbing shall be constructed and to forbid the use of the same while out of order or defective and may discontinue or forbid the use of sinks, pits, cesspools, dry wells, and surface closets and may regulate and compel the connection of private or public premises with the sewer system of the town or city, and the council or other governing body shall have the power to punish the owner of any property who shall fail to make such connection, after 10 days’ notice to do so, and shall also have the power to prevent the lease, rental, or use of any property after notice that such connections have been required until the same shall have been made. If such owner fails or refuses, after 10 days’ notice, to make the connection, the town or city may cause the same to be made at such owner’s expense, and the cost thereof shall be a lien on such property, prior to all other liens, except for taxes, and the same may be collected as other debts are collected or liens enforced. The notice to make the connection provided for in this section must be given in writing to the owner, agent or occupant of the premises.
*(Code 1907, §1286; Code 1923, §2043; Code 1940, T. 37, §605.)*
##### **§ 11-50-55** Regulation, Installation, Etc., of Privies, Water Closets, Septic Tanks, Etc.; Preparation and Filing of Statement as to Installation, Etc., of Privies, Water Closets, Etc {#sec-11-50-55 omnilex-key=us-al-statutes--title-11--11-50-55}
All cities and towns of this state shall have the power to regulate privies, water closets, and septic tanks and the construction thereof and to compel the installation of same and to regulate the connection of such water closets with such septic tanks or with the sewerage system of the city or town; and, in case of failure to install or connect after reasonable notice, then the city or town may install proper privies, water closets, or septic tanks as it deems advisable and connect such water closets with such septic tanks or with the sewerage system of the city or town, the expense of same to be assessed against the property and the cost thereof to be a lien upon the property in favor of the city or town, superior to all other liens, to be collected as other debts are collected or liens enforced.
When privies, water closets, or septic tanks are installed and connections made by the city or town under the provisions of this section, the mayor or other chief executive officer of such city or town shall prepare a statement in writing setting forth the name of the owner and a description of the property upon which the improvements have been made, together with the cost of the installation of such privies, water closets, or septic tanks and sanitary connections, and the statement must be signed by the mayor or other chief executive officer in his official capacity and filed with the probate judge in the county in which such property is situated for record in the mortgage records of the county. The filing of such statement shall operate as notice of such lien from the date of its filing.
*(Code 1907, §1293; Acts 1909, No. 162, p. 175; Code 1923, §2051; Acts 1927, No. 44, p. 41; Acts 1935, No. 443, p. 918; Code 1940, T. 37, §606.)*
##### **§ 11-50-56** Giving of Notice Under Provisions of Division {#sec-11-50-56 omnilex-key=us-al-statutes--title-11--11-50-56}
Whenever in the exercise of any power granted under this division notice is required to be given, the mayor and aldermen or other governing body may designate a person or persons to give such notice, who shall be a bonded officer of the municipality, and to make returns upon the same, and such return shall be prima facie evidence of such notice.
Personal notice to nonresidents shall not be necessary, and the mayor and aldermen or other governing body may provide and fix the character of the publication of notice to nonresidents, which shall be given by publication once a week for three weeks or by posting for the same time in three public places in said city or town where no newspaper is published therein.
Whenever any notice to a resident property owner is returned not found, the mayor and aldermen or other governing body may prescribe and issue alias notices to be served as in the case of the original notice. Two returns of “not found” as to a resident property owner shall authorize the mayor and aldermen or other governing body to proceed to give notice to such resident property owner by publication as herein required to be given to nonresidents.
*(Code 1907, §1308; Code 1923, §2082; Code 1940, T. 37, §607.)*
#### **Division 2** Purchase of Sanitary Sewers or Sewer Systems and Assessments Therefor
##### **§ 11-50-70** “Council” Defined {#sec-11-50-70 omnilex-key=us-al-statutes--title-11--11-50-70}
The term “council,” as used in this division, shall mean the council, mayor and aldermen, or other governing body.
*(Acts 1923, No. 165, p. 134; Code 1923, §2084; Code 1940, T. 37, §609.)*
##### **§ 11-50-71** Authorized {#sec-11-50-71 omnilex-key=us-al-statutes--title-11--11-50-71}
All cities and towns in this state shall have authority to purchase sanitary sewers or sanitary sewer systems already constructed and draining territory within their corporate limits, although the trunk sewers and disposal plants thereof may be located outside their corporate limits, and to cause the purchase price of said sewers or sewer systems with the disposal plants, together with the cost of improvements made thereon, to be assessed against the property abutting on the streets, avenues, alleys, highways, or other public places so improved or drained by said sewers or sewer systems to the extent of the increase of the value of such property by reason of the special benefits derived from such sewers or sewer systems and from the purchase of the same by the municipality.
*(Acts 1923, No. 165, p. 134; Code 1923, §2083; Code 1940, T. 37, §608.)*
##### **§ 11-50-72** Adoption of Ordinance or Resolution Describing Sewer System to Be Purchased, Ordering Preparation of Maps, Profiles, Etc., Thereof, Etc {#sec-11-50-72 omnilex-key=us-al-statutes--title-11--11-50-72}
When the council of any city or town shall determine to purchase any sewers or sewer system under the provisions of this division, the cost of which or any part thereof is proposed to be assessed against the property abutting on or drained by said sewers or sewer system, it shall adopt an ordinance or resolution to that effect, describing the sewers or sewer system proposed to be purchased, giving the name or names of the owner or owners of said sewers or sewer system and establishing or describing the territory or area abutting on or drained or that may be drained by such sewers or sewer system and defining the same by naming the streets, avenues, alleys, or other lines by which the same is bounded.
In said ordinance the council shall direct that the city or town engineer or such other person as may be designated in such ordinance or resolution survey said sewers or sewer system and prepare maps and profiles showing the location of such sewers or sewer system and appurtenances thereto, their sizes, grades, and the materials of which they are constructed, or they may adopt any such survey, maps and profiles, and report heretofore made by any engineer under the authority of the council.
*(Acts 1923, No. 165, p. 134; Code 1923, §2085; Code 1940, T. 37, §610.)*
##### **§ 11-50-73** Filing of Maps, Profiles, Etc., in Office of Engineer for Public Inspection {#sec-11-50-73 omnilex-key=us-al-statutes--title-11--11-50-73}
Such maps, profiles, and information shall be placed on file in the office of the city or town engineer or other officer designated in such ordinance or resolution, where property owners who may be affected by such purchase may see and examine the same.
*(Acts 1923, No. 165, p. 134; Code 1923, §2086; Code 1940, T. 37, §611.)*
##### **§ 11-50-74** Execution of Contract for Purchase of Sewers or Sewer System by Council; Contents and Terms Thereof {#sec-11-50-74 omnilex-key=us-al-statutes--title-11--11-50-74}
Thereafter the council may enter into a contract with the owner or owners of said sewers or sewer system, subject to final confirmation by the council under the provisions of this division, for the purchase of the same at a purchase price and under such terms as may be agreed upon between the parties thereto, the purchase price to be paid in whole or in part as the council may see proper by assessment against the abutting and drained property.
Such contract may prescribe when and under what conditions the title to said sewers or sewer systems shall be conveyed to the city or town; and that any bonds issued or to be issued as prescribed in this division for the cost thereof may be secured by mortgage on or deed of trust to said sewer or sewer system, in addition to the security of the assignment of the lien on the abutting or drained property provided for in this division.
*(Acts 1923, No. 165, p. 134; Code 1923, §2087; Code 1940, T. 37, §612.)*
##### **§ 11-50-75** Passage of Ordinance or Resolution Providing for Purchase of Sewers or Sewer System, Assessment of Cost Thereof Against Abutting Lands, Date for Conduct of Hearing Upon Objections, Etc., to Purchase, Etc {#sec-11-50-75 omnilex-key=us-al-statutes--title-11--11-50-75}
Thereupon, the council shall pass an ordinance or resolution providing for the purchase of said sewers or sewer systems, describing the boundaries of the area abutting on or drained by them, fixing the cost of the same to the city or town, including engineer’s fees and cost of publication and providing that the cost of said sewers or sewer system or any specified portion thereof shall be assessed against all lots or parcels of land lying within the area abutting on or drained by said sewers or sewer system to the extent of the increased value of such property by reason of the special benefits derived from such sewer or sewer system and from the purchase of the same by the municipality, and in said ordinance the council shall appoint a time when the council will meet, which will be not less than two weeks after the date of the first publication of said ordinance or resolution, to hear any objections or remonstrances that may be made to the purchase of said sewers or sewer system.
*(Acts 1923, No. 165, p. 134; Code 1923, §2088; Code 1940, T. 37, §613.)*
##### **§ 11-50-76** Publication of Ordinance or Resolution {#sec-11-50-76 omnilex-key=us-al-statutes--title-11--11-50-76}
The ordinance or resolution provided for in Section 11-50-75 must be published once a week for two consecutive weeks in some newspaper published in said city or town. If no newspaper is published therein it may be published either in a newspaper of general circulation or by posting for two weeks in three public places in such city or town.
*(Acts 1923, No. 165, p. 134; Code 1923, §2089; Code 1940, T. 37, §614.)*
##### **§ 11-50-77** Hearing Upon Objections as to Proposed Purchase; Amendment, Modification, Rescission, Etc., of Ordinance or Resolution and Contract by Council {#sec-11-50-77 omnilex-key=us-al-statutes--title-11--11-50-77}
At the meeting to be held as provided for as specified in Section 11-50-75 or at a place and time to which the same may be adjourned, all persons whose property may be affected by said sewers or sewer system or by the proposed purchase of the same may appear in person or by attorney or by petition and object or protest against the purchase of the same, and the council shall consider each objection and protest, if any, and may confirm, amend, modify, or rescind the original ordinance or resolution and the contract of purchase made with the owner or owners of the sewers or sewer system proposed to be purchased, but if objections to the proposed purchase are made by a majority in area of the property owners against whose property the cost and expense of the proposed purchase is to be assessed, the purchase shall not take place, unless ordered by a two-thirds vote of the council. Any amendment or modification of the contract of purchase shall not be binding upon the owner or owners of the sewers or sewer system until they assent thereto in writing.
*(Acts 1923, No. 165, p. 134; Code 1923, §2090; Code 1940, T. 37, §615.)*
##### **§ 11-50-78** Payment of Portion of Costs of Purchase by Council; Costs of Purchase Specified {#sec-11-50-78 omnilex-key=us-al-statutes--title-11--11-50-78}
The council may pay out of the general funds of the city or town or any special funds that may be provided for the purpose such portion of the cost of the proposed purchase of said sewers or sewer system as they see proper.
The cost of any sewers or sewer system purchased as contemplated by this division shall include the expenses of the preliminary and other surveys and estimates, printing and publishing of notices, resolutions and ordinances required, including notices of assessment, the purchase price of sewers or sewer systems, the cost of preparing bonds, interest on bonds when bonds have been issued in anticipation of the collection of the assessments, and any other expenses necessary for the completion of such purchase.
*(Acts 1923, No. 165, p. 134; Code 1923, §2091; Code 1940, T. 37, §616.)*
##### **§ 11-50-79** Assessment of Cost of Sewers or Sewer System Against Abutting Lands Authorized {#sec-11-50-79 omnilex-key=us-al-statutes--title-11--11-50-79}
If the purchase of said sewers or sewer system is finally ordered, the council may assess the cost of said sewers or sewer system or any part thereof upon and against all the lots or parcels of land within the territory or area abutting on or drained or that may be drained by such sewers, or sewer system to the extent of the increased value of such property by reason of the special benefits derived from such sewers or sewer system and from the purchase of the same by the municipality.
*(Acts 1923, No. 165, p. 134; Code 1923, §2092; Code 1940, T. 37, §617.)*
##### **§ 11-50-80** Preparation, Etc., of List of Property Owners to Be Assessed for Purchase; Entry of List in Assessment Book for Local Improvements {#sec-11-50-80 omnilex-key=us-al-statutes--title-11--11-50-80}
(a) When any purchase of sewers, or sewer system made under the provisions of this division is contemplated, the mayor or other chief executive officer shall cause to be prepared a roll or list showing the names of the property owners and opposite each name a description of each lot or parcel of land proposed to be assessed for such purchase belonging to such owner or owners and the amount proposed to be assessed against each lot or parcel of land.
(b) Such a list shall be entered in a well-bound book prepared for that purpose and shall contain appropriate columns in which payments may be credited and the lien of the assessment satisfied by the proper officer of the municipality. Said book shall be known as the “assessment book for local improvements” and shall be a public record, and no error or mistake in regard to the name of the owner or in the description of the property, provided the property assessed may be identified from the description used, shall be held to invalidate any assessment, and it shall be sufficient if the name of the last owner as shown by the records in the office of the judge of probate of the county is shown in said book. Said list may be kept in any book already provided by the municipality and known as the “assessment book for local improvements.”
*(Acts 1923, No. 165, p. 134; Code 1923, §2093; Code 1940, T. 37, §618.)*
##### **§ 11-50-81** Delivery of Assessment Book to City or Town Clerk; Publication of Notice as to Delivery and Inspection of Book, Hearing Upon Objections to Assessments, Etc {#sec-11-50-81 omnilex-key=us-al-statutes--title-11--11-50-81}
After the completion of the proper entries in said book, said book shall be delivered to the city or town clerk, who shall thereupon give notice by publication one time in some newspaper published in said municipality or of general circulation therein that said assessment roll or list has been delivered to him and is open for inspection in the office of the person authorized to make collection of said assessments. The notice shall state that, at the time and place therein mentioned, not less than 20 days from the date of publication, the council will meet to hear and determine any objections or defenses that may be filed to such assessment or the amount thereof. Such notice shall also state the general character of the sewers or sewer system purchased or proposed to be purchased and the territory or area abutting on, or drained, or that may be drained by said sewers or sewer system by naming the streets, avenues, alleys, or other highways or other lines by which said district is bounded.
*(Acts 1923, No. 165, p. 134, Code 1923, §2094; Code 1940, T. 37, §619.)*
##### **§ 11-50-82** Effect and Correction of Defects or Errors in Notice {#sec-11-50-82 omnilex-key=us-al-statutes--title-11--11-50-82}
If there is any defect in said notice or proceedings before or subsequent to said notice with respect to one or more interested persons, the same shall not affect such notice or proceedings except insofar as it may touch the interest or property of such person or persons and shall not avail any other person concerned therein. In case of such defect, supplementary proceedings of the same general character as those prescribed in this division may be had in order to supply such defects.
*(Acts 1923, No. 165, p. 134; Code 1923, §2095; Code 1940, T. 37, §620.)*
##### **§ 11-50-83** Filing of Written Objections, Etc., to Proposed Assessments by Property Owners {#sec-11-50-83 omnilex-key=us-al-statutes--title-11--11-50-83}
The owners of any real estate or any interest therein which it is proposed to assess for the cost or any part thereof of said sewer or sewers or sewer system, may appear at any time on or before the date named in the notice provided for in Section 11-50-81 or at the meeting mentioned therein and file in writing with the clerk or in his office any objections or defense to the proposed assessment against said property or to the amount thereof. Persons who do not file objections in writing or protests against such assessment on or before the date named in said notice shall be held to have consented to the same.
*(Acts 1923, No. 165, p. 134; Code 1923, §2096; Code 1940, T. 37, §621.)*
##### **§ 11-50-84** Hearing Upon Objections, Etc., to Assessments {#sec-11-50-84 omnilex-key=us-al-statutes--title-11--11-50-84}
The council shall hear and pass upon all objections and protests against the proposed assessment under such reasonable rules and regulations as they may adopt and, by the mayor or clerk or other executive officer, may issue subpoenas for witnesses to appear before the council or any committee thereof and may administer oaths to the witnesses to be examined.
*(Acts 1923, No. 165, p. 134; Code 1923, §2097; Code 1940, T. 37, §622.)*
##### **§ 11-50-85** Fixing of Amount of Assessments by Council and Effect Thereof {#sec-11-50-85 omnilex-key=us-al-statutes--title-11--11-50-85}
At such meeting or any adjourned meeting, the council shall proceed by order or resolution to fix the amount of the assessment against each lot or tract of land described and included in said assessment roll, and all such assessments from the date of such order or resolution shall be and constitute a lien on the respective lots or parcels of land upon which they are levied, superior to all other liens, except those of the state and county for taxes.
*(Acts 1923, No. 165, p. 134; Code 1923, §2098; Code 1940, T. 37, §623.)*
##### **§ 11-50-86** Assignment and Transfer of Assessment Liens {#sec-11-50-86 omnilex-key=us-al-statutes--title-11--11-50-86}
The council of each city or town may transfer and assign such assessment liens to the owner or owners of the sewer or sewers or sewer system from whom purchased or to any other person.
*(Acts 1923, No. 165, p. 134; Code 1923, §2099; Code 1940, T. 37, §624.)*
##### **§ 11-50-87** Enforcement of Assessment Liens in Circuit Court {#sec-11-50-87 omnilex-key=us-al-statutes--title-11--11-50-87}
In addition to the method hereinafter provided in this division for the collection of such assessments, the circuit court may enforce said liens, and in all civil actions which may be brought to enforce said liens either by the council or by its assigns, the complainant shall recover the amount of such assessment, with interest thereon, and the costs of such proceedings.
*(Acts 1923, No. 165, p. 134; Code 1923, §2100; Code 1940, T. 37, §625.)*
##### **§ 11-50-88** Effect of Enforcement of Tax Liens Upon Property Upon Assessment Liens {#sec-11-50-88 omnilex-key=us-al-statutes--title-11--11-50-88}
The enforcement by the state, county, city, or town of its lien for taxes on any lot or parcel of land upon which has been levied an assessment under the provisions of this division shall not operate to discharge or in any manner affect the lien of the municipality for said assessment, but the purchaser at a tax sale by the state, county, city, or town of any lots or parcels of land upon which an assessment has been levied shall take the same subject to such assessment.
*(Acts 1923, No. 165, p. 134; Code 1923, §2101; Code 1940, T. 37, §626.)*
##### **§ 11-50-89** Effect of Sale of Property for Enforcement of Assessment Lien Upon Other Assessment Liens Upon Same Property {#sec-11-50-89 omnilex-key=us-al-statutes--title-11--11-50-89}
The enforcement by the municipality of its lien for an assessment levied for one improvement by the sale of the property shall not operate to discharge or in any way affect the lien of any other assessment for a different improvement on the same property, but the purchaser at such sale shall take subject to the lien of all other assessments and the right of the municipality to enforce the same.
*(Acts 1923, No. 165, p. 134; Code 1923, §2102; Code 1940, T. 37, §627.)*
##### **§ 11-50-90** Appeals from Assessments {#sec-11-50-90 omnilex-key=us-al-statutes--title-11--11-50-90}
Any person aggrieved by the decision of the council in making any assessment may appeal to the circuit court under the provisions of this Code or the Alabama Rules of Appellate Procedure providing for appeals from decisions of city or town councils in making local assessments, and such appeals shall be tried as provided therein and appeal taken to the Supreme Court or Court of Civil Appeals as therein provided.
*(Acts 1923, No. 165, p. 134; Code 1923, §2103; Code 1940, T. 37, §628.)*
##### **§ 11-50-91** Payment of Assessments Generally {#sec-11-50-91 omnilex-key=us-al-statutes--title-11--11-50-91}
The council, in purchasing any sewers or sewer system the cost of which or any part thereof is to be assessed against the area drained by such sewer, sewers or sewer system, may provide that the same shall be paid in cash within 30 days after the final assessment, provided the cost of such sewers or sewer system does not exceed $1,000.00, but if the total cost of such purchase is greater than such sum, any property owner may, at his election, to be expressed by notifying the city or town official charged with the duty of collecting such assessments in writing within 30 days after the assessment is made final, pay such assessment in not less than 10 nor more than 15 equal annual installments, as determined by the council, which installments shall bear interest at a rate not exceeding six percent per annum payable annually. And the council may further provide that any person may further elect to pay each annual installment in four equal quarterly installments.
Any person may pay the whole assessment against any lot or parcel of land with 30 days from the time the assessment is made and may at any installment period, either annual or quarterly, pay the assessment in full by paying the full amount of the installments, together with all accrued interest thereon and an additional sum equal to six months’ interest at six percent per annum on the amount of said assessment so paid before maturity as a penalty. Should the property owner desire to pay off the deferred installments between the dates on which they are due, he shall pay interest on the same until the succeeding installment period, together with the penalty above described. The first installment shall be payable within 30 days after the assessment is made final, and all assessments or installments thereof shall be payable at the office of the clerk, tax collector, or treasurer of the city or town as the council may prescribe, and all assessments or installments thereof shall bear interest at a rate not exceeding six percent per annum after the expiration of 30 days from the date on which the same were made final, which interest shall be due and payable at the time and place the assessment or installment is due and payable. In all cases where the property owner does not elect to pay in installments or, having elected to pay in installments, fails to pay the first installment within 30 days from the date of the assessment, he shall be held to have waived the right to pay in installments, and the entire assessment shall at the expiration of said 30 days become due and payable.
*(Acts 1923, No. 165, p. 134; Code 1923, §2104; Code 1940, T. 37, §629.)*
##### **§ 11-50-92** Proceedings for Sale of Land Upon Failure of Property Owner to Pay Assessment, Installment or Interest - Notice of Sale; Payment of Assessment Prior to Sale; Cost of Notice and Sale Charged Against Land, Etc {#sec-11-50-92 omnilex-key=us-al-statutes--title-11--11-50-92}
(a) If the property owner who has not elected to pay in installments fails to pay his assessment within 30 days or, having elected to pay in installments, fails to pay the first installment within 30 days from the date of the assessment or makes default in the payment of any annual or quarterly installment or the interest thereon, the whole of such assessment shall immediately become due and payable, and the officer designated by the council to collect such assessment shall proceed to sell the property against which the assessment is made to the highest bidder for cash, but he shall first give notice by publication once a week for three consecutive weeks in some newspaper published in the city or town or of general circulation therein advertising the day of such sale and the purpose for which the same is made, together with a description of the property to be sold.
(b) Any property owner, notwithstanding his default, may pay the assessment with interest and all costs if tendered before the sale of the property.
(c) The cost of such notice and sale shall constitute a charge against the property to be sold and shall be retained out of the proceeds of the sale.
*(Acts 1923, No. 165, p. 134; Code 1923, §2105; Code 1940, T. 37, §630.)*
##### **§ 11-50-93** Proceedings for Sale of Land Upon Failure of Property Owner to Pay Assessment, Installment, or Interest - Execution, Etc., of Deed to Purchaser at Sale; Disposition of Surplus from Sale; Purchase of Property by Municipality {#sec-11-50-93 omnilex-key=us-al-statutes--title-11--11-50-93}
The officer making such sale shall execute a deed to the purchaser, which shall convey all the right, title, and interest which the party against whose property the assessment was made had or held in said property at the date of making such assessment or on the date of making such sale. Any surplus arising from such sale shall be paid into the city or town treasury, to be kept as a separate fund by the treasurer for the owner upon the responsibility of his official bond. The council may, by its agent, purchase real estate sold as provided under this division, and, in the event of such purchase, the deed for the same shall be made to the city or town.
*(Acts 1923, No. 165, p. 134; Code 1923, §2106; Code 1940, T. 37, §631.)*
##### **§ 11-50-94** Proceedings for Sale of Land Upon Failure of Property Owner to Pay Assessment, Installment, or Interest - Effect of Error or Defect in Notice or Sale {#sec-11-50-94 omnilex-key=us-al-statutes--title-11--11-50-94}
No mistake in the notice of sale in the description of the property or in the name of the owner shall vitiate the assessment or the lien; and, if for any reason, the sale made by the city or town is ineffectual to pass title, it shall operate as an assignment of the lien. Upon the request of the purchaser, supplementary proceedings of the same general character as required in this article may be had to correct the errors in said proceedings for his benefit, or the lien so assigned to him may be enforced by civil action.
*(Acts 1923, No. 165, p. 134; Code 1923, §2108; Code 1940, T. 37, §633.)*
##### **§ 11-50-95** Redemption of Property After Sale {#sec-11-50-95 omnilex-key=us-al-statutes--title-11--11-50-95}
Such property may be redeemed by the owner or his assigns or other person authorized to redeem property sold for taxes by the state within two years from the date of the sale by paying to the purchaser or the city or town treasurer for him the amount for which the property was sold with interest thereon at the rate of eight percent per annum from the date of sale, together with a fee of $2.00 for the expense of the conveyance.
*(Acts 1923, No. 165, p. 134; Code 1923, §2107; Acts 1932, Ex. Sess., No. 21, p. 19; Code 1940, T. 37, §632.)*
##### **§ 11-50-96** Issuance of Bonds to Pay for Sewers or Sewer System Authorized Generally {#sec-11-50-96 omnilex-key=us-al-statutes--title-11--11-50-96}
For the purpose of providing funds to pay the cost of said sewer or sewer system authorized to be purchased under the provisions of this division, the council of any city or town may issue bonds, within the limitations prescribed by the Constitution, in such amount as may be necessary, not to exceed the total cost of said sewer or sewers or sewer system.
*(Acts 1923, No. 165, p. 134; Code 1923, §2109; Code 1940, T. 37, §634.)*
##### **§ 11-50-97** Making of Loans and Issuance of Bonds to Pay for Sewers or Sewer System {#sec-11-50-97 omnilex-key=us-al-statutes--title-11--11-50-97}
The council may borrow money on the faith and credit of the city or town, executing the note of the city or town therefor and pledging as security for such loan the proceeds of the proposed assessments thereafter to be made as provided in this division, and such sum or sums so borrowed the council may advance in payment or part payment of the cost of such sewer or sewers or sewer system; and, upon the expiration of 30 days after the assessment for the cost of the same shall have been made final, the council may then issue and sell bonds for such amount as may be necessary, after deducting the amount paid by property owners, to pay the cost of such sewers or sewer system, including such amounts as may have been borrowed for the purpose, and all interest and other expenses incurred in and about the purchase of the same. The council may provide in its contract with the owner or owners of the sewer, sewers or sewer system that such bonds are to be received in payment of the purchase price of such sewers or sewer system and, in such case, upon the expiration of 30 days after the assessment of the cost of the same, the council may, by resolution or ordinance, authorize the delivery of the bonds to said owner or owners in accordance with said contract.
*(Acts 1923, No. 165, p. 134; Code 1923, §2110; Code 1940, T. 37, §635.)*
##### **§ 11-50-98** Form, Terms, Denominations, Etc., of Bonds; Execution, Sale, Etc., Thereof {#sec-11-50-98 omnilex-key=us-al-statutes--title-11--11-50-98}
The bonds authorized to be issued by this division shall be negotiable and payable to the bearer and may be payable in lawful money of the United States as the council may prescribe. By the ordinance providing for the issue of such bonds, full provision shall be made for their form and character. Said bonds shall have coupons attached to represent the interest thereon, and the council may provide that such bonds may be changed from coupon to registered bonds or vice versa. Such bonds shall be of such denomination or denominations as the council may direct, not to exceed $1,000.00 each, and not to be less than $50.00 each. They shall bear interest at a rate not to exceed six percent per annum, payable annually or semiannually, at such place or places as may be designated therein. They shall be issued under the corporate seal of the city or town and shall be signed by the mayor and the treasurer thereof and shall be disposed of at not less than par.
The council may, as provided in Section 11-50-97, by contract with the owner or owners of the sewers or sewer system purchased, provide that the bonds thereafter to be issued to pay for the same may, upon the consummation of said purchase contract, be issued to said owner or owners at not less than par in payment of the purchase price of such work.
*(Acts 1923, No. 165, p. 134; Code 1923, §2111; Code 1940, T. 37, §636.)*
##### **§ 11-50-99** Disposition of Proceeds from Sale of Bonds {#sec-11-50-99 omnilex-key=us-al-statutes--title-11--11-50-99}
The proceeds from the sale of bonds authorized to be issued by this division shall be applied only to the payment of the cost of the sewer or sewers or sewer system designated in the ordinance providing for their issue.
*(Acts 1923, No. 165, p. 134; Code 1923, §2114; Code 1940, T. 37, §639.)*
##### **§ 11-50-100** Payment and Redemption of Bonds Generally {#sec-11-50-100 omnilex-key=us-al-statutes--title-11--11-50-100}
The bonds issued under this division shall be payable in from 10 years to 15 years from their date as determined by the council, but any bond or bonds so issued and sold shall, at the option of the city or town, be payable at any interest period.
In the event the city or town should elect to pay off any such bond or bonds before maturity, it shall pay as a bonus to the holder thereof a sum equal to one-fourth the annual interest thereon, and the city or town shall give public notice of its intention to redeem said bond or bonds, describing the same by number and series, by publication once a week for three successive weeks in a newspaper published in said city or town or of general circulation therein; and, if said bonds are registered, such notice shall also be sent by registered or certified mail to the address of the registered owner thereof where such address is shown on the book of registration.
*(Acts 1923, No. 165, p. 134; Code 1923, §2112; Code 1940, T. 37, §637.)*
##### **§ 11-50-101** Issuance, Etc., of Bonds by Municipalities Having Less Than Six Thousand Inhabitants {#sec-11-50-101 omnilex-key=us-al-statutes--title-11--11-50-101}
Any city or town having a population of less than 6,000 inhabitants may, notwithstanding the amount or character of any bonded or other indebtedness, issue such bonds, but the same shall be a lien or charge only against the property improved and drained and against the fund collected from the assessments levied against the property improved and drained and shall not be the general obligation of the city or town, nor shall such city or town be in any way liable to the holders of such bonds in case of failure to collect the same, but such bonds may be secured by mortgage on or deed of trust to said sewers or sewer system.
Such last described bonds, when issued, shall convey and transfer to the owners thereof all right, title, and interest in and to the assessment and the lien upon the respective lots or parcels of ground provided for in this division, which liens and assessments shall stand as security for such bonds and coupons until they are paid, with full power in the holder of said bonds or coupons to enforce the collection thereof by foreclosure action in any court of competent jurisdiction. The first bond or coupon holder who institutes a foreclosure action in any court against any property assessed shall only be entitled to have the proceeds of said suit applied pro rata to the payment of his own bonds and the bonds held by others so that no more than one foreclosure action shall be brought against any one lot or parcel of land.
*(Acts 1923, No. 165, p. 134; Code 1923, §2113; Code 1940, T. 37, §638.)*
##### **§ 11-50-102** Liability of Municipal Officials to Bondholders for Diversion, Misappropriation, Etc., of Funds for Payment of Bonds {#sec-11-50-102 omnilex-key=us-al-statutes--title-11--11-50-102}
The official charged with the duty of collecting assessments shall be liable on his official bond to any holder of the bonds authorized to be issued under this division for any loss or injury to such bondholder caused by the diversion by said officer of any funds or part thereof to the payment of any bonds or coupons or indebtedness of the city or town other than the bonds and interest coupons entitled and indebtedness authorized by this division to be paid out of said fund or by the use or misappropriation by said officer of any part of the funds out of which said bonds are required and contemplated in this division to be paid for any other purpose than provided for in this division or for the benefit of the city or town or others. All members of the governing body or bodies of the city or town who shall, by their vote or in any other manner, cause, aid, or encourage any such diversion, use or misappropriation of the funds out of which the bondholders are entitled to be paid for any other purpose than that authorized and required in this division whereby loss or injury to the bondholders or any of them is caused shall be jointly and severally liable to such bondholders injured to the extent of such loss or injury.
*(Acts 1923, No. 165, p. 134; Code 1923, §2116; Code 1940, T. 37, §641.)*
##### **§ 11-50-103** Maintenance of Account and Disbursement of Proceeds from Assessments Generally {#sec-11-50-103 omnilex-key=us-al-statutes--title-11--11-50-103}
The city or town officials charged with the duty of collecting assessments shall keep a correct account of all funds arising from such assessments and shall carefully and correctly keep a separate account of the fund arising from the collecting of assessments under each particular purchase or improvement ordinance, and no proceeds arising from assessments levied for one improvement or improvements shall be directed to the payment of the bonds or coupons issued for any other purchase or improvement or to the payment of any other indebtedness of the city or town or for any other purpose whatsoever, except as expressly provided in this division.
*(Acts 1923, No. 165, p. 134; Code 1923, §2115; Code 1940, T. 37, §640.)*
##### **§ 11-50-104** Deposit of Assessment Proceeds in Bank; Manner of Withdrawal Thereof {#sec-11-50-104 omnilex-key=us-al-statutes--title-11--11-50-104}
All proceeds arising from the collection of assessments levied under the provisions of this division shall, as soon as collected, be deposited and shall be kept by the city or town official charged with the duty of collecting assessments in some bank or banks paying interest on time deposits to be designated by the council. Said collections shall not be deposited with the general funds of the city or town but shall constitute a separate deposit to the account of “public bond sewerage fund” and shall be drawn out on check or order, and the council may pass the proper ordinances and regulations requiring countersignature of said check or order.
*(Acts 1923, No. 165, p. 134; Code 1923, §2117; Code 1940, T. 37, §642.)*
##### **§ 11-50-105** Use of Proceeds to Redeem Bonds and Coupons; Disposition of Excess {#sec-11-50-105 omnilex-key=us-al-statutes--title-11--11-50-105}
At any time when the amount of any particular fund shall, with its accumulations, equal the amount of outstanding bonds and accrued interest entitled to payment out of such fund, the council shall have authority to redeem any and all such bonds that may be presented for redemption at such time thereafter as the holders thereof may desire to present the same for redemption.
The excess, if any, when all bonds and coupons are redeemed and the interest thereon paid, and not in excess of the total cost and expense of the purchase of such sewer or sewers or sewer system, shall be converted into the general revenue fund of the city or town.
*(Acts 1923, No. 165, p. 134; Code 1923, §2118; Code 1940, T. 37, §643.)*
##### **§ 11-50-106** Refunding of Excess Assessments - Authority and Procedure Generally {#sec-11-50-106 omnilex-key=us-al-statutes--title-11--11-50-106}
In the event the amount collected from the assessment under any ordinance authorizing the purchase of a sewer, sewers, or sewer system shall exceed the total cost and expense of the same, there shall be refunded to each of the parties affected by said assessment a proportionate amount of the excess upon demand made thereafter by said parties within 12 months after maturity or payment of the bonds authorized by this division.
*(Acts 1923, No. 165, p. 134; Code 1923, §2119; Code 1940, T. 37, §644.)*
##### **§ 11-50-107** Refunding of Excess Assessments - Limitation Period for Presentation of Claims; Disposition of Amounts Not Refunded {#sec-11-50-107 omnilex-key=us-al-statutes--title-11--11-50-107}
If such claims be not presented within 12 months from the date of the maturity or payment of the bonds, they shall be forever barred, and such amounts shall be converted into the general revenue fund of the city or town.
*(Acts 1923, No. 165, p. 134; Code 1923, §2120; Code 1940, T. 37, §645.)*
##### **§ 11-50-108** Adoption of Rules and Regulations for Operation and Maintenance of Sewers or Sewer System Purchased; Charges for Use of Sewers or Sewer System {#sec-11-50-108 omnilex-key=us-al-statutes--title-11--11-50-108}
The council of any city or town purchasing any sewer or sewers or sewer system may make reasonable rules and regulations for the operation and maintenance of the same and may provide penalties for the violation thereof. No charge shall be made for the use of said sewers or sewer system against any property assessed under the provisions of this article for the cost of the sewer or against the owners or tenants thereof, but the council may prescribe a maximum volume of drainage for commercial or manufacturing business or plants and make charges for such excess or otherwise regulate the same.
*(Acts 1923, No. 165, p. 134; Code 1923, §2121; Code 1940, T. 37, §646.)*
#### **Division 3** Charges for Services of Sewer Systems
##### **§ 11-50-120** Definitions {#sec-11-50-120 omnilex-key=us-al-statutes--title-11--11-50-120}
When used in this division, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) MUNICIPALITY. A municipal corporation organized under the laws of this state.
(2) SEWER SYSTEM. Any or all of the following: sanitary sewer mains, sanitary sewer laterals and branches, sanitary sewer service lines, sanitary outfall lines, a sewage disposal plant or plants, a sewage treatment plant or plants, and appurtenances to any thereof.
*(Acts 1953, No. 847, p. 1138, §1.)*
##### **§ 11-50-121** Establishment, Etc., of Charges for Sewer Services; Combination of Sewer System and Water Distribution System and Establishment, Etc., of Single Schedule of Charges, Etc., Therefor {#sec-11-50-121 omnilex-key=us-al-statutes--title-11--11-50-121}
(a) Each municipality owning a sewer system shall have the power to establish and collect and from time to time alter charges for service furnished by or from said sewer system. All such charges shall be uniform for the same type, class, and amount of use of or service by or from the sewer system, and such charges may be measured or computed on the basis of any one or more or combination of the following:
(1) The quantity of water used upon the premises served by the sewer system;
(2) The number and kind of water outlets upon or in connection with such premises;
(3) The number and kind of plumbing facilities or sewer fixtures on or in connection with such premises;
(4) The number of persons residing or working in or otherwise connected with or using such premises;
(5) The type or character of such premises;
(6) The capacity of the improvements on or connected with such premises; and,
(7) Any other factors determining the type, class, and amount of the use of or service by or from the sewer system; provided, however, that if any such charge shall be measured by the quantity of water used, the municipality shall make appropriate provision for adjustment of charges on account of consumption of water which does not enter the sewer system.
(b) Any charges for sewer service, measured by quantity of water used, to users of the sewer system who obtain all or any part of their water supply from sources other than the water system of the municipality may be determined by gauging or metering or in any other manner approved by the municipality.
(c) In cases where the character of the sewage from any premises is such that it imposes an unreasonable burden upon the sewer system, the service rendered by the sewer to such premises may be given a special classification in the municipality’s schedule of sewer service charges and an additional charge may be made for such special classification of service, or the municipality may require such sewage to be treated in such manner as shall be specified by the municipality before it is discharged into the sewer system.
(d) Any municipality may combine its sewer system and any water distribution system owned by it and may establish a single schedule of rates, fees, and charges for the water and services furnished by such combined system and may provide for reductions in such schedule in cases where water is furnished to premises that are not connected with the sewer system.
*(Acts 1953, No. 847, p. 1138, §2.)*
##### **§ 11-50-122** Enforcement of Charges {#sec-11-50-122 omnilex-key=us-al-statutes--title-11--11-50-122}
Any municipality shall have the power to enforce collection of any such sanitary sewer service charges by discontinuance of sanitary sewer service to any premises with respect to which payment of such charges is delinquent and disconnection of such premises from the municipality’s sewer system and shall further have the power to enforce collection of such sanitary sewer service charges by discontinuance of water service to such premises and disconnection of such premises from any water distribution system owned by the municipality, regardless of whether such water distribution system shall have been combined with the sewer system and regardless of whether payment of any charge for water may be delinquent.
*(Acts 1953, No. 847, p. 1138, §3.)*
#### **Article 4** Sale, Lease, Etc., of Electric, Gas or Waterworks Plants by Municipalities
##### **§ 11-50-140** Definitions {#sec-11-50-140 omnilex-key=us-al-statutes--title-11--11-50-140}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) ELECTRIC LIGHT PLANT. A plant and system for the generation, manufacture, and distribution of electricity or a system for the purchase, transportation, and/or distribution of electricity, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(2) GAS PLANT. A plant and system for the manufacture and distribution of gas or a system for the purchase, transportation, and/or distribution of manufactured or natural gas, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(3) WATERWORKS PLANT. A plant and system for the gathering, collecting, or impounding of water and the distribution thereof for domestic or industrial use or both or a plant or system for the purchase, transportation, and/or distribution of water for domestic or industrial use or both, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
*(Acts 1909, No. 212, p. 253; Code 1923, §2059; Code 1940, T. 37, §376; Acts 1969, No. 635, p. 1164.)*
##### **§ 11-50-141** Authorized {#sec-11-50-141 omnilex-key=us-al-statutes--title-11--11-50-141}
When any city or town in this state is or may be the owner of any electric light plant, gas plant, or waterworks plant and the board of aldermen or other governing body of such city or town deems it to be to the best interest of such city or town and the inhabitants thereof to sell, lease or dispose of such electric light plant, gas plant, or waterworks plant, such sale or disposition may be made as provided in this article.
*(Acts 1909, No. 212, p. 253; Code 1923, §2059; Code 1940, T. 37, §376; Acts 1969, No. 635, p. 1164.)*
##### **§ 11-50-142** Passage of Resolution by Governing Body Providing for Sale, Lease, Etc {#sec-11-50-142 omnilex-key=us-al-statutes--title-11--11-50-142}
Before any sale, lease, or disposition of an electric light plant, gas plant, or waterworks plant of any city or town shall be made, the board of aldermen or other governing body shall pass a resolution declaring it to be, in the judgment of said board of aldermen or other governing body, to the best interests of the city or town that the electric plant, gas plant, or waterworks plant of such city or town shall be sold, leased, or disposed of and shall fix in said resolution the minimum price at which the sale, lease, or disposition should be had.
*(Acts 1909, No. 212, p. 253; Code 1923, §2060; Code 1940, T. 37, §377.)*
##### **§ 11-50-143** Ordering of Special Election for Authorization of Sale, Lease, Etc {#sec-11-50-143 omnilex-key=us-al-statutes--title-11--11-50-143}
After the passage of said resolution, the said board of aldermen or other governing body shall order a special election to be held at which all the voters in said city or town, who are qualified voters under the laws of this state may vote on the proposition of whether such sale, lease or other disposition of such electric plant, gas plant, or waterworks plant shall be authorized.
*(Acts 1909, No. 212, p. 253; Code 1923, §2061; Code 1940, T. 37, §378.)*
##### **§ 11-50-144** Calling of Election {#sec-11-50-144 omnilex-key=us-al-statutes--title-11--11-50-144}
Such election, if ordered by the resolution of the board of aldermen or other governing body of the city or town, shall be called by the mayor or other chief executive officer of such city or town to be held on the day fixed by the said resolution of the board of aldermen or other governing body of the city or town, which day shall not be less than 30 days from the day of the passage of the said resolution ordering the election.
*(Acts 1909, No. 212, p. 253; Code 1923, §2062; Code 1940, T. 37, §379.)*
##### **§ 11-50-145** Notice of Election {#sec-11-50-145 omnilex-key=us-al-statutes--title-11--11-50-145}
Notice of said election shall be given by advertisement published at least once a week for three consecutive weeks in one or more newspapers published in the city or town owning the plant proposed to be sold or disposed of and, if there is no paper so published, notices shall be posted at five or more public places in such city or town and shall be published in a newspaper published in the county in which the city or town is located.
*(Acts 1909, No. 212, p. 253; Code 1923, §2063; Code 1940, T. 37, §380.)*
##### **§ 11-50-146** Appointment of Clerks, Returning Officers, Etc., and Designation of Voting Places {#sec-11-50-146 omnilex-key=us-al-statutes--title-11--11-50-146}
The managers, clerks, and returning officers of the election shall be appointed, and the voting places shall be designated by said board of aldermen or other governing body.
*(Acts 1909, No. 212, p. 253; Code 1923, §2065; Code 1940, T. 37, §382.)*
##### **§ 11-50-147** Qualifications for Voting; Provision of Ballots; Conduct of Election Generally {#sec-11-50-147 omnilex-key=us-al-statutes--title-11--11-50-147}
At the election so ordered all qualified voters under the laws of this state who are resident citizens of such city or town may vote, and the ballot shall be provided or furnished by the board of aldermen or other governing body, and the election shall be conducted in conformity to the laws of this state, except as otherwise provided in this article.
*(Acts 1909, No. 212, p. 253; Code 1923, §2064; Code 1940, T. 37, §381.)*
##### **§ 11-50-148** Form and Marking of Ballots {#sec-11-50-148 omnilex-key=us-al-statutes--title-11--11-50-148}
The ballots shall have plainly printed on them the words: “Shall the electric plant, or gas plant or waterworks plant (as the case may be) be sold, leased or disposed of?” and following said words shall be “Yes” and below that “No” with convenient space for the voter to place a cross mark before the word expressive of his wish.
*(Acts 1909, No. 212, p. 253; Code 1923, §2066; Code 1940, T. 37, §383.)*
##### **§ 11-50-149** Disposition of Ballots at Conclusion of Election; Canvassing of Returns and Declaration of Election Results {#sec-11-50-149 omnilex-key=us-al-statutes--title-11--11-50-149}
The ballots shall be kept in a sealed box; and, at the conclusion of the election, the box shall be turned over forthwith by the managers to the officers designated as the returning officers and shall by them be safely and at once delivered to the mayor or other chief executive officer of such city or town. Within three days after such election the votes shall be canvassed and counted by the board of aldermen or other governing body of such city or town, and it shall declare the result.
*(Acts 1909, No. 212, p. 253; Code 1923, §2067; Code 1940, T. 37, §384.)*
##### **§ 11-50-150** Execution of Sale, Lease, Etc., by Governing Body and Terms Thereof {#sec-11-50-150 omnilex-key=us-al-statutes--title-11--11-50-150}
If the result of such election shall be in favor of a sale, lease, or disposition of the plant, the board of aldermen or other governing body of the city or town may proceed to sell, lease, or dispose of the electric light plant, gas plant, or waterworks plant owned by such city or town at a price not less than the minimum price fixed as provided in Section 11-50-142, and upon such terms and time of payment as to the said board of aldermen or governing body may seem best, but if there are deferred payments, the same must be secured by a lien on the plant sold or disposed of.
*(Acts 1909, No. 212, p. 253; Code 1923, §2068; Code 1940, T. 37, §385.)*
##### **§ 11-50-151** Purchaser to Assume Payment of Existing Bonded Indebtedness Upon Plant {#sec-11-50-151 omnilex-key=us-al-statutes--title-11--11-50-151}
If there is any bonded indebtedness existing which was incurred in the purchase or construction of such electric plant, gas plant or waterworks plant and which is a lien upon the plant, the purchaser shall assume the payment of such bonded indebtedness.
*(Acts 1909, No. 212, p. 253; Code 1923, §2069; Code 1940, T. 37, §386.)*
#### **Article 5** Transfer of Water Systems Without Elections
##### **§ 11-50-170** Authorized; Terms; Adoption of Resolutions Authorizing Transfer {#sec-11-50-170 omnilex-key=us-al-statutes--title-11--11-50-170}
(a) Every public corporation heretofore or hereafter organized or created in this state pursuant to authorization or determination by a municipality or its governing body, which public corporation now or hereafter owns a water system or systems, and any municipality in this state in which any part of such water system or systems is situated are each hereby authorized, without the necessity of an election of qualified voters of any such municipality or of any other approval or proceeding other than those specifically prescribed in this article, to transfer and convey such system or systems and all right, title, and interest therein, including, without limitation, all reversionary, residuary, or remainder rights provided by law to any other public corporation, the certificate of incorporation of which was filed in the office of the probate judge of the same county in which was filed the certificate of incorporation of the public corporation proposing to make such transfer and conveyance or in the office of the probate judge of an adjacent county.
(b) Any such transfer and conveyance may be made with or without pecuniary consideration and on such terms and conditions as the governing body of such municipality and the board of directors or other governing body of the public corporation making the transfer and conveyance may determine.
(c) Any such transfer and conveyance shall be made only upon the adoption by the governing body of each municipality in which is situated any part of the water system or systems proposed to be transferred and conveyed and by the board of directors or other governing body of the public corporation proposing to make such transfer and conveyance of appropriate resolutions authorizing such transfer and conveyance. Such resolution of the board of directors or other governing body of the public corporation shall set forth its finding and determination that the public corporation to which the transfer is to be made is one to which a transfer and conveyance can properly be made under the provisions of this article.
*(Acts 1969, No. 773, p. 1379, §1.)*
##### **§ 11-50-171** Publication of Notice of Adoption of Resolution Authorizing Transfer, Certain Terms Thereof, Etc.; Limitation Period for Action to Restrain Proposed Transfer, Etc {#sec-11-50-171 omnilex-key=us-al-statutes--title-11--11-50-171}
(a) After the adoption of proceedings providing for the transfer and conveyance of any water system or systems, the public corporation and municipality or municipalities proposing to make such transfer and conveyance shall cause to be published once a week for two successive weeks in a newspaper having general circulation within the limits of such municipality or municipalities a notice in substantially the following form (the blanks being first properly filled in) with the names of the public corporation and the municipality or municipalities appended thereto:
“A resolution has been adopted by the board of directors of the _____ (herein insert the name of the public corporation proposing to make the transfer) and a resolution (or resolutions) has (or have) been adopted by the governing body (or bodies) of _____ (herein insert the name or names of the municipality or municipalities proposing to make the transfer) pursuant to the provisions of Article 5 of Chapter 50 of Title 11 of the Alabama Code, authorizing the transfer and conveyance of the water system (or systems) owned by such public corporation and situated in whole or in part in such municipality (or municipalities).”
If the transferee public corporation is to assume the due and prompt payment of the principal and interest on such bonds or other obligations and the due and prompt performance of all other agreements and conditions in the manner authorized by such outstanding bonds, mortgages, indentures, resolutions, or other obligations, the notice shall contain the following:
“_____ (herein insert the name of the transferee public corporation) has agreed to assume _____ (herein insert a brief description of the obligations assumed).”
If a trust agreement or agreements have been established, the notice shall contain the following:
“A trust agreement has been established with _____ (herein insert the name of the bank) consisting of cash or interest-bearing general obligations of the United States of America, or both, to provide for the payment and retirement of _____ (herein insert a brief description of the bonds or other securities referred to in Section 11-50-172. If there is more than one such issue also add a brief description of each trust established therefor).”
In addition, the notice shall contain the following:
“Any action or proceeding questioning the validity of the said resolutions or the proposed transfer and conveyance or _____ (herein insert the assumption of obligations or the trust agreement or agreements, whichever is applicable) must be commenced within 30 days after the first publication of this notice.”
Such notice shall also be published by posting copies thereof at three public places within the limits of such municipality. Such public corporation, municipality, or municipalities shall also cause each trustee or paying agent, as the case may be, to mail a copy of the said notice, postage prepaid, to each owner or holder of any of the bonds or other securities referred to in the said notice, the names and addresses of which are known to such trustee or paying agent.
(b) Any action or proceeding in any court to set aside the authorizing proceedings or to restrain the proposed transfer and conveyance or the assumption of obligations, if any, or the execution of the proposed trust agreement or agreements, if any, or to obtain any other relief with respect to any thereof, upon any ground, must be commenced within 30 days after the first publication of such notice in a newspaper as provided in subsection (a) of this section. After the expiration of such period of limitation, no right of action or defense founded upon the invalidity of the authorizing proceedings shall be asserted nor shall the validity of the said transfer and conveyance or of the assumption of obligations, if any, or of the said trust agreement or agreements, if any, or the said authorizing proceedings be open to question in any court upon any ground whatever, except in an action or proceeding commenced within such period.
*(Acts 1969, No. 773, p. 1379, §4.)*
##### **§ 11-50-172** Provision by Transferor for Payment of Outstanding Bonds, Mortgages, Indentures, Etc {#sec-11-50-172 omnilex-key=us-al-statutes--title-11--11-50-172}
If there are outstanding any bonds, mortgages, indentures, resolutions, or other obligations, including revenue bonds or other securities, payable from or secured by a pledge of the revenues or earnings of or constituting a lien upon the water system or systems proposed to be transferred and conveyed under the provisions of this article, the public corporation proposing to make such transfer and conveyance:
(1) Shall make provision for the assumption by the transferee public corporation of the due and prompt payment of the principal of and interest on such bonds or other obligations and the due and prompt performance of all other agreements and conditions in the manner authorized by such outstanding bonds, mortgages, indentures, resolutions, or other obligations, or
(2) In the absence of any such authorization or, at the election of the transferor and transferee public corporations, shall make provision for the payment thereof satisfactory to any one or more banks or trust companies named as trustee or serving as such trustee under such mortgage, indenture, or resolution or, if there is no such trustee, to the bank or trust company serving as paying agent of such bonds or other securities, by establishing with such bank or trust company, as trustee, an irrevocable trust fund consisting of cash or interest-bearing general obligations of the United States of America or both to provide for the payment and retirement of all such bonds and other securities and the interest thereon.
*(Acts 1969, No. 773, p. 1379, §2.)*
##### **§ 11-50-173** Execution of Necessary Agreements and Instruments Authorized {#sec-11-50-173 omnilex-key=us-al-statutes--title-11--11-50-173}
Each public corporation and municipality referred to in this article is hereby further authorized to enter into any agreements and to execute any instruments which their respective governing bodies may deem necessary or appropriate in order to effectuate the provisions of this article.
*(Acts 1969, No. 773, p. 1379, §3.)*
##### **§ 11-50-174** Construction of Article; Exemption from Jurisdiction and Regulation of State Public Service Commission, Etc {#sec-11-50-174 omnilex-key=us-al-statutes--title-11--11-50-174}
(a) Nothing contained in this article shall be construed to authorize any public corporation or municipality to convey any water system in such manner that title thereto may vest in private ownership; provided, that title to such system may be subjected to a mortgage, deed of trust, or pledge agreement as security for repayment of money borrowed by the public corporation to which the same is transferred.
Nothing contained in this article shall be construed as a restriction or limitation upon any authority which any public corporation or municipality now existing or hereafter formed may have in the absence thereof, but this article shall be construed to be supplemental and additional to authority conferred by other laws. No proceedings, notices, or approval shall be required, except as expressly prescribed in this article, any other law to the contrary notwithstanding.
(b) All matters authorized in this article shall be exempt from all jurisdiction of and regulation by the Alabama Public Service Commission and by any other regulatory body.
*(Acts 1969, No. 773, p. 1379, §§5, 6.)*
#### **Article 6** Transfer of Water and Sewer Systems by Municipalities Without Elections
##### **§ 11-50-190** Definitions {#sec-11-50-190 omnilex-key=us-al-statutes--title-11--11-50-190}
For the purposes of this article, the following terms shall have the meanings respectively ascribed to them in this section:
(1) MUNICIPALITY. A municipal corporation organized and existing under the laws of Alabama.
(2) WATER SYSTEM. Facilities for the gathering, collecting, impounding, treatment, transmission, and distribution, or any of them, of water for domestic use or for industrial use, or both, together with all appurtenances to any such facilities.
(3) SANITARY SEWER SYSTEM. Facilities for the collection, transmission, treatment, and disposal of sewage, together with all appurtenances to any such facilities.
(4) COMBINED SYSTEM. A consolidated system resulting from the combination of any water system and sanitary system.
(5) SYSTEM. A water system, a sanitary system, or a combined system.
*(Acts 1975, No. 831, §1.)*
##### **§ 11-50-191** Conveyance Authorized; Terms; Ordinance or Resolution {#sec-11-50-191 omnilex-key=us-al-statutes--title-11--11-50-191}
Each municipality which now or hereafter owns a system or part of a system is hereby authorized to transfer and convey one or more systems, or any part or parts of a system or systems, or any rights incidental thereto, without the necessity of authorization at an election of the qualified voters of such municipality, to any other municipality in Alabama. Any such transfer or conveyance may be made with or without pecuniary consideration and on such terms and conditions as the governing body of the municipality owning such system or systems or part or parts thereof may determine. Any such transfer and conveyance shall be made only upon the enactment by the governing body of the municipality owning such system, or systems or part thereof, of an ordinance or resolution authorizing such transfer and conveyance.
*(Acts 1975, No. 831, §2.)*
##### **§ 11-50-192** Agreements {#sec-11-50-192 omnilex-key=us-al-statutes--title-11--11-50-192}
The municipality making any such conveyance and the municipality to which such conveyance is to be made are hereby authorized to enter into any agreements which they may deem necessary or appropriate in order to effectuate such transfer and may include in the instrument of transfer any conditions or stipulations deemed advisable by their respective governing bodies and authorized by ordinance or resolution adopted by the governing body of each such municipality. Nothing contained in this article shall be construed to authorize any municipality to convey any system or systems or part thereof so as to vest title thereto in private ownership and control; provided, that title to any system or systems or part thereof may be subjected to a mortgage, deed of trust, or pledge agreement as security for repayment of money borrowed by the municipality to which such conveyance is made.
*(Acts 1975, No. 831, §3.)*
#### **Article 7** Transfer of Gas System Without Elections
##### **§ 11-50-210** Definitions {#sec-11-50-210 omnilex-key=us-al-statutes--title-11--11-50-210}
For the purposes of this article, the following terms shall be deemed to have the meanings respectively ascribed to them in this section:
(1) MUNICIPALITY. A municipal corporation in the State of Alabama.
(2) PUBLIC GAS CORPORATION. A public corporation having corporate power to own and operate one or more gas systems and existing under the provisions of any of the following: Articles 8, 9, and 12 of this chapter.
(3) AUTHORIZING MUNICIPALITY. Each municipality which authorized the incorporation of a particular public gas corporation or the governing body of which consented to, or made determinations prerequisite to, the incorporation of a particular public gas corporation.
(4) GAS SYSTEM. A plant and system for the manufacture and distribution of gas or a system for the purchase, transportation, and distribution, or any of them, of manufactured or natural gas, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(5) COMMISSION. Alabama Public Service Commission.
(6) REGULATED UTILITY. A corporation that is a utility within the meaning of Section 37-4-1 and that is subject to regulation by the commission.
Each of the foregoing definitions shall be deemed applicable whether the word defined is herein used in the singular or plural.
*(Acts 1975, No. 1212, §1.)*
##### **§ 11-50-211** Conveyance Authorized; Terms and Conditions; Ordinances and Resolutions {#sec-11-50-211 omnilex-key=us-al-statutes--title-11--11-50-211}
Every municipality shall have the power, without the necessity of an election of the qualified voters of such municipality, to transfer and convey to any regulated utility any gas system, or part thereof, owned by the said municipality; and any public gas corporation shall have the power, without the necessity of an election of the qualified voters of any authorizing municipality, to transfer and convey to any regulated utility any gas system, or part thereof, owned by the said public gas corporation; provided, that:
(1) Prior to any such transfer or conveyance by a municipality, its governing body must have adopted an ordinance authorizing such transfer and conveyance;
(2) Prior to any such transfer and conveyance by a public gas corporation, its board of directors must have adopted a resolution authorizing such transfer and conveyance, and each authorizing municipality with respect to that public gas corporation must have adopted an ordinance consenting to the said transfer and conveyance; and
(3) Any such transfer and conveyance by either a municipality or a public gas corporation may be made only after prior approval thereof by the commission and must be made for a consideration not less than the fair market value of the property transferred and conveyed, as such fair market value may be determined by the commission, and on such other terms and conditions as may be provided in the aforesaid ordinance or resolution authorizing such transfer and conveyance and as may be approved by the commission.
*(Acts 1975, No. 1212, §2.)*
##### **§ 11-50-212** Implementation of Article {#sec-11-50-212 omnilex-key=us-al-statutes--title-11--11-50-212}
Each municipality and public gas corporation is hereby further authorized to enter into any agreements and to execute any instruments which their respective governing bodies may deem necessary or appropriate in order to effectuate the transfer and conveyance of a gas system pursuant to the provisions of this article.
*(Acts 1975, No. 1212, §3.)*
##### **§ 11-50-213** Article Supplemental {#sec-11-50-213 omnilex-key=us-al-statutes--title-11--11-50-213}
Nothing contained in this article shall be construed as a restriction or limitation upon any authority which any municipality or public gas corporation now existing or hereafter formed may have under the provisions of any other law, but this article shall be construed to be supplemental and additional to all authority otherwise conferred by law. No proceedings, notices, or approval shall be required, except as herein expressly prescribed, any other law to the contrary notwithstanding.
*(Acts 1975, No. 1212, §4.)*
#### **Article 8** Waterworks and Sewer Boards
#### **Division 1** General Provisions
##### **§ 11-50-230** Definitions {#sec-11-50-230 omnilex-key=us-al-statutes--title-11--11-50-230}
When used in this division, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) WATER SYSTEM. A waterworks plant and distribution system, together with all appurtenances thereto and all property used in connection therewith, including franchises.
(2) SEWER SYSTEM. A sanitary sewer system, including mains, laterals, sewage disposal plants or sewage treatment plants, and all appurtenances to such system and all property used in connection therewith.
(3) SYSTEM. A water system or a sewer system.
(4) SYSTEMS. A water system and a sewer system.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §394; Acts 1949, No. 686, p. 1057, §1.)*
##### **§ 11-50-231** Application for Authority to Form Corporation for Operation of Waterworks and Sanitary Sewer Systems; Adoption of Resolution by Municipal Governing Body Authorizing Incorporation {#sec-11-50-231 omnilex-key=us-al-statutes--title-11--11-50-231}
Whenever any number of natural persons, not less than three, shall file with the governing body of any municipality in this state an application in writing for authority to incorporate a public corporation for the purpose of operating a waterworks plant and system and a sanitary sewer system or either of such systems, and if it shall be made to appear to such governing body that each of said persons is a duly qualified elector of and owner of property in said municipality and if the governing body of said municipality shall adopt a resolution, which shall be duly entered upon the minutes of such governing body, wherein it shall be declared that it is wise, expedient, and necessary that such a corporation be formed and that the persons filing said application shall be authorized to proceed to form such corporation, then said persons shall proceed to organize such a corporation by executing and filing for record a certificate of incorporation as provided in Sections 11-50-232 and 11-50-233. No corporation shall be formed under this division unless the application provided for in this section shall be made and unless the resolution provided for in this section shall be adopted.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §394; Acts 1949, No. 686, p. 1057, §1.)*
##### **§ 11-50-232** Certificate of Incorporation - Contents; Amendment {#sec-11-50-232 omnilex-key=us-al-statutes--title-11--11-50-232}
(a) The certificate of incorporation of any corporation organized under this article shall state:
(1) The name of the corporation, which shall be a name indicating the system or systems for operation of which the corporation is organized (e.g., “The Waterworks and Sewer Board of the City (or Town) of _____”);
(2) The location of its principal office and the post office address thereof;
(3) The period for the duration of the corporation (if the duration is to be perpetual, this fact should be stated); and
(4) The objects for which the corporation is organized.
The certificate of incorporation may also contain any provisions not contrary to law which the incorporators may choose to insert for the regulation and conduct of the affairs of the corporation.
(b) Any corporation organized under this article may at any time amend its certificate of incorporation so as to provide for the operation of a system in addition to the system for the operation of which the corporation was originally organized, and shall at the same time make any change in the name of the corporation which may be made appropriate by reason of any amendment respecting the objects for which the corporation is organized. Any such amendment may be effected in the following manner: The board of directors of the corporation shall adopt a resolution setting forth the proposed amendment, which shall include any proposed change in the name of such corporation. If the governing body of the municipality which authorized the incorporation of the corporation shall, by resolution of its governing body, consent to such proposed amendment, the chairman of the board of directors, or other chief executive officer of the corporation, and the secretary of the corporation shall then file in the office of the judge of probate of the county in which the certificate of incorporation of the corporation is filed a certificate, in the name of and in behalf of the corporation and under its seal, reciting the adoption of the said respective resolutions by the board of directors and by the said governing body and setting forth the said proposed amendment. The proposed amendment shall become effective upon the filing of such certificate in the said office.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §395; Acts 1949, No. 686, p. 1057, §2.)*
##### **§ 11-50-233** Certificate of Incorporation - Acknowledgment, Filing, and Recordation {#sec-11-50-233 omnilex-key=us-al-statutes--title-11--11-50-233}
The certificate of incorporation shall be acknowledged before an officer authorized by the laws of this state to take acknowledgment of deeds. When so acknowledged, the certificate may be filed with the judge of probate of the county in which such city or town is located, who shall forthwith file such certificate and record the same.
When application has been made as provided in Section 11-50-231 and a certificate of incorporation filed and recorded as provided in this section, the applicants shall constitute a corporation under the name proposed in the certificate of incorporation.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §396.)*
##### **§ 11-50-234** Board of Directors {#sec-11-50-234 omnilex-key=us-al-statutes--title-11--11-50-234}
(a) Each corporation formed under this division shall have a board of directors which shall constitute the governing body of the corporation, which board shall consist of at least three members. All members of the board of directors shall be reimbursed for actual expenses incurred in and about the performance of their duties under this division, and the chairman of said board may, at the discretion of the board of directors, be paid a director’s fee in an amount not exceeding $15.00 each month, and each member of the board of directors other than the chairman may be paid a director’s fee in an amount not exceeding $10.00 each month. Any officer of the municipality shall be eligible for appointment and may serve as a member of the board of directors but shall not receive a fee for his services; provided, that at no time shall the board consist of more than two officers of the municipality.
The directors of the corporation shall be elected by the governing body of the municipality, and they shall be so elected that they shall hold office for staggered terms. The first term of office of one director shall be two years, of another director shall be four years, and of the third director shall be six years as shall be designated at the time of their election, and thereafter the term of office of each director shall be six years.
The governing body of any municipality which has heretofore or hereafter authorized the creation of a corporation as provided in this division may, at its option, increase the board of directors from three to five members to serve according to all the conditions and terms set forth in this division. In the event the governing body elects to increase such board of directors from three to five members, one member added to the board shall be appointed for a term of four years and the remaining member for a term of six years, and thereafter the term of each such director shall be six years; provided, that at no time shall such board consist of more than three officers of the municipality.
(b) The governing body of any municipality which has a population of less than 5,000 according to the most recent federal census and which has heretofore or hereafter authorized the creation of a corporation as provided in this division may, at its option, increase the board of directors from five to seven members to serve according to all the conditions and terms set forth in this division. In the event the governing body elects to increase such board of directors from five to seven members, one member added to the board shall be appointed for a term of four years and the remaining member for a term of six years, and thereafter the term of each such director shall be six years; provided, that at no time shall such board consist of more than three officers of the municipality.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §397; Acts 1943, No. 572, p. 575; Acts 1956, 2nd Ex. Sess., No. 113, p. 439; Acts 1986, No. 86-481, p. 915.)*
##### **§ 11-50-234.1** Meeting Expense Allowance for Board Members {#sec-11-50-234.1 omnilex-key=us-al-statutes--title-11--11-50-234.1}
The board of directors of any waterworks or sewer board heretofore or hereafter organized pursuant to the statute now codified as Sections 11-50-230 through 11-50-241, may by resolution adopted by such board of directors, authorize the payment by such board of a reasonable meeting expense allowance, not exceeding the daily pay of the highest paid employee of the board, to each member of the board of directors for expenses in attendance at meetings of the board of directors and attending to and supervising the business of such board.
*(Acts 1984, No. 84-375, p. 880.)*
##### **§ 11-50-235** Powers of Corporation Generally; Provisions in Mortgages, Deeds of Trust, or Pledge Agreements Executed by Corporation as to Rights of Parties Thereto, Etc.; Exemption from Taxation of Property and Income of Corporation {#sec-11-50-235 omnilex-key=us-al-statutes--title-11--11-50-235}
(a) Each corporation formed under this division shall have the following powers together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be in perpetuity) specified in its certificate of incorporation or until dissolved as provided in this division;
(2) To sue and be sued and to defend civil actions against it;
(3) To make use of a corporate seal and to alter the same at pleasure;
(4) To acquire, purchase, construct, operate, maintain, enlarge, extend, and improve any system or systems, the operation of which is provided for in the certificate of incorporation of such corporation (whether or not such system or systems were in existence or whether or not such system or systems were privately owned prior to acquisition by such corporation) and to receive, acquire, take, and hold, whether by purchase, gift, lease, devise, or otherwise, real, personal, and mixed property of any nature whatsoever that its board of directors may deem a necessary or convenient part of such system or systems;
(5) To borrow money and to issue in evidence of the borrowing interest-bearing bonds payable solely from the revenues derived from the operation of either or both of its systems (although the money so borrowed may be used for the benefit of or with respect to only one of its systems);
(6) To pledge for payment of its bonds any revenues from which such bonds are made payable and to mortgage, pledge, or otherwise convey the system or systems the revenues from which are so pledged;
(7) To sell at wholesale all or any part of its water supply to any other corporation organized under the provisions of this division or to any municipality for distribution to the inhabitants thereof and the surrounding territory;
(8) To sell water and to furnish sewer services and other services from any system, the operation of which is provided for in its certificate of incorporation and to establish and collect and alter charges for water, sewer services, and all services of any kind sold or furnished by it; provided, that charges for services from any sewer system shall be established in such manner that there shall be no charge with respect to any portion of such sewer system that may have been paid for wholly or in part by assessments against the property specially benefited thereby, but any person whose property is served in part by a portion of a sewer system so paid for and in part by a portion of a sewer system not so paid for may be charged an appropriate rate for the service rendered such property by a sewer disposal plant, a sewage treatment plant, or any other portion of a sewer system which has not to any extent been paid for by such assessments;
(9) To operate its sewer system and its water system as one consolidated and unified system, keeping the books and records thereof as one unit;
(10) To lease, exchange, sell, convey, and otherwise dispose of its real, personal, and mixed property by any form of legal conveyance or transfer;
(11) To exercise all powers of eminent domain now or hereafter conferred on municipalities in this state;
(12) To appoint and employ such officers and agents, including attorneys, as its business may require; and
(13) To provide for such insurance as its board of directors may deem advisable.
(b) Any mortgage, deed of trust, or pledge agreement made by such corporation may contain such agreements as the board of directors may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage, deed of trust or pledge agreement and respecting the rights or duties of the parties to such instrument or the parties for the benefit of whom such instrument is made; provided, that no such mortgage or deed of trust shall be subject to foreclosure.
(c) The property and income of such corporation shall be exempt from all taxation in the State of Alabama.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Acts 1939, No. 493, p. 713; Code 1940, T. 37, §398; Acts 1949, No. 686, p. 1057, §3.)*
##### **§ 11-50-236** Execution, Etc., of Contracts as Security for Repayment of Moneys Borrowed {#sec-11-50-236 omnilex-key=us-al-statutes--title-11--11-50-236}
To further secure the repayment of any money borrowed by it, such corporation may enter into a contract or contracts binding itself for the proper application of the money borrowed, for the continued operation and maintenance of any system or systems owned by it, or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from its system or systems (including the furnishing of water, sewer service, and any other services), for the disposition and application of its gross revenues or any part thereof and for any other act or series of acts not inconsistent with the provisions of this division for the protection of the loan and the assurance that the revenues from its system or systems will be sufficient to operate such system or systems, maintain the same in good repair and in good operating condition, pay the principal of and interest on any bonds payable from such revenues, and maintain such reserves as may be deemed appropriate for the protection of the loan and the efficient operation of such system or systems.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §399; Acts 1949, No. 686, p. 1057, §4.)*
##### **§ 11-50-237** Execution, Sale, Etc., of Bonds and Refunding Bonds of Corporation Generally; Terms, Denominations, Etc., Thereof; Charge, Application, Etc., of Revenues from Systems to Payment of Bonds, Etc., Generally; Vesting of Title to Systems in Municipality and Dissolution of Corporation Upon Payment of Bonds in Full {#sec-11-50-237 omnilex-key=us-al-statutes--title-11--11-50-237}
(a) All bonds issued by any corporation organized under this division shall be signed by the chairman of its board of directors or other chief executive officer and attested by its secretary, and the seal of such corporation shall be affixed thereto. Any interest coupons applicable to the bonds of such corporation shall be signed by the chairman of the board of directors or other chief executive officer, but a facsimile of such signature may be impressed on any such interest coupon in lieu of his manually signing the same. Any such bonds may be executed and delivered by such corporation at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this division and shall bear such rate or rates of interest payable and evidenced in such manner as may be provided by resolution of its board of directors. Any borrowing may be effected by sale of such bonds at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board of directors of such corporation to be most advantageous. Any bonds issued by such corporation may thereafter at any time (whether before, at or after the maturity thereof) and from time to time be refunded by the issuance of refunding bonds, which may be sold by such corporation at public or private sale at such price or prices as may be determined by its board of directors to be most advantageous or which may be exchanged for the bonds to be refunded. The corporation may pay all expenses, premiums, and commissions which its board of directors may deem necessary and advantageous in connection with any financing done by it. All bonds issued by such corporation shall be construed to be negotiable instruments although payable solely from a specified source. All such bonds, the income therefrom, and all mortgages and other instruments executed as security therefor shall be exempt from all taxation in the State of Alabama. All debts created and bonds issued by any such corporation shall be solely and exclusively an obligation of the corporation and shall not create an obligation or debt of any municipality. No municipality shall pledge its faith and credit for the payment of any debt incurred or bonds issued by such corporation.
(b) When any such corporation shall have borrowed money and issued its bonds payable from the revenues of its systems, or either of them, it shall charge, collect, and account for revenues from the operation of such system or systems sufficient to pay the principal of and the interest on said bonds as such principal and interest respectively mature, to pay the costs of operating and maintaining such system or systems and to create and maintain any reserves or special funds which may be provided for in the proceedings authorizing the issuance of the bonds. Any such corporation shall apply all such revenues in the manner and for the purposes provided for in such proceedings.
(c) When the principal of and the interest on any bonds of such corporation payable from the revenues derived from the operation of a system owned by such corporation shall have been paid in full, then such system shall thereupon become the property of the municipality which authorized the incorporation of such corporation, and title to said system shall thereupon immediately vest in such municipality. When title to all property owned by any corporation organized under the provisions of this division shall have vested in the municipality which authorized the incorporation thereof, then such corporation shall thereupon stand dissolved. The formation and dissolution of one or more corporations under the provisions of this division shall not prevent the subsequent formation hereunder of another corporation.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Acts 1939, No. 493, p. 713; Code 1940, T. 37, §400; Acts 1949, No. 686, p. 1057, §5.)*
##### **§ 11-50-238** Transfer of Systems to Corporation; Powers of Corporation as to Conveyance, Etc., of Title to Systems {#sec-11-50-238 omnilex-key=us-al-statutes--title-11--11-50-238}
Each municipality which may now or hereafter own a system or systems and which shall have authorized a corporation to be incorporated under the provisions of this division, is hereby authorized to transfer and convey any such system or systems to such corporation without the necessity of authorization at an election of the qualified voters of such municipality; provided, that an ordinance authorizing such transfer and conveyance shall have theretofore been duly enacted by the governing body of such municipality; provided further, that such corporation shall assume and agree to pay, as the same become due and payable, the principal of and interest on any obligations of such municipality that are payable from or secured by the revenues from the system or systems so transferred or shall pay to such municipality at the time of the transfer an amount of money sufficient to provide funds to retire any such obligations. The governing body of such municipality is hereby authorized to enter into any agreements with such corporation which may be necessary or appropriate in order to effectuate such transfer and in the instrument of transfer may impose any conditions or stipulations deemed advisable by its governing body and not inconsistent with the provisions of this division respecting the subsequent control, management, operation, extension, and improvement by such corporation of the system or systems so transferred to it. Nothing contained in this division shall be construed to authorize any corporation organized under this division to convey any system which may be transferred to it by a municipality so as to vest title thereto in private ownership and control; provided, however, that title to such a system may be subjected pursuant to the provisions of this division to a mortgage, deed of trust, or pledge agreement as security for repayment of money borrowed by such corporation.
*(Acts 1939, No. 494, p. 716; Code 1940, T. 37, §402; Acts 1949, No. 686, p. 1057, §6.)*
##### **§ 11-50-239** Acquisition, Operation, Etc., of Waterworks System Located in Another Municipality; Execution of Contract for Conveyance of System in Other Municipality Thereto Upon Payment in Full of Indebtedness of Corporation {#sec-11-50-239 omnilex-key=us-al-statutes--title-11--11-50-239}
(a) Each waterworks board now or hereafter organized under this division, in addition to all other powers conferred on it by law, is hereby further authorized and empowered to acquire, by purchase from the owner or owners thereof, all or any part of a waterworks plant or system and any rights incidental thereto located within the limits of any incorporated municipality in this state other than the municipality within which such board was organized to operate and thereafter to manage, operate, extend, enlarge, lease, mortgage, convey, and otherwise control the same as a part of its waterworks system in the municipality within which such board was organized to operate in all respects as if the properties so purchased were located in the municipality within which such board was organized to operate.
(b) Any such board may and is hereby further authorized and empowered to enter into a contract with such other municipality providing that when such board shall have paid all indebtedness incurred by it for the system acquired by it and located in such municipality (other than for operating expenses) then it shall thereupon convey to such other municipality the entire waterworks plant and system and all rights incidental thereto which may be owned by it and which may be located within the limits of such other municipality and also any property located outside of such other municipality which may be owned by it and which may be necessary for the operation therein of such waterworks plant and system, all as may be provided in such contract. If any such contract shall be so made then upon payment in full by such board of all such indebtedness, such board shall thereupon convey to such other municipality the properties and rights so agreed to be conveyed under the provisions of such contract. No election of the qualified voters of any such municipality shall be necessary to authorize such conveyance; provided, that nothing contained in this subsection shall authorize or empower any such board to convey to such other municipality any portion of the waterworks plant and system at any time owned by such board which may be necessary to the continued operation of that portion of its waterworks plant and system which may be located within the limits of the municipality within which such board was organized to operate.
*(Acts 1943, No. 316, p. 306.)*
##### **§ 11-50-240** Issuance of Revenue Bonds for Improvement and Extension of Waterworks Plants and Pledge of Revenues from Gas Systems for Payment Thereof {#sec-11-50-240 omnilex-key=us-al-statutes--title-11--11-50-240}
Any waterworks board organized under the provisions of this division which has acquired or may hereafter acquire a gas plant or system pursuant to the provisions of Division 2 of this article may, in addition to the powers granted it by said provisions, issue revenue bonds for the purpose of acquiring or constructing improvements and extensions to its waterworks plant and system and may pledge for payment of such revenue bonds not only revenues from such waterworks plant and system but also any available revenues from its gas plant and system. In order so to issue revenue bonds payable from the revenues of both its waterworks plant and system and its gas plant and system, it shall not be necessary for such waterworks board to combine such systems or to provide for their operation, maintenance, and repair as one combined and consolidated plant and system or for the keeping of books and records for one combined plant and system.
*(Acts 1959, No. 378, p. 993.)*
##### **§ 11-50-241** Construction of Division; Jurisdiction, Etc., of State Board of Health and State Public Service Commission {#sec-11-50-241 omnilex-key=us-al-statutes--title-11--11-50-241}
(a) Neither this division nor anything contained in this division shall be construed as a restriction or limitation upon any power, right, or remedy which any corporation now in existence or hereafter formed may have in the absence thereof, but shall be construed as cumulative and independent of any such power, right or remedy. No proceedings, notice, or approval shall be required for the incorporation of such corporation, the acquisition of any property, or the making of any loans or issuance of instruments in evidence thereof or as security therefor, except as prescribed in this division, any other law to the contrary notwithstanding; provided, however, that nothing in this division shall be construed to suspend the jurisdiction of the State Board of Health as may be otherwise provided by law.
(b) Any corporation organized under the provisions of this division shall be exempt from all jurisdiction of and regulation by the Alabama Public Service Commission.
*(Acts 1936-37, Ex. Sess., No. 228, p. 274; Code 1940, T. 37, §401.)*
#### **Division 2** Acquisition, Operation, Etc., of Gas Plants and Systems
##### **§ 11-50-260** Authorization Generally {#sec-11-50-260 omnilex-key=us-al-statutes--title-11--11-50-260}
Any waterworks board now existing, in the process of organization or incorporation or hereafter created or incorporated, under the provisions of Division 1 of this article shall, in addition to the powers, functions, and duties, rights and privileges now granted to or conferred upon such boards by law, have the same powers, functions, duties, rights, and privileges with respect to the acquisition and operation and maintenance of a plant and system for the manufacture and distribution of gas or a system for the purchase and distribution of manufactured or natural gas, the borrowing of money therefor and the issuance of revenue bonds to finance the cost of constructing, extending, improving, or completing such gas plants and systems as such waterworks boards now have or may hereafter have with respect to waterworks plants and systems. Such board shall have such powers, functions, duties, rights, and privileges with respect to gas plants and systems whether it owns or operates a waterworks plant or system or not.
*(Acts 1947, No. 154, p. 48, §1.)*
##### **§ 11-50-261** Additional Powers of Boards as to Gas Plants and Systems {#sec-11-50-261 omnilex-key=us-al-statutes--title-11--11-50-261}
Without limiting the powers provided for in Section 11-50-260, such waterworks board shall have the power to acquire by purchase, construction, condemnation, or any combination thereof a plant and system for the manufacture and distribution of gas and/or a system for the purchase and distribution of manufactured or natural gas and shall also have the power to receive, acquire, take, and hold, whether by purchase, sale, gift, lease, devise, or otherwise, all such real, personal, and mixed property of any nature whatsoever as it may deem necessary or convenient for the purchase, construction, operation, maintenance, enlargement, extension, and improvement of a gas plant and system for the manufacture of gas and the distribution thereof or the purchase and distribution of manufactured or natural gas, whether or not the same shall be in existence and whether or not the same shall be publicly or privately owned, and to operate, maintain, enlarge, extend and improve the same and to do all acts necessary to that end.
*(Acts 1947, No. 154, p. 48, §2.)*
##### **§ 11-50-262** Borrowing of Money and Issuance of Revenue Bonds Therefor; Execution of Mortgages, Pledges, Etc., as Security for Indebtedness; Provisions in Same as to Rights of Parties Thereto, Etc.; Sale of Gas to Municipalities Authorized {#sec-11-50-262 omnilex-key=us-al-statutes--title-11--11-50-262}
(a) Any waterworks board shall also have the power to borrow money and to issue revenue bonds as evidence of any money so borrowed, which bonds shall be payable solely from the revenues derived from the operation of such gas plant and system. As security for any money so borrowed, together with interest thereon and any obligations incurred or assumed, the board shall have the power to mortgage, pledge, or otherwise transfer and convey its real, personal, and mixed property or any part or parts thereof, whether then owned or thereafter acquired, including its franchises owned and thereafter acquired and all or any part of the revenues derived from such plant or system or any part thereof. The instrument whereunder such mortgage or pledge shall be made may contain such agreements as the board of directors of such corporation shall deem advisable respecting the operation and maintenance of such property and respecting the rights and duties of the parties to such instrument or for the benefit of whom such instrument is made; provided, that no such mortgage or pledge shall be construed so as to permit the foreclosure thereof.
(b) Any such waterworks board shall also have the power to contract for the sale of and to sell its gas supply or any part thereof to any person, firm, or corporation and to any city or town for distribution to the inhabitants thereof and the surrounding territory.
*(Acts 1947, No. 154, p. 48, §2.)*
##### **§ 11-50-263** Execution, Etc., of Contracts as Security for Repayment of Moneys Borrowed {#sec-11-50-263 omnilex-key=us-al-statutes--title-11--11-50-263}
In addition and for the further security of the lender, any waterworks board which has borrowed money under the authority of this division may enter into a contract or contracts with the lender binding itself for the proper application of money borrowed from such lender and for the operation and maintenance of any such gas plant and system, or any one or more of them or any part or parts thereof, and for the imposition, collection, safeguarding, and application, disposition, and remittance of reasonable rates for gas supply and service and for the promulgation of reasonable regulations relating to rates and services and for any other act, series of acts, duty, or thing not inconsistent with the provisions of this division and the law relating to such corporation for the protection of the loan and the assurance of a reasonable return upon the properties in which such loan is invested, out of which operating expenses and the principal and interest of such loan may be met.
*(Acts 1947, No. 154, p. 48, §3.)*
##### **§ 11-50-264** Issuance, Sale, Etc., of Bonds and Refunding Bonds of Board; Terms, Denominations, Taxation, Etc., Thereof; Charge, Application, Etc., of Revenues from System to Payment of Indebtedness; Vesting of Title to System in Municipality Upon Payment of All Indebtedness {#sec-11-50-264 omnilex-key=us-al-statutes--title-11--11-50-264}
(a) Any waterworks board which borrows money under the authority of this division may evidence the loan by revenue bonds in such form and of such tenor and maturities as may be agreed upon between the lender and the board. Any such bonds so issued may thereafter from time to time be refunded by the issuance by sale or exchange of refunding bonds at such times and in such form and of such tenor and maturities as may be agreed on by the board and the holders of the bonds so refunded if such refunding is by exchange and as may be determined by the board if such refunding is by sale of refunding bonds. Such waterworks board may restrict the source of payment of such bonds and the security given therefor to whatever extent the board of directors thereof shall deem advisable, but no such bonds shall purport to be effective to impose on the board or its funds or property any liability in excess of or inconsistent with the liability authorized to be incurred or assumed by this division. Such borrowing may be evidenced by sale of such bonds either at private or public sale in such manner and from time to time as may be determined by the board of directors of such waterworks board to be most advantageous, and the board may pay all expenses, premiums, and commissions which its board of directors may deem necessary and advantageous in connection with any such financing. All such bonds shall be regarded as negotiable instruments. All such bonds and all instruments executed as security therefor shall be exempt from all taxation under the laws of the State of Alabama. No city or town in which a waterworks board was organized to operate shall in any event be liable for any money so borrowed or any debt created by such waterworks board, nor shall the same be construed to be an indebtedness of or against such city or town. When any waterworks board shall have borrowed money as aforesaid, it shall charge, collect, and account for sufficient revenues from the operation of the plant and system to repay the money borrowed with interest thereon as the same shall mature and to pay all operating and maintenance expenses of such plant and system, and each year any income of the board in excess of operating and maintenance expenses and the amount required to be applied on any money so borrowed and the interest thereon shall be held or disbursed as may be provided in the proceedings pursuant to which such loan shall have been procured.
(b) When the cost of construction or purchase or other acquisition and all indebtedness otherwise incurred against such gas plant and system shall have been fully paid, then such gas plant and system, together with all rights-of-way, pipelines, improvements and appurtenances thereto and all other property pertaining to such gas plant and system, whether tangible or intangible, including franchises, shall thereupon become the property of the city or town in which the board was organized to operate, and all rights of said corporation in and to the same shall thereupon immediately vest in such city or town.
*(Acts 1947, No. 154, p. 48, §4; Acts 1949, No. 685, p. 1055.)*
##### **§ 11-50-265** Transfer of Gas Plant or System to Waterworks Board; Sale or Transfer of Plant or System by Board to Utility Regulated by State Public Service Commission {#sec-11-50-265 omnilex-key=us-al-statutes--title-11--11-50-265}
(a) Every city or town now or hereafter owning and operating a municipal gas plant or distribution system and in which municipality a waterworks board is now or hereafter incorporated under the provisions of Division 1 of this article is hereby authorized to transfer and convey such gas plant or system or both to such waterworks board pursuant to the provisions of an ordinance theretofore duly enacted by the governing body of such city or town and without the necessity of authorization at an election of the qualified voters thereof; provided, that if at the time of such transfer the city or town has outstanding any bonds or other obligations payable from or secured by the revenues or earnings of such gas plant or system, it shall be incumbent upon the waterworks board of such city or town to pay the amount thereof to such city or town at the time of such transfer or thereafter as such bonds or other obligations and interest thereon become due. The governing authority of such city or town is hereby authorized to enter into any agreements with such waterworks board as it deems necessary in order to effectuate such transfer and, in the instruments of transfer, may impose any conditions or stipulations deemed advisable for the subsequent control, management, operation, extension, and improvement of the gas plant or system by the waterworks board.
(b) Any waterworks board to which a municipal gas plant or system is transferred may thereafter sell or transfer such gas plant or system to utility companies or corporations regulated by the Alabama Public Service Commission, and title thereto may also be subjected to a mortgage or deed of trust as security for the repayment of any loan made or money borrowed by such waterworks board. No waterworks board shall sell or transfer such gas plant or system to utility companies or corporations regulated by the Alabama Public Service Commission, except with the express consent of the governing body of the municipality in which said waterworks board is located, and such consent shall be expressed by a duly adopted ordinance of the municipal governing body, which ordinance shall be adopted within 30 days of the date of sale or transfer.
*(Acts 1947, No. 154, p. 48, §6; Acts 1969, No. 636, p. 1165.)*
##### **§ 11-50-266** Notice to Owner of Existing Gas Plant or System in Territory of Intention of Waterworks Board to Operate Gas Plant or System Therein, Etc {#sec-11-50-266 omnilex-key=us-al-statutes--title-11--11-50-266}
Whenever any such waterworks board proposes to engage in the business of operating a plant or system for the manufacture of gas and the distribution thereof or the purchase and distribution of manufactured or natural gas and, at the time such waterworks board proposes to engage in such business, there is then in existence within the territory in which it is proposed to furnish manufactured or natural gas service a plant or distribution system or both or any part or parts thereof furnishing the service so proposed to be furnished by such waterworks board, then such waterworks board, as a condition precedent to the exercise of such authority, shall notify the owner of such plant or system by registered or certified mail of its intention to engage in such business and of its willingness to acquire on such terms and conditions as may be agreed upon so much of such plant and system as shall be located in the territory in which such waterworks board proposes to furnish such service and as shall be necessary and convenient therefor.
*(Acts 1947, No. 154, p. 48, §7.)*
##### **§ 11-50-267** Voluntary Sale of Existing Plant or System to Board by Owner {#sec-11-50-267 omnilex-key=us-al-statutes--title-11--11-50-267}
If within 30 days after receipt of such notice the owner shall propose voluntarily to sell and transfer such property to the waterworks board upon terms and conditions to be mutually agreed upon between the owner and the waterworks board and approved by the Alabama Public Service Commission and shall serve a copy of such proposal upon the waterworks board and upon the commission, the commission shall fix a time and place to hear and consider such proposal and notify all parties interested therein.
If the terms and conditions of purchase and sale shall be agreed upon by and between the owner and the waterworks board and approved by the commission, the commission shall announce its approval thereof by appropriate order, and the waterworks board shall by resolution authorize and direct the execution on the part of the waterworks board of such contract in writing and other instrument and take any and every other action with reference thereto necessary or appropriate to consummate such purchase and sale and the transfer to the waterworks board of possession of such acquired property and payment therefor in accordance with the terms of such agreement. If the owner fails or refuses to advise such waterworks board within 30 days after receipt of such notice of its purpose to sell such property, then the waterworks board may proceed as provided by law to construct, condemn or otherwise acquire a plant or system within the designated territory, and the advice to be given by the owner to such waterworks board shall be sufficient if it advises that the owner is willing to sell the property, provided the valuation as finally determined by the commission or courts is satisfactory to the owner. Upon the owner’s advising of its willingness to sell such property, acquisition of the property sought to be acquired shall proceed with the rights and privileges to the respective parties as set forth in this division.
*(Acts 1947, No. 154, p. 48, §8.)*
##### **§ 11-50-268** Application to Public Service Commission for Determination as to Terms of Acquisition; Hearing; Issuance of Order by Commission as to Terms, Conditions, Etc., of Acquisition {#sec-11-50-268 omnilex-key=us-al-statutes--title-11--11-50-268}
If acquisition of the property sought to be acquired by the waterworks board is not consummated under the provisions of Sections 11-50-266 and 11-50-267, the waterworks board before proceeding to engage in the proposed business shall take such steps as may be provided in this division. If the waterworks board and the owner fail within 60 days after written notice to the owner as provided in Section 11-50-266 to consummate the proposed acquisition, either the waterworks board or the owner may apply to the Public Service Commission within 15 days after the expiration of such 60 day period for a determination as to what property ought in the public interest to be included in the purchase and what price ought to be paid, having in view the cost of the property less a reasonable allowance for depreciation and obsolescence, and any other element which may enter into a determination of the fair value of the property to be purchased, but such price shall be determined without enhancement on account of future earning capacity or good will or of exclusive privileges derived from rights in the public streets or roads. Thereupon, the commission, after notice to all interested parties, shall hold a hearing thereon and make the determination aforesaid.
Such purchase shall include such portion of the property of the owner within the limits of the territory in which the waterworks board proposes to furnish such gas service as is suitable for and used in connection with the manufacture or distribution of gas within the territory which the waterworks board proposes to serve. The price shall include damages, if any, which the commission finds would be caused by the severance of the property proposed to be included in the purchase from other property of the owner. Such severance damages shall be separately found by the commission and shall not exceed 15 percent of the amount, exclusive of such damages, fixed by the commission to be paid to the owner. If any such property is subject to any mortgages, liens, or other incumbrances, the commission in making its determination shall provide for the deduction or withholding from the purchase price, pending discharge, of such sum or sums as it deems proper. The determination provided for in this section shall be made by order, and such order shall be deemed a final order of the commission. The commission may impose in its order reasonable conditions relating to the terms and conditions of the proposed acquisition and shall state in its order the findings of fact and conclusions of law upon which its determination and the conditions attached thereto are based.
*(Acts 1947, No. 154, p. 48, §9.)*
##### **§ 11-50-269** Appeal from Order of Commission {#sec-11-50-269 omnilex-key=us-al-statutes--title-11--11-50-269}
Any party shall have the right to appeal from the order of the Public Service Commission, such appeal to be governed by existing provisions of law relating to appeals from final orders of the commission; except, that such appeal shall be taken to the circuit court of the judicial circuit containing the greater portion by value of the property to be acquired, and such appeal shall be taken within 10 days from the filing of the order of the commission. The order of the commission shall specify the judicial circuit in which the greater portion of the property by value is located, and such specification shall be conclusive for fixing the venue of an appeal. On any such appeal, if the court shall determine that any condition imposed by the order of the commission is unreasonable or that the commission has erred in determining the just compensation to be paid, the court shall proceed to enter the judgment the commission should have entered. Any action brought under the provisions of this division shall have a preferred status before the commission and in the courts as to trial and disposition thereof.
*(Acts 1947, No. 154, p. 48, §10.)*
##### **§ 11-50-270** Completion of Sale Pursuant to Final Determination of Commission or Court; Effect of Failure of Seller to Tender Deed, Etc., or of Board to Accept Deed, Pay Purchase Price, Etc {#sec-11-50-270 omnilex-key=us-al-statutes--title-11--11-50-270}
The owner shall have 30 days after a final determination by the Public Service Commission or the courts to notify the waterworks board of its acceptance of such determination and shall have a further period of 30 days to tender a good and sufficient deed of conveyance to the waterworks board of the property required by the order of the commission or the court to be purchased by placing such deed in escrow with the commission or the court, as the case may be, and to comply with all other terms and conditions of the order or judgment. The waterworks board shall have 60 days from the date of the deposit of the deed in escrow to accept or reject such deed and, if it accepts, the waterworks board shall have a further period of 60 days to pay to the owner the price determined as provided in this division and to comply with all other terms and conditions of the order or judgment. For good cause shown the commission or the court may extend any period of time fixed in this section, such extension or extensions not to exceed a total of 60 days.
If the owner fails to notify the waterworks board of his acceptance and make tender of a deed as provided in this section within the time so fixed or extended or to comply with all other terms and conditions of the order or judgment, the waterworks board may proceed as provided by law to construct or otherwise acquire a plant or system within the territory where the property of such owner or any part thereof is located. If the waterworks board shall reject the tender provided for in this section or shall fail to pay the purchase price of the property determined as provided in this division or to comply with all other terms and conditions of the order or judgment, the waterworks board shall not engage in the business of operating a plant or system for the manufacture or distribution of gas in the territory where the property involved is located until it shall again be authorized as provided by this division and the general law relating thereto to engage in such business, and such waterworks board shall not again institute proceedings under this division sooner than two years from the date of such rejection or the expiration of the time for the payment of such purchase price, as the case may be.
*(Acts 1947, No. 154, p. 48, §11.)*
##### **§ 11-50-271** Consolidation of Gas and Waterworks Plants and Systems {#sec-11-50-271 omnilex-key=us-al-statutes--title-11--11-50-271}
Any such waterworks board may, if it so elects, combine any waterworks plant and system owned by it with any gas plant and system owned by it and provide for the operation, maintenance, and repair thereof as one combined and consolidated plant and system, the keeping of books and records for one combined plant and system, and the borrowing of money for any purpose authorized by law and the issuance of revenue bonds payable from the revenues of both the waterworks and the gas plants and systems, or such waterworks board may keep and operate such waterworks plant and system separate from its gas plant and system.
*(Acts 1947, No. 154, p. 48, §12.)*
##### **§ 11-50-272** Change of Name of Board Upon Acquisition of Gas Plant or System {#sec-11-50-272 omnilex-key=us-al-statutes--title-11--11-50-272}
In the event any such waterworks board shall hereafter acquire any gas plant or system pursuant to the provisions of this division, the name of such waterworks board may thereupon or thereafter be changed to “The Waterworks and Gas Board of the _____ of _____” (the name of the applicable municipality together with its designation as a city or town to be filled in the blank spaces). Such change in name may be effected upon the adoption of a resolution by the board of directors of such board declaring it advisable that the name be so changed and the certificate of incorporation be amended to that effect and the filing of a copy of such resolution, certified to by the secretary of the said board, with the judge of probate of the county in which the certificate of incorporation of the said board was filed for record.
*(Acts 1947, No. 154, p. 48, §13.)*
##### **§ 11-50-273** Construction of Division; Exemption from Jurisdiction and Regulation of State Public Service Commission {#sec-11-50-273 omnilex-key=us-al-statutes--title-11--11-50-273}
(a) Except as otherwise provided in this division, neither this division nor anything contained in this division shall be construed as a restriction or limitation upon any power, right, or remedy which any waterworks board now in existence or hereafter formed may have in the absence thereof, but shall be construed as cumulative and independent of any such power, right, or remedy. No proceedings, notice, or approval shall be required for the acquisition of any property or the making of any loans or issuance or instruments in evidence thereof or as security therefor, except as prescribed in this division, any other law to the contrary notwithstanding.
(b) Any waterworks board organized under the provisions of this division shall be exempt from all jurisdiction of any regulation by the Alabama Public Service Commission.
*(Acts 1947, No. 154, p. 48, §5.)*
#### **Division 3** Management and Operation of Sanitary Sewer Systems as Agents of Municipalities
##### **§ 11-50-290** Contracts Between Municipalities and Waterworks Board for Operation and Management of Sanitary Sewer Systems {#sec-11-50-290 omnilex-key=us-al-statutes--title-11--11-50-290}
(a) The city or town council, city commission, or other governing body of any incorporated municipality in the State of Alabama in which a waterworks board organized pursuant to Sections 11-50-230 through 11-50-237, 11-50-240 and 11-50-241 may be operating is hereby authorized, in behalf of such municipality, to enter into contracts with such board, and such board is authorized to enter into contracts with such municipality, whereunder such board shall act as agent of such municipality for the operation and management of any one or more sanitary sewer systems located in such municipality.
(b) Such contracts may contain such provisions and terms as may be mutually agreed on by the parties thereto respecting the operation and management of the sanitary sewer systems covered thereby, including provisions respecting the furnishing by such board of water for such sanitary sewer systems, provisions respecting the collection and remittance by such board of service charges collected by it for services rendered by or from any such sanitary sewer system after deduction of the charges of such board in connection therewith, and also including provisions for the discontinuance of the furnishing of water by such board to any of its water customers if such customer fails to pay, within a reasonable time as shall be designated by such board, any service charge established by ordinance of such municipality for service rendered to such customer by or from such sanitary sewer system. As an aid to the efficient operation by such board of the sanitary sewer systems covered by any such contract, such board is authorized to establish regulations providing for such discontinuance of water service and to put such regulations into effect.
*(Acts 1943, No. 570, p. 574, §1.)*
##### **§ 11-50-291** Rights and Powers of Municipalities and State Board of Health as to Sanitary Sewers Not Impaired by Division {#sec-11-50-291 omnilex-key=us-al-statutes--title-11--11-50-291}
Nothing contained in this division shall be construed to deprive any such municipality of its right to fix the charges for sanitary sewer service rendered by any such sanitary sewerage system or its title thereto or its police power thereover. Nothing contained in this division shall be construed to impair any power of the State Board of Health granted by law with respect to any such sanitary sewer system.
*(Acts 1943, No. 570, p. 574, §2.)*
#### **Subpart 4** Water Works Board Serving Counties Other Than Where Organized
##### **§ 11-50-300** Construction and Application {#sec-11-50-300 omnilex-key=us-al-statutes--title-11--11-50-300}
(a) Notwithstanding any other provisions of law, this division shall apply to any municipal water works board authorized to be incorporated by a municipality which, on January 1, 2015, either served water customers or has assets in four or more counties other than the county where the authorizing municipality is principally located, or after January 1, 2015, either serves water customers or has assets in four or more counties other than the county where the authorizing municipality is principally located, and the organization and operation of the board, shall be subject to this division.
(b) The powers and rights provided to a regional board pursuant to this division are cumulative and independent of any powers and rights pursuant to the enabling statute. Except as expressly set forth in this division, this division shall not be construed as a restriction or limitation upon any power, right, or remedy that a board may have pursuant to the enabling statute.
(c) To the extent this division conflicts with any other provision in the enabling statute, this division shall control.
(d) This division does not apply to a municipal utilities board that operates a water works system and an electric distribution system, nor to an entity that serves only wholesale water customers.
*(Act 2015-164, §1; Act 2025-297, §2.)*
##### **§ 11-50-300.01** Defintions {#sec-11-50-300.01 omnilex-key=us-al-statutes--title-11--11-50-300.01}
For the purposes of this division, the following terms have the following meanings:
(1) AUTHORIZING MUNICIPALITY. A municipality that authorized the organization of a board that is converted to a regional board pursuant to this division.
(2) BOARD. A board organized pursuant to the enabling statute.
(3) CONVERSION DATE. The date upon which a board is converted to a regional board pursuant to this division.
(4) ENABLING STATUTE. Divisions 1 through 3 of Article 8 of Chapter 50 of Title 11.
(5) ENGINEERING BACKGROUND. Capability as evidenced by an engineering degree from an accredited school of engineering and not less than five years experience in an engineering discipline.
(6) ETHICS ACT. Chapter 25 of Title 36.
(7) FINANCIAL BACKGROUND. Capability as evidenced by a successful career in banking or other field in which the candidate under consideration has demonstrated sound financial management skills in connection with long-term debt financing.
(8) GENERAL BUSINESS BACKGROUND. Well experienced in business affairs, whether related to private, public, or nonprofit entities, of the complexity of the operation of a water or sewer system.
(9) PRINCIPALLY LOCATED. With respect to the location of any authorizing municipality, the county where all or the largest portion of the territory of the authorizing municipality is located.
(10) REGIONAL BOARD. A board that meets the requirements of Section 11-50-300(a).
(11) SPONSORING MAYOR. The mayor of the authorizing municipality of a board that has been converted to a regional board pursuant to this division.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.02** Conversion of Certain Municipal Boards to Regional Boards {#sec-11-50-300.02 omnilex-key=us-al-statutes--title-11--11-50-300.02}
(a) On May 7, 2025, a board that meets the requirements of Section 11-50-300(a) as of April 17, 2025, shall be converted to a regional board.
(b) A board that meets the requirements of Section 11-50-300(a) after April 17, 2025, shall be converted to a regional board 30 days after the board meets the requirements, but not before May 7, 2025.
(c) If the certificate of incorporation or bylaws of a regional board conflicts with this division, this division shall control.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.03** Board of Directors {#sec-11-50-300.03 omnilex-key=us-al-statutes--title-11--11-50-300.03}
(a) The term of the existing directors of the board of directors shall terminate on the conversion date, notwithstanding the term or terms for which the existing directors were appointed or elected. The term of office for directors appointed pursuant to this division shall begin on the conversion date, or if any such appointment is made after the conversion date, on the date of filing for the appointment order with the judge of probate as provided in subsection (b).
(b) Appointment of a director shall be evidenced by an order acknowledged before an officer authorized by the laws of this state to take acknowledgment of deeds and shall be filed in the office of the judge of probate where the board’s original certificate of incorporation was filed and in the Office of the Secretary of State.
(c)(1) The board of directors of a regional board shall be reorganized and comprised as follows:
a. One director, who shall have a financial background, in addition to a general business background, shall be appointed by the sponsoring mayor.
b. One director, who shall have a financial background, in addition to a general business background, shall be appointed by the Lieutenant Governor.
c. One director, who shall have an engineering background, in addition to a general business background, shall be appointed by the president of the governing body of the county in which the authorizing municipality is principally located.
d. One director, who shall have a general business background, shall be appointed by the governing body of each county in which the regional board owns a major reservoir located principally within the county.
e. One director, who shall have a general business background, shall be appointed by the governing body of the county, other than the county where the authorizing municipality is principally located, where the largest number of accounts serving water customers are located outside the county in which the authorizing municipality is located.
f. One director, who shall have a general business background and who shall be a resident of the county in which the authorizing municipality is principally located, shall be appointed by the Governor.
g. One director, who shall be a resident of the county in which the authorizing municipality is principally located, shall be appointed by the governing body of the authorizing municipality.
(2) All directors shall be residents of a county in which the regional board serves customers.
(3) Elected public officials may be appointed as directors.
(4) An appointing authority, if an individual, may appoint himself or herself, or, if a group of individuals, may appoint a member of the group.
(5) An individual who has had a business relationship with the regional board in the two-year period prior to appointment, or who was employed by a firm that has had a business relationship with the regional board in the two-year period prior to appointment, shall not be appointed as a director.
(d) Each appointing authority may exercise discretion in determining whether an individual appointed as a director meets the qualifications provided in this section. Any individual appointed as a director shall be presumed qualified unless and until a court of competent jurisdiction makes a final determination, from which no further appeal is available, that such individual is not qualified as a director. The official acts of any individual appointed as a director shall be valid and binding as official acts of a director for all purposes, whether or not that individual is subsequently determined by a court of competent jurisdiction to be qualified or not.
(e) Each director shall serve for a term of five years, except the initial directors shall serve terms as follows:
(1) The initial director appointed by the sponsoring mayor shall serve a term of one year.
(2) The initial director appointed by the Lieutenant Governor shall serve a term of two years.
(3) The initial director appointed by the president of the governing body of the county in which the authorizing municipality is principally located and the initial director appointed by the Governor shall serve a term of three years.
(4) The initial director appointed by the governing body of each county in which the regional board owns a major reservoir located principally within the county and the initial director appointed by the governing body of the authorizing municipality shall serve a term of four years.
(5) The initial director appointed by the governing body of the county, other than the county where the authorizing municipality is principally located, where the largest number of accounts serving water customers are located outside the county in which the authorizing municipality is located shall serve a term of five years.
(f) The initial appointments to the regional board shall be made by the appointing authorities by May 27, 2025. Subsequent appointments, if made to fill a vacancy caused other than by the expiration of a term of office, shall be filled within 30 days of the appointing authority receiving notice of the vacancy. Subsequent appointments, if made to fill a vacancy caused by the expiration of a term of office, shall be filled within seven days after the expiration of the term of office. If an appointing authority fails to make an appointment within the time periods provided by this subsection, the Secretary of State shall appoint one of the nominees submitted pursuant to subsection (m).
(g) An individual appointed to fill a vacancy on the board shall serve the remainder of the term of the vacant seat. All directors shall continue to serve until a successor is appointed and qualified.
(h) A director may not serve for more than two full terms. In addition to the two full terms, a director may serve one additional partial term in the event a director is first appointed to a term that terminates less than five years after the date of his or her appointment.
(i) Any director may be removed for good cause by the appointing authority who appointed the director if the appointing authority conducts a hearing that gives the director an opportunity to address the cause or causes for removal.
(j) Each director shall be entitled to receive compensation of two thousand dollars ($2,000) per month, adjusted annually for increases in the consumer price index, as well as reimbursement for necessary expenses actually incurred by him or her in connection with the performance of his or her duties.
(k) A majority of directors then serving shall constitute a quorum for the transaction of business of the board of directors, and any meeting of the board of directors may be adjourned by a majority of the members present. No vacancy in the membership of the board of directors shall impair the right of a quorum to exercise all powers and perform all duties of the board of directors.
(l) The board of directors shall adopt and maintain bylaws, not inconsistent with this division, for the regulation and conduct of its affairs and the operation of the regional board. The bylaws of the board of directors may provide for such committees as the board of directors deems necessary or desirable to make recommendations to the full board of directors.
(m) Members of the Alabama Legislature whose districts encompass areas served by a regional board, and organizations incorporated in this state that have existed for more than five years and that promote economic development in any county served by a regional board, may nominate qualified individuals to serve on a regional board in positions that are vacant or expected to be vacant. Nominations shall be made by submitting in writing the name and qualifications of the individual being nominated to the appointing authority for the position and to the Secretary of State.
(n) The Attorney General shall review the qualifications of all appointees to a regional board and upon finding that any appointee is not qualified, shall file a complaint in the Circuit Court of Montgomery County, which shall have exclusive jurisdiction of the matter, seeking to declare the appointee not qualified and the regional board position vacant. Vacancies on a regional board resulting from a ruling by the court favorable to the Attorney General shall be filled by the designated appointing authority. Upon request, the Attorney General may render an opinion on the qualifications of a proposed appointee.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.04** Certificate of Incorporation {#sec-11-50-300.04 omnilex-key=us-al-statutes--title-11--11-50-300.04}
(a) A regional board shall amend its certificate of incorporation after the conversion date to do all of the following:
(1) Acknowledge that the regional board has met the requirements of Section 11-50-300(a).
(2) Change its name to reflect the regional nature of the board. The new name shall include the name of the authorizing municipality.
(3) Make any other necessary amendment that is not inconsistent with this division or the enabling statute.
(b) An amendment of the regional board’s certificate of incorporation shall be made in the following manner:
(1) The board of directors of the regional board shall first adopt a resolution setting forth in full the proposed amendment to the certificate of incorporation.
(2) The amendment shall recite the adoption of the resolution by the board of directors.
(3) After the amendment is executed by the chair or vice chair of the regional board and acknowledged before an officer authorized by the laws of this state to take acknowledgment of deeds, the amendment shall be filed in the office of the judge of probate where the board’s original certificate of incorporation was filed. The amendment shall be effective upon filing.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.05** Ethics and Training Requirements {#sec-11-50-300.05 omnilex-key=us-al-statutes--title-11--11-50-300.05}
(a) Directors and employees of a regional board shall be subject to the Ethics Act.
(b) Each year all directors shall participate in 10 hours of training on the duties and best practices of directors of organizations engaged in the operation of water or sewer systems, the obligations of directors under the Ethics Act, and the reporting requirements under this division.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.06** Duties of Board; Enforcement {#sec-11-50-300.06 omnilex-key=us-al-statutes--title-11--11-50-300.06}
(a) A regional board shall assure that the rates for water and other services are reasonable and that industry best practices are followed. A regional board shall assure that the regional board operates its system or systems efficiently, in compliance with applicable laws and regulations, including this division, and exclusively for the benefit of the customers of the regional board.
(b) In assessing compliance with industry best practices, a regional board shall reference the standards published by the American Water Works Association or any successor thereto and standards followed by highly rated water systems.
(c)(1) A regional board may not make payments to any municipality, county, or other entity except for reasonable consideration in payment for goods or services required in the operation or management of the systems operated by the regional board.
(2) The Attorney General shall enforce this subsection by filing a complaint seeking to prevent or to recoup amounts paid by the regional board in violation of this subsection and to obtain other remedies as may be appropriate under the circumstances, in the Circuit Court of Montgomery County, which shall have exclusive jurisdiction of the matter.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.07** Financial Statements and Reports {#sec-11-50-300.07 omnilex-key=us-al-statutes--title-11--11-50-300.07}
(a) A regional board shall follow best practices in preparing or causing to be prepared financial statements and other reports, including all of the following:
(1) An annual budget in monthly form.
(2) Monthly financial statements with comparison to the budget.
(3) Annual financial statements with comparison to the budget.
(4) Annual financial statements audited by an independent auditor.
(5) A five-year operating plan with annual revisions and appropriate comparisons of actual performance to the plan.
(6) A 10-year capital plan, including a plan to fund the capital expenditures called for in the capital plan, and a 10-year estimate of rates per year required to fund operating expenses, capital expenditures, and debt service.
(7) Monthly and annual statistical reports to include the number of employees, number of customer connections by major geographical location, number of miles of pipe replaced as a percent of total miles of pipe in a system, volume of treated and untreated water introduced into transmission mains, volume of treated and untreated water billed to customers, and the number of leaks repaired.
(8) Monthly and annual schedules of professionals employed other than through a public bid process pursuant to exceptions to competitive bid laws, brief descriptions of their scopes of work, and amounts paid monthly, year-to-date, and for the preceding 12 months.
(9) Prior to the adoption of each annual budget of a regional board, a report on the current staffing of the regional board to include a job description of each position, the number of individuals filling each position, the average annual compensation paid to the individuals in each position, and proposed changes in staffing and compensation anticipated in the annual budget to be adopted, together with comparisons as may be available between the staffing of the regional board and the staffing of other comparable water systems.
(b) All financial statements and other reports shall be accompanied by appropriate operating statistics, actual and projected.
(c) All statistical and financial reports shall include historical statistics and financial information to the extent available and necessary to place recent information in historical context and a full description and disclosure of all assumptions made in the preparation of the reports.
(d) The reports required by this section shall be made available by paper copy and email to the state legislators representing the counties in which the regional board operates and the Department of Examiners of Public Accounts. The reports shall also be made available to the public on a website maintained by the regional board.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.08** Consulting Engineer {#sec-11-50-300.08 omnilex-key=us-al-statutes--title-11--11-50-300.08}
(a) A regional board shall retain a consulting engineer with a national reputation for providing high quality engineering services to water systems. The consulting engineer shall provide the services specified in a professional services agreement which shall include all of the following services:
(1) From time to time but not less frequently than annually, an assessment of and comments on the regional board’s compliance with Section 11-50-300.07, including separate assessments and comments on each of the financial statements and reports required by Section 11-50-300.07.
(2) Prior to the approval by the regional board of a capital project costing two million dollars ($2,000,000) or more, an assessment and report on the necessity, concept, design, and expected operating and capital cost of the project.
(3) Prior to the approval by the regional board of any financing, a report and opinion in customary form on the ability of the board to pay the interest on and principal of the loan or securities comprising the financing when due.
(4) Annually, and prior to any increase in rates or other service charges, an analysis and report on the reasonableness of existing and proposed rates and service charges, taking into consideration the factors listed in Section 11-50-300.06, any factors widely adopted in the regulation of utilities in the United States, and any other factors that the consulting engineer deems relevant.
(b) A consulting engineer shall be selected by a regional board pursuant to a nationwide search and a request for proposals addressed to not less than five of the largest providers of engineering services to water systems in the United States. The request for proposals shall be posted on the regional board’s website and copies of responses shall be available upon request. A regional board shall select a consulting engineer from those submitting proposals based on the recommendations of clients, relevant experience, credentials of the engineers to be assigned to the project, terms of a proposed engagement agreement, and cost.
(c) Once selected, a consulting engineer shall serve five years and shall be eligible to be re-selected for one additional five year term notwithstanding the selection procedures provided by this section.
(d) A consulting engineer shall be disqualified from providing project engineering services on projects undertaken by a regional board but shall review and comment on plans and specifications prepared by other engineers for such projects. A consulting engineer shall evaluate, on behalf of the regional board, the qualifications of engineers under consideration to provide project engineering services to a regional board.
(e) A consulting engineer may be discharged by a regional board for a material failure to perform as determined by the board after adequate notice and a hearing.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.09** Employment Restrictions on Former Directors {#sec-11-50-300.09 omnilex-key=us-al-statutes--title-11--11-50-300.09}
For a period of 24 months after an individual ceases to be a director of a regional board, that individual may not be employed by the regional board or by any firm that performs work for the regional board.
*(Act 2025-297, §3.)*
##### **§ 11-50-300.10** Chief Executive Officer {#sec-11-50-300.10 omnilex-key=us-al-statutes--title-11--11-50-300.10}
(a) A regional board shall employ a chief executive officer with full authority to manage the operations of the regional board, subject to policy directives and other governance decisions adopted by the board of directors. Employees of a regional board shall report directly or through subordinates who report to the chief executive officer and may not be ordered or instructed by a director of the board. Employment contracts, construction contracts, consulting contracts, engineering contracts, and other contracts between the regional board and other persons shall be recommended by the chief executive officer, except for the employment contract of the chief executive officer, which shall be recommended by the board of directors. The chief executive officer shall recommend to the board of directors individuals to serve as chief financial officer and other executive level employees.
(b) The employment contract of the chief executive officer shall provide for a fixed term of office that may be extended with or without modification of other terms by agreement of the board of directors and the chief executive officer. The board of directors may terminate the employment of the chief executive officer for a material failure to perform his or her duties after providing reasonable notice of a failure and the opportunity for a hearing.
*(Act 2025-297, §3.)*
##### **§ 11-50-301** Reorganization and Composition {#sec-11-50-301 omnilex-key=us-al-statutes--title-11--11-50-301}
**THIS SECTION WAS REPEALED BY ACT 2025-297, EFFECTIVE MAY 7, 2025.**
*(Act 2015-164, §2; Act 2016-276, §1; Act 2025-297, §4.)*
##### **§ 11-50-302** Terms of Board Members {#sec-11-50-302 omnilex-key=us-al-statutes--title-11--11-50-302}
**THIS SECTION WAS REPEALED BY ACT 2025-297, EFFECTIVE MAY 7, 2025.**
*(Act 2015-164, §3; Act 2025-298, §4.)*
##### **§ 11-50-303** Compensation; Ethics Requirements; Rate Increases; Open Meetings {#sec-11-50-303 omnilex-key=us-al-statutes--title-11--11-50-303}
**THIS SECTION WAS REPEALED BY ACT 2025-297, EFFECTIVE MAY 7, 2025.**
*(Act 2015-164, §4; Act 2025-298, §4.)*
##### **§ 11-50-304** Exceptions {#sec-11-50-304 omnilex-key=us-al-statutes--title-11--11-50-304}
**THIS SECTION WAS REPEALED BY ACT 2025-297, EFFECTIVE MAY 7, 2025.**
*(Act 2015-164, §5; Act 2025-297, §4.)*
#### **Article 9** Boards for Operation of Water, Sewer, Gas and Electric Systems
##### **§ 11-50-310** Definitions {#sec-11-50-310 omnilex-key=us-al-statutes--title-11--11-50-310}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) WATER SYSTEM. A plant and system for the gathering, collecting, or impounding of water and the distribution thereof for domestic or industrial use or both or a plant or system for the purchase, transportation, and/or distribution of water for domestic or industrial use or both, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(2) SEWER SYSTEM. A sanitary sewer system, including mains, laterals, sewage disposal plants, or sewage treatment plants and all appurtenances to such system and all property used or useful in connection therewith, including franchises.
(3) GAS SYSTEM. A plant and system for the manufacture and distribution of gas or a system for the purchase, transportation, and/or distribution of manufactured or natural gas, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(4) ELECTRIC SYSTEM. A plant and system for the generation, manufacture, and distribution of electricity or a system for the purchase, transportation, and/or distribution of electricity, together with all appurtenances thereto and all property used or useful in connection therewith, including franchises.
(5) SYSTEM. A water system or a sewer system, or a gas system or an electric system.
(6) SYSTEMS. More than one system.
*(Acts 1951, No. 175, p. 416, §1.)*
##### **§ 11-50-311** Application for Authority to Incorporate; Adoption of Resolution by Municipal Governing Body Authorizing Incorporation {#sec-11-50-311 omnilex-key=us-al-statutes--title-11--11-50-311}
Whenever any number of natural persons, not less than three, shall file with the governing body of any municipality of this state an application in writing for authority to incorporate a public corporation for the purpose of operating a water system, a sewer system, a gas system, and an electric system or any one or more of such systems, and if it shall be made to appear to such governing body that each of said persons is a duly qualified elector of and owner of property in said municipality and if the governing body of said municipality shall adopt a resolution, which shall be duly entered upon the minutes of such governing body, wherein it shall be declared that it is wise, expedient, and necessary that such a corporation be formed and that the persons filing said application shall be authorized to proceed to form such corporation, then said persons shall proceed to organize such a corporation by executing and filing for record in the office of the judge of probate of the county or one or more of the counties in which such municipality is located a certificate of incorporation as provided in Section 11-50-312. No corporation shall be formed hereunder unless the application provided for in this section shall be made and unless the resolution provided for in this section shall be adopted.
*(Acts 1951, No. 175, p. 416, §1.)*
##### **§ 11-50-312** Acknowledgment, Filing and Recordation of Certificate of Incorporation; Amendment of Certificate of Corporation Formed Under This Article or Under Division 1 of Article 8 of This Chapter {#sec-11-50-312 omnilex-key=us-al-statutes--title-11--11-50-312}
(a) The certificate of incorporation of any corporation organized under this article shall state:
The certificate of incorporation may also contain any provisions not contrary to law which the incorporators may choose to insert for the regulation and conduct of the affairs of the corporation. The certificate of incorporation shall be acknowledged before an officer authorized by the laws of this state to take acknowledgment of deeds. When so acknowledged, the certificate shall be filed in the office of the judge of probate of the county or one of the counties in which such municipality is located, and the said judge of probate shall forthwith file such certificate and record the same, and thereupon the applicants shall constitute a corporation under the name stated in the certificate of incorporation.
(b) Any corporation at any time existing under this article or under Sections 11-50-230 through 11-50-241, as amended, may at any time amend its certificate of incorporation under the provisions of this article so as to include in the said certificate of incorporation any provision that may lawfully be included in an original certificate of incorporation filed under this article. Any such amendment may be effected in the following manner: The board of directors of the corporation shall adopt a resolution setting forth the proposed amendment, which shall include any proposed change in the name of such corporation. If the governing body of the municipality which authorized the incorporation of the corporation shall by resolution of its governing body consent to such proposed amendment, the chairman of the board of directors, or other chief executive officer of the corporation, and the secretary of the corporation shall then file in the office of the judge of probate of the county in which the certificate of incorporation of the corporation is filed, a certificate in the name of and in behalf of the corporation, under its seal, reciting the adoption of the said respective resolutions by the board of directors and by the said governing body and setting forth the said proposed amendment. The proposed amendment shall become effective upon the filing of such certificate in the said office.
*(Acts 1951, No. 175, p. 416, §2; Acts 1967, No. 754, p. 1607.)*
##### **§ 11-50-313** Board of Directors {#sec-11-50-313 omnilex-key=us-al-statutes--title-11--11-50-313}
(a)(1) Each corporation that is formed or that has amended its certificate of incorporation pursuant to this article shall have a board of directors that shall be the governing body of the corporation. Except as otherwise provided by law, the board shall consist of three members.
(2) The governing body of any municipality which has authorized the creation of a corporation as provided in this article may increase the membership of the board of directors from three to five members. If the governing body elects to increase the membership of the board of directors from three to five members, one member added to the board shall be appointed for an initial term of four years, and the remaining newly added member shall be appointed for an initial term of six years. Thereafter the term of each additional director shall be six years.
(3) In any Class 4 municipality that has adopted a mayor-council form of government pursuant to Chapter 43B, any corporation formed pursuant to this chapter may have a governing body that consists of seven members.
(4) Any corporation located in any Class 5 municipality that is governed by a local law enacted in the 1995 Regular Session may have a governing body that consists of seven members.
(5) The governing body of any municipality that has a population of less than 5,000 according to the most recent federal decennial census and that has authorized the creation of a corporation as provided in this article may increase the membership of the board of directors from five to seven members. In the event the governing body elects to increase the membership of the board of directors from five to seven members, one member added to the board shall be appointed for an initial term of four years, and the remaining newly added member shall be appointed for an initial term of six years. Thereafter the term of each additional director shall be six years.
(b)(1) The directors of a corporation shall be elected by the governing body of the municipality in regard to which the corporation was formed, and they shall be elected to hold office for staggered terms. The first term of office shall be two years for one director, four years for another director, and six years for a third director, as shall be designated at the time of their election. Thereafter the term of office of each director shall be six years.
(2) In any municipality: (i) with a population of less than 5,000 according to the most recent federal decennial census; (ii) that has authorized the creation of a corporation as provided in this article; and (iii) for which the term of the mayor and members of the municipal governing body were extended by an act of the Legislature, the term of any board member which will expire before the mayor’s and members’ of the municipal governing body extended terms expire shall be extended by one year.
(c) A fee may not be paid to a director for services rendered with respect to a sanitary sewer system.
(d)(1) Except as otherwise provided by this subsection, in any instance where the system or systems owned and operated by a corporation are any one or more of a water system, a gas system, and an electric system, the chair of the board of directors, at the discretion of the governing body of the municipality with respect to which the corporation was primarily organized, may be paid a director’s fee in an amount to be set and established by the governing body not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year, for one system and ten dollars ($10) per meeting for each additional system. Each director other than the chair may be paid a director’s fee in an amount to be set and established by the governing body in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year for the system.
(2) In all municipalities with a population of less than 5,000 inhabitants according to the most recent federal decennial census, the maximum total amount of director’s fees which may be paid to the chair of the board of directors may not exceed one thousand two hundred dollars ($1,200) per meeting attended. The maximum total amount of director’s fees which may be paid to any other member of the board of directors may not exceed six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year.
(3) In all municipalities with a population of not less than 6,500 nor more than 8,500 according to the most recent federal decennial census, the directors, including the chair, may each be paid a director’s fee. The chair of the board shall be compensated in an amount not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year. Each director other than the chair shall be compensated in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year.
(4) In all municipalities with a population of not less than 12,500 nor more than 13,500 according to the most recent federal decennial census, the chair of the board of directors, at the discretion of the board, may be paid a director’s fee in an amount not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year. Each director other than the chair may be paid a director’s fee in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year.
(5) In all municipalities with a population of not less than 23,000 nor more than 27,000 according to the most recent federal decennial census, the chair of the board of directors, at the discretion of the board, may be paid a director’s fee in an amount not exceeding six hundred dollars ($600) per meeting attended, not to exceed seven thousand two hundred dollars ($7,200) per year. Each director other than the chair may be paid a director’s fee in an amount not exceeding four hundred dollars ($400) per meeting attended, not to exceed four thousand eight hundred dollars ($4,800) per year.
(6) In all municipalities located in Jefferson County, Alabama, the chair of the board of directors, at the discretion of the board, may be paid a director’s fee in an amount not exceeding four hundred fifty dollars ($450) each month for one system and fifty dollars ($50) per month for each additional system. Each director other than the chair may be paid a director’s fee in an amount not exceeding four hundred dollars ($400) each month for one system and forty dollars ($40) per month for each additional system.
(7) In all municipalities located in Franklin County, including all Franklin County water or sewer board or utility system or boards, or both, located therein, the director’s fee shall not exceed six hundred dollars ($600) each month for each system. The board in the municipalities of Franklin County may also establish a chair’s fee in a higher amount by a vote of the body not to exceed seven hundred fifty dollars ($750) per meeting.
(8) In a Class 7 municipality, the chair of the board of directors of a corporation formed under this chapter which owns and operates a water system, an electric system, and a sewer system, at the discretion of the governing body of the municipality with respect to which the corporation was primarily organized, may be paid a director’s fee in an amount established by the governing body. Each director other than the chair may be paid a director’s fee in an amount established by the governing body.
(e) In addition to any other compensation authorized, all members of the board of directors of any corporation organized pursuant to this article shall be reimbursed for actual expenses incurred in the performance of their duties pursuant to this article.
(f)(1) Any officer of a municipality with respect to which a corporation was formed may be appointed and may serve as a member of the board of directors of the corporation for the term for which he or she is appointed or during his or her tenure as a municipal officer, whichever expires first, and may receive a fee for his or her services, provided the appointment is first approved by the board of directors.
(2)a. Except as provided in paragraph b., a board may not consist of more than two officers of the municipality with respect to which the corporation was formed.
b. If the membership of a board has increased pursuant to subsection (a), the board may not consist of more than three officers of the municipality with respect to which the corporation was formed.
(3) Notwithstanding this subsection, the certificate of incorporation of a corporation formed or an amendment to the certificate pursuant to this article may restrict or prohibit service on the board of directors by officers of the municipality with respect to which the corporation was formed.
(g) Nothing in Act 2007-458 and nothing in subdivision (a)(4) shall apply to the City of Montgomery or the City of Prichard Water and Sewer Board.
(h) The amendatory provisions of this section as provided in Act 2010-580 and the provisions of Act 2007-458 shall not affect the current board director and member fees in the City of Birmingham.
*(Acts 1951, No. 175, p. 416, §3; Acts 1956, 2nd Ex. Sess., No. 116, p. 444; Acts 1957, No. 622, p. 892; Acts 1961, No. 701, p. 993; Acts 1969, No. 255, p. 587; Acts 1971, No. 716, p. 1430; Acts 1979, No. 79-483, p. 891; Acts 1979, No. 79-768, p. 1370; Acts 1981, No. 81-603, p. 1015; Acts 1985, 2nd Ex. Sess., No. 85-999, p. 376, §1; Acts 1986, No. 86-481, p. 915, §1; Acts 1994, No. 94-133, p. 172, §2; Acts 1995, No. 95-569, p. 1191, §1; Act 2001-1094, 4th Sp. Sess., p. 1137, §1; Act 2007-458, p. 946, §§1-3; Act 2010-580, p. 1291, §1; Act 2021-224, §1; Act 2026-572, §1.)*
##### **§ 11-50-314** Powers of Corporation Generally; Provisions in Mortgages, Deeds of Trust, or Pledge Agreements Executed by Corporation as to Rights of Parties Thereto, Etc {#sec-11-50-314 omnilex-key=us-al-statutes--title-11--11-50-314}
(a) Each corporation formed or the certificate of incorporation of which is amended under this article shall have the following powers together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be in perpetuity) specified in its certificate of incorporation or until dissolved as provided in this article;
(2) To sue and be sued and to defend civil actions against it;
(3) To make use of a corporate seal and to alter the same at pleasure;
(4) To acquire, purchase, construct, operate, maintain, enlarge, extend, and improve any system or systems, the operation of which is provided for in the certificate of incorporation of such corporation or in any amendment thereto (whether or not such system or systems were in existence and whether or not such system or systems were privately owned prior to acquisition by such corporation and whether such system or systems are located within or without or partly within and partly without the limits of the municipality which authorized the organization of such corporation or within the limits of another municipality) and to receive, acquire, take, and hold, whether by purchase, gift, lease, devise, or otherwise, real, personal, and mixed property of any nature whatsoever that its board of directors may deem a necessary or convenient part of such system or systems;
(5) To borrow money for any corporate function, use, or purpose and to issue in evidence of the borrowing interest-bearing bonds payable solely from the revenues derived from the operation of any one or more of its systems (regardless of the system or systems for the benefit of or with respect to which such borrowing may be made);
(6) To pledge for payment of its bonds any revenues from which such bonds are made payable and to mortgage, pledge, or otherwise convey as security for such bonds the system or systems the revenues from which are so pledged;
(7) To transport and to sell at wholesale all or any part of its water, gas, or electric supply to any other corporation organized or the articles of incorporation of which are amended under the provisions of this article or under the provisions of Sections 11-50-230 through 11-50-241, or to any municipality for distribution to the inhabitants thereof and the surrounding territory;
(8) To transfer and to distribute and to sell to any one or more customers water, gas, and electricity and to furnish services from any system the operation of which is provided for in its certificate of incorporation or in any amendment thereto, and to establish and collect and alter charges for water, gas, electric, and sewer services and all services of any kind sold or furnished by it; provided, that charges for services from any sewer system shall be established in such manner that there shall be no charge with respect to any portion of such sewer system that may have been paid for wholly or in part by assessments against the property specially benefitted thereby, but any person whose property is served in part by a portion of a sewer system so paid for and in part by a portion of a sewer system not so paid for may be charged an appropriate rate for the service rendered such property by a sewer disposal plant, a sewage treatment plant, or any other portion of a sewer system which has not to any extent been paid for by such assessments;
(9) To adopt a schedule of rates:
a. Providing that the corporation may render combined statements or bills for services furnished from its systems and that it may decline to accept payment of charges for services from any of its systems without payment of charges for services from any one or more of its other systems, and
b. Providing for discontinuance of service from a system or systems to any customer who shall be delinquent in payment of charges for service from any system owned by such corporation;
(10) To lease, exchange, sell, convey, and otherwise dispose of its real, personal, or mixed property by any form of legal conveyance or transfer; provided, however, that the governing body of the municipality in which such system authorized under this article is incorporated shall consent to the lease, exchange, sale, conveyance, or other disposition and such consent shall be evidenced by a duly adopted ordinance of the said governing body, which ordinance shall be adopted within 30 days of such lease, exchange, sale, conveyance, or other disposition;
(11) To exercise all powers of eminent domain now or hereafter conferred on municipalities in this state;
(12) To appoint and employ such officers and agents, including attorneys, as its business may require; and
(13) To provide for such insurance as its board of directors may deem advisable.
(b) Any mortgage, deed of trust, or pledge agreement made by such corporation may contain such agreement as the board of directors may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage, deed of trust, or pledge agreement and respecting the rights or duties of the parties to such instrument or the parties for the benefit of whom such instrument is made; provided, that no such mortgage or deed of trust shall be subject to foreclosure.
*(Acts 1951, No. 175, p. 416, §4; Acts 1953, No. 176, p. 230; Acts 1969, No. 633, p. 1159.)*
##### **§ 11-50-315** Execution, Etc., of Contracts as Security for Repayment of Moneys Borrowed {#sec-11-50-315 omnilex-key=us-al-statutes--title-11--11-50-315}
To further secure the repayment of any money borrowed by it such corporation may enter into a contract or contracts binding itself for the proper application of the money borrowed, for the continued operation and maintenance of any system or systems owned by it or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from its system or systems, for the disposition and application of its gross revenues or any part thereof, and for any other act or series of acts not inconsistent with the provisions of this article for the protection of the loan and the assurance that the revenues from its system or systems will be sufficient to operate such system or systems, maintain the same in good repair and in good operating condition, pay the principal of and interest on any bonds payable from such revenues, and maintain such reserves as may be deemed appropriate for the protection of the loan and the efficient operation of such system or systems.
*(Acts 1951, No. 175, p. 416, §5.)*
##### **§ 11-50-316** Execution, Sale, Etc., of Bonds and Refunding Bonds of Corporation; Terms, Denominations, Etc., Thereof; Charge, Application, Etc., of Revenues from Systems for Payment of Bonds, Etc., Generally; Vesting of Title to Systems in Municipality and Dissolution of Corporation Upon Payment of Bonds in Full, Etc {#sec-11-50-316 omnilex-key=us-al-statutes--title-11--11-50-316}
(a) All bonds issued by any such corporation organized or the certificate of incorporation of which is amended under this article shall be signed by the chairman of the board of directors or other chief executive officer and attested by its secretary, and the seal of such corporation shall be affixed thereto; provided that, if authorized by the board of directors of such corporation, said bonds may be executed with an engraved, imprinted, stamped, or otherwise reproduced facsimile of any signature or seal in lieu of a manually made signature or manually made impressment of the seal; provided further, that at least one signature required or permitted to be placed thereon shall be manually subscribed. Any interest coupons applicable to the bonds of such corporation shall be signed by the chairman of the board of directors or other chief executive officer, but a facsimile of such signature may be impressed on any such interest coupon in lieu of his manually signing the same. Any such bonds may be executed and delivered by such corporation at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this article, and shall bear such rate or rates of interest payable and evidenced in such manner as may be provided by resolution of its board of directors. Any borrowing may be effected by the sale of such bonds at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board of directors of such corporation to be most advantageous. Any bonds issued by such corporation may thereafter at any time (whether before, at, or after the maturity thereof) and from time to time be refunded by the issuance of refunding bonds, which may be sold by such corporation at public or private sale at such price or prices as may be determined by its board of directors to be most advantageous or which may be exchanged for the bonds to be refunded. The corporation may pay all expenses, premiums, and commissions which its board of directors may deem necessary and advantageous in connection with any financing done by it. All bonds issued by such corporation shall be construed to be negotiable instruments although payable solely from a specified source. All debts created and bonds issued by any such corporation shall be solely and exclusively an obligation of the corporation and shall not create an obligation or debt of any municipality. No municipality shall pledge its faith and credit for the payment of any debt incurred or bonds issued by such corporation. When any such corporation shall have borrowed money and issued its bonds payable from the revenues of its system or systems, it shall charge, collect, and account for revenues from the operation of such system or systems sufficient to pay the principal of and the interest on said bonds as such principal and interest respectively mature, to pay the costs of operating and maintaining such system or systems, and to create and maintain any reserves or special funds which may be provided for in the proceedings authorizing the issuance of the bonds. Any such corporation shall apply all such revenues in the manner and for the purposes provided for in such proceedings.
(b) When the principal of and the interest on all bonds of such corporation payable from the revenues of any system owned by such corporation shall have been paid in full, then title to such system from the revenue of which the bonds are payable shall thereupon immediately vest in the municipality which authorized the incorporation of such corporation, and such system shall become the property of such municipality, except as otherwise provided in Section 11-50-320. When title to all property owned by any corporation organized or the certificate of incorporation of which is amended under this article shall have vested in the appropriate municipality which shall be entitled thereto under this section and Section 11-50-320, then such corporation shall thereupon stand dissolved; provided, that, if at any time any such corporation does not have any bonds outstanding (regardless of whether it has ever issued any bonds), its board of directors may adopt a resolution, which shall be duly entered on its minutes, declaring that such corporation shall be dissolved; and, upon the filing for record of a certified copy of such resolution in the office of the judge of probate of the county wherein the certificate of incorporation of such corporation was filed, such corporation shall stand dissolved, whereupon title to any property and assets then owned by such corporation shall, except as otherwise provided in Section 11-50-320, vest in the municipality which authorized the incorporation of such corporation. The formation of one or more corporations under the provisions of this article shall not prevent the subsequent formation hereunder of another corporation or corporations.
*(Acts 1951, No. 175, p. 416, §6; Acts 1959, No. 35, p. 440; Acts 1969, No. 801, p. 1443.)*
##### **§ 11-50-317** Pledge of Revenues from and Mortgaging of Systems for Payment of Bonds {#sec-11-50-317 omnilex-key=us-al-statutes--title-11--11-50-317}
Any bonds issued by a corporation organized under this article for any purpose for which it is authorized by law to borrow money and issue its bonds, without regard to the system for the benefit of or with respect to which such bonds may be issued, may be made payable out of the revenues from all systems owned by the corporation or out of the revenues from any one or more systems owned by the corporation, and any such corporation may pledge for the payment of any of its bonds the revenues from which such bonds are payable and may mortgage, pledge, or otherwise convey as security for such bonds the system or systems the revenues from which are so pledged.
*(Acts 1951, No. 175, p. 416, §9.)*
##### **§ 11-50-318** Disposition of Proceeds from Sale of Bonds {#sec-11-50-318 omnilex-key=us-al-statutes--title-11--11-50-318}
All moneys derived from the sale of any bonds issued by any corporation organized under this article or the articles of incorporation of which are amended under this article shall be used solely for the purpose or purposes for which the same are authorized, including any engineering, legal, and other expenses incidental thereto and, in the case of bonds issued in whole or in part for construction of a system or any part thereof, interest on such bonds or, if a part only of the bonds are issued for the purpose of such construction, on the part of such bonds issued for that purpose, prior to and during such construction and for not exceeding one year after completion of such construction and, in the case of bonds issued by such corporation for the purpose of refunding outstanding bonds of such corporation, any premium which it may be necessary to pay in order to redeem or retire the bonds to be refunded.
*(Acts 1951, No. 175, p. 416, §10.)*
##### **§ 11-50-319** Exemption from Usury and Interest Statutes {#sec-11-50-319 omnilex-key=us-al-statutes--title-11--11-50-319}
Each waterworks board now or hereafter organized under the provisions of this article is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8 of this Code.
*(Acts 1975, No. 1151, §1.)*
##### **§ 11-50-320** Acquisition, Operation, Etc., of Systems Located in Another Municipality; Execution of Contract for Conveyance of System in Other Municipality Thereto Upon Payment in Full of Indebtedness of Corporation as to Such Systems {#sec-11-50-320 omnilex-key=us-al-statutes--title-11--11-50-320}
(a) Each corporation organized under this article or the articles of incorporation of which are amended under this article, in addition to all other powers conferred on it by this article and by law, is hereby further authorized and empowered to acquire, by purchase from the owner or owners thereof, or to construct, or to acquire and construct all or any part of a system or systems, and any rights incidental thereto, located within the limits of any incorporated municipality in this state other than the municipality within which such corporation was organized to operate, and thereafter to manage, operate, extend, enlarge, lease, mortgage, convey, and otherwise control the same as a part of its system or systems in the municipality within which such corporation was organized to operate, in all respects as if the properties so purchased were located in the municipality within which such corporation was organized to operate.
(b) Any such corporation may and is hereby further authorized and empowered to enter into a contract with such other municipality providing that when such corporation shall have paid all indebtedness incurred by it for the system or systems acquired by it and located in such other municipality (other than for operating expenses), then it shall thereupon convey to such other municipality the entire system or systems and all rights incidental thereto which may be owned by it and which may be located within the limits of such other municipality and also any property located outside of such other municipality which may be owned by it and which may be necessary for the operation therein of such system, all as may be provided in such contract. If any such contract shall be so made, then upon payment in full by such corporation of all such indebtedness, such corporation shall thereupon convey to such other municipality the properties and rights so agreed to be conveyed under the provisions of such contract.
*(Acts 1951, No. 175, p. 416, §7.)*
##### **§ 11-50-321** Consolidation of Systems {#sec-11-50-321 omnilex-key=us-al-statutes--title-11--11-50-321}
Each corporation organized under this article or the articles of incorporation of which are amended under this article may, if it so elects, combine and consolidate any of its systems (whether water, sewer, gas, or electric) with any one or more of its other systems (whether water, sewer, gas, or electric) and provide for the operation, maintenance, and repair of the systems so consolidated as one combined and consolidated system, the keeping of books and records for one combined system and the borrowing of money for any purpose authorized by law and the issuance of revenue bonds payable from the revenues of the combined system, or such corporation may keep and operate any one or all of its systems separate from its other systems. One combination and consolidation of systems shall not prevent other combinations and consolidations of other systems or the combination and consolidation of another system or systems with said consolidated system.
*(Acts 1951, No. 175, p. 416, §8.)*
##### **§ 11-50-322** Exemption from Taxation of Bonds, Property, and Income of Corporation; Other Exemptions {#sec-11-50-322 omnilex-key=us-al-statutes--title-11--11-50-322}
The property and income of each corporation formed or the certificate of incorporation of which is amended under this article and all bonds issued by each such corporation and the income from such bonds and conveyances by or to each such corporation and mortgages and indentures of trust by or to each such corporation shall be exempt from all taxation in the State of Alabama. Each such corporation shall also be exempt from all sales and use taxes and gross receipts taxes levied by the state and any political subdivision thereof with respect to the purchase, sale, use, or consumption of property; provided, however, that the provisions of this section shall not be construed to exempt any such corporation from the privilege or license tax levied by Section 40-21-82 or the excise tax levied by Section 40-21-102; and provided, further, that any such sales, use, or gross receipts taxes that may have been paid to the state or any political subdivision thereof by a corporation that was formed or the certificate of incorporation of which is amended under this article shall not be subject to refund.
*(Acts 1951, No. 175, p. 416, §12; Acts 1994, No. 94-711, p. 1380, §3.)*
##### **§ 11-50-323** Construction of Article; Jurisdiction, Etc., of State Board of Health and State Public Service Commission {#sec-11-50-323 omnilex-key=us-al-statutes--title-11--11-50-323}
Neither this article nor any provision contained in this article shall be construed as a restriction or limitation upon any power, right, or remedy which any corporation organized under Sections 11-50-230 through 11-50-241, as amended, or organized or the certificate of incorporation of which is amended under the provisions of this article may have in the absence thereof, but shall be construed as cumulative and independent of any such power, right, or remedy. No proceedings, notice, or approval shall be required for the incorporation of such corporation or the amendment of its articles of incorporation, the acquisition of any property or systems or the making of any loans or the issuance of bonds or instruments in evidence thereof or as security therefor, except as prescribed in this article, any other law to the contrary notwithstanding; provided, however, that nothing in this article shall be construed to suspend the jurisdiction of the State Board of Health as may be otherwise provided by law. Every corporation organized under Sections 11-50-230 through 11-50-241, as amended, or organized or the certificate of incorporation of which is amended under the provisions of this article shall be exempt from all jurisdiction of and regulation by the Alabama Public Service Commission.
*(Acts 1951, No. 175, p. 416, §11.)*
##### **§ 11-50-324** Applicability of Provisions of Sections 11-50-230 through 11-50-273 and Sections 37-4-60 through 37-4-65 {#sec-11-50-324 omnilex-key=us-al-statutes--title-11--11-50-324}
No corporation provided for in this article shall hereafter be organized or incorporated under the provisions of Sections 11-50-230 through 11-50-241, as amended; but corporations already in existence and organized or incorporated under said sections or under said sections and Sections 11-50-260 through 11-50-273, as amended, shall continue in existence and shall continue to have and exercise all powers, authorities, rights, privileges, franchises, functions, and duties, subject to the restrictions and limitations provided for in said sections, as amended, except that such corporations by amending their certificates of incorporation as provided in this article may come under and be governed and controlled by all provisions of this article as fully as if originally incorporated under this article.
Nothing in this article shall be construed as repealing any section or provision of Sections 37-4-60 through 37-4-65 or Sections 11-50-266 through 11-50-270; but said sections shall apply to the acquisition of competing electric systems and gas systems by any corporations organized or the certificate of incorporation of which is amended under the provisions of this article as fully as to municipalities and other governmental agencies and to boards incorporated under the provisions of Sections 11-50-230 through 11-50-241, as amended, and Sections 11-50-260 through 11-50-273.
*(Acts 1951, No. 175, p. 416, §13.)*
#### **Article 10** Boards of Water and Sewer Commissioners
##### **§ 11-50-340** Definitions {#sec-11-50-340 omnilex-key=us-al-statutes--title-11--11-50-340}
As used in this article, the following words and terms shall have the following meanings unless the context shall indicate another meaning or intent:
(1) CITY. Any incorporated city in the State of Alabama.
(2) COUNCIL. The city council, city commission, or other board or body in which the general legislative powers of a city shall be vested.
(3) BOARD. A board of water and sewer commissioners created under the provisions of Section 11-50-341 or, if any such board shall be abolished, the board, body, or commission succeeding to the principal functions thereof or to which the powers given by this article to such board shall be given by law.
(4) WATER SYSTEM. Such term shall include all plants, systems, facilities, or properties used or useful or having the present capacity for future use in connection with the supply or distribution of water, and any integral part thereof, including but not limited to water supply systems, water distribution systems, reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, filtration plants, purification plants, hydrants, meters, valves, and all necessary appurtenances and equipment and all properties, rights, easements, and franchises relating thereto and deemed necessary or convenient by the board for the operation thereof.
(5) SEWAGE. The water-carried wastes created in and carried or to be carried away from residences, hotels, schools, hospitals, industrial establishments, commercial establishments, or any other private or public building together with such surface or ground water or household and industrial wastes as may be present.
(6) SEWAGE DISPOSAL SYSTEM. Such term shall include any plant, system, facility, or property used or useful or having the present capacity for future use in connection with the collection, treatment, purification, or disposal of sewage (including industrial wastes resulting from any processes of industry, manufacture, trade, or business or from the development of any natural resources) or any integral part thereof, including but not limited to treatment plants, pumping stations, intercepting sewers, trunk sewers, pressure lines, mains, and all necessary appurtenances and equipment and all property, rights, easements, and franchises relating thereto and deemed necessary or convenient by the board for the operation thereof.
(7) SEWERS. Such term shall include mains, pipes, and laterals for the reception of sewage and carrying such sewage to an outfall or some part of a sewage disposal system, including pumping stations where deemed necessary by the board.
(8) SEWER SYSTEM. Such term shall embrace both sewers and sewage disposal systems and all property, rights, easements, and franchises relating thereto.
(9) IMPROVEMENTS. Such repairs, replacements, additions, extensions, and betterments of and to a water system or a sewer system as are deemed necessary by the board to place or to maintain such system in proper condition for its safe, efficient, and economic operation or to meet requirements for service in areas which may be served by the board and for which no existing service is being rendered.
(10) COST. As applied to a water system or a sewer system, such term shall include the purchase price of any such system, the cost of construction, the cost of all labor and materials, machinery, and equipment, the cost of improvements, the cost of all lands, property, rights, easements, and franchises required, financing charges, interest prior to and during construction and for one year after completion of construction, the cost of plans and specifications, surveys, and estimates of cost and of revenues, the cost of engineering and legal services and all other expenses necessary or incident to determining the feasibility or practicability of such construction, administrative expenses and such other expenses as may be necessary or incident to the financing authorized by this article. Any obligations or expenses incurred by the board in connection with any of the foregoing items of cost may be regarded as a part of such cost and reimbursed to the board out of the proceeds of revenue bonds issued under the provisions of this article.
*(Acts 1951, No. 775, p. 1359, §1.)*
##### **§ 11-50-341** Creation {#sec-11-50-341 omnilex-key=us-al-statutes--title-11--11-50-341}
(a) The council of any city may, by ordinance, create a board of water and sewer commissioners for such city. Such ordinance shall set forth:
(1) The determination by the council to create such board under the provisions of this article.
(2) The name of such board, which shall be “Board of Water and Sewer Commissioners of the City of _____” (inserting the name of the city) and the temporary address of its principal office.
(3) The names of the persons appointed by the council as members of such board and the expiration of their respective terms of office.
(4) The determination by the council whether the water system of the city or the sewer system of the city or both such systems shall be transferred to the board and the consideration to be received for such transfer.
(b) A copy of such ordinance shall be published once in a newspaper published and having a general circulation in such city, accompanied by a notice signed by the city clerk stating the time and place at which the council will hold a public hearing on the final adoption of such ordinance, such time to be fixed by the council and to be not earlier than 10 days after the publication of such ordinance. After such hearing, which may be adjourned from time to time by the council, the council may finally adopt such ordinance with such amendments, if any, as it may deem advisable.
(c) Upon the final adoption of such ordinance by the council, a copy thereof, certified by the city clerk, and an affidavit showing the publication of such ordinance and accompanying notice as required in subsection (b) of this section shall be filed in the office of the judge of probate of the county or counties where such city is located, who shall issue a certificate reciting that such board has been created and established under the provisions of this article, and thereupon such board shall be conclusively deemed to be lawfully and properly created and established and authorized to execute its powers under this article. The judge of probate shall file a notice of the organization of such board with the Secretary of State.
*(Acts 1951, No. 775, p. 1359, §2.)*
##### **§ 11-50-342** Qualifications, Appointment, Terms of Office, Compensation, and Removal of Members of Board; Oath and Bond Thereof; Vacancies; Election of Officers; Quorum {#sec-11-50-342 omnilex-key=us-al-statutes--title-11--11-50-342}
(a) Each board of water and sewer commissioners shall consist of three members appointed by the council. The members first appointed shall serve for terms of two, four, and six years, respectively, from the date of the judge of probate’s certificate mentioned in subsection (c) of Section 11-50-341 and until their successors shall be duly appointed and qualified; provided, however, that a council which has heretofore created or hereafter creates a board as provided in this article may, at its option, increase the board from three to five members to serve according to all the conditions and terms set forth in this article. In the event the council elects to increase the membership of the board from three to five members, one member added to the board shall be appointed to serve for a term of four years, and the remaining member of the board shall be appointed for a term of six years. The successor of any member of the board shall be appointed for a term of six years, but any person appointed to fill a vacancy shall be appointed to serve only for the unexpired term, and a member of the board shall be eligible for reappointment.
(b) Any member of the board may be removed by the council for misfeasance, malfeasance, or willful neglect of duty, but only after a reasonable notice and a public hearing unless the same are in writing expressly waived.
(c) Each member of the board before entering upon his duties shall take an oath to administer the duties of his office faithfully and impartially, and a record of each oath shall be filed in the office of the city clerk.
(d) Any officer of the city may be appointed to the board; provided, however, that at no time may more than two members of a three member board or three members of a five member board be officers of the city.
(e) The board shall elect one of its members as chairman of the board and another as vice-chairman and shall also elect a secretary-treasurer who need not be a member of the board.
(f) The chairman, vice-chairman, and secretary-treasurer shall serve as such officers at the pleasure of the board. In the event the board consists of three members, two members shall constitute a quorum, and the affirmative vote of two members shall be necessary for any action taken by the board. In the event the board consists of five members, three members shall constitute a quorum, and the affirmative vote of three members shall be necessary for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all rights and perform all duties of the board.
(g) Before the issuance of any revenue bonds under the provisions of this article, each member of the board and the secretary-treasurer shall execute a surety bond in such penal sum as may be fixed by the council of the city, each such surety bond to be conditioned upon the faithful performance of the duties of his office, to be executed by a surety company authorized to transact business in the state as a surety and to be approved by the city attorney and filed in the office of the city clerk.
(h) The members of the board shall receive such salaries for their services as may be fixed by the council from time to time; provided, however, that no officer of the city serving as a member of the board shall receive any salary. Each member of the board shall be reimbursed for his actual expenses necessarily incurred in the performance of his duties.
*(Acts 1951, No. 775, p. 1359, §3; Acts 1956, 2nd Ex. Sess., No. 114, p. 440.)*
##### **§ 11-50-343** Powers Generally; Publication, Recordation, and Authentication of Resolutions of Board {#sec-11-50-343 omnilex-key=us-al-statutes--title-11--11-50-343}
(a) Each board created under the provisions of this article shall be deemed to be a public agency or instrumentality exercising public and governmental functions to provide for the public health and welfare, and each such board is hereby authorized and empowered:
(1) To adopt bylaws for the regulation of its affairs and the conduct of its business;
(2) To adopt an official seal and alter the same at pleasure;
(3) To maintain an office at such place or places within the city as it may designate;
(4) To sue and be sued in its own name;
(5) To acquire, purchase, lease as lessee, construct, reconstruct, improve, extend, operate, and maintain any water system or part thereof or any sewer system or part thereof or any combination thereof within or without or partly within and partly without the corporate limits of the city, and to acquire by gift, purchase, or the exercise of the right of eminent domain lands or rights in land or water rights in connection therewith and to acquire such personal property as it may deem necessary in connection with the construction, improvement, extension, enlargement, or operation of any water system or sewer system and to hold and dispose of all real and personal property under its control; provided, that any proceedings to acquire property by the exercise of the power of eminent domain shall be conducted and the compensation to be paid shall be ascertained and paid in the manner provided by the laws of the state then applicable which relate to condemnation or the exercise of the power of eminent domain by such city;
(6) To issue revenue bonds of the board for any of its corporate purposes, such bonds to be payable solely from revenues, and to refund its bonds, all as provided in this article;
(7) To combine the water system and the sewer system as a single system for the purpose of operation and financing;
(8) To fix and revise from time to time and charge and collect rates, fees, and charges for the use of or for the services and facilities furnished by any system operated by the board;
(9) To exercise jurisdiction, control, and supervision over any water system or sewer system owned, operated, or maintained by the board and to make and enforce such rules and regulations for the maintenance and operation of any such system as may, in the judgment of the board, be necessary or desirable for the efficient operation of such system and for accomplishing the purposes of this article;
(10) To make and enter into all contracts and agreements as the board may determine which are necessary or incidental to the performance of its duties and to the execution of its powers under this article, and to employ such consulting and other engineers, superintendents, managers, construction and financial experts, accountants, and attorneys and such employees and agents as it may determine necessary in its judgment and to fix their compensation; provided, however, that all such expenses shall be payable solely from funds made available under the provisions of this article;
(11) To enter upon, use, occupy, and dig up, with the consent of the city, any street, alley, road, highway, or other public places necessary to be entered upon, used, or occupied in connection with the acquisition, construction, improvement, maintenance, or operation of any water system or sewer system;
(12) To receive and accept from any federal agency grants for or in aid of the construction of any water system or sewer system or part thereof and to receive and accept aid or contributions from any source of either money, property, labor, or other things of value to be held, used, and applied only for the purposes for which such grants or contributions may be made; and
(13) To do all acts and things necessary or convenient to carry out the powers expressly granted in this article.
(b) All resolutions adopted or promulgated by the board shall, as soon as practicable after their passage, be recorded in a book kept for that purpose and be authenticated by the signature of the secretary or other administrative officer authorized to authenticate such resolutions; and all resolutions of a general or permanent nature shall be published in some newspaper of general circulation in the city, but if no such newspaper is published within the limits of the city, such resolutions may be published by posting three copies thereof in three public places within the limits of the city.
*(Acts 1951, No. 775, p. 1359, §4.)*
##### **§ 11-50-344** Transfer of Existing Water or Sewer Systems to Board; Powers of Board as to Conveyance, Etc., of Title to Systems {#sec-11-50-344 omnilex-key=us-al-statutes--title-11--11-50-344}
The council of any city which shall have theretofore created a board of water and sewer commissioners and the waterworks board of any such city which shall have theretofore been formed under the provisions of Sections 11-50-230 through 11-50-241 are each hereby authorized and empowered, without the necessity of authorization of an election by the qualified voters of said city, to transfer and convey to such board of water and sewer commissioners all or any part of any water system or sewer system or both such systems then owned and operated by such city or by such waterworks board for such considerations and upon such terms and conditions as may be mutually agreed upon; provided, however, that any such transfer or conveyance shall be subject to all bonds, mortgages, and other obligations, including revenue bonds, then outstanding which shall have theretofore been issued by such city or by such waterworks board and to all obligations under contracts which shall have theretofore been entered into by such city or such waterworks board in connection with the water system or sewer system or part thereof so transferred and conveyed, and such board of water and sewer commissioners as successors in interest of the city or of such waterworks board in and to the properties so transferred and conveyed shall assume the payment of all such bonds and obligations and the performance of the terms of all such contracts, and the employees of such city or of such waterworks board whose work is directly related to the properties so transferred and conveyed shall, insofar as practicable, continue to perform the same duties as theretofore without reduction in compensation and without impairment of the civil service, seniority, or retirement rights of such employees. The instrument effectuating any such transfer and conveyance may impose any conditions deemed advisable in connection with the management, operation, maintenance, and repair of the properties so transferred and conveyed.
Nothing contained in this section shall be construed as permitting such board of water and sewer commissioners to transfer title to such properties or to encumber the same in such manner that title may become vested in private ownership.
*(Acts 1951, No. 775, p. 1359, §6.)*
##### **§ 11-50-345** Issuance of Revenue Bonds Authorized; Form, Terms, Denominations, Etc.; Execution, Sale, Etc.; Disposition of Proceeds from Sale of Bonds; Issuance of Interim Receipts or Temporary Bonds {#sec-11-50-345 omnilex-key=us-al-statutes--title-11--11-50-345}
(a) Any board of water and sewer commissioners created under the provisions of this article is hereby authorized by resolution, at one time or from time to time, to issue revenue bonds of the board for the purpose of paying all or any part of the cost of any water system or sewer system or any combination thereof and the cost of any improvements, extensions, and additions and for the purpose of refunding any bonds or obligations assumed by the board in connection with the acquisition of such system or systems or part thereof. The principal of and the interest on such bonds shall be payable solely from the funds provided by this article for such payment. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding 10 percent per annum, shall mature at such time or times not exceeding 40 years from their date or dates as may be determined by the board, and may be made redeemable before maturity, at the option of the board, at such price or prices and under such terms and conditions as may be fixed by the board prior to the issuance of the bonds. The board shall determine the form of the bonds, including any interest coupons to be attached thereto, and the manner of execution of the bonds and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bond or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All revenue bonds issued under the provisions of this article shall have and are hereby declared to have all of the qualities and incidents of negotiable instruments under the negotiable instruments law of the state. The bonds may be issued in coupon or in registered form or both as the board may determine, and the provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The issuance of such bonds shall not be subject to any limitation or conditions contained in any other law, and the board may sell such bonds in such manner and for such price as it may determine will best effect the purposes of this article.
(b) The proceeds of the bonds of each issue shall be used solely for the purpose for which such bonds shall have been authorized and shall be disbursed in such manner and under such restrictions, if any, as the board may provide in the resolution authorizing the issuance of such bonds or in the trust agreement mentioned in Section 11-50-346 securing the same.
(c) Prior to the preparation of definitive bonds, the board may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The board may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this article without obtaining the consent of any department, division, commission, board, bureau, agency, or official of the state or of the city and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specifically required by this article.
*(Acts 1951, No. 775, p. 1359, §7; Acts 1970, Ex. Sess., No. 21, p. 2619; Acts 1975, No. 1149, §1.)*
##### **§ 11-50-346** Execution of Trust Agreement as Security for Payment of Revenue Bonds Authorized; Provisions in Trust Agreements or Resolutions for Issuance of Bonds Generally {#sec-11-50-346 omnilex-key=us-al-statutes--title-11--11-50-346}
In the discretion of the board, any revenue bonds issued under the provisions of this article may be secured by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state.
Such trust agreement or resolution providing for the issuance of such bonds may pledge or assign the revenues to be received, but shall not convey or mortgage any water system or sewer system or any part thereof. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the board in relation to the acquisition, construction, improvement, maintenance, repair, operation, and insurance of the system or systems in connection with which such bonds shall have been authorized, the fixing and revising of rates, fees, and charges, the custody, safeguarding, and application of all moneys and the employment of consulting engineers in connection with such construction, reconstruction, or operation. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the board. Any such trust agreement or resolution may set forth the rights and remedies of the bondholders and of the trustee, if any, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the board may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of operation.
Any such pledge of revenues shall be valid and binding from the time when the pledge is made, and the revenues or other moneys so pledged and thereafter received by the board shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the board, irrespective of whether such parties have notice thereof, from the time a statement thereof is filed in the office of the judge of probate of the county or counties where the system is located. Such notice need only state the date of the resolution, the principal amount of the bonds, and whether the system is a water system or sewer system or a combined water and sewer system and that the proceeds of such system have been pledged to the payment of the bonds.
*(Acts 1951, No. 775, p. 1359, §8.)*
##### **§ 11-50-347** Provisions in Resolutions for Issuance of Revenue Bonds or Trust Agreements Securing Same as Payment of Rates, Fees, or Charges for Services {#sec-11-50-347 omnilex-key=us-al-statutes--title-11--11-50-347}
Any resolution providing for the issuance of revenue bonds under the provisions of this article or trust agreement securing such bonds may include any or all of the following provisions and may require the board to adopt such resolutions or to take such other lawful action as shall be necessary to effectuate such provisions, and the board is hereby authorized to adopt such resolutions and to take such other action:
(1) That the board may require the owner, tenant, or occupant of each lot or parcel of land who is obligated to pay rates, fees, or charges for the use of or for the services furnished by any water system or sewer system acquired or constructed by the board under the provisions of this article to make a reasonable deposit with the board in advance to insure the payment of such rates, fees, or charges and to be subject to the application to the payment thereof if and when delinquent.
(2) That if the rates, fees, or charges for the use of or for the services furnished by any water system or sewer system acquired or constructed by the board under the provisions of this article shall not be paid within 30 days after the same shall become due and payable, the board may at the expiration of such 30-day period disconnect the premises from the water system or otherwise suspend services, and the board may proceed to recover the amount of any such delinquency with interest in a civil action.
*(Acts 1951, No. 775, p. 1359, §11.)*
##### **§ 11-50-348** Liability Upon Revenue Bonds, Etc.; Payment of Bonds and Expenses {#sec-11-50-348 omnilex-key=us-al-statutes--title-11--11-50-348}
Revenue bonds issued under the provisions of this article shall not be deemed to constitute a debt of the city or a pledge of the faith and credit of the city, but such bonds shall be payable solely from the funds provided therefor from revenues. All such revenue bonds shall contain on the face thereof a statement to the effect that neither the city nor the board shall be obligated to pay the same or the interest thereon except from revenues of the water system or sewer system in connection with which they are issued and that neither the faith and credit nor the taxing power of the city is pledged to the payment of the principal of or the interest on such bonds.
All expenses incurred in carrying out the provisions of this article shall be payable solely from funds provided under the authority of this article, and no liability or obligation shall be incurred by the board under this article beyond the extent to which moneys shall have provided under the provisions of this article.
*(Acts 1951, No. 775, p. 1359, §5.)*
##### **§ 11-50-349** Remedies of Bondholders and Trustees {#sec-11-50-349 omnilex-key=us-al-statutes--title-11--11-50-349}
Any holder of revenue bonds issued under the provisions of this article or of any of the coupons appertaining thereto and the trustee under any trust agreement, except to the extent the rights given by this section may be restricted by the resolution authorizing the issuance of such bonds or such trust agreement, may, either by civil action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the state or granted under this section or under such resolution or trust agreement, and may enforce and compel the performance of all duties required by this article or by such resolution or trust agreement to be performed by the board or by any officer thereof including the fixing, charging, and collecting of rates, fees, and charges for the use of or for the services and facilities furnished by the water system or sewer system.
*(Acts 1951, No. 775, p. 1359, §13.)*
##### **§ 11-50-350** Revenue Refunding Bonds {#sec-11-50-350 omnilex-key=us-al-statutes--title-11--11-50-350}
(a) The board is hereby authorized to provide by resolution for the issuance of revenue refunding bonds of the board for the purpose of refunding any bonds then outstanding which shall have been assumed by the board or shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds and, if deemed advisable by the board, for the additional purpose of constructing improvements, extensions, or enlargements of the water system or sewer system in connection with which the bonds to be refunded shall have been issued.
(b) The board is further authorized to provide by resolution for the issuance of its revenue bonds for the combined purpose of:
(1) Refunding any bonds then outstanding which shall have been assumed by the board or shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and
(2) Paying all or any part of the cost of acquiring or constructing any additional water system or sewer system or part thereof or any improvements, extensions, or enlargements of any water system or sewer system.
(c) The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the board in respect of the same shall be governed by the provisions of this article insofar as the same may be applicable.
*(Acts 1951, No. 775, p. 1359, §15.)*
##### **§ 11-50-351** Establishment, Collection, Etc., of Rates, Fees, and Charges for Services Furnished {#sec-11-50-351 omnilex-key=us-al-statutes--title-11--11-50-351}
(a) The board is hereby authorized to fix and revise from time to time rates, fees, and other charges for the use of and for the services furnished or to be furnished by any water system, sewer system, or sewage disposal system or parts thereof owned, operated, or maintained by the board. Such rates, fees and charges shall be so fixed and revised as to provide funds sufficient at all times:
The board shall charge and collect the rates, fees, and charges so fixed or revised, and such rates, fees, and charges shall not be subject to supervision or regulation by any commission, board, bureau, department, agency, or official of the state or of the city.
(b) Such rates, fees, and charges shall be just and equitable and may be based or computed either upon the quantity of water used or upon the number and size of water or sewer connections or upon the number and kind of plumbing fixtures in use in the premises connected with the water system or the sewer system or upon the number or average number of persons residing or working in or otherwise connected with such premises or upon the type or character of such premises or upon any other factor affecting the use of the facilities furnished or upon any combination of the foregoing factors.
(c) Any charges for sewer services, including services to manufacturing and industrial plants, obtaining all or a part of their water supply from sources other than the water system of the board may be determined by gauging or metering or in any other manner approved by the board.
(d) In cases where the character of the sewage from any manufacturing or industrial plant, building, or premises is such that it imposes an unreasonable burden upon the sewer system, an additional charge may be made therefor, or the board may, if it deems it advisable, compel such manufacturing or industrial plant, building, or premises to treat such sewage in such manner as shall be specified by the board before discharging such sewage into any sewers owned or maintained by the board.
(e) The board may combine any water system and sewer system owned and operated by it and may provide a single schedule of rates, fees, and charges for the services and facilities furnished by such combined system. It may also provide for reductions in such schedule in cases where water is furnished to premises which are not connected with the sewer system of the board.
*(Acts 1951, No. 775, p. 1359, §9.)*
##### **§ 11-50-352** Adoption, Etc., of Rules and Regulations as to Connection of Buildings to Sewers {#sec-11-50-352 omnilex-key=us-al-statutes--title-11--11-50-352}
In case the board shall finance the construction of a sewage disposal system under the provisions of this article, the owner, tenant, or occupant of each lot or parcel of land within the city which abuts upon a street or other public way containing a sewer which is connected with such sewage disposal system and upon which lot or parcel a building shall have been constructed for residential, commercial, or industrial use shall, if so required by the rules and regulations of the board or by the council, connect such building with such sewer and shall cease to use any other method for the disposal of sewage, sewage waste, or other polluting matter.
All such connections shall be made in accordance with rules and regulations which shall be adopted from time to time by the board, which rules and regulations may provide for a charge for making any such connection in such reasonable amount as the board may fix and establish.
*(Acts 1951, No. 775, p. 1359, §10.)*
##### **§ 11-50-353** Moneys Received Under Article Deemed Trust Funds; Provisions in Trust Agreements or Resolutions for Issuance of Bonds as to Trustees {#sec-11-50-353 omnilex-key=us-al-statutes--title-11--11-50-353}
All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this article.
The resolution authorizing the bonds of any issue or the trust agreement securing such bonds shall provide that any officer with whom or any bank, trust company, or other fiscal agent with which such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this article and such resolution or trust agreement may provide.
*(Acts 1951, No. 775, p. 1359, §12.)*
##### **§ 11-50-354** Exemption from Taxation of Systems, Revenue Bonds, Etc {#sec-11-50-354 omnilex-key=us-al-statutes--title-11--11-50-354}
As proper water and sewer facilities are essential for the health of the inhabitants of the city, and as the exercise of the powers conferred by this article to effect these purposes constitute the performance of essential governmental functions, and as these water systems and sewer systems constitute public property and are used for public purposes, the board shall not be required to pay any taxes or assessments upon any system or any part thereof, whether located within or without the corporate limits of the city. Each water system shall also be exempt from all sales and use taxes and gross receipts taxes levied by the state and any political subdivision thereof with respect to the purchase, sale, use, or consumption of property provided, nothing contained herein shall be construed to exempt each corporation from collecting and remitting the utility gross receipts tax levied in Section 40-21-80. Any revenue bonds issued under this article and their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation within the state.
*(Acts 1951, No. 775, p. 1359, §14; Acts 1995, No. 95-688, p. 1498, §3.)*
##### **§ 11-50-355** Annual Reports and Audits; Conflicts of Interest of Members, Agents, or Employees of Board; Vesting of Title to Systems in City and Dissolution of Board Upon Payment, Etc., of Bonds, Etc., in Full {#sec-11-50-355 omnilex-key=us-al-statutes--title-11--11-50-355}
(a) Within 60 days after the expiration of each fiscal year the board shall make an annual report of its activities for the preceding fiscal year to the city. Each such report shall set forth a complete operating and financial statement covering its operation during such fiscal year. The board shall cause an audit of its books and accounts to be made at least once in each year by a certified public accountant or an auditor who is regularly employed by the State Examiner of Public Accounts, and the cost thereof may be treated as a part of the cost of operation.
(b) Any member, agent, or employee of the board who contracts with the board or is interested, either directly or indirectly, in any contract with the board or in the sale of any property, either real or personal, to the board shall be guilty of a misdemeanor.
(c) When all of the bonds and other obligations assumed by the board and all the revenue bonds issued by it shall have been fully paid or provisions for such payment shall have been made, then all properties, whether tangible or intangible, then owned and operated by the board shall become the property of the city, and all rights of the board in and to the same shall thereupon immediately vest in the city, and the board shall be automatically dissolved.
*(Acts 1951, No. 775, p. 1359, §16.)*
##### **§ 11-50-356** Provisions of Article Cumulative; Issuance of Revenue Bonds and Revenue Refunding Bonds {#sec-11-50-356 omnilex-key=us-al-statutes--title-11--11-50-356}
The provisions of this article shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of revenue bonds or revenue refunding bonds under the provisions of this article need not comply with the requirements of any other law applicable to the issuance of bonds.
*(Acts 1951, No. 775, p. 1359, §17.)*
##### **§ 11-50-357** Article to Be Liberally Construed {#sec-11-50-357 omnilex-key=us-al-statutes--title-11--11-50-357}
This article, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof.
*(Acts 1951, No. 775, p. 1359, §18.)*
##### **§ 11-50-358** Conflicting Laws {#sec-11-50-358 omnilex-key=us-al-statutes--title-11--11-50-358}
All other general or special laws or parts thereof inconsistent herewith are hereby declared to be inapplicable to the provisions of this article.
*(Acts 1951, No. 775, p. 1359, §20.)*
#### **Article 11** Operation of Sanitary Sewer Systems by Public Water Corporations
##### **§ 11-50-370** Definitions {#sec-11-50-370 omnilex-key=us-al-statutes--title-11--11-50-370}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) PUBLIC CORPORATION. Any of the following: A municipality incorporated under the laws of this state; a board organized under Sections 11-50-230 through 11-50-238, 11-50-240 and 11-50-241, inclusive, as amended; a board organized under Sections 11-50-310 through 11-50-324, as amended; and a board organized under Sections 11-50-340 through 11-50-358, as amended.
(2) PUBLIC WATER CORPORATION. Any public corporation which owns and operates a water distribution system or which has the corporate power and proposes to own and operate a water distribution system.
(3) SANITARY SEWER SYSTEM. Any or all of the following: Sanitary sewer mains, sanitary sewer laterals, a sewage disposal plant or plants, and a sewage treatment plant or plants and appurtenances related to any thereof.
(4) PUBLIC SEWER CORPORATION. Any public corporation which owns and operates a sanitary sewer system or which has the corporate power and proposes to own and operate a sanitary sewer system.
*(Acts 1953, No. 663, p. 920, §1.)*
##### **§ 11-50-371** Contracts Between Public Water Corporations and Public Sewer Corporations for Operation and Management of Sanitary Sewer Systems {#sec-11-50-371 omnilex-key=us-al-statutes--title-11--11-50-371}
(a) Any public water corporation and any public sewer corporation are hereby authorized to enter into a contract with each other whereunder such public water corporation shall act as agent for such public sewer corporation for the operation and management of any sanitary sewer system of the public sewer corporation which serves or which it is proposed will serve all or any part of the same territory served or to be served by a water distribution system operated or to be operated by such public water corporation.
(b) Any such contract may contain such provisions and terms as may be mutually agreed on by the parties thereto respecting the operation and management of the sanitary sewer system covered thereby, including provisions respecting the furnishing of water by such public water corporation for such sanitary sewer system, provisions respecting the collection and remittance by such public water corporation of sewer service charges collected by it for services rendered by or from such sanitary sewer system after deduction of the charges of such public water corporation for its services as such agent and for any water furnished by it for such sanitary sewer system and also provisions for the discontinuance of the furnishing of water by such public water corporation to any of its water customers if such customer fails to pay, within a reasonable time as shall be designated by such public water corporation, any service charge established by such public sewer corporation for service rendered to such customer by or from such sanitary sewer system. As an aid to the efficient operation by such public water corporation of the sanitary sewer system covered by any such contract, such public water corporation is authorized to establish regulations providing for such discontinuance of water service and to put such regulations into effect.
*(Acts 1953, No. 663, p. 920, §2.)*
##### **§ 11-50-372** Rights and Powers of Public Water Corporations and State Board of Health as to Sanitary Sewers Not Impaired by Article {#sec-11-50-372 omnilex-key=us-al-statutes--title-11--11-50-372}
Nothing contained in this article shall be construed to deprive any such public water corporation of its right to fix the charges for sanitary sewer service rendered by any sanitary sewer system owned by it, or its title thereto or its control thereover and powers with respect thereto. Nothing contained in this article shall be construed to impair any power of the State Board of Health granted by law with respect to any such sanitary sewer system.
*(Acts 1953, No. 663, p. 920, §3.)*
#### **Article 12** Gas Districts
##### **§ 11-50-390** Definitions {#sec-11-50-390 omnilex-key=us-al-statutes--title-11--11-50-390}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) MUNICIPALITY. Any incorporated city or town in the State of Alabama.
(2) GOVERNING BODY. The council, commission, or other governing body of such municipality.
(3) MAYOR. The mayor, president, or chairman of the commission or other chief executive officer of such municipality.
(4) GAS TRANSMISSION SYSTEM. A plant and system for the manufacture, transmission, delivery, and transportation of natural or manufactured gas, together with all appurtenances thereto and all property, real, personal, or mixed, used or useful in connection therewith, including franchises and easements. Such gas transmission system shall include facilities for making sales and deliveries of gas to industrial and institutional users and to line tap residential and commercial users as well as to gas distribution systems.
(5) GAS DISTRIBUTION SYSTEM. A plant and system for the distribution and sale of gas and gas services in a municipality and the surrounding territory, including the sale and distribution of gas to residential, commercial, industrial, institutional, and all other users, together with all appurtenances thereto and all property, real, personal, or mixed, used or useful in connection therewith, including franchises and easements. A gas distribution system may make sales and deliveries of gas to other distribution systems.
(6) GAS SYSTEM AND SYSTEMS. One or more gas transmission systems and one or more gas distribution systems.
(7) RESOLUTION. A resolution adopted by a majority vote of a quorum present of the governing body of a municipality. All resolutions of a general or permanent nature adopted or promulgated by the governing body of a municipality under the provisions of this article shall be published in a newspaper of general circulation in the municipality, but if no newspaper is published within the limits of such municipality, such resolution may be published by posting a copy thereof in three public places within the limits of the municipality.
*(Acts 1951, No. 762, p. 1319, §2.)*
##### **§ 11-50-391** Creation {#sec-11-50-391 omnilex-key=us-al-statutes--title-11--11-50-391}
Any two or more municipalities are hereby empowered and authorized to cause to be organized and incorporated a gas district as a public corporation with all the power and authority provided in this article for the purpose of securing for such municipalities a supply of natural or artificial gas and for the purpose of transporting gas and for the purpose of the local distribution and sale of gas and gas services in any one or more of such municipalities or for any one or more of such purposes. Such power and authority shall be exercised by the governing body of each such municipality. The determination of such governing body to exercise the power and authority in this section granted shall be evidenced by a resolution which shall declare the desirability of organizing and incorporating a gas district, name the municipalities which are to be members of such district, set forth a brief description of the gas system or systems to be owned and operated by such district, and authorize the mayor of such municipality to proceed with the organization and incorporation of such gas district. Whenever the governing bodies of all of the municipalities which are to be members of such gas district shall have adopted such resolutions, the chief executive officer of each such municipality shall sign the certificate of incorporation and cause the same to be filed as provided in subsection (a) of Section 11-50-392.
*(Acts 1951, No. 762, p. 1319, §1.)*
##### **§ 11-50-392** Contents, Acknowledgment, Filing, and Recordation of Certificate of Incorporation; Procedure for Amendment Thereof; Dissolution of District and Disposition of Systems, Etc., Upon Payment of Indebtedness of District in Full {#sec-11-50-392 omnilex-key=us-al-statutes--title-11--11-50-392}
(a) The certificate of incorporation of any gas district incorporated under this article shall state:
(1) The name of the corporation, which shall be a name indicating in a general way the area or municipalities proposed to be served by the district (e.g., “The South Alabama Gas District” or “The _____ County Gas District” or “The _____, _____, and _____ (naming the municipalities which are members thereof) Gas District”);
(2) The names of all the municipalities which are to be members of the district;
(3) The location of the principal office of the district and its post office address;
(4) The period for the duration of the corporation (if the duration is to be perpetual, this fact should be stated); and
(5) The objects for which the district is organized.
The certificate of incorporation may also include any provision or provisions not contrary to law which the incorporators may choose to insert for the regulation and conduct of the affairs of the district. The certificate of incorporation shall be acknowledged before an officer authorized by the laws of this state to take acknowledgments of deeds and shall have appended thereto a certified copy of the resolution of each municipality which is to be a member thereof and which authorized its mayor to participate in the incorporation thereof. The certificate of incorporation shall be filed in the office of the judge of probate of the county in which the principal office is to be located; and said judge of probate shall forthwith file such certificate and record the same, and thereupon the incorporators shall constitute a public corporation under the name stated in the certificate of incorporation. As soon thereafter as convenient, the judge of probate shall transmit a copy of the certificate of incorporation to the Secretary of State.
(b) The certificate of incorporation of any gas district incorporated under this article may at any time and from time to time be amended in the following manner: The board of directors of the district shall adopt a resolution setting forth the proposed amendment, which may include any proposed change in the name of such district, the inclusion of other municipalities as members thereof, or any matter which might originally have been included in the certificate of incorporation. If the governing body of each of the municipalities which authorized the incorporation of the district and the governing body of each municipality which it is proposed shall be added as members of the district and the municipalities shall by resolution of their respective governing bodies consent to such proposed amendment, the chairman of the board of directors or other chief executive officer of the district and the secretary of the district shall then file in the office of the judge of probate in the county in which the certificate of incorporation of the district is filed a certificate in the name and on behalf of the district, under its corporate seal, reciting the adoption of the said respective resolutions by the board of directors and by the governing bodies of such municipalities and setting forth the proposed amendment. The proposed amendment shall become effective upon the filing of such certificate in the said office.
(c) Whenever all the indebtedness and obligations of the district shall have been paid in full and a plan for the distribution and disposal of all the systems and property of the district shall have been made and approved by its board of directors and by the governing body of each of the municipalities which are members of the district, a certificate reciting these facts and that it is the desire of the board of directors of the district and of the governing bodies of each of the municipalities which are members thereof that the district be dissolved shall be filed in the office of the judge of probate of the county in which the certificate of incorporation is filed, and thereupon the district shall be dissolved and the members of the board of directors of the district shall be trustees of its systems and properties to distribute and dispose thereof in accordance with said plan.
*(Acts 1951, No. 762, p. 1319, §3.)*
##### **§ 11-50-393** Board of Directors - Composition; Compensation; Removal Actions {#sec-11-50-393 omnilex-key=us-al-statutes--title-11--11-50-393}
(a) Each district incorporated under this article shall have a board of directors of not less than three members, and the members shall elect a chair of the board. Unless otherwise provided in the certificate of incorporation, the board of directors shall consist of at least one member for each municipality that is a member of the district. Unless otherwise provided in the certificate of incorporation, the member of the board of directors representing each member municipality shall be elected by the governing body of each municipality and shall serve for a term of office concurrent with the term of office of the mayor of the municipality. A representative of each municipality may be, but need not be the mayor thereof.
(b) The 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 exceeding one thousand seven hundred fifty dollars ($1,750) for each director’s meeting attended, but not to exceed one meeting each calendar month. The chair of the board of directors 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 of directors, he or she may be paid a director’s fee not exceeding two thousand dollars ($2,000) for each director’s meeting attended, but not to exceed one meeting each calendar month.
(c) Members of the board of directors shall hold office until their successors are appointed and qualify. Appointments to fill a vacancy shall be for the unexpired term.
(d)The appointing authority may remove any member of the board of directors within the term for which he or she is appointed after giving the member a copy of the charges against him or her and an opportunity to be heard in his or her defense. The removal action of the appointing authority shall be final and nonreviewable.
*(Acts 1951, No. 762, p. 1319, §6; Acts 1982, No. 82-529, p. 878; Acts 1993, No. 93-721, p. 1410, §1; Act 2004-553, p. 1191, §1; Act 2009-588, p. 1733, §1; Act 2024-282, §1.)*
##### **§ 11-50-394** Board of Directors - Organization; Officers {#sec-11-50-394 omnilex-key=us-al-statutes--title-11--11-50-394}
Promptly after their appointment, the members of the board of directors shall meet to organize. At such meeting and at the first meeting in each year thereafter, the members of the board shall choose from their number a president. They shall also choose a secretary and a treasurer who may but need not be members of the board.
*(Acts 1951, No. 762, p. 1319, §7.)*
##### **§ 11-50-395** Board of Directors - Powers Generally; Resolutions {#sec-11-50-395 omnilex-key=us-al-statutes--title-11--11-50-395}
(a) The board of directors shall constitute the governing body of the district. The board shall do all things necessary or convenient in acquiring, owning, operating, developing, and improving the gas system or systems owned or to be owned by the district and shall exercise all the powers of the district including but not limited to the following powers:
(1) To adopt and amend bylaws for the management and regulation of its affairs and the enterprises in which it is engaged;
(2) To use, with the consent of any of its member municipalities, the agents, employees, or facilities or property of such municipalities and to provide for the payment of the agreed proportion of the costs therefor;
(3) To appoint officers, agents, and employees, including attorneys, and to fix their compensation;
(4) To contract with any person, firm, or corporation for the entire supervision, operation, and management of any one or more systems of the district, including the collection and distribution of the revenue therefrom, for such period of time as the board may deem advisable and at such compensation and upon such terms as may be agreed upon and approved by the board of directors; and
(5) To provide for the execution of deeds, mortgages, indentures of trust, bonds, obligations, and other instruments of the district.
(b) Action of the board of directors shall be taken by resolution. Any resolution of a general or permanent nature shall not become effective until it has been published in some newspaper of general circulation in the district, but if no such newspaper is published within the limits of the district, such resolution may be published by posting a copy thereof in three public places within the limits of the district.
*(Acts 1951, No. 762, p. 1319, §8.)*
##### **§ 11-50-396** Powers Generally {#sec-11-50-396 omnilex-key=us-al-statutes--title-11--11-50-396}
Each district incorporated under this article shall have each and all of the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession in its corporate name for the duration of time (which may be in perpetuity) specified in the certificate of incorporation, or until dissolved as provided in subsection (c) of Section 11-50-392.
(2) To sue and be sued and to defend civil actions against it.
(3) To have and use a corporate seal and alter the same at pleasure.
(4) To acquire, purchase, construct, receive, own, operate, maintain, enlarge, extend, and improve any one or more gas systems the operation of which is provided for in the certificate of incorporation of the district (whether or not such system or systems were in existence or whether or not such system or systems were privately owned or municipally owned prior to the acquisition by such district).
(5) To receive, acquire, take, and hold, whether by purchase, gift, or lease, devise, or otherwise, real, personal, and mixed property of any nature whatsoever that its board of directors may deem a necessary or convenient part of or useful in connection with such system or systems.
(6) To borrow money for any corporate purpose and to issue in evidence of the borrowing interest-bearing bonds payable solely from the revenues derived from the operation of any one or more of its systems.
(7) To pledge to the payment of its bonds any revenues from which the bonds are made payable and to mortgage, pledge, or otherwise convey as security for such bonds the system or systems the revenues from which are so pledged.
(8) To make such covenants in connection with the issuance of bonds or in order to secure the payment of bonds as a private business corporation can make under the general laws of the state, notwithstanding that such covenants may operate as limitations on the exercise of other powers granted by this article.
(9) To purchase, manufacture, produce, or otherwise secure a supply or supplies of natural gas or manufactured gas or both.
(10) To transport and to sell at wholesale all or any part of its gas supply to any municipality or any gas or utility board for distribution to the inhabitants of any municipality and the surrounding territory or to any other user, residential, industrial, institutional, or commercial.
(11) To transport and distribute and to sell gas and to furnish gas services from its system or systems.
(12) To establish rates and charges for its gas and gas services and to alter such rates and charges by resolution, which resolution shall be published in some newspaper of general circulation in the district; but, if no newspaper is published within the limits of the district, such resolution may be published by posting a copy thereof in three public places within the limits of the district.
(13) To collect and enforce collection of such charges.
(14) To lease, exchange, sell, convey, and otherwise dispose of its real, personal, or mixed property by any form of conveyance or transfer, with it being expressly provided that a district may sell and convey a gas system or systems to utility companies or corporations regulated by the Alabama Public Service Commission.
(15) To appoint and employ officers, agents, and employees, including attorneys, as its business may require and to fix their compensation.
(16) To provide for such insurance as its board of directors may deem advisable.
(17) To exercise all powers of eminent domain now or hereafter conferred on municipalities in this state.
(18) To own and operate liquefied petroleum gas systems, including vehicles and containers for delivery and dispensing liquefied petroleum gas, and to distribute, dispense, and sell liquefied petroleum gas within and without the state.
*(Acts 1951, No. 762, p. 1319, §4; Acts 1969, No. 634, p. 1161, §1; Act 2005-307, 1st Sp. Sess., §1.)*
##### **§ 11-50-397** Exercise of Powers of Eminent Domain Generally {#sec-11-50-397 omnilex-key=us-al-statutes--title-11--11-50-397}
The powers of eminent domain granted and conferred upon districts incorporated under this article shall be exercised in the same manner and subject to the same limitations as in the case of municipal corporations; provided that the power of eminent domain shall not be exercised by any such district in order to acquire those properties of any natural gas company which are subject to the regulation of the Federal Power Commission or any properties of any person which are to be used for the distribution of liquefied petroleum gas.
*(Acts 1951, No. 762, p. 1319, §5; Act 2005-307, 1st Sp. Sess., §1.)*
##### **§ 11-50-398** Acquisition, Construction, Operation, Etc., of Gas Distribution Systems Outside Territory of Municipalities by Which Incorporated {#sec-11-50-398 omnilex-key=us-al-statutes--title-11--11-50-398}
Any such gas district may, if its certificate of incorporation shall so provide, acquire, construct, own, and operate gas distribution systems and any other facilities suitable to provide for the distribution and sale of gas outside of the territory of the municipalities which are members of such gas district and outside of the territory surrounding such municipalities.
*(Acts 1953, No. 436, p. 542, §2.)*
##### **§ 11-50-399** Acquisition of Competing Gas Systems, Etc {#sec-11-50-399 omnilex-key=us-al-statutes--title-11--11-50-399}
All districts incorporated under the provisions of this article shall have all powers and be subject to all limitations with respect to the acquisition of competing gas systems and the duplication of existing privately owned gas systems to the same extent as boards under the provisions of Sections 11-50-266 through 11-50-270.
*(Acts 1951, No. 762, p. 1319, §17.)*
##### **§ 11-50-400** Use of Public Highway Rights-of-Way {#sec-11-50-400 omnilex-key=us-al-statutes--title-11--11-50-400}
Each such district is hereby authorized to use the right-of-way of public highways for construction of gas lines along the margin of said right-of-way subject to the district’s obtaining written permission from the appropriate county commission or the State Department of Transportation as applicable.
*(Acts 1951, No. 762, p. 1319, §19; Acts 1969, No. 476, p. 932.)*
##### **§ 11-50-401** Promulgation of Rules and Regulations as to Installation, Maintenance, Etc., of Gas Fixtures, Pipes, Etc., Served by District - Authorized {#sec-11-50-401 omnilex-key=us-al-statutes--title-11--11-50-401}
Any gas district now or hereafter organized in this state under the provisions of this article is hereby authorized and empowered to promulgate rules and regulations governing and relating to the installation, connection, maintenance, and servicing of gas fixtures, pipes, appliances, and equipment with respect to properties served by it.
Such rules and regulations may require that any person so installing, connecting, maintaining, or servicing any such fixtures, pipes, appliances, and equipment be licensed by the gas district promulgating such rules and regulations.
*(Acts 1955, No. 362, p. 880, §1.)*
##### **§ 11-50-402** Promulgation of Rules and Regulations as to Installation, Maintenance, Etc., of Gas Fixtures, Pipes, Etc., Served by District - Procedure {#sec-11-50-402 omnilex-key=us-al-statutes--title-11--11-50-402}
Any such rules or regulations promulgated by a gas district under the authority conferred by this article shall be incorporated in a resolution of its board of directors, which resolution shall be deemed a resolution of general or permanent nature and shall be published in the manner required of resolutions of a general or permanent nature by the provisions of Section 11-50-395; provided however, that where such rules or regulations have been printed as a code in book or pamphlet form, they may be adopted by reference thereto without publication or posting if, prior to adoption thereof, the board of directors of such gas district shall hold a public hearing thereon and shall give public notice of the time, place, and purpose of such hearing. Such notice shall be sufficient if published once a week for two successive weeks in a newspaper published within the territory served by the gas district proposing to adopt such code or, if there be no newspaper published within the territory served by such gas district, in a newspaper of general circulation within such territory. The first of such publications shall be not less than 10 days before the date fixed for such public hearing.
*(Acts 1955, No. 362, p. 880, §2.)*
##### **§ 11-50-403** Rules and Regulations Not to Supersede Rules, Regulations, Etc., of Municipalities in Territory Served by District; Municipal Rules, Regulations, Etc., to Govern in Event of Conflict {#sec-11-50-403 omnilex-key=us-al-statutes--title-11--11-50-403}
No rules or regulations promulgated by a gas district pursuant to the authority conferred by this article shall supersede any valid rules, regulations, or codes promulgated by a municipality situated in the territory served by such gas district with respect to the installation, connection, maintenance, and servicing of gas fixtures, pipes, appliances, and equipment within the corporate limits of such municipality or its police jurisdiction.
In the event of any conflict between any rules or regulations promulgated by a gas district pursuant to this article and those adopted by a municipality situated in the territory served by such gas district, those adopted by such municipality shall apply and shall be controlling with respect to the installation, connection, maintenance, and servicing of gas fixtures, pipes, appliances, and equipment within the corporate limits of such municipality and its police jurisdiction.
*(Acts 1955, No. 362, p. 880, §3.)*
##### **§ 11-50-404** Transfer of Systems to District by Municipalities {#sec-11-50-404 omnilex-key=us-al-statutes--title-11--11-50-404}
Each municipality in Alabama which now or hereafter owns a gas plant and system is hereby authorized to transfer and convey all or any part of such plant and system or any rights incident thereto, without the necessity of authorization at an election of the qualified voters of such municipality, to a gas district incorporated as a public corporation under the provisions of this article, whether such municipality is a member of the district or not. Any such transfer or conveyance may be made with or without pecuniary consideration and on any such terms and conditions as the governing body of the municipality owning such plant and system may determine. Any such transfer and conveyance shall be made only upon the adoption by the governing body of the municipality owning such plant and system of an ordinance or resolution authorizing such transfer and conveyance.
*(Acts 1953, No. 641, p. 900.)*
##### **§ 11-50-405** Bonds - Authorization for Issuance; Form, Terms, Denominations, Etc.; Execution and Delivery; Sale; Refunding and Exchange; Issuance of Interim Receipts or Temporary Bonds {#sec-11-50-405 omnilex-key=us-al-statutes--title-11--11-50-405}
The bonds of a district incorporated under this article shall be authorized by resolution of the board of directors of the district and may be issued in one or more series, may bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered or both, be executed in such manner, be payable in such medium of payment, at such place or places, be nonredeemable or subject to such terms of redemption, with or without premium and be subject to being declared or becoming due before the maturity date thereof as such resolution or resolutions may provide. Said bonds may be issued for money or property, either at public or private sale and for such price or prices as the board of directors shall determine. Such authorizing resolution shall provide for the execution and delivery of bonds of the district by its officers therein designated. Coupons may be executed with the facsimile signature of any officer designated by the board of directors.
Any bonds issued by the district may thereafter at any time (whether before, at or after maturity thereof) and from time to time be refunded by the issuance of refunding bonds, which may be sold by such district at public or private sale at such price or prices as may be determined by its board of directors, or which may be exchanged for the bonds to be refunded or which may be partly sold and partly exchanged. Any such refunding bonds may be issued at any time and from time to time as the board of directors may deem it advisable, whether or not the bonds to be refunded are then subject to redemption, and may be issued in a principal amount not exceeding the principal amount of the bonds to be refunded plus any premium necessary to redeem or retire such bonds, any interest (accrued or to accrue) on such bonds to the date of redemption or retirement thereof and any expenses estimated to be incurred in connection with such refunding; and, if deemed advisable by the board of directors, bonds may be issued by any district incorporated under this article for the combined purpose of so refunding any outstanding bonds and of acquiring, constructing, providing, improving or extending any gas system or systems. The district may pay all expenses, premiums and commissions which its board of directors may deem necessary or desirable in connection with any financing done by it. All bonds issued by such district shall be construed to be negotiable instruments although payable solely from a specified source, and bona fide holders of such bonds for value shall be entitled to all benefits provided by the negotiable instruments law of the State of Alabama. Pending the preparation or execution of definitive bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of said bonds. Any bonds issued by it may be purchased by a district out of any funds available for such purchase, but such right of purchase may be limited in the authorizing resolution. All bonds so purchased shall be cancelled.
*(Acts 1951, No. 762, p. 1319, §9; Acts 1965, No. 694, p. 1286, §1; Acts 1971, 1st Ex. Sess., No. 102, p. 183.)*
##### **§ 11-50-406** Bonds - Disposition of Proceeds from Sale {#sec-11-50-406 omnilex-key=us-al-statutes--title-11--11-50-406}
All moneys derived from the sale of any bonds issued by any district incorporated under this article shall be used solely for the purpose or purposes for which the same are authorized, including any engineering, legal or other expenses incident thereto and, in the case of bonds issued in whole or in part for the construction of a gas system or systems or any part thereof, interest on such bonds (or, if a part only of the bonds are issued for the purpose of such construction, on the part of such bonds issued for that purpose) prior to and during such construction and, in the case of bonds issued by a district for the purpose of refunding outstanding bonds of such district, any premium which it may deem necessary to pay in order to redeem or retire the bonds to be refunded and any interest (accrued and to accrue) on the bonds to be so refunded.
The treasurer or other officer designated by the board of directors shall give a receipt for the purchase price to the purchaser of any such bonds, which receipt shall be full acquittal to such purchaser, and he shall not be under any duty to inquire as to the application of the proceeds of such bonds.
*(Acts 1951, No. 762, p. 1319, §14; Acts 1965, No. 694, p. 1286, §2.)*
##### **§ 11-50-407** Provisions in Mortgages, Deeds of Trust, Etc., Executed as Security for Bonds as to Rights of Parties Thereto, Etc.; Execution, Etc., of Contracts as Security for Repayment of Moneys Borrowed {#sec-11-50-407 omnilex-key=us-al-statutes--title-11--11-50-407}
(a) Any mortgage, deed of trust or pledge agreement made by any district incorporated under this article for the security of any of its bonds or to define the rights, remedies and privileges of the holders of such bonds and the duties of the district to such holders may contain such agreements, obligations, covenants and provisions as the board of directors may deem advisable respecting the operation and maintenance of the gas system or systems and the collection and application of the revenues subject to such mortgage, deed of trust or pledge agreement and respecting the rights and duties of the parties to such instrument or the parties for the benefit of whom such instrument is made, with it being expressly provided that any such mortgage or deed of trust may be subject to the sale of the system or systems at foreclosure to utility companies or corporations regulated by the Alabama Public Service Commission.
(b) To further secure the repayment of any money borrowed by it, any such district may enter into a contract or contracts binding itself for the proper application of the money borrowed, for the continued operation and maintenance of any gas system or systems owned or to be acquired or constructed by it or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from its gas system or systems, for the disposition and application of its gross revenues or any part thereof and for any other act or series of acts not inconsistent with the provisions of this article for the protection of the loan and the assurance that the revenues from its gas system or systems will be sufficient to operate such system or systems, maintain the same in good repair and in good operating condition, pay all reasonable insurance thereon, pay the principal of and interest on any bonds payable from such revenues and maintain such reserves and funds as may be deemed appropriate for the protection of the loan and the efficient operation of such system or systems.
*(Acts 1951, No. 762, p. 1319, §11; Acts 1969, No. 634, p. 1161, §2.)*
##### **§ 11-50-408** When Mortgages or Pledges of Property or Revenues and Liens Thereof Effective; Properties, Persons, Etc., Subject Thereto {#sec-11-50-408 omnilex-key=us-al-statutes--title-11--11-50-408}
Any mortgage or conveyance of property and any pledge of revenues to secure the bonds of a district incorporated under this article shall be valid and binding from the time when such mortgage or conveyance is delivered or such pledge made, and the system, properties, revenue, income and moneys so mortgaged, conveyed or pledged and thereafter received by such district shall immediately be subject to the lien of such mortgage, conveyance or pledge without any physical delivery thereof or further act, and the lien of any such mortgage, conveyance or pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the district, irrespective of whether such parties have notice thereof, from the time when a statement thereof is filed in the office of the judge of probate of the county or counties where the system or systems of the district are located. Such notice shall be sufficient if it states the date of the resolution authorizing the issuance of the bonds, the date of the bonds, the principal amount thereof, the maturity dates thereof and whether the system is one or more gas transmission systems or one or more gas distribution systems or both. The judge of probate shall file and index such notice in the record of mortgages in his office.
*(Acts 1951, No. 762, p. 1319, §12.)*
##### **§ 11-50-409** Liability Upon Bonds, Etc.; Payment of Bonds {#sec-11-50-409 omnilex-key=us-al-statutes--title-11--11-50-409}
The bonds and other obligations of any district incorporated under this article shall not be a debt or obligation of the State of Alabama nor a debt or obligation of any municipality which is a member of the district; and neither the state nor any such municipality shall be liable in any way whatsoever thereon, nor may the holder of any such bonds or obligations compel the levy of any taxes for the payment thereof.
Said bonds shall not be payable out of any funds other than the revenues of the gas system or systems of the district issuing the same, and each bond shall contain a recital to that effect. Neither the members of the board of directors nor any person executing said bonds shall be liable personally on said bonds by reason of the issuance thereof.
*(Acts 1951, No. 762, p. 1319, §10.)*
##### **§ 11-50-410** Rights and Remedies of Bondholders and Trustees {#sec-11-50-410 omnilex-key=us-al-statutes--title-11--11-50-410}
In addition to all other rights and all other remedies, any holder or holders of any bond or bonds of any district incorporated under this article, including a trustee for a bondholder, shall have the right, subject to any contractual limitation binding upon such bondholder or holders or trustee and subject to the prior or superior rights of others:
(1) To bring an action on the bonds;
(2) To enforce its rights against the district and the board of directors, by mandamus or other civil action or proceeding, including the right to require the district and such board to fix and collect rates and charges adequate to carry out any agreement as to or pledge of the revenues produced by such rates or charges and to require such district and such board to carry out the other covenants and agreements with such bondholder and to perform its and their duties under this article and under any mortgage, indenture of trust or contract;
(3) To require such district by civil action to account as if it were the trustee of an express trust for such bondholder;
(4) To enjoin by civil action any act or things which may be unlawful or a violation of the rights of such bondholder; and
(5) To obtain by civil action or proceeding in any court of competent jurisdiction in the event of the default by the district in the payment when due of his or their bond or bonds or interest thereon, which default shall have continued for a period in excess of 60 days, or default in the performance of any other covenants or obligations of the district, which default shall have continued for a period of 60 days after notice to cure such default, the appointment of a receiver for the gas system or systems of the district, which receiver may enter and take possession of such system or systems or any part or parts thereof, including all property, land, property rights, easements, franchises, books, records, papers, accounts and other adjuncts of the system or systems of the district and may operate and maintain such gas system or systems, fix and collect all rates and charges and receive all revenues thereafter arising therefrom in the same manner as such district itself might do and shall deposit all moneys in a separate account or accounts and apply the same in accordance with the obligations of such district and as the court shall direct.
*(Acts 1951, No. 762, p. 1319, §13.)*
##### **§ 11-50-411** Disposition of Net Profits of District; “Net Income” Defined; Distribution of Less Than Net Income for Fiscal Year; Availability for Payment in Future Fiscal Years {#sec-11-50-411 omnilex-key=us-al-statutes--title-11--11-50-411}
All the net income of the gas transmission system or systems, for each fiscal year, of a gas district incorporated under this article shall, unless otherwise provided in the certificate of incorporation of such district, be divided, within a reasonable time after the close of each fiscal year, among its member municipalities in proportion to the amount of gas sold to or within each such municipality.
All the net income of each gas distribution system, for each fiscal year, of any such district shall, unless otherwise provided in its certificate of incorporation, be distributed and paid, within a reasonable time after the close of each fiscal year, to the municipality or municipalities within which such distribution system is located.
The term “net income” as used in the preceding two paragraphs of this section shall mean, with respect to the system or systems and for the fiscal year in question, the net income thereof computed in accordance with generally accepted accounting principles plus depreciation and amortization less the sum of the following:
If any gas district incorporated under the provisions of this article provides, in its certificate of incorporation, for the disposition of the net income of all its gas transmission and distribution systems in the same manner, it may, for purposes of such disposition, compute net income for all its gas transmission and distribution systems as a unit rather than separately; and, in any such case, such certificate of incorporation may provide for and authorize the distribution and payment, in the discretion of the board of directors of any such gas district, of an amount less than the net income of all such systems for any fiscal year, in which event (A) that portion of such net income for any such fiscal year not so distributed and paid shall be available for distribution and payment in future fiscal years as and to the extent provided in such certificate of incorporation, and (B) such certificate of incorporation may also specify that such provision and authorization shall operate both prospectively and retrospectively, so as to ratify and confirm (i) any prior distributions and payments of amounts less the net income of all such systems for any prior fiscal year, and (ii) the availability (for distribution and payment in future fiscal years) of any portion thereof not so distributed and paid.
*(Acts 1951, No. 762, p. 1319, §15; Acts 1983, No. 83-613, p. 950; Acts 1989, No. 89-705, p. 1410, §1.)*
##### **§ 11-50-412** Taxation - Exemption of Property, Income, Bonds, Etc., of District Generally {#sec-11-50-412 omnilex-key=us-al-statutes--title-11--11-50-412}
All property and all income of any district incorporated under this article and any such district itself shall be exempt from all state, county, municipal and other taxation in the State of Alabama, including, without limitation, privilege and license taxation. All bonds of such district and the interest thereon shall be exempt from all state, county, municipal and other taxation in the State of Alabama. All deeds, mortgages, indentures of trust and other documents executed by or delivered to any such district shall be exempt from all state, county and municipal and other taxation in the State of Alabama; provided, that these exemptions shall not be retroactive in effect and shall not affect any taxes currently in existence nor any tax previously assessed whether collected or not; provided further, that as of September 1, 1965, the provisions of this section shall not affect or be applicable to any existing contracts, bonds, supporting taxes or existing exemptions, nor shall it affect or be applicable to the refunding of any gas district corporations incorporated of a debt existing on September 1, 1965, taxes or tax assessments and any municipality or county may continue in the future to levy and collect any tax now levied, the passage of this section notwithstanding.
*(Acts 1951, No. 762, p. 1319, §16; Acts 1965, No. 694, p. 1286, §3.)*
##### **§ 11-50-413** Taxation - Levy and Collection of Privilege License Tax by Certain Municipalities {#sec-11-50-413 omnilex-key=us-al-statutes--title-11--11-50-413}
(a) The term “taxpaying gas district” as used in this section means any gas district organized under the provisions of this article that has, during any one calendar year, paid to at least one half of its member municipalities license taxes, including interest and penalties, in an aggregate amount in the case of each such municipality at least equal to two percent of the gross receipts from business done by such district in such municipality during the eight calendar years next preceding the calendar year during which such taxes were paid.
(b) Any provision of law including, without limitation, Section 11-50-412, as amended, to the contrary notwithstanding, any municipality in this state that is a member of a taxpaying gas district may levy and collect for the calendar year next succeeding that during which the aggregate taxes referred to in subsection (a) of this section were paid, a privilege license tax on such taxpaying gas district in an amount not to exceed the sum of:
(1) The amount by which
a. Two percent of the gross receipts of such taxpaying gas district from business done in such municipality during the eight calendar year period referred to in subsection (a) of this section exceeds
b. The total amount of license taxes, including interest and penalties, theretofore collected by such municipality from such taxpaying gas district with respect to such eight calendar year period, plus
(2) Ten percent of the amount obtained as a result of the application of subdivision (1) of this subsection.
(c) The provisions of subsection (b) of this section to the contrary notwithstanding, no municipality that is a member of a taxpaying gas district may levy or collect any such privilege license tax upon such district if it had theretofore collected from such district, during the aforesaid eight calendar year period, rentals aggregating as much as two percent of the gross receipts from business done by such district in such municipality during such eight calendar year period.
*(Acts 1967, Ex. Sess., No. 173, p. 222.)*
##### **§ 11-50-414** Validation of Proceedings to Incorporate Gas Districts {#sec-11-50-414 omnilex-key=us-al-statutes--title-11--11-50-414}
All acts or proceedings heretofore done or taken for the purpose of incorporating any gas district under the provisions of this article are hereby validated and declared legal, notwithstanding that the resolution adopted by the governing body of any municipality which is a member of such gas district authorizing its mayor to proceed with the organization and incorporation of such gas district in purported compliance with Section 11-50-391 does not set forth a brief description of the gas system or systems to be owned and operated by such gas district or fails to comply in other respects with the provisions of said Section 11-50-391, notwithstanding failure to publish any resolution and notwithstanding that the objects for which such gas district is organized as stated in the certificate of incorporation of such gas district, filed in the office of the judge of probate of the county in which the principal office of such gas district is located, include objects or purposes which are not authorized by said article; provided, that such gas district shall not have or exercise any power which is not conferred upon said district by said article or by any act amendatory thereof or supplemental thereto heretofore or hereafter adopted or by this section.
*(Acts 1955, No. 559, p. 1221.)*
##### **§ 11-50-415** Exemption from Usury and Interest Statutes {#sec-11-50-415 omnilex-key=us-al-statutes--title-11--11-50-415}
Each gas district now or hereafter organized under the provisions of this article is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8 of this Code.
*(Acts 1975, No. 1128, §1.)*
##### **§ 11-50-416** Purpose of Article; Proceedings, Notices, Etc., Required by Article for Incorporation, Etc., Exclusive; Exemption of Districts from Jurisdiction and Regulation of State Public Service Commission {#sec-11-50-416 omnilex-key=us-al-statutes--title-11--11-50-416}
(a) This article is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions.
(b) Except as in this article expressly otherwise provided, no proceeding, notice or approval shall be required for the incorporation of any gas district or the amendment of its articles of incorporation, the acquisition of any property or system or systems or the making of any loans or the issuance of any bonds or instruments in evidence thereof or as security therefor, any other law to the contrary notwithstanding.
(c) Every district incorporated under this article and every gas system of such district and the rates and charges thereof shall be exempt from all jurisdiction of and all regulation and supervision by the Alabama Public Service Commission.
*(Acts 1951, No. 762, p. 1319, §18.)*
##### **§ 11-50-417** Provisions of Article Exclusive {#sec-11-50-417 omnilex-key=us-al-statutes--title-11--11-50-417}
Any district incorporated under this article insofar as the subject matter of this article is concerned shall be governed exclusively by the provisions of this article.
*(Acts 1951, No. 762, p. 1319, §20.)*
#### **Article 13** Waterworks Utility Boards
##### **§ 11-50-430** Creation; Composition {#sec-11-50-430 omnilex-key=us-al-statutes--title-11--11-50-430}
Any municipality in the State of Alabama is hereby authorized within its discretion to create and establish, by ordinance, a municipal waterworks utility board for such municipality to be composed of three members.
*(Acts 1953, No. 860, p. 1152, §1.)*
##### **§ 11-50-431** Members of Board - Qualifications {#sec-11-50-431 omnilex-key=us-al-statutes--title-11--11-50-431}
No person shall be eligible for membership on said board who is not a qualified elector of such municipality or who is an officer of the municipality or an employee thereof or who is a member of the governing body or whose term on the governing body expired within six months prior to his election to the board.
*(Acts 1953, No. 860, p. 1152, §3.)*
##### **§ 11-50-432** Members of Board - Election and Terms of Office; Vacancies {#sec-11-50-432 omnilex-key=us-al-statutes--title-11--11-50-432}
The governing body of such municipality shall elect the members of the board. Immediately upon the creation and establishment of the board, the governing body of such municipality shall proceed to elect one member to serve until July 1 of the next ensuing year and until his successor is elected and qualified, one member to serve until July 1 of the second ensuing year and until his successor is elected and qualified and one member to serve until July 1 of the third ensuing year and until his successor is elected and qualified.
At the first regular meeting of the governing body of such municipality in the month of June of each year, the said governing body shall elect a successor of the member of the board whose term expires on July 1 following, and the person so elected shall become a member of the board on July 1 following and shall hold such position for a period of three years and until his successor is elected and qualified. Should such governing body fail to elect a member at its first meeting in the month of June, it shall do so at any succeeding regular meeting of such governing body. A member of the board may succeed himself if the governing body of such municipality desires to reelect him.
Whenever a vacancy occurs in the membership of the board by resignation, death or any other cause, the governing body of such municipality shall immediately fill said vacancy by electing another person to membership on the board who shall serve for the remainder of the unexpired term of the member he succeeds and until his successor is elected and qualified.
*(Acts 1953, No. 860, p. 1152, §2.)*
##### **§ 11-50-433** Members of Board - Oath of Office {#sec-11-50-433 omnilex-key=us-al-statutes--title-11--11-50-433}
Before entering upon the duties of his office, each member of the board shall take and subscribe the following oath: “I do solemnly swear that I will support the Constitution of the State of Alabama, and the Constitution of the United States, and that I will faithfully, zealously and impartially discharge the duties of the office upon which I am about to enter, without fear or favor, for the public welfare, so help me God.” The successors to the members of the board named in this article shall take and subscribe the same oath.
*(Acts 1953, No. 860, p. 1152, §4.)*
##### **§ 11-50-434** Members of Board - Impeachment and Removal {#sec-11-50-434 omnilex-key=us-al-statutes--title-11--11-50-434}
Members of the board may be removed from office in the manner and on the same grounds provided by the general law of this state for the impeachment and removal of officers as set out in Section 175 of the Constitution of Alabama.
*(Acts 1953, No. 860, p. 1152, §10.)*
##### **§ 11-50-435** Members of Board - Compensation {#sec-11-50-435 omnilex-key=us-al-statutes--title-11--11-50-435}
Each member of the board shall receive for his services such compensation as authorized by the governing body of such municipality. The compensation to the members of the board shall be paid in monthly installments from the money received from the operation of the municipal waterworks plant and waterworks system.
*(Acts 1953, No. 860, p. 1152, §6.)*
##### **§ 11-50-436** Officers {#sec-11-50-436 omnilex-key=us-al-statutes--title-11--11-50-436}
At the first meeting of the board, the members shall elect one of their number as chairman and one of their number as secretary. Thereafter the board shall annually elect from among their number a chairman and a secretary. Vacancies in the offices of chairman and secretary shall be filled by the board if and when the same may occur.
*(Acts 1953, No. 860, p. 1152, §5.)*
##### **§ 11-50-437** Meetings {#sec-11-50-437 omnilex-key=us-al-statutes--title-11--11-50-437}
The board shall hold regular monthly meetings on the second Tuesday of each month and other meetings at such times and places as its members may elect, and the chairman of the board or any two members may call a meeting at any time he or they consider that the business demands that a meeting be held. The chairman and one member or any two members of the board shall constitute a quorum.
A true record of all the proceedings of all meetings of the board shall be kept by the secretary. At the call of any member the vote on any pending question shall be taken by ayes and nayes and the same shall be entered on the record. The record of the proceedings of said board shall be open to any member of the governing body and to the public at all times and a copy from said record, certified by the secretary, shall be competent evidence in all courts.
*(Acts 1953, No. 860, p. 1152, §7.)*
##### **§ 11-50-438** Official Bonds of Certain Officers and Employees {#sec-11-50-438 omnilex-key=us-al-statutes--title-11--11-50-438}
All officers or employees of the board handling money or exercising authority over property of the municipality shall, before entering upon the discharge of their duties, give bond with some surety company authorized to do business in the State of Alabama, as surety, and payable to the municipality, to be approved by the board, in such penalty as the board may prescribe, conditioned for the faithful discharge of the duties of their offices or employment and faithfully to account for all moneys received or property coming into their possession in the capacity of their employment.
*(Acts 1953, No. 860, p. 1152, §9.)*
##### **§ 11-50-439** Powers and Duties of Board Generally {#sec-11-50-439 omnilex-key=us-al-statutes--title-11--11-50-439}
The board shall have complete control of the municipal waterworks plant and waterworks system of such municipality and shall have authority to employ, upon terms to be fixed by the board but in no event for a term exceeding one year, and to discharge with or without cause, managers, cashiers, clerks, stenographers, attorneys, plumbers, repairmen, laborers, and such other employees as are necessary for the operation of such municipal waterworks plant and waterworks system; except, that in those municipalities where public employees are governed by a citywide civil service or merit system act all of such managers, cashiers, clerks, stenographers, plumbers, repairmen, laborers, and such other employees as are necessary for the operation of such waterworks plant and waterworks system shall in all respects, both as to selection, employment, discharge, tenure of office, or employment and as to pay, promotion, demotion, and all other respects covered by said civil service or merit system act be governed and controlled by said civil service or merit system act, anything in this article to the contrary notwithstanding. It shall have the power and authority and it shall be its duty to charge for and collect all accounts due for any service which the municipal waterworks plant and waterworks system may furnish to its customers upon rates to be provided and approved by the governing body of such municipality. The board shall have the right to delegate to any manager which it may employ the authority to employ and discharge employees which may be needed, to direct their work and to manage, control, and operate the municipal waterworks plant and waterworks system and to account to the board for his acts in so doing, but his authority shall be restricted as the authority of the board is restricted in this article.
*(Acts 1953, No. 860, p. 1152, §8.)*
##### **§ 11-50-440** Appointment of Accountant, Etc., to Make Annual Examination and Report of Books and Accounts {#sec-11-50-440 omnilex-key=us-al-statutes--title-11--11-50-440}
The board shall at least once a year appoint an expert accountant or firm of accountants who shall make an examination in detail of all books and accounts of the board to cover the period since the preceding examination and make a full report in writing, under oath, to the board of its findings at the board’s first meeting after completion of such report, a copy of which shall also be furnished the governing body of the municipality, and the same shall be spread upon the minutes of the board. The same person or firm shall not be appointed or authorized to make such examination twice in succession. For this service said accountants shall be paid such reasonable and proper sum as may be agreed upon.
*(Acts 1953, No. 860, p. 1152, §11.)*
##### **§ 11-50-441** Annual Report to Municipal Governing Body {#sec-11-50-441 omnilex-key=us-al-statutes--title-11--11-50-441}
Said board shall make an annual report to the governing body of the municipality, showing in detail the receipts and expenditures for its preceding fiscal year, the physical condition of the property under the care of said board and any other matters of public interest connected with said board.
*(Acts 1953, No. 860, p. 1152, §12.)*
##### **§ 11-50-442** Expenditures for New Construction, Additions, Etc., to Waterworks Plant and System, Etc {#sec-11-50-442 omnilex-key=us-al-statutes--title-11--11-50-442}
No expenditures for any new construction, additions, or replacements to the municipal waterworks plant and waterworks system or the equipment used by the same shall be made by the board where the total expense will be more than $5,000.00 without the consent and approval of the governing body of the municipality.
*(Acts 1953, No. 860, p. 1152, §13.)*
##### **§ 11-50-443** Maintenance and Disbursement of Funds of Board Generally {#sec-11-50-443 omnilex-key=us-al-statutes--title-11--11-50-443}
All funds of said board shall be kept separate from the other funds of the municipality and in the municipal depositories, and the same shall be withdrawn only in such sums and at such times as the same shall be actually required for the expenditures authorized by law and only upon warrants signed by an employee of the municipal waterworks plant and waterworks system designated by the board and countersigned by a member of the board designated by the board and issued for claims that have been audited and ordered paid by said board and for salaries due board members and employees for work performed and services rendered.
*(Acts 1953, No. 860, p. 1152, §14.)*
##### **§ 11-50-444** Disposition of Moneys Received from Operation of Waterworks Plant and System {#sec-11-50-444 omnilex-key=us-al-statutes--title-11--11-50-444}
All money collected from the sale of water or received in any way from the use of the municipal waterworks plant and waterworks system shall be deposited in the municipal depositories and shall be distributed by the board as required by the governing body of the municipality.
*(Acts 1953, No. 860, p. 1152, §15.)*
##### **§ 11-50-445** Fixing of Bonds Required from Depositories {#sec-11-50-445 omnilex-key=us-al-statutes--title-11--11-50-445}
*[Repealed]*
Repealed by Act 2000-748, p. 1669, §3, effective January 1, 2001.
*(Acts 1953, No. 860, p. 1152, §16.)*
#### **Article 14** Gas Utility Boards
##### **§ 11-50-460** Creation; Composition {#sec-11-50-460 omnilex-key=us-al-statutes--title-11--11-50-460}
Any municipality in the State of Alabama is hereby authorized within its discretion to create and establish by ordinance a municipal gas utility board for such municipality, to be composed of three members.
*(Acts 1953, No. 861, p. 1157, §1.)*
##### **§ 11-50-461** Members of Board - Qualifications {#sec-11-50-461 omnilex-key=us-al-statutes--title-11--11-50-461}
No person shall be eligible for membership on said board who is not a qualified elector of such municipality or who is an officer of the municipality or an employee thereof or who is a member of the governing body or whose term on the governing body expired within six months prior to his election to the board.
*(Acts 1953, No. 861, p. 1157, §3.)*
##### **§ 11-50-462** Members of Board - Election and Terms of Office; Vacancies {#sec-11-50-462 omnilex-key=us-al-statutes--title-11--11-50-462}
The governing body of such municipality shall elect the members of the board. Immediately upon the creation and establishment of the board, the governing body of such municipality shall proceed to elect one member to serve until July 1 of the next ensuing year and until his successor is elected and qualified, one member to serve until July 1 of the second ensuing year and until his successor is elected and qualified and one member to serve until July 1 of the third ensuing year and until his successor is elected and qualified.
At the first regular meeting of the governing body of such municipality in the month of June of each year, the said governing body shall elect a successor of the member of the board whose term expires on July 1 following, and the person so elected shall become a member of the board on July 1 following and shall hold such position for a period of three years and until his successor is elected and qualified. Should such governing body fail to elect a member at its first meeting in the month of June, it shall do so at any succeeding regular meeting of such governing body. A member of the board may succeed himself if the governing body of such municipality desires to reelect him.
Whenever a vacancy occurs in the membership of the board by resignation, death, or any other cause, the governing body of such municipality shall immediately fill said vacancy by electing another person to membership on the board, who shall serve for the remainder of the unexpired term of the member he succeeds and until his successor is elected and qualified.
*(Acts 1953, No. 861, p. 1157, §2.)*
##### **§ 11-50-463** Members of Board - Oath of Office {#sec-11-50-463 omnilex-key=us-al-statutes--title-11--11-50-463}
Before entering upon the duties of his office, each member of the board shall take and subscribe the following oath: “I do solemnly swear that I will support the Constitution of the State of Alabama, and the Constitution of the United States, and that I will faithfully, zealously, and impartially discharge the duties of the office upon which I am about to enter, without fear or favor, for the public welfare, so help me God.” The successors to the members of the board named in this article shall take and subscribe the same oath.
*(Acts 1953, No. 861, p. 1157, §4.)*
##### **§ 11-50-464** Members of Board - Impeachment and Removal {#sec-11-50-464 omnilex-key=us-al-statutes--title-11--11-50-464}
Members of the board may be removed from office in the manner and on the same grounds provided by the general law of this state for the impeachment and removal of officers, as set out in Section 175 of the Constitution of Alabama.
*(Acts 1953, No. 861, p. 1157, §10.)*
##### **§ 11-50-465** Members of Board - Compensation {#sec-11-50-465 omnilex-key=us-al-statutes--title-11--11-50-465}
Each member of the board shall receive for his services such compensation as authorized by the governing body of such municipality. The compensation to the members of the board shall be paid in monthly installments from the money received from the operation of the municipal gas distribution system.
*(Acts 1953, No. 861, p. 1157, §6.)*
##### **§ 11-50-466** Officers {#sec-11-50-466 omnilex-key=us-al-statutes--title-11--11-50-466}
At the first meeting of the board, the members shall elect one of their number as chairman and one of their number as secretary. Thereafter the board shall annually elect from among their number a chairman and a secretary. Vacancies in the offices of chairman and secretary shall be filled by the board if and when the same may occur.
*(Acts 1953, No. 861, p. 1157, §5.)*
##### **§ 11-50-467** Meetings {#sec-11-50-467 omnilex-key=us-al-statutes--title-11--11-50-467}
The board shall hold regular monthly meetings on the second Tuesday of each month and other meetings at such times and places as its members may elect, and the chairman of the board or any two members may call a meeting at any time he or they consider that the business demands that a meeting be held. The chairman and one member or any two members of the board shall constitute a quorum.
A true record of all the proceedings of all meetings of the board shall be kept by the secretary. At the call of any member the vote on any pending question shall be taken by ayes and nayes, and the same shall be entered on the record. The record of the proceedings of said board shall be open to any member of the governing body and to the public at all times, and a copy from said record, certified by the secretary, shall be competent evidence in all courts.
*(Acts 1953, No. 861, p. 1157, §7.)*
##### **§ 11-50-468** Official Bonds of Certain Officers and Employees {#sec-11-50-468 omnilex-key=us-al-statutes--title-11--11-50-468}
All officers or employees of the board handling money or exercising authority over property of the municipality shall, before entering upon the discharge of their duties, give bond with some surety company authorized to do business in the State of Alabama, as surety, and payable to the municipality, to be approved by the board, in such penalty as the board may prescribe, conditioned for the faithful discharge of the duties of their offices or employment and faithfully to account for all moneys received or property coming into their possession in the capacity of their employment.
*(Acts 1953, No. 861, p. 1157, §9.)*
##### **§ 11-50-469** Powers and Duties of Board Generally {#sec-11-50-469 omnilex-key=us-al-statutes--title-11--11-50-469}
The board shall have complete control of the municipal gas distribution system of such municipality and shall have authority to employ, upon terms to be fixed by the board, but in no event for a term exceeding one year, and to discharge, with or without cause, managers, cashiers, clerks, stenographers, attorneys, plumbers, gas fitters, repairmen, laborers, and such other employees as are necessary for the operation of such municipal gas distribution system, except that in those municipalities where public employees are governed by a citywide civil service or merit system act all of such managers, cashiers, clerks, stenographers, plumbers, gas fitters, repairmen, laborers, and such other employees as are necessary for the operation of such system shall in all respects, both as to selection, employment, discharge, tenure of office, or employment and as to pay, promotion, demotion, and all other respects covered by said civil service or merit system act, be governed and controlled by said civil service or merit system act, anything in this article to the contrary notwithstanding. It shall have the power and authority and it shall be its duty to charge for and collect all accounts due for any service which the municipal gas distribution system may furnish to its customers upon rates to be provided and approved by the governing body of such municipality. The board shall have the right to delegate to any manager which it may employ the authority to employ and discharge employees which may be needed, to direct their work and to manage, control, and operate the municipal gas distribution system, and to account to the board for his acts in so doing, but his authority shall be restricted as the authority of the board is restricted in this article.
*(Acts 1953, No. 861, p. 1157, §8.)*
##### **§ 11-50-470** Appointment of Accountant, Etc., to Make Annual Examination and Report of Books and Accounts {#sec-11-50-470 omnilex-key=us-al-statutes--title-11--11-50-470}
The board shall at least once a year appoint an expert accountant or firm of accountants who shall make an examination in detail of all books and accounts of the board to cover the period since the preceding examination and make a full report in writing, under oath, to the board of its findings at the board’s first meeting after completion of such report, a copy of which shall also be furnished the governing body of the municipality, and the same shall be spread upon the minutes of the board. The same person or firm shall not be appointed or authorized to make such examination twice in succession. For this service said accountant shall be paid such reasonable and proper sum as may be agreed upon.
*(Acts 1953, No. 861, p. 1157, §11.)*
##### **§ 11-50-471** Annual Report to Municipal Governing Body {#sec-11-50-471 omnilex-key=us-al-statutes--title-11--11-50-471}
Said board shall make an annual report to the governing body of the municipality, showing in detail the receipts and expenditures for its preceding fiscal year, the physical condition of the property under the care of said board, and any other matters of public interest connected with said board.
*(Acts 1953, No. 861, p. 1157, §12.)*
##### **§ 11-50-472** Expenditures for New Construction, Additions, Etc., to Gas Distribution System, Etc {#sec-11-50-472 omnilex-key=us-al-statutes--title-11--11-50-472}
No expenditures for any new construction, additions, or replacements to the municipal gas distribution system or the equipment used by the same shall be made by the board where the total expense will be more than $5,000.00 without the consent and approval of the governing body of the municipality.
*(Acts 1953, No. 861, p. 1157, §13.)*
##### **§ 11-50-473** Maintenance and Disbursement of Funds of Board Generally {#sec-11-50-473 omnilex-key=us-al-statutes--title-11--11-50-473}
All funds of said board shall be kept separate from the other funds of the municipality and in the municipal depositories, and the same shall be withdrawn only in such sums and at such times as the same shall be actually required for the expenditures authorized by law and only upon warrants signed by an employee of the municipal gas system designated by the board and countersigned by a member of the board designated by the board and issued for claims that have been audited and ordered paid by said board and for salaries due board members and employees for work performed and services rendered.
*(Acts 1953, No. 861, p. 1157, §14.)*
##### **§ 11-50-474** Disposition of Moneys Received from Operation of Gas Distribution System {#sec-11-50-474 omnilex-key=us-al-statutes--title-11--11-50-474}
All money collected from the sale of gas or received in any way from the use of municipal gas or received in any way from the use of the municipal gas distribution system shall be deposited in the municipal depositories and shall be distributed by the board as required by the governing body of the municipality.
*(Acts 1953, No. 861, p. 1157, §15.)*
##### **§ 11-50-475** Fixing of Bonds Required from Depositories {#sec-11-50-475 omnilex-key=us-al-statutes--title-11--11-50-475}
*[Repealed]*
Repealed by Act 2000-748, p. 1669, §3, effective January 1, 2001.
*(Acts 1953, No. 861, p. 1157, §16.)*
#### **Article 15** Electric Utility Boards
##### **§ 11-50-490** Creation {#sec-11-50-490 omnilex-key=us-al-statutes--title-11--11-50-490}
Any municipality in the State of Alabama is authorized within its discretion to create and establish, by ordinance, a municipal electric utility board for such municipality, to be composed of three members.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §60.)*
##### **§ 11-50-491** Qualifications of Members {#sec-11-50-491 omnilex-key=us-al-statutes--title-11--11-50-491}
No person shall be eligible for membership on said board who is not a qualified elector of such municipality, or who is an officer of the municipality or an employee thereof, or who is a member of the governing body or whose term on the governing body expired within six months prior to his election on the board.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §62.)*
##### **§ 11-50-492** Election of Members; Filling of Vacancies {#sec-11-50-492 omnilex-key=us-al-statutes--title-11--11-50-492}
The governing body of such municipality shall elect the members of the board. Immediately upon the creation and establishment of the board, the governing body of such municipality shall proceed to elect one member to serve until July 1 of the next ensuing year and until his successor is elected and qualified; one member to serve until July 1 of the second ensuing year and until his successor is elected and qualified; and one member to serve until July 1 of the third ensuing year and until his successor is elected and qualified. At the first regular meeting of the governing body of such municipality in the month of June of each year, the said governing body shall elect a successor of the member of the board whose term expires on July 1 following, and the person so elected shall become a member of the board on July 1 following and shall hold such position for a period of three years and until his successor is elected and qualified. Should such governing body fail to elect a member at its first meeting in the month of June, it shall do so at any succeeding regular meeting of such governing body. A member of the board may succeed himself, if the governing body of such municipality desires to reelect him. Whenever a vacancy occurs in the membership of the board by resignation, death, or any other cause, the governing body of such municipality shall immediately fill said vacancy by electing another person to membership on the board, who shall serve for the remainder of the unexpired term of the member he succeeds and until his successor is elected and qualified.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §61.)*
##### **§ 11-50-493** Oath {#sec-11-50-493 omnilex-key=us-al-statutes--title-11--11-50-493}
Before entering upon the duties of his office, each member of the board shall take and subscribe the following oath: “I do solemnly swear that I will support the Constitution of the State of Alabama and the Constitution of the United States and that I will faithfully, zealously, and impartially discharge the duties of the office upon which I am about to enter, without fear or favor, for the public welfare, so help me God.” The successors to the members of the board named in this chapter shall take and subscribe the same oath.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §63.)*
##### **§ 11-50-494** Chairman; Secretary {#sec-11-50-494 omnilex-key=us-al-statutes--title-11--11-50-494}
At the first meeting of the board, the members shall elect one of their number as chairman and one of their number as secretary; thereafter, the board shall annually elect from among their number a chairman and a secretary. Vacancies in the offices of chairman and secretary shall be filled by the board, if and when the same may occur.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §64.)*
##### **§ 11-50-495** Compensation {#sec-11-50-495 omnilex-key=us-al-statutes--title-11--11-50-495}
Each member of the board shall receive for his services such compensation as authorized by the governing body of such municipality. The compensation to the members of the board shall be paid in monthly installments from the money received from the operation of the municipal electric distribution system.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §65.)*
##### **§ 11-50-496** Meetings; Record of Proceedings {#sec-11-50-496 omnilex-key=us-al-statutes--title-11--11-50-496}
The board shall hold regular monthly meetings on the second Tuesday of each month and other meetings at such times and places as its members may elect, and the chairman of the board or any two members may call a meeting at any time he or they consider that the business demands that a meeting be held. The chairman and one member or any two members of the board shall constitute a quorum. A true record of all the proceedings of all meetings of the board shall be kept by the secretary. At the call of any member, the vote on any pending question shall be taken by ayes and nayes, and the same shall be entered on the record. The record of the proceedings of said board shall be open to any member of the governing body and to the public at all times, and a copy from said record, certified by the secretary, shall be competent evidence in all courts.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §66.)*
##### **§ 11-50-497** Powers and Duties Generally {#sec-11-50-497 omnilex-key=us-al-statutes--title-11--11-50-497}
The board shall have complete control of the municipal electric distribution system of such municipality and shall have authority to employ, upon terms to be fixed by the board, but in no event for a term exceeding one year, and to discharge with or without cause, managers, cashiers, clerks, stenographers, attorneys, linemen, repairmen, laborers, and such other employees as are necessary for the operation of such municipal electric distribution system, except that in those cities where public employees are governed by a citywide civil service or merit system all of such managers, cashiers, clerks, stenographers, linemen, repairmen, laborers, and such other employees as are necessary for the operation of such system shall in all respects, both as to selection, employment, discharge, tenure of office, or employment and as to pay, promotion, demotion, and in all other respects covered by said civil service or merit system, be governed and controlled by said civil service or merit system, anything in this chapter to the contrary notwithstanding. It shall have the power and authority and it shall be its duty to charge for and collect all accounts due for any service which the municipal electric distribution system may furnish to its customers, upon rates to be provided and approved by the governing body of such municipality. The board shall have the right to delegate to any manager which it may employ the authority to employ and discharge employees which may be needed; to direct their work and to manage, control, and operate the municipal electric distribution system and to account to the board for his acts in so doing, but his authority shall be restricted as the authority of the board is restricted in this chapter.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §67.)*
##### **§ 11-50-498** Impeachment and Removal {#sec-11-50-498 omnilex-key=us-al-statutes--title-11--11-50-498}
Members of the board may be removed from office in the manner and on the same grounds provided by the general law of this state for the impeachment and removal of officers, as set out in Section 175 of the Constitution of Alabama.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §69.)*
##### **§ 11-50-499** Bonds of Officers and Employees {#sec-11-50-499 omnilex-key=us-al-statutes--title-11--11-50-499}
All officers or employees of the board handling money or exercising authority over property of the municipality shall, before entering upon the discharge of their duties, give bond with some surety company authorized to do business in the State of Alabama, as surety and payable to the municipality, to be approved by the board, in such penalty as the board may prescribe, conditioned for the faithful discharge of the duties of his office or employment, and faithfully to account for all moneys received or property coming into his possession in the capacity of his employment.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §68.)*
##### **§ 11-50-500** Examination of Books and Accounts {#sec-11-50-500 omnilex-key=us-al-statutes--title-11--11-50-500}
The board shall at least once a year appoint an expert accountant or firm of accountants who shall make an examination in detail of all books and accounts of the board to cover the period since the preceding examination and make a full report in writing, under oath, to the board of its findings at the board’s first meeting after completion of such report, a copy shall also be furnished the governing body of the municipality, and the same shall be spread upon the minutes of the board, but the same person or firm shall not be appointed or authorized to make such examination twice in succession. For this service said accountant shall be paid such reasonable and proper sum as may be agreed upon.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §70.)*
##### **§ 11-50-501** Annual Report {#sec-11-50-501 omnilex-key=us-al-statutes--title-11--11-50-501}
Said board shall make an annual report to the governing body of the municipality, showing in detail the receipts and expenditures for its preceding fiscal year, the physical condition of the property under the care of said board, and any other matters of public interest connected with said board.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §71.)*
##### **§ 11-50-502** Expenditures for New Construction, Additions, or Replacements {#sec-11-50-502 omnilex-key=us-al-statutes--title-11--11-50-502}
No expenditures for any new construction, additions, or replacements to the municipal electric distribution system, or the equipment used by the same, shall be made by the board where the total expense will be more than $5,000.00 without the consent and approval of the governing body of the municipality.
This section shall not affect or repeal any local law now in effect.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §72; Acts 1947, No. 106, p. 33.)*
##### **§ 11-50-503** Segregation and Withdrawal of Funds {#sec-11-50-503 omnilex-key=us-al-statutes--title-11--11-50-503}
All funds of said board shall be kept separate from the other funds of the municipality and in the municipal depositories, and the same shall be withdrawn only in such sums and at such times as the same shall be actually required for the expenditures authorized by law and only upon warrants signed by an employee of the municipal electric system designated by the board, countersigned by a member of the board designated by the board, and issued for claims that have been audited and ordered paid by said board and for salaries due board members and employees for work performed and services rendered.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §73.)*
##### **§ 11-50-504** Deposit and Distribution of Money Received from Use of Electric System {#sec-11-50-504 omnilex-key=us-al-statutes--title-11--11-50-504}
All money collected from the sale of electric current or received in any way from the use of the municipal electric distribution system shall be deposited in the municipal depositories, which shall be qualified public depositories under Chapter 14A of Title 41, and shall be distributed by the board as required by the governing body of the municipality.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §74; Act 2000-748, p. 1669, §2.)*
##### **§ 11-50-505** Bond or Securities of Depository {#sec-11-50-505 omnilex-key=us-al-statutes--title-11--11-50-505}
*[Repealed]*
Repealed by Act 2000-748, p. 1669, §3, effective January 1, 2001.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §75.)*
##### **§ 11-50-506** Effect of Chapter on Existing Laws, Etc {#sec-11-50-506 omnilex-key=us-al-statutes--title-11--11-50-506}
The authority granted municipalities under the provisions of this chapter shall not be construed so as to repeal, restrict, modify, or otherwise limit any authority now conferred on any municipality by any existing general, local, or special law or to affect any such board created or existing by virtue of a local act.
*(Acts 1939, No. 463, p. 675; Code 1940, T. 18, §76.)*
#### **Article 16** District Electric Corporations
##### **§ 11-50-520** Definitions {#sec-11-50-520 omnilex-key=us-al-statutes--title-11--11-50-520}
The following words and phrases and others importing the same meaning, where used in this chapter, shall be given the following respective interpretations and meanings:
(1) THE CORPORATION. Any corporation organized under this chapter.
(2) APPLICANTS. Those persons who organize the corporation.
(3) POWER DISTRICT. The territory proposed to be served by the corporation as specified in its certificate of incorporation as originally filed or any amendment thereto made pursuant to the provisions of this chapter.
(4) MUNICIPALITY or MUNICIPALITIES. Any city or town incorporated under the laws of Alabama.
(5) COUNTY or COUNTIES. Any county organized under the laws of Alabama.
(6) GOVERNING BODY. Whenever used in relation to any municipality, the city or town council, city commission or the body or board, by whatsoever name known, having charge of the governing of a municipality, and shall be held to include the mayor or other chief executive officer of the municipality in any case where the concurrence or approval of such officer is required by the law governing such municipality for the adoption of any municipal resolution provided for in this chapter.
(7) CERTIFICATE OF INCORPORATION or CERTIFICATE. The certificate of incorporation of the corporation.
(8) BOARD. The board of directors of the corporation, as duly constituted and when acting as a board.
(9) DIRECTOR or DIRECTORS. The members of the board.
(10) UTILITY or UTILITIES. Any plant, works, system, facilities, or properties, together with all parts thereof and appurtenances thereto, including contract and franchise rights, used and useful primarily for the production, transmission, or distribution of electric energy.
(11) BONDS. Any bonds, notes, warrants, or other evidences of obligations issued by the corporation.
*(Acts 1943, No. 158, p. 142.)*
##### **§ 11-50-521** Authority to Incorporate {#sec-11-50-521 omnilex-key=us-al-statutes--title-11--11-50-521}
Any number of natural persons, not less than three and each of whom shall meet the requirements provided in this chapter, may organize a corporation not for pecuniary profit by proceeding according to the provisions of this chapter. Such corporation shall be organized for the benefit of the municipalities located within the confines of the power district and for the purpose of promoting and encouraging the fullest possible use of electric energy within the power district by making such electric energy available to the public within the power district at the lowest cost consistent with sound economy and prudent management of the business of the corporation. Each such person shall be an elector and property owner in one of the municipalities located within the territory proposed to be included in the power district upon organization of the corporation, and no two shall be from the same municipality. All or parts of not less than three counties shall be included in the power district upon organization of the corporation, and such counties must be so located that each of said counties shall be connected with one or more of the others thereof and so that the area within the power district shall constitute one body.
*(Acts 1943, No. 158, p. 142, §1.)*
##### **§ 11-50-522** Procedure for Incorporation {#sec-11-50-522 omnilex-key=us-al-statutes--title-11--11-50-522}
The corporation may be organized in the following manner: The applicants shall file an application with the governing body of each municipality located within the territory described in the application (which shall be the same territory as shall be described in the certificate of incorporation) seeking permission from each such municipality to organize the corporation. There shall be described generally in such application the boundaries of the territory proposed to be included in the power district upon organization of the corporation, but there shall not be included therein any territory served by an existing utility unless consent to the inclusion in the power district of the territory served by such existing utility shall be given by the owner of each such existing utility in such territory. If the governing body of each municipality in such territory shall, by appropriate resolution duly adopted, determine it to be advantageous that the corporation be formed and shall find that the applicants and the application meet the requirements hereinabove provided and shall further grant permission to the applicants to proceed with the organization of the corporation, then the applicants may thereafter execute a certificate of incorporation which shall set forth the following: The names of the applicants together with recitals stating the municipalities of their respective residences and that they are electors and property owners in the municipalities of their respective residences; a recital that the applicants desire to cause a corporation to be formed pursuant to the provisions of this chapter; a description of the power district and a recital that there is not any existing utility within the territory embraced therein or, if there is an existing utility in the power district, the name of each existing utility therein together with a recital that the original consent of the owner of each such utility to the inclusion in the power district of the territory served by such existing utility is attached as an exhibit to the certificate; the name of each municipality located within said territory; a recital that the governing body of each municipality located within the territory proposed to be served by the corporation has by appropriate resolution duly granted permission to organize the corporation; a recital that copies of such resolutions, duly certified by the clerks of the respective municipalities under their respective seals are attached as exhibits to the certificates; the name of the corporation; the location of the principal office of the corporation; and the period, if any, for the duration of the corporation. The certificate shall be sworn to by each applicant before an officer authorized by the laws of Alabama to take acknowledgments to deeds. The certificate shall be presented to the Secretary of State of Alabama who shall thereupon examine the same and, if he finds that the name proposed for the corporation is not identical with that of a person or other corporation in this state or so nearly similar thereto as to lead to confusion and uncertainty, and if he finds that the matters required in this section to be set out in the certificate are contained therein and the said exhibits are attached thereto, he shall receive and file the application and record it in an appropriate book of record in his office. The corporation shall thereupon be organized under the name stated in the certificate and shall constitute a public nonprofit corporation for the benefit of the municipalities located within the confines of such power district and for the purposes and with the powers and duties stated in this chapter.
*(Acts 1943, No. 158, p. 142, §2.)*
##### **§ 11-50-523** Amendment of Certificate of Incorporation {#sec-11-50-523 omnilex-key=us-al-statutes--title-11--11-50-523}
Whenever the board shall deem it desirable to amend the certificate, it may do so in the following manner: The board shall adopt a resolution declaring the proposed amendment to be desirable and specifying the matters of such amendment and providing for the filing with the Secretary of State of such amendment. In the event the proposed amendment provides for the addition of territory to be served by the corporation, the resolution shall describe generally the boundaries of such additional territory, which shall not include any territory served by an existing utility unless consent to the inclusion in the proposed amendment of the territory served by the existing utility shall be given by the owner of each utility in such additional territory. Following the adoption of such resolution, the officers of the corporation designated by the board for such purpose shall than execute a report of such amendment which shall set forth the following: The name of the corporation; a recital as to the original organization of the corporation and any prior amendments thereto; a recital as to the desire to amend the certificate and specifying the matters of such amendments; a recital that authorization for the filing of such report had been granted by a resolution of the board duly adopted and that a copy of such resolution, certified by the secretary of the corporation under its seal, is attached as an exhibit to such report; and, in the event the amendment proposes to add additional territory to the power district as then constituted, the boundaries of such additional territory shall be generally described with either a recital that there is no existing utility in such additional territory or a recital giving the name of the owner of each existing utility in such additional territory and stating that the original evidence of the consent of the owner of each such utility to the inclusion of such additional territory in the power district is attached as an exhibit to such report. The report of the amendment shall be sworn to by the persons executing the same in behalf of the corporation before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such report shall be presented to the Secretary of State of Alabama who shall thereupon examine the same and, if he finds that the matters required in this section to be set out in such report are contained therein and any exhibit therein referred to is attached thereto, he shall thereupon file such report and shall record it with the certificate, whereupon the certificate shall thereupon and thereby be amended as provided in such report.
*(Acts 1943, No. 158, p. 142, §3.)*
##### **§ 11-50-524** Corporate Powers {#sec-11-50-524 omnilex-key=us-al-statutes--title-11--11-50-524}
(a) The corporation shall be entitled to all the exemptions provided by the general laws of Alabama and of the United States for municipal corporations. To carry out its purposes, the corporation shall have the following specific powers, but no enumeration of powers granted in this chapter shall be construed to impair or limit any general grant of power contained in this chapter nor to limit any such grant to a power or powers of the same class or classes as those enumerated:
(1) To have succession by its corporate name perpetually unless dissolved and unless a shorter period of time shall be specified in the certificate;
(2) To sue and be sued and to prosecute and defend;
(3) To have and to use a corporate seal and to alter the same at will;
(4) To acquire by purchase or lease and to operate, maintain, extend, and improve any utility within the power district, including any real and personal properties and any contract and franchise rights in connection therewith, provided that it shall not do any such acts in any territory served by an existing utility without the consent of such existing utility;
(5) To acquire by purchase the entire stock of any private corporation owning and operating a utility within the power district, but only as a step in the acquisition of title to such utility, and any such private corporation shall be dissolved immediately upon acquisition of such stock by the corporation, and all properties and assets of such utility shall thereupon be conveyed to the corporation;
(6) To generate, purchase, sell, and deliver, at wholesale or retail, to any person, firm, or corporation, whether public or private, and to any government or governmental agency, within the power district, electric light and power service and any other service, commodity, or facility which may be produced or furnished in connection therewith;
(7) To exercise the power of eminent domain for the purpose of acquiring additional property so as to extend within the limits of the power district the lines of any utility owned by it, but not for the purpose of acquiring an existing utility or any part of an existing utility;
(8) To use and occupy any public highway, street, way, or place located within the power district which may be reasonably necessary to be used or occupied for the maintenance and operation of any utility or part thereof owned by the corporation, all without any franchise, consent, or permit except such as may be required by the Constitution of Alabama;
(9) To make and enter into contracts without restriction except as may be limited in this chapter or by the Constitution and laws of Alabama;
(10) To incur obligations and, as evidence of any such obligations, to issue its bonds;
(11) To refund any bonds issued by it;
(12) As security for the payment of the principal of and interest on any bonds issued by it, to pledge all or any part of its revenue and to execute mortgages and deeds of trust covering all or any part of its properties and its contract and franchise rights, including any and all after-acquired properties and rights, with such covenants and conditions contained therein as the board may deem advisable;
(13) To sell, lease, or exchange any part of its properties and the rights applicable thereto which shall not be essential to the continued operation of any utility operated by it; provided, that the consent thereto shall have been granted by the trustee under any mortgage or deed of trust covering the properties so sold, leased, or exchanged if such mortgage or deed of trust requires such consent;
(14) To sell, lease or exchange its properties and rights in part, provided that the consent thereto shall have been granted by the trustee under any mortgage or deed of trust covering the properties so sold, leased or exchanged if such mortgage or deed of trust requires such consent;
(15) To sell, lease, or exchange any of its properties and rights in part, provided that the consent thereto shall have been granted by the trustee under any mortgage or deed of trust covering the properties so sold, leased, or exchanged if such mortgage or deed of trust requires such consent, and consent thereto shall also have been granted by the governing body of each municipality within the limits of which or within the police jurisdiction of which any of the properties proposed to be sold, leased, or exchanged shall be located;
(16) To fix and collect rates and charges for any services rendered by or from any utility owned or operated by it as provided in this chapter;
(17) To employ officers, employees, and attorneys and to fix their compensation and duties, who shall hold office for such terms and on such conditions as the board may prescribe, but no officer or employee of the corporation shall be a director of the corporation or an elective officer of any municipality located within the power district; and
(18) To exercise all additional powers necessary or convenient to perform its functions and carry out the purposes of the corporation which are capable of being delegated by the Legislature.
(b) The corporation shall not be subject, either in its organization or in the exercise of any of its powers, to any jurisdiction by the Alabama Public Service Commission.
*(Acts 1943, No. 158, p. 142, §4.)*
##### **§ 11-50-525** Board of Directors {#sec-11-50-525 omnilex-key=us-al-statutes--title-11--11-50-525}
The government of the corporation shall be vested in the board, which may by resolution exercise or provide for the exercise of all the powers of the corporation. The board shall be composed of one director from each municipality located in the power district having a population of 1,000 or more inhabitants according to the last or any future federal census, whose election shall be certified to the corporation by the clerk of such municipality as hereinafter provided. The governing body of each such municipality having such population may elect a director from such municipality. The election of each such director shall be certified to the corporation by the clerk of the municipality whose governing body shall make such election, as and when any such election shall be so made. The directors so certified shall constitute the board, and a majority thereof at any time existing shall constitute a quorum of the board for the transaction of business. The directors shall elect a chairman from their number. The board may adopt all bylaws it may deem advisable respecting its organization and meetings and the management of the affairs of the corporation. Each director shall hold office for one year from the date of his election and thereafter until his successor shall be elected, and he may succeed himself, but he may be removed at any time without cause by the governing body by whom he was elected. Should any director die while serving as such, or should his term of office expire or should he resign or be removed therefrom, he shall be succeeded for his unexpired term by a successor elected by the governing body of the same municipality. Each director must be a resident of and an elector and property owner in the municipality by whose governing body he was elected, but no director shall be an elective officer of such municipality. Each director of the corporation shall receive compensation from the corporation for his services as director at the rate of $10.00 for each day he shall attend meetings of the board or for each day he shall be engaged upon business of the corporation, not to exceed in the aggregate the sum of $500.00 in any one year, and he shall also be entitled to be reimbursed for actual and necessary expenses incurred by him in the performance of his duties. All proceedings had and done by the board shall be transcribed by the secretary of the corporation and retained in a substantially bound book. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.
*(Acts 1943, No. 158, p. 142, §5.)*
##### **§ 11-50-526** Bonds - Sale or Issuance Generally {#sec-11-50-526 omnilex-key=us-al-statutes--title-11--11-50-526}
The corporation may issue bonds at any time and from time to time as the board may determine to be most advantageous for the purpose of paying the purchase price of and all expenses incurred in connection with the acquisition of any properties or other assets of the corporation and for the purpose of furnishing adequate working capital for the corporation. Such bonds shall be revenue bonds payable solely out of the revenues derived from the operation of all or any part of any utility owned by the corporation as may be provided at the time of the authorization of such bonds. All bonds shall be signed by such officer or officers as the board may direct, but the facsimile of any signature may be impressed on any interest coupons in lieu of the original signature. The bonds shall be in such form, whether registered or bearer, shall be in such denominations, shall bear such dates and have such maturities not exceeding 40 years from their respective dates, may be in one or more series, shall contain such provisions not inconsistent herewith, shall bear such rate or rates of interest payable and evidenced in such manner, shall be payable at such place or places and shall be subject to such terms of redemption with or without premium, all as may be provided by resolution of the board. The bonds shall be sold at public sale in such manner and at such price or prices and at such time or times and after such notice or notices as may be determined by the board to be most advantageous, provided that the interest cost to maturity of the money received for any issue of bonds so sold shall not exceed six percent per annum compounded semiannually; provided further, that the provisions of this sentence shall not apply to bonds payable within less than one year and limited to an aggregate principal amount not exceeding $5,000.00, which may be sold at private sale at such times and in such manner as may be determined by the board to be most advantageous. Any bonds issued and any obligations incurred by the corporation may be refunded either by sale of refunding bonds or by exchange of such refunding bonds for a like principal amount of the bonds and obligations proposed to be refunded thereby. Any such refunding may be effected either before or after the maturity of the bonds or obligations proposed to be refunded thereby. Pending the preparation or execution of definitive bonds, interim receipts or temporary bonds may be delivered to the purchaser thereof.
*(Acts 1943, No. 158, p. 142, §6.)*
##### **§ 11-50-527** Bonds - Consent of Department of Finance {#sec-11-50-527 omnilex-key=us-al-statutes--title-11--11-50-527}
No bonds of the corporation shall be issued until consent of such issuance shall have been given by the Department of Finance of the State of Alabama. Such consent shall be granted only after a public hearing and after a petition requesting such consent has been duly filed by the corporation with the director of said department more than five days prior to such public hearing. Such petition shall specify the plan or program of the corporation and the use to which it proposes to put the proceeds from such bonds, if they are to be sold, and shall specify the plan under which such bonds are to be issued if they are to be issued in exchange for outstanding bonds. Such petition shall furnish such other information as may be necessary fully to advise said department as to the purpose and description of and security for the bonds and as may be required by the rules of said department. Said department shall grant such consent only after it finds that the issuance of the bonds so proposed would serve some public need and would be in the public interest. It shall be unlawful for the corporation to use the proceeds of sale of any of the bonds contrary to the plans and purposes presented to said department in obtaining such consent. The corporation applying for such consent is authorized to pay such fees as shall be lawfully assessed against it by said department in connection with the granting of such petition.
*(Acts 1943, No. 158, p. 142, §7.)*
##### **§ 11-50-528** Bonds - Nature of Obligations {#sec-11-50-528 omnilex-key=us-al-statutes--title-11--11-50-528}
All bonds issued by the corporation and all interest coupons appertaining thereto shall possess all the qualities of negotiable instruments. All bonds issued by the corporation shall be issued in anticipation of its revenues and shall be payable solely out of such of its revenues as may be designated by the board and shall not create a debt of the corporation. None of the municipalities located in the power district shall at any time or in any manner be liable for any obligations or bonds of the corporation, nor shall the same be construed to be an indebtedness of or against any such municipality.
*(Acts 1943, No. 158, p. 142, §8.)*
##### **§ 11-50-529** Bonds - Rights and Remedies of Bondholders {#sec-11-50-529 omnilex-key=us-al-statutes--title-11--11-50-529}
In addition to all other remedies available under this chapter or by law, any holder of any bonds issued by the corporation, including the trustee under any mortgage or deed of trust executed as security therefor, shall have the right, subject to any contractual limitations and to the prior or superior rights of others:
(1) By mandamus or other suit, action or proceeding to enforce his rights against the corporation and the board and its officers, including the right to require the fixing and collection of uniform schedules of rates and charges adequate to carry out any agreement made by the corporation as to, or pledge of, the revenues of the corporation, and to require the corporation and the board and its officers to carry out any other agreements with the holders of such bonds and the trustee;
(2) By civil action to enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the bonds or of such trustee;
(3) By civil action to obtain the appointment of a receiver of the corporation and of any utility owned or operated by it or any part or parts thereof, which receiver shall have all the powers of a receiver, including the right to enter upon and take possession of all or any part of the property of the corporation, including all franchise and other rights in connection with any thereof, and to operate and maintain the same and, under the jurisdiction of such court, to fix and collect revenues arising therefrom in such manner as the corporation might itself do.
All moneys coming into the hands of the receiver shall be deposited in a separate account or accounts and applied in accordance with the orders of such court. No such mortgage shall be subject to foreclosure to the extent that the physical properties covered thereby shall be sold thereunder.
*(Acts 1943, No. 158, p. 142, §9.)*
##### **§ 11-50-530** Rates and Charges for Services Rendered {#sec-11-50-530 omnilex-key=us-al-statutes--title-11--11-50-530}
The rates and charges for the services rendered by or from any utility owned or operated by the corporation shall at all times be reasonable for the services so rendered and as low as consistent with good service and prudent management, but shall be sufficient to pay all expenses necessary for the operation of its properties and the maintenance thereof in good operating condition, the payment of the principal of and interest on all bonds issued by it and the creation and maintenance of such reserves for improvements, new construction, depreciation, and contingencies as the board may from time to time prescribe in the exercise of sound judgment and prudent management. In the event the revenues of the corporation shall be in excess of those necessary for said purposes, the corporation shall reduce its said rates and charges as the board may prescribe. All schedules of such rates and charges shall be uniform throughout the power district.
*(Acts 1943, No. 158, p. 142, §10.)*
##### **§ 11-50-531** Exemption from Taxation {#sec-11-50-531 omnilex-key=us-al-statutes--title-11--11-50-531}
All bonds and the income therefrom issued by the corporation and all mortgages and deeds of trust executed as security therefor and all properties of the corporation of every kind and character shall be exempt from all taxation in the State of Alabama. Any such mortgage or deed of trust shall be admitted to record in the office of the judge of probate of any county in this state without the payment of any tax upon the debt secured thereby or any other fee or charge except the costs of recording the instrument at the rate fixed by law.
*(Acts 1943, No. 158, p. 142, §11.)*
##### **§ 11-50-532** Dissolution {#sec-11-50-532 omnilex-key=us-al-statutes--title-11--11-50-532}
When all obligations incurred by the corporation and all bonds issued by it shall have been paid in full or provision for payment thereof shall have been made by appropriate, segregation and deposit of funds sufficient for such purposes, then and in such event the corporation may be dissolved by resolution adopted by vote of a majority of the board, which resolution shall set out the plan of dissolution and shall designate three directors who shall act as trustees in dissolution of the corporation. A copy of such resolution, duly certified by the secretary of the corporation under its seal, shall be filed with the Secretary of State, and, if it shows compliance with the foregoing requirements, it shall be recorded by the Secretary of State with the certificate of incorporation. Upon such filing and recording the corporation shall thereupon stand dissolved, and the trustees in dissolution named in such resolution shall thereupon proceed to wind up the business and affairs of the corporation, including the carrying out of the plan of dissolution as specified in such resolution and the conveyance or distribution to the municipalities specified in such plan of the properties and assets of the corporation. Such plan shall provide that the local distribution system (not including transmission lines or generating facilities or like facilities) owned by the corporation and located within the corporate limits of a municipality and within the police jurisdiction of any such municipality shall be conveyed to such municipality and shall provide for sale of the assets of the corporation then remaining and the distribution of the proceeds of such sale among the municipalities in the power district in direct proportion to the net operating income of the corporation derived from the unit of any utility located in such municipalities.
*(Acts 1943, No. 158, p. 142, §12.)*
##### **§ 11-50-533** Municipal Aid {#sec-11-50-533 omnilex-key=us-al-statutes--title-11--11-50-533}
Any municipality incorporated under the laws of Alabama which is situated within the territorial limits of any power district proposed to be served by any public nonprofit corporation now or hereafter organized under the laws of Alabama for the purpose of acquiring and operating facilities for the production, transmission, and distribution of electricity and related service within a power district composed of all or parts of any three or more connecting counties shall have the power to advance funds to such corporation for the purpose of paying the preliminary organization and administration expenses of such corporation. Any funds so advanced shall be repayable within such time, not exceeding one year from the date of such advancement, and on such terms as may be provided by the governing body of such municipality and agreed to by such corporation.
*(Acts 1943, No. 159, p. 152.)*
### **Chapter 50A** Municipal Electric Authority
##### **§ 11-50A-1** Definitions {#sec-11-50a-1 omnilex-key=us-al-statutes--title-11--11-50A-1}
As used in this chapter, the following words shall have the following meanings unless the context clearly indicates otherwise:
(1) AUTHORITY. Alabama Municipal Electric Authority created pursuant to this chapter and any successor or successors thereto.
(2) BOARD. The board of directors of the authority.
(3) BONDS. Any bonds issued by the authority under the provisions of this chapter, including refunding bonds.
(4) BOND ANTICIPATION NOTES. Short term obligations issued by the authority in anticipation of the issuance of bonds.
(5) COSTS. All costs of acquisition, construction, reconstruction, improvement, equipment, alteration, repair, or extension of any project; all costs of real and personal property required for the purposes of any project, including any rights or undivided interest therein; all costs of easements, franchises, water rights, fees, permits, approvals, licenses, and certificates, and all costs of securing any permits, approvals, licenses, and certificates, and preparing applications therefor; all costs of machinery and equipment, including equipment for use in connection with construction; all costs of the initial fuel supply or additional fuel inventories acquired for any project; all costs of insurance against any and all risks; all costs or estimated costs of financing, including, without limitation, interest that it is estimated will accrue prior to and during construction and during any additional period which the authority may reasonably determine to be necessary to place a project in operation on money borrowed or which it is estimated will be borrowed; all costs of engineering, inspecting, architectural, financial, fiscal agency, and legal services; all costs of plans and specifications and all expenses necessary or incidental to determining the feasibility or practicability of any project; all costs of working capital; all administrative and organizational expenses and any other expenses which may be necessary or incidental to the financing authorized in this chapter; and all costs incidental to any contract relating to prepayment by the authority for bulk electric power and energy or transmission services. The costs of any project shall also include funds paid or advanced for any of the purposes stated in this subsection by municipalities contracting with the authority prior to the issuance of any bonds, bond anticipation notes, or notes that may be refunded to those municipalities out of the proceeds of any bonds, bond anticipation notes, or notes so issued. The costs of any project may also include a fund or funds for the creation of a debt service reserve, an insurance and extraordinary repairs reserve, a renewal and replacement reserve, a fuel reserve, a working capital reserve, and any other reserves which may be reasonably required by the authority for the operation and disposal of its projects and which may be authorized by any bond resolution, trust agreement, or indenture pursuant to the provisions of which the issuance of any bonds may be authorized. Any obligation or expense incurred for any of the foregoing purposes shall be regarded as a part of the costs of a project and may be paid or reimbursed as such out of the proceeds of bonds, bond anticipation notes, or notes issued under the provisions of this chapter to finance the project.
(6) MUNICIPALITY. Any city or town which owns, maintains, and operates or causes to be owned, maintained, or operated an electric distribution system. If any such city or town has heretofore created and established, or hereafter creates and establishes, a public corporation operating an electric system or a municipal electric utility board pursuant to the laws of the state codified as, respectively, Section 11-50-310 et seq., or Section 11-50-490 et seq., then the word municipality shall refer to the public corporation or utility board, as the case may be, and not to the city or town creating and establishing it, so that the public corporation or utility board shall exercise all powers granted by this chapter to, and undertake all obligations imposed by this chapter on, the city or town creating and establishing it.
Any municipality that does not on May 18, 1981, own, maintain, or operate an electric distribution system and wishes to become a member of the authority, may become a member of the authority only following a favorable vote in a referendum held in the city on the question of membership in the authority.
(7) NOTES. Interim certificates, notes, or other evidences of indebtedness, whether long or short term, issued by the authority not in anticipation of the issuance of bonds.
(8) PERSON. A natural person, a cooperative or private corporation, association, firm, partnership, or business trust of any nature whatsoever, organized and existing under the laws of any state or of the United States, or of any other country or political subdivision thereof, including their departments, agencies, or instrumentalities, any municipality, or other municipal corporation, political subdivision, governmental unit, or public corporation created under the laws of any state or of the United States, and any state or the United States, and any person, board, or other body declared by the laws of any state or the United States to be a department, agency, or instrumentality thereof.
(9) PROJECT. Electric generation, transmission, and distribution facilities, and all property, real and personal, of every kind and nature material or pertinent thereto or necessary therefor, located within or without the state, which may be used or useful in the generation, transmission, distribution, sale, purchase, exchange, or interchange of bulk electric power and energy, and in the supplying of bulk electric power and energy to all those contracting with the authority therefor, as provided in Section 11-50A-8(8), including any interest therein or right to capacity thereof, and may include, without limitation, a divided or undivided interest in any electric generation, transmission, or distribution facility in which the authority shall participate as an owner in common with others, a contract right or other contractual arrangement for the long-term provision of bulk electric power and energy and transmission services to the authority on a prepaid basis and the acquisition of water and fuel of any kind for such purposes, including the acquisition of water rights, fuel deposits, and facilities for the development, production, processing, manufacture, fabrication, transportation, and storage of water and fuel. The term project shall not include any facilities for any purpose other than those necessary or desirable to provide bulk electric power and energy to municipalities or to effect the sale, purchase, exchange, and transmission of bulk electric power and energy with other electric suppliers pursuant to those arrangements provided in Section 11-50A-8(8), and any undivided fractional interest in any electric generation facilities which, on or prior to January 1, 1981, were being used by a private utility to generate electricity for distribution pursuant to a certificate of convenience and necessity obtained from the Alabama Public Service Commission. For purposes of the preceding sentence, electric generation facilities shall not be deemed to include any facilities used in common with other separate generating units at a single generating plant. Sales of bulk electric power and energy to municipalities shall only be effected as “wholesale sales” as the term “wholesale sales” is defined in Section 40-21-80(a)(9), as amended, or any subsequent statute of similar import. The terms “generation” and “transmission” as used herein shall have the same meaning as those contained in the uniform system of accounts as prescribed by the Federal Energy Regulatory Commission. The term “distribution” as used herein shall include only those facilities necessary or desirable to effect wholesale sales from transmission facilities to any municipality contracting with the authority.
(10) REVENUES. (i) All revenues, income, earnings, rents, and receipts derived by the authority from or attributable to the ownership or operation of any project, including all revenues attributable to the project or to the payment of the costs thereof received by the authority under any contract for the sale of the output, capacity, use, or service of the project or any part thereof or any contractual arrangement with respect to the use of the project or any portion thereof or the output, capacity, use, or service thereof, (ii) the proceeds of any insurance covering business interruption loss relating to the project, (iii) interest received on any moneys or securities held by the authority pursuant to any resolution duly adopted by the authority and paid or required to be paid into any revenue fund established by such resolution, and (iv) any other moneys received by the authority and defined as revenues in any bond resolution, trust agreement, or indenture pertaining to any bonds and the issuance thereof.
(11) STATE. The State of Alabama.
(12) HEREIN, HEREBY, HEREUNDER, HEREOF, and other equivalent words, refer to this chapter as an entirety and not solely to the particular section or portion thereof in which any of these words is used.
(13) Where used in this chapter, words in the present tense shall be construed to include the future tense, the singular shall be construed to include the plural, the plural shall be construed to include the singular, and nouns and pronouns shall be construed to include all genders.
*(Acts 1981, No. 81-681, p. 1114, §1.)*
##### **§ 11-50A-2** Legislative Intent {#sec-11-50a-2 omnilex-key=us-al-statutes--title-11--11-50A-2}
The municipalities are now empowered to own and operate electric distribution systems to serve their citizens, inhabitants, and customers by providing them electricity for all purposes. To assure that the municipalities may have alternative sources of bulk electric power and energy, in addition to those presently available, to operate their electric distribution systems in a dependable, efficient, and economical manner, it is desirable that the municipalities acting through the authority be empowered to engage in joint action for the generation, transmission, and distribution of bulk electric power and energy for sale to the municipalities for resale and for the sale, purchase, exchange and transmission of bulk electric power and energy with other electric suppliers. The Legislature finds and declares that the provision of alternative sources of bulk electric power and energy to the municipalities through joint action in the fields of generation, transmission, and distribution is in the public interest; that the creation of the authority as a non-profit public corporation is desirable to aid in the continued viability of the electric distribution systems operated by the municipalities and to provide for a means by which the municipalities may act jointly in all ways possible for the purpose of coordinated bulk electric power and energy supply programs; and that the necessity in the public interest for the provisions herein enacted is declared as a matter of legislative determination.
*(Acts 1981, No. 81-681, p. 1114, §2.)*
##### **§ 11-50A-3** Purpose of Authority {#sec-11-50a-3 omnilex-key=us-al-statutes--title-11--11-50A-3}
The purpose of the authority shall be to acquire, construct, operate, and maintain or cause to be acquired, constructed, operated, and maintained projects, and to take all other necessary or desirable action, in order to provide or make available an adequate, dependable, and economical alternative supply of bulk electric power and energy and related services for wholesale sales to those municipalities which may desire such supply, and incidentally and so as to take advantage of economies of scale in the provision of economical and reliable wholesale power supply to the municipalities, to enter into interconnection arrangements with other electric suppliers having generation and transmission capabilities, which arrangements provide for sale, purchase, exchange, or transmission of bulk electric power and energy. The authority shall only be authorized, through acquisition or construction of projects, or through interconnection arrangements with others, to provide for the generation, transmission, or distribution of power as provided in this chapter. Nothing in this chapter shall be construed to permit or to cause the authority to acquire or construct, or to maintain and operate any project, or to engage in interconnection arrangements with persons, for any purpose other than those necessary or desirable to provide bulk electric power and energy to municipalities or to effect the sale, purchase, exchange, and transmission of bulk electric power and energy with other electric suppliers pursuant to those arrangements provided in Section 11-50A-8(8). Sales of bulk electric power and energy to municipalities shall only be effected as “wholesale sales” as the term “wholesale sales” is defined in Section 40-21-80(a)(9), as amended, or any subsequent statute of similar import. Nothing in this chapter shall be construed to enable the authority to effect “retail sales” as the term “retail sales” is defined in Section 40-21-80(a)(5), as amended, or any subsequent statute of similar import. The authority shall not, except in the case of dissolution of the authority, disburse any moneys to any municipality participating in the authority, except to reimburse a municipality for amounts advanced to or for the benefit of the authority (with interest) or with respect to overcharges or refunds relating to the authority’s costs of and charges for bulk electric power and energy; provided, however, that nothing in this chapter shall prohibit disbursements or payments with respect to the purchase, lease, or other use by the authority of any electric transmission facility or rights-of-way of any participating municipality.
*(Acts 1981, No. 81-681, p. 1114, §3.)*
##### **§ 11-50A-4** Application for Incorporation {#sec-11-50a-4 omnilex-key=us-al-statutes--title-11--11-50A-4}
(a) To become a public corporation, the individuals designated as the first members of the election committee described in Section 11-50A-6(b)(1) shall, immediately before the first meeting of the election committee provided in Section 11-50A-6, present to the Secretary of State of the state an application signed by them as applicants which shall set forth:
(1) The name, official designation, if any, and residence of each of the applicants;
(2) The date on which each applicant was designated a member of the election committee;
(3) The name of the proposed corporation, which shall be the Alabama Municipal Electric Authority;
(4) The location of the principal office of the proposed corporation, which shall be in the City of Montgomery, Montgomery County; and
(5) Any other matter relating to the incorporation of the authority which the applicants may choose to insert and which is not inconsistent with this chapter or the laws of the state.
(b) The application shall be signed and sworn to by each of the applicants before an officer authorized by the laws of this state to take acknowledgments to deeds.
(c) The Secretary of State shall examine the application; and, if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.
*(Acts 1981, No. 81-681, p. 1114, §4.)*
##### **§ 11-50A-5** Issuance and Recording of Certificate of Incorporation; No Fees to Be Paid {#sec-11-50a-5 omnilex-key=us-al-statutes--title-11--11-50A-5}
When the application has been made, filed, and recorded as herein provided, the applicants shall constitute a public corporation under the name proposed in the application, and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this chapter, under the Great Seal of the State, and shall record the certificate with the application. There shall be no fees paid to the Secretary of State for any work done in connection with the incorporation of the authority.
*(Acts 1981, No. 81-681, p. 1114, §5.)*
##### **§ 11-50A-6** Board of Directors; Election Committee; Meetings; Vacancies; Officers; Expenses; Recordkeeping; Audits {#sec-11-50a-6 omnilex-key=us-al-statutes--title-11--11-50A-6}
(a) The board of directors of the authority shall be elected by the duly designated representatives of the municipalities that are authorized and directed to designate a member of the election committee as 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, the board shall consist of the number of members equal to the 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 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 meeting which shall be held at the State Capitol located in the City of Montgomery, Alabama, at 11 o’clock 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 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 subdivision (2). 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 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 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 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 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 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 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 paragraph a.
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 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 is elected.
(2) All members of the board shall serve at the pleasure of the election committee.
(3) 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. If there 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, 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 second meeting of the election committee described in subdivision (b)(1), 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 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 chair or 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 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 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 chair, a vice chair, a secretary-treasurer, and any other officers which the board from time to time may deem necessary. The chair and 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 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 subsection (i).
(n)(1) 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 chapter, and, at the discretion of the board, 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 chapter, 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 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.
*(Acts 1981, No. 81-681, p. 1114, §6; Act 2015-49, p. 166, §1; Act 2025-203, §1.)*
##### **§ 11-50A-7** Tax Exemptions; Payments in Lieu of Taxes {#sec-11-50a-7 omnilex-key=us-al-statutes--title-11--11-50A-7}
All bonds, bond anticipation notes, and notes issued by the authority, the interest thereon, and the income therefrom shall be forever exempt from all taxation in the state. All income of the authority, all obligations, lease agreements, and mortgages of the authority, all conveyances by or to the authority, and all lien notices or other filings with respect to the property of the authority and the transfer thereof shall be forever exempt from any and all taxation in the state. The purchase, sale, or use of property by the authority shall be exempt from all sales, use, and license taxes levied by the state and all political subdivisions of the state. All property of the authority shall be exempt from ad valorem property taxation. Nevertheless, the authority, or any agent of the authority designated for the purpose of constructing, maintaining, or operating any project of the authority, shall pay to any validly constituted taxing authority of the state, or any county or municipality or other political subdivision thereof, that levies ad valorem, sales, use, license, or severance taxes, payments in lieu of those taxes equal in amount to the ad valorem, sales, use, license and severance taxes which would have been paid by private persons engaged in the same or similar business within the state with respect to real and personal property owned, leased, or otherwise used, and with respect to the purchases, sales, or use of property, within the taxing jurisdictions of those entities had the properties of the authority been owned, leased, used, or purchased by such private persons. Payment of such amounts in lieu of taxes shall be made at the time taxes of such nature would be payable by private persons and shall be received, treated, deposited, and appropriated by those taxing jurisdictions for all purposes in the same manner as if those amounts were payments of those taxes. Payments in lieu of taxes shall be enforceable by the taxing authority in civil action brought by such taxing authority. It is the intent of the Legislature that while the authority is a political subdivision of the state, the business in which it is engaged should be responsible for the payment, in lieu of taxes, of amounts which other similar businesses are required to pay, to support essential government services. In the event of the dissolution of the authority pursuant to Section 11-50A-27, if any of the then remaining reserves of the authority provided for in this chapter (except those funded with proceeds of bonds, bond anticipation notes, or notes of the authority) are distributed (other than for those purposes for which such reserves were established or as credits respecting amounts previously overbilled by the authority) to municipalities contracting with the authority pursuant to Section 11-50A-17, the authority shall, with respect to those distributions, pay to the state, in lieu of income taxes levied by the state, amounts equal to the income taxes that would be payable by the authority with respect to the amounts distributed as if the authority had taxable income in the year of the distributions in the amount of such distributions and the authority were an entity subject to income taxes. Such amounts shall be payable at the time and received, treated, and appropriated by the state for all purposes in the same manner, as if those amounts were payments of state income taxes.
The authority shall also pay a fee to the state in the amount of 2.2 percent of the gross receipts in lieu of taxes from all electric power sold by the authority. The proceeds of such fee shall be deposited and paid to the general fund.
*(Acts 1981, No. 81-681, p. 1114, §7.)*
##### **§ 11-50A-8** Powers of the Authority {#sec-11-50a-8 omnilex-key=us-al-statutes--title-11--11-50A-8}
In addition to other powers granted the authority by this chapter, it shall have all powers consistent with the purposes of the authority as set forth in Section 11-50A-3, which are necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but without limiting the generality of the foregoing, the following enumerated powers, which shall be exercised by the authority consistently with the provisions of Section 11-50A-3:
(1) To sue and be sued and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties thereto;
(2) To adopt and alter a corporate seal;
(3) To make and alter at pleasure all needful bylaws, rules, and regulations for the transaction of its business and the control of its property and affairs;
(4) To have the same right of eminent domain through condemnation conferred by Section 10-5-1, or any subsequent statute of similar import; provided that nothing herein shall be construed to grant to the authority the power to acquire by condemnation any real or personal property or right-of-way of any utility as the term “utility” is defined in Section 37-4-1(7)a.;
(5) To acquire in its own name by purchase on such terms and conditions and in such manner as it may deem proper, or by exercise of the power of eminent domain, or by gift, grant, lease, or otherwise, real property or rights and easements therein and franchises and personal property necessary or convenient for its corporate purposes; and to insure its property against any and all risks with insurance which may, from time to time, be available; and to use its property and rent or lease the same to or from others, or make contracts with respect to the use thereof; or to sell, lease, or otherwise dispose of any of its property in any manner it deems to the best advantage of the authority and the purposes thereof. The powers to acquire, use, and dispose of property contained in this section shall include the power to acquire, use, and dispose of any interest in any property, whether divided or undivided, which may result in the ownership of any property or any part thereof in common with any other party or parties, public or private. With respect to any property held jointly with others, the parties may provide, by deed or contract, for the waiver of the right of partition and sale for partition or division, which such waivers, if given, shall be binding on all successors and assigns of the joint owners of such property. In any acquisition of real or personal property by the authority in common with any other party, public or private, either of the joint owners shall have an option to purchase the interest of any of the other joint owners upon determination by such other joint owner, its successors or assigns, to sell its interest in such jointly owned property, at a price to be mutually agreed to by the joint owners as set forth in a contract between the joint owners relating to such jointly owned property. The authority shall be under no obligation to accept and pay for any property condemned under this chapter except from the funds provided under the authority of this chapter. If the authority shall deem it expedient to construct any project on lands which are subject to the control of the state or of any political subdivision, board, or any public corporation existing in the state, the Governor, in the case of the state, or the governing authorities of any political subdivisions, boards, or public corporations are hereby authorized to convey any lands to the authority for a consideration, not exceeding reasonable value, which may be agreed upon by the authority, as grantee, and by the Governor or by the governing body of any political subdivision, board, or public corporation, as grantor, taking into consideration the public benefit to be derived from the conveyance;
(6) To appoint and select officers and employees, and to fix their compensation, and to appoint and select engineering, architectural, and construction experts, fiscal agents, and attorneys. The authority may retain, employ, engage, and dismiss all necessary staff and personnel, including professional and technical supervisors, assistants, and experts and other agents and employees, temporary or permanent, as it may require;
(7) To require that each officer or employee of the authority handling money or exercising control over property of the authority before entering upon the discharge of his duties, give bond with some surety company authorized to do business in the state as surety and payable to the authority, to be approved by the authority, in such penalty as the authority may prescribe, conditioned for the faithful discharge of the duties of his office or employment and faithfully to account for all moneys received or property coming into his possession in the capacity of his employment;
(8) To plan, develop, acquire, by purchase or otherwise, in whole or in part, as provided in subdivision (5) of this section, and to construct and place into operation and operate or cause to be constructed and placed into operation and operated, and to reconstruct, improve, equip, alter, repair, and extend projects, within or without the state, either as sole or joint owner of all or of any part in common with one or more persons or as agent; to provide, by sale or otherwise, an adequate, dependable, and economical supply of bulk electric power and energy to municipalities contracting with the authority pursuant to Section 11-50A-17; and, incidental to the provision of bulk electric power and energy to such municipalities, to enter into contracts for long or short-term interconnection, interchange, exchange, pooling, wheeling, transmission, purchase, or sale of bulk electric power and energy and other similar arrangements with other electric suppliers having generation and transmission capabilities, including, without limitation, the United States of America (including the southeastern power administration) and electric utility systems or electric cooperatives either privately or publicly owned, within or without the state; provided that such arrangements may include agreements with respect to resale rates and the disposition of receipts and provided further that such arrangements shall not be entered into with political subdivisions or public corporations of the state other than municipalities. The authority shall also have the power, which may be exercised either as principal or agent, to manufacture, generate, store, and transmit electricity for light, heat, power, and energy; to purchase power at retail or wholesale from any other person; to purchase or construct part of projects sponsored and owned by or in common with one or more persons, and to transmit power both for itself and on behalf of any person; to erect, buy, sell, lease, or otherwise acquire, maintain, and operate or cause to be maintained and operated plants, underground subways, conduits, poles, and wires above, upon, and under the streets, alleys, lands, and territories of political subdivisions (all in compliance with Article XII, Sections 220 and 228, Constitution of Alabama of 1901), public or private corporations, or individuals; and to sell bulk electric power and energy to municipalities which are authorized to contract with the authority pursuant to Section 11-50A-17;
(9) To contract with those municipalities which are authorized to contract with the authority pursuant to Section 11-50A-17, and with any person within or outside the state;
(10) To exercise any one or more of the powers, rights, and privileges conferred in this chapter either alone or jointly or in common with one or more persons. In any exercise of its powers, rights, and privileges jointly or in common with one or more persons with respect to the ownership, construction, operation, and maintenance of electric generation, transmission, or distribution facilities, the authority may own an undivided interest in those facilities with any other person, with or without waiver of the right of partition and sale for partition or division as may be provided in a deed or contract relating to such jointly-owned facility. The authority may enter into an agreement or agreements with respect to any electric generation, transmission, or distribution facility with any person participating therein, and any agreement may contain such terms, conditions, and provisions consistent with the provisions of this chapter as the parties thereto shall deem to be in their best interests. Any such agreement may include, but need not be limited to, provisions for the construction, operation, and maintenance of the electric generation, transmission, or distribution facility by any one or more of the parties to the agreement which shall be designated in or pursuant to the agreement as agent or agents on behalf of itself and one or more of the other parties thereto or by any other means which may be determined by the parties thereto, and may include provisions for a method or methods of determining and allocating, among or between the parties, costs of construction, operation, maintenance, renewals, replacements, improvements, and disposals with respect to the facility and the entitlement of the joint owners to the production capability or utilization of the facilities under normal and emergency situations and in the event of default on the part of one or more joint owners in the payment of costs as provided in the agreement. Any such agreement shall supersede any provision of law to the contrary relating to the rights of joint owners of property and relating to the use of property, title to which is held by the authority jointly with others. Notwithstanding anything contained in any other law to the contrary, pursuant to the terms of any agreement authorized in this subdivision, the authority may delegate any and all of its powers and duties with respect to the construction, operation, maintenance, renewal, replacement, improvement, or disposal of electric generation, transmission, or distribution facilities to the party or parties acting as agent; and all actions taken by the agent in accordance with the provisions of the agreement may be made binding upon the authority without further action or approval by the authority;
(11) To accept, receive, and administer gifts, grants, appropriations, and donations of money, materials, and property of any kind, including loans and grants from the United States of America or the state or any agency, department, authority, or instrumentality of either, upon such terms and conditions as the United States of America, the state, or any agency, department, authority, or instrumentality shall impose, and to administer trusts, and to sell, lease, transfer, convey, appropriate, and pledge any and all of its property;
(12) Subject to any agreement with the holders of bonds, bond anticipation notes, or notes, to invest moneys of the authority not required for immediate use, including proceeds from the sale of any bonds, bond anticipation notes, or notes and any accumulation of its funds and any sinking funds or reserves, in such obligations, securities and other investments as the authority shall deem prudent, and to purchase its own bonds, bond anticipation notes, and notes;
(13) To do any and all things necessary or proper for the accomplishment of the purposes of this chapter and any amendments hereto; and to exercise any power usually possessed by private corporations performing similar functions which is not in conflict with the Constitution and laws of the state, including employment of professional and administrative staff and personnel and retaining of legal, engineering, fiscal agency, and other professional services, the purchasing of all kinds of insurance including, without limitation, insurance against tort liability and against risks of damage to property, and including the power to borrow money for any of the purposes of the authority; provided, however, that obligations of the authority other than bonds, bond anticipation notes, and notes, for which provision is made in this chapter, may be made payable from the general funds of the authority and shall not be a charge against any special fund allocated to the payment of bonds, bond anticipation notes, or notes; and including the power to indemnify and hold harmless any parties contracting with the authority or its agents from damage to persons or property and the power to act as self-insurer with respect to any loss or liability;
(14) To issue and sell (on sealed bid at public sale, except that with respect to a particular issue of bonds proposed to be issued by the authority, if sale of the bonds on sealed bid at public sale is not in the opinion of the Director of Finance of the State of Alabama in the best interest of the authority under then prevailing market conditions, in which case, and in which case only, the proposed particular issue of bonds may be sold at private sale with the approval of the Director of Finance of the state) bonds, payable from the revenues of any of the projects of the authority and other available funds of the authority as designated in the bond resolution, trust agreement, or indenture pertaining to the bonds for the purpose of paying the costs of any project or for any of the authority’s corporate purposes; to execute trust agreements or indentures; to sell, convey, pledge, and assign any and all of its funds, property, and income as security for the payment of bonds, and to provide for the payment of bonds and for the rights of the holders thereof.
*(Acts 1981, No. 81-681, p. 1114, §8.)*
##### **§ 11-50A-9** Issuance of Bonds; Prerequisites; Procedure; Provisions; Execution; Bond Resolution Covenants {#sec-11-50a-9 omnilex-key=us-al-statutes--title-11--11-50A-9}
(a) The authority shall, prior to the adoption by the board of a resolution authorizing the issuance of any bonds, enter into one or more contracts with two or more municipalities which are authorized to contract with the authority pursuant to Section 11-50A-17. Any resolution of the board authorizing the issuance of bonds may authorize those bonds to be issued in more than one series, and the issuance of each series of bonds so authorized by that resolution need not be preceded by the entering into by the authority of additional contracts pursuant to Section 11-50A-17.
(b) The board may by resolution or resolutions authorize the issuance of bonds. Unless otherwise provided therein, the resolution or resolutions shall take effect immediately and need not be published or posted. The board may authorize such types of bonds as it may determine, subject only to any agreement with the holders of particular bonds, including bonds as to which the principal and interest are payable exclusively from all or a portion of the revenues from one or more projects, or from revenues generally or from any source whatever. Bonds may also be issued for the purpose of paying any outstanding bonds, bond anticipation notes or notes at or prior to maturity or upon acceleration or redemption; such bonds shall be issued in an aggregate principal amount not exceeding the sum of (i) the outstanding principal amount of the outstanding bonds, bond anticipation notes, notes or other obligations to be refunded, (ii) the interest accrued and unpaid thereon plus the interest to mature thereon until their date of payment, (iii) the amount of any redemption premium required, by their terms, to be paid as a condition to their redemption prior to their respective maturities, and (iv) the amount of any actual or estimated expenses of the refunding, including without limitation deposits to reserves for debt service or other capital or current expenses from the proceeds of such bonds as may be required by the resolution authorizing such bonds. The authority may provide for any arrangements for the payment and security of the bonds being issued or for the payment and security of the bonds, bond anticipation notes or notes to be redeemed, refunded, or refinanced.
(c) Bonds may be issued under this chapter in one or more series, may bear such date or dates, may mature at such time or times, not exceeding 50 years from their respective dates, may bear interest at such rate or rates, payable at such time or times, may be payable in such medium of payment at such place or places, may be in such denomination or denominations, may be in such form, either coupon or fully registered without coupons, may be issued in any specific amounts, may carry such registration, conversion, and ex-changeability privileges, may be declared or become due before the maturity date thereof, may provide such call or redemption privileges, may have such rank or priority, and may contain any other terms, covenants, assignments, and conditions as the bond resolution authorizing the issuance of the bonds, or any trust agreement or indenture pertaining thereto may provide. The authority may sell, at public or private sale, bonds in such manner, at such price or prices, and upon such terms and conditions as shall be determined by the authority. Any bonds, bond anticipation notes or notes issued by the authority shall be exempt from all laws of the state governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Title 8, Chapter 8, or any subsequent statute of similar import.
(d) The bonds of the authority shall be signed by its chairman and attested by its secretary-treasurer, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds shall be signed by the chairman; provided, that a facsimile of the signature of one, but not both, of these officers may be printed or otherwise reproduced on any bonds in lieu of his manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any bonds in lieu of being manually affixed thereto and a facsimile of the chairman’s signature may be printed or otherwise reproduced on any interest coupons in lieu of his manually signing the same. In the alternative, the signatures of the officers of the authority and the seal of the authority upon any bond, bond anticipation note or note, may all be by facsimile if the instrument is authenticated or countersigned by a trustee other than the authority itself or an officer or employee of the authority. All bonds, bond anticipation notes or notes issued under authority of this chapter bearing signatures or facsimiles of the signatures of officers of the authority in office on the date of the signing thereof shall be valid and binding notwithstanding that before the delivery thereof, and payment therefor, such officers whose signatures appear thereon shall have ceased to be officers of the authority. Pending the preparation of definitive bonds, interim receipts, in such form and with such provisions as the authority may determine, may be issued to the purchaser of bonds to be issued under this chapter.
(e) Any bond resolution authorizing the issuance of bonds and any trust agreement or indenture entered into under this chapter to finance in whole or in part the acquisition, construction, reconstruction, improvement, equipment, alteration, repair, or extension of any project, may contain covenants as to:
(1) The rates, fees, tolls, or other charges to be charged for the output, capacity, use or service of the project and other resources of the authority sufficient to meet operating and maintenance expenses, renewals and replacements to such project, debt service on bonds, creation and maintenance of reserves required by the bond resolution, trust agreement or indenture pursuant to which the issuance of bonds may be authorized and to provide for any margins or coverages over and above debt service on the bonds deemed desirable for the marketability of the bonds;
(2) The use and disposition of the revenues to be derived from the project;
(3) The creation and maintenance of sinking funds or reserves and the regulation, use and disposition thereof, including debt service reserve, renewal and replacement reserve, reserves for the provision of fuel, working capital reserves, and any other reserves which may be reasonably required by the authority for the ownership, lease, operation, or disposition of its projects and which may be authorized by the bond resolution, trust agreement or indenture pursuant to which the issuance of the bonds may be authorized;
(4) The purpose or purposes to which the proceeds of the sale of the bonds may be applied, and the use and disposition of the proceeds;
(5) Events of default and the rights and liabilities arising thereupon, the terms and conditions upon which bonds shall become or may be declared due before maturity, and the terms and conditions upon which that declaration and its consequences may be waived;
(6) The issuance of other additional bonds or the issuance of bond anticipation notes or notes evidencing obligations of the authority payable from or a charge against the revenues of the project;
(7) The insurance to be carried on the project, and the use and disposition of insurance proceeds;
(8) Books of account and the inspection and audit of those books;
(9) Limitations or restrictions as to leasing or otherwise disposing of the project while any of the bonds or interest thereon remain outstanding and unpaid; and
(10) The operation and maintenance of the project and of the authority.
*(Acts 1981, No. 81-681, p. 1114, §9.)*
##### **§ 11-50A-10** Validation of Bonds {#sec-11-50a-10 omnilex-key=us-al-statutes--title-11--11-50A-10}
Except as otherwise provided in this section, the validity of any bonds may be determined in the manner provided in Sections 11-81-220 through 11-81-227, provided that, as used in those sections: the term “unit” shall mean the authority; the term “organizing subdivision” shall mean the state; the term “obligations” shall include, in addition to the evidences of indebtedness listed in Section 11-81-220(3), all contracts described in Section 11-50A-11; and the term “district attorney” shall mean the attorney general of the state; and provided further, that the authority shall not be required to specify in its complaint when, where, and in what amounts principal and interest on the bonds are to be paid; and provided further, that in its complaint the authority may, when stating the amount of obligations to be issued, state the principal amount of bonds to be issued, whether the bonds are to be issued in separate series or installments from time to time, and, in stating the maximum rate of interest such bonds are to bear, state a maximum per annum rate of interest or in the event the bonds or any series or installment thereof are to bear different rates of interest for different maturity dates that none of such rates will exceed the maximum rate specified in its complaint; and provided further, that nothing contained herein shall be construed as prohibiting or restricting the right of the authority to sell its bonds at a discount, even if in so doing the effective interest cost resulting therefrom would exceed the maximum per annum interest rate specified in the authority’s complaint. Publication of a notice to the taxpayers and citizens of the state shall be made in the manner and at the times specified in Section 11-81-222(d), except that publication shall be made in a newspaper customarily published not less often than five days during each calendar week in the Cities of Birmingham, Mobile, Montgomery and Huntsville. A statement of certification shall be made as provided in Section 11-81-225, and, together with a facsimile of the signature of the register of the circuit court in lieu of his manually signing the same, shall be stamped, printed or otherwise reproduced on the bonds. The register or clerk of the circuit court shall receive no fee or other compensation in connection with the preparation of the certification described in this section. Prior to the initial issuance and sale by the authority of obligations provided for in this chapter (whether in the form of bonds, bond anticipation notes or notes), the validity of those obligations (along with the validity of the payments in lieu of taxes required by Section 11-50A-7) shall be determined in a validation proceeding as provided in this section. Following the initial issuance and sale of obligations of the authority the validity of which shall have been determined as provided in the preceding sentence, the validation of any bonds, bond anticipation notes or notes subsequently issued and sold by the authority shall not be required.
*(Acts 1981, No. 81-681, p. 1114, §10.)*
##### **§ 11-50A-11** Validation of Contracts {#sec-11-50a-11 omnilex-key=us-al-statutes--title-11--11-50A-11}
When payments required by the provisions of Section 11-50A-17 to be made by any municipality authorized to contract with the authority pursuant to Section 11-50A-17 are pledged as security for the payment of bonds sought to be validated, the petition for validation shall make parties defendant to that action every municipality which has contracted with the authority for the output, capacity, use or service of the project for which bonds are sought to be validated. Notice to the taxpayers and citizens of such municipality shall be made as provided in Section 11-81-222(d). Every other party, public or private, contracting with the authority in any manner with relation to the construction, ownership or operation of the project for which bonds are sought to be validated may also be made parties defendant to that action.
*(Acts 1981, No. 81-681, p. 1114, §11.)*
##### **§ 11-50A-12** Bond Provisions; Destroyed Bonds; Interest; Cancellation; Paying Agents {#sec-11-50a-12 omnilex-key=us-al-statutes--title-11--11-50A-12}
(a) If any bond becomes mutilated or is lost, stolen, or destroyed, the authority may execute and deliver a new bond of like date of issue, maturity date, principal amount, and interest rate per annum as the bond so mutilated, lost, stolen, or destroyed. The new bond shall have attached thereto coupons corresponding in all respects to those, if any, on the bond mutilated, lost, stolen, or destroyed; provided, that (i) in the case of any mutilated bond, that bond together with all unmatured coupons appertaining thereto is first surrendered to the authority, (ii) in the case of any lost, stolen, or destroyed bond, there is first furnished evidence of the loss, theft, or destruction satisfactory to the authority together with indemnity satisfactory to the authority, (iii) all other reasonable requirements of the authority are complied with, and (iv) expenses in connection with the transaction are paid. In the event any coupon is mutilated, lost, stolen, or destroyed, the authority may issue a duplicate coupon upon the same terms and conditions as those provided for the replacement of mutilated, lost, stolen, or destroyed bonds. Any bond or coupon surrendered for exchange shall be cancelled in accordance with the provisions of this section.
(b) Interest shall cease to accrue on any bond or coupon on the date that the bond or coupon becomes due for payment if payment is made or duly provided for, but liability for any matured bond or coupon and for the accrued interest thereon shall continue until the bond or coupon, as the case may be, is seven years overdue for payment. At that time, unless demand for payment has been made, this obligation shall be extinguished and shall be deemed no longer outstanding.
(c) Unless otherwise directed by the authority, every evidence of indebtedness and interest coupon paid, exchanged or otherwise retired shall forthwith be marked “cancelled” and shall be delivered by the paying agent making payment thereof to the authority where it shall be destroyed and a certificate of destruction shall be filed in the records of the authority.
(d) The authority shall maintain records containing a full and correct description of each evidence of indebtedness issued, identifying it and showing its date, issue, amount, interest rate, payment dates, payments made, registration, cancellation, destruction, and every other relevant transaction.
(e) The authority may appoint one or more paying agents within or without the state for each issue or series of bonds. Each paying agent shall be a bank or trust company authorized by the laws of the United States or of the state in which it is located to do a banking or trust business. The authority may make any provisions respecting paying agents which it deems necessary or useful and may enter into a contract with any paying agents containing any terms, including compensation, and conditions in regard to the paying agents which it deems necessary or useful.
*(Acts 1981, No. 81-681, p. 1114, §12.)*
##### **§ 11-50A-13** Immunity from Liability; Credit Not Pledged {#sec-11-50a-13 omnilex-key=us-al-statutes--title-11--11-50A-13}
(a) Neither the members of the election committee, the members of the board nor any individual executing bonds, bond anticipation notes or notes on behalf of the authority shall be personally liable thereon by reason of the issuance thereof.
(b) Neither the bonds, bond anticipation notes nor notes issued under provisions of this chapter nor the instruments evidencing the obligations which constitute the security therefor shall constitute a debt or a loan or pledge of the full faith and credit of the state or of any municipality, but all bonds, bond anticipation notes and notes shall be payable solely from the sources described in Section 11-50A-19 as provided in the resolutions or trust agreements or indentures authorizing or securing the issuance and payment of the bonds, bond anticipation notes or notes, as the case may be. The issuance of bonds, bond anticipation notes or notes shall not obligate the state or any municipality to levy or pledge any form of taxation whatever for the payment thereof. No owner of any bond, bond anticipation note or note or receiver or trustee in connection therewith shall have the right to enforce the payment thereof against any property of the state or of any municipality, nor shall any bond, bond anticipation note or note constitute a charge, lien, or encumbrance, legal or equitable, upon any such property. Bonds issued by the authority shall not be general obligations of the authority but shall be payable solely out of the revenues and other funds subject to pledge pursuant to Section 11-50A-19.
*(Acts 1981, No. 81-681, p. 1114, §13.)*
##### **§ 11-50A-14** Right to Receivership Upon Default {#sec-11-50a-14 omnilex-key=us-al-statutes--title-11--11-50A-14}
(a) In the event that the authority shall default in the payment of the principal of or interest on any of its bonds, bond anticipation notes or notes after they shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of 30 days, or if the authority shall default in any material respect in any agreement made with the holders of the bonds, bond anticipation notes or notes, any holder of bonds, bond anticipation notes or notes, or trustee therefor, shall have the right to apply in an appropriate judicial proceeding to the Montgomery County circuit court for the appointment of a receiver for the project, the revenues of which were pledged for payment of the principal of and interest due on the bonds, bond anticipation notes or notes, whether or not all bonds, bond anticipation notes or notes have been declared due and payable and whether or not the holder, or trustee therefor, is seeking or has sought to enforce any other right or to exercise any remedy in connection with the bonds, bond anticipation notes or notes. Upon such application the circuit court, if it deems such action necessary for the protection of the holders of the bonds, bond anticipation notes or notes, may appoint, and if the application is made by the holders of 25 percent in principal amount of the bonds, bond anticipation notes or notes then outstanding or any trustee for holders of bonds, bond anticipation notes or notes in that principal amount, shall appoint, a receiver for the project.
(b) The receiver appointed pursuant to this section shall forthwith, directly or by his agents and attorneys, enter into and upon and take possession of the project or of the portion thereof or interest therein which is owned by the authority and, if the court so directs, may exclude the authority, its officers, agents, and employees and all persons claiming under them wholly therefrom and shall have, hold, use, operate, manage, and control the project and each and every part thereof, and, in the name of the authority or otherwise, as the receiver may deem best, shall exercise all the rights and powers of the authority with respect to the project as the authority itself might do. The receiver shall maintain, restore, insure, and keep insured the project or any portion or interest therein which is owned by the authority, and from time to time shall make all necessary or proper repairs as to the receiver may seem expedient, and shall establish and maintain rates and collect fees, tolls, and other charges in connection with the project as the receiver may deem necessary or proper and reasonable, and shall collect and receive all revenues and shall deposit them in a separate account and apply the revenues so collected and received in the manner directed by the court; provided, however, that the foregoing duties of the receiver shall be performed in a manner consistent with any and all existing contractual arrangements to which the authority may be a party, and the powers of the receiver shall be no greater than the powers of the authority.
(c) Whenever all that is due upon the bonds, bond anticipation notes or notes, and interest thereon, and upon any other bonds, bond anticipation notes or notes, and interest thereon, having a charge, lien, or encumbrance on the revenues of the project under any of the terms of any covenants or agreements with holders of bonds, bond anticipation notes or notes shall have been cured and made good and it shall appear to the court that no default is imminent, the court shall direct the receiver to surrender possession of the project to the authority, and the same right of the holders of the bonds, bond anticipation notes or notes to secure the appointment of a receiver shall exist upon any subsequent default as provided in this section.
(d) The receiver shall, in the performance of the powers herein conferred upon him, act under the direction and supervision of the court making such appointment and shall at all times be subject to the orders and decrees of the court and may be removed by it. Nothing contained herein shall limit or restrict the jurisdiction of the court to enter any other and further orders and decrees as the court may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth herein; provided, however, the court shall not, in the exercise of the authority granted herein, be empowered to relieve the receiver of any obligation provided for by deed or contract between the authority and any other party.
*(Acts 1981, No. 81-681, p. 1114, §14.)*
##### **§ 11-50A-15** Negotiability of Bonds {#sec-11-50a-15 omnilex-key=us-al-statutes--title-11--11-50A-15}
Bonds, bond anticipation notes and notes issued by the authority shall be construed to be, and shall have all the rights and incidents of negotiable instruments, subject to the provision of the bonds, bond anticipation notes or notes pertaining to registration, although payable solely from a specified source as provided herein.
*(Acts 1981, No. 81-681, p. 1114, §15.)*
##### **§ 11-50A-16** Bonds as Legal Investments {#sec-11-50a-16 omnilex-key=us-al-statutes--title-11--11-50A-16}
The bonds, bond anticipation notes and notes authorized in this chapter shall be securities in which all public officers and bodies of this state and all political subdivisions, all insurance companies and associations, and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks, and savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds. The bonds, bond anticipation notes and notes shall also be securities which may be deposited with and shall be received by all public officers and bodies of this state and all political subdivisions for any purpose for which deposit of the bonds or other obligations of this state is now or may hereafter be authorized.
*(Acts 1981, No. 81-681, p. 1114, §16.)*
##### **§ 11-50A-17** Contracts for Use of Projects; Purchase of Electric Power; Payment of Charges; Indemnity; Enforcement of Performance {#sec-11-50a-17 omnilex-key=us-al-statutes--title-11--11-50A-17}
(a) Any municipality, if authorized by resolution or ordinance of its governing body, may contract with the authority for the payment of any rates, tolls, fees, and other charges prescribed in this section and Section 11-50A-18 by the authority for the output, capacity, use or service by the municipality of any projects or other resources of the authority or any of its facilities or undertakings. The obligations to pay the amounts contracted to be paid by the municipality to the authority under the contract or contracts entered into pursuant to the provisions of this section shall be treated as expenses of operating the electric distribution system of the municipality for the payment of which the revenues of the municipality derived from the operation of its electric distribution system (together with any other revenues that may be lawfully pledged therefor) may be pledged; provided that, in the case of a municipality that is an incorporated city or town in the state, such amounts contracted by such municipality to be paid during any fiscal year during which such contract is in effect shall be payable solely out of the current revenues derived from the operation of that municipality’s electric distribution system (together with any other revenues that may be lawfully pledged therefor) for such fiscal year; and, provided further, that no revenues may be pledged to provide funds to fulfill the obligations of a municipality arising under any contract with the authority if, as a result of such pledge, such contract would be deemed to constitute a debt of the municipality within the meaning of any constitutional prohibition or limitation. A municipality’s contract with the authority of the type described in this section may contain covenants with respect to resale rates charged by the municipality for electricity in order to ensure that revenues of the municipality’s electric distribution system are adequate for it to meet its obligations under the contract. The contract of the municipality may include provisions for requirement purchases of bulk electric power and energy and may extend for a term of not more than 50 years or such longer period as shall be the period of duration of any ownership or operation agreement relating to a project from which bulk electric power and energy is derived.
(b) All rates, fees, tolls, and charges payable by a municipality shall be made at the intervals and in the amounts agreed upon and set forth in the contract provided for by this section. The contract may provide for the payment of amounts which shall be sufficient to enable the authority to meet its expenses, interest and principal payments (whether at maturity or upon sinking fund redemption) for bonds, bond anticipation notes or notes, reasonable reserves and the requirements of any rate covenant with respect to debt service coverage contained in any bond resolution or trust agreement or indenture of the authority. The contract may also provide for the commencement of payments, not necessarily based directly on rates, to the authority prior to the completion of the undertaking by the authority of a project. The contract may provide for the making of any payments while the project is partially or wholly not in use and whether or not the project has been or will be completed, is then operable, or is operating, and may provide that those payments shall not be subject to any reduction whether by offset or otherwise and shall not be conditioned upon the performance or nonperformance by any party of any agreement. The contract may also provide that if one or more municipalities defaults in the payment of its obligation under any such contract, the remaining municipalities which also have entered into such contracts shall be required proportionately to pay for and shall be entitled proportionately to use or otherwise dispose of the bulk electric power and energy entitlement of the defaulting municipality. Reductions in the cost of wholesale power determined by an independent certified public accountant employed by each municipality in accordance with standard utility practice to have been realized through purchases from the authority shall be utilized by the municipality in reducing retail electric rates charged to its customers, provided that revenues received from the rates and charges imposed by the municipality for retail electric service shall be sufficient to pay the rates and charges of the authority and to pay all of the municipality’s ownership costs of its electric distribution system and meet the requirements with respect to the maintenance of rates and charges of any financing agreements, covenants, or other arrangements heretofore or hereafter entered into by and binding upon the municipality and to pay and provide for those capital improvements reasonably necessary to provide adequate service to the municipality’s retail electric customers and to provide for the reasonable future expansion of the municipality’s electric distribution system. It is the intent of the legislature that those municipalities that enter into contracts with the authority shall not use any part of the reductions in the costs of wholesale power realized by them for the purpose of making any payments to other public persons, in lieu of taxes or otherwise, unless and only to the extent the municipality has, prior to entering into the contract with the authority, incurred a binding obligation to make such payments.
(c) The contract provided for by this section may obligate the municipality to indemnify and save harmless the authority, the members of its board, its officers or its employees from any and all damage to persons and property occurring on or by reason of the project and to undertake, at the expense of the municipality, the defense of any action brought against the authority by reason of injury or damages to persons or property occurring on or by reason of the project.
(d) In the event of any failure or refusal on the part of a municipality to perform punctually any covenant or obligation contained in the contract provided for by this section, the authority may have the municipality’s performance enforced by any legal or equitable process, including specific performance.
*(Acts 1981, No. 81-681, p. 1114, §17.)*
##### **§ 11-50A-18** Revenues of Authority; Rates; Assignment to Trustee; Use of Revenues {#sec-11-50a-18 omnilex-key=us-al-statutes--title-11--11-50A-18}
(a) For the purpose of earning sufficient revenues to make possible the payment of all ownership costs of the authority relating to any project, the authority is authorized, empowered and directed to fix and revise rates and collect fees, tolls, and other charges with respect to each project which it shall cause to be acquired or constructed. Such rates, fees, tolls, and other charges to be paid for the output, capacity, use or service of each project and other resources of the authority shall be so fixed and adjusted from time to time as to provide funds at least sufficient with other revenues, if any, of the authority and of each of its projects:
(1) To pay the costs of operating, maintaining, leasing, repairing, and disposing of projects, including reserves for insurance and extraordinary repairs, reserves for renewals and replacements, reserves for fuel, reserves for working capital, reserves for the improvement, replacement, expansion or disposition of the project, taxes or payments in lieu of taxes or reserves therefor and other reserves required by the resolution, trust agreement or indenture pertaining to the bonds, bond anticipation notes or notes and the issuance thereof unless those costs shall be otherwise provided for; the cost of maintaining, operating, and conducting the business of the authority, including salaries, fees for professional services, including accounting, engineering, legal, financial and others, and all expenses properly relating to the conduct of the affairs of the authority; the cost of power, whether generated by the authority or acquired from others, and all other costs associated with the operation of the authority and its projects;
(2) To pay the principal of and interest on all bonds, bond anticipation notes and notes, as they shall become due, including call premium, if any, the proceeds of which shall have been or will be used to pay the costs of any project, and to pay any other obligations of the authority;
(3) To comply with any debt service reserve requirements contained in any resolution, trust agreement or indenture pertaining to the issuance of any bonds, bond anticipation notes or notes;
(4) To perform fully all provisions of any resolution, trust agreement or indenture relating to the issuance of any bonds, bond anticipation notes or notes to the payment of which the revenues are pledged;
(5) To provide for the accumulation of any excess revenues to provide any debt service coverage which may be required by the purchasers of the bonds, bond anticipation notes or notes or may be dictated by the requirements of the resolution, trust agreement or indenture pertaining to the issuance of the bonds, bond anticipation notes or notes or may be desirable in order to achieve ready marketability of and low interest rates on the bonds, bond anticipation notes or notes; and
(6) To pay any expenses in connection with the issuance of bonds, bond anticipation notes or notes or any project, including but not limited to, trustee’s fees and fiscal agent’s fees.
The authority shall not operate or construct any project for profit except insofar as any such profit will inure to the benefit of the public. It shall fix rates, fees, tolls and other charges consistent with this declaration of policy such as will produce revenues only in amounts sufficient, together with all other revenues of the authority, to pay all costs and meet all obligations and other requirements described in this subsection.
(b) The authority shall be permitted to assign any payments due or to become due to the authority pursuant to the contract described in Section 11-50A-17 to any trustee or paying agent required by the terms of any resolution, trust agreement or indenture relating to the issuance of and security for any bonds, bond anticipation notes, or notes.
(c) The use and disposition of the authority’s revenues shall be subject to the provisions of any resolution authorizing the issuance of any bonds, bond anticipation notes or notes, or of the trust agreement or indenture, if any, securing any bonds, bond anticipation notes or notes.
*(Acts 1981, No. 81-681, p. 1114, §18.)*
##### **§ 11-50A-19** Pledge of Revenues {#sec-11-50a-19 omnilex-key=us-al-statutes--title-11--11-50A-19}
All or any part of the gross or net revenues derived from any particular project or projects, whether or not such revenues were produced by a particular project for which bonds have been issued, and any income and earnings otherwise received by the authority from whatever source, and any other funds of the authority, may be pledged by the authority to the payment of the principal of and interest on bonds as may be provided in any resolution authorizing the issuance of any bonds or in any trust agreement or indenture pertaining to those bonds. The funds so pledged may include funds received from one or more or all sources and may be set aside at regular intervals into sinking funds for which provision may be made in any resolution, trust agreement or indenture pertaining to the bonds. These sinking funds may be pledged to and charged with the payment of (i) the interest on the bonds as it shall become due, (ii) the principal of the bonds as they shall mature, or as they are required to be redeemed, (iii) the necessary charges of any trustee or paying agent or registrar for the bonds, and (iv) any premium upon bonds retired upon call or purchase, and the use and disposition of any sinking fund may be subject to regulations for which provision may be made in the resolution, trust agreement or indenture pertaining to the bonds.
*(Acts 1981, No. 81-681, p. 1114, §19.)*
##### **§ 11-50A-20** Trust Agreement {#sec-11-50a-20 omnilex-key=us-al-statutes--title-11--11-50A-20}
In the discretion of the authority, any issue of bonds may be secured by a trust agreement or indenture made by the authority with a corporate trustee, which may be any trust company or bank within or without the state having the powers of a trust company. The trust agreement or indenture may pledge or assign any revenues to be received by the authority and any proceeds which may be derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon. The resolution providing for the issuance of bonds and the trust agreement or indenture may contain any provisions the authority deems necessary or appropriate for protecting and enforcing the rights and remedies of the bondholders, including the right of appointment of a receiver upon default in the payment of any principal or interest obligation and the right of any receiver or trustee to enforce collection of any rates, fees, tolls, charges, or revenues for the output, capacity, use, or service of the project necessary to pay all costs of operation and all reserves provided for, the principal of and interest on all bonds of the issue, all costs of collection, and all other costs reasonably necessary to accomplish the collection of such sums in the event of any default of the authority. The resolution, trust agreement or indenture may include covenants setting forth the duties of the authority in relation to the acquisition of property for and construction of the project and to the custody, safeguarding, and application of all funds of the authority, including any proceeds derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon, and covenants providing for the operation, maintenance, repair, and insurance of the project, and may contain provisions concerning the conditions, if any, upon which additional bonds may be issued. The resolution, trust agreement or indenture may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of any bondholder as is customary in securing bonds and debentures of corporations and may contain any other provisions that the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the trust agreement or indenture may be treated as a part of the cost of maintenance, operation, and repair of the project affected by the trust agreement or indenture; provided, however, any such treatment shall not result in a charge against the interest of any joint owner of the electric generation, transmission or distribution facilities, a portion of which facilities constitutes the project.
*(Acts 1981, No. 81-681, p. 1114, §20.)*
##### **§ 11-50A-21** Proceeds of Bonds {#sec-11-50a-21 omnilex-key=us-al-statutes--title-11--11-50A-21}
Proceeds of the bonds issued under authority of this chapter shall be used solely for the payment of the costs of a project or combined projects, and any other corporate purposes of the authority, and shall be disbursed upon requisition or order of the persons and under such restrictions as the resolution authorizing the issuance of the bonds or the trust agreement or indenture may provide. If the proceeds of the bonds of any issue shall exceed the amount required for the purpose for which the bonds are issued, the surplus shall be paid into the fund provided for the payment of principal of and interest on the bonds. In the discretion of the authority, bonds of a single issue or series of any issue may be issued for the purpose of paying the costs of any one or more projects, including a combination of projects.
*(Acts 1981, No. 81-681, p. 1114, §21.)*
##### **§ 11-50A-22** Issuance of Bond Anticipation Notes and Notes {#sec-11-50a-22 omnilex-key=us-al-statutes--title-11--11-50A-22}
The authority shall have the power and is authorized to issue, from time to time, bond anticipation notes in anticipation of the issuance of bonds and to renew from time to time any bond anticipation notes by the issuance of new bond anticipation notes, whether the bond anticipation notes to be renewed have or have not matured. The authority may issue bond anticipation notes only to provide funds which would otherwise be provided by the issuance of the bonds in anticipation of which the bond anticipation notes are to be issued. The bond anticipation notes may be authorized, sold, executed, and delivered in the same manner as bonds. Any resolution or resolutions authorizing bond anticipation notes or any issue thereof may contain any provisions which the authority is authorized to include in any bonds. All bond anticipation notes shall be special obligations of the authority payable out of any revenues pledged to the payment of, or the proceeds to be derived from the issuance of, the bonds in anticipation of the issuance of which the bond anticipation notes shall have been issued. Validation of the bonds shall not be a condition precedent to the issuance of any bond anticipation notes, and it shall not be required that those bond anticipation notes be judicially validated. Bond anticipation notes shall not be issued in an amount exceeding the principal amount of the bonds in anticipation of which they are to be issued. The authority shall also have the power and is also authorized to issue, from time to time, its notes, which notes shall not be conditioned upon, and need not be related to, the anticipated issuance of bonds, for the purpose of providing funds for any of its corporate purposes. Notes may be authorized, secured, sold, executed and delivered in the same manner as bonds and shall be issued in such principal amounts as the authority shall determine. In the discretion of the authority, bond anticipation notes and notes may be validated in the same manner as bonds.
*(Acts 1981, No. 81-681, p. 1114, §22.)*
##### **§ 11-50A-23** Trust Funds {#sec-11-50a-23 omnilex-key=us-al-statutes--title-11--11-50A-23}
All funds received by the authority pursuant to this chapter, whether as proceeds from the sale of bonds, bond anticipation notes or notes or as revenues, fees, tolls, or other charges, or as gifts, grants, or other contributions, shall be deemed to be trust funds to be held and applied solely as provided in this chapter or in any bond resolution, trust agreement or indenture authorized herein.
*(Acts 1981, No. 81-681, p. 1114, §23.)*
##### **§ 11-50A-24** Jurisdiction of Actions {#sec-11-50a-24 omnilex-key=us-al-statutes--title-11--11-50A-24}
Any action to protect or enforce any rights under the provisions of this chapter shall be brought in the circuit court of Montgomery County, Alabama, which shall have exclusive original jurisdiction of all such actions.
*(Acts 1981, No. 81-681, p. 1114, §24.)*
##### **§ 11-50A-25** Public Service Commission Review and Regulation {#sec-11-50a-25 omnilex-key=us-al-statutes--title-11--11-50A-25}
The authority shall be subject to the provisions of Title 37 to the extent set out herein. The public service commission shall review all bond resolutions, power sales contracts and other agreements entered into by the authority and and municipality and any investor-owned utility presently regulated by the public service commission that may affect the rates of the authority in order to determine if the rates to be charged by the authority pursuant to such resolutions, contracts and other agreements are reasonable and in the public interest; such bond resolutions and contracts shall not be effective if the rates to be charged by the authority as provided therein are disapproved by the public service commission within 30 days after submission of such resolutions, contracts and other agreements by the authority to the commission. In determining whether to approve any rates to be charged by the authority pursuant to such bond resolutions, contracts, or other agreements, the public service commission shall consider the purpose for which the authority is established, the provisions of Section 11-50A-18 and the need to: (i) encourage conservation of energy supplied by the authority, (ii) encourage the optimization of the efficiency of use of facilities and resources; and (iii) promote equitable rates to electric consumers. The public service commission shall approve accounting regulations for the authority, which regulations shall be consistent with the accounting regulations established generally in other states for entities similar to the authority, taking into account the provisions of this chapter with respect to the payment of all costs associated with the production of electricity by the authority and the payment of any securities issued by it to finance facilities to be owned by the authority.
The public service commission shall prescribe minimum standards regarding the placement and construction of transmission lines, substations and related facilities used in the transmission of electricity that are owned and operated by the authority.
No plant, property or facility for the production, transmission, delivery or furnishing of electricity shall be constructed by the authority if such facility is to be owned exclusively by the authority until the issuance by the public service commission of a certificate of convenience and necessity pursuant to Section 37-4-28.
*(Acts 1981, No. 81-681, p. 1114, §25.)*
##### **§ 11-50A-26** Provisions of Resolution, Agreement, Chapter, Etc., as Irrevocable Contract with Holders of Bonds, Notes, Etc {#sec-11-50a-26 omnilex-key=us-al-statutes--title-11--11-50A-26}
The provisions of any bond resolution, trust agreement or indenture authorized in this chapter shall be a contract with every holder of the bonds, bond anticipation notes or notes; and the duties of the authority under this chapter and under any bond resolution, indenture, or trust agreement shall be enforceable by any bondholder or noteholder by mandamus or other appropriate action. While any of the bonds, bond anticipation notes or notes issued by the authority shall remain outstanding, the powers, duties, or existence of the authority or of its officers, employees, or agents shall not be diminished, impaired, or affected in any manner which will affect adversely the interest and rights of the holders of those bonds, bond anticipation notes or notes. Any change in name or composition of the authority shall in no way affect the vested rights of any person under the provisions of this chapter or impair the obligations of any contracts existing under this chapter. The provisions of this chapter shall be for the benefit of the state, the authority and every owner of the authority’s bonds, bond anticipation notes and notes and, upon and after the issuance of bonds, bond anticipation notes or notes under the provisions of this chapter, shall constitute an irrevocable contract by the state with the owners of such bonds, bond anticipation notes and notes.
*(Acts 1981, No. 81-681, p. 1114, §26.)*
##### **§ 11-50A-27** Dissolution of Authority {#sec-11-50a-27 omnilex-key=us-al-statutes--title-11--11-50A-27}
When all bonds, bond anticipation notes and notes issued by the authority under the provisions of this chapter shall have been paid in full or otherwise satisfied, or when its obligations cease under every contract described in this chapter, whichever is later, the then chairman of the authority may, upon authorization of two-thirds of the membership of the board, thereupon execute and deliver in the name of and in behalf of the authority an appropriate deed, or deeds, or other appropriate instruments of conveyance, to which the seal of the authority shall be affixed and attested by the secretary-treasurer of the authority, whereby there shall be conveyed to the municipalities at that time represented on the election committee, in the proportion that each municipality’s then existing voting power on the election committee bears to the total then existing voting power of all municipalities represented on the election committee, all the projects, buildings, properties and other assets then owned by the authority. The then members of the board shall at that time file with the Secretary of State a written statement, subscribed and sworn to by each of them, reciting the payment in full of all bonds, bond anticipation notes and notes theretofore issued by the authority and the execution and delivery of any deed, deeds or other instruments of conveyance to the above-described municipalities, which statement shall be filed by the Secretary of State and recorded with the certificate of incorporation of the authority, whereupon the authority shall stand dissolved. There shall be no fees paid to the Secretary of State for any work done in connection with the dissolution of the authority.
*(Acts 1981, No. 81-681, p. 1114, §27.)*
##### **§ 11-50A-28** Exemption from Alabama Sunset Law {#sec-11-50a-28 omnilex-key=us-al-statutes--title-11--11-50A-28}
The authority shall not be governed by the provisions of Chapter 20 of Title 41 (originally enacted as Act No. 512 of the 1976 Regular Session of the Legislature of Alabama).
*(Acts 1981, No. 81-681, p. 1114, §28.)*
##### **§ 11-50A-29** Exemption from Competitive Bid Laws {#sec-11-50a-29 omnilex-key=us-al-statutes--title-11--11-50A-29}
No contract made by or on behalf of the authority, and no contract made by a municipality pursuant to Section 11-50A-17, shall be governed by the provisions of Title 41, Chapter 16, as amended.
*(Acts 1981, No. 81-681, p. 1114, §29.)*
##### **§ 11-50A-30** Construction {#sec-11-50a-30 omnilex-key=us-al-statutes--title-11--11-50A-30}
This chapter, being for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.
*(Acts 1981, No. 81-681, p. 1114, §30.)*
##### **§ 11-50A-31** Effectiveness of Pledges and Security Interests {#sec-11-50a-31 omnilex-key=us-al-statutes--title-11--11-50A-31}
Any pledge or security interest created or granted by the authority shall be valid and binding from the time when the same is made; moneys or property which are the subject of such pledge or security interest and then held or thereafter received by the authority shall immediately be subject to such pledge or security interest without any physical delivery thereof or further act; and such pledge or security interest shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether or not such parties have notice thereof. Neither the bond resolution, trust agreement or indenture nor any other instrument relating to bonds, bond anticipation notes or notes or otherwise creating or granting any such pledge or security interest need be filed or recorded in any office other than with the records of the authority.
*(Acts 1981, No. 81-681, p. 1114, §31.)*
##### **§ 11-50A-32** Powers Declared Supplementary {#sec-11-50a-32 omnilex-key=us-al-statutes--title-11--11-50A-32}
The provisions of this chapter shall be regarded as supplementary and additional to and cumulative of powers conferred by other laws and shall not be regarded as being in derogation of any powers now existing.
*(Acts 1981, No. 81-681, p. 1114, §32.)*
##### **§ 11-50A-33** Severability {#sec-11-50a-33 omnilex-key=us-al-statutes--title-11--11-50A-33}
In the event any portion of this chapter should be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the validity of any of the remaining portions of this chapter, which shall continue effective; provided, however, that if Section 11-50A-7 hereof or any portion of Section 11-50A-7 is held invalid or unconstitutional or if the payments in lieu of taxation provision set out in Section 11-50A-7 is for any reason determined to be unenforceable in a legal proceeding related to the initial issuance of bonds, bond anticipation notes or notes of the authority, then the entire chapter shall be invalid and ineffective and shall not be law.
*(Acts 1981, No. 81-681, p. 1114, §34.)*
### **Chapter 50B** Municipal Telecommunications Services
##### **§ 11-50B-1** Purpose {#sec-11-50b-1 omnilex-key=us-al-statutes--title-11--11-50B-1}
It is hereby declared to be the public policy of this state to encourage the development of advanced telecommunications capabilities, cable, interactive computer, and Internet facilities and services to better serve the public and further industrial economic development in this state. It is necessary for growth, job opportunities, and sustained economic development to encourage new investment in advanced telecommunications capabilities, cable, interactive computer, and Internet facilities, including investment by public providers of these services. Nothing contained herein, however, is intended to exempt, except, or exclude public providers which engage in the provision of advanced telecommunications capability or services, cable, interactive computer, or Internet facilities or services pursuant to the authority granted herein from complying with any provisions of federal law which may at any time apply to the public providers or their facilities or services, including without limitation, to the extent that they apply, any requirement that they interconnect with other telecommunications providers, or that they obtain from the regulatory authorities designated by federal law as being the appropriate bodies from which to obtain any requisite approval, the approval of interconnection agreements with other telecommunications providers.
*(Act 2000-614, p. 1235, §1.)*
##### **§ 11-50B-2** Definitions {#sec-11-50b-2 omnilex-key=us-al-statutes--title-11--11-50B-2}
As used in this chapter, the following terms shall have the following meanings:
(1) ADVANCED TELECOMMUNICATIONS CAPABILITY. Without regard to any transmission media or technology, high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.
(2) ADVANCED TELECOMMUNICATIONS SERVICE. Without regard to any transmission media or technology, the provision of high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.
(3) ALARM MONITORING SERVICE. A service that uses a device located at a residence, place of business, or other fixed premises for both of the following purposes:
a. To receive signals from other devices located at or about such premises regarding a possible threat at the premises to life, safety, or property, from burglary, fire, vandalism, bodily injury, or other emergency.
b. To transmit a signal regarding any threat by means of transmission facilities of a public provider, local exchange carrier, or one of its affiliates to a remote monitoring center to alert a person at the center of the need to inform the customer or another person or police, fire, rescue, security, or public safety personnel of the threat, but does not include a service that uses a medical monitoring device attached to an individual for the automatic surveillance of an ongoing medical condition.
(4) BROADBAND. Having the capability of supporting, in both the provider-to-consumer (downstream) and the consumer-to-provider (upstream) directions, a speed (in technical terms, “bandwidth”) in excess of 200 kilobits per second (kbps) in the last mile.
(5) CABLE SERVICE. A service that provides both of the following:
a. The one-way or bi-directional transmission to subscribers of video programming or other programming service; and
b. Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service; and shall include, without limitation, digital services, utilization of fiber optics, broadband services, use of data packets, and use of wireless methods to provide cable service.
(6) CABLE SYSTEM. A facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but the term does not include any of the following:
a. A facility that serves only to retransmit the television signals of one or more television broadcast stations.
b. A facility of a common carrier which is subject, in whole or in part, to the provisions of subchapter II of Chapter 5 of Title 47, U.S.C., as the provisions thereof read on August 1, 2000, except that such facility shall be considered a cable system to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand services.
c. An open video system that complies with the provisions of 47 U.S.C. §573, as the provisions thereof read on August 1, 2000.
d. Any facilities of any electric utility used for operating its electric utility system.
(7) CAPITAL COSTS. All costs of providing a service which are capitalized in accordance with generally accepted governmental accounting principles.
(8) CUSTOMER PREMISES EQUIPMENT. Equipment employed on the premises of a person, other than a telecommunications service provider, to originate, route, or terminate telecommunications.
(9) DIRECT COSTS. Those expenses of a public provider which are directly attributable to the provision of a service that would be eliminated if the provision of the service were discontinued.
(10) FRANCHISING AUTHORITY. Any municipality or municipal instrumentality empowered by law to grant a franchise.
(11) GENERALLY ACCEPTED GOVERNMENTAL ACCOUNTING PRINCIPLES. The accounting standards promulgated from time to time by the Governmental Accounting Standards Board.
(12) INDIRECT COSTS. Any costs identified with two or more services or other public provider functions and which are not directly identified with a single service. Indirect costs may include, but are not limited to, administration, accounting, personnel, purchasing, electric power supply, legal, and other staff or departmental support. Indirect costs shall be allocated to two or more services in proportion to the relative burden each respective service places upon the cost category.
(13) INTERACTIVE COMPUTER SERVICE. Any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and the systems operated or services offered by libraries or educational institutions.
(14) INTERNET. The international computer network of both federal and nonfederal interoperable packet switched data networks.
(15) MUNICIPAL INSTRUMENTALITY or INSTRUMENTALITY OF A MUNICIPALITY. Any one or more public corporations incorporated pursuant to the provisions of any of the following:
a. Article 9 of Chapter 50 of this title, as amended.
b. Article 15 of Chapter 50 of this title, as amended.
c. Chapter 7, Title 39, as amended.
d. A local act providing that the governing body of the public corporation is to be appointed by the governing body of a municipality and that the public corporation is authorized to furnish electric service to consumers for ultimate consumption.
e. Chapter 50A of this title, as amended, respectively.
(16) MUNICIPALITY. Any incorporated city or town in this state.
(17) PRIVATE PROVIDER. Any person, firm, partnership, corporation, or association offering service, other than a municipality or municipal instrumentality.
(18) PUBLIC PROVIDER. Any municipality or municipal instrumentality.
(19) SUBSCRIBER. Any person or entity lawfully receiving cable service provided by a private provider or public provider by means of or in connection with a cable system.
(20) TELECOMMUNICATIONS. The transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received.
(21) TELECOMMUNICATIONS CARRIER. Any provider of telecommunications services, except that such term does not include aggregators of telecommunications services as defined in the provisions of 47 U.S.C. §226 as the provisions thereof read on August 1, 2000.
(22) TELECOMMUNICATIONS EQUIPMENT. Equipment, other than customer premises equipment, used by a provider of telecommunications to provide telecommunications services, and includes software integral to such equipment, including upgrades.
(23) TELECOMMUNICATIONS SERVICE. The offering of telecommunications, including servicing and repairing related equipment, for a fee regardless of the facilities used, including, but not limited to, voice, data, imaging, and video transmissions.
*(Act 2000-614, p. 1235, §2.)*
##### **§ 11-50B-3** Permitted Activities by Public Providers; Lease of Equipment by Municipal Governing Bodies {#sec-11-50b-3 omnilex-key=us-al-statutes--title-11--11-50B-3}
In addition to all other power, rights, and authority heretofore granted by law, public providers may acquire, establish, purchase, construct, maintain, enlarge, extend, lease, improve, and operate cable systems, telecommunications equipment and telecommunications systems, and furnish cable service, interactive computer service, Internet access, other Internet services, and advanced telecommunications service, or any combination thereof, in the case of a public provider that is a municipality, to the inhabitants of the municipality and police jurisdiction, the area within the territorial jurisdiction of the municipal planning commission determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipality furnishes or sells any utility, such as electricity, gas, water, or sewer, and in the case of a public provider that is a municipal instrumentality, to the inhabitants of the municipality in which the municipal instrumentality was organized and the police jurisdiction of this municipality, the area within the territorial jurisdiction of the municipal planning commission of this municipality determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipal instrumentality furnishes or sells any utility, such as electricity, gas, water, or sewer. Nothing contained herein shall authorize any public provider to provide telecommunications service other than advanced telecommunications service. Notwithstanding any other provision of this chapter, however, public providers may, in the case of a public provider that is a municipality, to the inhabitants of the municipality and police jurisdiction, the area within the territorial jurisdiction of the municipal planning commission determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipality furnishes or sells any utility, such as electricity, gas, water, or sewer, and in the case of a public provider that is a municipal instrumentality, to the inhabitants of the municipality in which the municipal instrumentality was organized and the police jurisdiction of this municipality, the area within the territorial jurisdiction of the municipal planning commission of this municipality determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipal instrumentality furnishes or sells any utility, such as electricity, gas, water, or sewer, furnish to the public directly, Internet access, other Internet services, meter reading services, appliance, equipment, or facilities monitoring, alarm monitoring service and other security monitoring, surveillance or monitoring services, and billing and financial services. Any public provider which engages in the installation of alarm systems and any individuals who are employed by the public provider and who engage in the installation of alarm systems for customers of the public provider must comply with the rules and regulations of the Alabama Electronic Security Board of Licensure created pursuant to the provisions of Section 34-1A-2, as amended, to the same extent as a private installer of alarm systems for so long as the same may apply to private installers of alarm systems. In addition, the governing body of any municipality, by ordinance to be entered on its minutes, and any other public provider, by appropriate action of its governing body to be entered on its minutes, also may lease to others any of its cable system and telecommunications equipment not needed for public or municipal purposes and may couple the lease with the provision of cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof. A lease made, in the case of a municipality, by the mayor in accordance with the ordinance, or in the case of a municipal instrumentality, by the duly authorized officer, officers, or agents of the municipal instrumentality, shall be binding for the term specified in the lease, not to exceed a period of 25 years. Any public provider that acquires a cable system, telecommunications equipment, or telecommunications system for purposes of furnishing to others cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof, shall provide, to any requesting telecommunications carrier or any electric cooperative exercising any power enumerated in Article 2 of Chapter 6, Title 37, as amended, or an affiliate of an electric cooperative, for the provision of a telecommunications service, nondiscriminatory access to any of the public provider’s telecommunications equipment not needed for public or municipal purposes or used by the public provider in the provision of telecommunications service to others on an unbundled basis at any technically feasible point on rates, terms, and conditions that are just, reasonable, and nondiscriminatory. A public provider shall make available any of its telecommunications equipment not needed for public or municipal purposes or used by the public provider in the provision of telecommunications service to others on an unbundled basis to requesting telecommunications carriers and electric cooperatives exercising any power enumerated in Article 2 of Chapter 6, Title 37, as amended, or an affiliate of an electric cooperative, upon terms and conditions that are just, reasonable, and nondiscriminatory, provided the electric cooperative or affiliate of an electric cooperative makes available any of its telecommunications equipment not needed for its purposes to the public provider upon terms and conditions that are just, reasonable, and nondiscriminatory. Notwithstanding any other provision of this chapter, every public provider may acquire, establish, purchase, construct, maintain, enlarge, extend, lease, improve, and operate cable systems, telecommunications equipment, and telecommunications systems, and may furnish cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof, for the use of the public provider, and in the case of a public provider that is a municipality, any department or agency of the municipality, any public corporation, board, or authority that is an agency, department, or instrumentality of the municipality, and any public school located within the corporate limits or police jurisdiction of the municipality; and in the case of a public provider that is a municipal instrumentality, any department or agency of the municipality in which the municipal instrumentality was organized, and any public school located within the corporate limits or police jurisdiction of the municipality in which the municipal instrumentality was organized. Nothing contained in this chapter shall affect the authority of the state or local governmental agencies to manage the public rights-of-way or to require fair and reasonable compensation from telecommunications providers, on a competitively neutral and nondiscriminatory basis, for use of public rights-of-way.
*(Act 2000-614, p. 1235, §3.)*
##### **§ 11-50B-4** Municipal Authority to Furnish Cable Service; Rules and Regulations {#sec-11-50b-4 omnilex-key=us-al-statutes--title-11--11-50B-4}
Notwithstanding any other provision of this chapter, so long as a municipality has by virtue of the provisions of any franchise, jurisdiction, authority, or a right, to approve or disapprove the subscriber rates, fees, or charges of private providers of cable service furnishing cable service to subscribers in the municipality and has not either relinquished the same, or adopted procedures pursuant to which private providers of cable service are permitted to increase or decrease their rates to subscribers upon not less than 30 days notice freely, so long as the rates charged subscribers reflect all direct costs and indirect costs of providing the cable service, neither the municipality nor any municipal instrumentality whose organization the municipality has authorized, may exercise the authority to furnish cable service granted elsewhere in this chapter. Notwithstanding the foregoing, nothing contained herein shall preclude the municipality or the municipality which authorized the organization of the municipal instrumentality furnishing cable service, as the case may be, from prescribing uniform service rules and regulations governing matters such as, but not limited to, safety, the maintenance of records, and other matters within the municipality’s police powers, but all such cable service rules and regulations adopted by the municipality shall govern the provision of cable service by the municipality or municipal instrumentality as well as by private providers equally, and nothing contained herein shall be interpreted as limiting the authority of any municipality to impose and collect franchise fees, to regulate its streets and public ways, or to enforce its powers to provide for the public health, safety, and welfare.
*(Act 2000-614, p. 1235, §4.)*
##### **§ 11-50B-5** Maintenance of Records; Payment of Capital Costs, Etc {#sec-11-50b-5 omnilex-key=us-al-statutes--title-11--11-50B-5}
Every public provider furnishing cable service or telecommunications service in the exercise of authority granted under the provisions of this chapter shall maintain books and records of its operations reflecting all costs, including direct costs and indirect costs, of providing the cable service or telecommunications service, as the case may be, in accordance with generally accepted governmental accounting principles. Books and records maintained pursuant to the provisions of this section shall disclose the sources and amounts of capital, including working capital, employed in the provision of cable service or telecommunications service, as the case may be. No part of the capital costs incurred or capital expenditures made, or the operating expenses paid, by a public provider in the provision of cable service or telecommunications service, as the case may be, in the exercise of authority granted under this chapter shall be paid from revenues derived from state or local taxes or from appropriations of the state, a county, or a municipality. Notwithstanding the foregoing, nothing contained in this chapter shall preclude public providers furnishing cable service or telecommunications service, as the case may be, in the event of a disaster as declared by county, state, or federal officials or authorities, from using emergency relief funds obtained from any source in the repair or restoration of their cable systems, telecommunications equipment, and telecommunications systems, and nothing contained herein shall preclude a municipality, municipal department or agency, public corporation, board, or authority that is an agency, department, or instrumentality of a municipality, public school, or other governmental entity from paying a public provider for a service furnished by the public provider in the exercise of authority granted under this chapter from revenues derived from state or local taxes or from appropriations of the state, a county, or a municipality.
*(Act 2000-614, p. 1235, §5.)*
##### **§ 11-50B-6** Allocation of Costs; Charge Rates {#sec-11-50b-6 omnilex-key=us-al-statutes--title-11--11-50B-6}
A public provider furnishing cable service to subscribers in the exercise of authority granted under this chapter in areas provided cable service by private cable providers who, by virtue of the provisions of the private cable providers’ franchises or otherwise, are required or undertake voluntarily to allocate all direct costs and indirect costs, associated with the provision of cable service fully to the rates charged subscribers for cable service and to establish and charge subscriber rates for cable service which reflect all direct costs and indirect costs, related to the provision of this service, shall allocate all direct costs and indirect costs associated with the provision of cable service hereunder fully to the rates charged subscribers of the cable service, and shall establish and charge subscriber rates for cable service which reflect all direct costs and indirect costs related to the provision of this service. A public provider furnishing a telecommunications service in the exercise of authority granted under this chapter shall allocate all direct costs and indirect costs associated with the provision of telecommunications service hereunder fully to the rates charged the recipients of the telecommunications service, and shall establish and charge rates for telecommunications service which reflect all direct costs and indirect costs related to the provision of the telecommunications service. For purposes of this section, each public provider of cable service or telecommunications service shall in the computation of its costs of cable service or telecommunications service, as the case may be, and in the determination of its rates and charges for cable service or telecommunications service, as the case may be, impute an amount equal to the amount of the franchise-imposed fee or fees and any pole attachment fees which it would pay to itself in the case of a municipality, or to the municipality whose governing body authorized its organization, in the case of a municipal instrumentality, if any, were it a private provider of cable service or telecommunications service, as the case may be. Notwithstanding the foregoing, no public provider of cable service or telecommunications service shall be required to impute in the computation of its costs of cable service or telecommunications service, as the case may be, or in the determination of its rates and charges for cable service or telecommunications service, as the case may be, any amount relating to a franchise-imposed fee or fees and pole attachment fees which the public provider of cable service or telecommunications service, as the case may be, actually pays and which is, therefore, already included in the actual costs it incurs in providing cable service or telecommunications service, as the case may be, and no public provider furnishing cable service or telecommunications service in the exercise of authority granted under this chapter shall be required to adjust or revise its rates and charges more frequently than annually.
*(Act 2000-614, p. 1235, §6.)*
##### **§ 11-50B-7** Provision of Cable Channel to Public School System, Etc {#sec-11-50b-7 omnilex-key=us-al-statutes--title-11--11-50B-7}
Subsequent to August 1, 2000, each public provider that commences offering to the public cable service in the exercise of authority granted it hereunder shall reserve and make available for the use of the public school system in the municipality in the case of a municipality, or in the municipality which authorized the organization of the municipal instrumentality in the case of a municipal instrumentality, without fee, charge, or other compensation from the public school system, one cable channel; provided, however, that if the provision thereof without fee, charge, or other compensation pursuant hereto would constitute a breach of or event of default under the provisions of any resolution, indenture, mortgage, or other instrument pursuant to which any debt obligations of the public provider are then outstanding, the public provider shall not be required to provide a cable channel without fee, charge, or other compensation until the time doing so would no longer constitute a breach or event of default.
*(Act 2000-614, p. 1235, §7.)*
##### **§ 11-50B-8** Meetings, Hearings, Etc., Open to Public; Notice; Petition; Election; Procedure {#sec-11-50b-8 omnilex-key=us-al-statutes--title-11--11-50B-8}
(a) Actions of the governing body of a public provider relating to the provision of cable service or telecommunications service by the public provider, shall be taken in meetings open to the public consistent with any one or more of Sections 11-43-49, 11-43A-21, 11-44C-25, and 13A-14-2, as amended, respectively, or other similar statutory provisions, as shall otherwise govern meetings of the governing body of the affected public provider.
(b) Prior to the determination of the governing body of a public provider of cable service to commence furnishing cable service to subscribers in the exercise of authority granted under this chapter, the governing body of the public provider shall conduct a public hearing. Actual notice of the date, time, and place of the public hearing shall be given not less than 30 days prior thereto, to each private provider furnishing cable service in the municipality whose governing body is giving notice or in the municipality in which the municipal instrumentality whose governing body is giving notice was organized. Notice of the date, time, and place of the public hearing shall also be published at least once not less than 14 days prior to the date of the public hearing in a newspaper of general circulation published in the municipality whose governing body is giving notice or in the municipality in which the municipal instrumentality whose governing body is giving notice was organized or, if no newspaper of general circulation is published therein, in the county in which the municipality whose governing body is giving notice is located or the municipality in which the municipal instrumentality whose governing body is giving notice was organized is located, or if no newspaper of general circulation is published therein, in the newspaper of general circulation published nearest thereto or in an adjoining county. The notice of the public meeting also shall state that a petition, in the form and executed as provided herein, may be presented within 30 days of the date of publication of the notice by filing the same, in the case of a public provider of cable service that is a municipality, with the clerk of the municipality, and in the case of a public provider of cable service that is a municipal instrumentality, with the clerk of the municipality in which the municipal instrumentality was organized.
(c) The petition shall be in substantially the following form: “To the (herein insert the name of the governing body) of the municipality. We, the undersigned, qualified electors of the municipality respectfully petition that there should be submitted to a vote of the qualified electors of the municipality the following question: ‘Shall the (herein insert the name of the municipality or municipal instrumentality) be authorized to acquire, establish, purchase, construct, maintain, lease, and operate a cable television system for the purpose of furnishing cable service to subscribers? Yes ( ) No ( ).‘
(Signatures of electors) ____________________ ____________________ (Residences by street and number) _____________________ _____________________”
(d) The petition shall be signed by qualified electors of the municipality at least equal in number to five percent of the number of qualified electors of the municipality who voted in the general municipal election next preceding. One of the persons who presents and files the petition shall make an affidavit that the signatures on the petition are genuine signatures and that the persons who signed their names thereto are qualified electors of the municipality according to the published poll list.
(e) The probate judge of the county in which the municipality is located shall have summary jurisdiction upon complaint of an elector to determine the sufficiency of the petition and shall make such order as justice may require as to the sufficiency of the petition. A summary proceeding instituted hereunder shall be instituted within 10 days after the petition is filed with the clerk of the municipality.
(f) The clerk of the municipality shall give notice of the submission of the question by causing notice of the filing of the petition and the question to be submitted to be published at least once on the same day each week for three consecutive weeks in the same newspaper in which notice of the public meeting was given.
(g) If no petition shall have been filed with the clerk of the municipality within the time prescribed or, in case a summary proceeding has been instituted, a final order thereon has been made against the sufficiency of the petition, the governing body of the municipality may, in its discretion, determine whether to authorize the municipality’s or municipal instrumentality’s proceeding to acquire, establish, purchase, construct, maintain, lease, or operate a cable system.
(h) If the petition shall have been filed with the clerk of the municipality or, in case a summary proceeding has been instituted, a final order thereon has been made in favor of the sufficiency of the petition not more than 60 days and not less than 30 days prior to a previously scheduled general or special municipal election, the governing body of the municipality to which the petition is directed shall cause the question proposed by the petition to be duly submitted to a vote of the electors of the municipality at the previously scheduled general or special municipal election. If a petition shall not have been filed or, in case a summary proceeding has been instituted and a final order thereon has not been made in favor of the sufficiency of the petition so as to permit the question to be submitted at a previously scheduled general or special municipal election as provided herein, the governing body of the municipality to which the petition is directed shall at its next regular meeting succeeding the presentation of the petition or, in case a summary proceeding has been instituted, succeeding the date of a final order thereon in favor of the sufficiency of the petition, designate a day for the holding of a special election to ascertain the will of the electors regarding the question, which day shall be not less than 30 days nor more than 60 days from the date of the regular meeting.
(i) Unless otherwise provided in this section, the provisions of the election laws governing the conduct of municipal elections in the applicable municipality shall govern any election pursuant to this section. The governing body of the municipality is hereby authorized to appropriate and expend from moneys raised by taxation for the necessary expense of the special election.
(j) The question set forth in the petition shall be printed on the ballot. At the left of the question there shall be printed two voting squares, with the word “Yes” for voting for the question at the right of one square and the word “No” for voting against the question at the right of the other square.
(k) At the regular meeting of the governing body of the municipality next succeeding the completion of the canvass and the statement and proclamation of result, the governing body of the municipality shall adopt a resolution setting forth the question submitted at the election, the number of votes cast for the question and the number of votes cast against the question. If the number of votes cast for the question exceeds the number of votes cast against the question at the election, in the case of a public provider that is a municipality, the governing body of the municipality, and in the case of a public provider that is a municipal instrumentality, the governing body of the municipal instrumentality, may, in its discretion, determine whether to acquire, establish, purchase, construct, maintain, lease, or operate a cable system. If the number of votes cast against the question exceeds the number of votes cast for the question at the election, the public provider shall not be authorized to acquire, establish, purchase, construct, maintain, lease, or operate a cable system. Nothing contained herein shall, however, preclude a municipal governing body’s again giving notice of a public hearing relating to the municipality’s or municipal instrumentality’s commencing furnishing cable service to subscribers, recommencing thereby the process delineated herein, nor shall there be any limit to the number of times a municipal governing body may give notice of a public hearing in the manner provided herein, recommencing thereby the process of public hearing, possible petition and election provided herein.
(l) Prior to the determination of the governing body of a public provider of telecommunications service to commence furnishing telecommunications service in the exercise of authority granted under this chapter, the governing body of the public provider shall conduct a public hearing. Notice of the date, time, and place of the public hearing shall be published at least once not less than 14 days prior to the date of the public hearing in a newspaper of general circulation published in the municipality whose governing body is giving the notice or in the municipality in which the municipal instrumentality whose governing body is giving notice was organized or, if no newspaper of general circulation is published therein, in the county in which the municipality whose governing body is giving the notice is located or the municipality in which the municipal instrumentality whose governing body is giving notice was organized is located, or if no newspaper of general circulation is published therein, in the newspaper of general circulation published nearest thereto or in an adjoining county.
(m) In addition, the governing body of each municipality in which a public provider is furnishing cable service to subscribers in the exercise of authority granted under this chapter shall cause to be given to each private provider of cable service authorized to furnish cable service within the municipality, no less than seven days’ actual notice of each meeting of the governing body at which action relating to service rules and regulations for providers of cable service or rates for cable service is to be taken. The governing body of each municipality in which a public provider is furnishing telecommunications service in the exercise of authority granted under this chapter also shall cause to be given to each private provider of telecommunications service within the municipality, actual notice of each meeting of the governing body at which action relating to the rates and charges of the public provider of telecommunications service for the provision of telecommunications service is to be taken. Actual notice to private providers of cable service or to private providers of telecommunications service, as the case may be, as provided herein shall be given by certified mail addressed to their last known addresses.
*(Act 2000-614, p. 1235, §8.)*
##### **§ 11-50B-9** Funding {#sec-11-50b-9 omnilex-key=us-al-statutes--title-11--11-50B-9}
(a) In order to provide funds for payment of the costs of the acquisition, establishment, purchase, construction, maintenance, enlargement, extension, lease, or improvement of cable systems, telecommunications equipment, and telecommunications systems, public providers, within the limitations applicable under the Constitution of Alabama of 1901, may become indebted in an amount not to exceed the costs and the costs incurred in issuing the indebtedness and, in evidence thereof, issue the public provider’s bonds or other evidences of indebtedness, as the case may be, in the manner, tenor, and form as may be otherwise provided by law, for the issuance of the public provider’s warrants, bonds, or other evidences of indebtedness generally. The warrants, bonds, or other evidences of indebtedness issued pursuant to this section shall be payable solely from the revenues derived or to be derived from the operation of the systems or equipment and shall not have a maturity longer than 30 years from the date thereof.
(b) In order to further secure the prompt and faithful payment of the principal of and interest on all of the warrants, bonds, or other evidences of indebtedness, the public provider may execute a mortgage or deed of trust upon any or all of its cable system, telecommunications equipment, or telecommunications system and all property used in connection therewith, including the franchise or any part thereof.
(c) Any mortgage or deed of trust given by the public provider pertaining to its cable system, telecommunications equipment, or telecommunications system may contain terms, conditions, covenants, and warranties for the protection of the public provider and holders of the warrants, bonds, or other evidences of indebtedness issued by the public provider as may be determined and agreed upon by the governing body of the public provider and the persons, firms, or corporations acquiring such warrants, bonds, or other evidences of indebtedness.
(d) The mortgage or deed of trust may provide that in the event of the foreclosure of the mortgage or deed of trust, the purchaser at foreclosure sale may acquire the right, privilege, and franchise of operating the cable system, telecommunications equipment, or telecommunications system that may be so sold or conveyed, and the purchaser or purchaser’s vendee may have the right, authority, and privilege to carry on and operate the cable system, telecommunications equipment, and telecommunications system, in the same manner, on the same terms, and to the same extent as the public provider is authorized to operate same until the public provider may redeem the cable system, telecommunications equipment, or telecommunications system from a mortgage sale.
(e) The mortgage or deed of trust may provide that rates and charges shall be established and maintained sufficient to meet the costs of operation and maintenance and that the public provider may pledge all of the receipts, earnings, and revenues from the operation of the cable system, telecommunications equipment, or telecommunications system for the payment of the warrants, bonds, or other evidences of indebtedness secured thereby.
*(Act 2000-614, p. 1235, §9.)*
##### **§ 11-50B-10** Power of Eminent Domain {#sec-11-50b-10 omnilex-key=us-al-statutes--title-11--11-50B-10}
In addition to all other power, rights, privileges, and authority heretofore granted by law, in the exercise of the authority and power granted hereunder, public providers may exercise all powers of eminent domain now or hereafter conferred on municipalities in this state. Notwithstanding the foregoing, no public provider may acquire any other person’s or entity’s cable system, telecommunications equipment, or telecommunications system, or any part or equipment of any other person’s or entity’s system, including, but not limited to, poles, wires, conduits, transmitters, receivers, towers, appliances, or rights-of-way, through the exercise of the power of eminent domain.
*(Act 2000-614, p. 1235, §10.)*
##### **§ 11-50B-11** Limitation on Debts {#sec-11-50b-11 omnilex-key=us-al-statutes--title-11--11-50B-11}
No action taken pursuant to this chapter shall create or authorize the incurrence of a debt by any municipality within the meaning of any state constitutional provisions or statutory limitation on debts.
*(Act 2000-614, p. 1235, §11.)*
##### **§ 11-50B-12** Construction {#sec-11-50b-12 omnilex-key=us-al-statutes--title-11--11-50B-12}
This chapter shall be regarded as supplementary and additional to and cumulative of powers conferred by other laws and shall not be regarded as being in derogation of any powers now existing, including without limitation, powers previously conferred upon specific public providers by local acts which were enacted on or prior to May 25, 2000, and local acts amendatory thereto which may hereinafter be enacted.
*(Act 2000-614, p. 1235, §12.)*
### **Chapter 51** Taxation
#### **Article 1** Property Taxes
#### **Division 1** General Provisions
##### **§ 11-51-1** Levy and Assessment of Property Taxes; Notice of and Conduct of Hearing Upon Objections to Assessments {#sec-11-51-1 omnilex-key=us-al-statutes--title-11--11-51-1}
After October 1 of each year, cities and towns may levy taxes upon property and all subjects of taxation liable therefor at a rate not in excess of the constitutional limit upon assessments to be made by the city or town clerk or other person designated by the council or other governing body, such assessment to be made on the state assessment in the manner provided by the Constitution of the state or in the manner hereinafter authorized by law; provided, however, that any municipality may by ordinance provide that the tax year for such municipality shall commence on October 1 of each year and end on the next succeeding September 30, in which case cities and towns shall levy taxes as above set forth prior to August 1 of each year.
After the assessment has been made, it shall be returned to the council or other governing body which shall thereupon give 10 days’ notice by publication in a newspaper published in the city or town or, if no newspaper is published in such city or town, then by posting notices in three or more places in such city or town that the assessment has been completed and that the council or other governing body will hear and determine objections thereto upon a day not more than 30 days from the date on which said notice was directed to be made.
The council or other governing body may, however, authorize such assessment to be made by a board of assessors who, when the assessment has been completed, shall give a similar notice that such board will hear and determine objections to the assessment at a time and place designated in such notice not more than 30 days thereafter. On the day set for the hearing of objections, the council, or other governing body or board, as the case may be, shall hear such objections and determine the assessment.
*(Code 1907, §1311; Code 1923, §2124; Code 1940, T. 37, §670; Acts 1945, No. 482, p. 719, §1.)*
##### **§ 11-51-2** When Taxes Due and Delinquent; Interest Rate on Delinquent Taxes {#sec-11-51-2 omnilex-key=us-al-statutes--title-11--11-51-2}
After assessment, taxes shall become due on December 1 and delinquent on January 1 following, and, if assessment has been made during the month of May, taxes shall become due on October 1 and delinquent on January 1 following and in either case shall, after becoming delinquent, bear the legal rate of interest.
*(Code 1907, §1312; Code 1923, §2125; Code 1940, T. 37, §671; Acts 1945, No. 482, p. 719, §2.)*
##### **§ 11-51-3** Notice Required by Certain Municipal Tax Collectors as to Delinquent Taxes {#sec-11-51-3 omnilex-key=us-al-statutes--title-11--11-51-3}
Tax collectors of towns and cities of less than 7,000 inhabitants who do not have a known place of business with known hours of business during each day shall not be allowed to collect any fee from any delinquent taxpayer unless they give such taxpayer 30 days’ written notice of the amount of his taxes and when they will become delinquent.
*(Code 1907, §1337; Code 1923, §2152; Code 1940, T. 37, §697.)*
##### **§ 11-51-4** Submission of Assessment Rolls of Certain Cities to County Commission; Acceptance and Adoption Thereof by County Commission {#sec-11-51-4 omnilex-key=us-al-statutes--title-11--11-51-4}
In cities having over 15,000 inhabitants, if the council or other governing body shall assess taxes upon property liable under the Constitution and laws of this state for city taxes and furnish to the county commission an assessment roll showing property and assessed value thereof prior to April 1 of each year, then the county commission shall take such assessment and may adopt the same.
*(Acts 1909, No. 200, p. 197; Code 1923, §2126; Acts 1931, No. 553, p. 650; Code 1940, T. 37, §672.)*
##### **§ 11-51-5** Notification of Property Owners Where Valuation by City Higher Than County Valuation; Right of Property Owners to Contest Valuation, Etc {#sec-11-51-5 omnilex-key=us-al-statutes--title-11--11-51-5}
In the event the values of any property are higher than those made by the county assessor, the property owners shall be notified of the valuations placed and shall have the right to appear and contest the same and appeal from the judgment as provided by law.
This section, however, shall not affect the right of the Department of Revenue of the state to raise or lower or fix valuations as now provided by law.
*(Acts 1909, No. 200, p. 197; Code 1923, §2127; Code 1940, T. 37, §673.)*
##### **§ 11-51-6** Lien for Taxes {#sec-11-51-6 omnilex-key=us-al-statutes--title-11--11-51-6}
Cities and towns shall have a lien for taxes upon all property assessed for taxation which shall be superior to all other liens, except liens for taxes held by the state and county.
*(Code 1907, §1314; Code 1923, §2129; Code 1940, T. 37, §675.)*
##### **§ 11-51-7** Effect of Assessments and Enforcement Thereof by Levy of Execution Upon and Sale of Property Generally; Right of Redemption of Owner of Property Sold Generally {#sec-11-51-7 omnilex-key=us-al-statutes--title-11--11-51-7}
After the assessment has been corrected by the council or other governing body or board of assessors, it has the force and effect of a judgment against the property, real or personal, assessed and against the person owning the same and, at any time within five years after delinquency, may be enforced by an execution issued by the clerk to be levied upon the property, real or personal, which was so assessed for taxation if to be found and, if not, then upon any other property, real or personal, belonging to the person against whom such taxes were assessed.
The execution may be in form provided by the council or other governing body, and may be levied by the chief of police or other person designated by the council or other governing body, and the property so levied upon may be sold by such officer upon notice required by law for the sale of the same class of property by the sheriff at a time and place designated in the notice. The owner of real property sold under an execution issued in accordance with this section shall have the right of redemption provided for in the sale of real property for the payment of state and county taxes.
Nothing in this section shall be construed to be the exclusive remedy for the collection of taxes.
*(Code 1907, §1313; Acts 1923, No. 205, p. 217; Code 1923, §2128; Code 1940, T. 37, §674.)*
##### **§ 11-51-8** Garnishment for Collection of Taxes Generally {#sec-11-51-8 omnilex-key=us-al-statutes--title-11--11-51-8}
Garnishments may be issued by judges of the district courts upon such assessments as upon judgments in such courts for the collection of such taxes, upon affidavit being made as in other cases by an officer of the city or town.
*(Code 1907, §1316; Code 1923, §2131; Code 1940, T. 37, §677.)*
##### **§ 11-51-9** Collection of Taxes Due Upon Property Assessed to Unknown Owner Generally {#sec-11-51-9 omnilex-key=us-al-statutes--title-11--11-51-9}
When property, other than real, is assessed to an unknown owner, the taxes due may be collected by a levy of execution upon such property and a sale thereof.
*(Code 1907, §1317; Code 1923, §2132; Code 1940, T. 37, §678.)*
##### **§ 11-51-10** Demand for Payment of Taxes Due and Charge Therefor {#sec-11-51-10 omnilex-key=us-al-statutes--title-11--11-51-10}
Cities and towns may provide for a personal demand of taxes due and are authorized to make a charge therefor, not exceeding $.50, to be paid as costs, but such demand shall not be necessary or essential to the validity of proceedings to make collection by law.
*(Code 1907, §1318; Code 1923, §2133; Code 1940, T. 37, §679.)*
##### **§ 11-51-11** Preparation, Etc., of Certified List of Delinquent Taxes {#sec-11-51-11 omnilex-key=us-al-statutes--title-11--11-51-11}
Within three months after taxes have become delinquent, a list shall be made out and certified by the city or town clerk describing each piece of property separately, with the name of the owner, if known, and the amount of taxes due on such property and the amount of taxes due by such owner upon personal property, which also may be collected by a sale of the realty for taxes due thereon.
*(Code 1907, §1319; Code 1923, §2134; Code 1940, T. 37, §680.)*
##### **§ 11-51-12** Filing of List in Circuit Court; Entry of Civil Actions for Assessments on Trial Docket; Issuance, Execution, and Return of Summons Notifying Owners of Institution of Proceedings Against Property Generally {#sec-11-51-12 omnilex-key=us-al-statutes--title-11--11-51-12}
Such lists shall be filed with the register or clerk of the circuit court. The register or clerk shall cause to be entered on the trial docket in such court in a well-bound book kept for that purpose a civil action for each assessment of property of the city or town against such property so assessed. Said docket shall show the amount of the taxes sought to be collected, a description of the property and the name of the owner, if known.
Upon the filing of the certificate, the register or clerk is directed to issue a summons, as in other civil actions, containing a description of the property and notifying each owner of the filing of the proceedings against his property. Only one summons, however, shall be necessary if two or more pieces of property are assessed to the same owner. Such summons shall forthwith be executed by the sheriff and returned to the register within 10 days.
*(Code 1907, §1320; Code 1923, §2135; Code 1940, T. 37, §681.)*
##### **§ 11-51-13** Publication of Notice of Filing of Tax List, Etc., as to Owners Unknown or Not Found {#sec-11-51-13 omnilex-key=us-al-statutes--title-11--11-51-13}
In the case of property of an unknown owner or when the sheriff returns “not found” after 10 days as to owners for whom he has a summons, the register or clerk is directed to cause publication to be made for 30 days of the fact of the filing of such tax list, giving a list of the property assessed to owners unknown and to persons for whom a summons has been returned by the sheriff “not found.”
*(Code 1907, §1321; Code 1923, §2136; Code 1940, T. 37, §682.)*
##### **§ 11-51-14** Entry of Judgment by Circuit Court; Sale of Property for Payment of Taxes, Etc., Generally {#sec-11-51-14 omnilex-key=us-al-statutes--title-11--11-51-14}
If no pleadings setting up a defense shall be filed by the owner of the property within 30 days after publication has been perfected or within 30 days after service of the notice by the sheriff, then without further proof a final judgment shall be entered by the circuit judge adjudging such property liable for such taxes and directing the register or clerk to sell such property for the payment of the taxes, charges, penalties, interest, and costs that are charged thereon unless the amount due and the costs shall have been paid to the register or clerk before the sale. Such sale shall be made as in other civil actions and need not be confirmed by the court. The judge may consolidate actions against property assessed to the same owner and may designate the property which shall be sold to pay to the taxes, charges, interest, penalties and costs charged to all. If any defense is made by the owner, the court shall proceed to give relief under its own rules of procedure, the certificate, however, filed in said court being prima facie evidence of the facts contained therein.
*(Code 1907, §1322; Code 1923, §2137; Code 1940, T. 37, §683.)*
##### **§ 11-51-15** Appeal from Judgment of Circuit Court {#sec-11-51-15 omnilex-key=us-al-statutes--title-11--11-51-15}
An appeal staying the execution of the judgment of the circuit court may be taken to the Supreme Court from any final judgment in any tax case upon the appellant entering into bond, with good and sufficient sureties, in an amount to be fixed by the judge of the court entering the judgment, conditioned to pay the judgment of the Supreme Court when rendered; provided, that no sureties on any bond shall be required of a city or town.
*(Code 1907, §1332; Code 1923, §2147; Code 1940, T. 37, §693.)*
##### **§ 11-51-16** Sales of Property for Payment of Taxes, Etc., Generally - Disposition of Proceeds {#sec-11-51-16 omnilex-key=us-al-statutes--title-11--11-51-16}
All proceeds arising from sales for taxes or assessments shall be paid over by the register or clerk of the court, after deducting the costs and expenses of such civil action, to the treasurer of the city or town who shall hold for the owner, upon his official bond, the surplus after deducting the amounts due the city or town. The costs in each civil action, however, in no event shall exceed $10.00, exclusive of the advertising fee.
*(Code 1907, §1324; Code 1923, §2139; Code 1940, T. 37, §685.)*
##### **§ 11-51-17** Sales of Property for Payment of Taxes, Etc., Generally - Purchase of Property by Municipality {#sec-11-51-17 omnilex-key=us-al-statutes--title-11--11-51-17}
The city or town may become the purchaser at such sale, and the officer making the purchase shall bid a sum sufficient to pay the full amounts due for taxes, assessments filed, interest, and costs, and the amount due the city or town shall be allowed as a credit on such purchase.
*(Code 1907, §1325; Code 1923, §2140; Code 1940, T. 37, §686.)*
##### **§ 11-51-18** Sales of Property for Payment of Taxes, Etc., Generally - Rights and Liabilities of Purchaser of Property Generally {#sec-11-51-18 omnilex-key=us-al-statutes--title-11--11-51-18}
Purchasers at a municipal tax sale shall have the right of possession of the property so purchased and may enforce the same by an action of ejectment, and there shall be no liability to account for rents and profits to the party redeeming.
*(Code 1907, §1331; Code 1923, §2146; Code 1940, T. 37, §692.)*
##### **§ 11-51-19** Sales of Property for Payment of Taxes, Etc., Generally - Title Acquired by Purchaser {#sec-11-51-19 omnilex-key=us-al-statutes--title-11--11-51-19}
The purchaser of property, real or personal, sold under an execution issued by the city or town clerk shall receive a title clear of all encumbrance, except of liens held by the state and county; provided, that the property sold is the property against which the taxes for the payment of which the sale is had were levied.
*(Code 1907, §1315; Acts 1923, No. 205, p. 217; Code 1923, §2130; Code 1940, T. 37, §676.)*
##### **§ 11-51-20** Sales of Property for Payment of Taxes, Etc., Generally - Grounds for Invalidity of Sale; Procedure When Proceedings for Sale Not Sufficient to Pass Title to Property {#sec-11-51-20 omnilex-key=us-al-statutes--title-11--11-51-20}
The sale of property for taxes or assessments shall not be invalid on account of the manner of assessment for any other reason than that the taxes or assessments thereon have been paid; but, if for any reason, the proceedings in the circuit court shall not be sufficient to pass the title, the lien of the city or town for taxes or assessments shall pass to the purchaser and may be enforced by him in a civil action or may be collected by the municipality in any other civil action against the same property, and, if collected, said sum shall be paid over to such purchaser.
*(Code 1907, §1326; Code 1923, §2141; Code 1940, T. 37, §687.)*
##### **§ 11-51-21** Certification to Circuit Court of Unpaid Assessments for Improvements and Collection Thereof from Proceeds of Sale; Effect of Sales Upon Tax and Assessment Liens {#sec-11-51-21 omnilex-key=us-al-statutes--title-11--11-51-21}
If any assessment for street improvements or otherwise are due and unpaid, the amounts assessed against such property may also be certified by the city or town clerk to the register or clerk of the circuit court and may be collected out of the proceeds of the sale of such property as in the case of taxes, but no sale of property by the city or town for taxes shall relieve the property of the lien for assessments due the city or town, and no sale for assessments shall relieve the property of the lien for taxes due the city or town unless the same shall have been paid.
*(Code 1907, §1323; Code 1923, §2138; Code 1940, T. 37, §684.)*
##### **§ 11-51-22** Assessments Against Property, Etc., for Escaped Taxes Authorized; Collection Thereof; Reassessment of Property Because of Informality or Irregularity in Assessment Authorized {#sec-11-51-22 omnilex-key=us-al-statutes--title-11--11-51-22}
(a) At any time within five years after property has escaped taxation, the council or other governing body or board of assessors shall have the right to make assessments against such property for such escaped taxes or against the person owning such property, and such taxes shall be collected by certification to the circuit court or by levy of execution and sale as provided in this article.
(b) For any informality or irregularity in any assessment, the council or other governing body or board of assessors shall have the right to make a reassessment against such property at any time within five years.
*(Code 1907, §1327; Code 1923, §2142; Code 1940, T. 37, §688.)*
##### **§ 11-51-23** Redemption of Property After Sale - Authorization and Procedure Generally {#sec-11-51-23 omnilex-key=us-al-statutes--title-11--11-51-23}
Such persons as are authorized to redeem property sold at state tax sales may redeem from the purchaser at any sale for municipal taxes at any time within two years after the sale upon paying to the purchaser or to the city or town treasurer the amount for which the property was sold and interest at a rate of six percent per annum and such sums as the purchaser may have paid for taxes and the interest thereon and all sums for which such parties may have become liable, on account of taxes, to pay by reason of owning the property, together with the sum of $2.00 to pay the cost of reconveyance of such property.
*(Code 1907, §1328; Code 1923, §2143; Code 1940, T. 37, ™689.)*
##### **§ 11-51-24** Redemption of Property After Sale - Conveyance of Property, Etc., to Redeemer {#sec-11-51-24 omnilex-key=us-al-statutes--title-11--11-51-24}
Upon such tender by the person offering to redeem the property and the payment thereof to the purchaser or the deposit of the sum due to the purchaser with the treasurer, the deed executed by the register or clerk of the circuit court shall be void and, upon a refusal of the purchaser or his vendee to reconvey to the party redeeming, the council or other governing body may authorize a deed to be made to the party redeeming, which shall convey all title the city or town or the purchaser derived at such tax sale, but the interest of the owner of the property and the interest of the party redeeming shall be adjusted between the parties as are other legal and equitable interests.
*(Code 1907, §1329; Code 1923, §2144; Code 1940, T. 37, §690.)*
##### **§ 11-51-25** Redemption of Property After Sale - Redemption by Municipality; Redemption from Municipality {#sec-11-51-25 omnilex-key=us-al-statutes--title-11--11-51-25}
The city or town may redeem property at any sale made by the state for taxes upon the same terms as required by law for owners to redeem, and no person shall be allowed to redeem from the municipality without paying to the city or town the amount paid to redeem such property and all claims of the city or town thereon for taxes and penalties or otherwise, and no redemption shall be made in any case from the municipality or from a purchaser after two years from the date of the sale.
*(Code 1907, §1330; Code 1923, §2145; Code 1940, T. 37, §691.)*
##### **§ 11-51-26** Attachment or Garnishment for Collection of Taxes in Anticipation of Nonpayment Thereof {#sec-11-51-26 omnilex-key=us-al-statutes--title-11--11-51-26}
If the mayor or other chief executive officer or clerk shall have reason to believe that the city or town will likely lose taxes by the fact that a person is moving away without paying same at any time after assessment, whether such taxes are due or not, he shall cause attachment or garnishment proceedings to issue from the district court against such person as upon a judgment in such court or town, upon affidavit being made that the party is about to move from the city or town and that there is danger of the city or town losing its taxes, whereupon the taxes are declared to be due and collectible and may be collected by the district court as in other cases.
*(Code 1907, §1333; Code 1923, §2148; Code 1940, T. 37, §694.)*
##### **§ 11-51-27** Releases from Taxes; Settlement of Claims and Releases from Penalties {#sec-11-51-27 omnilex-key=us-al-statutes--title-11--11-51-27}
No municipality shall have the right to release any persons from lawful taxes or burdens imposed by law, but this shall not prevent the settlement of claims where doubt exists as to the validity or extent thereof nor shall it prevent a municipality from releasing penalties that may be imposed for the nonpayment of taxes, but all compromises and all releases from such penalties shall be adopted by the council or other governing body by a resolution or ordinance.
*(Code 1907, §1334; Acts 1911, No. 465, p. 549; Code 1923, §2149; Code 1940, T. 37, §695.)*
##### **§ 11-51-28** Requirement as to Separation in Levy, Collection, and Disbursement of General and Special Taxes; Disposition of Excess Proceeds from Special Taxes {#sec-11-51-28 omnilex-key=us-al-statutes--title-11--11-51-28}
Unless otherwise provided by law or its charter, when a special tax is levied by a town or city for any purpose, the levy, collection, and disbursement thereof shall be kept separate in all respects from the levy, collection, and disbursement of general municipal taxes, and all moneys, books, receipts, vouchers, and warrants relating thereto shall be kept separate and shall express on their face that they relate to the special tax and state the object of the tax, but the same officers may act in the levy, assessment, collection, and disbursement of the general and special taxes, unless otherwise provided. If, after the purpose of the special tax is accomplished, there remains a balance over, it shall be transferred to the general fund of the municipality.
*(Code 1886, §1520; Code 1896, §2973; Code 1907, §1455; Code 1923, §2311; Code 1940, T. 37, §696.)*
#### **Division 2** Optional Method for Levy and Collection of Property Taxes
##### **§ 11-51-40** Adoption of Ordinance Providing for Payment of Municipal Taxes Upon Basis of State and County Assessments for Preceding Tax Year, Etc.; Operation Under Provisions of Article by Certain Cities {#sec-11-51-40 omnilex-key=us-al-statutes--title-11--11-51-40}
Any municipality may by ordinance provide that the tax year for such municipality shall commence on October 1 of each year and end on the next succeeding September 30 and provide for the effective date of such ordinance and further provide that on and after each October 1 after the effective date of such ordinance municipal taxes shall be based and due on state and county assessments for the preceding tax year and shall be due and delinquent at the time when the state and county taxes for the preceding tax year are due and delinquent.
All cities whose taxes were, prior to the adoption of the 1940 Code, assessed and collected under 1911 Acts, p. 130, or 1931 Acts, p. 337, shall continue under the provisions of this article without passage of any ordinance.
*(Acts 1911, No. 155, p. 130; Acts 1931, No. 300, p. 337; Code 1940, T. 37, §698.)*
##### **§ 11-51-41** When Taxes Due and Delinquent {#sec-11-51-41 omnilex-key=us-al-statutes--title-11--11-51-41}
The municipal taxes due and payable up to September 30 succeeding the effective date of such ordinance shall be collected under and in accordance with the laws existing to such September 30, but from, on and after October 1 succeeding the effective date of such ordinance, no municipal taxes of such cities or towns shall be due or collectible except under the provisions of this article. Whenever in this article the words “city” or “cities” are used the same shall also include towns and all other municipalities.
*(Code 1940, T. 37, §699.)*
##### **§ 11-51-42** Levy of Taxes; Certification and Delivery to County Tax Assessor of Copy of Ordinance or Resolution Levying Taxes {#sec-11-51-42 omnilex-key=us-al-statutes--title-11--11-51-42}
It shall be the duty of the council, board of commissioners, or other governing body of any such municipality during the month of May of each year, by resolution or ordinance, to levy a tax on the property situated in such municipality for the next succeeding tax year at a rate in no event in excess of the constitutional limit authorized to be levied by such municipality on the value of such property as assessed for state taxation as shown by the books of assessment for the state and county tax year ending September 30 next succeeding the levy.
The levy so made by the council, board of commissioners, or other governing body of such municipality shall go into force and effect as of October 1 next succeeding the levy and shall become a lien on October 1 next succeeding such levy and not before. After such levy is made it shall be the duty of the mayor or other presiding officer or clerk or other clerical officer of such municipality on or before June 1 next succeeding the levy to certify and deliver to the tax assessor of such county in which such municipality is situated a copy of the resolution or ordinance passed by such council, board of commissioners, or other governing body in and by which taxes are levied for such municipality for the next succeeding tax year commencing on the next succeeding October 1; provided, that in case such council, board of commissioners, or other governing body shall fail any year thereafter to make such levy and give such notice then the levy for the preceding year shall be continued and the taxes shall be assessed in accordance with the provisions of this article.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §700.)*
##### **§ 11-51-43** County Tax Collectors to Collect Taxes {#sec-11-51-43 omnilex-key=us-al-statutes--title-11--11-51-43}
The tax collector of the counties in which such municipalities are situated shall collect all property taxes for such municipalities at the same time and in the same manner and under the same laws that state and county taxes are collected.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §701.)*
##### **§ 11-51-44** Lien for Taxes {#sec-11-51-44 omnilex-key=us-al-statutes--title-11--11-51-44}
Such municipalities shall have a lien from, on, and after October 1 of such municipal tax year upon each and every piece and parcel of property, real and personal, for the payment of municipal taxes for that tax year which may be assessed against the owners or upon such property for the use of such municipalities, which lien shall have priority over all other liens, except for state and county taxes, and this lien shall exist as to all land bid in by the state at tax sales for the annual tax thereafter assessed on the value of the property so purchased in the event of the tax title failing.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §702.)*
##### **§ 11-51-45** Indication by County Tax Assessor on Assessment List of Property Located in Municipalities and Ascertainment of Value Thereof {#sec-11-51-45 omnilex-key=us-al-statutes--title-11--11-51-45}
It shall be the duty of the tax assessor of each and every county in which such municipalities are situated on and after October 1 to show on the assessment list made or taken by him under the provisions of law applicable to state and county taxes what property, if any, described in the lists is situated within such municipalities, and the assessor shall ascertain the value of each item or subject of taxation situated in such municipalities separately from the value of each item not within such municipalities in such a way as to make of easy ascertainment the assessed value of property within such municipalities.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §703.)*
##### **§ 11-51-46** Preparation, Etc., of Assessment Forms, Etc., for Use by Tax Assessor {#sec-11-51-46 omnilex-key=us-al-statutes--title-11--11-51-46}
It shall be the duty of the Department of Revenue in preparing the form of assessment required by law to make the provisions for the assessor to indicate in the assessment list what property assessed, if any, is situated in such municipalities; and, in the abstract of duties placed on such form, the Department of Revenue may place instructions to the assessor such as will advise him of his duty in making assessments of property subject to municipal taxation.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §704.)*
##### **§ 11-51-47** Assessment Book of Tax Assessor {#sec-11-51-47 omnilex-key=us-al-statutes--title-11--11-51-47}
The book required to be made for the county tax assessor under the provisions of law shall also show the property subject to municipal taxes in such municipalities and shall be so ruled that the amount of such municipal taxes charged to each taxpayer or against property in favor of such municipalities for the next succeeding municipal tax year on the assessed value of the then current state tax year can be entered and extended and footed up and the footings carried from page to page and the total amounts thereof footed up so as to show the amount of taxes to be paid to such municipalities.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §705.)*
##### **§ 11-51-48** Computation and Entry in Assessment Book of Amount of Property Tax Owed by Taxpayer {#sec-11-51-48 omnilex-key=us-al-statutes--title-11--11-51-48}
After the municipal taxes have been levied by the council, board of commissioners, or other governing body of such municipalities and certified to the tax assessors of the counties in which the same are situated for the next succeeding tax year beginning on the next succeeding October 1, the assessor must compute the amount thereof at the rate levied by the council, board of commissioners, or other governing body of such municipalities as shown by the certified copy furnished the assessor of the resolution or ordinance passed which will be owing by each taxpayer on the assessed value of the property for the then current state tax year and enter the same in the books of assessment required to be made by the assessor under the provisions of law opposite the name of such taxpayer and foot up the same, the footings to be carried from page to page and the total amount thereof footed up. Such books shall appropriately show that the assessed value as extended by the assessor is for the municipal taxes for the next succeeding tax year based on the assessed value for state taxation for the then current tax year.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §706.)*
##### **§ 11-51-49** Preparation and Contents of Certificate of Assessment {#sec-11-51-49 omnilex-key=us-al-statutes--title-11--11-51-49}
The presiding officer of the county commission having jurisdiction over the tax assessments in such county and required to make certificates in regard thereto shall embrace in such certificate the amount of municipal taxes which shall be owing to such municipalities for the next succeeding tax year, which certificate, after certifying the amount of state, county, and special tax, shall continue in substance as follows: “The amount of municipal taxes for the City (or Town) of _____ for the next municipal tax year is $_____, the total amount, and this certificate shall be a warrant to the tax collector of _____ County to proceed to collect such municipal taxes in the manner directed by law when due.”
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §707.)*
##### **§ 11-51-50** Procedure for Collection of Taxes, Etc., by County Tax Collector Generally {#sec-11-51-50 omnilex-key=us-al-statutes--title-11--11-51-50}
All laws now in force or hereafter enacted in regard to the collection of state and county taxes and procedure with reference thereto and the enforcement of collection shall apply to and be in force as to such municipal taxes, except as such laws are changed by or in conflict with the provisions of this article, and the county tax collector shall collect or enforce the collection of such municipal taxes at the same time, in the same manner and way and as a part of one and the same collection as the collection of state and county taxes and all procedure incident to or in any wise connected with the collection of state and county taxes shall be equally applicable to the collection of said municipal taxes, and all such municipal taxes shall be collected in the same way and in the same proceedings as state and county taxes.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §730.)*
##### **§ 11-51-51** Preparation, Contents, and Effect of Receipt of Tax Collector {#sec-11-51-51 omnilex-key=us-al-statutes--title-11--11-51-51}
Upon collection of taxes by the tax collector, he shall embrace in his receipt, required to be given as provided by law in regard to state and county taxes, a statement of the amount of municipal taxes, if any, paid on real estate, and municipal taxes, if any, paid on personal property and, if any interest has accrued, a statement of the amount thereof paid. Such receipt shall also show the tax year for which the municipal tax is paid and the municipality for which the tax is paid, and such receipt shall be prima facie evidence that such taxpayer has paid his municipal taxes for the year stated on real and personal property and other subjects of taxation.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §708.)*
##### **§ 11-51-52** Report of Tax Collector; Payment of Taxes Collected to Municipal Treasurers; Receipt of Municipal Treasurers {#sec-11-51-52 omnilex-key=us-al-statutes--title-11--11-51-52}
The tax collector in making his monthly report as required to be made under the law in regard to state and county taxes shall embrace in each of such reports a statement setting forth the taxes collected by him for such municipalities during the preceding month and up to the date of such report subsequent to his preceding report, and a copy of each report shall be forwarded by the collector to the mayor or other presiding officer of such municipalities within five days after making such report. The collector must pay to the treasurers of such municipalities monthly at the same time he is required to make payment of taxes collected for the state and county all municipal taxes then due from him to such municipalities before that time collected.
The treasurers of such municipalities shall give the county tax collector a receipt in duplicate for the amount received, one of which duplicates shall be promptly forwarded to the Department of Revenue by the tax collector.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §709.)*
##### **§ 11-51-53** Annual Settlement by Tax Collector and Payment of Balance of Taxes Collected {#sec-11-51-53 omnilex-key=us-al-statutes--title-11--11-51-53}
The county tax collector must each year make a final settlement under oath with the treasurers of such municipalities at the time he is required to make settlement with the state and then pay over to the treasurers of such municipalities the balance of the municipal taxes due from him as such tax collector and not paid over prior to that date according to the tax books in the office of the judge of probate of that county in which such municipalities are situated.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §710.)*
##### **§ 11-51-54** Maintenance, Etc., of Separate Accounts and Funds for General and Special Taxes {#sec-11-51-54 omnilex-key=us-al-statutes--title-11--11-51-54}
The county tax collector shall not be required to make or keep a separate account of any special taxes collected for any such municipalities but shall keep such account only in gross of the total tax levied by the municipality.
If any part of the tax collected by the municipality is set apart by law for any special purpose, the treasurers or persons acting as such for such municipalities shall, as the law may direct, keep a separate account and distinct fund, as required by law, arrived at and set apart by the treasurers from the amount paid into the treasury by the tax collector in proportion as such special tax levied bears to the total taxes levied by such municipalities, and the special taxes received by such treasurers shall be disbursed by them as required by law.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §711.)*
##### **§ 11-51-55** Crediting of Tax Collector with Municipal Taxes on Assessment List and with Taxes in Litigation Generally {#sec-11-51-55 omnilex-key=us-al-statutes--title-11--11-51-55}
The county commission shall, in discharging the duties imposed upon it under the provisions of law in regard to state and county officers, credit the tax collector with municipal taxes contained in such assessment list and with taxes in litigation in the same manner and way and under the same conditions that credits are required to be given in favor of the collector of the county taxes shown in the assessment list.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §712.)*
##### **§ 11-51-56** Charging Against Tax Collector of Insolvent Municipal Taxes and Taxes in Litigation {#sec-11-51-56 omnilex-key=us-al-statutes--title-11--11-51-56}
Upon the allowance and credit to the county tax collector of insolvent taxes and taxes in litigation, the county commission shall in behalf of such municipalities state a new account against the tax collector for the amounts of insolvent municipal taxes and municipal taxes in litigation in the same manner and way as is provided in regard to insolvent county taxes and county taxes in litigation under the provisions of law in regard to state and county officers, and the collector shall remain charged with such sum until the liability is discharged under the provision of the law.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §713.)*
##### **§ 11-51-57** Preparation, Etc., of List of Insolvents, Etc {#sec-11-51-57 omnilex-key=us-al-statutes--title-11--11-51-57}
The presiding officer of the county commission shall embrace in the list of insolvent taxes allowed which he is required to furnish to the collector under the provisions of law in regard to state and county taxes and as a part of such list the name of each insolvent taxpayer of such municipal taxes and the amount of such municipal taxes and costs, if any, due from the insolvent to such municipalities.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §714.)*
##### **§ 11-51-58** Collection of Insolvent Taxes; Monthly Reports, Payment and Settlement of Same {#sec-11-51-58 omnilex-key=us-al-statutes--title-11--11-51-58}
It shall be the duty of the county tax collector to collect insolvent municipal taxes and make monthly reports, payment and settlement thereof with the city or town treasurer of each municipality in the same manner and way and at the same time that he is required to do in regard to state and county taxes under the provisions of law in regard to state and county offices.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §715.)*
##### **§ 11-51-59** Final Report by Tax Collector as to Uncollected Balances of Insolvent Taxes and Taxes in Litigation; Crediting of Tax Collector for Same {#sec-11-51-59 omnilex-key=us-al-statutes--title-11--11-51-59}
At the same time the county tax collector makes final report of the uncollected balance of insolvent taxes as provided by law for state and county taxes to the county commission, he shall embrace in and as a part of said report the uncollected balance of insolvent municipal taxes and taxes in litigation in the same manner and way as he is required to make for state and county taxes, including the taxes still in litigation, and the county commission shall allow the collector credit for insolvent municipal taxes and taxes in litigation in the same manner and way as the county commission is authorized to allow credits for insolvent county taxes and taxes in litigation.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §716.)*
##### **§ 11-51-60** Entry by Tax Collector in Docket Book of Municipal Taxes Due, Etc {#sec-11-51-60 omnilex-key=us-al-statutes--title-11--11-51-60}
The county tax collector shall embrace in the docket of lands made by him under the provisions of law in regard to state and county taxes the amounts due such municipalities both from known and unknown owners in the county, if any, in the same manner and way as he is required to do in regard to state and county taxes, giving the name of the municipality to whom due and stating the municipal tax year for which the taxes are due, in such manner and way as to show respectively the amounts of taxes due the state, the amounts due the county, and the amounts due such municipalities chargeable against the respective properties.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §717.)*
##### **§ 11-51-61** Proceedings for Sale of Land for Payment of Taxes - Decree of Sale {#sec-11-51-61 omnilex-key=us-al-statutes--title-11--11-51-61}
The decree for tax sales rendered by the probate judge under the provisions of law in regard to state and county taxes shall embrace taxes due to such municipalities, showing the aggregate amount due to the state, county, and municipality and showing what amount is for the municipality and the tax year of the municipality for which the same is due it.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §718.)*
##### **§ 11-51-62** Proceedings for Sale of Land for Payment of Taxes - Appeal by State from Decree of Sale {#sec-11-51-62 omnilex-key=us-al-statutes--title-11--11-51-62}
In case of an appeal by the state from a decree of tax sale under the provisions of law in regard to state and county taxes the appeal by the state shall be in behalf of such municipality the same as it is in behalf of the county, and all proceedings shall be under and in accordance with the provisions of law in regard to state taxes and county taxes.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §720.)*
##### **§ 11-51-63** Proceedings for Sale of Land for Payment of Taxes - Certificate of Purchase {#sec-11-51-63 omnilex-key=us-al-statutes--title-11--11-51-63}
The county tax collector shall embrace in his certificate to a purchaser under the provisions of law in regard to state and county taxes the amount of taxes due on the property described in the certificate to such municipality in the same manner and way as he is required to set forth in said certificate the amount due to the state and county.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §719.)*
##### **§ 11-51-64** Proceedings for Sale of Land for Payment of Taxes - Execution of Deed to Purchaser {#sec-11-51-64 omnilex-key=us-al-statutes--title-11--11-51-64}
The judge of probate of the county in executing a tax deed to a purchaser under the provisions of law in regard to state and county taxes shall by the deed convey to and vest in the grantee the lien and claim of such municipality as well as the lien and claim of the state and county.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §721.)*
##### **§ 11-51-65** Proceedings for Sale of Land for Payment of Taxes - Rights of Purchaser Where Tax Sale Invalid {#sec-11-51-65 omnilex-key=us-al-statutes--title-11--11-51-65}
An invalid tax sale shall pass to the purchaser the lien of the municipality in and to the land sold both as to taxes paid by said sale and as to the taxes subsequently paid by the purchaser to the same extent and in the same way that the lien of the state and county is passed to the purchaser under and in accordance with the provisions of law in regard to state and county taxes.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §723.)*
##### **§ 11-51-66** Proceedings for Sale of Land for Payment of Taxes - Duties of Tax Assessor as to Descriptive List {#sec-11-51-66 omnilex-key=us-al-statutes--title-11--11-51-66}
The county tax assessor shall calculate and enter municipal taxes owing to such municipalities on the descriptive lists coming to him under and in accordance with the provisions of law in regard to state and county taxes in the same manner and way that he is required to do as to state and county taxes, and all provisions, proceedings, and requirements as to state and county taxes shall be applicable to such municipal taxes.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §722.)*
##### **§ 11-51-67** Proceedings for Sale of Land for Payment of Taxes - Entry in Books of Department of Revenue of Municipal Taxes Due on Property; Amount for Which Property to Be Sold {#sec-11-51-67 omnilex-key=us-al-statutes--title-11--11-51-67}
The Department of Revenue shall enter in the books caused to be prepared by said department under the provisions and requirements of law, in regard to state and county taxes, the amount of municipal taxes due on the property described in the books in the same manner and way as it is required to enter the amount of state and county taxes due thereon, and in making sales of said property the amount at which the property is sold shall not be less than the whole amount of taxes, including such municipal taxes, interest, costs, and officer’s fees as provided for and required to be paid in the case of redemption of such land.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §725.)*
##### **§ 11-51-68** Proceedings for Sale of Land for Payment of Taxes - Payment of Municipality When Lands Bid in by State Sold by State {#sec-11-51-68 omnilex-key=us-al-statutes--title-11--11-51-68}
When the lands bid in by the state have been sold by the state, the Comptroller shall draw a warrant on the treasurer in favor of the municipality for the amount, if any, that the said municipality is entitled to and shall forward the same to such municipality.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §726.)*
##### **§ 11-51-69** Proceedings for Sale of Land for Payment of Taxes - Repayment of State When Sale of Lands Bid in by State Invalid and Purchase Money Refunded {#sec-11-51-69 omnilex-key=us-al-statutes--title-11--11-51-69}
When land which has been bid in by the state at tax sales has been sold by the state and the state refunds the purchase money on account of an invalid sale under and in accordance with the provisions of law in regard to state and county taxes, the Department of Revenue must ascertain the amount of such purchase money which has been paid to the municipality, if any, which amount it shall be the duty of the Comptroller to certify to the mayor or other governing head of the said municipality, and it shall be the duty of the mayor or other governing head of the municipality to present such claim at the next succeeding meeting of the council, board of commissioners, or other governing body of the said municipality and thereupon such council, board of commissioners, or other governing body shall order a warrant in favor of the state for such amount as the state is entitled to from the municipality, and the treasurer or acting treasurer shall forthwith forward the amount to the treasurer and report it to the Department of Revenue.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §727.)*
##### **§ 11-51-70** Proceedings When Tax Sale Cancelled {#sec-11-51-70 omnilex-key=us-al-statutes--title-11--11-51-70}
Whenever the judge of probate cancels a tax sale as to a private purchaser under and in accordance with the provisions of law in regard to state and county taxes, he must give to such purchaser a certificate to the mayor or other governing head of the municipality showing the amount of municipal taxes received by the municipality from such tax sale in the same manner and way as he is required by the provisions of law in regard to state and county taxes to give certificates showing the amount the state and county have received, and thereupon, when said certificate is presented to the mayor or other governing head of the municipality, it shall be the duty of the mayor or other governing head to present such certificate at the next meeting of the council, board of commissioners, or other governing body of the municipality, and the amount so paid to the municipality must be allowed by such council, board of commissioners, or other governing body, and an order shall be made directing the treasurer or acting treasurer to pay the same.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §728.)*
##### **§ 11-51-71** Disposition of Redemption Money When Lands Redeemed {#sec-11-51-71 omnilex-key=us-al-statutes--title-11--11-51-71}
The judge of probate at the time he is required to remit to the State Treasurer and to the county treasurer redemption money under the provisions of law in regard to state and county taxes shall also pay to the city or town treasurer or person designated by the council, board of commissioners, or other governing body of the municipality as treasurer the proportion of redemption money, if any, belonging to the municipality, and all of such provisions of law in regard to state and county taxes shall be applicable to such municipalities and municipal taxes in the same manner and way as to the state and county taxes.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §724.)*
##### **§ 11-51-72** Procedure for Recovery of Taxes Erroneously Paid {#sec-11-51-72 omnilex-key=us-al-statutes--title-11--11-51-72}
Any person or his agent or the heir or personal representative of such person who owns property subject to taxation in said municipality and who, through a mistake or error in the assessment or collection of taxes, has paid to the municipality through the county tax collector money that was not due from him for taxes may file a petition with the council, board of commissioners, or other governing body of said municipality asking that a warrant be drawn in his favor refunding to him the money paid and received by the municipality. The council, board of commissioners, or other governing body of said municipality shall examine into the facts and evidence offered by the petitioner in support of the allegations of his petition and, if proper and full proof of the same is made, the council, board of commissioners, or other governing body of said municipality must allow said claim to the amount of municipal taxes received and must order the treasurer or acting treasurer of the municipality to pay the same.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §729.)*
##### **§ 11-51-73** Official Bonds of Probate Judge, County Tax, Assessor and County Tax Collector {#sec-11-51-73 omnilex-key=us-al-statutes--title-11--11-51-73}
The official bond of the judge of probate and of the county tax assessor and of the county tax collector in the counties in which such municipalities are situated shall be and shall be held to be for the protection of such municipalities for the faithful discharge of the duties of such officers to such municipalities in the same manner and way as it is for the protection of the State of Alabama and the counties in which such municipalities are situated.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §731.)*
##### **§ 11-51-74** Commission of Tax Assessors and Tax Collectors {#sec-11-51-74 omnilex-key=us-al-statutes--title-11--11-51-74}
Except in counties where such commissions are fixed by local or special laws, the tax assessor and tax collector shall receive such compensation as may be fixed by the governing body of any municipality operating under the provisions of this article, not to exceed two percent for assessing and two percent for collecting; provided, that in Jefferson County the compensation of the tax assessor shall be one half of one percent for assessing and the compensation of the tax collector shall be one half of one percent for collecting. All of the said compensation of the said tax assessor and tax collector of Jefferson County shall be paid by said officers into the county treasury for the benefit of the county.
*(Acts 1931, No. 300, p. 337; Acts 1939, No. 57, p. 67; Code 1940, T. 37, §732; Acts 1943, No. 260, p. 233; Acts 1951, No. 868, p. 1502; Acts 1953, No. 263, p. 329.)*
#### **Article 2** License Taxes
#### **Division 1** General Provisions
##### **§ 11-51-90** Municipal Business Licenses; Branch Offices; Application {#sec-11-51-90 omnilex-key=us-al-statutes--title-11--11-51-90}
(a) All municipalities shall have the following powers:
(1) To license any exhibition, trade, business, vocation, occupation, or profession not prohibited by the Constitution or laws of the state which may be engaged in or carried on in the municipality.
(2) To fix the amount of licenses, the time for which they are to run, not exceeding one license year, to provide a penalty for doing business without a license, and to charge a fee not exceeding ten dollars ($10) for issuing each license. The issuance fee shall be increased every five license years by the Department of Revenue by an amount equal to the percentage increase, if any, in the U.S. Department of Labor’s Producer Price Index during that five-year period, rounded to the nearest dollar, with the base year being 2006. The Department of Revenue shall notify all municipalities and the Alabama League of Municipalities of any such fee increase no later than the November 30 preceding the license year for which the increase shall take effect. The failure of the Department of Revenue to so notify all municipalities and the Alabama League of Municipalities shall not, however, prohibit a municipality from increasing the issuance fee, if any increase is otherwise due pursuant to this subsection. A reasonable projection of the Producer Price Index for the months of November and December of the fifth year of the test period may be employed in this calculation.
(3) To establish a minimum, and in the discretion of the municipality, a maximum business license, with the amount of the minimum and, if appropriate, maximum business license and the applicable tax rate for each category to be established from time to time by the governing body of each municipality pursuant to this chapter.
(4) In the discretion of the municipality, to establish a small vendor business license, which shall not exceed one percent of the taxpayer’s gross receipts derived from within the municipality for the preceding license year; provided, however, that a municipality’s election not to establish a small vendor business license shall not preclude the municipality from requiring a taxpayer generating gross receipts of less than fifteen thousand dollars ($15,000) from within the municipality’s jurisdiction to purchase an annual business license. For purposes of this section, a “small vendor” shall be defined as a taxpayer that meets all the following criteria:
a. The taxpayer purchased a business license from the municipality with respect to the preceding license year and made a sale or provided services within the municipality thereof during each calendar quarter of the preceding license year.
b. The taxpayer’s gross receipts derived from within the municipality for the preceding license year did not exceed fifteen thousand dollars ($15,000).
c. The taxpayer did not qualify for the special delivery license provided for by Section 11-51-194.
(5) To require sworn statements as to the amount of capital invested, value of goods or stocks, or amounts of sales or gross receipts where the amount of the license is made to depend upon the amount of capital invested, value of goods or stocks, or amount of sales or gross receipts and to punish any taxpayer for failure or refusal to furnish sworn statements or for giving of false statements in relation thereto.
(b) The license authorized by subsection (a) as to taxpayers engaged in business in connection with interstate commerce shall be confined to that portion within the limits of the state and where the taxpayer has an office or transacts business in the municipality imposing the license. A taxpayer subject to the license authorized by subsection (a), that is engaged in business in more than one municipality, shall be permitted to account for its gross receipts so that the part of its gross receipts attributable to one or more branch offices will not be subject to the business license tax imposed on the principal business office required to obtain a business license. Branch office gross receipts are those receipts that are the result of business conducted at or from a qualifying branch office.
Notwithstanding the foregoing, in order to establish the existence of a qualifying branch office, the taxpayer shall meet all the following criteria:
(1) Demonstrate the continuing existence of an actual physical facility located outside the police jurisdiction of the municipality in which its principal business office is located, such as a retail store, outlet, business office, showroom, or warehouse, to which employees or independent contractors, or both, are assigned or located during regular normal working hours.
(2) Maintain books and records which reasonably indicate a segregation or allocation of the taxpayer’s gross receipts to the particular facility or facilities.
(3) Provide reasonable proof that separate telephone listings, signs, or other indications of its separate activity are in existence.
(4) Billing or collection activities, or both, relating to the business conducted at the branch office or offices are performed by an employee or other representative of the taxpayer who has such responsibility for the branch office, whether or not the representative is physically located at the branch office.
(5) All business claimed by a branch office or offices must be conducted by and through the office or offices.
(6) Supply proof that all applicable business licenses with respect to the branch office or offices have been issued.
(c) The power to license conferred by this division may be used in the exercise of the police power as well as for the purpose of raising revenue, or both.
(d) Each municipality shall accept the application form set forth below for the purpose of allowing a taxpayer to apply for a business license. The application form may, however, be altered to incorporate the different business license rates that municipalities are permitted to charge from time to time, and to reflect additional or different instructions to taxpayers that are not inconsistent with this chapter, including a required notice in cases where the municipality does not levy its business license tax on business done within its police jurisdiction. Each municipality shall mail or otherwise transmit a renewal reminder notice to each taxpayer that purchased a business license during the preceding license year, via regular U.S. mail addressed to the taxpayer’s last known address, on or before December 31 of the current license year. The failure of the municipality to comply with the preceding sentence shall not, however, preclude it from enforcing its business license tax laws against a taxpayer but shall preclude the municipality from assessing any fines or penalties otherwise due for late payment until 10 days after a renewal reminder notice has been mailed to the taxpayer at its last known address as indicated in the municipality’s records, or personally delivered to the taxpayer, and the taxpayer then fails or refuses to remit the business license tax due for such license year within the 10-day period. If the municipality mails a renewal reminder notice to the last known address of the taxpayer, as indicated in the municipality’s records, there shall exist a presumption that the municipality has complied with the above provisions. A municipality shall not be precluded from assessing fines and penalties otherwise due for late payment if the taxpayer does not notify the municipality of a change in address within 90 days after changing such address. Taxpayers shall notify the taxing jurisdictions in which they do business of a change of mailing address within 90 days after changing such address. In like manner, taxpayers shall notify the taxing jurisdictions in which they do business of a change in their federal employer identification number or Department of Revenue taxpayer identification number within a reasonable time after such number is changed.
UNIFORM MUNICIPAL BUSINESS LICENSE APPLICATION
(CONFIDENTIAL)
City/Town of ____, Alabama NOTE: The City/Town Imposes (or Does Not Impose, as appropriate) its Business License Tax Within its Police Jurisdiction Complete and Mail or Fax to:Applicant Complete This Box:CITY OF ANYWHEREFEINP.O. Box 0000ST. OF ALA TAX #ANYWHERE, ALFORM OF00000-0000OWNERSHIP (CHECK ONE)(000) 111-2222 ____ Sole Prop. ____Partnership Fax (000) 111-2222_____ Corporation ____ Prof. Assoc. ____ LLC ____ Other ________
Please Print or Type
SEE REVERSE SIDE FOR INSTRUCTION AND FURTHER INFORMATION
Application _________________________Type:NewOwner ChangeName ChangeLocation Change
Legal Business Name:
___________________________
Trade Name (If different from above):
___________________________
Business Activities (Brief description - example, retail clothing sales, wholesale food sales, rental of industrial equipment, computer consulting, etc.):_________________
Physical Address (Street, City, State, Zip):
___________________________
Mailing Address (Street, City, State, Zip):
___________________________
Telephone (Bus., Fax, and Home):
Email address:
____________________________
Name/Phone # for Contact Person:
____________________________
List the Following for Owner(s), Partners, or Officers (Attach separate sheet if necessary) (if Officers, list only the top five): NameResidence AddressSSN [if not publicly-traded company]Title ________________ ________________
Date Business Activity Initiated or Proposed in Anywhere
# of Employees in Anywhere
This application has been examined by me and is, to the best of my knowledge, a true and complete representation of the above named entity, and person(s) listed.
Date_____ Signature________
Title____________
THIS AREA FOR MUNICIPAL USE ONLY
ACCOUNT ID # ____________________
REVIEWED BY: ____________________
PHYSICAL LOCATION: CITY POLICE JURISDICTION OUTSIDE CORP LIMITS AND PJ
ZONING CLASSIFICATION
_______________________
BUILDING APPROVAL YES _____ NO ______ N/A
FIRE CODE
Tax types: _______ Sales/Seller’s Use ______ Consumer Use______ Rental_______Lodgings _______ Alcohol ________ Occupational __________ Tobacco _____ Gas/Motor Fuel ______ Business License ________
Tax Filing Frequency: Monthly ______ Quarterly _____ Annual _______ Other _______
Business Type:______ Retail ______ Wholesale______ Building Contractor _____Service ______ Professional _______ Manufacture ________Rental _______ Other ______
PLEASE READ THE FOLLOWING INFORMATION CONCERNING THE COMPLETION OF THIS FORM.
PLEASE COMPLETE ALL AREAS OF THE FORM EXCEPT FOR THE SHADED AREA AT THE BOTTOM.
FORM SHOULD BE TYPED OR PRINTED LEGIBLY.
FORM SHOULD BE DATED AND SIGNED BY AN OWNER, PARTNER, OR OFFICER OF THE BUSINESS.
FORM WILL INITIATE THE PROCESS FOR REGISTERING YOUR BUSINESS WITH THE MUNICIPALITY.
IF YOUR BUSINESS WILL HAVE A PHYSICAL LOCATION WITHIN THE MUNICIPALITY, PLEASE USE THAT ADDRESS ON THE FRONT OF THIS FORM. (Complete separate forms for each physical location in the municipality, if so required.)
AFTER COMPLETING THIS FORM IT CAN BE MAILED, SENT BY FAX, OR WHERE POSSIBLE, SENT BY ELECTRONIC MAIL TO THE MUNICIPALITY.
UPON RECEIPT OF THE COMPLETED FORM, THE MUNICIPALITY WILL PROVIDE ANY ADDITIONAL FORMS AND INFORMATION REGARDING OTHER SPECIFIC REQUIREMENTS TO YOU IN ORDER TO COMPLETE THE LICENSING PROCESS.
ALL LICENSE RENEWALS ARE DUE JANUARY 1 AND DELINQUENT AFTER JANUARY 31 (OR FEBRUARY 15), WITH THE FOLLOWING EXCEPTION:
INSURANCE COMPANY LICENSE
DUE JANUARY 1, DELINQUENT AFTER MARCH 1
This form is intended as a simplified, standard mechanism for businesses to initiate contact with a municipality concerning their activities within that municipality. A business license will be required prior to engaging in business. If a business intends to maintain a physical location within the municipality, there are normally zoning and building code approvals required prior to the issuance of a business license.
In certain instances, a business may simply be required to register with the municipality to create a mechanism for the reporting and payment of any tax liabilities. If that is the case, you will be provided the materials for that registration process.
The completion and submission of this form does not guarantee the approval or subsequent issuance of a license to do business. Any prerequisites for a particular type and location of the business must be satisfied prior to licensing.
SHOULD THERE BE ANY QUESTIONS CONCERNING THE COMPLETION OF THIS FORM OR THE LICENSING AND/OR REGISTRATION PROCESS, PLEASE CALL THE NUMBER ON THE FRONT OF THIS FORM TO OBTAIN MORE DETAILED EXPLANATION.
*(Code 1907, §1339; Acts 1909, No. 121, p. 121; Code 1923, §2154; Code 1940, T. 37, §735; Acts 1994, No. 94-644, §1; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-90.1** Definitions {#sec-11-51-90.1 omnilex-key=us-al-statutes--title-11--11-51-90.1}
As used in this article, the following terms shall have the following meanings:
(1) BUSINESS. Any commercial or industrial activity or any enterprise, trade, profession, occupation, or livelihood, including the lease or rental of residential or nonresidential real estate, whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, which is engaged in, or caused to be engaged in, within a municipality.
(2) BUSINESS LICENSE. An annual license issued by a taxing jurisdiction for the privilege of doing any kind of business, trade, profession, or any other activity in that jurisdiction, by whatever name called, which document is required to be conspicuously posted or displayed except to the extent the taxpayer’s business license tax or other financial information is listed thereon or unless the municipality affirmatively elects not to so require. However, municipal occupational licenses, municipal gasoline taxes, municipal tobacco taxes, or gross receipts taxes in the nature of a sales tax, or any other municipal tax now in existence or that may hereafter be adopted by a municipality pursuant to Section 11-51-90, or any other provision of state law other than an annual license, shall not be considered “business licenses.”
(3) BUSINESS LICENSE REMITTANCE FORM. Any business license return, renewal reminder notice, or other writing on which a taxpayer calculates its business license tax liability for all or part of the license year and remits the amount so calculated with the form.
(4) DEPARTMENT or DEPARTMENT OF REVENUE. The Alabama Department of Revenue, as created under Section 40-2-1, et seq.
(5) DESIGNEE. An agent of a taxing jurisdiction authorized to administer or collect, or both, the jurisdiction’s business license taxes, which may include another taxing jurisdiction, the Department of Revenue, or a “private auditing or collecting firm” as defined in Section 40-2A-3.
(6) GROSS RECEIPTS. A measure of any and all receipts of a business from whatever source derived, to the maximum extent permitted by applicable laws and constitutional provisions, to be used in calculating the amount due for a business license. Provided, however, that:
a. Gross receipts shall not include any of the following taxes collected by the business on behalf of any taxing jurisdiction or the federal government: All taxes which are imposed on the ultimate consumer, collected by the taxpayer, and remitted by or on behalf of the taxpayer to the taxing authority, whether state, local, or federal, including utility gross receipts taxes levied pursuant to Article 3, Chapter 21, Title 40; license taxes levied pursuant to Article 2, Chapter 21, Title 40; or reimbursements to professional employer organizations of federal, state, or local payroll taxes or unemployment insurance contributions; but no other deductions or exclusions from gross receipts shall be allowed except as provided in this article.
b. A different basis for calculating the business license may be used by a municipality with respect to certain categories of taxpayers as prescribed in Section 11-51-90.2.
c. For a utility or other entity described in Section 11-51-129, gross receipts shall be limited to the gross receipts derived from the retail furnishing of utility services within a municipality during the preceding year that are taxed under Article 3 of Chapter 21 of Title 40, except that nothing herein shall affect any existing contract or agreement between a municipality and a utility or other entity. The gross receipts derived from the furnishing of utility services shall not be subject to further business license taxation by a municipality.
d. Gross receipts shall not include dividends or other distributions received by a corporation, or proceeds from borrowings, the sale of a capital asset, the repayment of the principal portion of a loan, the issuance of stock or other equity investments, or capital contributions, or the undistributed earnings of subsidiary entities.
(7) LICENSE FORM. Any business license application form, renewal reminder notice, business license remittance form, or business license return by whatever name called.
(8) LICENSE OFFICER or MUNICIPAL LICENSE OFFICER. The municipal employee charged by the governing body of the municipality with the primary responsibility of administering the municipality’s license tax and related matters.
(9) LICENSE YEAR. The calendar year.
(10) MUNICIPALITY. Any town or city in this state that levies a business license tax from time to time. The term shall also include the town’s or city’s police jurisdiction, where the business license tax is levied in the police jurisdiction.
(11) PERSON. Any individual, association, estate, trust, partnership, limited liability company, corporation, or other entity of any kind, except for any nonprofit corporation formed under the laws of Alabama which is operated to enable municipalities that become members of such nonprofit corporation to finance or refinance capital projects and related undertakings, on a cooperative basis, and whose board of directors or other governing body consists primarily of elected officials of municipalities.
(12) TAXING JURISDICTION. Any municipality that levies a business license tax, whether or not a business license tax is levied within its police jurisdiction, or the Department of Revenue acting as agent on behalf of a municipality pursuant to Section 11-51-180, et seq., as the context requires.
(13) TAXPAYER. Any person subject to or liable under this chapter for any business license tax; any person required to file a return with respect to, or pay or remit the business license tax levied under this chapter or to report any information or value to the taxing jurisdiction; or any person required to obtain, or who holds any interest in, any business license issued by the taxing jurisdiction; or any person that may be affected by any act or refusal to act by the taxing jurisdiction under this chapter, or to keep any records required by this chapter.
(14) U.S.C. The applicable title and section of the United States Code, as amended from time to time.
(15) OTHER TERMS. Other capitalized or specialized terms used in Act 2006-586, and not defined above, shall have the same meanings ascribed to them in Section 40-2A-3 unless the context otherwise requires.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-90.2** Purchase of Business License; Classification of Taxpayers; Vehicle Decals; Determination of Gross Receipts; Construction with Other Provisions {#sec-11-51-90.2 omnilex-key=us-al-statutes--title-11--11-51-90.2}
(a) Every taxpayer required to purchase a business license under this chapter shall:
(1) Purchase a business license for each location at which it does business in the municipality, except as otherwise provided by the municipality.
(2) Except as provided in Section 11-51-193, with respect to taxpayers subject to state licensing board oversight, be classified into one or more of the following 2002 North American Industrial Classification System (“NAICS”) sectors and applicable sub-sectors, industry groups, industries, and U.S. industries thereunder:
SECTORNAICS TITLESUGGESTED BUSINESS LICENSE CODE GROUPING BY SAMPLE TOPIC OR CATEGORYBASIS FOR LICENSE CALCULATION111Crop ProductionAgriculture, farming, nursery, fruit, growersGross Receipts and/or Flat Rate112Animal ProductionAnimal, dairy, cattle, ranching, sheep, chickenGross Receipts and/or Flat Rate113Forestry and LoggingForestry, logging, timberGross Receipts and/or Flat Rate114Fishing, Hunting, and Trapping Fishing, hunting, supplies and equipmentGross Receipts and/or Flat Rate115Support for Agriculture and ForestryCotton ginning, farm management, post-harvest activitiesGross Receipts and/or Flat Rate211Oil and Gas ExtractionOil, gas, extraction, natural gas, crudeState Regulated [See, e.g. Section 40-20-2(c)]212Mining (except Oil and Gas)Mining activitiesGross Receipts and/or Flat Rate Where not State Regulated213Support for Mining ActivitiesSupport activities for oil and gas wellsGross Receipts and/or Flat Rate Where not State Regulated221UtilitiesUtilities, gas, electric, water, sewage, steam State Regulated (See Section 11-51-129)236Building, Developing and General ContractingConstruction, building, general, residential, subdivisionsGross Receipts and/or Flat Rate237Heavy ConstructionConstruction, heavy construction, highway, bridge, streetGross Receipts and/or Flat Rate238Special Trade ContractorsConstruction, all special tradesGross Receipts and/or Flat Rate311Food ManufacturingFood manufacturing, animal, grain, fruit, dairy, meat, seafoodGross Receipts, Flat Rate, or Value of Goods Produced312Beverage and Tobacco Products ManufacturingBeverage manufacturing, soft drink, bottled water, breweries, iceGross Receipts and/or Flat Rate Where Not State Regulated, or Value of Goods Produced313Textile MillsMills, textile, fabric, yarn, carpet, canvas, rope, twineGross Receipts, Flat Rate, or Value of Goods Produced314Textile Product MillsOther mill operations not covered in 313Gross Receipts, Flat Rate, or Value of Goods Produced315Apparel ManufacturingApparel manufacturing, hosiery, men, women, children, lingerieGross Receipts, Flat Rate, or Value of Goods Produced316Leather and Allied Product ManufacturingLeather manufacturing, shoes, luggage, handbag, related productsGross Receipts, Flat Rate, or Value of Goods Produced321Wood Products ManufacturingWood products, sawmills, wood, preservation, veneer, trusses, millworkGross Receipts, Flat Rate, or Value of Goods Produced322Paper ManufacturingPaper manufacturing, pulp, paper, converted productsGross Receipts, Flat Rate, or Value of Goods Produced323Printing and Related Support ActivitiesPrinting, lithographic, screen, quick, digital, books, handbillsGross Receipts, Flat Rate, or Value of Goods Produced324Petroleum and Coal Products ManufacturingPetroleum manufacturing, asphalt, roofing, paving, greaseGross Receipts, Flat Rate, or Value of Goods Produced325Chemical ManufacturingChemical manufacturing, wood, fertilizer, pesticide, paint, soap, otherGross Receipts, Flat Rate, or Value of Goods Produced326Plastics and Rubber Product ManufacturingPlastic and tire manufacture, pipe, hoses, belts, bottle, sheet, foamGross Receipts, Flat Rate, or Value of Goods Produced327Nonmetallic Mineral Product ManufacturingNonmetallic manufacturing, clay, glass, cement, lime, gypsum, otherGross Receipts, Flat Rate, or Value of Goods Produced331Primary Metal ManufacturingMetal manufacturing, iron, steel, aluminum, copper, other nonferrousGross Receipts, Flat Rate, or Value of Goods Produced332Fabricated Metal Product ManufacturingFabricated metal, cutlery, structural, ornamental, wire, machine shopsGross Receipts, Flat Rate, or Value of Goods Produced333Machinery ManufacturingMachinery manufacturing, farm, HVAC, office, industrial, engine, otherGross Receipts, Flat Rate, or Value of Goods Produced334Computer and Electronic Product ManufacturingComputers and electronics, peripherals, audio, video, circuit boardsGross Receipts, Flat Rate, or Value of Goods Produced335Electrical Equipment Appliance Component ManufacturingElectrical equipment, lighting, small appliance, battery, otherGross Receipts, Flat Rate, or Value of Goods Produced336Transportation Equipment ManufacturingTransportation manufacturing, auto, truck, trailer, motor home, ship, boat, motorcycleGross Receipts, Flat Rate, or Value of Goods Produced337Furniture and Related Products ManufacturingFurniture manufacturing, cabinets, office furniture, beds, kitchenGross Receipts, Flat Rate, or Value of Goods Produced339Misc. ManufacturingMisc. manufacturing, medical, dental, jewelry, sporting goods, toys, signs, all otherGross Receipts, Flat Rate, or Value of Goods Produced421Wholesale Trade, Durable GoodsWholesale trade-durable, motor vehicle, home furniture, machinery, equipmentGross Receipts and/or Flat Rate422Wholesale Trade, Non-Durable GoodsWholesale trade-nondurable, paper, apparel, grocery, dairy, farm, beveragesGross Receipts and/or Flat Rate441Motor Vehicle and Parts DealerMotor vehicles, automobiles, motorcycles, boats, parts, accessoriesGross Receipts and/or Flat Rate442Furniture and Home Furnishing StoresFurniture stores, home, floor, furnishings, window, special productsGross Receipts and/or Flat Rate443Electronics and Appliance StoresElectronic and appliance store, household, radio, television, computerGross Receipts and/or Flat Rate444Building Material and Gardening Equipment DealersBuilding materials, hardware, paint, home center, wallpaperGross Receipts and/or Flat Rate445Food and Beverage StoresFood and beverage stores, grocery, convenience, markets, liquor, beerGross Receipts and/or Flat Rate Where Not State Regulated446Health and Personal Care StoresHealth and personal care stores, drug, cosmetic, optical, health foodGross Receipts and/or Flat Rate447Gasoline StationsGasoline stations, filling stationsGross Receipts and/or Flat Rate Based on No. of Dispensers448Clothing and Accessories StoresClothing stores, men’s, women’s, children, infants, shoe, jewelry, luggageGross Receipts and/or Flat Rate451Sporting Goods, Hobby, Book, MusicSporting goods stores, hobby, toy, fish, gun, music, booksGross Receipts and/or Flat Rate452General Merchandise General merchandise stores, department, warehouse clubs, superstoresGross Receipts and/or Flat Rate453Miscellaneous Store RetailersMisc. store retailers, florist, gift, novelty, used, pets, art, tobaccoGross Receipts and/or Flat Rate454Nonstore RetailersNonstore retailers, electronic shopping, mail order, vending, direct sellingGross Receipts and/or Flat Rate481Air TransportationAir transportation, airline tickets, shipping, freight, chartersGross Receipts and/or Flat Rate Where Not State Regulated482Rail TransportationRail transportation, ticket offices, short line, freightState Regulated and/or Flat Rate483Water TransportationWater transportation, coastal, freight, inland, passenger, forwardersGross Receipts and/or Flat Rate Where Not State Regulated484Truck TransportationTruck transportation, terminal, local, long-distance, freightGross Receipts and/or Flat Rate Where Not State Regulated485Transit and Ground Passenger TransportationGround transportation, bus, taxi, limousine, charter, buggyGross Receipts and/or Flat Rate 487Scenic and Sightseeing TransportationScenic and sightseeing, land, water, air, specialGross Receipts and/or Flat Rate492Couriers and MessengersCouriers and messengers, services, deliveryGross Receipts and/or Flat Rate493Warehousing and StorageWarehouse and storage, household, refrigerated, distribution, specialGross Receipts, Flat Rate or Square Feet511Publishing Industries (except Internet)Publishing, newspapers, periodicals, databases, softwareGross Receipts and/or Flat Rate512Motion Picture and Sound Recording IndustryMotion pictures and videos, theatres, recording, studios, drive-inGross Receipts and/or Flat Rate515Broadcasting (except Internet)Broadcasting and radio, TVGross Receipts and/or Flat Rate Where Not State Regulated516Internet Publishing and BroadcastingPublications or broadcasting for Internet onlyGross Receipts and/or Flat Rate Where Not State Regulated517TelecommunicationsProviding, access to facilities for voice, data, text, sound and/or videoGross Receipts and/or Flat Rate Where Not State Regulated519Information Services and Data ProcessingProviding, storing, processing, and providing access to informationGross Receipts and/or Flat Rate522Credit Intermediation and Related ActivitiesCredit companies and activities related to credit and mediation of creditGross Receipts and/or Flat Rate Where Not State Regulated. Banks and savings and loan associations are state regulated and are subject to the license tax authorized under Section 11-51-130 and under Section 11-51-131, respectively.523Securities, Commodity, Other Financial ProductsInsurance companies, life, health, accident, and all other Gross Receipts and/or Flat Rate Where Not State Regulated524Insurance Carriers and Related ActivitiesInsurance companies, fire, marine, and fire casualtyState Regulated525Funds, Trusts, Other Financial VehiclesFunds, plans, and/or programs organized to pool securities or other assets for others, other than the Alabama Municipal Funding CorporationGross Receipts and/or Flat Rate Where Not State Regulated531Real EstateReal estate, offices, agents, brokers, developersGross Receipts and/or Flat Rate Where Not State Regulated532Rental and Leasing ServicesRental and leasing, auto, truck, equipment, tangible propertyGross Receipts and/or Flat Rate541Professions, Scientific, Technical ServicesAttorney, doctor, dentist, architect, engineer, vet, other professionsGross Receipts for outdoor/billboard advertising; otherwise flat rate and/or gross receipts551Management of Companies and EnterprisesManagement of companies and enterprises, offices, regional, corporateGross Receipts and/or Flat Rate Where Not State Regulated. For purposes of this chapter only, bank holding companies are state regulated and are subject only to the license tax amount authorized under Section 11-51-130(a)(12).561Administrative and Support ServicesAdministrative and support services, office, employment, answering, travelGross Receipts and/or Flat Rate Where Not State Regulated562Waste Management and Remediation ServicesWaste management, services, landfill, septic tank, companies, trucksGross Receipts and/or Flat Rate Where Not State Regulated611Educational ServicesEducational services, business, secretarial, computer, technical, sports, otherGross Receipts and/or Flat Rate Where Not State Regulated621Ambulatory Health Care ServicesHealth care services, mental, outpatient, HMO, diagnostic, blood, dialysis, otherGross Receipts and/or Flat Rate622HospitalsHospitals, surgical, substance abuse, psychiatric, specialtyGross Receipts and/or Flat Rate Based on No. of Patients or Beds623Nursing and Residential Care FacilitiesNursing and residential care facilities, elderly, day care, assisted livingGross Receipts and/or Flat Rate624Social AssistanceSocial assistance, child, shelters, vocational, emergencyGross Receipts and/or Flat Rate Where Not State Regulated711Performing Arts, Spectator SportsArts and sports, dance, musical, spectator, teams, tracks, promoters, agentsGross Receipts and/or Flat Rate712Museums, Historical Sites and SimilarMuseums, historical sites, zoos, botanical gardens, parks, special sites Gross Receipts and/or Flat Rate713Amusement, Gambling and RelatedAmusement and recreation, gambling, theme, arcade, golf, marinas, fitnessGross Receipts and/or Flat Rate Where Not State Regulated721AccommodationsAccommodations, hotel, travel, bed-and-breakfast, rooming houses, motelGross Receipts and/or Flat Rate722Food Services and Drinking PlacesFood service and drinking places, restaurant, caterers, bar, lounge, clubGross Receipts and/or Flat Rate811Repair and MaintenanceRepair and maintenance, automotive, electronic, commercial, residential, otherGross Receipts and/or Flat Rate812Personal and Laundry ServicesPersonal care services, hair, nail, skin, barber, beauty, diet, tanning, funeralsGross Receipts and/or Flat Rate910Category for: Vending machines, pool tables, amusement devices, etc.Gross Receipts and/or Flat Rate920Category for employees:Employees: as in number of employees used in license calculationGross Receipts, Flat Rate or Number of Employees930 Category for square feet:Square feet used for warehousing, large buildings, and other types Gross Receipts, Flat Rate or Number of Square Feet923Administration of Human Resource ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable924Administration of Environmental Quality ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable925Administration of Housing, Urban, Comm.General CategoryGross Receipts and/or Flat Rate Where Applicable926Administration of Economic ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable927Space Research and TechnologyGeneral CategoryGross Receipts and/or Flat Rate Where Applicable928National Security and International AffairsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable999Unclassified EstablishmentsGeneral CategoryGross Receipts or Flat Rate, Where Not State Regulated
(3) Notwithstanding any provision of this chapter to the contrary, a business license is not required for a person travelling through a municipality on business if the person is not operating a branch office as provided in Section 11-51-90, or doing business in the municipality.
(b) The taxing jurisdiction’s basis for determination of the business license tax for each sector shall correspond with the basis specified in subsection (a), such as gross receipts, flat rate, number of employees, or square footage. Provided, however, with respect to machines and other devices described in Sector 910 above, the municipality, in addition to a gross receipts-based or flat rate license, may require the taxpayer to purchase a decal for each machine or device located within the municipality. The charge for such decal shall not exceed the municipality’s actual cost of the decal. Provided further, the taxing jurisdiction shall have authority to issue one license, rather than multiple licenses, to a business in accordance with the taxing jurisdiction’s business license ordinance. To the extent that subsection (a) indicates that a business activity described in an NAICS sector is fully or partially state regulated, no taxing jurisdiction shall have authority to impose a business license tax in excess of the amount otherwise authorized by state law on the state regulated portion of such sector.
(c) The measure of a municipal business license based on gross receipts shall be based on the taxpayer’s gross receipts for the license year next preceding the current license year unless the taxpayer first began doing business in the municipality during the current license year, in which event the gross receipts shall be projected by the taxpayer for the remaining portion of the current license year. If the taxpayer’s actual gross receipts for the short license year are either more or less than projected, the taxpayer’s annualized gross receipts used in calculating its business license tax liability for the following license year shall be increased or decreased, respectively, by the amount of the difference. When annualizing the gross receipts for the short license year, the amount of the gross receipts projected by the taxpayer shall be divided by the number of full months the taxpayer was in business in the municipality and multiplied by 12; provided that each taxpayer shall be deemed to have been in business in the municipality for a minimum of one month for purposes of this calculation. If the taxpayer employs a fiscal year for federal and state income tax purposes, the taxpayer’s gross receipts may be determined, at the option of the taxpayer, from the federal income tax return of the taxpayer for the fiscal year next preceding the current license year, provided that the gross receipts reported thereon reasonably reflect the financial condition of the taxpayer as of the December 31 next preceding the current license year, and the taxpayer so notifies the municipality either prior to or simultaneously with filing the first business license remittance form using fiscal year data. The taxpayer’s use of fiscal year data, as provided above, shall constitute an irrevocable election to use fiscal year data with respect to the current and subsequent business license years unless the governing body of the municipality or its director of finance or other chief revenue officer or his or her designee consents otherwise. Provided, however, that nothing in this subsection shall prohibit a municipality from doing any of the following:
(1) Creating one or more sub-sectors in each of the NAICS sectors listed in subsection (a) above, subject to the limitations regarding the basis for license calculation and subsections (e) and (f) below.
(2) Levying and collecting any municipal tax, other than an annual business license, that now exists or that may hereafter be adopted pursuant to Section 11-51-90 or some other provision of state law, including, but not limited to, lodgings taxes, alcoholic beverage taxes, gasoline and motor fuel taxes, tobacco taxes, leasing or rental taxes, occupational taxes, sales and use taxes, and gross receipts taxes in the nature of a sales tax.
(3) Allowing or requiring a taxpayer to purchase a minimum business license with respect to the short license year following 90 days of operations in the municipality, based on the amount which bears the same relationship to the actual amount of gross receipts during such preceding license year as the entire license year bears to the number of days during which the taxpayer was operating during such preceding license year. If the taxpayer did not commence operations until after the first day of the calendar year, the municipality may by ordinance require the taxpayer to remit the business license tax at the end of such 90 day period, or on December 31 of the current license year, whichever occurs first.
(d) For purposes of subsection (a), the terms “state regulated” or “where not state regulated,” when used with reference to a business listed in one of the NAICS sectors and any subsequently created sub-sector, mean and refer to other provisions of the Code of Alabama 1975, that deal with or limit the taxation of the respective business by municipalities, none of which are amended or repealed by Act 2006-586.
(e) Notwithstanding anything in this chapter to the contrary, the licenses authorized by Sections 11-51-130 and 11-51-131 are in lieu of any other business licenses authorized by this chapter, and banks and savings and loan associations subject to either of those sections are not subject to the business license taxes otherwise authorized by this chapter, regardless of whether one or more NAICS sectors or sub-sectors describe or include any business or activity of such bank or savings and loan association. Any municipal business license tax applicable to a bank holding company, as defined in Section 5-13B-2(f), shall not exceed the amount set forth in the schedule provided for banks under Section 11-51-130(a)(12). Provided, however, if a bank holding company is engaged in additional lines of business that do not fall within NAICS Sectors 551 or 522 and which are not considered financial in nature, as defined under federal banking law, the bank holding company shall take out and pay for a business license for each additional line of business so assessed by the municipality; provided further that for each separate additional business license, the gross receipts taxable under such license shall be only those gross receipts of the bank holding company which arise under the license for the respective additional line of business and not from a financial activity, as defined under federal banking law, or from an activity within NAICS Sector 551 or 522. This subsection (e) shall not apply to any subsidiary of a bank or savings and loan association.
(f) Notwithstanding any provision of this chapter to the contrary, each of the several municipalities in this state may annually assess and collect from each utility or other entity described in Section 11-51-129 only one municipal business license tax for all lines of business classified in NAICS Sector 221, and the levy, collection, and assessment of the single business license tax shall be subject to the provisions and limitations of Section 11-51-129 and Section 11-51-90.1. If any such utility or entity described in Section 11-51-129 is engaged in one or more additional lines of business that do not fall within NAICS Sector 221, and if the additional line of business of such utility or other entity is so assessed by the municipality, then the utility or other entity shall take out and pay for a business license for that additional line of business, even if the utility or other entity does not meet the requirement in Section 11-51-95 that it must derive more than 10 percent of its gross receipts from the business falling within the NAICS sector during the preceding license year; provided however, that for each separate, additional business license, the gross receipts taxable under such license shall be only those gross receipts of the utility or other entity from business done within the municipality and which arise within the line of business which is the subject of the respective license.
*(Act 2006-586, p. 1548, §3; Act 2018-411, §1.)*
##### **§ 11-51-90.3** Limitation on Imposition of Business License Tax on Rental of Residential Real Estate {#sec-11-51-90.3 omnilex-key=us-al-statutes--title-11--11-51-90.3}
(a) Notwithstanding anything in this chapter to the contrary, a municipality may not impose a business license tax on the rental of residential real estate on a per unit basis unless the municipality was imposing a business license tax on residential real estate on a per unit basis prior to January 1, 2014.
(b) As used in this section, the term “business license tax” does not include a privilege or license tax in the nature of a lodging tax. This section shall not be construed to prohibit a municipality or related municipal board or entity from imposing fees on commercial or residential developments or projects within the jurisdiction of the municipality. This section shall not apply to an Alabama improvement district organized pursuant to Chapter 99A of this title, a capital improvement cooperative district organized pursuant to Chapter 99B of this title, an industrial development board, or a water and sewer board.
*(Act 2014-15, p. 49, §1.)*
##### **§ 11-51-90.4** Electronic Processing and Recordation of Business License Renewals {#sec-11-51-90.4 omnilex-key=us-al-statutes--title-11--11-51-90.4}
(a) A municipality may develop and implement an electronic process for the processing and recordation of business license renewals by business and nonprofit entities.
(b)(1) A municipality may contract with a vendor to provide electronic processing services which may include, but are not limited to, the online filing of forms, online recording, payment of fees through credit or debit cards, and any other service related to the administration of the electronic process, as determined by the municipality.
(2) The municipality may also develop a certification process to allow a third party to provide these electronic processing services.
(c) All recording fees, whether established by general or local law, shall be collected by the vendor and the fees applicable to the municipality, including all data associated with the local recording fees, shall be remitted by the vendor to the municipality no less than twice per month.
(d) A municipality may continue to provide filing services pursuant to current procedures and is in no way bound or obligated to participate in the electronic process for the recordation of filing activities as provided for by this section.
(e) A municipality shall ensure that the electronic process created under this section does all of the following:
(1) Determines if any additional forms, including those not specific to the municipality, are required during submission, and informs a user about those forms and how to obtain them.
(2) Utilizes an electronic application process that will remove the physical mailing process for business licenses within municipalities participating in the program, and allows business license renewals and the accompanying appropriate fees to be submitted electronically.
(3) Allows business license registration and renewals to be completed and submitted electronically.
(4) Once a business license has been approved, allows the municipality to deliver the official business license to the business license applicant either electronically or through standard postal mail, at the preference of the applicant.
(5) Includes an Internet webpage that generally informs users about business licensure requirements in the municipality and in the State of Alabama and guides them through the specific steps of the electronic business licensure process.
(f) A licensure process administered by a municipality as provided in this section shall satisfy any and all business and nonprofit license renewal requirements applicable to the participating municipality, whether prescribed by general or local law, and shall fulfill any and all statutory requirements of a municipality as it relates to renewal of licensure of business entities, including nonprofits.
(g) Any business that pays business license fees in 100 or more municipalities in the State of Alabama may elect to obtain, renew, and submit the payment of fees for a municipal business license pursuant to the current municipal procedures, including the submission of license forms and the payment of fees through the mail or by hand-delivery.
*(Act 2019-528, §§1-4.)*
##### **§ 11-51-91** Licenses for Business, Etc., Conducted Outside Corporate Limits of Municipality {#sec-11-51-91 omnilex-key=us-al-statutes--title-11--11-51-91}
(a) Any municipality with an ordinance in effect on January 1, 2021, to fix and collect licenses for any business, trade, or profession done within the police jurisdiction of the municipality but outside the corporate limits thereof may continue to do so after July 26, 2021; provided, that the amount of the licenses shall not be more than one half the amount charged and collected as a license for like business, trade, or profession done within the corporate limits of the municipality, fees and penalties excluded; and provided further, that the total amount of the licenses outside the corporate limits shall not be in an amount greater than the cost of services provided by the municipality within the police jurisdiction outside the corporate limits. All licenses adopted pursuant to this section shall be assessed to all businesses, trades, or professionals within the police jurisdiction.
(b) No calculation shall be required to be made by the municipal officials or license officer for the cost of services to any particular business or classification of businesses within the police jurisdiction so long as the total amount of revenues from the licenses collected in the police jurisdiction is not an amount greater than the cost of services provided by the municipality to the police jurisdiction.
(c)(1) On or before December 31, 2021, any municipality collecting license revenue or other taxes and fees within its police jurisdiction outside the corporate limits shall notify the Department of Examiners of Public Accounts that it collects license revenue and other taxes and fees in its police jurisdiction outside the corporate limits. Beginning March 1, 2022, each municipality collecting license revenue and other taxes or fees within its police jurisdiction outside the corporate limits shall prepare an annual report which shall include an accounting of all license revenues and other taxes or fees collected in the police jurisdiction outside the corporate limits during the previous fiscal year and provide a list of the services provided by the municipality and a list of providers within the police jurisdiction outside the corporate limits. If the municipality provides police or fire protection within the police jurisdiction, the report shall include the following information:
a. The total annual budget for each police department and fire department within the municipal corporate limits.
b. The total number of calls responded to by each police or fire department within the municipal corporate limits and the total number of calls responded to by each police or fire department within the police jurisdiction. For the police department, the number should include the number of calls responded to as well as the number of citations and arrests made.
(2) A copy of the annual report, which shall be completed by March 1 for the previous fiscal year, shall be forwarded to the Department of Examiners of Public Accounts and shall be made available to the public.
(3) If a municipality fails to file a report as provided in subdivision (1) within 12 months of the report being due, the municipality may not collect any further license revenue or any other taxes or fees in the police jurisdiction outside the corporate limits.
(4) The Department of Examiners of Public Accounts shall provide written notice to the Department of Revenue of any municipality prevented from the further collection of license revenue or other taxes or fees as provided in subdivision (3), within 30 days of the expiration of the time period provided for in subdivision (3).
(5) The Legislative Committee on Public Accounts, by majority vote, shall have the authority to direct the Examiners of Public Accounts to perform an audit of any municipality collecting revenue in its police jurisdiction outside the corporate limits. A municipality shall not be responsible for the cost of the audit so directed unless it is determined by the Examiners of Public Accounts that a municipality is not in compliance with the requirements of subsections (a) and (b).
(d) When the place at which any business, trade, or profession is done or carried on is within the police jurisdiction of two or more municipalities which levy the licenses thereon authorized by this section, the licenses shall be paid to, issued, and collected by that municipality only whose boundary measured to the nearest point thereof is closest to the business, trade, or profession. This section shall not have the effect of repealing or modifying the limitations in this article relating to railroad, express companies, sleeping car companies, telegraph companies, telephone companies, and public utilities and insurance companies and their agents. This section shall be given a liberal construction to effectuate its purpose and meaning.
(e) Act 2021-297 does not affect any public or private contracts, or any mutual aid agreements between law enforcement, fire service, public safety, or emergency service agencies.
*(Acts 1927, No. 580, p. 674; Acts 1932, Ex. Sess., No. 235, p. 240; Code 1940, T. 37, §733; Acts 1943, No. 502, p. 477; Acts 1986, No. 86-427, p. 790; Act 2006-586, p. 1548, §2; Act 2015-361, p. 1101, §1; Act 2021-297, §§3, 4.)*
##### **§ 11-51-92** Licenses Based on a Flat Rate, Taken Out After July 1; Transfer of Licenses {#sec-11-51-92 omnilex-key=us-al-statutes--title-11--11-51-92}
(a) In case the license of any business, trade, occupation, or profession is based on a flat rate and is taken out after July 1, only one half of the license shall be charged and collected, except for those subjects for which daily, weekly, monthly, quarterly, or semiannual licenses are provided by law.
(b) No license shall be transferred except with the consent of the council or other governing body of the municipality or of the director of finance or other chief revenue officer or his or her designee, and no license shall be transferred to reflect a physical change of address of the taxpayer within the municipality more than once during a license year and never from one taxpayer to another. Provided that a mere change in the name or ownership of a taxpayer that is a corporation, partnership, limited liability company, or other form of legal entity now or hereafter recognized by the laws of Alabama shall not constitute a transfer for purposes of this chapter, unless (1) the change requires the taxpayer to obtain a new federal employer identification number or Department of Revenue taxpayer identification number or (2), in the discretion of the municipality, the subject license is one for the sale of alcoholic beverages. Nothing in this section shall prohibit a municipality from requiring a new business license application and approvals for an alcoholic beverage license.
*(Code 1907, §1343; Code 1923, §2166; Code 1940, T. 37, §753; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-93** Violations; Penalties {#sec-11-51-93 omnilex-key=us-al-statutes--title-11--11-51-93}
(a) It shall be unlawful for any person, taxpayer, or agent of a person or taxpayer to engage in businesses or vocations in a municipality for which a license may be required without first having procured a license therefor. A violation of this division or of an ordinance passed hereunder fixing a license shall be punishable by a fine fixed by ordinance, not to exceed the sum of five hundred dollars ($500) for each offense, and if a willful violation, by imprisonment, not to exceed six months, or both, at the discretion of the court trying the same. Each day shall constitute a separate offense.
(b) In addition to the penalties prescribed by subsection (a), if a taxpayer fails to pay any business license tax owed to a taxing jurisdiction on or before the date prescribed therefor, there shall be assessed a penalty of 15 percent of the business license tax required to be paid with the license form. There shall be assessed a penalty of 30 percent of any business license tax required to be paid with the license form if the business license tax and any assessed penalties are not paid within 30 days of the due date prescribed in the preceding sentence. Such penalties shall not be cumulative.
(c) Notwithstanding the foregoing, no fine or penalty under this section shall be assessed, or if assessed, shall be waived, if reasonable cause exists. “Reasonable cause” shall mean: The death or major illness of or an accident involving a sole proprietor causing serious bodily injury that in either case resulted in the sole proprietor being unable to purchase the license or operate his or her business during the 10 days preceding the due date for the license; natural disaster, fire, explosion, or accident that caused the closing or temporary cessation of the business of the taxpayer during the 10 days preceding the due date for the license; or reliance on the erroneous advice of an employee or agent of the revenue department of the taxing jurisdiction or its designee given in writing or by electronic mail. The municipality may, but is not required to, waive the penalty for other reasons, including, but not limited to, the taxpayer’s reliance on erroneous but good faith advice from its tax adviser or on erroneous oral advice from an employee or agent of the revenue department of the taxing jurisdiction or its designee. The burden of proving reasonable cause shall be on the taxpayer, and a determination by the taxing jurisdiction that reasonable cause does not exist shall be reversed only if that determination was made arbitrarily and capriciously.
(d) All penalties and interest administered by the taxing jurisdiction pursuant to this section and Section 11-51-192 shall be assessed and collected in the same manner as business license taxes.
*(Code 1907, §1344; Code 1923, §2167; Code 1940, T. 37, §754; Acts 1994, No. 94-644, §1; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-94** License Designates Place of Business, Etc., and Authorizes Conduct Thereof Only at Place Designated; Change of Place of Business, Etc.; Uniformity of License Tax; Classification, Etc., of Licenses in Certain Cities {#sec-11-51-94 omnilex-key=us-al-statutes--title-11--11-51-94}
Any person desiring to engage in any trade, business, profession, or occupation for which a license is or may be required shall designate the place at which such trade or business or occupation or profession is carried on, and the license to be issued under this division shall designate such place, and such license shall authorize the carrying on of such trade, business, occupation, or profession only at the place designated unless such person shall be granted permission by the council or other governing body to move his place of business, trade, occupation, or profession to another place in the city or town, and in that event such permission shall be endorsed by the clerk on such license.
The same license shall be charged and collected for all portions of the city or town. In cities of 100,000 or more population, according to the last federal census, the governing bodies may grade or classify licenses according to location of businesses or occupations engaged in. Nothing contained in this section shall authorize the increase of any license tax of such municipal corporation, which is now or may hereafter be fixed by statute.
*(Code 1907, §1345; Acts 1915, No. 313, p. 336; Code 1923, §2168; Code 1940, T. 37, §755.)*
##### **§ 11-51-95** Taxpayer to Be Licensed for Each Applicable Line of Business {#sec-11-51-95 omnilex-key=us-al-statutes--title-11--11-51-95}
(a) Any taxpayer engaged at one location in more than one line of business falling within separate NAICS sector or sub-sectors, for which a business license is or may be required by the municipality in accordance with this chapter, shall take out and pay for a license for each separate NAICS sector or sub-sectors from which the taxpayer derived more than 10 percent of its gross receipts during the preceding license year. Provided, however, that for each business license, the gross receipts which shall be taxed with regard to such license shall, except as provided in subsection (c) and other provisions of Act 2006-586, be only those gross receipts which arise within the line of business which is the subject of the license.
(b) Notwithstanding subsection (a), a municipality may, in its discretion as evidenced by adoption of an ordinance, increase the 10 percent gross receipts threshold to no more than 35 percent.
(c) Nothing herein shall be construed to exempt the gross receipts derived from one or more additional lines of business of the taxpayer if those gross receipts do not exceed the required threshold for the purchase of a second or multiple business license. Instead, those gross receipts shall be included in the business license for the taxpayer’s primary line of business.
*(Code 1907, §1346; Code 1923, §2169; Code 1940, T. 37, §756; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-96** Lien for License Taxes {#sec-11-51-96 omnilex-key=us-al-statutes--title-11--11-51-96}
On all property, both real and personal, used in any exhibition, trade, business, vocation, occupation, or profession for which a license is or may be required, municipal corporations shall have a lien for such license, which lien shall attach as of the date the license is due and shall be superior to all other liens, except the lien of the state, county, and municipal corporations for taxes and the lien of the state and county for licenses. Such lien may be enforced by attachment.
*(Acts 1919, No. 113, p. 97; Code 1923, §2172; Code 1940, T. 37, §759.)*
##### **§ 11-51-97** Licensing, Etc., of Sales at Auctions, in Public Places or on Streets of Merchandise, Medicines, Etc {#sec-11-51-97 omnilex-key=us-al-statutes--title-11--11-51-97}
*[Repealed]*
Repealed by Act 98-271, p. 440, §3 effective July 1, 1998.
*(Code 1907, §1338; Code 1923, §2153; Code 1940, T. 37, §734.)*
##### **§ 11-51-98** License Tax on Vending and Weighing Machines - Authorized Generally {#sec-11-51-98 omnilex-key=us-al-statutes--title-11--11-51-98}
The governing body of each city and town within the State of Alabama is authorized and empowered to levy and collect from every person, firm, company, corporation or association, receiver or trustee, but not a governmental subdivision, who possess and operate or who maintain for operation by others vending machines for vending gum, candy, cigarettes, milk, soft drinks, or any other type or kind of article or on which a person is weighed or on which music is played a license in amounts that are reasonable at the discretion of such governing bodies authorized hereby to levy and collect same for each such vending machine so possessed and operated or that is maintained for operation by others within the limits of such city or town and within the police jurisdiction thereof; provided, however, that such city or town shall not be authorized or empowered to levy or collect a license from any such person, firm, company, corporation or association, receiver or trustee who possesses and operates or who maintains for operation by others coin-operated gas meters, coin-operated telephones, machines vending postage stamps, or other necessary articles on a nonprofit basis for emergency use only by the employees of such person, firm, or corporation; provided further, that in cases where vending machines vending merchandise are located in industrial plants or on private property for use of employees, the person, firm, or corporation operating such vending machines shall be entitled to an occupational license, the fee for which shall be based on a percentage of the gross receipts of the sale of such merchandise.
*(Acts 1947, No. 393, p. 290, §1.)*
##### **§ 11-51-100** Regulation and Control of Vending Machines on Which Music Is Played {#sec-11-51-100 omnilex-key=us-al-statutes--title-11--11-51-100}
The governing body of such city or town may regulate and control the location and use of vending machines on which music is played by licensing the same.
*(Acts 1947, No. 396, p. 291, §2.)*
##### **§ 11-51-101** Licensing, Etc., of Carts, Wagons, Carriages, Etc {#sec-11-51-101 omnilex-key=us-al-statutes--title-11--11-51-101}
Any city or town shall have the power to regulate and license the use of carts, drays, wagons, coaches, omnibuses, and every description of carriages and vehicles kept for hire and to license and regulate the use of the streets of the town or city by persons who use vehicles or solicit or transact business thereon.
*(Code 1907, §1340; Code 1923, §2163; Code 1940, T. 37, §750.)*
##### **§ 11-51-102** Licensing, Etc., of Theatres, Parks, Shooting Galleries, Etc.; Closing of Houses of Amusement or Places for Sale of Firearms, Etc {#sec-11-51-102 omnilex-key=us-al-statutes--title-11--11-51-102}
Any city or town shall have the power to license, tax, regulate, restrain, or prohibit theatrical and other amusements, billiard and pool tables, nine or tenpin alleys, box or ball alleys, shooting galleries, theatres, parks, and other places of amusement when, in the opinion of the council or other governing body, the public good or safety demands it, to refuse to license any or all such businesses and to authorize the mayor or other chief executive officer by proclamation to cause any or all houses or places of amusement or houses or places for the sale of firearms or other deadly weapons to be closed for a period of not longer than the next meeting of the city or town council or other governing body.
*(Code 1907, §1341; Code 1923, §2164; Code 1940, T. 37, §751.)*
##### **§ 11-51-103** Revocation of Licenses of Houses of Public Entertainment or Places Where Firearms, Etc., Kept for Sale {#sec-11-51-103 omnilex-key=us-al-statutes--title-11--11-51-103}
The city or town council or other governing body shall have the right and power to revoke and cancel any and all licenses issued to any house of public entertainment or house or place where firearms or other deadly weapons are kept for sale when, in their judgment, the public safety, peace, good order, or decency may require it and when the owner thereof or person operating the same shall have been convicted of any violation of the city or town ordinances regulating such business.
*(Code 1907, §1342; Code 1923, §2165; Code 1940, T. 37, §752.)*
##### **§ 11-51-104** Licensing and Taxation, Etc., of Amusements, Athletic Games, and Use of Public Parks, Etc {#sec-11-51-104 omnilex-key=us-al-statutes--title-11--11-51-104}
The council shall have power to license and tax, permit and regulate and restrain or prohibit all kinds of amusements and all athletic games and the use of public parks and places of resort within the corporate limits and within the police jurisdiction of the several cities or towns and shall prescribe the places and the manner and method of regulating and conducting all such amusements and games and fix the time when all or any of the places referred to may be opened or shall be closed, not inconsistent with the laws of the state.
*(Code 1907, §1347; Code 1923, §2170; Code 1940, T. 37, §757.)*
##### **§ 11-51-105** Municipalities Not to Charge Farmers for Sale, Etc., of Farm Products {#sec-11-51-105 omnilex-key=us-al-statutes--title-11--11-51-105}
It shall be unlawful for any municipality to charge the farmers or others engaged in the production of farm products of whatever nature any license or fee for the sale or other disposition of said articles produced by them at any place.
*(Acts 1915, No. 735, p. 846; Code 1923, §2171; Code 1940, T. 37, §758.)*
#### **Division 2** Schedules
##### **§ 11-51-120** Insurance Companies - Fire and Marine Insurance Companies {#sec-11-51-120 omnilex-key=us-al-statutes--title-11--11-51-120}
No license or privilege tax or other charge for the privilege of doing business shall be imposed by any municipal corporation upon any fire or marine insurance company doing business in such municipality except upon a percentage of each $100.00 of gross premiums, less return premiums, on policies issued during the preceding year on property located in such municipality. Such percentage shall not exceed four percent on each $100.00 or major fraction thereof of such gross premiums, and no credit or deduction of any kind shall be allowed or made on account of the cost of reinsurance by such company in a company not authorized to do business in this state.
Any municipality may charge a flat minimum license at the beginning of each year for new companies doing business therein on which there shall be an adjustment at the expiration of such year upon such percentage as may be fixed by said municipality, but such percentage shall not exceed four percent of the gross premiums, less return premiums, collected by such companies on policies issued during the preceding year in such municipality.
*(Acts 1935, No. 194, p. 256; Code 1940, T. 37, §739.)*
##### **§ 11-51-121** Insurance Companies - Insurance Companies Other Than Fire and Marine Insurance Companies {#sec-11-51-121 omnilex-key=us-al-statutes--title-11--11-51-121}
(a) No license or privilege tax or other charge for the privilege of doing business shall be imposed by any municipal corporation upon any insurance company, other than fire and marine insurance companies, doing business therein or its agents which shall exceed for the company and its agents the following amounts:
The amount specifically named in the schedule contained in this section shall be payable at the time and in the manner that other privilege or license taxes are required to be paid by the laws, ordinances, or charters of the several cities and towns, and the amount of said tax based on gross premiums shall be paid as provided in this article.
(b) Upon the payment or tender of the amount specifically named in the schedule in subsection (a) of this section to any city or town, any insurance company, other than fire and marine insurance companies, authorized to do business in this state, shall be permitted to do business in said city or town through its agents, resident or soliciting, duly appointed in writing, which agents shall not be subject to or required to pay any privilege or occupation tax to said city or town for representing said company or soliciting business for it. On January 1, or within 60 days thereafter, of each year, each insurance company, other than fire and marine insurance companies, which did any business in, or wrote any insurance for any citizen or resident of, any city or town in this state during any part of the next preceding year shall, if a license or privilege tax is imposed by said city or town on any insurance company, other than fire and marine insurance companies, furnish the mayor or other executive head of said city or town a statement in writing, verified by the affidavit of the president, vice-president, or secretary of the company, which statement shall set out and show the full and true amount of gross premiums, less return premiums, received during the preceding year, on all policies of such insurance issued in such city or town during the said preceding year, and shall accompany said statement with the amount of license due from said company. Failure to furnish said statement or to pay such amount to any city or town, as herein required, shall, if so provided by the ordinances of the city or town, cause a forfeiture of the right of the company so failing or its agents, to continue to do business in said city or town until said statement shall have been furnished and said sum shall have been paid, and shall subject the company and its agents to such penalties as the ordinances of said city or town may prescribe, not exceeding the penalties imposed upon other corporations or persons for failure to pay license or privilege taxes.
*(Code 1923, §2155; Acts 1935, No. 194, p. 256; Code 1940, T. 37, §736.)*
##### **§ 11-51-122** Insurance Companies - Provision of Statement of Gross Premiums, Etc., and Payment of License Tax; Effect of Failure to File Statement or Pay Tax {#sec-11-51-122 omnilex-key=us-al-statutes--title-11--11-51-122}
On or before March 1 of each year, each insurance company which did any business in any municipality in this state during any part of the preceding year shall, if a license or privilege tax is imposed by said municipality on such insurance company, furnish the mayor or a revenue official, of such municipality a statement in writing duly certified showing the full and true amount of gross premiums received during the preceding year as provided under this article and shall accompany such statement with the amount of license tax due according to Sections 11-51-120 and 11-51-121.
Failure to furnish such statement or to pay such sum shall subject the company and its agents to such penalties as the ordinance of such municipality may prescribe for doing business therein without a license.
*(Acts 1935, No. 194, p. 256; Code 1940, T. 37, §738; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-123** Insurance Companies - Company May Engage in Business in Municipality Upon Payment or Tender of Tax; Agents Not to Be Subject to Further Privilege or Occupational Taxes {#sec-11-51-123 omnilex-key=us-al-statutes--title-11--11-51-123}
Upon the payment or tender of the amount named in such ordinance of any city or town, any such insurance company which is authorized to do business in this state shall be permitted to do business in said city or town through its agents, who shall not be subject to or required to pay further privilege or occupational tax for representing such company or soliciting business for it.
*(Acts 1935, No. 194, p. 256; Code 1940, T. 37, §737.)*
##### **§ 11-51-124** Railroads {#sec-11-51-124 omnilex-key=us-al-statutes--title-11--11-51-124}
(a) The maximum amount of privilege or license tax which the several municipalities within this state may annually assess and collect of persons operating railroads in this state as common carriers for the privilege of doing intrastate business within the limits of such municipalities, whether such companies are incorporated under the laws of this state or any other state or whether incorporated at all or not, is hereby prescribed and fixed as follows:
(1) In municipalities of not more than 250 inhabitants, $10.00;
(2) In municipalities having a population of more than 250 and not exceeding 500, $15.00;
(3) In municipalities having a population of more than 500 and not exceeding 750, $20.00;
(4) In municipalities having a population of more than 750 and not exceeding 1,000, $25.00;
(5) In municipalities having a population of more than 1,000 and not exceeding 5,000, $25.00 for the first 1,000 inhabitants and $25.00 for each additional 1,000 inhabitants or a majority fraction thereof;
(6) In municipalities having a population of more than 5,000 and not exceeding 10,000, $25.00 for the first 1,000 inhabitants and $30.00 for each additional 1,000 or majority fraction thereof; and
(7) In municipalities having a population of more than 10,000, $25.00 for the first 1,000 inhabitants and $35.00 for each additional 1,000 inhabitants or majority fraction thereof; provided, however, that in no case shall any municipality assess or collect such a privilege or license tax exceeding $2,000.00.
(b) In arriving at the amount of privilege or license tax which may be assessed and collected under the provisions of subsection (a) of this section, the population of the several cities and towns shall be computed and based upon the federal census next preceding the year for which such license tax is assessed from year to year; provided, that if a municipality should be incorporated subsequent to any federal census, the population shown in the charter of incorporation shall determine the amount of the license due until the next federal census shall find and declare such population.
*(Acts 1935, No. 194, p. 256; Code 1940, T. 37, §740.)*
##### **§ 11-51-125** Railway Sleeping Car Companies, Etc {#sec-11-51-125 omnilex-key=us-al-statutes--title-11--11-51-125}
The maximum amount of privilege or license tax which the several municipalities within this state may annually assess and collect of persons, firms, or corporations engaged in the business of operating cars for the transportation, accommodation, comfort, convenience, or safety of passengers on or over any railway line or lines in whole or in part within this state, whether such cars are termed sleeping, palace, parlor, chair, dining, or buffet cars or by some other name, for the privilege of doing intrastate business within the limits of such municipalities, whether such companies are incorporated under the laws of this or any other state or whether incorporated at all or not, is fixed at $10.00 for each and every municipality.
*(Acts 1919, No. 329, p. 429; Code 1923, §2159; Code 1940, T. 37, §742.)*
##### **§ 11-51-126** Express Companies {#sec-11-51-126 omnilex-key=us-al-statutes--title-11--11-51-126}
(a) There may be levied and collected by the several towns and cities of the state from any express company or companies for the privileges of doing business within the municipal limits a privilege or license tax to be computed and based on the population of said cities or towns as fixed by the last federal census as follows:
(1) In municipalities having a population of 500 people or less, $2.50 per annum;
(2) In municipalities having a population of over 500 people and not exceeding 1,000, $15.00 per annum;
(3) In municipalities having a population of over 1,000 and not exceeding 2,000, $25.00 per annum;
(4) In municipalities having a population of over 2,000 and not exceeding 3,000, $35.00 per annum;
(5) In municipalities having a population of over 3,000 and not exceeding 4,000, $45.00 per annum;
(6) In municipalities having a population of over 4,000 and not exceeding 5,000, $75.00 per annum;
(7) In municipalities having a population of over 5,000 and not exceeding 10,000, $125.00 per annum;
(8) In municipalities having a population of over 10,000 and not exceeding 15,000, $175.00 per annum;
(9) In municipalities having a population of over 15,000 and not exceeding 20,000, $200.00 per annum;
(10) In municipalities having a population of over 20,000 and not exceeding 25,000, $250.00 per annum;
(11) In municipalities having a population of over 25,000 and not exceeding 30,000 inhabitants, $300.00 per annum; and
(12) In municipalities having a population of over 30,000, $500.00 per annum.
(b) The license or privilege taxes provided in subsection (a) of this section shall be paid to the several towns and cities according to population as stated and shall be in lieu of all other license or privilege taxes required of said express companies by any municipal authority thereof; provided, that if a municipality should be incorporated subsequent to any federal census, the population shown in the charter of incorporation shall determine the amount of the license due until the next federal census shall find and declare such population.
(c) This section shall not apply to bus lines which pay a license and mileage tax under Article 3 of Chapter 3 of Title 48 and which carry express as a regular part of their business of hauling passengers.
*(Acts 1935, No. 194, p. 256; Acts 1935, No. 432, p. 910; Code 1940, T. 37, §741.)*
##### **§ 11-51-127** Telegraph Companies {#sec-11-51-127 omnilex-key=us-al-statutes--title-11--11-51-127}
(a) There may be levied and collected by the several towns and cities in the state from any telegraph company or companies for the privilege of doing intrastate business within the municipal limits a privilege or license tax to be computed and based on the population of such cities or towns as fixed by the last federal census:
(1) In municipalities having a population of 1,000 people or less, $7.50 per annum;
(2) In municipalities having a population of over 1,000 and not exceeding 5,000, $37.50 per annum;
(3) In municipalities having a population of over 5,000 and not exceeding 10,000, $75.00 per annum;
(4) In municipalities having a population of over 10,000 and not exceeding 25,000, $150.00 per annum;
(5) In municipalities having a population of over 25,000 and not exceeding 50,000, $375.00 per annum; and
(6) In municipalities having a population exceeding 50,000, $750.00 per annum.
(b) The license or privilege taxes provided for in subsection (a) of this section, which shall be paid to the several towns and cities according to population as stated, shall be in lieu of all other license or privilege taxes required of said telegraph companies by any municipal authority thereof.
*(Acts 1935, No. 194, p. 256; Code 1940, T. 37, §743; Acts 1947, No. 355, p. 238, §1.)*
##### **§ 11-51-128** Telephone Companies {#sec-11-51-128 omnilex-key=us-al-statutes--title-11--11-51-128}
(a) The maximum amount of privilege or license tax which the several municipalities within this state may annually assess and collect of persons operating telephone exchanges and long distance telephone lines in this state for the privilege of doing intrastate business within the limits of such municipalities, whether such persons are incorporated under the laws of this state or any other state, is fixed as follows:
(1) In municipalities having not exceeding 500 inhabitants, exchange license, $15.00, long distance license, $8.00;
(2) In municipalities having a population of more than 500 and not exceeding 1,000, exchange license, $30.00, long distance license, $8.00;
(3) In municipalities having a population of more than 1,000 and not exceeding 2,000, exchange license, $60.00, long distance license, $15.00;
(4) In municipalities having a population of more than 2,000 and not exceeding 3,000, exchange license, $105.00, long distance license, $27.00;
(5) In municipalities having a population of more than 3,000 and not exceeding 4,000, exchange license, $150.00, long distance license, $38.00;
(6) In municipalities having a population of more than 4,000 and not exceeding 5,000, exchange license, $210.00, long distance license, $53.00;
(7) In municipalities having a population of more than 5,000 and not exceeding 6,000, exchange license, $270.00, long distance license, $68.00;
(8) In municipalities having a population of more than 6,000 and not exceeding 7,000, exchange license, $330.00, long distance license, $83.00;
(9) In municipalities having a population of more than 7,000 and not exceeding 8,000, exchange license, $390.00, long distance license, $98.00;
(10) In municipalities having a population of more than 8,000 and not exceeding 9,000, exchange license, $450.00, long distance license, $113.00;
(11) In municipalities having a population of more than 9,000 and not exceeding 10,000, exchange license, $510.00, long distance license, $128.00;
(12) In municipalities having a population of more than 10,000 and not exceeding 11,000, exchange license, $570.00, long distance license, $143.00;
(13) In municipalities having a population of more than 11,000 and not exceeding 12,000, exchange license, $630.00, long distance license, $158.00;
(14) In municipalities having a population of more than 12,000 and not exceeding 13,000, exchange license, $690.00, long distance license, $173.00;
(15) In municipalities having a population of more than 13,000 and not exceeding 14,000, exchange license, $750.00, long distance license, $188.00;
(16) In municipalities having a population of more than 14,000 and not exceeding 15,000, exchange license, $800.00, long distance license, $203.00;
(17) In municipalities having a population of more than 15,000 and not exceeding 16,000, exchange license, $870.00, long distance license, $210.00;
(18) In municipalities having a population of more than 16,000 and not exceeding 17,000, exchange license, $920.00, long distance license, $233.00;
(19) In municipalities having a population of more than 17,000 and not exceeding 18,000, exchange license, $990.00, long distance license, $248.00;
(20) In municipalities having a population of more than 18,000 and not exceeding 19,000, exchange license, $1,050.00, long distance license, $263.00;
(21) In municipalities having a population of more than 19,000 and not exceeding 20,000, exchange license, $1,110.00, long distance license, $278.00;
(22) In municipalities having a population of more than 20,000 and less than 175,000, exchange license, $1,110.00 for the first 20,000 inhabitants and $60.00 for each additional 1,000 inhabitants or majority fraction thereof, up to 175,000 population; long distance license, $278.00 for the first 20,000, and $15.00 for each additional 1,000, or majority fraction thereof, up to 175,000 population; and
(23) In municipalities having a population of more than 175,000, exchange license, $12,000, long distance license, $3,000.00.
(b) In arriving at the assessment of privilege or license tax which may be assessed and collected under subsection (a) of this section, the population of the several cities and towns shall be computed and based on the federal census next preceding the year for which such license tax is assessed from year to year; provided, that if a municipality should be incorporated subsequent to any federal census the population shown in the charter of incorporation shall determine the amount of license due until the next federal census shall find and declare such population.
*(Code 1923, §2161; Acts 1935, No. 194, p. 256; Code 1940, T. 37, §744; Acts 1947, No. 355, p. 238, §2.)*
##### **§ 11-51-129** Street Railroads, Electric, Gas, and Waterworks Companies, Etc {#sec-11-51-129 omnilex-key=us-al-statutes--title-11--11-51-129}
The maximum amount of privilege or license tax which the several municipalities within the state may annually assess and collect of persons operating electric or hydroelectric street railroads, electric light and power companies, gas companies, waterworks companies, pipe line companies for transporting or carrying gas, oil, gasoline, water or other commodities, gas distributing companies, whether by means of pipe lines or by tanks, drums, tubes, cylinders, or otherwise, heating companies or other public utilities, incorporated under the laws of this state or any other state or whether incorporated at all or not, except telephone and telegraph companies, railroad and sleeping car companies and express companies which are otherwise licensed shall not exceed three percent of the gross receipts of the business done by the utility in the municipality during the preceding year; and, for the first year’s business when an existing utility is taken over, the amount of the license shall be computed on the basis of the gross receipts of the prior operators plus the gross receipts of the new owners; provided, that this section shall not affect any existing contract between any municipality and any public utility operating therein, except those provisions of contracts which relate to the amount or basis of the license tax imposed by such municipality on such utility.
*(Code 1923, §2162; Acts 1935, No. 194, p. 256; Code 1940, T. 37, §745; Acts 1947, No. 355, p. 238, §3; Acts 1949, No. 613, p. 945.)*
##### **§ 11-51-130** Banks {#sec-11-51-130 omnilex-key=us-al-statutes--title-11--11-51-130}
(a) Municipalities may levy a license in proportion to the capital, surplus and undivided profits of the bank, but not more than the following amounts, to wit:
(1) Where the capital, surplus, and undivided profits are $50,000.00 or less, $10.00;
(2) Where the capital, surplus, and undivided profits are more than $50,000.00 and not over $100,000.00, $20.00;
(3) Where the capital, surplus, and undivided profits are more than $100,000.00 and not over $150,000.00, $30.00;
(4) Where the capital, surplus, and undivided profits are more than $150,000.00 and not over $200,000.00, $40.00;
(5) Where the capital, surplus, and undivided profits are more than $200,000.00 and not over $250,000.00, $50.00;
(6) Where the capital, surplus, and undivided profits are more than $250,000.00 and not over $300,000.00, $60.00;
(7) Where the capital, surplus, and undivided profits are more than $300,000.00 and not over $350,000.00, $70.00;
(8) Where the capital, surplus, and undivided profits are more than $350,000.00 and not over $400,000.00, $80.00;
(9) Where the capital, surplus, and undivided profits are more than $400,000.00 and not over $450,000.00, $90.00;
(10) Where the capital, surplus, and undivided profits are more than $450,000.00 and not over $500,000.00, $100.00;
(11) Where the capital, surplus, and undivided profits are more than $500,000.00 and not over $600,000.00, $110.00;
(12) Where the capital, surplus, and undivided profits are in excess of $600,000.00, $125.00; and
(13) On each branch bank, not more than $10.00.
(b) The term “undivided profits” as used in subsection (a) of this section shall be construed to mean the undivided profits as shown by the books of the bank, and all payments shall be based on the report made by the banks to the Superintendent of Banks next preceding January 1.
*(Acts 1911, No. 84, p. 50; Acts 1921, Ex. Sess., No. 18, p. 17; Code 1923, §6287; Code 1940, T. 37, §747.)*
##### **§ 11-51-131** Savings and Loan Associations {#sec-11-51-131 omnilex-key=us-al-statutes--title-11--11-51-131}
Municipalities may levy a license on savings and loan associations in proportion to the amount paid in on nonwithdrawable shares, reserves, and undivided profits of the association upon the same schedule as is provided for banks and none other.
*(Acts 1931, No. 159, p. 218; Code 1940, T. 37, §748.)*
##### **§ 11-51-132** License Requirement or Tax on Certain Real Estate Companies Prohibited {#sec-11-51-132 omnilex-key=us-al-statutes--title-11--11-51-132}
(a) As used in this section, the terms “company,” “broker,” “salesperson,” and “place of business” have the same definitions as in Section 34-27-2.
(b) A municipality may only levy or collect a business privilege tax from or require the licensing of a real estate company that has been licensed pursuant to this chapter if the real estate company’s place of business is located within the municipality.
(c) No municipality may levy any business privilege tax from or require the licensing of a real estate salesperson or broker separate from the privilege tax or license levied upon the company of the salesperson or broker, except that salespersons or brokers who form a legally constituted business organization pursuant to subdivision (11) of subsection (a) of Section 34-27-36 may be subject to such business privilege tax or license.
*(Act 2007-364, p. 714, §1; §34-27-30.1; amended and renumbered by Act 2008-141, p. 214, §3.)*
##### **§ 11-51-133** (Effective January 1, 2027) Municipal Business Licenses Authorized for Certain Businesses in Building Trade {#sec-11-51-133 omnilex-key=us-al-statutes--title-11--11-51-133}
(a) As used in this section, the following terms have the following meanings:
(1) CERTIFIED HEATING AND AIR CONDITIONING CONTRACTOR. The same meaning as provided in Section 34-31-18.
(2) CERTIFIED REFRIGERATION CONTRACTOR. The same meaning as provided in Section 34-31-18.
(3) CONCRETE PROVIDER. An individual or business entity engaged in selling concrete, ready mix, or cement that is to be installed at a job site in a municipality, other than a municipality in which the individual or business entity is eligible to obtain a delivery license pursuant to Section 11-51-194.
(4) DUCT AIR TIGHTNESS TESTING CONTRACTOR. The same meaning as provided in Section 34-31-18.
(5) ELECTRICAL CONTRACTOR. The same meaning as provided in Section 34-36-3.
(6) GENERAL CONTRACTOR. The same meaning as provided in Section 34-8-1, without regard to the monetary thresholds set forth in that section.
(7) JOURNEYMAN ELECTRICIAN. The same meaning as provided in Section 34-36-3.
(8) MASTER GAS FITTER. The same meaning as provided in Section 34-37-1.
(9) MASTER PLUMBER. The same meaning as provided in Section 34-37-1.
(10) ONSITE WASTEWATER LICENSEE. A qualified individual holding a license issued by the Alabama Onsite Wastewater Board.
(11) PHYSICAL BUSINESS LOCATION. A principal business office, branch office, or other office, warehouse, or permanent fixed place of business. The term does not include a temporary job site, job trailer, equipment, or materials stored on a temporary basis in connection with a construction project or job.
(12) RESIDENTIAL HOME BUILDER. The same meaning as provided in Section 34-14A-2, without regard to the monetary thresholds set forth in that section.
(13) SUBCONTRACTOR. The same meaning as provided in Section 34-8-1, without regard to the monetary thresholds set forth in that section.
(b)(1) A municipality may impose a business license on any of the following businesses that perform work within the municipality but do not maintain a physical business location within the municipality:
a. A certified heating and air conditioning contractor.
b. A certified refrigeration contractor.
c. A concrete provider.
d. A duct air tightness testing contractor.
e. An electrical contractor.
f. A general contractor.
g. A journeyman electrician.
h. A master gas fitter.
i. A master plumber.
j. An onsite wastewater licensee.
k. A residential home builder.
l. A subcontractor.
(2) The amount of the business license shall be a flat fee or be calculated on the basis of the gross receipts derived from the work performed within the municipality. Gross receipts derived from construction, contracting, installation, or service activities shall be attributed to the municipality where the job site is located and where the labor, materials, or services are performed, regardless of the business’ physical business location.
(c)(1) A municipality may impose a business license on any business listed in subdivision (b)(1) that maintains a physical business location in that municipality and performs work within that municipality.
(2) The amount of the business license shall be one of the following:
a. A flat fee not to exceed five hundred dollars ($500).
b. A flat fee not to exceed five hundred dollars ($500) plus a fee calculated on the basis of the gross receipts derived from the work performed by the business within the municipality.
c. A fee calculated on the basis of the gross receipts derived from the work performed by the business within the municipality.
(3) This subsection may not be construed to allow a municipality in which a business maintains a physical place of business to use the gross receipts derived from work performed by the business in another jurisdiction to impose a business license on any business listed in subdivision (b)(1).
(d) A municipality may not require any business listed in subsection (b) to obtain a municipal business license to work on a project on behalf of a county government when that project is located on county property or on a county-maintained road, bridge, right-of-way, or easement.
*(Act 2026-437, §1.)*
#### **Division 3** Cumulative Remedies for Collection of License Taxes by Municipalities
##### **§ 11-51-150** Petition for Injunction Against Taxpayer Upon Delinquency for Payment of License or Excise Tax {#sec-11-51-150 omnilex-key=us-al-statutes--title-11--11-51-150}
Any municipality may file in the circuit court having jurisdiction over the county in which the petitioning municipality is situated a petition to enjoin the operation and conduct of any business, occupation, trade, or profession subject to a municipal privilege or business license or excise tax imposed by the petitioning municipality and which is delinquent in whole or in part, following no less than 15 days’ written notice and demand to the taxpayer delivered personally or via certified U.S. mail, return receipt requested, and addressed to the taxpayer’s last known address as indicated on the records of the municipality. The petition shall be verified by the mayor, city clerk, police officer, license officer, or by any other governing official or by any employee of the municipality authorized to receive or collect the privilege or business license or excise tax.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §760; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-151** Notice and Hearings; Granting of Injunctive Relief {#sec-11-51-151 omnilex-key=us-al-statutes--title-11--11-51-151}
Upon the filing and presentation of a petition as authorized in this division, it shall be the duty of the court to set a day for the hearing of the action upon not less than 10 nor more than 15 days’ notice thereof to be given the respondents, the notice to be in such form as the court may direct, and at such hearing, upon reasonable cause, to grant a temporary restraining order or preliminary injunction restraining the respondents from further operation or conduct of the business, occupation, trade, or profession, and no bond shall be required of the petitioner as a condition thereto. The court shall not grant a temporary restraining order or preliminary injunction unless it has reasonable cause to believe that the respondent owes a debt to the petitioner for a privilege or business license or excise tax and that the petitioner has complied with Section 11-51-150.
The court shall, upon final hearing, if the proof be sufficient, grant a permanent injunction restraining the respondent as directed by this section to be done by a temporary injunction. Such injunctions may be dissolved in the manner provided in this division.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §761; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-152** Accounting as to Tax Due and Entry of Judgment {#sec-11-51-152 omnilex-key=us-al-statutes--title-11--11-51-152}
The petition need not allege the amount due, but may seek an accounting of the respondent for the amount of privilege or business license tax or excise tax due the petitioner. The court may refer the matter to a master as in other cases.
It shall be the duty of the court to enter a judgment in favor of the petitioner for the amount of privilege or business license or excise tax found to be due, and it may also declare and enforce any lien therefor provided by the laws of Alabama.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §762; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-153** Dissolution of Injunction; Reinstatement of Injunction {#sec-11-51-153 omnilex-key=us-al-statutes--title-11--11-51-153}
After judgment is entered against the respondent as provided by the terms of this division, an existing injunction shall not be dissolved until the judgment and court costs taxed against the respondent are satisfied and paid in full, unless the petitioner and respondent have agreed in writing on a lesser amount necessary to satisfy the judgment and court costs, or until the respondent shall have appealed and shall have executed a supersedeas bond to stay the execution of the judgment, in the manner provided by the Alabama Rules of Appellate Procedure.
All laws governing appeals from money judgments are made applicable to this division except as they may be contrary to any provision in this section.
If the appeal is taken and the case reversed, the injunction existing at the time of the appeal shall automatically be reinstated without the intervention of the circuit court unless the appellate court otherwise directs.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §763; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-154** Bond to Dissolve Temporary Injunctive Relief - Execution; Security; Exception {#sec-11-51-154 omnilex-key=us-al-statutes--title-11--11-51-154}
(a) When the court has granted a temporary restraining order or preliminary injunction, it shall not be dissolved until the respondent has executed a bond in an amount fixed by the court with sufficient surety to be approved by the register or clerk, containing a waiver of exemptions as to personal property, conditioned to pay such judgment and lawful court costs as the court upon final hearing may enter against the respondent, except as provided below.
(b) The surety bond required to be made in this section shall remain in full force and effect as security for any judgment and court costs the court may enter and tax against the respondent, but if the respondent takes an appeal and gives a supersedeas bond, upon affirmance of the appeal, the surety bond provided by this section shall become null and void.
(c) The respondent shall not, however, be required to post the surety bond required in subsection (a) if the respondent can show to the satisfaction of the register or clerk that he or she has a net worth, based on fair market value, of twenty-five thousand dollars ($25,000) or less, including his or her homestead, and the final assessment is equal to or less than the respondent’s net worth.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §764; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-155** Bond to Dissolve Temporary Injunctive Relief - Security Against Final Judgment and Costs {#sec-11-51-155 omnilex-key=us-al-statutes--title-11--11-51-155}
The surety bond, if required by Section 11-51-154, shall stand as security for any judgment and costs finally determined against the respondent, except in instances where the liability thereon is relieved by and attaches to a supersedeas bond as provided in this division.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §765; Act 2006-586, p. 1548, §2.)*
##### **§ 11-51-156** Bond to Dissolve Temporary Injunctive Relief - Forfeiture of Bond and Issuance of Execution Thereon {#sec-11-51-156 omnilex-key=us-al-statutes--title-11--11-51-156}
In the event no supersedeas bond is given on appeal or if no appeal is taken and the respondent fails to pay the judgment and costs within 30 days after the entry of judgment in the circuit court, it shall be the duty of the register or clerk within 10 days of the expiration of said limit of 30 days to declare said bond forfeited and to issue execution thereon against the principal and sureties.
If for any reason the register or clerk fails to declare the bond forfeited within the time prescribed in this section, he may do so any time thereafter and issue execution as directed in this section.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §766.)*
##### **§ 11-51-157** Appeal from Judgment of Circuit Court {#sec-11-51-157 omnilex-key=us-al-statutes--title-11--11-51-157}
The laws of Alabama governing appeals from money judgments entered by the circuit court shall govern and control appeals taken under this division, except the Supreme Court of Alabama shall have jurisdiction thereof and except that the appeal shall be perfected within 42 days from the entry of a final judgment. Any permanent injunction shall remain in full force and effect unless the respondent executes a supersedeas bond to stay the execution of the judgment.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §767.)*
##### **§ 11-51-158** Effect of Pending Action Upon Institution of Subsequent Action for Taxes Becoming Due After Institution of Prior Action {#sec-11-51-158 omnilex-key=us-al-statutes--title-11--11-51-158}
The institution of one civil action under the provisions of this division and the pendency thereof shall not be asserted as a defense by pleading or motion to the institution of a subsequent civil action under this division for the collection of license or taxes becoming due after the institution of such prior civil action even though a bond for dissolution of the injunction is given and the respondent continues to operate.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §769.)*
##### **§ 11-51-159** Enforcement of Lien Not to Constitute Waiver of Rights as to Respondent’s Bond {#sec-11-51-159 omnilex-key=us-al-statutes--title-11--11-51-159}
If the court should declare a lien in favor of the petitioner and against the property of the respondent, the petitioner may proceed to enforce the lien, but such enforcement shall not be a waiver of rights acquired against the respondent’s bond but shall be in addition thereto.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §770.)*
##### **§ 11-51-160** Equitable Attachment {#sec-11-51-160 omnilex-key=us-al-statutes--title-11--11-51-160}
In addition to the remedies provided in this division, the petitioner also shall be entitled to an equitable attachment in aid of its civil action under this division to collect a privilege, license, or excise tax due it, and no ground for such attachment shall be necessary except that the respondent is due a privilege license or excise tax which is delinquent in whole or in part, and no bond shall be required to be given for such equitable attachment, but an oath as provided by Section 11-51-150 shall be sufficient.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §771.)*
##### **§ 11-51-161** Provisions of Division Cumulative {#sec-11-51-161 omnilex-key=us-al-statutes--title-11--11-51-161}
The remedies provided in this division shall be cumulative and shall not be construed to appeal, modify, alter, or change any other civil or criminal process or remedy provided by law for the collection of a municipal privilege, license, or excise tax, but all such remedies, except criminal, may be used in a proceeding under this division.
*(Acts 1936-37, Ex. Sess., No. 152, p. 169; Code 1940, T. 37, §768.)*
#### **Division 4** Collection of Certain Municipal License Taxes by State Department of Revenue
##### **§ 11-51-180** Prerequisites for Collection by Department of Revenue; Exceptions; Applicability {#sec-11-51-180 omnilex-key=us-al-statutes--title-11--11-51-180}
(a) The Department of Revenue shall, upon request by ordinance or resolution of the governing body of any municipality and the filing of a certified copy of the enabling ordinance or resolution with the Department of Revenue, collect all municipal privilege or license taxes in the nature of a sales or use tax levied or assessed by a municipality under the provisions of a municipal ordinance or resolution duly promulgated and adopted by the governing body of the municipality, or levied by past or future special or local acts of the Legislature. Except as set out below and as otherwise provided in this section, the levy shall parallel the corresponding state levy except for the rate of the tax and shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, rules, regulations, direct pay permit and drive-out certificate procedures, provisions, statutes of limitation, penalties, fines, punishments, and deductions as are applicable to the state sales and use tax. This subsection shall not apply to municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a municipality pursuant to Section 11-51-90, except privilege or license taxes levied in the nature of a sales or use tax.
(b) The Department of Revenue shall, upon request by ordinance or resolution of the governing body of any municipality and the filing of a certified copy of the enabling ordinance or resolution with the Department of Revenue, collect all municipal privilege or license taxes imposed on the rental or furnishing of rooms, lodgings, and accommodations levied or assessed by any city or town under the provisions of a municipal ordinance duly promulgated and adopted by the governing body of the city or town. The levy shall parallel and be collected in accordance with the state levy, except for the rate of the tax, and is subject to all definitions, exceptions, exemptions, proceedings, requirements, rules, regulations, provisions, statutes of limitations, penalties, fines, punishments, and deductions as are applicable to the state lodgings tax as levied by Sections 40-26-1 to 40-26-21, inclusive, or as otherwise provided by law, except where otherwise provided in this division, including provisions for enforcement and collection of the taxes. This subsection shall not apply to municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a municipality pursuant to Section 11-51-90, except privilege or license taxes levied in the nature of a lodgings tax.
(c) This section shall apply only to those municipalities that request the Department of Revenue to collect taxes on their behalf.
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §1; Acts 1969, Ex. Sess., No. 176, p. 242; Acts 1992, No. 92-186, p. 349, §11; Act 98-192, p. 310, §3.)*
##### **§ 11-51-181** Time of Collection; Inspection of Reports by Municipal Governing Body {#sec-11-51-181 omnilex-key=us-al-statutes--title-11--11-51-181}
Municipal taxes collected by the Department of Revenue shall be collected at the same time and along with the collection by the department of taxes levied and collected for the state under the provisions of Sections 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, 40-23-38, Article 2 of Chapter 23 of Title 40, and Sections 40-26-1 to 40-26-21, inclusive, and all reports required to be made to the Commissioner of Revenue under this division shall, on request made to the Department of Revenue, be made available for inspection by the governing body of the city or town or its designated agent at reasonable times during business hours.
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §2; Acts 1969, Ex. Sess., No. 176, p. 242; Act 98-192, p. 310, §3.)*
##### **§ 11-51-182** Preparation and Distribution of Reports, Etc., Necessary for Collection of Taxes; Authority and Duties of Department Generally {#sec-11-51-182 omnilex-key=us-al-statutes--title-11--11-51-182}
The Department of Revenue shall prepare and distribute reports, forms, and other information as may be necessary to provide for its collection of municipal taxes under this division, and shall have all the authority and duties under this division as it has in connection with the collection of the state sales and use taxes provided for by Sections 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, 40-23-38, and Article 2 of Chapter 23 of Title 40, and with the collection of the state tax on the rental of rooms, lodgings, and accommodations provided for by Sections 40-26-1 to 40-26-21, inclusive.
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §3; Acts 1969, Ex. Sess., No. 176, p. 242; Act 98-192, p. 310, §3.)*
##### **§ 11-51-183** Certification and Disposition of Taxes; Charge for Collection and Administration; Redistribution of Over-Charges; Warrant; Fees {#sec-11-51-183 omnilex-key=us-al-statutes--title-11--11-51-183}
(a) The Commissioner of Revenue shall deposit into the State Treasury all municipal taxes collected by the department under this division; and, on a bi-weekly basis, the commissioner shall certify to the Comptroller the amount of taxes collected under the provisions of this division for the approximate two-week period immediately preceding the certification and the amount to be distributed to each municipality, less collection and administration charges deducted, which shall be paid to the treasurer or other custodian of funds of the municipality within three days after certification thereof.
(b) The Department of Revenue shall charge each municipality its actual cost for collecting and administering the municipal license taxes. Notwithstanding the previous sentence, the charge shall not exceed two percent of the amount collected for that municipality.
(c) Within 60 days after the end of each fiscal year, the Department of Revenue, in cooperation with the office of the Examiner of Public Accounts, shall recompute its actual cost for collection and administration of local taxes for the preceding fiscal year. Any collection and administration over-charge shall be redistributed to the municipalities for which the department collects and administers local taxes on a pro rata basis of each municipality’s receipts. No under-charge shall be recovered, either directly or indirectly, from any municipality.
(d) The Comptroller shall at least once each month issue a warrant on the funds collected under this division payable to the department for the amount of the charges as determined by the Commissioner of Revenue.
(e) The department shall not charge a fee to the municipality, city, or town for the cost of filing, payment processing, and remittance services relating to any tax authorized to be filed under the ONE SPOT system of the department. References in this subsection to filing, payment processing, and remittance services shall mean and refer only to the ONE SPOT system to file and pay taxes authorized to be filed thereunder, and shall not include the collection and administration of local taxes as defined in Section 11-3-11.3(i).
(f) The department shall make available to those localities for which it administers the taxes imposed pursuant to this section the same services that are made available to municipal governments pursuant to this division and Article 3, commencing with Section 11-51-200, of this chapter. In the event a general law establishes a system to remit municipal taxes or municipal business license taxes through a central portal provided by the Department of Revenue, such collection shall only occur through the portal when the levy is standardized with all other similar local levies regarding the point of collection, measure of taxation, due dates, discounts, and exemptions but not the rate of tax.
(g) For the purpose of this section, the terms collection and administration shall have the same meaning as defined in Section 11-3-11.3(i).
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §4; Act 98-192, p. 310, §3; Act 2018-150, §1.)*
##### **§ 11-51-184** Employment of Special Counsel {#sec-11-51-184 omnilex-key=us-al-statutes--title-11--11-51-184}
The Commissioner of Revenue may employ special counsel when necessary from time to time to enforce collection of municipal license taxes for the municipality and otherwise to enforce the provisions of the ordinance levying such taxes, including any litigation required, and the Department of Revenue may pay special counsel such fees as the commissioner considers reasonable and proper from the proceeds of the taxes payable to the city or town under the provisions of this division.
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §5.)*
##### **§ 11-51-185** Request for Department to Collect Municipal Taxes; Effective Date; When Department to Perform Duties Under Division {#sec-11-51-185 omnilex-key=us-al-statutes--title-11--11-51-185}
(a) Except where the Department of Revenue is already collecting taxes on July 1, 1998, any municipality requesting the Department of Revenue to collect its tax shall forward a certified copy of the enabling act, ordinance, or resolution to the department at least 30 days prior to the first day of the month on which the act, ordinance, or resolution is to take effect.
(b) A new levy, or a levy changed by an amendment of a municipal ordinance heretofore adopted, which shall be collected under this division or a new request to collect shall not be effective nor subject to collection by the Department of Revenue until the first day of the month next following the expiration of 30 days after receipt by the department of a certified copy of the enabling ordinance or resolution with any amendments thereto.
(c) The Department of Revenue shall not be required to make any collection of municipal privilege or license taxes levied in the nature of sales or use taxes or otherwise perform any duties as provided for in this division until a certified copy of the ordinance and amendments thereto has been on file with the Department of Revenue for at least 30 days.
*(Acts 1965, 1st Ex. Sess., No. 203, p. 272, §6; Act 98-192, p. 310, §3.)*
#### **Division 5** Rights and Responsibilities of Municipal Taxpayers
##### **§ 11-51-186** Taxpayer Rights; Responsibilities of Municipality; Abatement of Penalty {#sec-11-51-186 omnilex-key=us-al-statutes--title-11--11-51-186}
(a) Rights of the taxpayer.
(1) At or before the commencement of an examination of the books and records of a taxpayer, the taxing jurisdiction shall provide to the taxpayer a written description, in simple and non-technical terms, of the role of the taxing jurisdiction and the taxpayer during the examination and a statement of the taxpayer’s rights.
(2) At or before the issuance of a preliminary assessment, the taxing jurisdiction shall provide to the taxpayer in simple and non-technical terms:
a. A written description of the basis for the assessment and any penalty asserted with respect to the assessment.
b. A written description of the method by which the taxpayer may request an administrative review of the preliminary assessment.
(3) At or before the issuance of a final assessment, the taxing jurisdiction shall inform the taxpayer by a written statement of his or her right to appeal to the circuit court.
(4) Except in cases involving suspected criminal violations of the tax law or other criminal activity, the taxing jurisdiction shall conduct an examination of a taxpayer during regular business hours after providing reasonable notice to the taxpayer. A taxpayer who refuses a proposed time for an examination on the grounds that the proposed examination would cause inconvenience or hardship must offer reasonable alternative times and dates for the examination.
(5) At all stages of an examination or the administrative review of the examination, a taxpayer is entitled to be assisted or represented, at his or her own expense, by an authorized representative. The taxing jurisdiction shall prescribe a form by which the taxpayer may designate such a person to represent him or her in the conduct of any proceedings, including collection proceedings, resulting from actions of the taxing jurisdiction. In the absence of this form, the taxing jurisdiction may accept such other evidence that a person is the authorized representative of a taxpayer as it considers appropriate. This provision shall not be construed as authorizing the practice of law.
(6) A taxpayer shall be allowed to make an audio recording of any in-person interview with any officer or employee of the taxing jurisdiction relating to any examination or investigation by the taxing jurisdiction, provided, however, the taxpayer must give reasonable advance notice to the taxing jurisdiction of his or her intent to record and the recording shall be at the taxpayer’s own expense and with the taxpayer’s own equipment. The taxing jurisdiction shall also be allowed to record any interview if the taxpayer is recording the interview, or if the taxing jurisdiction gives the taxpayer reasonable advance notice of its intent to record the interview. The taxing jurisdiction shall provide the taxpayer with a copy of the recording, but only if the taxpayer provides reimbursement for the cost of the transcript and reproduction of such copy. Such cost shall be reasonable as prescribed by the taxing jurisdiction.
(7) This section shall not apply to criminal investigations or investigations relating to the integrity of any officer or employee of the taxing jurisdiction.
(8) Any designee of a municipality shall be subject to the same responsibilities and restrictions on its authority, and the ability of its employees and contractors, to act on behalf of a taxing jurisdiction under this chapter as are imposed on them under the provisions of this chapter and Sections 40-2A-12 to 40-2A-14, inclusive.
(b) Municipality’s responsibilities, generally. In addition to compliance with subsection (a), municipalities shall make accessible continuing education programs to train non-clerical employees of their revenue departments to provide them with a current knowledge of applicable state and local tax laws. Employees of a municipality who are subject to the preceding sentence may, in order to satisfy the continuing education requirements, attend courses pertaining in whole or in part to the municipal business license laws and related issues that are presented, sponsored, or certified by the Alabama Municipal Revenue Officers Association or by the Alabama Local Tax Institute of Standards and Training established pursuant to Section 40-2A-15. In addition, a municipality shall not use the amounts of taxes assessed by an employee of the municipality as the basis of a production quota system for employees, or as a basis for evaluating an employee’s or a designee’s performance.
(c) Municipality’s failure to comply with this section. The failure of a municipality or its designee to comply with any provision of subsections (a) or (b) shall not prohibit the municipality from assessing any business license tax otherwise due under this chapter, nor excuse the taxpayer from timely complying with any time limitations under this chapter. However, if the municipality or its designee fails to substantially comply with the provisions of this section, the governing body of the municipality, its license officer, or another employee designated by the governing body shall, upon written application by the taxpayer or upon good cause shown, abate any penalties and waive any interest otherwise arising from the examination or assessment.
(d) Abatement of penalty. The municipality shall abate any penalty attributable to erroneous written advice furnished to a taxpayer or taxpayer’s representative by an employee or agent of the municipality’s revenue department or of its designee. However, this subsection shall apply only if: The employee or agent of the revenue department or the designee provided the written advice in good faith while acting in his or her official capacity; the written advice was reasonably relied on by the taxpayer, or by the taxpayer’s representative in advising the taxpayer, and was in response to a specific written request of the taxpayer or the taxpayer’s representative; and the penalty did not result from the taxpayer’s or the representative’s failure to provide complete and accurate information or from a change in law or a new judicial interpretation of existing law. References in this subsection to written advice or requests shall mean and include those transmitted via electronic mail.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-187** Examination {#sec-11-51-187 omnilex-key=us-al-statutes--title-11--11-51-187}
A taxpayer that has purchased a business license required under this chapter shall not be subject to more than one business license examination for each business license by or on behalf of the issuing taxing jurisdiction for every three-license-year cycle unless reasonable cause is shown and notice is given to the taxpayer, consistent with Section 40-2A-13, or unless the taxpayer fails or refuses to provide to the taxing jurisdiction a true and correct copy of its federal income tax return for the prior two license years or portions thereof within 14 days after written request has been mailed or personally delivered to it. The following activities shall not constitute a business license examination for purposes of this section: (1) The mere contact of a taxpayer or its authorized representative by a municipality or its agent for the purpose of obtaining information to confirm any information provided by the taxpayer in connection with its application for or renewal of its business license, or (2) an inspection of the taxpayer’s books and records consistent with one of the exceptions for sales and use tax examinations listed in Section 40-2A-13(c).
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-188** Due Dates for Licenses; Discounts {#sec-11-51-188 omnilex-key=us-al-statutes--title-11--11-51-188}
(a) Except as provided in subsections (b) and (c), each municipal business license shall be due on January 1st of each year and shall be renewed annually on or before the 31st day of January, provided that a municipality that imposed a delinquency date as of January 1, 2006, that was later than January 31 may elect, by adoption of an ordinance, to impose a February 15 delinquency date.
(b) If the due date for payment of any business license hereunder falls on a weekend or a holiday recognized by the municipality from time to time, the due date shall automatically be extended until the next business day.
(c) Notwithstanding subsection (a), insurance company licenses shall be renewed annually on or before March 1, in accordance with Section 11-51-122.
(d) Any municipality may, in its discretion, grant a discount for payment of the applicable business license tax prior to the due date prescribed above. The amount and terms of the discount shall be established by ordinance of the governing body of the municipality.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-189** Abatements Authorized {#sec-11-51-189 omnilex-key=us-al-statutes--title-11--11-51-189}
The governing body of a municipality may, in its discretion, grant an abatement to any taxpayer of all or a portion of the applicable business license tax otherwise due for up to three license years if the taxpayer substantially complies with the criteria for abatement of sales or use taxes under the Tax Incentive Reform Act of 1992, found at Section 40-9B-1, et seq., following a public hearing on same.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-190** Recordkeeping {#sec-11-51-190 omnilex-key=us-al-statutes--title-11--11-51-190}
Consistent with Section 40-2A-7(a), taxpayers under this chapter shall keep and maintain an accurate and complete set of records, books, and other information sufficient to allow the municipality or its designee to determine the correct amount of any business license tax levied by the municipality, or other records or information as may be necessary for the proper administration of any matters under the jurisdiction of the municipality.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-191** Determination of Amounts Due; Preliminary and Final Assessments; Review; Appeal; Refund for Overpayment {#sec-11-51-191 omnilex-key=us-al-statutes--title-11--11-51-191}
(a) If the taxing jurisdiction determines that the amount of any business license tax reported on or remitted with a business license remittance form is incorrect, if no business license remittance form is filed within the time prescribed, or if the information provided on the form is insufficient to allow the taxing jurisdiction to determine the proper amount of business license tax due, the taxing jurisdiction may calculate the correct amount of the tax based on the most accurate and complete information reasonably obtainable. The taxing jurisdiction may thereafter enter a preliminary assessment for the correct amount of business license tax, including any applicable penalty and interest. Nothing contained herein shall limit or restrict a municipality’s right to seek injunctive relief under Section 11-51-150, et seq.
(b) If the amount of business license tax remitted by the taxpayer is undisputed by the taxing jurisdiction, or the taxpayer consents to the amount of any deficiency or preliminary assessment in writing, the jurisdiction may immediately enter a final assessment for the amount of the tax due, plus any applicable penalty and interest.
(c)(1) All preliminary and final assessments of business licenses issued by a municipality or its designee shall be executed as provided by its business license ordinance or code.
(2) Any preliminary assessment shall be entered within four years from the due date of the business license form, or four years from the date the form is filed, whichever is later, except as follows:
a. A preliminary assessment may be entered at any time if no license form is filed as required, or if a false or fraudulent license form is filed with the intent to evade the business license tax.
b. A preliminary assessment may be entered within six years from the due date of the license form or six years from the date the license form is filed with the taxing jurisdiction, whichever date occurs last, if the taxpayer omits or fails to report an amount in excess of 25 percent of its gross receipts or other applicable business license tax base.
c. A preliminary assessment may be entered within five years from the due date of the license form, or five years from the date the form is filed, whichever is later, if the taxpayer or its authorized agent fails or refuses to execute and return to the taxing jurisdiction or its agent a written extension of the statute of limitations on issuing preliminary assessments for up to eight months, as requested by the taxing jurisdiction or its agent, within 30 days after receipt of the request for extension by the taxpayer or its authorized agent.
(3) The preliminary assessment entered by the taxing jurisdiction, or a copy thereof, shall promptly upon entry be mailed by the taxing jurisdiction to the taxpayer’s last known address by either first class U.S. mail or certified U.S. mail with return receipt requested, but at the option of the taxing jurisdiction, the preliminary assessment may be delivered to the taxpayer by personal delivery.
(d)(1) If a taxpayer disagrees with a preliminary assessment as entered by the taxing jurisdiction, the taxpayer may file a petition for review with the taxing jurisdiction within 30 days from the date of entry of the preliminary assessment setting out the specific objections to the preliminary assessment. If a petition for review is timely filed, or if the taxing jurisdiction otherwise deems it necessary, the license officer of the municipality shall schedule a conference with the taxpayer for the purpose of allowing the taxpayer or its representatives and the representatives of the taxing jurisdiction to present their respective positions, discuss any omissions or errors, and to attempt to agree upon any changes or modifications to their respective positions.
(2) If a petition for review:
a. Is not timely filed, or
b. Is timely filed, and upon further review the license officer determines that the preliminary assessment is due to be upheld in whole or in part, the taxing jurisdiction may make the assessment final in the amount of business license tax due as computed by the license officer, with applicable interest and penalty computed to the date of entry of the final assessment. The license officer shall, whenever practicable, complete his or her review of the taxpayer’s petition for review and applicable law within 90 days following the later of the date of filing of the petition or the conference, if any.
(3) The final assessment entered by the taxing jurisdiction, or a copy thereof, shall promptly upon entry be mailed to the taxpayer’s last known address a. by either first class U.S. mail or certified U.S. mail with return receipt requested in the case of assessments of business license tax of five hundred dollars ($500) or less, or b. by certified U.S. mail with return receipt requested in the case of assessments of business license tax of more than five hundred dollars ($500). In either case and at the option of the taxing jurisdiction, the final assessment, or a copy thereof, may be delivered to the taxpayer by personal delivery.
(e)(1) A taxpayer may appeal from any final assessment entered hereunder by the taxing jurisdiction by filing a notice of appeal, within 30 days from the date of entry of the final assessment, with the license officer, who shall promptly forward a copy of the notice of appeal and related documents to the administrative hearing officer appointed by the taxing jurisdiction to hear appeals of final assessments of the municipality’s sales, use, rental, and lodging taxes, as applicable, and business license taxes. The administrative hearing officer shall function in a manner similar to the Administrative Law Judge of the Department of Revenue and must be impartial and reasonably knowledgeable of the business license laws and the taxing jurisdiction’s business license code or ordinances. The administrative hearing officer may be an employee of the taxing jurisdiction or otherwise, but in no event shall he or she charge or otherwise be compensated for his or her services in whole or in part based on the portion or amount of the final assessment that he or she determines should be upheld, or any similar contingency. No filing fee or supersedeas bond shall be required by the taxing jurisdiction for such appeals.
(2) In lieu of the appeal under subdivision (1) to the administrative hearing officer, and at the option of the taxpayer, the taxpayer may appeal from any final assessment hereunder to the circuit court of the county having jurisdiction over the municipality which issued or on whose behalf the final assessment was issued, by filing a notice of appeal within 30 days from the date of entry of the final assessment with both the municipal clerk of the municipality and the clerk of the circuit court. If the appeal is to the circuit court, and if the taxpayer is the appealing party, the taxpayer shall also, within the 30-day period allowed for appeal, either a. pay the business license tax, interest, and any penalty shown as due on the final assessment, or b. file a supersedeas bond with the clerk of the court in double the amount of the business license tax, interest, and any penalty shown as due on the final assessment, or in such amount as may be required by Section 40-2A-7, as amended from time to time. The supersedeas bond shall be executed by a surety company licensed and authorized to do business in Alabama and shall be conditioned to pay the final assessment plus applicable interest and any court costs relating to the appeal. If the taxpayer is the appealing party and is able to show to the satisfaction of the clerk of the court that he or she has a net worth, on the basis of fair market value, of twenty thousand dollars ($20,000) or less, including his or her homestead, and that the final assessment is equal to or less than the taxpayer’s net worth, the taxpayer may file and prosecute the appeal without either paying the final assessment in full or posting a supersedeas bond. A taxpayer may appeal a final assessment to the circuit court, as provided herein, even though the taxpayer has paid the amount shown as due on the assessment prior to filing the appeal.
(3) The filing of the notice of appeal with both the municipal clerk of the municipality and the clerk of the circuit court in which the appeal is filed, as well as the payment of the final assessment in full or the filing of a supersedeas bond when required above, are jurisdictional. If such prerequisites are not satisfied within the time provided for appeal, the appeal shall be dismissed for lack of jurisdiction. On appeal to the circuit court, the final assessment shall be prima facie correct, and the burden of proof shall be on the taxpayer to prove the assessment is incorrect.
(4) If a final assessment is reduced on appeal, any overpayment shall promptly be refunded to the taxpayer by the taxing jurisdiction together with interest to the extent allowed by Section 11-51-192.
(5) No court shall have the power to enjoin the collection of any business license tax due on an assessment so appealed or to suspend the payment thereof.
(f) Either the taxpayer or the taxing jurisdiction may appeal to the circuit court from a final order issued by the administrative hearing officer by filing a notice of appeal with the administrative hearing officer and with the circuit court of the county having jurisdiction over the municipality which issued, or on whose behalf the final assessment was issued, within 30 days from the date of entry of the final order. The procedures, presumptions, and related matters and rules shall conform in all material respects to those applicable to appeals from final orders of the Alabama Tax Tribunal under Chapter 2B of Title 40.
(g)(1) Any taxpayer may file a petition for refund with the taxing jurisdiction for any overpayment of business license tax erroneously paid to that jurisdiction. If a final assessment for the tax has been entered by the taxing jurisdiction, a petition for refund of all or a portion of the tax may be filed only if the final assessment has been paid in full prior to or simultaneously with the filing of the petition for refund.
(2) A petition for refund shall be filed with the taxing jurisdiction within a. three years from the date that the business license form was filed, or b. two years from the date of payment of the business license tax which is the subject of the petition, whichever is later, or if no form was timely filed, two years from the date of payment of the business license tax.
(3) The taxing jurisdiction shall either grant or deny a petition for refund within six months from the date the petition is filed, unless the period is extended by written agreement of the taxpayer and the taxing jurisdiction. The taxpayer shall be notified of the taxing jurisdiction’s decision concerning the petition for refund by first class U.S. mail or by certified U.S. mail, return receipt requested, sent to the taxpayer’s last known address. If the taxing jurisdiction fails to grant a full refund within the time provided herein, the petition for refund shall be deemed to be denied.
(4) If the petition is granted, or the taxing jurisdiction or a court otherwise determines that a refund is due, the overpayment shall be promptly refunded to the taxpayer by the taxing jurisdiction, together with interest to the extent provided in Section 11-51-192. If the taxing jurisdiction or a court determines that a refund is due, the amount of overpayment plus any interest due thereon may first be credited by the taxing jurisdiction against any outstanding final tax liabilities due and owing by the taxpayer to the jurisdiction, and the balance of any overpayment shall be promptly refunded to the taxpayer. If any refund or part thereof is credited to any other tax by the taxing jurisdiction, the taxpayer shall be provided with a written detailed statement showing the amount of overpayment, the amount credited for payment to other taxes, and the amount refunded.
(5)a. A taxpayer may appeal from the denial in whole or in part of a petition for refund by filing a notice of appeal with the clerk of the circuit court of the county in which the municipality denying the petition for refund is located by filing the notice of appeal within two years from the date the petition is denied. The circuit court shall hear the appeal according to its own rules and procedures and shall determine the correct amount of refund due, if any.
b. If an appeal is not filed with the appropriate circuit court within two years of the date the petition is denied, then the appeal shall be dismissed for lack of jurisdiction.
c. In the discretion of the governing body of a municipality, by ordinance duly adopted, the provisions of this section may also be applied to one or more of its other taxes not already governed by the Alabama Taxpayers’ Bill of Rights and Uniform Revenue Procedures Act, Chapter 2A, Title 40.
*(Act 2006-586, p. 1548, §3; Act 2015-316, §1(b)(2); Act 2015-368, §1(b)(2).)*
##### **§ 11-51-192** Assessment for Interest for Delinquency {#sec-11-51-192 omnilex-key=us-al-statutes--title-11--11-51-192}
(a) The governing body of any municipality may elect, by the adoption of an ordinance, to assess interest on any business license tax delinquency. If assessed, interest on any delinquency shall be charged from the due date of the tax.
(b) If assessed by the municipality, interest shall be computed at the same rate prescribed by Section 11-51-208(f) relating to interest on delinquent or overpaid sales and use taxes levied by self-administered municipalities.
(c) If the municipality elects under subsection (a) to assess interest on business license tax delinquencies, except as provided in this subsection, interest at the same rate shall be paid by a taxing jurisdiction on any refund of business license tax erroneously paid to the jurisdiction. Interest shall be computed on any overpayment from the date of the overpayment to the taxing jurisdiction, provided that interest on any refund of business license taxes of a municipality not administered by the Department of Revenue under Section 11-51-180 shall be limited in accordance with the principles of Section 11-51-208(f).
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-193** List of State Licensing Boards; Confirmation of Taxpayer Status Prior to Issuance of License; Categorization of Licenses {#sec-11-51-193 omnilex-key=us-al-statutes--title-11--11-51-193}
(a) The Department of Revenue shall periodically, at least annually, compose a list of all state boards and agencies that regulate the licensing of businesses or occupations under their jurisdiction, and that so notify the department in writing, herein collectively called “state licensing boards.” The list shall be distributed to all municipal license officers at least once each year until January 1, 2009, at which time the list shall continue to be updated periodically thereafter but shall be required to be available only in the department’s Internet website or other computer-accessible database available to the general public by remote access. Prior to issuing a business license to a taxpayer who is subject to the jurisdiction of a particular state licensing board, the taxing jurisdiction shall attempt to confirm from the board that the taxpayer is duly licensed by and in good standing with that board. Provided that the failure of the taxing jurisdiction to receive such confirmation due to a good faith error or other reasonable cause shall absolve the taxing jurisdiction and its employees or agents from any civil liability or criminal penalty that would otherwise arise or accrue if it is determined that the taxpayer was not in good standing at the time of filing the license form. The receipt by the taxing jurisdiction of what appears to be a true and accurate copy of the taxpayer’s card or certificate, issued by the particular state licensing board within 14 months of the date on which the taxpayer applies for a business license, shall constitute reasonable cause.
(b) All state licensing boards shall issue to each of their respective licensees a card or certificate categorizing each licensee, when required by regulation. Each such board shall promulgate, pursuant to the Alabama Administrative Procedure Act, a regulation establishing a uniform system of categories of persons subject to their jurisdiction, including a category for which no card or certificate is required. The proposed regulation shall be issued by each board on or before December 31, 2007, and the categories contained therein shall govern until such time as the regulation is issued in final form. Notwithstanding Section 11-51-90.2, the business license of each applicable taxing jurisdiction shall be issued to the licensee based upon the established contractor category.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-194** Delivery License {#sec-11-51-194 omnilex-key=us-al-statutes--title-11--11-51-194}
(a)(1) Each municipality may require the purchase of a delivery license by any business that has no other physical presence within the municipality or its police jurisdiction for the privilege of delivering its merchandise, whether for rental or final sale, therein. The amount of the delivery license for the business shall not exceed one hundred dollars ($100). Nothing in this subsection shall prohibit a municipality from requiring by ordinance the purchase of a decal by the taxpayer for each delivery vehicle making deliveries within the municipality or its police jurisdiction. The charge for the decal shall not exceed the municipality’s actual cost of the decal.
(2) Notwithstanding any other law, a municipality may charge a taxpayer an issuance fee not to exceed ten dollars ($10) for a business delivery license.
(b) As used in this section, a delivery license means a fixed rate business license issued by a municipality for the limited privilege of delivering and requisite set-up and installation, by the taxpayer’s employees or agents, of the taxpayer’s own merchandise in that municipality, by means of delivery vehicles owned, leased, or contracted by the taxpayer; provided that the gross receipts derived from the sale and any requisite set-up or installation of all merchandise so delivered into the municipality shall not exceed seventy-five thousand dollars ($75,000) during the license year, and any set-up or installation shall relate only to: (1) That required by the contract between the taxpayer and the customer or as may be required by state or local law; and (2) the merchandise so delivered. Mere delivery of the taxpayer’s merchandise by common carrier shall not allow the taxing jurisdiction to assess a business license tax or a delivery license tax against the taxpayer, but the gross receipts derived from any sale and delivery accomplished by means of a common carrier shall be counted against the seventy-five thousand dollar ($75,000) limitation described in the preceding sentence if the taxpayer also during the same license year sells and delivers into the taxing jurisdiction using a delivery vehicle other than a common carrier. The dollar limitation prescribed above shall be increased, but not decreased, every five years under the standards prescribed by Section 11-51-90 with respect to the uniform license issuance fee and may be increased by a municipality at any time, up to one hundred fifty thousand dollars ($150,000), by adoption of an ordinance. A common carrier, contract carrier, or similar delivery service making deliveries on behalf of others shall not be entitled to purchase a delivery license.
(c) A taxpayer that otherwise meets the criteria for the purchase of a delivery license pursuant to subsections (a) and (b) is not required to purchase a delivery license or a regular business license if the following criteria apply: (1) The taxpayer’s gross receipts that are derived from within the municipality or its police jurisdiction do not exceed ten thousand dollars ($10,000) during the preceding license year; and (2) the taxpayer has no other physical presence within the municipality or its police jurisdiction during the year. Any other taxpayer that meets the criteria for the purchase of a delivery license, as provided in subsections (a) and (b), and meets those criteria during the current license year as well, shall purchase either a delivery license or a regular business license otherwise applicable to the taxpayer, at its option.
(d) Notwithstanding Section 11-51-90.2, the delivery license purchased pursuant to subsections (a) and (b) shall be calculated in arrears, based on the related gross receipts during the preceding license year.
(e) The purchase of a delivery license or the exemption from the purchase of a delivery license pursuant to subsection (c), in and of itself, shall not establish nexus between the taxpayer and the municipality for purposes of the taxes levied by or under the authority of Title 40 or other provisions of this title, nor does the purchase of a delivery license, in and of itself, establish that nexus does not exist between the taxpayer and the municipality.
(f) If at any time during the current license year the taxpayer fails to meet the criteria specified in subsections (a) and (b), then within 45 days after any of the criteria have been violated or exceeded, the taxpayer shall purchase a business delivery license or other appropriate license from the municipality and may be subject to a penalty not to exceed ten dollars ($10).
*(Act 2006-586, p. 1548, §3; Act 2017-415, §1; Act 2019-283, §1; Act 2022-372, §1.)*
##### **§ 11-51-195** Applicability of Municipal Business License Reform Act of 2006 {#sec-11-51-195 omnilex-key=us-al-statutes--title-11--11-51-195}
(a) Each municipality that levies a business license tax shall become subject to Act 2006-586 on or before January 1, 2008. Any municipality may elect by adoption of an ordinance to have Act 2006-586 apply to it and taxpayers doing business in the municipality on and after January 1, 2007.
(b) The failure of a municipality to comply with subsection (a) shall not prevent the municipality from levying or collecting its business license taxes, but Act 2006-586 shall nevertheless govern each municipality and supersede the provisions of any inconsistent ordinance, code, resolution, or policy of that municipality.
*(Act 2006-586, p. 1548, §3.)*
##### **§ 11-51-196** Disclosure of License Information {#sec-11-51-196 omnilex-key=us-al-statutes--title-11--11-51-196}
(a) It shall be unlawful for any person to print, publish, or divulge, without the written permission or approval of the taxpayer, the license form of any taxpayer or any part of the license form, or any information secured in arriving at the amount of tax or value reported, for any purpose other than the proper administration of any matter administered by the taxing jurisdiction, or upon order of any court, or as otherwise allowed in this section. Nothing herein shall prohibit the disclosure, upon request, of the fact that a taxpayer has or has not purchased a business license or of the name and address of a taxpayer purchasing or renewing a business license from the municipality. Statistical information pertaining to taxes may be disclosed to the municipal governing body upon their request. Any person willfully violating this section shall, for each act of disclosure, have committed a Class A misdemeanor.
(b) The governing body of a municipality may adopt from time to time an ordinance consistent with Section 40-2A-10(d) to permit the exchange of business license information between and among the municipality and other municipalities adopting similar ordinances or between county and state governments, subject to the confidentiality restrictions imposed by this section.
(c) In no event shall any damages, attorney fees, or court costs be assessed against a municipal government under this section, nor shall any damages, attorney fees, or court costs be assessed against elected officials, officers, or employees of a municipal government under this section.
*(Act 2006-586, p. 1548, §3.)*
#### **Article 2A**
##### **§ 11-51-198** Authorization Required for Imposition of Municipal Occupational or License Taxes {#sec-11-51-198 omnilex-key=us-al-statutes--title-11--11-51-198}
(a) Except as provided in subsections (b) and (c), no municipality may impose an occupational or license tax on any natural person derived from the conduct of a vocation, occupation, calling, or profession within the municipality.
(b) The Legislature, by local law, may authorize a municipality to impose an occupational or license tax on any natural person derived from the conduct of a vocation, occupation, calling, or profession within the municipality.
(c) This section shall not affect or repeal an existing municipal occupational tax in effect prior to February 1, 2020.
(d) Nothing in this section is intended to affect or repeal the authority granted to a municipality to impose a municipal business license tax other than an occupational or license tax on any person engaging in an occupation in the municipality.
*(Act 2020-14, §1.)*
#### **Article 3** Sales and Use Taxes
##### **§ 11-51-200** Levy of Sales Tax Authorized; Exemption; Construction {#sec-11-51-200 omnilex-key=us-al-statutes--title-11--11-51-200}
The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of sales taxes, parallel to the state levy of sales taxes as levied by Sections 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, and 40-23-38, except where inapplicable or where otherwise provided in this article; provided, that no municipality may levy any such tax against the Alcoholic Beverage Control Board of the State of Alabama in the sale of alcoholic beverages. The phrase “except where inapplicable,” contained herein and in Sections 11-51-201, 11-51-202, and 11-51-203, shall not be construed to permit a self-administered municipality to adopt or interpret an ordinance, resolution, policy, or practice that relies on that phrase, either directly or indirectly, in order to disavow, disregard, or attempt to disavow or disregard the mandate provided in this and the following sections for conformity with the corresponding state tax levy, unless the self-administered municipality can demonstrate that the ordinance, resolution, policy, or practice will simplify collection or administration of the tax or is being made for the convenience of the taxpayer.
*(Acts 1969, No. 917, p. 1653, §1; Act 98-192, p. 310, §3.)*
##### **§ 11-51-201** Applicability of Provisions of State Sales Tax Law; Collection of Tax on Vehicles Not Sold through Licensed Alabama Dealer {#sec-11-51-201 omnilex-key=us-al-statutes--title-11--11-51-201}
(a) All taxes levied or assessed by any municipality pursuant to the provisions of Section 11-51-200 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statutes of limitation, penalties, fines, punishments, and deductions for the corresponding state tax as are provided by Sections 40-2A-7, 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, and 40-23-38, except where inapplicable or where otherwise provided in this article.
(b) Notwithstanding the provisions of subsection (a), the tax provided in Section 11-51-200 on any automotive vehicle, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the probate judge, which is not sold through a licensed Alabama dealer, shall be collected and fees paid in accordance with the provisions of Sections 40-23-104 and 40-23-107, respectively.
*(Acts 1969, No. 917, p. 1653, §2; Acts 1989, No. 89-691, p. 1358, §1; Acts 1992, No. 92-186, p. 349, §12; Act 98-192, p. 310, §3.)*
##### **§ 11-51-202** Levy of Excise or Use Tax Authorized; Levy of Lodgings Tax Authorized {#sec-11-51-202 omnilex-key=us-al-statutes--title-11--11-51-202}
(a) The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of an excise tax or use tax parallel to the state levy and assessment of excise or use taxes as levied by Article 2 of Chapter 23 of Title 40, except where inapplicable or where otherwise provided in this article.
(b) The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of a privilege or license tax in the nature of a lodgings tax, parallel to the state levy and assessment of the privilege or license tax as levied by Chapter 26 of Title 40, except where inapplicable or where otherwise provided by this article.
*(Acts 1969, No. 917, p. 1653, §3; Act 98-192, p. 310, §3.)*
##### **§ 11-51-203** Applicability of Provisions of State Excise or Use Tax Law; Collection of Tax on Vehicles Sold by Dealers Not Licensed in Alabama or by Licensed Dealers Who Fail to Collect Sales Taxes; Fees {#sec-11-51-203 omnilex-key=us-al-statutes--title-11--11-51-203}
(a) All taxes levied or assessed by any municipality pursuant to the provisions of Section 11-51-202 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statutes of limitation, penalties, fines, punishments, and deductions for the corresponding state tax as are provided by Section 40-2A-7 and Article 2 of Chapter 23 of Title 40, except where inapplicable or where otherwise provided in this article.
(b) Notwithstanding the provisions of subsection (a), the tax provided in Section 11-51-202 on any automotive vehicle, truck trailer, trailer, semitrailer, or travel trailer required to be licensed with the probate judge, which were sold by dealers that are not licensed in Alabama, or were sold by licensed Alabama dealers who failed to collect municipal or county sales taxes at the point of sale, shall be collected and fees paid in accordance with the provisions of Sections 40-23-104 and 40-23-107, respectively.
(c) For making the collection of county or municipal taxes levied under the authority of this article, the tax collector shall be entitled to a fee from the recipient county or municipality in an amount equal to five percent of the first ten thousand dollars ($10,000) of revenue collected for the recipient and three percent of all revenue collected over ten thousand dollars ($10,000) for the recipient under this article each month. Such fee shall be for the use of the tax collector, except as otherwise provided by law. The fees allowed herein shall be deducted from the tax collection of each recipient each month and the remainder of the collections shall be remitted to each recipient as provided by law; provided, however, the fee shall be disallowed with respect to any tax collected for the county or municipality unless the collections are remitted to the appropriate county or municipal tax recipient within the time allowed by law. In all counties where the tax collector is paid on a salary instead of a fee basis, all fees allowed under the terms of this section to be paid to the tax collector shall be paid, by the tax collector, into the county treasury or to the official performing the duties of county treasurer.
*(Acts 1969, No. 917, p. 1653, §4; Acts 1989, No. 89-691, p. 1358, §2; Act 98-192, p. 310, §3.)*
##### **§ 11-51-204** Adoption, Etc., of Rules and Regulations as to Ascertainment, Etc., and Levy of Taxes {#sec-11-51-204 omnilex-key=us-al-statutes--title-11--11-51-204}
(a) The governing body of a municipality making or enforcing a levy or assessment of taxes under the provisions of this article shall from time to time adopt by ordinance such rules and regulations for making returns and for ascertainment, assessment, collection, and administration of any taxes levied under the provisions of this article as it may deem necessary to enforce its provisions and, upon request, shall furnish any taxpayer with a copy of those rules and regulations.
(b) Except as provided in this article, any interpretations, rules, and regulations adopted or utilized by the governing body shall not be inconsistent with any rules and regulations which may be issued or promulgated by the Department of Revenue from time to time pursuant to the Alabama Administrative Procedure Act, for the corresponding state tax.
*(Acts 1969, No. 917, p. 1653, §5; Act 98-192, p. 310, §3.)*
##### **§ 11-51-205** Establishment of Rate of Taxes; Levy and Assessment of Taxes in Lieu of License Tax Under Section 11-51-90; Effect of Pledge of Proceeds of License Tax Under Section 11-51-90 as to Levy and Assessment of Taxes Under Article {#sec-11-51-205 omnilex-key=us-al-statutes--title-11--11-51-205}
(a) The governing body of a municipality levying or assessing taxes authorized by this article may provide by ordinance for the rate of the tax.
(b) The governing body may provide in any ordinances levying or assessing the tax that the tax is levied and assessed in whole or in part in lieu of any privilege license tax based on gross receipts in the nature of a sales or use tax which at the time of the levy is otherwise provided for by ordinance pursuant to Section 11-51-90. This subsection shall not apply to municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a municipality pursuant to Section 11-51-90, except privilege or license taxes levied in the nature of a sales or use tax.
(c) In all cases where the levy and assessment made pursuant to this article is required by ordinance, any previous pledge of the proceeds collected from a privilege license tax levied by ordinance pursuant to Section 11-51-90 shall have full force and effect as to any levy or assessment made pursuant to this article.
*(Acts 1969, No. 917, p. 1653, §6; Act 98-192, p. 310, §3.)*
##### **§ 11-51-206** Levy of Tax Outside Corporate Limits {#sec-11-51-206 omnilex-key=us-al-statutes--title-11--11-51-206}
The council or other governing body shall have the authority to levy and assess by ordinance within the police jurisdiction of any municipality or town all taxes authorized by this article; provided, that the levy and assessment shall not exceed one-half the amount levied and assessed for like businesses, sales or uses conducted within the corporate limits, fees and penalties excluded. All taxes adopted pursuant to this section shall be levied and assessed. No levy or assessment of a tax adopted by ordinance after September 1, 2015, shall take effect until a 30-day notice has been given of the adoption of the ordinance; provided, however, that no tax levy or assessment may be imposed under this section in an expanded police jurisdiction until the police jurisdiction expansion is effective under subsection (d) of Section 11-40-10. The notice given shall be the same as required for adoption of an ordinance in Section 11-45-8. Additionally, if available at no cost to the municipality, the 30-day notice shall be submitted to the Atlas Alabama state website or any successor state-operated website providing information to businesses. Each municipality shall prepare an annual report which shall include an accounting of all revenues collected in the expanded police jurisdiction after September 1, 2015, and provide a list of the services provided by the municipality and a list of providers within the police jurisdiction. A copy of the annual report, which shall be completed within 90 days of the close of the fiscal year, shall be forwarded to the Office of Examiners of Public Accounts and shall be made available to the public.
*(Acts 1969, No. 917, p. 1653, §7; Act 2015-361, §1.)*
##### **§ 11-51-207** Collection of Taxes by Department of Revenue – Generally; Municipal Rental Tax Levy {#sec-11-51-207 omnilex-key=us-al-statutes--title-11--11-51-207}
(a) The governing body of a municipality may pass an ordinance or resolution requiring the Department of Revenue to administer and collect any taxes levied and assessed under the provisions of this article, or any general, special, or local law relating to the levy or administration of a municipal sales and use, rental, or lodgings tax. In all cases where the governing body of a municipality provides by ordinance or resolution for the administration and collection of any taxes levied under the provisions of this article, or any general, special, or local law relating to the levy or administration of a municipal sales and use, rental, or lodgings tax by the Department of Revenue, administration and collections shall be made under the same provisions and procedures provided for by Sections 11-51-180 to 11-51-185, inclusive.
(b) Any municipal rental tax levy administered and collected by the Department of Revenue pursuant to Section 11-51-207(a) or Section 11-51-208 shall parallel the state levy of rental tax, except for the rate of the tax, as levied by Sections 40-12-220 to 40-12-224, inclusive, and shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules, regulations, statutes of limitation, penalties, fines, punishments, and deductions as are provided by Section 40-2A-7 and Sections 40-12-220 to 40-12-224, inclusive.
*(Acts 1969, No. 917, p. 1653, §8; Act 98–192, p. 310, §3.)*
##### **§ 11-51-208** Collection of Taxes by Department of Revenue - Reports; Costs; Enabling Act; Rules and Regulations; Assessment, Rates of Interest {#sec-11-51-208 omnilex-key=us-al-statutes--title-11--11-51-208}
(a) Municipalities may, upon request of the municipal governing body, engage the Department of Revenue to collect and administer their municipal sales, use, rental, and lodgings tax. Subject to subsections (c) and (d), the Department of Revenue shall collect and administer the municipal sales, use, rental, and lodgings tax on behalf of the requesting municipality. The department shall prepare and distribute reports, forms, and other information as may be necessary to provide for the collection and administration of any municipal tax it collects and administers and, on request, shall make all reports available for inspection by the governing body of the municipality. In collecting and administering a municipal sales, use, rental, or lodgings tax, the department shall have all the authority and duties as it has in connection with the collection and administration of the corresponding state tax including, without limitation, the provisions of Chapters 2A, 12, 23, and 26 of Title 40.
(b)(1) The Commissioner of Revenue shall deposit into the State Treasury all municipal taxes collected and, on a bi-weekly basis, shall certify to the Comptroller the amount of taxes collected for the approximate two-week period immediately preceding the certification and the amount, less the department’s actual cost of collection and administration, to be distributed to each municipality, which shall be paid to the treasurer or other custodian of funds of the municipality within three days after certification thereof.
(2) The department shall charge each municipality the actual cost to the department for collecting and administering its tax. Notwithstanding the preceding sentence, the charge shall not exceed two percent of the amount collected for each municipality. At least once each month, the Comptroller shall issue a warrant to the department for the collection and administration charges due as determined by the Commissioner of Revenue. Payment shall be from funds collected under this section and shall be the actual cost of collection and administration, not to exceed two percent of the amount collected for each municipality. Notwithstanding any other provision of law, the department shall not charge a fee to the municipality, city, or town for the cost of filing, payment processing, and remittance services relating to any tax authorized to be filed under the ONE SPOT system of the department. References in this subsection to filing, payment processing, and remittance services shall mean and refer only to the ONE SPOT system to file and pay taxes authorized to be filed thereunder, and shall not include the collection and administration of local taxes as defined in Section 11-3-11.3(i).
(3) Within 60 days after the end of each fiscal year, the department, in cooperation with the office of the Examiner of Public Accounts, shall recompute its actual costs for collection and administration of municipal taxes for the preceding fiscal year. Any collection and administration over-charge shall be redistributed to the municipalities for which the department collects and administers local taxes on a pro rata basis of each municipality’s receipts. No undercharge shall be recovered, either directly or indirectly, from any municipality.
(c) Except where the department is collecting on July 1, 1998, any municipality which has a tax levy that will be collected and administered by the department pursuant to the provisions of this section shall forward a certified copy of the enabling act, ordinance, or resolution to the department at least 60 days prior to the first day of the first month on which the department is to begin collecting and administering the tax.
(d) A new levy, or a levy changed by an amendment of a heretofore adopted levy, which will be collected and administered under this section shall not be subject to collection and administration by the department until the first day of the month next following the expiration of 60 days after receipt by the department of a certified copy of the enabling act, ordinance, or resolution with any amendments thereto.
(e) Subject to the provisions of this section, the department shall from time to time issue rules for making returns and for ascertainment, assessment, collection, and administration of taxes subject to the provisions of this section as it may deem necessary to enforce its provisions and shall furnish any county or municipal governing body with a copy of those rules within 15 days of final adoption. Upon request, the department shall furnish any taxpayer with a copy of those rules.
(f) Any self-administered municipal governing body, as defined in Section 40-2A-3(21), may elect, by the adoption of an ordinance or resolution, to assess interest on any tax delinquency. Any such assessment of interest shall be consistent with the provisions of Section 40-23-2.1. Any self-administered municipal governing body may also elect, by the adoption of an ordinance or resolution, to pay interest on any refund of tax erroneously paid. In the event that the governing body elects to assess interest on any tax delinquency, the governing body must also elect to pay interest, at the same rate charged by the municipality on tax delinquencies, on any refund of tax erroneously paid. The applicable interest rate to be charged by or due from the municipality shall be determined pursuant to Section 40-1-44. References in this subsection to “erroneously paid” taxes on which interest shall be due to the taxpayer shall only mean and refer to taxes erroneously paid to the self-administered municipality or its agent as a result of any error, omission, or inaccurate advice by or on behalf of the self-administered municipality, including in connection with a prior examination of its books and records by the self-administered municipality or its agent.
(g) The applicable interest rate to be assessed on any tax delinquency or paid on any refund of erroneously paid taxes with respect to all municipal sales, use, rental, and lodgings tax levies collected and administered by the department shall be determined in accordance with Section 40-1-44.
(h) For the purpose of this section, the terms collection and administration shall have the same meaning as in Section 11-3-11.3(i).
*(Act 98-192, p. 310, §5; Act 2017-415, §1; Act 2018-150, §1.)*
##### **§ 11-51-209** Gross Receipts Tax {#sec-11-51-209 omnilex-key=us-al-statutes--title-11--11-51-209}
The governing body of a county or municipality that levied or administered a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), on February 25, 1997, may continue to do so after July 1, 1998. However, no other governing body of a county or municipality may levy or administer a gross receipts tax in the nature of a sales tax. This section shall not apply to county or municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the county or municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a county or municipality pursuant to Section 11-51-90 or local laws, except privilege or license taxes levied in the nature of a sales tax.
*(Act 98-192, p. 310, §6.)*
##### **§ 11-51-210** Standard Singular and Multiple Jurisdictional Tax Forms {#sec-11-51-210 omnilex-key=us-al-statutes--title-11--11-51-210}
(a) By December 31, 1998, the Department of Revenue shall develop and promulgate in the form of a proposed agency rule a standard multi-jurisdictional tax form and a singular jurisdictional tax form for the reporting and payment of municipal and county sales, use, rental, and lodgings taxes for those municipalities and counties for which the department serves as the collecting agent from time to time.
(b) By December 31, 1998, a committee consisting of three representatives appointed by the Alabama League of Municipalities (ALM), who shall be municipal employees, officials, or attorneys, and three representatives appointed by the Association of County Commissions of Alabama (ACCA), who shall be county employees, officials, or attorneys, shall develop a standard multiple jurisdictional tax form and a singular jurisdictional tax form for the reporting and payment of all county and municipal sales, use, rental, and lodgings taxes for all counties and municipalities, except municipalities and counties that levy a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), that elects to be self-administered, as defined in Section 40-2A-3(21), from time to time. The committee shall also establish procedures for issuance of an amended form to take into account any new levies or changes in the tax rate or the law. Once the form and procedures are developed by the committee, they shall be distributed for comment to all counties and municipalities, the Business Council of Alabama, the Alabama Retail Association, the Alabama Chapter of the National Federation of Independent Business, and the Department of Revenue. Comments shall be returned to the committee within 45 days. Following the close of the comment period, the committee shall adopt a standard form and the procedures for issuance of an amended form. The form and procedure shall thereafter be distributed to self-administered counties and municipalities with instructions that the standard form shall be used by each self-administered county and municipality.
(c) On and after the first day of the third month following the adoption of the standard tax forms prescribed by subsection (a) and subsection (b), all municipalities and counties administered by the department, and all self-administered counties and municipalities, respectively, shall accept the applicable form without material variation. Subsequent changes to the form prescribed by subsection (b) shall be effected in compliance with the procedures developed by the committee. Any change in the tax rate shall take effect without regard to the form in use.
(d) Other than a self-administered county or municipality that levies a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), any county or municipality levying or administering any one or more sales, use, rental, or lodgings taxes shall accept, for reporting and payment of taxes due that county or municipality, bulk submissions of reports and, under regulations to be promulgated by the self-administered county or municipality affected, payments owed to such county or municipality made on behalf of a taxpayer by its properly authorized representative where such submissions are made using the appropriate form developed under this section. Any such bulk submissions or reports and payments shall include the municipality’s or county’s assigned identification number for each such taxpayer and vendee for each tax paid and contain sufficiently detailed information by which each taxpayer and each vendee can be identified such that a determination can be made as to the amount and method of assessment of tax against such taxpayer and vendee for the applicable county or municipality. The acceptance by a county or municipality of such bulk submissions shall not relieve the taxpayer on whose behalf such submissions were made from liability for any sales, use, rental, or lodgings tax arising from an error or omission made by the taxpayer’s representative. Any self-administered county or municipality accepting such bulk submission may require that the submission be signed by the taxpayer or its properly authorized representative.
(e) By June 30, 1998, every county and municipality levying or administering a sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax as of June 1, 1998, shall submit to the department a list of the taxes then levied or administered by that county or municipality and the current rates thereof. Thereafter, every county and municipality levying or administering a new sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax or amending an existing sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax levy shall submit to the department written notification of the new tax levy or the amendment of an existing tax levy, in a manner as prescribed by the department, at least 60 days prior to the effective date of the tax or amendment. The department shall send return confirmation of the notification of the tax levy or amendment of an existing tax levy to the county or municipality no later than the first day of the second month following receipt of proper notification by the county or municipality to the department. The effective date of the tax levy or amendment of an existing tax levy shall be the first day of the third month following the department’s receipt of proper notification as required herein. However, failure to notify the department, as required by this subsection, shall not invalidate the levy of the tax but shall relieve the taxpayer of liability for having charged and collected an incorrect rate as provided herein. The department shall compile this information into a publication which shall be published on a monthly basis to each municipal and county governing authority, private auditing firm, as defined in Section 40-2A-3(17), and to others who have so requested the publication. This publication shall provide a then current listing of each county and municipality levying or administering a sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax and the current rate thereof. Beginning March 1, 2019, any taxpayer collecting sales, use, rental, or lodgings tax in compliance with the tax rates published by the department as required by this subsection shall be relieved from liability to Alabama and its local jurisdictions for having charged and collected an insufficient rate based upon the rate published by the department. If the rate published by the department and relied upon by the taxpayer is less than the actual rate provided on the return confirmation provided to the county or municipality as required by this subsection, the department shall be responsible to the local jurisdiction for reimbursement of the amount due as a result of the difference between the published rate and the actual rate as provided to the department. The liability is only applicable for a period not to exceed one year from the date the incorrect rate was published by the department. Notwithstanding the preceding requirement, if a county or municipality fails to properly notify the department of a new levy or amendment to an existing levy, the department shall be relieved from liability to the local jurisdiction for a taxpayer having charged and collected an insufficient amount of tax based upon the rates published by the department. Proper notification of a new levy or amendment to an existing levy shall be in a manner as prescribed by the department. However, no penalties or interest for late payment or underpayment of taxes shall begin to accrue until the proper tax rate or levy has been on file at the department for at least 60 days, unless the taxpayer had actual knowledge of the correct tax rate or levy as of an earlier date.
(f) For the purpose of this section, the terms collection and administration shall be defined as provided for in Section 11-3-11.3(i).
*(Act 98-192, p. 310, §7; Act 2001-306, p. 376, §1; Act 2001-309, p. 385, §1; Act 2018-150, §1.)*
##### **§ 11-51-210.1** Notice of Tax Rates; Correction of Erroneously Published Rates; Liability {#sec-11-51-210.1 omnilex-key=us-al-statutes--title-11--11-51-210.1}
No later than October 1, 2018, the Department of Revenue shall send notice to every county or municipality levying a sales, use, rental, or lodgings tax regarding the rates of such taxes according to the records held by the department. Each county and municipality shall notify the department of an existing erroneous rate published by the department no later than December 1, 2018. The county or municipality notifying the department of such rate error shall send written confirmation, on county or municipal letterhead, to the department listing the erroneous rate published by the department and the corrected rate along with supporting ordinances, resolutions, or documentation. If the county or municipality fails to respond to the department regarding an erroneously published rate pursuant to this section, the taxpayer shall be relieved from liability to the local jurisdiction for having charged and collected an insufficient amount of tax on or after March 1, 2019, based upon the rates published by the department on March 1, 2019. Should the county or municipality properly respond and notify the department regarding the erroneously published rate, and the rate published by the department and relied upon by the taxpayer is in conflict with the response provided by the county or municipality as required by this section, the department shall be responsible to the local jurisdiction for reimbursement of the amount due as a result of the difference between the published rate and the actual rate as provided to the department. Such liability shall only be applicable for a period, not to exceed one year, from the date the incorrect rate was published by the department.
*(Act 2018-150, §2.)*
##### **§ 11-51-211** Quarterly Sales and Use Tax Returns {#sec-11-51-211 omnilex-key=us-al-statutes--title-11--11-51-211}
(a)(1) With respect to those municipalities and counties for which the department serves as the collecting sales tax agent from time to time, when the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly sales tax return and remittance in lieu of monthly returns may be made to the department. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the department on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with the department. Notwithstanding the above, no state-administered county or municipal sales tax return shall be due until January 20 of each year unless the total state sales tax for which any person is liable during the preceding calendar year exceeds ten dollars ($10). The department is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision.
(2) With respect to those municipalities and counties for which the department serves as the collecting use tax agent from time to time, when (i) the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year and (ii) the total state use tax for which that person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly use tax return and remittance in lieu of monthly returns may be made to the department. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the department on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with the department. Notwithstanding the above, no state-administered county or municipal use tax return shall be due until January 20 of each year unless the total state sales tax for which any person is liable during the preceding calendar year exceeds ten dollars ($10). The department is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision.
(b)(1) With respect to self-administered counties and municipalities, as defined in Section 40-2A-3(20), when the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly sales tax return and remittance in lieu of monthly returns may be made to each appropriate self-administered county or municipality. If a quarterly filing election has been made by the taxpayer, then the returns and remittance shall be made to each appropriate self-administered county or municipality on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with each appropriate self-administered county or municipality. Notwithstanding the above, no sales tax return shall be due to a self-administered county or municipality until January 20 of each year unless the total state sales tax for which any person is liable under Chapter 23 of Title 40 during the preceding calendar year exceeds ten dollars ($10). A self-administered county or municipality is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. Further, any self-administered county or municipality may, in its discretion, permit a taxpayer to file its sales tax returns on a basis less frequently than quarterly.
(2) With respect to self-administered counties and municipalities, when the total state sales tax for which any business or person domiciled in Alabama is liable under Chapter 23 of Title 40, averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly use tax return and remittance in lieu of monthly returns may be made to each appropriate self-administered county or municipality. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the appropriate self-administered county or municipality on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with each appropriate self-administered county or municipality. Notwithstanding the above, no use tax return shall be due to a self-administered county or municipality until January 20 of each year unless the total state sales tax for which any person is liable under Chapter 23 of Title 40 during the preceding calendar year exceeds ten dollars ($10). A self-administered county or municipality is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. Further, any self-administered county or municipality may, in its discretion, permit a taxpayer to file its use tax returns on a basis less frequently than quarterly.
*(Act 98-192, p. 310, §8.)*
#### **Article 4** Ad Valorem Tax and Occupational License Fee Exemptions by Class 6 Municipalities
##### **§ 11-51-220** Applicability; Definitions {#sec-11-51-220 omnilex-key=us-al-statutes--title-11--11-51-220}
This division shall apply to all Class 6 cities as defined in Section 11-40-12. As used in this division, the term “governing body” shall mean the city council or other governing body of any city subject to this division; and the term “city ad valorem taxes” shall mean all real estate and personal property ad valorem taxes imposed by a city which is subject to this division except ad valorem taxes allocated for educational purposes.
*(Act 98-318, p. 534, §1; Act 2000-573, p. 1056, §1.)*
##### **§ 11-51-221** Exemption from Real Estate and Personal Property Taxes {#sec-11-51-221 omnilex-key=us-al-statutes--title-11--11-51-221}
The governing body of any city which is subject to this division may, by the adoption of a resolution or an ordinance, grant a partial or complete exemption from city ad valorem taxes for any parcel of land or personal property located within the city, for a period of not more than 15 years. The extent of the exemption and the period of the exemption shall be fixed in the resolution or ordinance.
*(Act 98-318, p. 534, §2; Act 2000-573, p. 1056, §1.)*
##### **§ 11-51-222** Exemption from Occupational License Fees in Class 6 City {#sec-11-51-222 omnilex-key=us-al-statutes--title-11--11-51-222}
The governing body of any city which is subject to this division may, by the adoption of a resolution or an ordinance, exempt, from occupational license fees, in whole or in part, all persons employed upon certain designated parcels of land located within the city, for a period of not more than 15 years. The extent of the exemption and the period of the exemption shall be fixed in the resolution or ordinance.
*(Act 98-318, p. 534, §3.)*
##### **§ 11-51-223** Assessment and Collection of Privilege or License Tax, Etc., Authorized; Exception {#sec-11-51-223 omnilex-key=us-al-statutes--title-11--11-51-223}
No provision of this division shall prevent the governing body of the city from assessing and collecting a privilege or license tax or fee from every person, firm, company, or corporation engaged in, or carrying on, any business, profession, trade, vocation, or occupation on a parcel of land exempt from city real estate ad valorem taxes under this division, except that no occupational license fee may be assessed against, or collected from, persons who have been exempted from occupational license fees under Section 11-51-222, to the extent, and during the period of, the exemption.
*(Act 98-318, p. 534, §4.)*
#### **Division 2** Ad Valorem Tax for Educational Purposes
##### **§ 11-51-240** Applicability; Definitions {#sec-11-51-240 omnilex-key=us-al-statutes--title-11--11-51-240}
This division shall apply to all Class 6 municipalities as defined in Section 11-40-12, and all city boards of education located within those municipalities. As used in this division, the term “governing body” shall mean the city council or other governing body of any municipality subject to this division; and the term “municipal and county ad valorem taxes allocated for municipal educational purposes” shall mean all real estate ad valorem taxes and all personal property ad valorem taxes imposed by a Class 6 municipality or levied by the county in which the municipality is located which are allocated for municipal educational purposes in the municipality.
*(Act 2000-571, p. 1054, §1.)*
##### **§ 11-51-241** Exemption {#sec-11-51-241 omnilex-key=us-al-statutes--title-11--11-51-241}
The governing body of any Class 6 municipality, by the adoption of a resolution or an ordinance, and the board of education of the municipality by the adoption of a resolution, may grant, with respect to any parcel of commercial property located within the municipality, for a period of not more than 15 years, a partial or complete exemption from the portion of the municipal and county ad valorem taxes allocated for municipal educational purposes which exceeds 20 mills; provided, the revenue from municipal and county ad valorem taxes allocated for municipal educational purposes with respect to the parcel of commercial property continues to equal or exceed the amount of revenue with respect to the parcel for the tax year immediately preceding the first tax year for which the exemption is effective. The extent of the exemption and the period of the exemption shall be fixed in the resolution or ordinance.
*(Act 2000-571, p. 1054, §2.)*
### **Chapter 52** Planning, Zoning and Subdivisions
#### **Article 1** General Provisions
##### **§ 11-52-1** Definitions {#sec-11-52-1 omnilex-key=us-al-statutes--title-11--11-52-1}
When used in this chapter, the following words or phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) MUNICIPALITY or MUNICIPAL. Cities or towns.
(2) MAYOR. The chief executive of the municipality, whether the official designation of his office be mayor, city manager, or otherwise.
(3) COUNCIL. The chief legislative body of the municipality.
(4) COUNTY COMMISSION. The chief administrative or legislative body of the county.
(5) STREETS. Streets, avenues, boulevards, roads, lanes, alleys, viaducts, and other ways.
(6) SUBDIVISION. The division of a lot, tract, or parcel of land into two or more lots, plats, sites, or other divisions of land for the purpose, whether immediate or future, of sale, of lease, or of building development. The term includes resubdivision and, when appropriate to the context, relates to the process of subdividing or to the land or territory subdivided.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §786; Act 2012-297, p. 637, §1.)*
##### **§ 11-52-2** Adoption, Amendment, Execution, Etc., of Municipal Plan and Creation of Municipal Planning Commission Authorized; Designations of Planning Commissions {#sec-11-52-2 omnilex-key=us-al-statutes--title-11--11-52-2}
(a) Any municipality is hereby authorized and empowered to make, adopt, amend, extend, add to, or carry out a municipal plan as provided in this article and to create by ordinance a planning commission with the powers and duties herein set forth.
(b) The planning commission of a city shall be designated city planning commission and the planning commission of a town, town planning commission, as its council may specify.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §787.)*
##### **§ 11-52-3** Municipal Planning Commission - Composition; Qualifications, Appointment, Terms of Office, Compensation, and Removal of Members; Vacancies {#sec-11-52-3 omnilex-key=us-al-statutes--title-11--11-52-3}
(a) The commission shall consist of nine members: The mayor, or his or her designee, one of the administrative officials of the municipality selected by the mayor, a member of the council to be selected by it as a member ex officio and six persons who shall be appointed by the mayor, if the mayor is an elective officer, otherwise by the officer as the council may in the ordinance creating the commission designate as the appointing power; provided, that in any Class 1 municipality, the commission shall consist of 16 members: The mayor, one of the administrative officials of the municipality selected by the mayor, two members of the council to be selected by it as members ex officio, and 12 persons who shall be selected by the council. In the event the mayor designates a person to sit in his or her place on the municipal planning commission, the person so appointed shall serve during the term of the mayor, unless the original appointment shall be limited to a term certain of not less than 12 months at time of appointment.
In addition to regular members, the mayor and each of the council members of Class 1 municipalities serving on the commission may each appoint, from the administrative staff of the mayor and council exclusively, a supernumerary member who shall be authorized to be counted for the purpose of determining a quorum, and, while serving, to act with all of the power and authority of a regular member whenever such municipal official is not personally in attendance.
In addition to the regular members, in all cities having populations of not less than 175,000 nor more than 275,000, two supernumerary members shall be appointed to serve on the board at the call of the chair only in the absence of regular members, and while so serving, they shall have and exercise the power and authority of regular members.
(b) All members of the commission shall serve without compensation, and the appointed members shall hold no other municipal office, except, that one of the appointed members may be a member of the zoning board of adjustment or appeals, except in all cities having populations of not less than 175,000 nor more than 275,000, according to the most recent federal decennial census, wherein no member of the commission may be a member of the zoning board of adjustment or appeals and wherein all members of the commission shall be bona fide residents and qualified electors of such cities, except that the 12 appointed members of any commission elected by the council in Class 1 municipalities, under subsection (a) of this section, upon adoption of a resolution by the city council approving Acts 1994, No. 94-672, shall be paid twenty-five dollars ($25) per meeting for each meeting of the commission attended by the members. No member shall be paid more than fifty dollars ($50) in any one month, and any appointed member who is an elected official or an employee of the municipality shall not be eligible to receive the compensation.
(c) The terms of ex officio members shall correspond to their respective official tenures, except that the term of the administrative official selected by the mayor shall terminate with the term of the mayor selecting the member.
The term of each appointed member shall be six years or until the successor takes office, except that the respective terms of five of the members first appointed shall be one, two, three, four, and five years, provided, that in any city having a 16 member commission as provided in subsection (a) of this section, the respective terms of five pairs of the members first appointed by council shall be one, two, three, four, and five years, and provided further, that in all cities having populations of not less than 175,000 nor more than 275,000, the term of each appointed member of the commission shall be for three years.
(d) Members other than the member selected by the council may, after a public hearing, be removed by the mayor for inefficiency, neglect of duty or malfeasance in office, provided, that in any city having a 16 member commission, as provided in subsection (a) of this section, members may, after a public hearing, be removed by the council for any of the above reasons or for continued failure to attend meetings. The council may for like cause remove the member or members selected by it. The mayor or council, as the case may be, shall file a written statement of reasons for such removal.
(e) Vacancies occurring otherwise than through the expiration of term shall be filled for the unexpired term by the mayor in the case of members selected or appointed by him or her, by the council in the case of the member, or other members selected by it and by the appointing power designated by the council in municipalities in which the mayor is not an elective officer.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §788; Acts 1955, No. 446, p. 1000; Acts 1965, No. 587, p. 1098; Acts 1966, Ex. Sess., No. 429, p. 573; Acts 1971, No. 663, p. 1371; Acts 1983, No. 83-437, p. 618; Acts 1983, No. 83-476, p. 668; Acts 1988, No. 88-215, p. 332; Acts 1994, No. 94-672, §1.)*
##### **§ 11-52-3.1** Municipal Planning Commission - Membership in Class 2 Municipalities {#sec-11-52-3.1 omnilex-key=us-al-statutes--title-11--11-52-3.1}
In a Class 2 municipality, two additional members of the municipal planning commission created under Section 11-52-3, shall be appointed by the mayor and shall reside outside the corporate limits of the municipality, but within the territorial jurisdiction of the planning commission at the time of the appointment. The two additional members shall be appointed by the mayor within 90 days after May 5, 2009. The additional members shall serve the same terms and have the same powers and duties as other members of the planning commission.
*(Act 2009-364, p. 688, §1.)*
##### **§ 11-52-4** Municipal Planning Commission - Chairman and Other Officers; Meetings; Adoption of Rules of Procedure; Maintenance of Record of Resolutions, Transactions, Etc {#sec-11-52-4 omnilex-key=us-al-statutes--title-11--11-52-4}
The commission shall elect its chairman from among the appointed members and create and fill such other of its offices as it may determine. The term of office of the chairman shall be one year, with eligibility for reelection. The commission shall hold at least one regular meeting in each month. It shall adopt rules for transaction of business and shall keep a record of its resolutions, transactions, findings, and determinations, which record shall be a public record.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §789.)*
##### **§ 11-52-5** Municipal Planning Commission - Appointment, Etc., of Employees; Contracts with Consultants, Etc.; Expenditure of Funds {#sec-11-52-5 omnilex-key=us-al-statutes--title-11--11-52-5}
(a) The commission may appoint such employees as it may deem necessary for its work, whose appointment, promotion, demotion, and removal shall be subject to the same provisions of law as govern other corresponding civil employees of the municipality.
The commission may also contract with city planners, engineers, architects, and other consultants for such services as it may require.
(b) The expenditures of the commission, exclusive of gifts, shall be within the amounts appropriated for the purpose by the council, which shall provide the funds, equipment, and accommodations necessary for the commission’s work.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §790.)*
##### **§ 11-52-6** Municipal Planning Commission - Powers and Duties Generally {#sec-11-52-6 omnilex-key=us-al-statutes--title-11--11-52-6}
(a) In general, the commission shall have such powers as may be necessary to enable it to fulfill its functions, promote municipal planning or carry out the purposes of this chapter.
(b) The commission shall have power to promote public interest in and understanding of the master plan and to that end may publish and distribute copies of the plan or of any report and may employ such other means of publicity and education as it may determine.
(c) Members of the commission, when duly authorized by the commission, may attend municipal planning conferences or meetings of municipal planning institutes or hearings upon pending municipal planning legislation, and the commission may, by resolution, spread upon its minutes, pay the reasonable traveling expenses incident to such attendance.
(d) The commission shall, from time to time, recommend to the appropriate public officials programs for public structures and improvements and for the financing thereof.
(e) It shall be part of the duties of the commission to consult and advise with public officials and agencies, public utility companies, civic, educational, professional and other organizations and with citizens with relation to the protecting or carrying out of the plan.
(f) The commission shall have the right to accept and use gifts for the exercise of its functions.
(g) All public officials shall, upon request, furnish to the commission within a reasonable time such available information as it may require for its work.
(h) The commission, its members, officers and employees, in the performance of their functions, may enter upon any land and make examinations and surveys and place and maintain necessary monuments and marks thereon.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §795.)*
##### **§ 11-52-7** Municipal Planning Commission - Powers as to Zoning {#sec-11-52-7 omnilex-key=us-al-statutes--title-11--11-52-7}
The commission shall have all powers heretofore granted by law to the zoning commission of the municipality and, from and after the creation of a planning commission in such municipality, all powers and records of the zoning commission shall be transferred to the planning commission; provided, that, in the event that the existing zoning commission shall be nearing the completion of its zoning plan, the council may, by resolution, postpone the said transfer of the zoning commission’s powers until the completion of such zoning plan, but such postponement shall not exceed a period of six months.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §796.)*
##### **§ 11-52-8** Adoption, Etc., of Master Plan for Physical Development of Municipality by Commission - Authorization and Procedure Generally; Contents of Plan {#sec-11-52-8 omnilex-key=us-al-statutes--title-11--11-52-8}
(a) It shall be the function and duty of the commission to make and adopt a master plan for the physical development of the municipality, including any areas outside of its boundaries which, in the commission’s judgment, bear relation to the planning of such municipality.
(b) The plan, with the accompanying maps, plats, charts, and descriptive matter shall show the commission’s recommendations for the development of said territory, including, among other things, the general location, character and extent of streets, viaducts, subways, bridges, waterways, waterfronts, boulevards, parkways, playgrounds, squares, parks, aviation fields and other public ways, grounds and open spaces, the general location of public buildings and other public property, the general location and extent of public utilities and terminals, whether publicly or privately owned or operated, for water, light, sanitation, transportation, communication, power, and other purposes, the removal, relocation, widening, narrowing, vacating, abandonment, change of use, or extension of any of the foregoing ways, grounds, open spaces, buildings, military installations, property, utilities, or terminals; as well as a zoning plan for the control of the height, area, bulk, location, and use of buildings and premises.
(c) As the work of making the whole master plan progresses, the commission may from time to time adopt and publish a part or parts thereof, any such part to cover one or more major sections or divisions of the municipality or one or more of the aforesaid or other functional matters to be included in the plan.
(d) The commission may from time to time amend, extend, or add to the plan.
(e) For purposes of this section, the term “military installation” has the same meaning as specified in Section 11-106-3.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §791; Act 2014-13, p. 44, §2.)*
##### **§ 11-52-9** Adoption, Etc., of Master Plan for Physical Development of Municipality by Commission - Conduct of Surveys and Studies; Purpose of Plan {#sec-11-52-9 omnilex-key=us-al-statutes--title-11--11-52-9}
In the preparation of such plans the commission shall make careful and comprehensive surveys and studies of present conditions and future growth of the municipality and with due regard to its relation to neighboring territory.
The plan shall be made with the general purpose of guiding and accomplishing a coordinated, adjusted, and harmonious development of the municipality and its environs which will, in accordance with present and future needs, best promote health, safety, morals, order, convenience, prosperity, and general welfare as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, the promotion of safety from fire and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the promotion of good civic design and arrangement, wise and efficient expenditure of public funds, and the adequate provision of public utilities and other public requirements.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §792.)*
##### **§ 11-52-10** Adoption, Etc., of Master Plan for Physical Development of Municipality by Commission - Procedure for Adoption, Etc {#sec-11-52-10 omnilex-key=us-al-statutes--title-11--11-52-10}
The commission may adopt the plan as a whole by a single resolution or may by successive resolutions adopt successive parts of the plan, said parts corresponding with major geographical sections or divisions of the municipality or with functional subdivisions of the subject matter of the plan and may adopt any amendment or extension thereof or addition thereto.
Before the adoption of the plan or any such part, amendment, extension or addition, the commission shall hold at least one public hearing thereon, notice of the time and place of which shall be given by one publication in a newspaper of general circulation in the municipality and in the official gazette, if any, of the municipality; provided, that the planning commission may dispense with such public hearing prior to the approval or disapproval of a plan when the municipal governing body to whom the plan will be submitted will be required to hold a public hearing, and give notice thereof before the plan can be adopted by such municipality.
The adoption of the plan or of any such part or amendment or extension or addition shall be by resolution of the commission carried by the affirmative votes of not less than six members of the commission or, in any city having a 16-member planning commission as provided in subsection (a) of Section 11-52-3, by the affirmative votes of not less than 12 members of the commission. The resolution shall refer expressly to the maps and descriptive and other matters intended by the commission to form the whole or part of the plan, and the action taken shall be recorded on the map and plan and descriptive matter by the identifying signature of the chairman or secretary of the commission. An attested copy of the plan or part thereof shall be certified to the governing body and to the county probate judge.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §793; Acts 1953, No. 857, p. 1147; Acts 1955, No. 428, p. 974.)*
##### **§ 11-52-11** Proposed Construction of Streets, Public Buildings, Utilities, Etc., to Be Submitted for Approval of Commission After Adoption of Master Plan; Overruling of Commission {#sec-11-52-11 omnilex-key=us-al-statutes--title-11--11-52-11}
Whenever the commission shall have adopted the master plan of the municipality or of one or more major sections or districts thereof, no street, square, park, or other public way, ground or open space or public building or structure or public utility, whether publicly or privately owned, shall be constructed or authorized in the municipality or in such planned section and district until the location, character, and extent thereof shall have been submitted to and approved by the commission; provided, that in case of disapproval the commission shall communicate its reasons to the council, which shall have the power to overrule such disapproval by a recorded vote of not less than two thirds of its entire membership; provided further, that if the public way, ground, space, building, structure, or utility is one the authorization or financing of which does not, under the law or charter provisions governing same, fall within the province of the municipal council, then the submission by the planning commission shall be to the board, commission, or body having such jurisdiction and the planning commission’s disapproval may be overruled by said board, commission, or body by a vote of not less than two thirds of its membership.
The failure of the commission to act within 60 days from and after the date or official submission to the commission shall be deemed approval.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §794.)*
##### **§ 11-52-12** Alternate Structure for Class 3 Municipality Planning Commission Created Pursuant to Section 11-52-3 {#sec-11-52-12 omnilex-key=us-al-statutes--title-11--11-52-12}
(a) The governing body of any Class 3 municipality may determine by ordinance that any planning commission of the municipality created pursuant to the provisions of Section 11-52-3 shall consist of 12 members: Namely, the mayor, or at the discretion of the mayor, any administrative assistant to the mayor or any administrative officer of the municipality under the supervision of the mayor; one administrative official of the municipality selected by the mayor; one member of the governing body selected by it as member ex officio; and nine members appointed by the mayor.
(b) Where an alternate planning commission structure of any Class 3 municipality has been provided for by ordinance as provided herein, the adoption of any plan or amendment by the commission shall be by resolution of the commission and shall be carried by the affirmative votes of not less than eight members of the commission. Six members of the commission shall constitute a quorum for the conduct of business. The approval of any subdivision and the passage of any question before the commission other than the adoption or amendment of any plan, shall be carried by majority of those members present.
*(Acts 1980, No. 80-770, p. 1600.)*
##### **§ 11-52-13** Alternate Structure for Class 5 Municipality Planning Commission {#sec-11-52-13 omnilex-key=us-al-statutes--title-11--11-52-13}
(a) The governing body of any Class 5 municipality may determine by ordinance that any planning commission of the municipality created pursuant to the provisions of Section 11-52-3, shall consist of nine members: Namely, eight members appointed by the governing body representing as equally as possible the several districts or wards of the municipality, such representation to be determined by the governing body and one member appointed by the mayor or chief executive officer of the municipality. The eight appointees appointed by the governing body shall serve at the pleasure of the governing body and the member appointed by the mayor or chief executive officer shall serve at his pleasure. Each member of the governing body excluding the mayor or chief executive officer shall nominate persons to fill two vacancies on said commission within two months after the vacancy occurs. Failure to do so shall result in the vacancy being filled by the governing body without said nomination. In addition, each member of the governing body shall nominate an alternate member of the commission subject to the approval of the governing body. The powers and duties of the alternate members shall be prescribed by the governing body. Alternate members shall serve at the pleasure of the governing body. The city engineer of any Class 5 municipality who adopts this alternate planning commission structure shall be an ex officio member of the planning commission but shall have no voting rights.
(b) Where an alternate planning commission structure of any Class 5 municipality has been provided for by ordinance as provided herein, the action of the planning commission shall be subject to appeal to the governing body of the municipality. An appeal of the action of the local governing body shall be to the circuit court of the county in which such municipality is located.
*(Acts 1985, 2nd Ex. Sess., No. 85-927, p. 221.)*
##### **§ 11-52-14** Alternate Structure of Planning Commission in Class 5 Municipality Having City Manager, Mayor Commission Form of Government {#sec-11-52-14 omnilex-key=us-al-statutes--title-11--11-52-14}
(a) When used in this section, the words municipality, municipalities, mayor, and council shall have the meanings as provided for in Section 11-52-1.
(b)(1) The council of any Class 5 municipality with a city manager, mayor commission form of government may determine by ordinance that any planning commission of the municipality created pursuant to the provisions of Section 11-52-3, shall consist of nine members: Namely, eight regular members appointed by the council and representing as equally as possible the several districts, wards, or other areas of the municipality, such representation to be determined by the council, and one regular member appointed by the mayor.
(2) The regular members of the planning commission shall elect a chairman and vice-chairman, both of whom shall be regular members, and a secretary who need not be a member of the planning commission.
(3) The council shall appoint four supernumerary members to the planning commission, and the mayor shall appoint one supernumerary member to the planning commission.
(4) Supernumerary members shall serve at the call of the chairman only in the absence of regular members or in the event that one or more regular members excuse themselves from deliberation on a particular item being considered by the planning commission. While so serving, supernumerary members shall have and exercise the power and authority of regular members.
(5) The terms of the regular members and supernumerary members appointed by the council shall be four years or until their successors take office, provided, however, that the terms of the regular members and supernumerary members initially appointed pursuant to this section shall be staggered as follows: Four regular members and two supernumerary members shall serve four-year terms; two regular members and one supernumerary member shall serve three-year terms; two regular members and one supernumerary member shall serve two-year terms; and one regular member and one supernumerary member shall serve one-year terms. The mayor shall make the appointment of the one regular member and one supernumerary member who shall initially serve a one-year term. Any regular member or supernumerary member may be reappointed.
(6) After a public hearing, the council, in the case of regular or supernumerary members appointed by it, or the mayor, in the case of the regular or the supernumerary member appointed by him or a previous mayor, may remove a regular or supernumerary member for reason of inefficiency, neglect of duty, malfeasance in office, or continued failure to attend meetings. The council or mayor, as the case may be, shall file a written statement of reasons for removal.
(7) Vacancies occurring other than through expiration of term shall be filled for the duration of the unexpired term by the mayor in the case of the regular member and supernumerary member appointed by him or a previous mayor; and by the council in the case of the regular members and supernumerary members appointed by it.
(8) The city engineer of any municipality adopting an alternate planning commission structure pursuant to this section, or a similar official in the case of a municipality having no city engineer, shall be an ex officio member of the planning commission, but shall have no voting privileges.
(9) All regular members and supernumerary members shall serve as such without compensation, and shall hold no other municipal office.
(c) Upon the adoption by the council of any Class 5 municipality with a city manager, mayor commission form of government of an ordinance adopting an alternate planning commission structure pursuant to this section, the terms of the incumbent members of any existing planning commission shall be terminated.
(d) Unless specified otherwise in this section, the duties, powers, responsibilities, and procedures of any planning commission appointed pursuant to this section shall be as provided for in Title 11, Chapter 52.
*(Acts 1986, No. 86-377, p. 562.)*
##### **§ 11-52-15** Municipal Planning Commission {#sec-11-52-15 omnilex-key=us-al-statutes--title-11--11-52-15}
A Class 6 municipality with a council-manager form of government may provide by ordinance for the members of the municipal planning commission, upon the expiration of the current term of office for the current members, to be appointed by the city council in lieu of appointment in the manner provided in Section 11-52-3; provided that the mayor or his or her designee shall be a voting member of the planning commission and the mayor shall appoint all remaining members of the planning commission subject to approval by the city council.
Upon the expiration of the current term of office for the current members of the municipal planning commission, a member serving on the city council of a Class 6 municipality with a council-manager form of government or an employee of a Class 6 municipality with a council-manager form of government may not serve as a member of the municipal planning commission.
*(Act 2000-555, p. 1020, §1.)*
##### **§ 11-52-16** Alternative Structure for Class 6 Municipality Planning Commission {#sec-11-52-16 omnilex-key=us-al-statutes--title-11--11-52-16}
(a) The governing body of any Class 6 municipality may determine by ordinance that the planning commission of the municipality, created under authority of Section 11-52-3, shall consist of seven voting members appointed as follows:
(1) Six members appointed by the mayor.
(2) One member, appointed by a majority of the city council, who may be a member of the city council.
(b) In addition, one nonvoting advisory member shall be appointed by the mayor, who shall be a senior administrative official of the municipality qualified by education, training, experience, and job responsibilities to provide substantive and technical advice, assistance, and guidance to the planning commission in the exercise of its statutory functions.
(c) All members of the planning commission shall be at least 21 years of age and, to the extent not inconsistent with this section, shall meet the additional qualifications for membership on municipal planning commissions as prescribed by law.
(d) All voting members of the planning commission shall be residents of the municipality. A vacancy shall be declared by the planning commission, after notice to the member, if a voting member of the planning commission ceases to reside in the municipality. The vacant position shall be filled by the mayor or council, as appropriate, within 90 days of a declaration of vacancy by the planning commission. The declaration of a vacancy shall operate to terminate the membership and voting authority of the member who no longer resides within the municipality.
*(Act 2009-753, p. 2277, §1.)*
#### **Article 2** Control of Subdivisions Generally
##### **§ 11-52-30** Planning Jurisdiction; Subdivision Regulations; Approval of Amps or Plats; Limits on Exercise of Powers {#sec-11-52-30 omnilex-key=us-al-statutes--title-11--11-52-30}
(a)(1) Except as otherwise provided herein, the planning jurisdiction of any municipal planning commission shall include all land located in the corporate limits of the municipality and all land lying within the police jurisdiction of the municipality on January 1, 2021.
(2) Notwithstanding subdivision (1), beginning January 1, 2023, the planning jurisdiction of any municipal planning commission shall include all land located in the corporate limits of the municipality and all land not located in any other municipality within a mile and a half outside the corporate limits, unless extended by local law enacted after January 1, 2023, to include all land not located in any other municipality within three miles outside the corporate limits; except that, in the case of any nonmunicipal land lying within the planning jurisdiction of more than one municipality having a municipal planning commission, the jurisdiction of each municipal planning commission shall terminate at a boundary line equidistant from the respective corporate limits of the municipalities.
(3) Any alterations of a municipal planning jurisdiction based upon annexation or deannexation of property within the corporate limits of a municipality shall occur once a year on the first day of January and shall take effect for any annexations which were finalized on or before the preceding first day of October.
(b)(1) Except as otherwise provided by law on July 26, 2021, nothing in this section shall be interpreted as allowing the municipal planning commission of a municipality to exercise any authority outside the corporate limits of the municipality other than the regulation of subdivisions.
(2) Within a municipal planning jurisdiction outside of the corporate limits of the municipality, municipal subdivision regulations shall not be applied to any transaction resulting in the direct sale, deed, or transfer of land by the owner to any individual who may be eligible to inherit that land from the owner under Article 3 of Chapter 8 of Title 43, relating to intestate succession. Notwithstanding the foregoing, any transaction resulting in the direct sale, deed, or transfer of that land occurring within 24 months of the excepted transfer shall be subject to municipal subdivision regulations.
(c) In all counties having a population of 600,000 or more according to the 1950 federal census or any succeeding decennial federal census, the county planning and zoning commission shall be invested with the authority to zone property outside of municipal corporate limits, except where that authority has previously been provided to a municipality by general or local law on or before July 26, 2021; provided, further, that in all counties having a population of 600,000 or more inhabitants according to the 1950 federal census or any succeeding decennial federal census, the county commission of the county may establish minimum specifications and regulations governing the lay-out, grading, and paving of all streets, avenues, and alleys and the construction or installation of all water, sewer, or drainage pipes or lines in any subdivision lying wholly or partly in areas outside the corporate limits of any municipality in the counties and relating to subdivisions lying within the corporate limits of any municipality in the counties which has declined or failed to exercise zoning jurisdiction and control as provided in this section.
(d) A municipal planning commission, by resolution properly adopted no later than the first day of October of any year, may reduce the radius of its planning jurisdiction, effective on the first day of the following January. The municipal planning commission shall cease to levy any charges or fees relating to subdivision planning within the area removed from the planning jurisdiction. A copy of the resolution altering the planning jurisdiction shall be forwarded to the county commission within five days of adoption. Additionally, nothing in this subsection shall be construed to alter the provisions of Article 5 of Chapter 49, which require a municipality to assume responsibility for roads annexed into the municipality under certain circumstances.
(e)(1)a. If a county commission has adopted subdivision regulations pursuant to Chapter 24, those subdivision regulations shall apply to the development of subdivisions within the planning jurisdiction of a municipal planning commission outside the corporate limits of a municipality and shall be regulated and enforced by the county commission in the same manner and to the same extent as other subdivision development governed by the county’s subdivision regulations.
b.1. Notwithstanding paragraph a., the county commission and the municipal planning commission may enter into a written agreement providing that the municipal planning commission shall be responsible for the regulation and enforcement of the development of subdivisions within the planning jurisdiction of the municipal planning commission under the terms and conditions of the agreement.
2. In order to be effective, the agreement shall be approved by a resolution adopted by the county commission, an ordinance adopted by the municipal governing body, and a resolution adopted by the municipal planning commission of the municipality.
(2)a. In those counties in which the county commission has adopted subdivision regulations pursuant to Chapter 24 and the municipal planning commission has been unsuccessful in reaching an agreement to exercise its jurisdiction as provided in subdivision (1), the municipal planning commission shall discontinue the regulation of subdivisions outside of its corporate limits and shall cease levying any charges or fees relating to subdivision regulation within the planning jurisdiction, no later than 24 months after receipt of written notice by the municipal planning commission from the county commission detailing that the county commission has adopted subdivision regulations.
b. The county commission, by resolution, may withdraw jurisdiction over future subdivisions located in the municipal planning jurisdiction, effective six months after receipt of written notice by the municipal planning commission from the county commission detailing the adoption of the resolution.
c. After withdrawal by the county commission, the municipal planning commission may resume subdivision regulation and the levying of related charges or fees within its planning jurisdiction outside the corporate limits.
d. The county commission, no sooner than 24 months following withdrawal, may adopt a resolution to reinstate subdivision regulation in the municipal planning jurisdiction, effective six months after receipt of written notice by the municipal planning commission from the county commission detailing the adoption of the resolution. The municipal planning commission shall then discontinue the regulation of subdivisions outside of its corporate limits and shall cease levying any charges or fees relating to subdivision regulation.
(f) If a county commission has not adopted subdivision regulations pursuant to Chapter 24, the municipal planning commission shall have sole jurisdiction for the regulation and enforcement of the development of subdivisions within the planning jurisdiction of the municipal planning commission.
(g) Subject to subdivision (b)(2) and subsection (e), and unless otherwise provided for by an agreement between a county and a municipality adopted pursuant to this section, if any portion of a proposed subdivision is located within a municipal planning jurisdiction as provided in this section, the subdivision regulations of the municipal planning commission shall apply to the proposed subdivision.
(h) Any subdivision issued approval by a municipality on or before July 26, 2021, or while a municipal planning commission is regulating that subdivision pursuant to subsection (e) shall not require separate approval by the county commission; provided, that the plans were prepared and accepted to standards meeting or exceeding those required by the county commission.
(i) If the municipal planning commission accepts responsibility for the development of a subdivision within its planning jurisdiction outside of the corporate limits as provided in subsection (e), the county commission shall not accept any roads or bridges within the subdivision for county maintenance unless the county engineer certifies to the county commission that the road or bridge meets the minimum road and bridge standards of the county. This section shall not apply to any roads or bridges which the county has accepted for maintenance prior to October 1, 2012.
(j) If the county commission is responsible for the regulation and enforcement of a subdivision development within the planning jurisdiction of a municipal planning commission outside the corporate limits of a municipality, the recording of any map or plat related to the subdivision shall be governed by Chapter 24.
(k) If the municipal planning commission is responsible for the regulation and enforcement of a subdivision development within the planning jurisdiction of the municipal planning commission outside the corporate limits of the municipality, no map or plat of any subdivision shall be recorded, and no property shall be sold referenced to the map or plat, until and unless it has been first submitted to and approved by the municipal planning commission, pursuant to Section 11-52-32 and its adopted procedures, and then certified by the county engineer or his or her designee as follows within 30 days of being submitted to the county engineer: “The undersigned, as County Engineer of the County of _________ of Alabama, hereby certifies on this ______ day of _____, 20___, that the _____________ Planning Commission approved the within plat for the recording of same in the Probate Office of _________ County, Alabama.”
(l) Approval by the county engineer pursuant to this subsection shall not constitute approval in lieu of or on behalf of any municipality with respect to subdivision development regulated and enforced by the municipal planning commission, wherein all maps or plats must be first submitted to and approved by the municipal planning commission or other appropriate municipal agency exercising jurisdiction over the subdivision.
(m) Nothing in this section shall be interpreted as allowing a municipal planning commission or a municipality to exercise the power of eminent domain outside of its corporate limits.
(n) Nothing in this section shall be interpreted as allowing a municipal planning commission or a municipality to levy taxes or fees in its planning jurisdiction outside of its corporate limits, except for those fees relating to the regulation of subdivisions.
(o) Nothing in this section shall limit or impair the authority of a municipality to regulate the construction of buildings within the police jurisdiction of the municipality as provided in Section 11-40-10.
(p) Nothing in this section shall be construed to grant the county commission or county engineer the authority to regulate subdivision development or approve maps or plats for any developments within the corporate limits of a municipality.
(q) Act 2021-297 does not affect any public or private contracts, or any mutual aid agreements between law enforcement, fire service, public safety, or emergency service agencies.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §797; Acts 1949, No. 421, p. 597; Acts 1959, No. 296, p. 868, §1; Act 2009-498, p. 921, §1; Act 2012-297, p. 637, §1; Act 2015-361, p. 1101, §1; Act 2021-297, §§2, 4.)*
##### **§ 11-52-31** Adoption, Publication, and Certification of Subdivision Regulations; Contents of Regulations; Bond {#sec-11-52-31 omnilex-key=us-al-statutes--title-11--11-52-31}
(a) Except where the county commission is responsible for the regulation of subdivision regulations within the territorial jurisdiction of a municipal planning commission pursuant to Section 11-52-30, the municipal planning commission shall adopt subdivision regulations governing the subdivision of land within its jurisdiction. The regulations may provide for the proper arrangement of streets in relation to other existing or planned streets and to the master plan, for adequate and convenient open spaces for traffic, utilities, access of fire-fighting apparatus, recreation, light and air and for the avoidance of congestion of population, including minimum width and area of lots. The regulations may include provisions as to the extent to which streets and other ways shall be graded and improved and to which water and sewer and other utility mains, piping, or other facilities shall be installed as a condition precedent to the approval of the plat. The regulations or practice of the municipal planning commission may provide for a tentative approval of the plat previous to the installation, but any tentative approval shall be revocable and shall not be entered on the plat. In lieu of the completion of the improvements and utilities prior to the final approval of the plat, the municipal planning commission may accept a bond with surety to secure to the municipality the actual construction and installation of the improvements or utilities at a time and according to specifications fixed by or in accordance with the regulations of the municipal planning commission. The municipality is hereby granted the power to enforce the bond by all appropriate legal and equitable remedies.
(b) Notwithstanding any other provision of law, regulations adopted by a municipal planning commission may authorize administrative approval of a minor subdivision without a public hearing. A minor subdivision consists of the subdivision of land into not more than six lots or a reduction of the number of lots in an existing subdivision. The developer of a minor subdivision approved by the municipal planning commission shall not require any public improvements, the dedication of a public way, or the expenditure of any public funds, and the plan for the minor subdivision shall not conflict with the master plan, official zoning map, any zoning ordinance, or any other subdivision regulations. This subsection does not require a municipal planning commission to authorize approval of a minor subdivision without first holding a public hearing.
(c) All regulations shall be published as provided by law for the publication of ordinances, and before adoption a public hearing shall be held thereon. A copy thereof shall be certified by the municipal planning commission to the probate judge of the county in which the municipality and territory are located.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §798; Act 2012-297, p. 637, §1; Act 2015-460, §1.)*
##### **§ 11-52-32** Procedure for Approval or Disapproval of Plat by Planning Commission Generally; Legal Effect of Approval of Plan; Powers of Planning Commission as to Subdivision Zoning Generally; Approval or Disapproval of Plat by Committee of Planning Commission in Certain Cities {#sec-11-52-32 omnilex-key=us-al-statutes--title-11--11-52-32}
THIS SECTION WAS AMENDED BY ACT 2012-297 IN THE 2012 REGULAR SESSION, EFFECTIVE OCTOBER 1, 2012. TO SEE THE AMENDED VERSION, SEE THE VERSION LABELED PENDING.
(a) The planning commission shall approve or disapprove a plat within 30 days after the submission thereof to it; otherwise, such plat shall be deemed to have been approved, and a certificate to that effect shall be issued by the commission on demand; provided, however, that the applicant for the commission’s approval may waive this requirement and consent to an extension of such period. The ground of disapproval of any plat shall be stated upon the records of the commission. Any plat submitted to the commission shall contain the name and address of a person to whom notice of a hearing shall be sent, and no plat shall be acted on by the commission without affording a hearing thereon. Notice shall be sent to the said address by registered or certified mail of the time and place of such hearing not less than five days before the date fixed therefor. Similar notice shall be mailed to the owners of land immediately adjoining the platted land as their names appear upon the plats in the county tax assessor’s office and their addresses appear in the directory of the municipality or on the tax records of the municipality or county.
(b) Every plat approved by the commission shall, by virtue of such approval, be deemed to be an amendment of or an addition to or a detail of the municipal plan and a part thereof. Approval of a plat shall not be deemed to constitute or effect an acceptance by the public of any street or other open space shown upon the plat.
(c) The planning commission may, from time to time, recommend to the council amendments of the zoning ordinance or map or additions thereto to conform to the commission’s recommendations for the zoning regulation of the territory comprised within approved subdivisions. The commission shall have the power to agree with the application upon use, height, area, or bulk requirements or restrictions governing buildings and premises within the subdivision, provided such requirements or restrictions do not authorize the violation of the then effective zoning ordinance of the municipality. Such requirements or restrictions shall be stated upon the plat prior to the approval and recording thereof and shall have the same force of law and be enforceable in the same manner and with the same sanctions and penalties and subject to the same power of amendment or repeal as though set out as a part of the zoning ordinance or map of the municipality.
(d) The municipal planning commission of any Class 1 city may elect no fewer than three and no more than five persons who are members of such commission to serve while members thereof and at the pleasure of such commission as a committee to approve or disapprove in the name of such municipal planning commission any plat presented to such commission. Should any committee member so elected by the commission be unable for any reason to serve at any time as a member of said committee or should a vacancy occur at any time on the committee, the chairman of the commission shall appoint another member thereof to serve as a member of the committee until such time as the replaced member of the committee shall resume his duties or until the commission shall fill said vacancy by electing another of its members to serve on the committee. Such committee shall be governed by all the provisions of this article applicable to municipal planning commissions in regard to the approval or disapproval of any such plat and to all regulations adopted by such planning commission in regard thereto not inconsistent with the provisions of this article. Any plat submitted to such committee shall be considered as if submitted to the commission, and any approval or disapproval of any such plat by such committee shall be as if the same were approved or disapproved by the commission; provided, however, that any party aggrieved by any decision of such committee may within 15 days thereafter appeal therefrom to the full planning commission of such municipality by filing with such commission a written notice of appeal specifying the decision from which the appeal is taken. In the case of such appeal, such committee shall cause a transcript of all papers and documents filed with the committee in connection with the matter involved in the appeal to be certified to the commission to which the appeal is taken and the commission shall, within 45 days from the taking of such appeal, in accordance with such reasonable regulations as it may from time to time adopt, make such investigation as it deems proper and either affirm the decision of such committee or render such decision as in the judgment of such municipal planning commission should have been rendered by such committee.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §799; Acts 1957, No. 477, p. 659; Acts 1959, No. 458, p. 1150; Acts 1988, 1st Ex. Sess., No. 88-923, p. 524, §1.)*
##### **§ 11-52-33** Remedies and Penalty for Transfer, Sale, Etc., of Lands in Subdivision Prior to Approval of Plat {#sec-11-52-33 omnilex-key=us-al-statutes--title-11--11-52-33}
(a) Where the regulation of a subdivision development is the responsibility of the municipal planning commission, if the owner or agent of the owner of any land located within a subdivision conveys, transfers, or sells any land by reference to or exhibition of or by other use of a plat of a subdivision before the plat has been approved by the appropriate commission, department, or agency of any municipality requiring such approval and recorded or filed in the office of the appropriate county probate office, the owner or agent shall forfeit and pay a penalty of one hundred dollars ($100) for each lot or parcel so transferred and the description of the lot or parcel by metes and bounds in the instrument of transfer or other document used in the process of selling or transferring shall not exempt the transaction from the penalties or from the remedies provided in this section.
(b) The municipality may enjoin the conveyance, transfer, or sale by a civil action for injunction brought in any court of competent jurisdiction or may recover the same penalty provided in this section by a civil action in any court of competent jurisdiction.
(c) Where the county commission is responsible for regulation of subdivision development within the territorial jurisdiction of a municipal planning commission, enforcement of the subdivision regulations of the county shall be as provided in Chapter 24, and any penalties assessed against a developer for failure to comply with the subdivision regulations of the county shall be as provided therein.
(d) Nothing in this section shall impair, impede, or prohibit any person or entity from entering into any otherwise valid and enforceable contract for the purchase or sale of any lot within any proposed subdivision prior to its approval.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §800; Act 2012-297, p. 637, §1; Act 2014-332, p. 1226, §1.)*
##### **§ 11-52-33.1** Applicability and Regulatory Authority {#sec-11-52-33.1 omnilex-key=us-al-statutes--title-11--11-52-33.1}
(a) Sections 11-52-1, 11-52-30, 11-52-31, 11-52-32, and 11-52-33 shall not affect any application for development or any subdivision filed prior to October 1, 2012.
(b) Additionally, in the event the municipal planning commission lawfully assumes the authority to exercise control over the development of subdivisions in an area where the county commission has previously exercised regulation of subdivision development, the municipal planning commission’s regulatory authority shall not apply to a subdivision development which is already being regulated and enforced by the county commission pursuant to an application for plat approval submitted to the county commission by the developer prior to the date on which the municipal planning commission lawfully assumed responsibility for the development of subdivisions pursuant to this chapter.
(c) Nothing contained in Sections 11-52-1, 11-52-30, 11-52-31, 11-52-32, and 11-52-33 requires a municipality to assume responsibility for roads or infrastructure in subdivisions approved by the city engineer outside the municipal corporate limits or alters, amends, or supersedes the requirements relating to responsibility for road and bridge maintenance pursuant to Section 11-49-80.
(d) Nothing contained in Sections 11-52-1, 11-52-30, 11-52-31, 11-52-32, and 11-52-33 shall be construed to effect or limit the authority conferred by Sections 37-4-130 and 37-4-131.
*(Act 2012-297, p. 637, §§2, 3.)*
##### **§ 11-52-34** Municipality Not to Improve, Grade, Etc., Streets in Territory for Which Major Street Plan Adopted by Planning Commission until Street Accepted, Etc {#sec-11-52-34 omnilex-key=us-al-statutes--title-11--11-52-34}
The municipality shall not accept, lay out, open, improve, grade, pave, curb, or light any street or lay or authorize water mains or sewers or connection to be laid in any street within any portion of territory for which the planning commission shall have adopted a major street plan unless such street shall have been accepted or opened as or shall otherwise have received the legal status of a public street prior to the adoption of such plan or unless such street corresponds with a street shown on the official master plan or with a street on a subdivision plat approved by the planning commission or with a street on a street plat made by and adopted by the commission.
The council may, however, accept any street not shown on or not corresponding with a street on the official master plan or on an approved subdivision plat or an approved street plat; provided, that the ordinance or other measure accepting such street shall be first submitted to the municipal planning commission for its approval and, if approved by the commission, shall be enacted or passed by not less than a majority of the entire membership of the council or, if disapproved by the commission, shall be enacted or passed by not less than two thirds of the entire membership of the council. A street approved by the planning commission upon submission by the council or a street accepted by a two-thirds vote of the council after disapproval by the planning commission shall thereupon have the status of an approved street as fully as though it had been originally shown on the official master plan or on a subdivision plat approved by the commission or had been originally platted by the commission.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §801.)*
##### **§ 11-52-35** Buildings Not to Be Erected or Building Permits Issued in Territory for Which Major Street Plan Adopted until Street Providing Access to Proposed Building Accepted, Etc {#sec-11-52-35 omnilex-key=us-al-statutes--title-11--11-52-35}
From and after the time when a planning commission shall have adopted a major street plan of the territory within its subdivision jurisdiction or part thereof, no building shall be erected on any lot within such territory or part nor shall a building permit be issued therefor unless the street giving access to the lot upon which such building is proposed to be placed shall have been accepted or opened as or shall otherwise have received the legal status of a public street prior to that time or unless such street corresponds with a street shown on the official master plan or with a street on a subdivision plat approved by the planning commission or with a street on a street plat made by and adopted by the commission or with a street accepted by council after submission to the planning commission by the favorable vote required in Section 11-52-34.
Any building erected in violation of this section shall be deemed an unlawful structure, and the building inspector or other appropriate official may cause it to be vacated and have it removed.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §802.)*
##### **§ 11-52-36** Jurisdiction of Planning Commission as to Subdivision Plats in Territory Controlled Under Section 11-52-31 Exclusive; Status of Other Existing Platting or Subdivision Statutes {#sec-11-52-36 omnilex-key=us-al-statutes--title-11--11-52-36}
*[Repealed]*
Repealed by Act 2012-297, §4, effective October 1, 2012.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §803.)*
#### **Article 3** Reservation of Lands in Subdivisions for Future Acquisition for Public Streets
##### **§ 11-52-50** Authorized; Adoption, Approval, Etc., of Plat Therefor; Agreements Between Planning Commission and Landowners as to Releases of Claims for Damages or Compensation for Reservations; Abandonment of Reservations {#sec-11-52-50 omnilex-key=us-al-statutes--title-11--11-52-50}
Any municipal planning commission is empowered, after it shall have adopted a major street plan of the territory within its subdivision jurisdiction or of any major section or district thereof, to make or cause to be made, from time to time, surveys for the exact location of the lines of a street or streets in any portion of such territory and to make a plat of the area or district thus surveyed, showing the land which it recommends be reserved for future acquisition for public streets.
The commission, before adopting any such plat, shall hold a public hearing thereon, notice of the time and place of which, with the general description of the district or area covered by the plat, shall be given not less than 10 days previous to the time fixed therefor by one publication in a newspaper of general circulation in the municipality if the district or area is within the municipality or of general circulation in the county if the district or area is outside of the municipality.
After such a hearing the commission may transmit the plat, as originally made or modified as may be determined by the commission, to the council, together with the commission’s estimate of the time or times within which the lands shown on the plat as street locations should be acquired by the municipality. Thereupon by resolution the council may approve and adopt or may reject such plat or may modify it with the approval of the planning commission or, in the event of the planning commission’s disapproval, the council may, by a favorable vote of not less than two thirds of its entire membership, modify such plat and adopt the modified plat. In the resolution of adoption of a plat the council shall fix the period of time for which the street locations shown upon the plat shall be deemed reserved for future taking or acquisitions for public use. Upon such adoption the clerk of the council shall transmit one attested copy of the plat to the probate judge of each county in which the platted land is located and retain one copy for the purpose of public examination and hearings of claims for compensation.
Such approval and adoption of a plat shall not, however, be deemed the opening or establishment of any street nor the taking of any land for street purposes nor for public use nor as a public improvement, but solely as a reservation of the street locations shown thereon for the period specified in the council resolution for future taking or acquisition for public use.
The commission may, at any time, negotiate for or secure from the owner or owners of any such lands releases of claims for damages or compensation for such reservations or agreements indemnifying the municipality from such claims by others, which releases or agreements shall be binding upon the owner or owners executing the same and their successors in title. At any time after the filing of a plat with the probate judge and during the period specified for the reservation, the planning commission and the owner of any land containing a reserved street location may agree upon a modification of the location of the lines of the proposed street, such agreement to include a release by said owner of any claim for compensation or damages by reason of such modification, and thereupon the commission may make a plat corresponding to the said modification and transmit same to the council and, if such modified plat shall be approved by the council, the clerk of council shall transmit an attested copy thereof to the said probate judge, and said modified plat shall take the place of the original plat.
At any time the council may, by resolution, abandon any reservation and shall certify any such abandonment to the said probate judge.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §804.)*
##### **§ 11-52-51** Appointment of Board of Appraisers, Etc.; Notice of and Conduct of Hearing Upon Claims for Compensation for Reservations; Establishment of Amount of Compensation by Board of Appraisers; Liability of Municipality to Property Owners for Expenses Upon Abandonment of Reservation {#sec-11-52-51 omnilex-key=us-al-statutes--title-11--11-52-51}
In the resolution of adoption of a plat the council shall appoint a board of three appraisers and shall fix the time and place of meetings for hearings by said board upon the amounts of compensation to be paid for such reservations. Thereupon the clerk of the council shall publish in at least two newspapers of general circulation in the municipality once a week for four consecutive weeks a notice which shall contain a general description of the land thus reserved as shown on the plat, the provisions of the resolutions of the council, including the period of time for which such reservations are made, the time within which claims for compensation may be filed, which shall be not less than three months nor more than six months from the date of the notice, and the time and place of hearings by the board of appraisers. The first hearing shall not be set earlier than 30 days after the date of the first of such publications. Such notice shall also be posted in at least three public places in the neighborhood of or along the line of the location of the reservation.
The board of appraisers shall fix the amounts of compensation to be paid, respectively, to the owners of the lands reserved for the period of time as shown on the plat and in the resolution adopted by council. Whenever the clerk of the council receives, within the period fixed for the same, any claim for such compensation, he shall transmit it to the board of appraisers. At the time and place fixed for such hearings the board of appraisers shall hear and consider all claims presented to it in writing or in person, including all evidence which may be presented by the claimants or other persons. The board of appraisers shall have the right on its own initiative to investigate and ascertain data or evidence relevant to the question of such compensation.
In case of the abandonment of a reservation prior to the time fixed for payment of compensation, the municipality shall be liable to the owner of the land included within the abandoned reservation for the expenses, if any, incurred by such owner by reason of such reservation.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §805.)*
##### **§ 11-52-52** Filing of Tentative Report of Board of Appraisers; Notice of Filing of Report and of Period for Filing Objections Thereto; Meeting of Board of Appraisers as to Objections and Transmittal of Report to Council; Approval or Disapproval of Report by Council; Payment of Compensation to Property Owners Generally; Effect of Failure of Council to Approve Report or Provide for Payment of Compensation Within 90 Days {#sec-11-52-52 omnilex-key=us-al-statutes--title-11--11-52-52}
The board of appraisers shall, within 90 days after the time fixed for the filing of claims, file its tentative report with the clerk of the council, setting forth its findings as to the amounts of compensation to be paid the respective owners of the lands included within the lines of such reservations as located on the approved plat. Thereupon the clerk of the council shall publish once a week for two consecutive weeks in at least two newspapers of general circulation in the municipality the fact of the filing of the report of the appraisers and specify a period of 30 days from and after the date of the first such publication within which objections to the report may be filed with the clerk of the council. If objections are filed within said period, then the clerk of the council shall cause the board of appraisers to hold a meeting at which said objections shall be transmitted to the board, and the board may modify its report. The report in its original form or, if modified, in its modified form shall be transmitted to the council by its clerk. Before passing on the report, the council may return it to the board of appraisers for reconsideration, and the board may, upon further consideration, transmit its former or a modified report to the council. The council may approve or disapprove the report.
If the report is approved by the council, the council shall provide for the payment of amounts of compensation set forth in the report within 90 days after the filing of the report with council. In the case of those property owners who file claims, payments shall be made through the clerk of the council, who shall notify the claimants at the addresses given upon the claims filed with him. Payments to all other persons shall be made through the clerk of the circuit court of the county in which the reserved location is situated by the payment to said clerk of the amounts awarded to such persons, notice of distribution to such persons to be given and made as may be provided by a rule or order of said court. Payments made as aforesaid to the clerk of the council or clerk of said court within said 90 days shall be deemed compliance with the above requirements for payment within 90 days.
If the council disapproves the report or fails to provide for such payment within said 90 days, such disapproval or failure shall be deemed a dismissal of the proceedings and a cancellation of the plat and an abandonment of the reservations of the street locations as shown on the plat, with the same liability of the municipality for expenses as provided in Section 11-52-51 in the case of abandonment by resolution, and thereupon the clerk of the council shall cause to be transmitted to the probate judge of the county an attested statement of such abandonment.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §806.)*
##### **§ 11-52-53** Appeals from Compensation Awards {#sec-11-52-53 omnilex-key=us-al-statutes--title-11--11-52-53}
Within 20 days after the approval of any such report by the council, any person dissatisfied with the award of compensation therein contained may file with the clerk of the council notice of appeal to the court of the county in which the appellant’s land is located having jurisdiction of actions by municipalities to assess compensation for property taken or appropriated for public use for streets. Thereupon, and within 10 days of such notice, the clerk of the council shall file with the clerk of said court the report of the board of appraisers approved by the council, together with certified copies of the resolution of the council and of the notice of appeal. Within five days thereafter the appellant shall give and file with the clerk of said court an appeal bond, running to the municipality, for such amount as may be fixed by the court, to secure the municipality against the costs of the appeal in the event that appellant fails to obtain an award of compensation greater than that fixed in the said report. Thereupon said appeal shall be deemed to be filed and pending as a civil action brought by the municipality to appropriate and assess the compensation to be paid for the reservation of the land of the appellant as shown on the approved plat for the period fixed in the resolution of the council, and the procedure shall be in accordance with the procedure specified by law in the proceedings for the taking or appropriation of property for public use for streets, and the municipality shall pay the appellant the amount fixed in said civil action or, in the event it abandons the reservations, the amount of costs and expenses incurred by the appellant in said civil action.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §807.)*
##### **§ 11-52-54** Reservation Not to Impair Use of Reserved Lands by Owner, Etc., Thereof; Compensation Not to Be Paid or Recovered for Taking of or Injury to Buildings, Etc., Erected on Lands During Reservation Period {#sec-11-52-54 omnilex-key=us-al-statutes--title-11--11-52-54}
The reservation of a street location as provided in Section 11-52-50 shall not be deemed to prohibit or impair in any respect the use of the reserved land by the owner or occupant thereof for any lawful purpose, including the erection of buildings thereon, but no compensation other than the compensation awarded in the final report of said board of appraisers as approved by the council as provided in Section 11-52-52 or, in the case of an appeal, as awarded on such appeal as provided in Section 11-52-53 shall at any time be paid by the municipality or public to or recovered from the municipality or public by any person for the taking of or injury to any building or structure built or erected within the period fixed in the resolution of council upon any such reserved location.
No compensation or damages for any such reservation shall be paid or recovered except as provided in Sections 11-52-51 through 11-52-53.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §808.)*
#### **Article 4** Zoning
##### **§ 11-52-70** Establishment, Etc., of Business, Industrial and Residential Districts and Provision as to Type, Use, Etc., of Structures and Improvements to Be Erected Therein, Etc., Authorized Generally {#sec-11-52-70 omnilex-key=us-al-statutes--title-11--11-52-70}
Each municipal corporation in the State of Alabama may divide the territory within its corporate limits into business, industrial and residential zones or districts and may provide the kind, character and use of structures and improvements that may be erected or made within the several zones or districts established and may, from time to time, rearrange or alter the boundaries of such zones or districts and may also adopt such ordinances as necessary to carry into effect and make effective the provisions of this article.
*(Acts 1923, No. 443, p. 590; Code 1923, §1878; Code 1940, T. 37, §772.)*
##### **§ 11-52-71** Number, Shape, and Area of Districts; Uniformity of Regulations {#sec-11-52-71 omnilex-key=us-al-statutes--title-11--11-52-71}
For any or all of said purposes the local legislative body may divide the municipality into districts of such number, shape, and area as may be deemed best suited to carry out the purposes of this article, and within such districts it may regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of buildings, structures, or land. All such regulations shall be uniform for each class or kind of buildings throughout each district, but the regulations in any one district may differ from those in other districts.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §776.)*
##### **§ 11-52-72** Purposes of Zoning Regulations Generally; Considerations in Establishment Thereof Generally {#sec-11-52-72 omnilex-key=us-al-statutes--title-11--11-52-72}
Such regulations shall be made in accordance with a comprehensive plan and designed to lessen congestion in the streets, to secure safety from fire, panic and other dangers, to promote health and the general welfare, to provide adequate light and air, to prevent the overcrowding of land, to avoid undue concentration of population, and to facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements.
Such regulations shall be made with reasonable consideration, among other things, to the character of the district and its peculiar suitability for particular uses and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout such municipality.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §777.)*
##### **§ 11-52-73** Regulation and Restriction of Height, Etc., of Buildings, Etc., Sizes of Lots, Density of Population, Etc., Authorized {#sec-11-52-73 omnilex-key=us-al-statutes--title-11--11-52-73}
For the purpose of promoting the health, safety, morals, or general welfare of the community, the legislative body of incorporated cities and towns is hereby empowered to regulate and restrict the height, number of stories and size of buildings and other structures, the percentage of lot that may be occupied, the size of yards, courts and other open spaces, the density of population and the location and use of buildings, structures, and land for trade, industry, residences, or other purposes.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §774.)*
##### **§ 11-52-75** Regulation as to Housing of Different Classes of Inhabitants in Residential Districts {#sec-11-52-75 omnilex-key=us-al-statutes--title-11--11-52-75}
For the promotion of the public peace, order, safety, or general welfare, such municipal corporations may, within residential districts established pursuant to this article, further regulate as to the housing or residence therein of the different classes of inhabitants, but such regulations are not hereby authorized as will discriminate in favor of or against any class of inhabitants.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §775.)*
##### **§ 11-52-75.1** Regulation as to Housing of Mentally Retarded or Mentally Ill Persons in Multi-Family Zone {#sec-11-52-75.1 omnilex-key=us-al-statutes--title-11--11-52-75.1}
(a) It is the express intent of the Legislature to abolish and prohibit any zoning law, ordinance, or regulation which prevents or prohibits mentally retarded or mentally ill persons from living in a natural residential environment zoned “multi-family.” Zoning ordinances shall not exclude a group home from a “multi-family” residential area solely because the persons residing in the group home are not blood related, and no such group home shall be located within 1,000 feet of another group home as measured between lot lines. The group home shall be required to meet all other zoning and licensing requirements of local and state governmental agencies.
(b) For the purpose of any zoning law, ordinance, or regulation in force in the State of Alabama and its political subdivisions, the classification of “multi-family” shall not exclude a group home in which 10 or less unrelated persons who are mentally retarded or mentally ill may reside, and said home may, in addition thereto, include two additional persons who need not be related by blood or marriage to each other or to any of the mentally retarded or mentally ill persons living in the home.
(c) Notwithstanding the provisions of this section, nothing herein contained shall be construed to affect any such group home previously established and existing on the date of the enactment of this section.
*(Acts 1986, No. 86-430, p. 797.)*
##### **§ 11-52-76** Municipal Legislative Body to Provide for Manner of Establishment, Enforcement, Amendment, Etc., of Regulations, Restrictions and District Boundaries Generally; Adoption of Ordinances for Implementation of Article Generally {#sec-11-52-76 omnilex-key=us-al-statutes--title-11--11-52-76}
The legislative body of such municipality shall provide for the manner in which such regulations and restrictions and the boundaries of such districts shall be determined, established, and enforced and from time to time amended, supplemented, or changed and may adopt such ordinances as may be necessary to carry into effect and make effective the provisions of this article.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §778; Acts 1964, 1st Ex. Sess., No. 252, p. 348, §2.)*
##### **§ 11-52-77** Procedure for Adoption of Ordinances Authorized by Article {#sec-11-52-77 omnilex-key=us-al-statutes--title-11--11-52-77}
No ordinance shall be passed by any municipal corporation under the authority of this article unless and until the municipal governing body has complied with the procedures set forth in either subdivision (1) or subdivision (2) of this section.
(1) Prior to adoption, the proposed ordinance shall be published in full for one insertion and an additional insertion of a synopsis of the proposed ordinance, one week after the first insertion, which synopsis shall refer to the date and name of the newspaper in which the proposed ordinance was first published; both such insertions shall be at least 15 days in advance of its passage and in a newspaper of general circulation published within the municipality, or, if there is no such newspaper, then by posting the proposed ordinance in four conspicuous places within the municipality, together with a notice stating the time and place that the ordinance is to be considered by the municipal legislative authorities and stating further that at such time and place all persons who desire shall have an opportunity of being heard in opposition to or in favor of such ordinance.
(2) Prior to adoption, notice that an ordinance will be considered shall be published for three consecutive weeks in a newspaper of general circulation in the county. The notice shall include the following information:
a. A provision that an ordinance proposing to zone or rezone property will be considered by the municipal governing body pursuant to this section and that a copy of the proposed ordinance is available for public inspection at the city or town hall;
b. The location of the city or town hall;
c. A map showing the location of the property;
d. A general description of the property proposed to be zoned or rezoned including the common name by which the property is known; and
e. The time and place where all persons may be heard in opposition to or in favor of the ordinance.
The notice required by this subdivision shall be published in the legal section of the publication in standard form. In addition, the same notice shall also be published one time in the regular section of the newspaper which notice shall be in the form of at least a one-quarter page advertisement.
(3) No such ordinance shall become effective until after a public hearing in relation thereto, at which parties in interest and citizens shall have an opportunity to be heard.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §778; Acts 1964, 1st Ex. Sess., No. 252, p. 348, §2; Acts 1981, 3rd Ex. Sess., No. 81-1191, p. 524, §2; Acts 1995, No. 95-395, p. 806, §1.)*
##### **§ 11-52-78** Amendment, Repeal, Etc., of Regulations, Restrictions, District Boundaries and Ordinances {#sec-11-52-78 omnilex-key=us-al-statutes--title-11--11-52-78}
Such regulations, restrictions, and boundaries and ordinances passed under the authority of this article may from time to time be amended, supplemented, changed, modified, or repealed.
The provisions of Section 11-52-77 relative to public hearings and official notices shall apply equally to all changes and amendments.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §779.)*
##### **§ 11-52-79** Zoning Commission {#sec-11-52-79 omnilex-key=us-al-statutes--title-11--11-52-79}
In availing itself of the powers conferred by this article, the legislative body of any incorporated city or town may appoint a commission, to be known as the zoning commission, to recommend the boundaries of the various original districts and appropriate regulations to be enforced therein. Such commission shall make a preliminary report and hold a public hearing thereon before submitting its final report. In case of the appointment of such zoning commission, the municipal legislative body shall not hold its public hearings or take action until it has received the final report of such commission. Where a municipal planning commission already exists, it may be appointed as the “zoning commission.”
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §780.)*
##### **§ 11-52-80** Board of Adjustment - Creation; Composition; Qualifications, Appointment, Terms of Office and Removal of Members; Vacancies; Adoption of Rules of Procedure; Meetings; Record of Proceedings; Procedure for Appeals to Board from Decisions of Administrative Officials; Powers of Board as to Appeals {#sec-11-52-80 omnilex-key=us-al-statutes--title-11--11-52-80}
(a) In availing itself of the powers conferred by this article, the legislative body of any incorporated city or town may provide for the appointment of a board of adjustment and, in the regulations and restrictions adopted pursuant to the authority of this article, may provide that the said board of adjustment shall in appropriate cases and subject to appropriate conditions and safeguards make special exceptions to the terms of the ordinance in harmony with its general purposes and interests and in accordance with general or specific rules therein contained.
The board of adjustment shall consist of five members, each to be appointed for a term of three years, except that in the first instance one member shall be appointed for a term of three years, two for a term of two years, and two for a term of one year, and thereafter each member appointed shall serve for a term of three years or until his successor is duly appointed; provided, that in all cities having a population of not less than 175,000 nor more than 275,000 according to the most recent federal decennial census, all members of the board, including any alternate member provided for in this subsection, shall be bona fide residents and qualified electors of such cities; provided further, that the members of boards of adjustment created shall serve out their terms, and thereafter the members of such boards shall be appointed in the manner prescribed in this subsection for boards created after August 26, 1971. In addition to the five regular members provided for in this subsection two supernumerary members shall be appointed to serve on such board at the call of the chairman only in the absence of regular members and while so serving shall have and exercise the power and authority of regular members. Such supernumerary members shall be appointed to serve for three-year terms and shall be eligible for reappointment. Appointed members may be removable for cause by the appointing authority upon written charges and after public hearing. Vacancies shall be filled for the unexpired term of any member whose term becomes vacant.
(b) The board shall adopt rules in accordance with the provisions of any ordinance adopted pursuant to this article. Meetings of the board shall be held at the call of the chairman and at such other times as the board may determine; provided that, in cities having populations of not less than 175,000 nor more than 275,000, the board shall meet regularly once a month on a day determined by the board. Such chairman or, in his absence, the acting chairman may administer oaths and compel the attendance of witnesses. All meetings of the board shall be open to the public. The board shall keep minutes of its proceedings, showing the vote of each member upon each question or, if absent or failing to vote, indicating such fact, and shall keep records of its examinations and of other official actions, all of which shall immediately be filed in the office of the board and shall be a public record.
(c) Appeals to the board of adjustment may be taken by any person aggrieved or by any officer, department, board, or bureau of the municipality affected by any decision of the administrative officer. Such appeal shall be taken within a reasonable time, as provided by the rules of the board, by filing with the officer from whom the appeal is taken and with the board of adjustment a notice of appeal specifying the grounds thereof. The officer from whom the appeal is taken shall transmit forthwith to the board all papers constituting the record upon which the action appealed was taken. An appeal stays all proceedings in furtherance of the action appealed from unless the officer from whom the appeal is taken certifies to the board of adjustment after the notice of appeal shall have been filed with him that by reason of facts stated in the certificate a stay would in his opinion cause imminent peril to life or property. Such proceedings shall not be stayed otherwise than by a restraining order which may be granted by the board of adjustment or by a court of record on application on notice to the officer from whom the appeal is taken and on due cause shown. The board of adjustment shall fix a reasonable time for the hearing of the appeal, give public notice thereof, as well as due notice to the parties in interest, and decide the same within a reasonable time. Upon the hearing any party may appear in person or by agent or by attorney.
(d) The board of adjustment shall have the following powers:
(1) To hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement of this article or of any ordinance adopted pursuant thereto;
(2) To hear and decide special exceptions to the terms of the ordinance upon which such board is required to pass under such ordinance; and
(3) To authorize upon appeal in specific cases such variance from the terms of the ordinance as will not be contrary to the public interest, where, owing to special conditions, a literal enforcement of the provisions of the ordinance will result in unnecessary hardship and so that the spirit of the ordinance shall be observed and substantial justice done.
(e) In exercising the powers mentioned in subsection (d) of this section, such board may, in conformity with the provisions of this article, reverse or affirm, wholly or partly, or may modify the order, requirement, decision, or determination appealed from and may make such order, requirement, decision, or determination as ought to be made and, to that end shall have all the powers of the officer from whom the appeal is taken. The concurring vote of four members of the board shall be necessary to reverse any order, requirement, decision, or determination of any such administrative official or to decide in favor of the applicant on any matter upon which it is required to pass under any such ordinance or to effect any variation in such ordinance.
(f) The board of adjustment shall not be required to return the original papers acted upon by it, but it shall be sufficient to return certified or sworn copies thereof or of such portions thereof as may be called on by such writ. The return shall concisely set forth such other facts as may be pertinent and material to show the grounds of the decision appealed from and shall be verified.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §781; Acts 1963, No. 563, p. 1185; Acts 1965, No. 588, p. 1100; Acts 1971, No. 431, p. 1163.)*
##### **§ 11-52-80.1** Board of Adjustment - Definitions; Membership; Reversing, Affirming or Modifying Decisions, Etc.; Terms of Planning Commission Members Terminated; Duties, Powers, Etc {#sec-11-52-80.1 omnilex-key=us-al-statutes--title-11--11-52-80.1}
(a) When used in this section, the words municipality, municipalities, and mayor shall have the meanings as provided for in Section 11-52-1.
(b) The council of any Class 5 municipality with a city manager or mayor commission form of government may determine by ordinance that any board of adjustment of the municipality created pursuant to Section 11-52-80, shall consist of seven members: six regular members appointed by the council and representing as equally as possible the several districts, wards, or other areas of the municipality, to be determined by the council, and one regular member appointed by the mayor.
(c) In exercising the powers in subsection (d) of Section 11-52-80, the board may reverse, affirm, or may modify the order, requirement, decision, or determination appealed from and may enter the appropriate order, requirement, decision, or determination and, to that end, shall have all the powers of the officer from whom the appeal is taken. The concurring vote of five members of the board shall be necessary to reverse any order, requirement, decision, or determination of an administrative official or to decide in favor of the applicant on a matter upon which the board is required to pass under any ordinance or to effect any variation in the ordinance.
(d) Upon the adoption by the council of any Class 5 municipality with a city manager or mayor commission form of government of an ordinance adopting an alternate board of adjustment structure pursuant to this section, the terms of the incumbent members of any existing planning commission shall be terminated.
(e) Unless specified otherwise in this section, the duties, powers, responsibilities, and procedures of any planning commission appointed pursuant to this section shall be as provided for in this chapter.
*(Acts 1997, No. 97-673, p. 1297, §§1-5.)*
##### **§ 11-52-81** Board of Adjustment - Appeals to Circuit Court from Final Decision of Board of Adjustment {#sec-11-52-81 omnilex-key=us-al-statutes--title-11--11-52-81}
(a) Any party aggrieved by any final decision of a board of zoning adjustment may appeal the final decision of the board by filing an appeal in the circuit court in the county where the board convenes. The aggrieved party shall first file a written notice of appeal with the board within 15 days after the final decision, specifying the decision from which the appeal is taken. Thereafter, the aggrieved party must file the appeal with the proper circuit court within 45 days after the final decision of the board and shall also serve the board with the appeal at the office of the city clerk. After an appeal has been filed in the circuit court, the board shall submit to the circuit court a certified copy of the minutes of the meeting of the board regarding the appealed case along with copies of any documents submitted to the board during the meeting concerning the appealed case. Minutes and other documents shall be submitted within 45 days after the board is served with the appeal, unless extended by order of the court. The action in the circuit court shall be tried de novo. If the appellant requests a certified written transcript of the proceedings, he or she will be responsible for paying the cost of the transcript.
(b) The decision of the board shall remain in effect during the pendency of the appeal unless the circuit court grants a stay. In determining whether to grant a stay, the circuit court shall consider the appellant’s likelihood of success on the merits, whether there may be irreparable injury absent a stay, whether the stay will substantially injure any party to the proceeding, and whether a stay is in the public’s interest.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §783; Act 2025-331, §1.)*
##### **§ 11-52-82** Regulations, Ordinances, Etc., Imposing Higher Standards as to Height, Etc., of Buildings, Sizes of Lots, Etc., to Govern Where Conflict Between Regulations Authorized by Article and Other Statutes, Ordinances, or Regulations {#sec-11-52-82 omnilex-key=us-al-statutes--title-11--11-52-82}
Wherever the regulations made under authority of this article require a greater width or size of yards or courts or other open spaces or require a lower height of buildings or a lesser number of stories or require a greater percentage of lot to be left unoccupied or impose other higher standards than are required in any other statute or local ordinance or regulation, the provisions of the regulations made under authority of this article shall govern.
Wherever the provisions of any other statute or local ordinance or regulation require a greater width or size of yards, courts, or other open spaces or require a lower height of buildings or a lesser number of stories or require a greater percentage of lot to be left unoccupied or impose other higher standards than are required by the regulations made under authority of this article, the provisions of such statute or local ordinance or regulation shall govern.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §784.)*
##### **§ 11-52-83** Remedies for Construction, Repair, Use, Etc., of Buildings, Lands, Etc., in Violation of Article or Ordinance, Regulation, Etc., Adopted Under Authority of Article {#sec-11-52-83 omnilex-key=us-al-statutes--title-11--11-52-83}
In case any building or structure is erected, constructed, reconstructed, altered, repaired, converted, or maintained or any building, structure, or land is used in violation of this article or of any ordinance or other regulation made under authority conferred by this article, the proper local authorities of the municipality, in addition to other remedies, may institute any appropriate action or proceedings to prevent such unlawful erection, construction, reconstruction, alteration, repair, conversion, maintenance, or use, to restrain, correct, or abate such violation, to prevent the occupancy of such building, structure, or land or to prevent any illegal act, conduct, business, or use in or about such premises.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §782.)*
##### **§ 11-52-84** Article Not to Repeal, Modify, Etc., Existing Regulations, Restrictions, District Boundaries, or Ordinances {#sec-11-52-84 omnilex-key=us-al-statutes--title-11--11-52-84}
Nothing contained in this article shall be held to repeal, modify, or change in any way any regulations, restrictions, boundaries, or ordinances now existing or in force in any incorporated city or town in this state, and this article shall not be held to repeal Sections 11-52-70 and 11-52-74, but said sections shall remain in full force and effect.
*(Acts 1935, No. 533, p. 1121; Code 1940, T. 37, §785.)*
##### **§ 11-52-85** Pre-zoning of Territory Proposed for Annexation by Municipality {#sec-11-52-85 omnilex-key=us-al-statutes--title-11--11-52-85}
(a) A municipality which exercises its authority to zone territory within its corporate limits may pre-zone territory proposed for annexation into the corporate limits of the municipality prior to the effective date of the annexation by complying with this article. If all the requirements, including all notice and public hearing requirements, of this article are met, the zoning shall become effective upon the date the territory is annexed into the corporate limits, or upon the date the zoning process is completed, whichever is later.
(b) A municipality which exercises its authority to zone territory within its corporate limits shall pre-zone territory as provided in subsection (a) and issue a statement of zoning classification to an affected property owner if the individual property owner residing in the area to be annexed requests in writing that a zoning determination be made pursuant to this section prior to being annexed.
(c) Any pre-zoning established by a municipality pursuant to this section for territory proposed for annexation shall be null and void as to any portion of the territory that is not annexed into the corporate limits within 180 days of the initiation of annexation proceedings as provided by law.
(d) Nothing contained in this section shall allow a municipality to zone territory outside the corporate limits of the municipality that is not in the process of being annexed into the corporate limits of a municipality as provided by law.
(e) Section 6-5-127 shall be applicable to any property pre-zoned pursuant to this section.
*(Act 2009-629, p. 1926, §1.)*
### **Chapter 53** Minimum Housing Standards and Regulation of Unsafe Buildings
##### **§ 11-53-1** Legislative Declarations and Findings of Fact {#sec-11-53-1 omnilex-key=us-al-statutes--title-11--11-53-1}
It is hereby declared that insanitary and unsafe buildings, dwellings, and structures of all types and descriptions used for human habitation exist in the incorporated municipalities of this state and that such insanitary and unsafe conditions arise from obsolescence, poor repair, maintenance, and the overcrowding and use of such buildings, dwellings, and structures used for human habitation and occupancy; that such conditions are often compounded by inadequate provisions for light and air, insufficient protection against fire hazards, lack of living space and overcrowding and lack of heating, plumbing, and other facilities; that such insanitary and unsafe buildings, dwellings, and structures used for human habitation and occupancy constitute a danger to the health, safety, morals, welfare, well-being, and comfort of the inhabitants and general public in such incorporated municipalities; and, that such conditions cause an increase in and spread of disease and crime and are damaging and injurious to the inhabitants and general public of such incorporated municipalities.
*(Acts 1969, Ex. Sess., No. 217, p. 284, §1.)*
##### **§ 11-53-2** Enactment and Enforcement of Ordinances Regulating Use, Repair, Maintenance, Etc., of Buildings, Etc., Used for Human Habitation or Occupancy, Etc., Authorized {#sec-11-53-2 omnilex-key=us-al-statutes--title-11--11-53-2}
The incorporated municipalities of this state are specifically authorized, in order to protect the health, safety, morals, welfare, well-being and comfort of their inhabitants and the public at large to enact, adopt, and enforce ordinances regulating the use, control, repair, and maintenance of buildings, dwellings, and structures of all types and descriptions used for human habitation or occupancy and, the number of occupants and the mode and manner of occupancy for the purpose of insuring the healthful, safe, and sanitary environment of the occupants of such structures and to compel the owners or persons in charge of such buildings to alter, reconstruct, or modify them or any room, compartment, or part thereof for the purpose of insuring the healthful, safe, and sanitary environment of the occupants thereof and to prohibit the use and occupancy of such buildings, dwellings and structures of all types and descriptions used for human habitation or occupancy until such rules, regulations, and provisions imposed by ordinance shall have been complied with.
*(Acts 1969, Ex. Sess., No. 217, p. 284, §2.)*
##### **§ 11-53-3** Power to Enjoin or Abate Public Nuisances Not Impaired by Chapter {#sec-11-53-3 omnilex-key=us-al-statutes--title-11--11-53-3}
This chapter shall not be construed to impair or limit in any way the power of incorporated municipalities to enjoin or abate public nuisances within their corporate limits.
*(Acts 1969, Ex. Sess., No. 217, p. 284, §3.)*
##### **§ 11-53-4** Construction of Chapter {#sec-11-53-4 omnilex-key=us-al-statutes--title-11--11-53-4}
This chapter shall be liberally construed as being additional authority of incorporated municipalities to adopt ordinances relating to the establishment and enforcement of minimum standards for buildings, dwellings, and structures of all types and descriptions used for human habitation and occupancy and is cumulative to and in addition to existing legal authority.
*(Acts 1969, Ex. Sess., No. 217, p. 284, §4.)*
### **Chapter 53A** Demolition of Unsafe Structures
#### **Article 1** Demolition of Unsafe Structures in Class 5 or Class 6 or Class 8 Municipalities
##### **§ 11-53A-1** Removal of Unsafe Buildings or Structures {#sec-11-53a-1 omnilex-key=us-al-statutes--title-11--11-53A-1}
Pursuant to the police power granted in this article, any Class 5 or Class 6 or Class 8 municipality in the State of Alabama that elects to have this article apply to the municipality may, after notice as provided in this article, move or demolish buildings or structures, or parts of buildings or structures, party walls, or foundations when found by a municipal housing code abatement board and by the governing body of the city, to be unsafe to the extent of creating a public nuisance from any cause.
*(Acts 1992, No. 92-572, p. 1182, §1; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-53A-2** Creation of Housing Code Abatement Board; Notice to Remedy Unsafe Condition; Assessment of Costs of Removal {#sec-11-53a-2 omnilex-key=us-al-statutes--title-11--11-53A-2}
Any Class 5 or Class 6 or Class 8 municipality may have this article apply to the municipality by adopting an ordinance creating a municipal housing code abatement board and designating that each member serving on the municipal governing body shall appoint one member from his or her district to serve on the board for the term of the municipal appointing authority for two consecutive terms in office. The board shall perform the duties delegated by this article. Whenever the board finds that any building, structure, part of a building or structure, party wall, or foundation situated in its jurisdiction is unsafe to the extent that it creates a public nuisance from any cause, it shall give notice to the person or persons, firm, association, or corporation last assessed for state ad valorem taxes by personally serving a copy of the notice to remedy the unsafe or dangerous condition of the building or structure, or to demolish the building or structure, within a reasonable time set out in the notice to the person or legal entity to whom the property was assessed for ad valorem taxes, not more than 60 days following the notice. If the unsafe condition is not remedied within 60 days, the building or structure shall be demolished and removed by the city and the costs shall be assessed against the property. In the event that the personal service is returned “Not Found” after not less than two attempts, the notice may be given by registered or certified mail. The mailing of the notice by registered mail, properly addressed and postage prepaid to the address where the notice for ad valorem taxes for the last tax year was mailed, shall constitute notice as required by this article. Prior to the delivery or mailing, the notice or a copy of the notice shall also be posted at or within three feet of an entrance to the building or structure. If there is no entrance, the notice may be posted at any location upon the building or structure.
*(Acts 1992, No. 92-572, p. 1182, §2; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-53A-3** Administrative Hearing; Order for Removal of Unsafe Building or Structure; Appeal of Order for Removal {#sec-11-53a-3 omnilex-key=us-al-statutes--title-11--11-53A-3}
(a) Within the time specified in the notice, but not more than 60 days from the date notice is given, any person, firm, or corporation having an interest in the building or structure may file a written request for a hearing before the city governing body, together with any objection to the finding by the board that the building or structure is unsafe to the extent of creating a public nuisance. The filing of the request shall delay any action on the finding of the board until a determination is made. A hearing shall be held not less than 10 nor more than 60 days after the request. At the hearing, or in the event no hearing is timely requested, after the expiration of 60 days from the date the notice is given, the governing body shall determine whether or not the building or structure is unsafe to the extent that it creates a public nuisance. Notice of the meeting of the governing body, and that a determination will be made at the meeting, shall be published one time in a newspaper of general circulation in the city, not less than 10 days prior thereto. If a building or structure is determined to be unsafe to the extent that it creates a public nuisance, the governing body shall order the building or structure to be demolished and removed 30 days following the determination. The city may actually perform, or contract for the performance of the demolition and removal of the building structure, and may sell or otherwise dispose of salvaged materials resulting from the demolition and removal.
(b) Any person aggrieved by the decision of the governing body at the hearing may, within 30 days thereafter, appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount approved by the circuit clerk. Upon filing the notice and bond, the clerk shall serve a copy of the notice of appeal on the city clerk. The appeal shall be docketed in the court as a preferred case. The city clerk shall, upon receiving the notice, file with the circuit clerk a copy of the findings and determination of the governing body. A trial shall then be held without a jury upon the determination of the governing body.
*(Acts 1992, No. 92-572, p. 1182, §3.)*
##### **§ 11-53A-4** Adoption of Resolution Fixing Costs of Removal of Unsafe Building or Structure; Fixing of Costs to Constitute Special Assessment and Lien Against Property; Notice and Filing of Resolution {#sec-11-53a-4 omnilex-key=us-al-statutes--title-11--11-53A-4}
Upon demolition and removal of a building or structure, the board shall make a report to the governing body of the cost. The governing body shall adopt a resolution fixing the costs which it finds were reasonably incurred in the demolition and removal and assess the costs against the property. The proceeds of any monies received from the sale of salvaged materials from the building or structure shall be used or applied against the cost of the demolition and removal. Any person, firm, or corporation having an interest in the property may be heard at the meeting concerning any objection he or she may have to the fixing of the costs. The city clerk shall give not less than 15 days’ notice of the meeting at which the fixing of the costs are to be considered by publication in a newspaper of general circulation in the city. The fixing of costs by the governing body shall constitute a special assessment against the lot or lots, parcel, or parcels of land upon which the building or structure was located, and shall constitute a lien on the property for the amount of the assessment. The lien shall be superior to all other liens on the property except prior recorded mortgages and other prior recorded security interests and liens for taxes, and shall continue in force until paid. The city clerk shall mail a certified copy of the resolution by registered or certified mail to the person last assessed for ad valorem taxes, and a certified copy of the resolution shall be published in the manner and as prescribed for the publication of municipal ordinances. A certified copy of the resolution shall also be filed in the office of the judge of probate of the county in which the city is situated.
*(Acts 1992, No. 92-572, p. 1182, §4.)*
##### **§ 11-53A-5** Assessment of Costs Against Land Purchased by the State; Redemptioner or Purchaser to Take Property Subject to Assessment; Manner of Payment or Collection of Assessment {#sec-11-53a-5 omnilex-key=us-al-statutes--title-11--11-53A-5}
(a) The city shall have the power to assess the costs authorized herein against any lot, lots, parcel, or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes. A subsequent redemption of the property by any person authorized to redeem, or a subsequent sale of the property by the state, shall not operate to discharge, or in any manner affect the lien of the city for the assessment. Any redemptioner or purchaser shall take the property subject to the assessment.
(b) Payment of the assessment, or if delinquent, the collection of the assessment, shall be made in the same manner as is provided for the payment and delinquent collection of municipal improvement assessments pursuant to Article 1 (commencing with Section 11-48-1) of Chapter 2 of Title 11.
*(Acts 1992, No. 92-572, p. 1182, §§5, 6.)*
##### **§ 11-53A-6** Article Cumulative in Nature {#sec-11-53a-6 omnilex-key=us-al-statutes--title-11--11-53A-6}
This article shall be cumulative in its nature, and in addition to any and all power and authority which any such city may have under any other law.
*(Acts 1992, No. 92-572, p. 1182, §7.)*
#### **Article 2** Demolition of Unsafe Structures in Certain Class 4 Municipalities
##### **§ 11-53A-20** Applicability {#sec-11-53a-20 omnilex-key=us-al-statutes--title-11--11-53A-20}
This article shall apply only to a Class 4 municipality which has adopted the form of government provided in Chapter 43B of Title 11.
*(Acts 1993, No. 93-307, p. 456, §1.)*
##### **§ 11-53A-21** Authority of Cities to Demolish Unsafe Buildings {#sec-11-53a-21 omnilex-key=us-al-statutes--title-11--11-53A-21}
The city shall have authority, after notice as provided herein, to move or demolish buildings and structures, or parts of buildings and structures, party walls, and foundations when any of the above are found by the governing body of the city to be unsafe to the extent of being a public nuisance from any cause.
*(Acts 1993, No. 93-307, p. 456, §2.)*
##### **§ 11-53A-22** Notice to Remedy Unsafe Condition or to Demolish Structure {#sec-11-53a-22 omnilex-key=us-al-statutes--title-11--11-53A-22}
(a) The term “appropriate city official” as used in this article shall mean any city employee designated by the mayor as the person to exercise the authority and perform the duties delegated by this article to the “appropriate city official.”
(b) Whenever the appropriate city official finds that a building, structure, part of a building or structure, party wall, or foundation situated in the city is unsafe to the extent that it is a public nuisance, the official shall give the person or persons, firm, association, or corporation last assessed for state taxes and all mortgagees of record written notice to remedy the unsafe or dangerous condition of the building or structure or to demolish the building or structure within the time set out in this article, or that the building or structure may be demolished by the city and the cost thereof assessed against the property. A copy of the notice shall be served by first-class mail or by personal service.
(c) Notice of the order, or a copy thereof, prior to the delivery or mailing of the order as required by this section shall also be posted at or within three feet of an entrance to the building or structure. If there is no entrance, the notice may be posted at any location upon the building or structure.
*(Acts 1993, No. 93-307, p. 456, §3.)*
##### **§ 11-53A-23** Notice to Require Owner to Abate Nuisance or to Request Hearing {#sec-11-53a-23 omnilex-key=us-al-statutes--title-11--11-53A-23}
(a) The notice shall require the owner to abate the nuisance within the time stated in the notice or to request a hearing before the administrative officer designated by the mayor or council to determine whether there has been a violation. The notice shall apprise the owner of the facts of the alleged nuisance and shall name the particular date, time, and place for the hearing, if requested. The notice shall contain the names of all owners and lienholders of the property, a legal description of the property, and the nature of the proceeding.
(b) The notice shall be sent to the person shown by the records of the county tax collector to have been the last person assessed for payment of ad valorem tax on the property where the nuisance is situated. It shall be the responsibility of the person to promptly advise the appropriate city official of any change of ownership or interest in the property. The appropriate city official shall cause a copy of each building nuisance notice to be recorded in the office of the judge of probate.
(c) The notice shall require the owner to complete abatement of the nuisance within 120 days from the date of the notice, provided the appropriate city official may stipulate additional time, but in no case more than a total of 150 days.
(d) The notice may also require the immediate vacation of a building or structure and prohibit its occupation until the required repairs and improvements have been completed, inspected, and approved by the appropriate city official. In these cases, the official shall post at each entrance to the building or structure a sign stating “THIS STRUCTURE IS UNSAFE. ITS USE OR OCCUPANCY HAS BEEN PROHIBITED BY THE CITY OF ________”, or words of similar import, and shall be signed and dated. The sign shall remain until the required repairs and improvements have been made or the structure has been demolished and removed. The sign shall not be removed without permission of the official whose name is affixed thereon. No person shall enter the structure except for the purpose of making the required repairs or demolishing the structure.
(e) A hearing before the administrative official may be requested within five days of the date of the notice of the appropriate city official. The appropriate city official shall notify the owner by personal service or by first-class mail of the determination of the administrative official. If the administrative official determines that a nuisance exists, the owner shall comply with the initial order to abate issued by the appropriate city official, with any modifications as may be made by the administrative official.
*(Acts 1993, No. 93-307, p. 456, §4.)*
##### **§ 11-53A-24** Failure to Comply with Notice to Abate {#sec-11-53a-24 omnilex-key=us-al-statutes--title-11--11-53A-24}
(a) If the owner fails, neglects, or refuses to comply with the notice to abate the nuisance, there shall be a public hearing before the city council. Notice of the hearing shall be given to the owner at least five days in advance by personal service or by first-class mail.
(b) After the public hearing, the city council may by resolution order the appropriate city official to proceed with the work specified in the notice or may order that the nuisance be demolished or removed or may find that no nuisance exists. If the owner appears at the public hearing, no further notice of the order of the city council shall be required. If the owner fails to appear, notice of the order of the city council shall be mailed to the person’s last known address and shall be published once in a newspaper of general circulation in the city. Upon the expiration of seven days from the date of the resolution, the appropriate city official shall proceed to carry out the decision of the council.
*(Acts 1993, No. 93-307, p. 456, §5.)*
##### **§ 11-53A-25** Fixing Costs of Demolition; City to Obtain Lien {#sec-11-53a-25 omnilex-key=us-al-statutes--title-11--11-53A-25}
Upon demolition of the building or structure, the appropriate city official shall make a report of the governing body of the costs thereof, and the governing body shall adopt a resolution fixing the costs which it finds were reasonably incurred in the demolition and assessing the same against the property. The proceeds received from the sale of salvaged materials from the building or structure shall be used or applied against the cost of demolition. Any person, firm, or corporation having an interest in the property may be heard at the meeting as to any objection he or she may have to the fixing of the cost or the amounts thereof. The city clerk shall give not less than five days’ notice of the meeting at which the fixing of the costs are to be considered, by first-class mail to the last known address of the owner. The fixing of the costs by the governing body shall constitute a special assessment against the lot or lots, or the parcel or parcels of land upon which the building or structure was located, and shall constitute a lien on the property for the amount of the assessment. The lien shall be superior to all other liens on the property except liens for taxes, and shall continue in force until paid. The city clerk shall mail a copy of the resolution to the person last assessing the property for taxes and all mortgagees of record, and a certified copy of the resolution shall also be filed in the office of the judge of probate of the county in which the city is situated. The city clerk shall forward a copy to the county tax collector. Upon the filing, the tax collector shall add the amount of the lien to the ad valorem tax bill on the property and shall collect the amount as if it were a tax, using all methods available for collecting ad valorem tax, and remit the amount to the city.
*(Acts 1993, No. 93-307, p. 456, §6.)*
##### **§ 11-53A-26** Authority to Assess Against Property Sold to State for Nonpayment of Taxes; Effect of Subsequent Redemption or Sale by State on Lien {#sec-11-53a-26 omnilex-key=us-al-statutes--title-11--11-53A-26}
The city shall have the power to assess the costs authorized by this article against any lot or lots or parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes. When an assessment has been made against a lot or lots or parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem, or sale thereof by the state, shall not operate to discharge, or in any manner affect the lien of the city for assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots or parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the assessment.
*(Acts 1993, No. 93-307, p. 456, §7.)*
### **Chapter 53B** Municipal Authority to Repair or Demolish Unsafe Structures
##### **§ 11-53B-1** Legislative Findings {#sec-11-53b-1 omnilex-key=us-al-statutes--title-11--11-53B-1}
The Legislature finds all of the following:
(1) It is estimated that within the municipalities of the state, there exist several thousand parcels of real property that due to poor design, obsolescence, or neglect, have become unsafe to the extent of becoming public nuisances. Much of this property is vacant or in a state of disrepair and is causing or may cause a blight or blighting influence on the city and the neighborhoods in which the property is located. Such property constitutes a threat to the health, safety, and welfare to the citizens of the state and is an impediment to economic development within the municipality. This threat can be minimized if an incorporated municipality is authorized to repair the affected structures and is able to recover the cost of the repairs. In addition, where the municipality has undertaken the demolition of the structures and has taken a lien on the real property for the cost of the demolition, there has not been an effective method for recovering this assessment. These obligations owed to municipalities have largely been under-performing assets that could be converted to cash, providing the municipalities with much needed revenues.
(2) It is the intent of this chapter to authorize a municipality of the state to proceed with the demolition or repair of a structure based on its own findings, and to set out a method for collecting the assessment liens so imposed.
*(Act 2002-522, p. 1355, §1.)*
##### **§ 11-53B-2** Demolition or Repair Upon Finding of Necessity and Notice Given {#sec-11-53b-2 omnilex-key=us-al-statutes--title-11--11-53B-2}
Upon a finding of necessity by the governing body of any incorporated municipality in the state, after giving notice as provided herein the municipality may demolish or repair a building or structure or parts of buildings and structures, party walls, and foundations which are found by the governing body of the municipality to be unsafe to the extent of being a public nuisance from any cause. The cost of any action taken by the municipality shall be assessed against the property as provided in this chapter.
*(Act 2002-522, p. 1355, §2.)*
##### **§ 11-53B-3** Notice from Appropriate City Official; Failure to Comply {#sec-11-53b-3 omnilex-key=us-al-statutes--title-11--11-53B-3}
(a) Whenever the appropriate city official, as defined herein, shall find that any building, structure, part of building or structure, party wall, or foundation situated in the city is unsafe to the extent that it is a public nuisance, the official shall give the person or persons, firm, association, or corporation who is the record owner, notice to remedy the unsafe condition of the building or structure by certified or registered mail to the owner’s last known address and to the owner at the address of the property. A copy of all notices, orders, and other communications required by this chapter to be given to the owner of the property, or to the owner of an interest in the property, or to the person last assessing the property for state taxes, also shall be given to all mortgagees of record by certified or registered mail to the address set forth in the mortgage, or if no address for the mortgagee is set forth in the mortgage, to the address determined to be the correct address by the person responsible for the notice or other communication. The term “appropriate city official,” as used in this chapter, shall mean any building official or deputy and any other municipal official or city employee designated by the mayor or other chief executive officer of the municipality as the person to exercise the authority and perform the duties delegated by this chapter to “appropriate city official.”
(b) The notice shall set forth in detail the basis for the appropriate city official’s finding and shall direct the owner to take either of the following actions:
(1) In the case where repair is required, accomplish the specified repairs or improvements within 45 days of the date of the notice or if the same cannot be repaired within that time to provide the appropriate city official with a work plan to accomplish the repairs, which plan shall be submitted within 45 days of the making of the notice and shall be subject to the city’s approval.
(2) In the case where demolition is required, demolish the structure within 45 days of the notice.
The notice shall also state that in the event the owner does not comply within the time specified therein, the repairs or demolition shall be accomplished by the municipality and the cost thereof assessed against the property.
(c) The mailing of the notice, properly addressed and postage prepaid, shall constitute notice as required herein. Notice of the order, or a copy thereof, shall, within three days of the date of mailing, also be posted at or within three feet of an entrance to the building or structure, provided that if there is no entrance the notice may be posted at any location upon the building or structure.
(d) If the owner of any property cited hereunder fails to comply with the notice prescribed, the municipality may take either of the following actions:
(1) In the case where repair is required, repair the building at the expense of the municipality and assess the expenses of the repair on the land on which the building stands or to which it is attached.
(2) In the case where demolition is required, demolish the building at the expense of the municipality and assess the expenses of the demolition on the land on which the building stands or to which it is attached. The term “assessment” as used in this chapter shall refer to the cost of repair or demolition as provided herein.
*(Act 2002-522, p. 1355, §3.)*
##### **§ 11-53B-4** Hearing; Appeal {#sec-11-53b-4 omnilex-key=us-al-statutes--title-11--11-53B-4}
Within 30 days from the date the notice is given, any person, firm, or corporation having an interest in the building or structure may file a written request for a hearing before the governing body of the city, together with that person’s objections to the finding by the city official that the building or structure is unsafe to the extent of becoming a public nuisance. The filing of the request shall hold in abeyance any action on the finding of the city official until determination thereon is made by the governing body.
Upon holding the hearing, which shall be held not less than five nor more than 30 days after the request, or in the event no hearing is timely requested, after the expiration of 30 days from the date the notice is given, the governing body of the municipality shall determine whether or not the building or structure is unsafe to the extent that it is a public nuisance.
In the event that it is determined by the governing body that the building or structure is unsafe to the extent that it is a public nuisance, the governing body shall order the building or structure to be repaired or demolished, as the case may be. The repairs or demolition may be accomplished by the municipality by contract for the repairs or demolition. The municipality shall have authority to sell or otherwise dispose of salvaged materials resulting from any demolition hereunder.
Any person aggrieved by the decision of the governing body at the hearing may, within 10 days thereafter, appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount to be approved by the circuit clerk. Upon filing of the notice of appeal and approval of the bond, the clerk of the court shall serve a copy of the notice of appeal on the clerk of the city and the appeal shall be docketed in the court, and shall be a preferred case therein.
The clerk of the city shall, upon receiving the notice, file with the clerk of the court a copy of the findings and determination of the governing body in proceedings and trials shall be held without jury upon the determination of the governing body that the building or structure is unsafe to the extent that it is a public nuisance.
*(Act 2002-522, p. 1355, §4.)*
##### **§ 11-53B-5** Fixing of Costs {#sec-11-53b-5 omnilex-key=us-al-statutes--title-11--11-53B-5}
Upon demolition or repair of the building or structure, the appropriate city official shall make a report to the governing body of the cost thereof, and the governing body shall adopt a resolution fixing the costs which it finds were reasonably incurred in the demolition or repair and assessing the same against the property; provided, however, the proceeds of any moneys received from the sale of salvaged materials from the building or structure shall be used or applied against the cost of the demolition; and provided further, that any person, firm, or corporation having an interest in the property may be heard at the meeting as to any objection he or she may have to the fixing of such costs or the amounts thereof. The clerk of the municipality shall give notice of the meeting at which the fixing of the costs is to be considered by first-class mail to all entities having an interest in the property whose address and interest is determined from the tax assessor’s records on the property or as otherwise known to the clerk. The fixing of the costs by the governing body shall constitute an assessment against the lot or lots, parcel or parcels of land upon which the building or structure was located, and as made and confirmed shall constitute a lien on the property for the amount of the assessment (“the final assessment”). The lien shall be superior to all other liens on the property except liens for taxes, and except for mortgages recorded prior to the creation of the lien for the assessment, and shall continue in force until paid. A certified copy of the resolution fixing the final assessment shall also be recorded in the office of the judge of probate of the county in which the municipality is situated.
*(Act 2002-522, p. 1355, §5.)*
##### **§ 11-53B-6** Assessment of Costs {#sec-11-53b-6 omnilex-key=us-al-statutes--title-11--11-53B-6}
The municipality shall have the power to assess the costs authorized herein against any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes, and where such an assessment is made against the lot or lots, parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem, or sale thereof by the state, shall not operate or discharge, or in any manner affect the lien of the city for the assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale by the state for the nonpayment of taxes, shall take the same subject to the assessment.
*(Act 2002-522, p. 1355, §6.)*
##### **§ 11-53B-7** Payment of Costs {#sec-11-53b-7 omnilex-key=us-al-statutes--title-11--11-53B-7}
The municipality, in ordering any repair or demolition the cost of which or any part thereof is to be assessed against any property in accordance with this chapter, may provide that the same shall be paid in cash within 30 days after the final assessment; provided, however, that if the assessed amount is greater than ten thousand dollars ($10,000), the property owner may, at his or her election, to be expressed by notifying the municipal official charged with the duty of collecting the assessments in writing within 30 days after the final assessment is determined, pay the final assessment in 10 equal annual installments, which shall bear interest at a rate not exceeding 12 percent per annum. Interest shall begin to accrue upon the expiration of 30 days from the date on which the final assessment is set by the governing body and the interest shall be due and payable at the time and place the assessment is due and payable.
Any person who elects to make installment payments may pay the outstanding balance of the final assessment together with all accrued interest thereon at any time during the installment payment schedule. The first installment shall be payable within 30 days after the final assessment is determined, and all installments thereof shall be payable at the office of the clerk, finance office, or treasurer of the city or town as may be prescribed. Upon full payment of the final assessments and accrued interest thereon, the municipality shall record a satisfaction of the lien in the office of the judge of probate of the county in which the municipality is located.
*(Act 2002-522, p. 1355, §7.)*
##### **§ 11-53B-8** Failure to Make Payment {#sec-11-53b-8 omnilex-key=us-al-statutes--title-11--11-53B-8}
If the property owner fails to pay the assessment lien within 30 days, or having elected to make installment payments, fails to make any installment payment when due, the whole assessment lien shall immediately become due and payable, and the officer designated by the municipality to collect the assessment lien shall proceed to sell the property against which the assessment lien is made to the highest bidder for cash, but in no event less than the amount of the lien plus interest through the date of default. Prior to the sale, notice shall be given by publication once a week for three consecutive weeks in a newspaper published in the municipality or of general circulation therein, setting forth the date and time of the sale and the purpose for which the same is made, together with a description of the property to be sold. If the officer shall fail to advertise and sell any property on which the payments are past due, any taxpayer of the issuing municipality shall have the right to apply for a writ of mandamus requiring the official to take such action to any court of competent jurisdiction, and the court shall, on proof, issue and enforce the writ.
*(Act 2002-522, p. 1355, §8.)*
##### **§ 11-53B-9** Sale of Property Upon Default {#sec-11-53b-9 omnilex-key=us-al-statutes--title-11--11-53B-9}
(a) Any property owner, notwithstanding his or her default, may pay the assessment lien with interest and all costs if tendered before a sale of the property.
(b) The cost of any notice and sale resulting from a default on paying an assessment shall constitute a charge against the property to be sold and shall be retained out of the proceeds of the sale.
(c) The officer making the sale shall execute a deed to the purchaser, which shall convey all the rights, title, and interest which the party against whose property the assessment was made had or held in the property at the date of making the assessment or on the date of making the sale. Any surplus arising from the sale shall be paid to the city or municipal treasurer to be kept as a separate fund by the treasurer for the owner upon the responsibility of his or her official bond. The municipality may, by its agents, purchase real estate sold as provided under this chapter and, in the event of the purchase, the deed for the same shall be made to the municipality.
(d) No mistake in the notice of sale in the description of the property or in the name of the owner shall vitiate the assessment or the lien and if for any reason, the sale made by the municipality is ineffectual to pass title, it shall operate as an assignment of the lien, and, upon the request of the purchaser, supplementary proceedings of the same general character as required in this chapter may be had to correct the errors in the proceedings for his or her benefit or the lien so assigned to him or her may be enforced by civil action.
*(Act 2002-522, p. 1355, §9.)*
##### **§ 11-53B-10** Redemption of Property {#sec-11-53b-10 omnilex-key=us-al-statutes--title-11--11-53B-10}
(a) Any real property heretofore or hereafter sold for the satisfaction of an assessment lien imposed thereon by the governing body of a municipality may be redeemed by the former owner, or his or her assigns, or other persons authorized to redeem property sold for taxes by the state, within two years from the date of the sale by depositing with the officer designated by the municipality to collect the assessments the amount of money for which the lands were sold, with interest thereon at the rate of 12 percent per annum from the date of the sale through the date of the payment.
(b) In addition to any other requirements set forth in this section, the proposed redemptioner must pay or tender the purchaser or his transferee all insurance premiums paid or owed by the purchaser with accrued interest on the payments computed from the date the premiums were paid at 12 percent per annum through the date of payment.
(c) In addition to any other requirements set forth in this section, the proposed redemptioner must pay or tender to the purchaser or his transferee the value of all permanent improvements made on the property determined in accordance with this section. As used herein “permanent improvements” shall include, but not be limited to, all repairs, improvements, and equipment attached to the property as fixtures. The proposed redemptioner shall make written demand upon the purchaser of a statement of the value of all permanent improvements made on the property since the assessment sale. In response to written demand made pursuant to this section, the purchaser shall within 10 days from the receipt of the demand, furnish the proposed redemptioner with the amount claimed as the value of the permanent improvements, and within 10 days after receipt of the response, the proposed redemptioner either shall accept the value so stated by the purchaser, or disagreeing therewith, shall appoint a referee to ascertain the value of the permanent improvements. The proposed redemptioner shall in writing (i) notify the purchaser of his or her disagreement as to the value; and (ii) inform the purchaser of the name of the referee appointed by him or her. Within 10 days after the receipt of the notice, the purchaser shall appoint a referee to ascertain the value of the permanent improvements and advise the proposed redemptioner of the name of the appointee. The two referees shall, within 10 days after the purchaser has appointed his or her referee, meet and confer upon the award to be made by them. If they cannot agree, the referees shall at once appoint an umpire, and the award by a majority of the body shall be made within 10 days after the appointment of the umpire and shall be final between the parties.
(d) If the proposed redemptioner fails or refuses to nominate a referee as provided in subsection (c), he or she shall pay the value put upon the improvements by the purchaser. If the purchaser refuses or fails to appoint a referee, as provided in subsection (c), the purchaser shall forfeit his or her claim to compensation for the improvements. The failure of the referees or either of them to act or to appoint an umpire shall not operate to impair or forfeit the right of either the proposed redemptioner or the purchaser in the premises. In the event of failure without fault of the parties to affect an award, the appropriate court shall proceed to ascertain the true value of the permanent improvements and enforce the redemption accordingly.
(e) In addition to all other payments provided hereunder, the proposed redemptioner shall also pay interest to the purchaser on the value of all permanent improvements computed from the date the improvements were made at the rate of 12 percent per annum through the date of the payment.
*(Act 2002-522, p. 1355, §10.)*
##### **§ 11-53B-11** Extension of Redemption {#sec-11-53b-11 omnilex-key=us-al-statutes--title-11--11-53B-11}
The fixed two-year period of redemption allowed by Section 11-53B-10 for the redemption of any property heretofore or hereafter sold for the satisfaction of any assessment lien may be extended to a date 60 days after the date of the certificate of warning to redeem provided for in Section 11-53B-12, but in no event for a longer period than six years from the date of such sale.
*(Act 2002-522, p. 1355, §11.)*
##### **§ 11-53B-12** Certificate of Warning to Redeem {#sec-11-53b-12 omnilex-key=us-al-statutes--title-11--11-53B-12}
At any time after an assessment sale deed has been recorded in the office of the judge of probate of the county in which the property therein described lies and after expiration of the fixed two-year period of redemption allowed by Section 11-53B-10, any person may apply to the judge of probate for the certificate of warning to redeem, which references the recorded volume and page number of the deed to be recorded in the real estate records, in substantially the following form: “I hereby certify that on or prior to the date of this certificate, I mailed a certified copy of the deed here recorded, together with notice that the same is here recorded, and a warning to redeem to each of the one or more persons other than the grantee in said deed, to whom the property therein described was last finally assessed for ad valorem taxation at the address of each such person as shown by said ad valorem tax assessment records. This ___ day of ____, 2___, Judge of Probate, ___ County, Alabama.”
*(Act 2002-522, p. 1355, §12.)*
##### **§ 11-53B-13** Application for Entry of Certificate {#sec-11-53b-13 omnilex-key=us-al-statutes--title-11--11-53B-13}
At the time of application for entry of the certificate of warning to redeem, the applicant shall deliver to the judge of probate three certified copies of the recorded deed and shall pay to the judge of probate a fee of one dollar ($1). Copies of the deed need not include any certificate of acknowledgment. The applicant shall also deliver to the judge of probate a certified copy of the ad valorem tax assessment records of the county containing the name of the person or persons other than the grantee in the deed to whom the property described in the deed was last finally assessed for ad valorem taxation, together with the address of each person as shown by the tax assessment records, or an affidavit that there is no one else. The judge of probate shall promptly mail to each person at such address one of the aforesaid certified copies of the deed, together with an attached warning to redeem in substantially the following form: “Take notice that there is recorded in my office in Deed Book ___ at page ___ a deed of which the attached is a correct copy. You are warned that unless you, or those claiming under you, take prompt steps to redeem from those claiming under the deed, all rights of redemption may be lost. This ___ day of ___, 2___, Judge of Probate, ____ County, Alabama.”
Promptly upon or after mailing the notice or notices and certified copy or copies of the deed, it shall be the duty of the judge of probate to record in the real estate records the signed and dated certificate of warning substantially as prescribed by Section 11-53B-12. At the expiration of 60 days after the date of the certificate all rights to redeem from the sale shown by the deed shall cease and desist.
*(Act 2002-522, p. 1355, §13.)*
##### **§ 11-53B-14** Redemption Effected {#sec-11-53b-14 omnilex-key=us-al-statutes--title-11--11-53B-14}
Redemption may be effected after expiration of the fixed two-year period of redemption allowed or provided by Section 11-53B-10 and before the extended period of redemption has expired in the same manner and at the same redemption price as is provided in Section 11-53B-10; provided, that if the judge of probate has made the certificate of warning to redeem as provided in Section 11-53B-12, said redemption price shall be increased by one dollar ($1).
*(Act 2002-522, p. 1355, §14.)*
##### **§ 11-53B-15** Emergency Action {#sec-11-53b-15 omnilex-key=us-al-statutes--title-11--11-53B-15}
Notwithstanding any other provisions of this chapter, a municipality shall have authority to enact, and may by ordinance authorize, the appropriate city official to initiate immediate repair or demolition of a building structure when, in the opinion of the official so designated, such emergency action is required due to imminent danger of structural collapse endangering adjoining property, the public right of way, or human life or health. The cost of the emergency action shall be fixed by the municipal governing body and shall be assessed as provided in the ordinance, or, if such ordinance does not provide a method of assessment, as provided by this chapter.
*(Act 2002-522, p. 1355, §15.)*
##### **§ 11-53B-16** Assessment Liens for Demolition or Renovation {#sec-11-53b-16 omnilex-key=us-al-statutes--title-11--11-53B-16}
This act shall also apply to all assessment liens for demolition or renovation of record as of July 1, 2002.
*(Act 2002-522, p. 1355, §16.)*
### **Chapter 54** Promotion of Industry, Trade, Commerce and Pollution Control
#### **Article 1** Acquisition and Development of Lands for Industrial Parks
##### **§ 11-54-1** Definitions {#sec-11-54-1 omnilex-key=us-al-statutes--title-11--11-54-1}
The following words and phrases, wherever used in this article, shall have the respective meanings ascribed to them in this section:
(1) MUNICIPALITY. An incorporated city or town in the State of Alabama.
(2) INDUSTRIAL PARK. Land:
a. Determined by the governing body of a municipality to be suitable for use by two or more industrial enterprises for industrial purposes, and
b. Acquired or proposed to be acquired by a municipality and held by it for the purpose of selling it to one or more persons for use for industrial purposes.
(3) PERSON. Any individual, firm, partnership, or corporation, including both public and private corporations, and any other entity, either public or private, that has the power to acquire title to land.
*(Acts 1969, No. 737, p. 1311, §1.)*
##### **§ 11-54-2** Authorized {#sec-11-54-2 omnilex-key=us-al-statutes--title-11--11-54-2}
Each municipality shall have the power to acquire and develop one or more parcels of land as the site or sites for an industrial park or industrial parks and shall have the power to expend money for such acquisition and development. The development of land as the site for an industrial park shall be deemed to include the provision of water, sewage, drainage, transportation, power, and communication facilities and other similar facilities which are incidental to use of the land as an industrial park, but shall not be deemed to include the provision of structures or buildings other than structures or buildings related to water, sewage, drainage, transportation, power, communication, or similar facilities.
*(Acts 1969, No. 737, p. 1311, §2.)*
##### **§ 11-54-3** Authorization and Procedure for Sale of Lands Comprising Industrial Parks {#sec-11-54-3 omnilex-key=us-al-statutes--title-11--11-54-3}
Each municipality shall have the power to sell to any person all or any part of any land held by it as the site of an industrial park; provided, however, that no such sale may be made for less than the total amounts expended by the municipality with respect to the property so sold or for less than the reasonable market value of the property so sold as such value shall be established by appraisals of at least two independent appraisers.
Prior to making any sale of any property comprising all or part of an industrial park, the municipality making such sale shall cause appraisals of the market value of the property to be so sold to be made by at least two independent appraisers and shall cause a copy of each such appraisal to be filed in the permanent records of the municipality. Each such appraisal shall be dated not earlier than 60 days prior to the consummation of any such sale. In any case where each appraisal obtained pursuant to the provisions of this section sets forth a different value, the average of the market value stated in the separate appraisals shall be deemed to constitute the reasonable market value of property for the purposes of this section.
*(Acts 1969, No. 737, p. 1311, §3.)*
##### **§ 11-54-4** Binding Option Agreements for Sale of Industrial Park Authorized {#sec-11-54-4 omnilex-key=us-al-statutes--title-11--11-54-4}
Each municipality in this state holding property as the site of an industrial park is hereby authorized to make and enter into binding option agreements for the sale of all or any portion of said industrial park, subject however, to the following conditions and limitations:
(1) No option shall be entered into for a period exceeding one year.
(2) Where an appraisal is required pursuant to Section 11-54-3, the option amount shall be for not less than the average of the market value stated in two independent appraisals dated not earlier than 60 days prior to consummation of the option agreement. Where the option agreement is for less than one year, said original option agreement may be extended by the municipality up to a maximum of one year without new appraisals. When the provisions on any constitutional amendment relieve or exempt the municipality from the provisions of Section 94 of the Constitution of 1901, no appraisal shall be necessary, provided the provisions of any such amendment are followed and the option is specifically made subject to the provisions of such amendment, and the option is for no longer than two years.
(3) Where the provisions of any constitutional amendment relieve or exempt any municipality from the provisions of Section 94 of the 1901 Constitution of Alabama, as amended, with respect to land acquired and held by said municipality as an industrial site, or industrial park, then the provisions of such constitutional amendment shall apply; provided however, that no municipality relieved or exempted from the provisions of said Section 94 shall sell any real property held as an industrial site or industrial park, for a price less than the actual purchase and development cost of such property unless:
a. A public meeting is held at which a price is approved by the governing body; provided further, that notice of such meeting has first been published, at least 14 days prior to holding such meetings, in a newspaper with the largest circulation in the county in which the property is located stating: (i) the acreage proposed to be sold, (ii) the section or sections or subdivisions of record in which the property is located, (iii) the price per acre at which sale is proposed to be made, and (iv) the place where a map of the property can be examined by the public; and
b. The price thus approved is no less than the price advertised as hereinabove stated.
(4) At least 10 percent of the total purchase price shall be paid by the optionee at the time of the option agreement, which said payment may be credited against the purchase price upon closing, but may not be returned to the optionee in the event the option agreement is not exercised.
*(Acts 1984, 1st Ex. Sess., No. 84-746, p. 112.)*
#### **Article 2** Acquisiton, Etc., of Projects for Promotion of Industry, Trade, and Pollution Control Generally
##### **§ 11-54-20** Definitions {#sec-11-54-20 omnilex-key=us-al-statutes--title-11--11-54-20}
Wherever used in this article, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings:
(1) MUNICIPALITY. Any incorporated city or town in the State of Alabama.
(2) PROJECT. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more thereof:
a. Any industry for the manufacturing, processing, or assembling of any agricultural or manufactured products;
b. Any commercial enterprise in storing, warehousing, distributing, or selling products of agriculture, mining, or industry;
c. Any commercial enterprise providing linen rental services (including laundry and cleaning services related or incidental thereto) primarily to industries and commercial enterprises described in either of the preceding paragraphs a. and b. and to institutions such as hospitals, nursing homes, other health care facilities, and educational and training institutions;
d. Any enterprise for research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or known processes or for the purpose of aiding in the development of facilities for the exploration of outer space or promoting the national defense; and
e. Pollution control facilities, which shall be suitable for use by any industry or enterprise or by any combination of two or more thereof, but not facilities designed for the sale or distribution to the public of electricity, gas, water, or telephone or other services commonly classified as public utilities.
(3) GOVERNING BODY. The board or body in which the legislative powers of the municipality are vested.
(4) MORTGAGE. A mortgage or a mortgage and deed of trust.
(5) POLLUTION CONTROL FACILITIES. Any land, building, structure, or equipment having to do with or the end purpose of which is the control, abatement, or prevention of water, air, noise, or general environmental pollution, including but not limited to, any air pollution control facility, noise abatement facility, water management facility, waste water collecting systems, waste water treatment works, or solid waste disposal facility.
(6) POLLUTION. The placing of any noxious or deleterious substances, including noise, in any air or water of or adjacent to the State of Alabama or affecting the physical, chemical, or biological properties of any air or water of or adjacent to the State of Alabama in a manner and to an extent which renders or is likely to render such air or water inimical or harmful to the public health, safety, or welfare or to animal, bird, or aquatic life or to the use of such air or water for domestic, industrial, agricultural, or recreational purposes.
*(Acts 1951, No. 756, p. 1307, §1; Acts 1964, 1st Ex. Sess., No. 163, p. 227, §2; Acts 1971, No. 1892, p. 3080, §2; Acts 1983, No. 83-429, p. 608.)*
##### **§ 11-54-21** Legislative Intent; Construction of Article Generally {#sec-11-54-21 omnilex-key=us-al-statutes--title-11--11-54-21}
(a) It is the intent of the Legislature by the passage of this article to authorize municipalities to acquire, own, and lease and, in connection with any such acquisition, to enlarge, improve, and expand projects for the purpose of promoting industry and trade and controlling, abating, or preventing pollution (including preventing pollution which may be caused by the location, development, or expansion of industry or commerce) by inducing manufacturing, industrial, commercial, and research enterprises to locate in this state or to expand and enlarge existing enterprises or to utilize pollution control facilities in order to control, abate, or prevent pollution from present or proposed operations or by any combination of two or more thereof promoting the use of agricultural products and natural resources of this state and promoting a sound and proper balance in this state between agriculture, commerce, and industry. It is intended that each project be self-liquidating. It is not intended hereby to authorize any municipality itself to operate any manufacturing, industrial, or commercial enterprise.
(b) This article shall be liberally construed in conformity with the said intent.
*(Acts 1951, No. 756, p. 1307, §2; Acts 1963, 2nd Ex. Sess., No. 122, p. 310, §2; Acts 1964, 1st Ex. Sess., No. 163, p. 227, §3; Acts 1971, No. 1892, p. 3080, §3.)*
##### **§ 11-54-22** Powers of Municipalities Generally as to Acquisition, Leasing, Etc., of Projects for Industry, Trade, and Pollution Control {#sec-11-54-22 omnilex-key=us-al-statutes--title-11--11-54-22}
In addition to any other powers which it may now have, each municipality shall have the following powers:
(1) To acquire and, in connection with such acquisition, to enlarge, improve, and expand, whether by construction, purchase, gift, or lease, one or more projects which shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than 15 miles outside of the corporate limits of the municipality;
(2) To lease to others any or all of its projects for such rentals and upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of this article; and
(3) To issue revenue bonds for the purpose of defraying the cost of acquisition by construction and purchase and, in connection with any such acquisition, to enlarge, improve, and expand or any thereof any project and to secure the payment of such bonds provided in this article.
No municipality shall have the power to operate any project as a business or in any manner except as lessor thereof.
*(Acts 1951, No. 756, p. 1307, §3; Acts 1963, 2nd Ex. Sess., No. 122, p. 310, §3.)*
##### **§ 11-54-23** Requirements as to Leasing of Projects {#sec-11-54-23 omnilex-key=us-al-statutes--title-11--11-54-23}
(a) Prior to the leasing of any project, the governing body must determine and find the following:
(1) The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance such project;
(2) The amount necessary to be paid each year into any reserve funds which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and,
(3) The estimated cost of maintaining the project in good repair and keeping it properly insured, unless the terms under which the project is leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto.
(b) The determinations and findings of the governing body required to be made by subsection (a) of this section shall be set forth in the proceedings under which the proposed bonds are to be issued; and, prior to the issuance of such bonds, the municipality shall lease the project to a lessee under an agreement conditioned upon completion of the project and providing for payment to the municipality of such rentals as upon the basis of such determinations and findings will be sufficient:
(1) To pay the principal of and interest on the bonds issued to finance the project;
(2) To build up and maintain any reserves deemed by the governing body to be advisable in connection therewith; and
(3) To pay the cost of maintaining the project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.
*(Acts 1951, No. 756, p. 1307, §6.)*
##### **§ 11-54-24** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc {#sec-11-54-24 omnilex-key=us-al-statutes--title-11--11-54-24}
All bonds issued by a municipality under authority of this article shall be limited obligations of the municipality, the principal of and interest on which shall be payable solely out of the revenues derived from the leasing of the project to finance which the bonds are issued. Bonds and interest coupons issued under authority of this article shall never constitute an indebtedness of the municipality within the meaning of any state constitutional provision or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the municipality or a charge against its general credit or taxing powers, and such fact shall be plainly stated in the face of each such bond.
Such bonds may be executed and delivered at any time and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times, not exceeding 30 years from their date, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent with this article as shall be provided in the proceedings of the governing body whereunder the bonds shall be authorized to be issued.
The bonds issued under this article shall be subject to the general provisions of law presently existing or that may hereafter be enacted respecting the execution and delivery of the bonds of a municipality and respecting the retaining of options of redemption in proceedings authorizing the issuance of municipal securities. Any bonds issued under the authority of this article may be sold at public or private sale in such manner and from time to time as may be determined by the governing body to be most advantageous, and the municipality may pay all expenses, premiums, and commissions which the governing body may deem necessary or advantageous in connection with the authorization, sale, and issuance thereof.
All bonds issued under the authority of this article and all interest coupons applicable thereto shall be construed to be negotiable instruments despite the fact that they are payable solely from a specified source.
*(Acts 1951, No. 756, p. 1307, §4.)*
##### **§ 11-54-25** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-54-25 omnilex-key=us-al-statutes--title-11--11-54-25}
The principal of and interest on any bonds issued under the authority of this article shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such project.
The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the revenues from such project and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage as the governing body shall deem advisable and as shall not be in conflict with the provisions of this article; provided, however, that in making any such agreements or provisions a municipality shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers.
The proceedings authorizing any bonds under this article and any mortgage securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by civil action and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
*(Acts 1951, No. 756, p. 1307, §5.)*
##### **§ 11-54-26** Bonds - Disposition of Proceeds from Sale {#sec-11-54-26 omnilex-key=us-al-statutes--title-11--11-54-26}
(a) The proceeds from the sale of any bonds issued under authority of this article shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; provided further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds.
(b) The cost of acquiring any project, which shall be paid from the proceeds derived from the sale of bonds, shall be deemed to include the following:
(1) The actual cost of the construction of any part of a project which may be constructed, including architect’s and engineer’s fees;
(2) The purchase price of any part of a project that may be acquired by purchase;
(3) All expenses in connection with the authorization, sale, and issuance of the bonds to finance such acquisition; and
(4) The interest on such bonds for a reasonable time prior to construction, during construction, and for a period not exceeding six months after completion of construction.
*(Acts 1951, No. 756, p. 1307, §8.)*
##### **§ 11-54-27** Refunding Bonds {#sec-11-54-27 omnilex-key=us-al-statutes--title-11--11-54-27}
Any bonds issued under this article and at any time outstanding may at any time and from time to time be refunded by a municipality by the issuance of its refunding bonds in such amount as the governing body may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums and commissions necessary to be paid in connection therewith.
Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption.
Any refunding bonds issued under the authority of this article shall be payable solely from the revenues out of which the bonds to be refunded thereby were payable and shall be subject to the provisions contained in Section 11-54-24 and may be secured in accordance with the provisions of Section 11-54-25.
*(Acts 1951, No. 756, p. 1307, §7.)*
##### **§ 11-54-28** Notice To, Consent or Approval of Governmental Body, Etc., Not to Be Required for Issuance or Sale of Bonds or Execution of Mortgages {#sec-11-54-28 omnilex-key=us-al-statutes--title-11--11-54-28}
No notice to or consent or approval by any governmental body or public officer shall be required as a prerequisite to the sale or issuance of any bonds or the making of a mortgage under the authority of this article.
*(Acts 1951, No. 756, p. 1307, §13.)*
##### **§ 11-54-29** Investment in Bonds by Savings Banks and Insurance Companies {#sec-11-54-29 omnilex-key=us-al-statutes--title-11--11-54-29}
Bonds issued under the provisions of this article shall be legal investments for savings banks and insurance companies organized under the laws of this state.
*(Acts 1951, No. 756, p. 1307, §10.)*
##### **§ 11-54-30** Municipalities Not to Contribute to Costs of Acquisition of Projects or Use Municipal Lands for Projects {#sec-11-54-30 omnilex-key=us-al-statutes--title-11--11-54-30}
No municipality shall have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project and shall not have the power to use land already owned by the municipality or in which the municipality has an equity for construction thereon of a project or any part thereof. The entire cost of acquiring any project must be paid out of the proceeds from the sale of bonds issued under the authority of this article; provided, however, that this provision shall not be construed to prevent a municipality from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project.
*(Acts 1951, No. 756, p. 1307, §9.)*
##### **§ 11-54-31** Exemption from Taxation of Projects, Bonds, Etc {#sec-11-54-31 omnilex-key=us-al-statutes--title-11--11-54-31}
The bonds authorized by this article and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions of this article, and all projects and the revenue derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
*(Acts 1951, No. 756, p. 1307, §11.)*
##### **§ 11-54-32** Construction of Article {#sec-11-54-32 omnilex-key=us-al-statutes--title-11--11-54-32}
Neither this article nor anything contained in this article shall be construed as a restriction or limitation upon any powers which a municipality might otherwise have under any laws of this state, but shall be construed as cumulative, and this article shall not be construed as requiring an election by the voters of a municipality prior to the issuance of bonds under this article by such municipality.
*(Acts 1951, No. 756, p. 1307, §12.)*
#### **Article 3** Acquisition, Etc., of Projects for Provision of Buildings and Other Facilities for Certain National Organizations
##### **§ 11-54-50** Definitions {#sec-11-54-50 omnilex-key=us-al-statutes--title-11--11-54-50}
Wherever used in this article, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings:
(1) GOVERNING BODY. The board or body in which the legislative powers of the municipality are vested.
(2) MORTGAGE. A mortgage or a mortgage and indenture of trust.
(3) MUNICIPALITY. Any incorporated city or town in the State of Alabama.
(4) NATIONAL ORGANIZATION.
a. Any regional, national, or international association or organization, one or more of the purposes or objects of which shall consist of one or more of the following:
1. The promotion of patriotism or good citizenship;
2. The development of civic pride or consciousness;
3. The improvement of trade, business, professional, or economic conditions; or
4. The promotion of health, safety, conservation, community beautification, or community welfare.
b. The membership of such regional, national, or international association or organization shall include:
1. Persons, firms, or corporations residing or domiciled in not less than 12 of the states of the United States, including at least two such members residing or domiciled in the State of Alabama, or
2. Local organizations or clubs with like objects or purposes situated in not less than 12 of the states of the United States, including at least two such organizations or clubs situated in the State of Alabama.
c. The location of the membership of any national organization shall be conclusively established by the certificate of the chief executive officer and the secretary of the national organization filed with the municipality and stating facts which show that such membership satisfies the requirements of this definition.
(5) PROJECT. A building or buildings for the supplying of offices, storage, or related facilities for a national organization, together with any lands or interests in lands deemed by the municipality to be desirable in connection therewith.
*(Acts 1973, No. 812, p. 1251, §1.)*
##### **§ 11-54-51** Legislative Intent; Construction of Article Generally {#sec-11-54-51 omnilex-key=us-al-statutes--title-11--11-54-51}
(a) It is the intent of the Legislature by the passage of this article to authorize municipalities to provide buildings and other facilities for lease to and use by one or more national organizations in order to induce such organizations to establish or to locate offices in this state or in order to encourage or facilitate such organizations in continuing to maintain offices in this state.
(b) This article shall be liberally construed in conformity with the said intent.
*(Acts 1973, No. 812, p. 1251, §2.)*
##### **§ 11-54-52** Powers of Municipalities Generally as to Acquisition, Leasing, Etc., of Projects for Provision of Buildings and Other Facilities for Certain National Organizations {#sec-11-54-52 omnilex-key=us-al-statutes--title-11--11-54-52}
In addition to any other powers which it may now have, each municipality shall have the following powers:
(1) To acquire, whether by construction, purchase, gift, or lease, and to equip one or more projects, which shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than 15 miles outside of the corporate limits of the municipality;
(2) To improve, enlarge, expand, equip, furnish, insure, and maintain one or more projects;
(3) To lease to others any or all of its projects or any part thereof for such rentals and upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of this article and to grant options to renew or extend any such lease upon such terms and conditions as the governing body may determine; provided, that no lease shall extend beyond the last maturity of any bonds issued by the municipality or 60 years from the date of the lease, whichever is the longer, and no option to renew shall permit the extension of any lease beyond such period;
(4) To issue revenue bonds for the purpose of defraying the cost of acquiring, improving, enlarging, expanding, equipping, or furnishing any project and to secure the payment of such bonds as provided in this article; and,
(5) To enter into contracts and agreements and to do any act necessary for or incidental to the performance of the duties and the execution of its powers under this article.
*(Acts 1973, No. 812, p. 1251, §3.)*
##### **§ 11-54-53** Requirements as to Leasing of Projects {#sec-11-54-53 omnilex-key=us-al-statutes--title-11--11-54-53}
(a) Prior to the leasing of any project, the governing body must determine and find the following:
(1) The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance such project;
(2) The amount necessary to be paid each year into any reserve funds which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and
(3) The estimated cost of maintaining the project in good repair and keeping it properly insured, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto.
(b) The determinations and findings of the governing body required to be made by subsection (a) of this section shall be set forth in the proceedings under which the proposed bonds are to be issued and, prior to the issuance of such bonds, the municipality shall lease the project to a lessee under an agreement providing for payment to the municipality of such rentals as upon the basis of such determinations and findings will be sufficient:
(1) To pay the principal of and interest on the bonds issued to finance the project;
(2) To build up and maintain any reserves deemed by the governing body to be advisable in connection therewith; and
(3) To pay the costs of maintaining the project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.
*(Acts 1973, No. 812, p. 1251, §6.)*
##### **§ 11-54-54** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc {#sec-11-54-54 omnilex-key=us-al-statutes--title-11--11-54-54}
All bonds issued by a municipality under authority of this article shall be limited obligations of the municipality, the principal of and interest on which shall be payable solely out of the revenues derived from the leasing of the project to finance which the bonds are issued. Bonds and interest coupons issued under the authority of this article shall never constitute an indebtedness of the municipality within the meaning of any state constitutional provision or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the municipality or a charge against its general credit or taxing powers, and such fact shall be plainly stated in the face of each such bond.
Such bonds may be executed and delivered at any time and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments, in such amounts and at such time or times, not exceeding 40 years from the date thereof, may be payable at such place or places, whether within or without the State of Alabama, may bear interest at such rate or rates payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent with this article as shall be provided in the proceedings of the governing body whereunder the bonds shall be authorized to be issued. The bonds issued under this article shall not be subject to the laws of the State of Alabama governing usury or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
The bonds issued under this article shall be subject to the general provisions of law, presently existing or that may hereafter be enacted, respecting the execution of the bonds of a municipality and respecting the retaining of options of redemption in proceedings authorizing the issuance of municipal securities. Any bonds issued under the authority of this article may be sold at public or private sale in such manner and from time to time as may be determined by the governing body to be most advantageous, and the municipality may pay all expenses, premiums and commissions which the governing body may deem necessary or advantageous in connection with the authorization, sale and issuance thereof.
All bonds issued under the authority of this article and all interest coupons applicable thereto shall be construed to be negotiable instruments despite the fact that they are payable solely from a specified source.
*(Acts 1973, No. 812, p. 1251, §4.)*
##### **§ 11-54-55** Bonds - Security for Payment of Principal and Interest {#sec-11-54-55 omnilex-key=us-al-statutes--title-11--11-54-55}
The principal of and interest on any bonds issued under the authority of this article shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such project.
The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the revenues from such project and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, as the governing body shall deem advisable and as shall not be in conflict with the provisions of this article; provided, however, that in making any such agreements or provisions a municipality shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers.
The proceedings authorizing any bonds under this article and any mortgage securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by civil action and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
*(Acts 1973, No. 812, p. 1251, §5.)*
##### **§ 11-54-56** Bonds - Disposition of Proceeds from Sale {#sec-11-54-56 omnilex-key=us-al-statutes--title-11--11-54-56}
(a) The proceeds derived from the sale of any bonds issued under authority of this article, other than refunding bonds, shall be used only to pay the cost of acquiring, constructing, improving, enlarging, equipping and furnishing one or more projects as may be provided in the proceedings in which the bonds are authorized to be issued.
(b) Such cost shall be deemed to include the following:
(1) The cost of acquiring any land forming a part of the project;
(2) The cost of the labor, materials and supplies used in any such construction, improvement or enlargement, including architect’s and engineer’s fees and the cost of preparing contract documents;
(3) The purchase price of and the cost of installing equipment, furniture and furnishings for the project;
(4) The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities and parking facilities in connection therewith;
(5) Legal, fiscal and recording fees and expenses incurred in connection with any such acquisition and construction and with the authorization, sale and issuance of the bonds issued in connection with the project; and
(6) Interest on the bonds for a reasonable period prior to the commencement of the construction of the project and during the period that it is estimated will be required for such construction and for a period of not more than six months after the completion of such construction.
(c) If any proceeds derived from the sale of the bonds remain undisbursed after completion of the work and payment of all costs and expenses in connection with the project with respect to which the bonds are issued, such balance shall be applied toward the retirement of the bonds. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were authorized to be issued.
*(Acts 1973, No. 812, p. 1251, §8.)*
##### **§ 11-54-57** Refunding Bonds {#sec-11-54-57 omnilex-key=us-al-statutes--title-11--11-54-57}
Any bonds issued under this article and at any time outstanding may at any time and from time to time be refunded by a municipality by the issuance of its refunding bonds in such amount as the governing body may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon, any premiums and commissions necessary to be paid in connection therewith and the expenses incurred in connection with such refunding.
Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature either by sale of the refunding bonds and the application of the proceeds thereof for the payment, redemption or retirement of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby or by any combination thereof; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption.
Any refunding bonds issued under the authority of this article shall be payable solely from the revenues out of which the bonds to be refunded thereby were payable and shall be subject to the provisions contained in Section 11-54-54 and may be secured in accordance with the provisions of Section 11-54-55.
*(Acts 1973, No. 812, p. 1251, §7.)*
##### **§ 11-54-58** Notice To, Consent or Approval of Governmental Body, Etc., Not to Be Required for Issuance or Sale of Bonds or Execution of Mortgages {#sec-11-54-58 omnilex-key=us-al-statutes--title-11--11-54-58}
No notice to or consent or approval by any governmental body or public officer shall be required as a prerequisite to the sale or issuance of any bonds or the making of a mortgage under the authority of this article.
*(Acts 1973, No. 812, p. 1251, §13.)*
##### **§ 11-54-59** Investment in Bonds by Savings Banks and Insurance Companies {#sec-11-54-59 omnilex-key=us-al-statutes--title-11--11-54-59}
Bonds issued under the provisions of this article shall be legal investments for savings banks and insurance companies organized under the laws of this state.
*(Acts 1973, No. 812, p. 1251, §10.)*
##### **§ 11-54-60** Municipalities Not to Contribute to Costs of Acquisition of Projects or Use Municipal Lands for Projects {#sec-11-54-60 omnilex-key=us-al-statutes--title-11--11-54-60}
No municipality shall have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project and shall not have the power to use land already owned by the municipality or in which the municipality has an equity for construction thereon of a project or any part thereof. The entire cost of acquiring any project must be paid out of the proceeds from the sale of bonds issued under the authority of this article; provided, however, that this provision shall not be construed to prevent a municipality from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project or from requiring any lessee of a project to pay the cost of completing such project in the event the proceeds from the sale of the bonds are insufficient therefor.
*(Acts 1973, No. 812, p. 1251, §9.)*
##### **§ 11-54-61** Exemption from Taxation of Projects, Bonds, Etc {#sec-11-54-61 omnilex-key=us-al-statutes--title-11--11-54-61}
The bonds authorized by this article and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions of this article, any deeds or other documents whereby properties are acquired by a municipality under authority of this article and all projects and the revenue derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
*(Acts 1973, No. 812, p. 1251, §11.)*
##### **§ 11-54-62** Construction of Article {#sec-11-54-62 omnilex-key=us-al-statutes--title-11--11-54-62}
Neither this article nor anything contained in this article shall be construed as a restriction or limitation upon any powers which a municipality might otherwise have under any laws of this state, but shall be construed as cumulative, and this article shall not be construed as requiring an election by the voters of a municipality prior to the issuance of bonds under this article by such municipality.
*(Acts 1973, No. 812, p. 1251, §12.)*
#### **Article 4** Industrial Development Boards
#### **Division 1** General Provisions
##### **§ 11-54-80** Definitions {#sec-11-54-80 omnilex-key=us-al-statutes--title-11--11-54-80}
Wherever used in this division, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings:
(1) INDUSTRIAL DEVELOPMENT BOARD or BOARD. Any industrial development board organized pursuant to the provisions of this division.
(2) MUNICIPALITY. Any incorporated city or town in this state with respect to which an industrial development board may be organized.
(3) PROJECT.
a. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by any one of the following or by any combination of two or more thereof:
1. Any industry for the manufacturing, processing or assembling of any agricultural, manufactured or mineral products.
2. Any commercial enterprise in storing, warehousing, or distributing any products of agriculture, mining, or industry, or providing hotel, motor inn services, specifically excluding public dormitories or student housing facilities for institutions of higher learning, including food or lodging services or both.
3. Any commercial enterprise providing linen rental services (including laundry and cleaning services related or incidental thereto) primarily to industries and commercial enterprises described in either of the preceding subparagraphs 1 and 2 and to institutions such as hospitals, nursing homes, other health care facilities and educational and training institutions.
4. Any enterprise for the purpose of research in connection with any of the following:
i. Any of the foregoing.
ii. The development of new products or new processes.
iii. The improvement of existing products or known processes.
iv. The development of facilities for the exploration of outer space or promotion of the national defense.
5. Any utility for the production of electricity by water power. In connection with a project described in this paragraph, “project” does not include facilities designed for the sale or distribution to the public of electricity, gas, water, or telephone, or other services commonly classified as public utilities.
6. Any commercial enterprise engaged in banking and specifically shall include bank holding companies.
b. Any project may consist of or include any facility necessary or appropriate for use by any industry or enterprise of the character described in the first sentence of this subdivision, including, without limiting the generality of the foregoing:
1. Office facilities designed for use by any industry or enterprise not only in connection with its operation in this state, but also for use by it as national, regional, or divisional offices in the management and supervision of its manufacturing, processing, assembling, storing, warehousing, distributing, selling, or research operations, wherever located.
2. Facilities for or useful in the control, reduction, abatement, or prevention of pollution of air or water or both.
c. This amendment, Acts 1983, No. 83-199, does not pertain to restaurants or food service operations which are not a part of hotels or motor inns mentioned above.
(4) GOVERNING BODY. The board or body in which the general legislative powers of the municipality are vested.
*(Acts 1949, No. 648, p. 991, §1; Acts 1964, 1st Ex. Sess., No. 143, p. 206, §1; Acts 1964, 1st Ex. Sess., No. 164, p. 229, §1; Acts 1971, No. 48, p. 297, §1; Acts 1982, No. 82-334, p. 463; Acts 1983, 2nd Ex. Sess., No. 83-199, p. 372, §§1, 5; Acts 1983, No. 83-430, p. 610; Acts 1995, No. 95-765, p. 1807, §1.)*
##### **§ 11-54-81** Legislative Intent; Construction of Division Generally {#sec-11-54-81 omnilex-key=us-al-statutes--title-11--11-54-81}
(a) It is the intent of the Legislature by the passage of this division to authorize the incorporation in the several municipalities in this state of industrial development boards to acquire, enlarge, improve, replace, own, lease, and dispose of properties to the end that such boards may be able to promote industry, develop trade, and further the use of the agricultural products and natural and human resources of this state and the development and preservation of the said resources, by inducing manufacturing, industrial, commercial, and research enterprises:
(1) To locate in this state,
(2) To enlarge, expand, and improve existing operations in this state, or
(3) To relocate in or within 25 miles of the same municipality in this state operations theretofore conducted at a site all or a major portion of which may have been acquired for one or more public purposes by the United States of America, the State of Alabama, or any branch, arm, agency, instrumentality, or political subdivision of either, whether by purchase, through the exercise of the power of eminent domain (whether or not a final decree of condemnation shall have been entered) or by other means. It is the further intent of the Legislature by the passage of this chapter to vest such industrial development boards with all powers that may be necessary to enable them to accomplish such purposes. It is not intended hereby that any such board shall itself be authorized to operate any such manufacturing, industrial, commercial, or research enterprise.
(b) This division shall be liberally construed in conformity with the said intention.
*(Acts 1949, No. 648, p. 991, §2; Acts 1963, 2nd Ex. Sess., No. 122, p. 310; Acts 1964, 1st Ex. Sess., No. 164, p. 229, §3; Acts 1965, No. 395, p. 572; Acts 1971, No. 48, p. 297, §2.)*
##### **§ 11-54-82** Application for Authority to Incorporate Industrial Development Board; Adoption of Resolution by Governing Body Authorizing Incorporation; Execution, Acknowledgment, and Filing of Certificate of Incorporation Generally {#sec-11-54-82 omnilex-key=us-al-statutes--title-11--11-54-82}
Whenever any number of natural persons, not less than three, each of whom shall be a duly qualified elector of and taxpayer in the municipality, shall file with the governing body thereof an application in writing seeking permission to apply for the incorporation of an industrial development board of such municipality, the governing body shall proceed to consider such application.
If the governing body shall by appropriate resolution duly adopted find and determine that it is wise, expedient, necessary, or advisable that the industrial development board be formed and shall authorize the persons making such application to proceed to form such board and shall approve the form of certificate of incorporation proposed to be used in organizing the board, then the persons making such application shall execute, acknowledge, and file a certificate of incorporation for the corporation as provided in Section 11-54-83.
No board may be formed unless such application shall have first been filed with the governing body of the municipality and the governing body shall have adopted a resolution as provided in this section.
*(Acts 1949, No. 648, p. 991, §3.)*
##### **§ 11-54-83** Certificate of Incorporation - Contents; Execution and Acknowledgment {#sec-11-54-83 omnilex-key=us-al-statutes--title-11--11-54-83}
(a) The certificate of incorporation shall set forth:
(1) The names and residences of the applicants together with a recital that each of them is an elector of and taxpayer in the municipality;
(2) The name of the board which shall be The Industrial Development Board of the _____ of _____ (the blank spaces to be filled in with the name of the municipality, including the proper designation thereof as a city or town) if such name shall be available for use by the board and if not available then the incorporators shall designate some other similar name that is available;
(3) A recital that permission to organize the board had been granted by resolution duly adopted by the governing body of the municipality and the date of the adoption of such resolution;
(4) The location of the principal office of the board (which shall be in the municipality);
(5) The purposes for which the board is proposed to be organized;
(6) The number of directors of the board;
(7) The period, if any, for the duration of the board; and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this division or with the laws of the State of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Alabama to take acknowledgments to deeds.
*(Acts 1949, No. 648, p. 991, §4.)*
##### **§ 11-54-84** Certificate of Incorporation - Filing with Probate Judge; Examination, Approval, and Recordation by Probate Judge {#sec-11-54-84 omnilex-key=us-al-statutes--title-11--11-54-84}
When executed and acknowledged in conformity with Section 11-54-83, the certificate of incorporation shall be filed with the judge of probate of any county in which may be located any portion of the territory embraced within the corporate limits of the municipality. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-54-83 have been complied with and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office.
When such certificate has been so made, filed, and approved, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
*(Acts 1949, No. 648, p. 991, §5.)*
##### **§ 11-54-85** Certificate of Incorporation - Amendment {#sec-11-54-85 omnilex-key=us-al-statutes--title-11--11-54-85}
The certificate of incorporation may at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance.
Any such amendment shall be effected in the following manner: The members of the board of directors of the board shall file with the governing body of the municipality an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary, or advisable that the proposed amendment be made and shall authorize the same to be made and shall approve the form of the proposed amendment, then the persons making such application shall execute an instrument embodying the amendment specified in such application and shall file the same with the judge of probate of the county in which the certificate of incorporation was originally filed. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. When such amendment has been so made, filed, and approved, it shall thereupon become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.
*(Acts 1949, No. 648, p. 991, §6.)*
##### **§ 11-54-86** Board of Directors {#sec-11-54-86 omnilex-key=us-al-statutes--title-11--11-54-86}
The industrial development board shall have a board of directors in which all powers of the board shall be vested and which shall consist of any number of directors, not less than seven, five of whom shall be duly qualified electors of and taxpayers in the municipality. At the discretion of the municipal governing body, all of the remaining members shall be qualified electors and taxpayers of the municipality, or up to two of the remaining members may be qualified electors and taxpayers in the area outside of the corporate limits of the municipality where a project may be located. The directors shall serve without compensation except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties under this article. No director shall be an officer or employee of the municipality. The directors shall be elected by the governing body of the municipality, and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the municipality shall divide the directors into three groups containing as nearly equal whole numbers as may be possible. The first term of the directors included in the first group shall be two years; the first term of the directors included in the second group shall be four years; the first term of the directors included in the third group shall be six years and thereafter the terms of all directors shall be six years; provided, that if at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his or her successor shall be so elected. If at the time of the election of any directors there shall be in existence in the municipality a chamber of commerce, board of trade, or other similar civic organization, the directors elected shall be chosen by the governing body from the membership of any one or more of such organizations, unless in the judgment of the governing body there are no members of such organizations who are both suitable and available to serve as directors of the industrial development board.
*(Acts 1949, No. 648, p. 991, §7; Act 2009-222, p. 399, §1.)*
##### **§ 11-54-87** Powers of Boards Generally; Location and Operation of Projects of Boards Generally; Meetings of Board of Directors {#sec-11-54-87 omnilex-key=us-al-statutes--title-11--11-54-87}
(a) The industrial development board shall have the following powers together with all powers incidental thereto or necessary for the performance of those stated in this subsection:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as provided in this article;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To have and to use a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise and to improve, maintain, equip, and furnish one or more projects, including all real and personal properties which the board of directors of the board may deem necessary in connection therewith, regardless of whether or not any such projects shall then be in existence;
(5) To lease to others any or all of its projects and to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof;
(6) To sell, exchange, donate, and convey any or all of its properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the board was organized;
(7) To issue its bonds for the purpose of carrying out any of its powers and to apply proceeds from the sale of its bonds (whether heretofore or hereafter issued) not only for payment of interest thereon prior to and during the construction and equipment of any buildings, structures, facilities, or other improvements being financed thereby but also for payment of interest thereon during a period of not exceeding two years after completion of any such construction and equipment;
(8) To mortgage and pledge any or all of its projects or any part or parts thereof, as security for the payment of the principal of and the interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof; and
(9) To employ and pay compensation to such employees and agents, including attorneys, as the board of directors shall deem necessary for the business of the board.
(b) Any project or projects of the board may be located within or without or partially within and partially without the municipality, subject to the following conditions:
(1) No such project or part thereof shall be located more than 25 miles from the corporate limits of the municipality;
(2) No such project or part thereof shall be located within the corporate limits of another city or town in this state;
(3) No such project or part thereof (other than a project or part thereof consisting principally or solely of facilities for or useful in the control, reduction, abatement, or prevention of pollution of air or water or both) shall be located within the police jurisdiction of another city or town in this state unless the governing body of such other city or town has first adopted a resolution consenting to the location of such project or part thereof in the police jurisdiction of such city or town; and
(4) No such project or part thereof shall be located in a county other than that (or those) in which the municipality (or part thereof) is situated unless the county commission of such other county has first adopted a resolution consenting to the location of such project or part thereof in such county. The board shall not have power to operate any project as a business other than as a lessor.
(c) Any meeting held by the board of directors for any purpose whatsoever shall be open to the public.
*(Acts 1949, No. 648, p. 991, §8; Acts 1953, No. 854, p. 1144; Acts 1964, 1st Ex. Sess., No. 143, p. 206, §2; Acts 1980, No. 80-805, p. 1637.)*
##### **§ 11-54-88** Additional Powers as to Pollution Control Facilities {#sec-11-54-88 omnilex-key=us-al-statutes--title-11--11-54-88}
(a)(1) In addition to all other powers at any time conferred on them by law, each industrial development board shall have the following powers:
a. To acquire, whether by construction, purchase, exchange, gift, lease, or otherwise and to enlarge, improve, replace, equip, and maintain one or more pollution control facilities, including all real and personal properties deemed necessary or desirable in connection therewith, including the sale and issuance of bonds for any of the said purposes;
b. To lease to others and otherwise dispose of all or any portion of any pollution control facility; and
c. To exercise with respect to any pollution control facility and each part thereof any and all powers that are conferred on industrial development boards by other provisions of this division. Each pollution control facility so acquired by any industrial development board may be a part of another project or may constitute a separate project within the meaning of this division.
(2) Each industrial development board shall have with respect to pollution control facilities all powers that are conferred on such boards with respect to other projects by other provisions of this division; all applicable provisions of this division shall apply to the exercise by an industrial development board of the powers conferred on it by this subsection, and all other provisions of this division with which this section is not in conflict shall be applicable to the exercise by an industrial development board of its functions under this section.
(b) It is the intent of the Legislature by passage of this section to confer on each industrial development board now or hereafter organized, in addition to those powers heretofore or hereafter conferred on them by the other provisions of this division, the power to sell and issue its bonds for and to acquire, construct, enlarge, improve, replace, equip, maintain, lease, and dispose of pollution control facilities for lease to and use by any industry or enterprise, whether separately or in conjunction with one or more such facilities or any other project as the term “project” is defined in this division. It is not intended hereby that any industrial development board shall itself be authorized to operate any pollution control facility or any part thereof.
(c) Wherever used in this section, unless a different meaning clearly appears in the context, the following terms, shall be given the following respective meanings:
(1) POLLUTION.
a. The placing (whether by emission, discharge, leakage, or other means) of any noxious or deleterious noise or substance into any air or water of, in, or adjacent to the State of Alabama;
b. The contaminating of such air and water; or
c. The affecting of any such air or water so as to render or be likely to render such air or water (or the use of either thereof for domestic, industrial, agricultural, or recreational purposes) hazardous, inimical, or harmful to the health, safety, or welfare of human beings, animals, birds, aquatic creatures, or any of them, or to the existence or growth of vegetation.
(2) POLLUTION CONTROL FACILITY. Any land, building, structure, machinery, or equipment having to do with or designed for or the end purpose of which is the control, reduction, abatement, or prevention of air, noise, water, or general environmental pollution, including, but not limited to, any air pollution control facility, noise abatement or reduction facility, water management facility, water purification facility, waste water collecting system, waste water treatment works, or solid waste disposal facility.
*(Acts 1971, No. 1893, p. 3082, §§1-3.)*
##### **§ 11-54-89** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Refunding of Bonds {#sec-11-54-89 omnilex-key=us-al-statutes--title-11--11-54-89}
All bonds issued by the industrial development board shall be payable solely out of the revenues and receipts derived from the leasing or sale by the board of its projects or of any thereof as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued.
Such bonds may be executed and delivered by the board at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times, not exceeding 40 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the corporation and in such manner and may contain such provisions not inconsistent with this article as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued. If deemed advisable by the board of directors, there may be retained in the proceedings under which any bonds of the board are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of the bonds, but nothing contained in this section shall be construed to confer on the board any right or option to redeem any bonds except as may be provided in the proceedings under which they shall be issued.
Any bonds of the board may be sold at public or private sale in such manner and from time to time as may be determined by the board of directors of the board to be most advantageous, and the board may pay all expenses, premiums and commissions which its board of directors may deem necessary or advantageous in connection with the issuance thereof.
Issuance by the board of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, but the proceedings whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
Any bonds of the board at any time outstanding may at any time and from time to time be refunded by the board by the issuance of its refunding bonds in such amount as the board of directors may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums and commissions necessary to be paid in connection therewith. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded and regardless of whether or not the bonds to be refunded were issued in connection with the same projects or separate projects and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
All such bonds and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
*(Acts 1949, No. 648, p. 991, §9; Acts 1964, 1st Ex. Sess., No. 143, p. 206, §3.)*
##### **§ 11-54-90** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-54-90 omnilex-key=us-al-statutes--title-11--11-54-90}
The principal of and interest on any bonds issued by the industrial development board shall be secured by a pledge of the revenues and receipts out of which the same shall be made payable and may be secured by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made.
The resolution under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents for any portions thereof leased by the board to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default as the board of directors shall deem advisable not in conflict with the provisions of this division. Each pledge, agreement, mortgage and deed of trust made for the benefit of security of any of the bonds of the board shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
In the event of default in such payment or in any agreements of the board made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust executed as security therefor, may be enforced by mandamus, the appointment of a receiver or by foreclosure of any such mortgage and deed of trust or any one or more of said remedies.
*(Acts 1949, No. 648, p. 991, §10.)*
##### **§ 11-54-91** Borrowing of Money for Temporary Use and Issuance of Temporary Revenue Bonds as Evidence Thereof {#sec-11-54-91 omnilex-key=us-al-statutes--title-11--11-54-91}
(a) Any industrial development board organized under the provisions of this division, as amended, may, in addition to the other powers granted in the other provisions of this division, borrow money for temporary use for any of its corporate purposes and, in evidence of such borrowing, issue from time to time revenue bonds or notes maturing not later than 18 months from the date of issuance.
(b) Any such temporary borrowing may be made in anticipation of the sale and issuance of long-term revenue bonds; and, in such event, the principal proceeds from the sale of such long-term revenue bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary revenue bonds or notes issued in anticipation of the sale and issuance of such long-term revenue bonds.
(c) Any such temporary borrowing may also be made with respect to a project (as that term is defined in this article, as amended) simultaneously with or after the sale and issuance of long-term revenue bonds issued with respect to such project if, under the terms of the proceedings under which such long-term revenue bonds are issued, the proceeds therefrom or any part thereof may not be used or released until completion of the project with respect to which issued or other similar contingency. In such case, the principal proceeds from the long-term revenue bonds shall, when released and to the extent necessary, be applied for payment of the principal of and the interest on such temporary revenue bonds or notes.
(d) Any temporary bonds or notes issued pursuant to this section may be refunded or renewed or extended for an additional period of not more than 18 months from the date of maturity of the temporary bonds or notes being refunded or renewed or extended, but otherwise pursuant to all of the terms and conditions of this section, whether or not the project with respect to which the outstanding temporary revenue bonds or notes were issued has been completed.
*(Acts 1963, No. 90, p. 474; Acts 1975, 4th Ex. Sess., No. 88, p. 2754, §1.)*
##### **§ 11-54-92** Liability of Municipalities Upon Bonds, Agreements, Obligations, Etc., of Boards {#sec-11-54-92 omnilex-key=us-al-statutes--title-11--11-54-92}
The municipality shall not in any event be liable for the payment of the principal of or interest on any bonds of the industrial development board or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the board, and none of the bonds of the board or any of its agreements or obligations shall be construed to constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1949, No. 648, p. 991, §12.)*
##### **§ 11-54-93** Disposition of Net Earnings of Boards {#sec-11-54-93 omnilex-key=us-al-statutes--title-11--11-54-93}
The industrial development board shall be a nonprofit corporation, and no part of its net earnings remaining after payment of its expenses shall enure to the benefit of any individual, firm, or corporation; except, that in the event the board of directors of the board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of the board, then any net earnings of the corporation thereafter accruing shall be paid to the municipality with respect to which the board was organized.
*(Acts 1949, No. 648, p. 991, §13.)*
##### **§ 11-54-94** Authority and Procedure for Dissolution of Boards; Vesting of Title to Funds and Properties Thereof in Municipalities Upon Dissolution {#sec-11-54-94 omnilex-key=us-al-statutes--title-11--11-54-94}
Whenever the board of directors of the industrial development board shall by resolution determine that the purposes for which the board was formed have been substantially complied with and all bonds theretofore issued and all obligations theretofore incurred by the board have been fully paid, the members of the board of directors of the board shall thereupon execute and file for record in the office of the judge of probate of the county in which the board is organized a certificate of dissolution reciting such facts and declaring the board to be dissolved. Such certificate of dissolution shall be executed under the corporate seal of the board.
Upon the filing of such certificate of dissolution, the board shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in the municipality, and possession of such funds and properties shall forthwith be delivered to such municipality.
*(Acts 1949, No. 648, p. 991, §14.)*
##### **§ 11-54-95** Documents of Boards May Be Filed for Record Without Payment of Taxes or Certain Fees {#sec-11-54-95 omnilex-key=us-al-statutes--title-11--11-54-95}
The certificate of incorporation of the industrial development board, any deeds or other documents whereby properties are conveyed to the board, any mortgages or deeds of trust executed by the board, any leases or agreements or contracts of sale made by the board, any deeds or other documents whereby properties are conveyed by the board to another pursuant to a contractual obligation of the board or as a result of the exercise of an option theretofore granted by the board, and the certificate of dissolution of the board may all be filed for record in the office of the judge of probate of the county in which the board is organized or any county in which any property involved is located without the payment of any tax or fees other than such fees as may be authorized by law for the recording of such instruments.
*(Acts 1949, No. 648, p. 991, §15; Acts 1953, No. 854, p. 1144, §2; Acts 1982, No. 82-432, p. 682.)*
##### **§ 11-54-96** Exemptions of Boards - Taxation {#sec-11-54-96 omnilex-key=us-al-statutes--title-11--11-54-96}
The industrial development board and all properties at any time owned by it and the income therefrom and all bonds issued by it and the income therefrom shall be exempt from all taxation in the State of Alabama.
*(Acts 1949, No. 648, p. 991, §11.)*
##### **§ 11-54-96.1** Ad Valorem Taxes Required of Hotels, Etc., Built Under Section 11-54-80 {#sec-11-54-96.1 omnilex-key=us-al-statutes--title-11--11-54-96.1}
All hotels and motor inns built under Section 11-54-80 shall not be exempt from ad valorem taxes.
*(Acts 1983, 2nd Ex. Sess., No. 83-199, p. 372, §3.)*
##### **§ 11-54-97** Exemption of Boards - Usury and Interest Laws {#sec-11-54-97 omnilex-key=us-al-statutes--title-11--11-54-97}
Each industrial development board now or hereafter organized under the provisions of this division is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1969, No. 1150, p. 2157.)*
##### **§ 11-54-98** Exemption of Boards - Competitive Bid Laws {#sec-11-54-98 omnilex-key=us-al-statutes--title-11--11-54-98}
The industrial development board and all contracts made by it shall be exempt from the provisions and requirements of Sections 41-16-50 through 41-16-63, which provide for competitive bids in connection with certain contracts.
*(Acts 1971, No. 48, p. 297, §3.)*
##### **§ 11-54-99** Validation of Attempted Incorporation of Certain Industrial Development Boards {#sec-11-54-99 omnilex-key=us-al-statutes--title-11--11-54-99}
In all cases where there has heretofore been an attempt to incorporate a municipal industrial development board under the provisions of this article and a certificate of incorporation with respect to such board has been filed in the office of the judge of probate of the county in which such board was sought to be incorporated, but the attempted incorporation is invalid because of some irregularity in the procedure followed, the attempted incorporation of such industrial development board with respect to which such a certificate of incorporation has been filed shall be and hereby is validated ab initio, notwithstanding any irregularity in the procedure for the incorporation of such board, including without limiting the generality of the foregoing:
(1) The failure of the judge of probate in whose office such certificate of incorporation was filed to examine such certificate of incorporation;
(2) The failure of such judge of probate to find or make an order that
a. The recitals contained in the certificate of incorporation were correct;
b. The requirements of Section 11-54-83 were complied with; or,
c. The name of such board was not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion or uncertainty.
(3) The failure of such judge of probate to approve such certificate of incorporation or make an order so approving it; and
(4) The organization in a municipality, prior to January 1, 1967, of a second industrial development board subsequent to the organization of a previous validly incorporated industrial development board.
*(Acts 1957, No. 484, p. 669; Acts 1967, No. 516, p. 1240.)*
##### **§ 11-54-100** Construction of Division {#sec-11-54-100 omnilex-key=us-al-statutes--title-11--11-54-100}
(a) Neither this division nor anything contained in this division shall be construed as a restriction or limitation upon any powers which the industrial development board might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.
(b) No proceedings, notice, or approval shall be required for the organization of the board or the issuance of any bonds or any instrument as security therefor, except as is provided in this division, any other law to the contrary notwithstanding; provided, that nothing in this division shall be construed to deprive the state and its governmental subdivisions of their respective police powers over any properties of the board or to impair any power thereover of any official or agency of the state and its governmental subdivisions which may be otherwise provided by law.
*(Acts 1949, No. 649, p. 998, §16.)*
##### **§ 11-54-101** Powers Cumulative; Administrative Fees {#sec-11-54-101 omnilex-key=us-al-statutes--title-11--11-54-101}
(a) The powers conferred by this division shall be cumulative of and in addition to all powers heretofore conferred on industrial development boards by the Industrial Development Board Act.
(b) In addition to any other powers conferred by this division, in order to encourage economic and industrial development and to promote the creation of jobs within any Class 1 municipality, any industrial development board in a Class 1 municipality whose directors are elected by the governing body of the Class 1 municipality that grants a tax abatement pursuant to Chapter 9B of Title 40, may charge an administrative fee in an amount not to exceed .0025 percent of the total estimated investment amount for the project up to an estimated investment amount of forty million dollars ($40,000,000) as reflected in the application for abatement of taxes submitted to a board by a private entity, business, or other private user, as defined in Section 40-9B-3. Notwithstanding any other provision of law, an administrative fee received pursuant to this subsection shall be retained and used by the board for economic or industrial development data mining; data-driven economic or industrial development projects; the location, development, or acquisition of potential industrial sites or industrial parks; and for other lawful purposes for which the industrial development board is authorized to use funds pursuant to this division.
*(Acts 1971, No. 1893, p. 3082, §4; Act 2019-321, §2.)*
#### **Division 2** Ancillary Facilities
##### **§ 11-54-120** Definitions {#sec-11-54-120 omnilex-key=us-al-statutes--title-11--11-54-120}
Wherever used in this division, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective interpretations:
(1) INDUSTRIAL DEVELOPMENT BOARD. Any public corporation now in existence or hereafter organized pursuant to the provisions of the Industrial Development Board Act.
(2) INDUSTRIAL DEVELOPMENT BOARD ACT.
a. Act No. 648 enacted at the 1949 Regular Session of the Legislature of Alabama, as amended (Division 1 of this article), and
b. This chapter.
(3) ANCILLARY FACILITY. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, including without limitation office facilities and any other necessary or appropriate facilities, whether or not now in existence, which shall be suitable for use by any of following or by any combination of two or more thereof:
a. Any industrial development board;
b. Any local or regional chamber of commerce, board of trade, or other similar association or organization, one of the purposes or objects of which is the promotion of industrial or commercial development or the improvement of trade, business, professional, or economic conditions;
c. Any convention, visitors, or other similar bureau or organization, one of the purposes or objects of which is the promotion of tourism or of conventions or meetings of business, civic or trade association groups; and
d. Any non-profit educational foundation, one of the purposes or objects of which is the acquisition, development, and sale of land for industrial development purposes and whose net earnings inure to the benefit of one or more institutions of higher education operated by the State of Alabama.
*(Acts 1982, No. 82-510, p. 843, §1.)*
##### **§ 11-54-121** Legislative Intent; Liberal Construction {#sec-11-54-121 omnilex-key=us-al-statutes--title-11--11-54-121}
It is the intent of the Legislature by passage of this division to confer on industrial development boards now or hereafter organized, in addition to those powers heretofore or hereafter conferred on them, the power to sell and issue their bonds for, and to acquire, construct, enlarge, improve, replace, equip, maintain, use, operate, lease, and dispose of ancillary facilities. This division shall be liberally construed to conform with the said intention.
*(Acts 1982, No. 82-510, p. 843, §2.)*
##### **§ 11-54-122** Additional Powers of Industrial Development Boards; Powers with Respect to Ancillary Facilities {#sec-11-54-122 omnilex-key=us-al-statutes--title-11--11-54-122}
In addition to all other powers at any time conferred on it by law, each industrial development board shall have the following powers:
(1) To acquire, whether by construction, purchase, exchange, gift, lease, or otherwise, and to enlarge, improve, replace, equip, and maintain, one or more ancillary facilities, including all real and personal properties deemed necessary or desirable in connection therewith, and to sell and issue its bonds for any of such purposes;
(2) To lease to others and otherwise dispose of all or any portion of any ancillary facility, provided that an industrial development board may operate and use any ancillary facility, or any part thereof, intended for its own use; and
(3) To exercise with respect to any ancillary facility, and each part thereof, any and all powers that are conferred on industrial development boards by the Industrial Development Board Act.
Each industrial development board shall have with respect to ancillary facilities all powers that are conferred on such boards by the Industrial Development Board Act with respect to other projects; all applicable provisions of the Industrial Development Board Act shall apply to the exercise by an industrial development board of the powers conferred on it by this division; and all other provisions of the Industrial Development Board Act with which this division is not in conflict shall be applicable to the exercise by an industrial development board of its powers under this division, all to the same extent as if the said provisions of the Industrial Development Board Act were set out in full herein; provided, however, that any bonds issued by an industrial development board in connection with any ancillary facility intended, in whole or in part, for its own use and operation need not be payable solely out of the revenues and receipts derived from the leasing or sale of such facility but shall be payable solely out of such revenues and receipts as may be designated in the proceedings of the board of directors of such industrial development board under which such bonds shall be authorized to be issued.
*(Acts 1982, No. 82-510, p. 843, §3; Acts 1983, 2nd Ex. Sess., No. 83-131, p. 137, §1.)*
##### **§ 11-54-123** Powers Cumulative {#sec-11-54-123 omnilex-key=us-al-statutes--title-11--11-54-123}
The powers conferred by this division shall be cumulative of and in addition to all powers heretofore conferred on industrial development boards by the Industrial Development Board Act.
*(Acts 1982, No. 82-510, p. 843, §4.)*
#### **Division 3** Endowment Trust Funds
##### **§ 11-54-125** Definitions {#sec-11-54-125 omnilex-key=us-al-statutes--title-11--11-54-125}
As used in this division, the following terms shall have the following meanings:
(1) AUTHORIZING RESOLUTION. A resolution adopted by the directors and authorizing the execution and delivery of a trust agreement.
(2) DIRECTORS. The board of directors of an industrial development board.
(3) ENDOWMENT TRUST FUND or FUND. A trust fund created by an industrial development board pursuant to this division.
(4) FUND MANAGER. Any individual, partnership, corporation, or other person, including, without limitation, a trustee bank, employed to manage and invest moneys held in and forming a part of an endowment trust fund and other contributions to such fund.
(5) INDUSTRIAL DEVELOPMENT BOARD or BOARD. A public corporation now in existence or hereafter organized pursuant to the provisions of either industrial development board act.
(6) INDUSTRIAL DEVELOPMENT BOARD ACT. Act 648, 1949 Regular Session, as amended, and Division 1 and Division 2 of this article, as amended.
(7) INVESTMENT COMMITTEE. A committee of persons elected by the directors pursuant to Section 11-54-130.
(8) INVESTMENT POLICY. A written statement that:
a. Generally describes or specifies the types, classes, or categories of investments in which moneys held in and forming a part of an endowment trust fund may be invested.
b. Sets forth the mode and manner for investing such moneys, including, without limitation, provisions respecting the investment or reinvestment of such moneys by any fund manager with or without the prior approval, whether written or oral, of the investment committee.
c. Contains such provisions as the investment committee deems advisable for the management, use, and disposition of properties, other than money, contributed to such fund.
d. Establishes benchmarks and criteria for measuring investment performance and compliance with the terms and provisions of the investment policy.
e. Requires the preparation and publication of periodic reports with respect to investment performance and compliance with such terms and provisions.
(9) STATUTORY SERVICE AREA. The geographical area within which a board may, under the provisions of either industrial development board act, locate any “project,” as that term may at any time be defined and used in either industrial development board act.
(10) TRADE ORGANIZATION. A chamber of commerce, board of trade, trade association, or other similar civic organization that has its principal office in the statutory service area of the board.
(11) TRUST AGREEMENT. A trust agreement, trust instrument, or similar contract between an industrial development board and one or more trustee banks, and providing for the creation and administration of an endowment trust fund.
(12) TRUSTEE BANK. A bank or trust company that has trust powers and is qualified to do business in the State of Alabama.
*(Act 2000-730, p. 1569, §1.)*
##### **§ 11-54-126** Legislative Findings and Intent {#sec-11-54-126 omnilex-key=us-al-statutes--title-11--11-54-126}
(a) The Legislature hereby finds and declares all of the following:
(1) That industrial development boards have been, and may hereafter be, organized, under the provisions of either industrial development board act, to promote industry, develop trade, and further the use of the agricultural products and natural and human resources of the State of Alabama and the development and preservation of such resources.
(2) That in order to enable all industrial development boards to act more effectively to promote both the establishment of new business, manufacturing, industrial, commercial, service, and research enterprises, and the expansion of such enterprises already existing in Alabama, it is advisable that they be empowered to receive, manage, use, and expend contributions from private sources that are separate from and in addition to any other moneys or other properties that such boards are empowered by law to expend or to own.
(3) That the inducement of new business, manufacturing, industrial, commercial, service, and research enterprises to locate in this state, and the promotion of the prosperity of such enterprises already existing within this state, are in the best interests of the people of this state.
(4) That the purposes for which endowment trust funds may be created under this division, and the purposes to be accomplished by this division, are proper public purposes.
(b) It is therefore the intent of the Legislature to confer on industrial development boards, in addition to those powers heretofore or hereafter conferred on them, the power to establish and administer endowment trust funds in support and furtherance of the purposes herein authorized. This division shall be liberally construed in conformity with such intention.
*(Act 2000-730, p. 1569, §2.)*
##### **§ 11-54-127** Additional Powers of Boards {#sec-11-54-127 omnilex-key=us-al-statutes--title-11--11-54-127}
(a) In addition to all other powers conferred on it by law, and subject to any express provisions of its certificate of incorporation to the contrary, any industrial development board shall have all of the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To create or establish one or more endowment trust funds.
(2) To receive and accept from any private source, for the account of any endowment trust fund so created or established by it, contributions in the form of gifts of money, stocks, bonds, and other debt securities, other personal property, whether tangible or intangible, and real property of any description, subject, in the case of any such contribution, to any lawful condition to the use thereof that is specified by the donor thereof and that is not inconsistent with the provisions of this division.
(3) To deposit, or to cause to be deposited, into any endowment trust fund created by it any moneys derived by the board from the leasing or sale of any project or otherwise received by the board in connection with the exercise of its powers under either industrial development board act, provided that such deposit of moneys is not inconsistent with the terms and provisions of the lease or other instrument whereunder such moneys are authorized or required to be paid to the board.
(4) To designate or appoint one or more trustee banks with respect to any endowment trust fund so created or established by such board.
(5) To appoint, employ, contract with, and provide for the compensation of one or more fund managers to manage any endowment trust fund so created or established by the board, or any specific or designated part of any such fund, provided that any fund manager shall at all times be and remain subject to the general supervision of the investment committee.
(6) To take out and maintain, for the benefit of the board, a fidelity bond on any officer, employee, or other person who may handle moneys or other properties held in or forming a part of any endowment trust fund, in such amount and for such time as the directors may determine, and to pay the cost of any bond.
(7) To enter into such contracts, agreements, and other instruments including, without limitation, any trust agreement and any contract with a trade organization providing for the use and expenditure of moneys held in and forming a part of an endowment trust fund, as may be necessary or convenient to accomplish any power expressly granted hereunder.
(b) Nothing herein shall be construed to require or compel, or to empower any board, investment committee, fund manager, or trustee bank to require or compel any person to contribute to any endowment trust fund, whether created or established by such board or by another board, as a condition to the exercise of any power of such board under either industrial development board act, including, without limitation, the issuance of bonds by such board. Nor shall anything herein be construed to empower any industrial development board or endowment trust fund to operate any business or to employ, or to cause to be employed, in connection with the operation of any business, any property, whether real or personal, tangible or intangible, contributed to such fund; provided, however, that moneys held in and forming a part of a fund may be invested, and other properties so contributed to such fund may be managed, used, and disposed of, in accordance with this division. Notwithstanding any other law to the contrary, no state or local governmental unit, including, without limitation, the State of Alabama and each county, municipality, and other political subdivision thereof, or other public body may contribute any money or other property owned or held by it to, or for the account of, any endowment trust fund; nor may any board or fund accept any contribution, whether made directly or indirectly, of any such money or other property contributed to, or for the account of, any such fund by any such state or local governmental unit or other public body.
*(Act 2000-730, p. 1569, §3.)*
##### **§ 11-54-128** Authorizing Resolution {#sec-11-54-128 omnilex-key=us-al-statutes--title-11--11-54-128}
(a) In order to provide for the establishment of an endowment trust fund, the directors shall adopt an authorizing resolution authorizing the execution and delivery, on behalf of the industrial development board, of a trust agreement under which such fund shall be established and maintained. The directors may, in either the authorizing resolution or the trust agreement authorized thereby, or, at the discretion of the directors, in both, all as the directors shall deem appropriate, set out all of the following:
(1) The general purpose or purposes of such fund, and, subject to the provisions of Section 11-54-129, the purpose or purposes for which moneys held in and forming a part of such fund may be expended and the manner in which all other properties, whether real or personal, tangible or intangible contributed to such fund may be managed, used and disposed of.
(2) A procedure or procedures for the distribution or expenditure of such moneys and the management, use, and disposition of such other properties.
(3) The period, if any, for the duration of the fund, except that the period may not exceed the duration of the board itself.
(4) Any limitations, conditions, or restrictions to be placed on the investment committee with respect to the investment policy pertaining to the fund.
(5) Any other terms and conditions under which the fund shall be administered.
(6) Any other provisions not inconsistent with this division, including, without limitation, provisions for the expenditure and use of the properties held in or forming a part of such fund upon and after the termination or dissolution of such fund.
(b) The directors may also prescribe, in the authorizing resolution, the terms of office of members of the investment committee supervising such fund, subject, however, to Section 11-54-130.
*(Act 2000-730, p. 1569, §4.)*
##### **§ 11-54-129** Use of Assets {#sec-11-54-129 omnilex-key=us-al-statutes--title-11--11-54-129}
(a) Subject to succeeding provisions hereof with respect to the investment of moneys held in and forming a part of an endowment trust fund, and the management, use, and disposition of other properties, whether real or personal, tangible or intangible, contributed to such fund, all moneys held in and forming a part of an endowment trust fund, whether such moneys may be characterized as either principal or income of such fund, may be expended, and all other properties contributed to a trust fund may be used only to induce new business, manufacturing, industrial, commercial, service, and research enterprises, whether or not any such enterprise, or any property to be utilized in connection therewith, would constitute a “project” within the meaning of either industrial development board act, to locate within the statutory service area of the board that created such fund, and to foster activities and policies conducive to the continuing prosperity of such enterprises already existing within such area, all to the end that such board may thereby support (i) the establishment and promotion of business and industry, (ii) the development of trade and commerce, (iii) the furtherance of the use of the agricultural products and natural resources of the State of Alabama, and (iv) the development and preservation of such resources. Any expenditure permitted by the preceding provisions of this section to be made out of moneys on deposit in an endowment trust fund, and any such use of other properties contributed to any such fund, shall be deemed an expenditure or use, as the case may be, for a public purpose.
(b) Subject to subsection (a), and subject to any applicable terms and provisions of the authorizing resolution and any trust agreement with respect to an endowment trust fund created by a board, all moneys held in and forming a part of such fund may be expended and distributed, and any other properties contributed to such fund may be managed, used, and disposed of, for such purpose or purposes as the board shall from time to time generally determine, and in accordance with such procedures as may be set out in either the authorizing resolution or any trust agreement respecting such fund, and pursuant to either or both, any resolution adopted at any time by the directors, and subject to such procedures and the direction and approval of the board, one or more contracts between such board and any individual, organization, corporation, or other person, including, but not limited to, any trade organization.
Provided, however, that any such contract shall not contain any provisions inconsistent with any provisions of this division or of the authorizing resolution or any trust agreement respecting such fund; and provided further, that the initial term of any such contract between a board and a trade organization may not exceed 40 years, but such contract may thereafter be renewed or extended for such additional term or terms, not exceeding, in the aggregate, 40 years, as the board deems advisable.
*(Act 2000-730, p. 1569, §5.)*
##### **§ 11-54-130** Investment Committee {#sec-11-54-130 omnilex-key=us-al-statutes--title-11--11-54-130}
(a) There shall be, with respect to an endowment trust fund, one investment committee consisting of the following:
(1) Not less than two members of the directors, each of whom shall serve ex officio during his or her term of office as a member of the directors, and each of whom shall be elected by the directors.
(2) Not more than five additional persons, each of whom shall serve as a member of such investment committee for such term of office as shall be prescribed in the authorizing resolution, and shall be elected by the directors, either (i) from nominations made by any trade organization under contract to the board with respect to such fund, or (ii) if no such contract exists, from the membership of one or more trade organizations, or (iii) if no such trade organization exists, as the board deems advisable.
(b) The investment committee shall elect, from among its members, such officers as it shall deem necessary or desirable, and the respective duties and terms of office of such officers shall be such as are from time to time prescribed by such investment committee; provided, however, that no person may serve as an officer of the investment committee beyond the expiration of his or her term of office as a member of such investment committee. The investment committee may act by majority of its members. An investment committee may, if expressly so authorized by the board, act hereunder with respect to more than one endowment trust fund created by such board.
(c) The investment committee shall from time to time set, and may from time to time amend, modify, or alter, an investment policy with respect to each endowment trust fund supervised by it; provided, that such investment policy shall not be inconsistent with this division, the authorizing resolution, and the trust agreement under which such fund has been created or established. In addition to any other matters required or authorized by this division to be addressed therein, an investment policy may contain such provisions as the investment committee may deem advisable with respect to the purchase, sale, and disposition of investments by a fund manager with or without the prior approval, whether written or oral of such committee. The investment committee shall monitor the performance of investments of moneys held in and forming a part of such fund, compliance with the investment policy, and if and to the extent authorized by the directors to do so, the management, use, and disposition of any other properties, whether real or personal, tangible or intangible, contributed to the fund.
(d) The directors may authorize the investment committee or any fund manager, or any one or more of them, to provide for the management, use, and disposition of any properties, other than money, contributed to the fund, subject to such conditions or limitations as the directors deem advisable.
*(Act 2000-730, p. 1569, §6.)*
##### **§ 11-54-131** Investment of Moneys; Duties of Fund Manager {#sec-11-54-131 omnilex-key=us-al-statutes--title-11--11-54-131}
(a) Moneys held in and forming a part of an endowment trust fund, including, without limitation, proceeds of investments held in and forming a part of the fund, shall, to the extent practicable and feasible, be kept fully and continuously invested, pending their distribution and expenditure for the purposes authorized by this division, in any of the following:
(1) Interest-bearing bank time deposits and interest-bearing bank certificates of deposit.
(2) Debt securities that are direct general obligations of the United States of America or any agency thereof, and debt securities of any state or local government.
(3) Other debt securities, common and preferred stocks, shares of investment companies or mutual funds, or other like investments.
(b) All of the above as may be authorized in the trust agreement under which such fund has been established, and all with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims. All such investments in which any portion of the moneys in any endowment trust fund are invested, together with all income therefrom, shall become a part of such fund; and the net proceeds from any sale, assignment, transfer, or disposition of any such investment, including any income or other gain realized therefrom, shall be paid into and become a part of such fund.
(c) Each fund manager may, subject to the provisions of this division and subject to the general supervision and direction of the investment committee, invest, and reinvest moneys held in and forming a part of any endowment trust fund managed by it, or direct any trustee bank in the investment and reinvestment of such moneys. A fund manager:
(1) Shall review periodically the investment quality and desirability of retention of investments held in any fund managed by it.
(2) Shall make purchases and sales of investments deemed in the best interests of such fund.
(3) Shall report to the investment committee with respect to its activities, at such time or times as the investment committee may direct.
(4) Shall administer every contribution to such fund in accordance with every lawful condition, if any, that is specified by the donor thereof and that is not inconsistent with this division.
(d) No fund manager may either:
(1) Determine the persons to whom any moneys held in and forming a part of such endowment trust fund shall be distributed or the purpose or purposes for which they shall be expended, the persons for whom any other properties contributed to such fund may be managed or used, or the persons to whom such other properties may be disposed of; or
(2) Itself expend any such moneys or, unless authorized to do so by either the directors or the investment committee, manage, use, or dispose of any such other properties.
(e) Each fund manager shall, at such times as may be specified by the investment committee but in any event not less often than once every six months, report to the directors, to the investment committee, and to such other persons as the directors may require, all purchases and sales of investments forming a part of the endowment trust fund managed by it.
*(Act 2000-730, p. 1569, §7.)*
##### **§ 11-54-132** Trust Agreement {#sec-11-54-132 omnilex-key=us-al-statutes--title-11--11-54-132}
Each trust agreement shall obligate each trustee bank that is a party to the agreement to accept custody of contributions to the endowment trust fund created under the trust agreement, and the agreement shall obligate each trustee bank to administer the fund in accordance with the terms and provisions thereof and, if the trustee bank is also a fund manager with respect to the fund, to manage and invest the fund in accordance with such terms and provisions. Subject to the terms and provisions of any trust agreement, and subject to this division, each trustee bank may hold, purchase, sell, assign, transfer, and dispose of any investments held in any endowment trust fund, and it shall do so in accordance with any directions given to it by a fund manager for the fund, provided that the directions are themselves not inconsistent with this division or of any trust agreement.
*(Act 2000-730, p. 1569, §8.)*
##### **§ 11-54-133** Termination or Dissolution of Fund {#sec-11-54-133 omnilex-key=us-al-statutes--title-11--11-54-133}
Upon the termination or dissolution of an endowment trust fund, all properties held in and forming a part of such fund, whether real or personal, tangible or intangible, and whether characterized as principal or income of such fund, shall continue to be or shall become, as the case may be, the property of the industrial development board that created or established the fund; provided, that the board may, subject to any applicable conditions set out in either the authorizing resolution or the trust agreement pertaining to the fund, from time to time pay over, distribute, or convey, with or without consideration, to the municipality whose governing body authorized the incorporation of the board, all or any of the properties or any portion or portions thereof. After the termination or dissolution of the fund, all such properties may be expended or used, whether by the board or the municipality, for one or more of the purposes specified in Section 11-54-129, and for no other purpose, subject, however, to any applicable condition, limitation, or restriction under the Constitution of Alabama of 1901, as amended, including, without limitation, the provisions of Section 94; and any such expenditure or use for any such purpose shall be deemed for a public purpose.
*(Act 2000-730, p. 1569, §9.)*
##### **§ 11-54-134** Liability {#sec-11-54-134 omnilex-key=us-al-statutes--title-11--11-54-134}
No member of an investment committee shall in any way be personally liable for any liability, loss, or expense suffered by the endowment trust fund supervised and administered by the committee unless such liability, loss, or expense arises out of or results from the wilful misconduct or wrongdoing of such member.
*(Act 2000-730, p. 1569, §10.)*
##### **§ 11-54-135** Powers Cumulative {#sec-11-54-135 omnilex-key=us-al-statutes--title-11--11-54-135}
The powers conferred by this division shall be cumulative of and in addition to all powers heretofore conferred on industrial development boards by the industrial development board act.
*(Act 2000-730, p. 1569, §12.)*
#### **Division 4**
##### **§ 11-54-136** Additional Powers of Boards in Class 2 Municipalities {#sec-11-54-136 omnilex-key=us-al-statutes--title-11--11-54-136}
(a) For the purposes of this section, the following terms have the following meanings:
(1) AUTHORIZING MUNICIPALITY. A Class 2 municipality.
(2) DEVELOPMENT PROJECTS. Any interests in land, buildings, structures, facilities, or other improvements and any fixtures, machinery, equipment, furniture, or other property of any nature whatsoever used on, in, or in connection with any land, interest in land, building, structure, facility, or other improvement for the essential public purpose of the development of trade, commerce, industry, and employment opportunities in the corporate limits of the authorizing municipality for any industrial, commercial, business, office, parking, utility, residential, including, without limitation, homes, apartments, town houses, condominiums, hotels, and motels, or other use, provided that a majority of the members of the board determine, by a resolution duly adopted, that the development project and the use thereof would further the public purpose of this section. Any such resolution shall include findings that the primary purpose of the development project is to advance one or more public purposes of this section, including, without limitation: (i) the creation or retention of employment opportunities through the promotion of industry and development of trade; (ii) the expansion or diversification of the tax base; (iii) the elimination of blight or underutilized property; (iv) the provision of facilities that support industrial or economic development; or (v) the support of housing reasonably related to workforce needs or economic growth within the municipality.
(3) INDUSTRIAL DEVELOPMENT BOARD ACT. Both of the following:
a. Division 1 of this article.
b. This division.
(4) INDUSTRIAL DEVELOPMENT BOARD. Any public corporation now in existence or hereafter organized pursuant to the Industrial Development Board Act in a Class 2 municipality.
(b) The purpose of this division is to grant industrial development boards organized in a Class 2 municipality, whether existing or formed after June 1, 2026, in addition to those powers conferred on them, the power to issue and sell bonds and to acquire, construct, expand, improve, replace, equip, maintain, operate, lease, and dispose of development projects. This section shall be liberally construed to carry out its powers.
(c) In addition to any powers that are conferred on industrial development boards by the Industrial Development Board Act, each industrial development board within a Class 2 municipality shall have the following powers with respect to any development project:
(1) Any power that is conferred on industrial development boards by the Industrial Development Board Act.
(2) To finance, by loan, grant, lease, or otherwise, construct, erect, assemble, purchase, acquire, own, repair, remodel, renovate, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage development projects.
(3) To pay the cost of any development project from the proceeds of bonds, or any other funds of the board, or from any contributions or loans by the state or any municipality, county, or public agency, persons, or other entities, all of which the board may receive and accept and use.
(4) To loan the proceeds of any bonds issued by the board or other funds available to it to pay all or part of the cost of any development project and otherwise to further or carry out the public purpose of the board.
*(Act 2026-360, §1.)*
#### **Article 5** Acquisition, Etc., of Projects for Promotion of Hotel Services and Other Businesses Generally in Certain Municipalities
##### **§ 11-54-140** Definitions {#sec-11-54-140 omnilex-key=us-al-statutes--title-11--11-54-140}
Wherever used in this article, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective interpretations:
(1) MUNICIPALITY. Either, as the case may be, any Class 1, 2, 3, 4, 5, 6, 7, or 8 incorporated city in this state.
(2) PROJECT. Any land and any building or other improvement thereon, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by any commercial enterprise in furnishing hotel, excluding specifically public dormitories or student housing facilities for institutions of higher learning, including food or lodging or both, and the rental of ground floor space or other accommodations to others engaged in any business, trade, profession, occupation, or activity.
(3) GOVERNING BODY. The board or body in which the legislative powers of the municipality are vested.
(4) MORTGAGE. A mortgage or a mortgage and deed of trust.
*(Acts 1979, No. 79-722, p. 1277, §1; Acts 1980, No. 80-315, p. 434, §2; Acts 1983, 2nd Ex. Sess., No. 83-198, p. 369, §2.)*
##### **§ 11-54-141** Legislative Intent; Liberal Construction {#sec-11-54-141 omnilex-key=us-al-statutes--title-11--11-54-141}
It is the intent of the Legislature by the passage of this article to authorize municipalities to acquire, own, and lease projects for the purpose of promoting trade by inducing commercial enterprises to locate in this state. It is intended that each project be self-liquidating. It is not intended hereby to authorize any municipality itself to operate any commercial enterprise. This article shall be liberally construed in conformity with the said intent.
*(Acts 1979, No. 79-722, p. 1277, §2.)*
##### **§ 11-54-142** Additional Powers Conferred on Municipalities {#sec-11-54-142 omnilex-key=us-al-statutes--title-11--11-54-142}
In addition to any other powers which it may now have, each municipality shall have the following powers:
(1) To acquire, whether by construction, purchase, gift, or lease, one or more projects, which shall be located within this state and may be located within or without the municipality, or partially within or partially without the municipality, but which shall not be located more than 15 miles outside of the corporate limits of the municipality;
(2) To lease to others any or all of its projects for such rentals and upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of this article; and
(3) To issue revenue bonds for the purpose of defraying the cost of acquiring, by construction and purchase, or either, any project, and to secure the payment of such bonds, all as hereinafter provided. No municipality shall have the power to operate any project as a business or in any manner except as lessor thereof.
*(Acts 1979, No. 79-722, p. 1277, §3.)*
##### **§ 11-54-143** Bonds Issued to Finance Projects {#sec-11-54-143 omnilex-key=us-al-statutes--title-11--11-54-143}
All bonds issued by a municipality under authority of this article shall be limited obligations of the municipality the principal of and interest on which shall be payable solely out of the revenues derived from the leasing of the project to finance which the bonds are issued. Bonds and interest coupons issued under authority of this article shall never constitute an indebtedness of the municipality within the meaning of any state constitutional provision or statutory limitation, and shall never constitute nor give rise to a pecuniary liability of the municipality or a charge against its general credit or taxing powers, and such fact shall be plainly stated in the face of each such bond. Such bonds may be executed and delivered at any time and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times not exceeding 30 years from their date, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the governing body whereunder the bonds shall be authorized to be issued. The bonds issued hereunder shall be subject to the general provisions of law, presently existing or that may hereafter be enacted, respecting the execution and delivery of the bonds of a municipality and respecting the retaining of options of redemption in proceedings authorizing the issuance of municipal securities. Any bonds issued under the authority of this article may be sold at public or private sale in such manner and from time to time as may be determined by the governing body to be most advantageous, and the municipality may pay all expenses, premiums, and commissions which the governing body may deem necessary or advantageous in connection with the authorization, sale, and issuance thereof. All bonds issued under the authority of this article and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.
*(Acts 1979, No. 79-722, p. 1277, §4.)*
##### **§ 11-54-144** Security for Bonds {#sec-11-54-144 omnilex-key=us-al-statutes--title-11--11-54-144}
The principal of and interest on any bonds issued under the authority of this article shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived, and may be secured by a pledge of the lease of such project. The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the revenues from such project, and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the governing body shall deem advisable and as shall not be in conflict with the provisions of this article; provided, however, that in making any such agreements or provisions a municipality shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom, and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers. The proceedings authorizing any bonds hereunder and any mortgage securing such bonds may provide that, in the event of default in payments of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by proceedings in equity, and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
*(Acts 1979, No. 79-722, p. 1277, §5.)*
##### **§ 11-54-145** Requirements Respecting Leases {#sec-11-54-145 omnilex-key=us-al-statutes--title-11--11-54-145}
Prior to the leasing of any project, the governing body must determine and find the following: The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance such project; the amount necessary to be paid each year into any reserve funds which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto, the estimated cost of maintaining the project in good repair and keeping it properly insured. The determinations and findings of the governing body required to be made in the preceding sentence shall be set forth in the proceedings under which the proposed bonds are to be issued; and prior to the issuance of such bonds, the municipality shall lease the project to a lessee under an agreement conditioned upon completion of the project and providing for payment to the municipality of such rentals as, upon the basis of such determinations and findings, will be sufficient (1) to pay the principal of and interest on the bonds issued to finance the project, (2) to build up and maintain any reserves deemed by the governing body to be advisable in connection therewith, and (3) unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project, to pay the costs of maintaining the project in good repair and keeping it properly insured.
*(Acts 1979, No. 79-722, p. 1277, §6.)*
##### **§ 11-54-146** Refunding Bonds {#sec-11-54-146 omnilex-key=us-al-statutes--title-11--11-54-146}
Any bonds issued hereunder and at any time outstanding may at any time and from time to time be refunded by a municipality by the issuance of its refunding bonds in such amount as the governing body may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums and commissions necessary to be paid in connection therewith. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby, or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable, or if they are called for redemption, prior to the date on which they are by their terms subject to redemption. Any refunding bonds issued under the authority of this article shall be payable solely from the revenues out of which the bonds to be refunded thereby were payable, and shall be subject to the provisions contained in Section 11-54-143 and may be secured in accordance with the provisions of Section 11-54-144.
*(Acts 1979, No. 79-722, p. 1277, §7.)*
##### **§ 11-54-147** Use of Proceeds from Sale of Bonds; Cost of Acquiring Project {#sec-11-54-147 omnilex-key=us-al-statutes--title-11--11-54-147}
The proceeds from the sale of any bonds issued under authority of this article shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; and provided, further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds. The cost of acquiring any project shall be deemed to include the following: The actual cost of the construction of any part of a project which may be constructed, including architect’s and engineer’s fees; the purchase price of any part of a project that may be acquired by purchase; all expenses in connection with the authorization, sale, and issuance of the bonds to finance such acquisition; and the interest on such bonds for a reasonable time prior to construction, during construction, and for not exceeding six months after completion of construction.
*(Acts 1979, No. 79-722, p. 1277, §8.)*
##### **§ 11-54-148** No Contribution by Municipality {#sec-11-54-148 omnilex-key=us-al-statutes--title-11--11-54-148}
No municipality shall have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project, and shall not have the power to use land already owned by the municipality, or in which the municipality has an equity, for construction thereon of a project or any part thereof; provided, however, that municipal property which is not needed for public or municipal purposes may be sold for fair market value or leased for fair market rental for a project; such fair market values to be conclusively determined by the governing body of the municipality owning such property. The entire cost of acquiring any project must be paid out of the proceeds from the sale of bonds issued under the authority of this article; provided, however, that this provision shall not be construed to prevent a municipality from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project.
*(Acts 1979, No. 79-722, p. 1277, §9; Acts 1982, No. 82-440, p. 691; Acts 1983, 2nd Ex. Sess., No. 83-198, p. 369, §4.)*
##### **§ 11-54-149** Bonds Made Legal Investments {#sec-11-54-149 omnilex-key=us-al-statutes--title-11--11-54-149}
Bonds issued under the provisions of this article shall be legal investments for saving banks and insurance companies organized under the laws of the state.
*(Acts 1979, No. 79-722, p. 1277, §10.)*
##### **§ 11-54-150** Exemption from Taxation {#sec-11-54-150 omnilex-key=us-al-statutes--title-11--11-54-150}
The bonds authorized by this article and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions hereof, and all projects and the revenue derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
*(Acts 1979, No. 79-722, p. 1277, §11.)*
##### **§ 11-54-151** Construction of Article {#sec-11-54-151 omnilex-key=us-al-statutes--title-11--11-54-151}
Neither this article nor anything herein contained shall be construed as a restriction or limitation upon any powers which a municipality might otherwise have under any laws of this state, but shall be construed as cumulative; and this article shall not be construed as requiring an election by the voters of a municipality prior to the issuance of bonds hereunder by such municipality.
*(Acts 1979, No. 79-722, p. 1277, §12.)*
##### **§ 11-54-152** No Notice or Publication Required {#sec-11-54-152 omnilex-key=us-al-statutes--title-11--11-54-152}
No notice to or consent or approval by any governmental body or public officer shall be required by a prerequisite to the sale or issuance of any bonds or the making of a mortgage under the authority of this article.
*(Acts 1979, No. 79-722, p. 1277, §13.)*
##### **§ 11-54-153** Exemption from Requirements of Sections 41-16-50 through 41-16-63 {#sec-11-54-153 omnilex-key=us-al-statutes--title-11--11-54-153}
Any municipality when acting pursuant to the authority of this article, and all contracts entered into incident to any project acquired, constructed, or financed under this article shall be exempt from the provisions and requirements of Sections 41-16-50 through 41-16-63 which provide for competitive bids in connection with certain contracts.
*(Acts 1983, 2nd Ex. Sess., No. 83-198, p. 369, §3.)*
#### **Article 6** Commercial Development Authorities
##### **§ 11-54-170** Legislative Intent; Liberal Construction {#sec-11-54-170 omnilex-key=us-al-statutes--title-11--11-54-170}
It is the intent of the Legislature by the passage of this article to authorize the incorporation in any municipality of commercial development authorities to acquire, own, and lease projects for the purpose of promoting trade and commerce by inducing commercial enterprises to locate new facilities in any municipality and expand existing facilities in any municipality. It is intended that each project be self-liquidating. It is not the intent of the Legislature to authorize any authority itself to operate any commercial enterprise. This article shall be liberally construed in conformity with the intent.
*(Acts 1980, No. 80-648, p. 1235, §1; Acts 1981, No. 81-729, p. 1251, §2; Acts 1994, No. 94-323, §1.)*
##### **§ 11-54-171** Definitions {#sec-11-54-171 omnilex-key=us-al-statutes--title-11--11-54-171}
The following words and phrases used in this article, in the absence of clear implication otherwise, shall be given the following interpretations:
(1) APPLICANT. A person who files a written application with the governing body of any municipality in accordance with Section 11-54-173.
(2) AUTHORITY. A public corporation organized pursuant to this article.
(3) AUTHORIZING MUNICIPALITY. Any municipality the governing body of which shall have adopted an authorizing resolution.
(4) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of any municipality in accordance with Section 11-54-173, that authorizes the incorporation of an authority.
(5) BOARD. The board of directors of an authority.
(6) BONDS. Includes bonds, notes, and certificates representing an obligation to pay money.
(7) COUNTY. Any county in the state.
(8) DIRECTOR. A member of the board of an authority.
(9) GOVERNING BODY. With respect to a municipality, its city or town council, board of commissioners, or other like governing body.
(10) INCORPORATORS. The persons forming a public corporation organized pursuant to this article.
(11) MUNICIPALITY. Any incorporated city or town of the state.
(12) PERSON. Unless limited to a natural person by the context in which it is used, includes a public or private corporation, limited liability company or partnership, a municipality or county, or an agency, department, or instrumentality of the state or of a county or municipality.
(13) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of the proceedings of the board of an authority are kept.
(14) POLLUTION. Any of the following:
a. The placing, whether by emission, discharge, leakage, or other means, of any noxious or deleterious noise or substance into any air or water of, in, or adjacent to the State of Alabama.
b. The contaminating of air and water.
c. The affecting of any air or water so as to render or be likely to render the air or water, or the use of either for domestic, industrial, agricultural, or recreational purposes, hazardous, inimical, or harmful to the health, safety, or welfare of human beings, animals, birds, aquatic creatures, or any of them, or to the existence or growth of vegetation.
(15) POLLUTION CONTROL FACILITY. Any land, building, structure, machinery, or equipment having to do with or designed for or the end purpose of which is the control, reduction, abatement, or prevention of air, noise, water, or general environmental pollution, including, but not limited to, the following: Any air pollution control facility, noise abatement or reduction facility, water management facility, water purification facility, waste water collecting system, waste water treatment works, or solid waste disposal facility.
(16) PROJECT.
a. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more of the following:
1. Any commercial enterprise engaged in the manufacturing, processing, assembling, storing, warehousing, distributing, or selling of any products of agriculture, mining, or industry.
2. Any enterprise for the purpose of research in connection with:
(i) Any of the foregoing.
(ii) The development of new products or new processes.
(iii) The improvement of existing products or known processes.
(iv) The development of facilities for the exploration of outer space or promotion of the national defense.
3. Any commercial enterprise engaged in selling, servicing, providing, or handling any policies of insurance or any financial services.
b. Any land and any building or other improvement thereon and all real and personal property deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use as all or any part of the following:
1. A ship canal, port or port facility, off-street parking facility, dock or dock facility, harbor facility, railroad, monorail or tramway, railway terminal or railway belt line and switch.
2. An office building or buildings.
3. A planetarium or museum.
4. A pollution control facility.
5. A hotel, including parking facilities, facilities for meetings, and facilities suitable for rental to persons engaged in any business, trade, profession, occupation, or activity.
6. A shopping center or similar facility suitable for use by two or more commercial enterprises engaged in any business, trade, profession, occupation, or activity, provided, that a project shall not include facilities, other than office buildings or other buildings suitable for use as corporate headquarters, designed for the sale or distribution to the public of electricity, gas, water, or telephone, or other services commonly classified as public utilities.
7. A single commercial enterprise engaged in any business, trade, profession, occupation, or activity including, but not limited to, retail, restaurant, professional office, or other commercial enterprises deemed beneficial for job creation, workforce development, financial investment, and other beneficial purposes identified in the redevelopment plan of the authority.
(17) STATE. The State of Alabama.
*(Acts 1980, No. 80-648, p. 1235, §2; Acts 1981, No. 81-729, p. 1251, §3; Acts 1994, No. 94-323, §1; Act 2012-538, p. 1599, §1; Act 2024-99, §1.)*
##### **§ 11-54-172** Meaning of “Herein,” Etc.; Construction of Definitions {#sec-11-54-172 omnilex-key=us-al-statutes--title-11--11-54-172}
The following provisions shall be applied wherever appropriate herein:
(1) “Herein,” “hereby,” “hereunder,” “hereof,” and other equivalent words refer to this article as an entirety and not solely to the particular section or portion thereof in which any such word is used.
(2) The definitions set forth in Section 11-54-171 shall be deemed to include both singular and plural and to cover all genders.
*(Acts 1980, No. 80-648, p. 1235, §3.)*
##### **§ 11-54-173** Filing of Application; Contents; Authorization or Denial of Incorporation by Governing Body of Authorizing Municipality {#sec-11-54-173 omnilex-key=us-al-statutes--title-11--11-54-173}
(a) A public corporation may be organized pursuant to the provisions of this article in any municipality. In order to incorporate such a public corporation, any number of persons shall first file a written application with the governing body of such municipality, which application shall:
(1) Contain a statement that the applicants propose to incorporate an authority pursuant to the provisions of this article.
(2) State the proposed location of the principal office of the authority, which shall be within the corporate limits of the municipality with whose governing body such application is filed.
(3) Request that the governing body of such municipality adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-54-174.
(b) Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application with it in accordance with the provisions of this section, the governing body of the municipality with which the application was filed shall review the contents of the application, and shall adopt a resolution either (i) denying the application or (ii) declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-54-174. The governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon the application is taken.
*(Acts 1980, No. 80-648, p. 1235, §4; Act 2012-538, p. 1599, §1.)*
##### **§ 11-54-174** Procedure to Incorporate; Contents and Execution of Certificate of Incorporation; Filing {#sec-11-54-174 omnilex-key=us-al-statutes--title-11--11-54-174}
Within 40 days following the adoption of an authorizing resolution the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the county or one of the counties in which the authorizing municipality is located a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided.
The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority.
(2) The name of the authority (which shall be “The Commercial Development Authority of the City of _____,” with the insertion of the name of the authorizing municipality, unless the Secretary of State shall determine that such name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case the incorporators may insert additional identifying words so as to eliminate the duplication or similarity).
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-54-189, that fact shall be stated).
(4) The name of the authorizing municipality together with the date on which the governing body thereof adopted the authorizing resolution.
(5) The location of the principal office of the authority, which shall be within the corporate limits of the authorizing municipality.
(6) That the authority is organized pursuant to the provisions of this article.
(7) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this article or with the laws of the state.
The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (i) a copy of the application as filed with the governing body of the authorizing municipality in accordance with the provisions of Section 11-54-173, (ii) a certified copy of the authorizing resolution adopted by the governing body of the authorizing municipality, and (iii) a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. Upon the filing for record of the certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1980, No. 80-648, p. 1235, §5; Act 2012-538, p. 1599, §1.)*
##### **§ 11-54-175** Amendments to Certificate of Incorporation; Filing of Application; Approval or Denial by Governing Body; Filing and Recordation {#sec-11-54-175 omnilex-key=us-al-statutes--title-11--11-54-175}
The certificate of incorporation of any authority incorporated under the provisions of this article may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chairman of the board and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the authorizing municipality, requesting such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of the authorizing municipality pursuant to the foregoing provisions of this section, that governing body shall review the said application and shall adopt a resolution either denying the said application or authorizing the proposed amendment. Such governing body shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon the said application is taken.
Within 40 days following the adoption by the governing body of the authorizing municipality of a resolution approving the proposed amendment the chairman of the board of the authority and the secretary of the authority shall sign, and file for record in the office of the judge of probate with which the certificate of incorporation of the authority was originally filed a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of said respective resolutions by the board and by the said governing body and setting forth the said proposed amendment. The judge of probate for such county shall thereupon record such certificate in an appropriate book in his office. When such certificate has been so filed and recorded, such amendment shall become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of an authority shall be amended except in the manner provided in this section.
*(Acts 1980, No. 80-648, p. 1235, §6.)*
##### **§ 11-54-176** Board of Directors; Composition; Election; Terms; Vacancies; Qualifications; Expenses; Removal {#sec-11-54-176 omnilex-key=us-al-statutes--title-11--11-54-176}
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. The board shall consist of five directors who shall be elected by the governing body of the authorizing municipality for staggered terms as hereinafter provided. The governing body of the authorizing municipality shall specify for which term each director is elected. The initial terms of office of two such directors shall begin immediately upon their respective elections and shall end at 12:01 o’clock, A.M., on March 15 of the first succeeding odd-numbered calendar year following their election. The initial terms of office of three such directors shall begin immediately upon their respective elections and shall end at 12:01 o’clock, A.M., March 15 of the second succeeding odd-numbered calendar year following their election. Thereafter, the term of office of each such director shall be four years. If at the expiration of any term of office of any director, a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by the governing body of the authorizing municipality. No officer of the state or of any county or municipality shall, during his tenure as such officer, be eligible to serve as a director. Each director must be a duly qualified elector of the authorizing municipality. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him in and about the performance of his duties. Any director of the authority may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama and the general laws of the state for impeachment and removal of the officers mentioned in Section 175.
*(Acts 1980, No. 80-648, p. 1235, §7.)*
##### **§ 11-54-177** Officers of the Authority {#sec-11-54-177 omnilex-key=us-al-statutes--title-11--11-54-177}
The officers of an authority shall consist of a chairman, vice chairman, secretary, treasurer, and such other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may, but need not, be held by the same person. The chairman and vice chairman of an authority shall be elected by the board from the membership thereof; the secretary, the treasurer, and any other officers of the authority may, but need not, be members of the board and shall also be elected by the board. The chairman, vice chairman, secretary and treasurer of the authority shall also be the chairman, vice chairman, secretary and treasurer of the board, respectively.
*(Acts 1980, No. 80-648, p. 1235, §8.)*
##### **§ 11-54-178** Powers of Authority; Location of Projects; Public Meetings {#sec-11-54-178 omnilex-key=us-al-statutes--title-11--11-54-178}
(a) An authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be perpetuity, subject to the provisions of Section 11-54-189) specified in its certificate of incorporation.
(2) To sue and be sued in its own name and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties.
(3) To adopt and make use of a corporate seal and to alter the same at pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise and to refinance existing indebtedness on, improve, maintain, equip, and furnish one or more projects, including all real and personal properties which the board of the authority may deem necessary in connection therewith, regardless of whether or not any such projects shall then be in existence.
(6) To lease to others any or all of its projects and to charge and collect rent therefor, and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof.
(7) To sell, purchase, exchange, donate, or convey and to grant options to any lessee to acquire any of its projects and any or all of its properties whenever its board shall find any such action to be in furtherance of the purposes for which the authority was organized.
(8) To issue its bonds for the purpose of carrying out any of its powers.
(9) To mortgage and pledge any or all of its projects or any part or parts thereof, as security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof.
(10) To execute and deliver, in accordance with the provisions of this section and Section 11-54-179, mortgages and deeds of trust and trust indentures, or either.
(11) To appoint, employ, contract with, and provide for the compensation of, such officers, employees, and agents, including but without limitation to engineers, attorneys, management consultants, and fiscal advisers, as the board shall deem necessary for the conduct of the business of the authority.
(12) To provide for such insurance as the board may deem advisable.
(13) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted hereunder.
(14) To require payments in lieu of taxes to be made by the lessee of the project to either the authority or the municipality.
(b) All projects of an authority shall be located wholly or partly within the corporate limits of its authorizing municipality and (1) shall be wholly within areas for which either a redevelopment plan has been prepared and approved pursuant to the provisions of Section 24-2-4, as the section may at any time exist, or an urban renewal plan has been prepared and approved pursuant to the provisions of Section 24-3-3 as the section may at any time exist, or (2) shall include as a part of the project facilities with respect to which an urban development action grant has been made under Section 119 of the Housing and Community Development Act of 1974, as the section may at any time exist.
(c) All meetings of the board of an authority for any purpose shall be open to the public.
*(Acts 1980, No. 80-648, p. 1235, §9; Act 2012-538, p. 1599, §1.)*
##### **§ 11-54-179** Bonds of Authority Generally {#sec-11-54-179 omnilex-key=us-al-statutes--title-11--11-54-179}
(a) Source of payment. All bonds issued by an authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the board of its projects or of any thereof as may be designated in the proceedings of the board under which the bonds shall be authorized to be issued.
(b) Pledge of revenues, receipts and other security. The principal of and interest on any bonds issued by an authority shall be secured by a pledge of the revenues and receipts out of which the same may be payable and may be secured by a mortgage and deed of trust or trust indenture conveying as security for such bonds all or any part of the property of the authority from which the revenues or receipts so pledged may be derived.
The resolution under which the bonds are authorized to be issued and any such mortgage and deed of trust or trust indenture may contain any agreements and provisions respecting the operation, maintenance and insurance of the property covered by said mortgage and deed of trust or trust indenture, the use of the revenues and receipts subject to such mortgage and deed of trust or trust indenture, the creation and maintenance of special funds from such revenues and receipts, the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made and the rights and remedies available in the event of default as the board shall deem advisable and which are not in conflict with the provisions of this article. Each pledge, agreement, mortgage and deed of trust or trust indenture made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
In the event of default in such payment or in any agreements of the authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust or trust indenture executed as security therefore, such default may be enforced by mandamus, the appointment of a receiver, or either of said remedies, and foreclosure of such mortgage and deed of trust or trust indenture may, if provided for in said instrument, be had.
(c) Execution. All bonds issued by an authority shall be signed by the chairman of its board and attested by its secretary, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman of its board; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chairman of the board may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
(d) General provisions respecting form, interest rate, maturities, sale and negotiability of bonds. Any such bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this article, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the authority may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The authority may pay all expenses, premiums and commissions in connection with any financing done by it. All bonds, except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source.
(e) Nature of obligation and source of payment. All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state or of any county or municipality; provided that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority. Any bonds issued by the authority shall be limited or special obligations of the authority payable solely out of the revenues and receipts of the authority specified in the proceedings authorizing those bonds.
(f) Eligibility for investment. Bonds of an authority are hereby made legal investments for executors, administrators, trustees and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority, and for savings banks and insurance companies organized under the laws of the state.
*(Acts 1980, No. 80-648, p. 1235, §10.)*
##### **§ 11-54-180** Proceeds from Sale of Bonds {#sec-11-54-180 omnilex-key=us-al-statutes--title-11--11-54-180}
All moneys derived from the sale of any bonds issued by an authority shall be used solely for the purpose or purposes for which the same are authorized, including, but without limitation to, the use of bond proceeds to establish reserve funds as security for the payment of the principal of (and premium, if any) and interest on the bonds, and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to the fiscal, engineering, legal and other expenses incurred in connection with the issuance of the bonds, and except in the case of refunding bonds, interest to accrue on such bonds for a period ending not later than two years from their date.
*(Acts 1980, No. 80-648, p. 1235, §11.)*
##### **§ 11-54-181** Refunding Bonds {#sec-11-54-181 omnilex-key=us-al-statutes--title-11--11-54-181}
Any bonds issued by an authority may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different sources for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any such bonds that are to be so redeemed in connection with such refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with refunding; provided, that unless duly called for redemption pursuant to provisions contained therein, the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding. Any refunding bonds may be sold by the authority at public or private sale at such price or prices as may be determined by its board to be most advantageous, or may be exchanged for the bonds or other obligations to be refunded. Any such refunding bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and have such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this article, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board.
Any refunding bonds issued by an authority shall be issued and may be secured in accordance with the provisions of Section 11-54-179.
*(Acts 1980, No. 80-648, p. 1235, §12.)*
##### **§ 11-54-182** Notice of Bond Resolution; Limitation on Proceedings Questioning or Attacking Bonds {#sec-11-54-182 omnilex-key=us-al-statutes--title-11--11-54-182}
Upon the adoption by the board of any authority of any resolution providing for the issuance of bonds, such authority may, in its discretion, cause to be published once a week for two consecutive weeks, in a newspaper published or having a general circulation in the authorizing municipality, a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of such authority:
A newspaper shall be deemed to be published in the authorizing municipality, within the meaning of this section, if its principal editorial office is located in the authorizing municipality.
Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of any such bonds, or the validity of any pledge and mortgage and deed of trust or trust indenture made therefor, must be commenced within 30 days after the first publication of such notice. After the expiration of the said period no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds or the said pledge or mortgage and deed of trust or trust indenture shall be asserted, nor shall the validity of the said proceedings, bonds, pledge, mortgage, and deed of trust or trust indenture be open to question in any court on any ground whatsoever except in an action commenced within such period.
*(Acts 1980, No. 80-648, p. 1235, §13.)*
##### **§ 11-54-183** Exemption from Certain Taxes and Fees {#sec-11-54-183 omnilex-key=us-al-statutes--title-11--11-54-183}
The income of any authority, all bonds issued by an authority and the interest paid on any such bonds, all conveyances by or to an authority, and all leases, mortgages, and deeds of trust by or to an authority shall be exempt from all taxation in the State of Alabama. Any authority shall also be exempt from all license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document. Nothing contained in this section shall be construed to exempt the property of an authority from any ad valorem taxes imposed by the state or any county, municipality, or other political subdivision, or to exempt an authority from any privilege or license taxes levied by the state or any county, municipality or other political subdivision with respect to tangible personal property purchased or used by an authority.
*(Acts 1980, No. 80-648, p. 1235, §14.)*
##### **§ 11-54-184** Nonliability of Authorizing Municipality {#sec-11-54-184 omnilex-key=us-al-statutes--title-11--11-54-184}
The authorizing municipality shall not in any event be liable for the payment of the principal of or interest on any bonds of an authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by an authority, and none of the bonds of an authority or any of its agreements or obligations shall be construed to constitute an indebtedness of the authorizing municipality within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1980, No. 80-648, p. 1235, §15.)*
##### **§ 11-54-185** Exemption from Usury and Interest Laws {#sec-11-54-185 omnilex-key=us-al-statutes--title-11--11-54-185}
Each authority shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8.
*(Acts 1980, No. 80-648, p. 1235, §16.)*
##### **§ 11-54-186** Exemption from Competitive Bid Laws {#sec-11-54-186 omnilex-key=us-al-statutes--title-11--11-54-186}
Any authority and all contracts made by it shall be exempt from the laws of the State of Alabama requiring competitive bids for any contract to be entered into by municipalities or public corporations authorized by them, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1980, No. 80-648, p. 1235, §17.)*
##### **§ 11-54-187** Freedom of Authority from State Supervision and Control {#sec-11-54-187 omnilex-key=us-al-statutes--title-11--11-54-187}
This article is intended to aid the state through the furtherance of the purposes of the article by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions. Except as expressly provided in this article, no proceeding, notice, or approval shall be required for the incorporation of any authority or the amendment of its certificate of incorporation, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture, or the exercise of any other of its powers by an authority. Neither a public hearing nor the consent of the State Department of Finance shall be prerequisite to the issuance of bonds by an authority.
*(Acts 1980, No. 80-648, p. 1235, §18.)*
##### **§ 11-54-188** Earnings of an Authority {#sec-11-54-188 omnilex-key=us-al-statutes--title-11--11-54-188}
An authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of an authority, then any net earnings of an authority thereafter accruing shall be paid to its authorizing municipality.
*(Acts 1980, No. 80-648, p. 1235, §19.)*
##### **§ 11-54-189** Dissolution of Authority and Vesting of Title to Property in Authorizing Municipality {#sec-11-54-189 omnilex-key=us-al-statutes--title-11--11-54-189}
At any time when an authority has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the judge of probate of the county with which the authority’s certificate of incorporation is filed, the authority shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to the authorizing municipality.
*(Acts 1980, No. 80-648, p. 1235, §20.)*
##### **§ 11-54-190** Incorporation of Another Authority by Same Municipality {#sec-11-54-190 omnilex-key=us-al-statutes--title-11--11-54-190}
The existence of an authority incorporated under the provisions of this article shall prevent the subsequent incorporation hereunder of another authority pursuant to authority granted by the same municipality. Notwithstanding this section, an authority whose membership solely includes county or municipal governments, county or municipal boards of education, or any of their respective boards, agencies, departments, corporations, or instrumentalities, including other commercial development authorities, may be incorporated at any time, regardless of whether another authority exists within the jurisdiction at issue.
*(Acts 1980, No. 80-648, p. 1235, §21; Act 2012-538, p. 1599, §1.)*
##### **§ 11-54-191** Continued Existence of Authority Notwithstanding Reclassification of Municipalities {#sec-11-54-191 omnilex-key=us-al-statutes--title-11--11-54-191}
Any authority created hereunder shall continue in existence and shall have all powers conferred upon an authority organized pursuant to this article notwithstanding the fact that due to a reclassification of municipalities by the Legislature, the municipality which authorized the creation of such authority is no longer classified as a Class 1 municipality.
*(Acts 1980, No. 80-648, p. 1235, §22.)*
##### **§ 11-54-192** Provisions of Article Cumulative {#sec-11-54-192 omnilex-key=us-al-statutes--title-11--11-54-192}
The provisions of this article are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with provisions of this article.
*(Acts 1980, No. 80-648, p. 1235, §23.)*
#### **Article 7** Donation of Property to United States for Defense Purposes
##### **§ 11-54-210** Legislative Findings and Declarations {#sec-11-54-210 omnilex-key=us-al-statutes--title-11--11-54-210}
The Legislature hereby finds and declares as follows:
(1) The location of defense facilities of the United States of America within the State of Alabama provides a substantial benefit to the economy of the State of Alabama;
(2) The Legislature deems it necessary and desirable that each municipality in this state have the powers with respect to donation of land to the United States of America that are set forth herein.
*(Acts 1987, No. 87-555, p. 860, §1.)*
##### **§ 11-54-211** Authority of Municipalities to Acquire Real Property for Donation to United States for Defense Purposes; Issuance of Bonds, Etc., to Fund Purchase; Conveyance to “Related Public Corporation.” {#sec-11-54-211 omnilex-key=us-al-statutes--title-11--11-54-211}
Each municipality in this state is hereby authorized (a) to acquire any real property located within the corporate limits of any such municipality or within 25 miles thereof, and (b) to donate said real property so acquired or any real property heretofore acquired by any such municipality to the United States of America for use by the said United States for national defense and related purposes. Each such municipality is hereby authorized to issue its bonds, warrants, or other securities for the purpose of providing funds to purchase said real property for donation to the United States of America. Each such municipality is hereby further authorized to convey any such real property to a “related public corporation” pursuant to the provisions of Chapter 63 of Title 11 for the purpose of enabling such corporation to donate the land to the United States of America.
*(Acts 1987, No. 87-555, p. 860, §2.)*
### **Chapter 54A** Downtown Redevelopment Authorities
##### **§ 11-54A-1** Legislative Intent {#sec-11-54a-1 omnilex-key=us-al-statutes--title-11--11-54A-1}
The revitalization and redevelopment of any business district of any city in Alabama develops and promotes for the public good and general welfare trade, commerce, industry, and employment opportunities and promotes the general welfare of the city and state by creating a climate favorable to the location of new industry, trade, and commerce. Revitalization and redevelopment of a business district by financing projects under the chapter will develop and promote for the public good and general welfare trade, commerce, industry, and employment opportunities and will promote the general welfare of the city and state. It is therefore in the public interest and is vital to the public welfare of the people of Alabama, and it is hereby declared to be the public purpose of this chapter, to so revitalize and redevelop any business district of any city in the state.
*(Acts 1985, No. 85-683, §1; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-2** Definitions {#sec-11-54a-2 omnilex-key=us-al-statutes--title-11--11-54A-2}
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, in the absence of clear implication herein otherwise, shall be given the following respective interpretations herein:
(1) APPLICANT. A natural person who files a written application with the governing body of any city in accordance with Section 11-54A-4.
(2) AUTHORITY. Any redevelopment authority organized pursuant to this chapter.
(3) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of any city in accordance with Section 11-54A-4, that authorizes the corporation of the authority.
(4) BOARD. The board of directors of the authority.
(5) BONDS. Shall include bonds, notes, and certificates representing an obligation to pay money.
(6) CITY. Any incorporated city or town in the State of Alabama with respect to which a redevelopment authority may be organized.
(7) DIRECTOR. A member of the board of the authority.
(8) DEVELOPMENT AREA. Any business district of the city which is not more than three miles from the central business district and shall include areas used predominantly for business and commercial purposes.
(9) GOVERNING BODY. With respect to any city, its city council, board of commissioners, or other like governing body.
(10) INCORPORATORS. The persons forming a public corporation organized pursuant to this chapter.
(11) PERSON. Unless limited to a natural person by the context in which it is used, includes a public or private corporation, a municipality, a county, or an agency, department, or instrumentality of the state, or of a county or municipality.
(12) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of the proceedings of the board of the authority are kept.
(13) PROJECT. Interests in land, buildings, structures, facilities, or other improvements located or to be located within the development area, and any fixtures, machinery, equipment, furniture, or other property of any nature whatsoever used on, in, or in connection with any such land, interest in land, building, structure, facility, or other improvement, all for the essential public purpose of the development of trade, commerce, industry, and employment opportunities in the development area. A project in the downtown central business district of a municipality may be for any industrial, commercial, business, office, parking, utility, residential (including without limitation homes, apartments, town houses, condominiums, hotels, and motels), or other use, provided that a majority of the members of the authority determine, by a resolution duly adopted, that the project and the use thereof would further the public purpose of this chapter. A project outside of the downtown central business district of a municipality may be for any industrial, commercial, business, office, parking, utility, or other nonresidential use, provided that a majority of the members of the authority determine, by a resolution duly adopted, that the project and the use thereof would further the public purpose of this chapter.
(14) STATE. The State of Alabama.
*(Acts 1985, No. 85-683, §2; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-3** Use of Phrases {#sec-11-54a-3 omnilex-key=us-al-statutes--title-11--11-54A-3}
The following provisions shall be applied wherever appropriate herein:
“Herein,” “hereby,” “hereunder,” “hereof,” and other equivalent words refer to this chapter as an entirety and not solely to the particular section or portion thereof in which any such word is used.
The definitions set forth in Section 11-54A-2 hereof shall be deemed to include both singular and plural and to cover all genders.
*(Acts 1985, No. 85-683, §3.)*
##### **§ 11-54A-4** Filing of Application; Authorization of Incorporation by Governing Body of City {#sec-11-54a-4 omnilex-key=us-al-statutes--title-11--11-54A-4}
An authority may be organized pursuant to the provisions of this chapter. In order to incorporate such a public corporation, any number of natural persons, not less than three, who are duly qualified electors of the city, shall first file a written application with the governing body of the city, which application shall:
(1) Contain a statement that the applicants propose to incorporate the authority pursuant to the provisions of this chapter;
(2) State the proposed location of the principal office of the authority, which shall be within the corporate limits of the city; and
(3) State that each of the applicants is a duly qualified elector of the city; and
(4) Request that the governing body of the city adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-54A-5 hereof.
Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application with it in accordance with the provisions of this section, the governing body of the city shall review the contents of the application, and shall adopt a resolution either (1) denying the application or (2) declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by filing for record of a certificate of incorporation in accordance with the provisions of Section 11-54A-5. The governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1985, No. 85-683, §4.)*
##### **§ 11-54A-5** Procedure to Incorporate; Contents and Execution of Certificate of Incorporation {#sec-11-54a-5 omnilex-key=us-al-statutes--title-11--11-54A-5}
Within 40 days following the adoption of the authorizing resolution, the applicants shall proceed to incorporate the authority by filing for record in the office of the judge of probate of the county wherein the city is located a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided.
The certificate of incorporation of the authority shall state all of the following:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector of the city.
(2) The name of the authority, which shall include the name of the city in its title as follows:
The _______ Redevelopment Authority.
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-54A-20 hereof, that fact shall be stated).
(4) The name of the city together with the date on which the governing body thereof adopted the authorizing resolution.
(5) The location of the principal office of the authority, which shall be within the corporate limits of the city.
(6) That the authority is organized pursuant to the provisions of this chapter.
(7) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (1) a copy of the application as filed with the governing body of the city in accordance with Section 11-54A-4, and (2) a certified copy of the authorizing resolution adopted by the governing body of the city. Upon the filing for record of the certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation. The judge of probate shall thereupon send notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1985, No. 85-683, §5; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-6** Amendments to Certificate of Incorporation; Procedure {#sec-11-54a-6 omnilex-key=us-al-statutes--title-11--11-54A-6}
The certificate of incorporation of the authority incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chairman of the board and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the city, requesting such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of the city pursuant to the foregoing provisions of this section, that governing body shall review the said application and shall adopt a resolution either denying the said application or authorizing the proposed amendment. Such governing body shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon the said application is taken.
Within 40 days following the adoption by the governing body of the city of a resolution approving the proposed amendment the chairman of the board of the authority and the secretary of the authority shall sign, and file for record in the office of the judge of probate of the county of incorporation a certificate in the name of and in behalf of the authority under its seal reciting the adoption of said respective resolutions by the board and by the said governing body and setting forth the said proposed amendment. The judge of probate for such county shall thereupon record such certificate in an appropriate book in his office. When such certificate has been so filed and recorded, such amendment shall become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of the authority shall be amended except in the manner provided in this section.
*(Acts 1985, No. 85-683, §6.)*
##### **§ 11-54A-7** Board of Directors; Election, Terms, Eligibility, Etc {#sec-11-54a-7 omnilex-key=us-al-statutes--title-11--11-54A-7}
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. The board shall consist of any number of directors, not less than three, who shall be elected by the governing body of the city for staggered terms as hereinafter provided. At the time of the election of the first board, the governing body of the city shall divide the directors into three groups containing as nearly equal whole numbers as may be possible. The governing body of the city shall specify for which term each director is elected. The initial term of office of the first group shall be two years each. The initial terms of office of the second group shall be four years each. The initial term of office of the third group shall be six years. Thereafter, the term of office of each such director shall be six years. If at the expiration of any term of office of any director, a successor thereto has not been elected, the director whose term of office has expired shall continue to hold office until his or her successor is elected. If at any time there is a vacancy on the board, a successor director to serve for the unexpired term applicable to the vacancy shall be elected by the governing body of the city. Each director must be a duly qualified elector of the city or own property within the redevelopment district as defined by the city; provided, that at least 75 percent of the members of the board must be duly qualified electors of the city. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him or her in and about the performance of his or her duties. Any director of the authority may be impeached and removed from office in the same manner and on the same grounds provided in 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.
*(Acts 1985, No. 85-683, p. 1080, §7; Acts 1987, No. 87-345, p. 508; Act 2023-310, §1.)*
##### **§ 11-54A-8** Officers of Authority {#sec-11-54a-8 omnilex-key=us-al-statutes--title-11--11-54A-8}
The officers of the authority shall consist of a chairman, vice chairman, secretary, treasurer, and such other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may, but need not, be held by the same person. The chairman and vice chairman of the authority shall be elected by the board from the membership thereof; the secretary, the treasurer, and any other officers of the authority may, but need not, be members of the board and shall also be elected by the board. The chairman, vice chairman, secretary, and treasurer of the authority shall also be the chairman, vice chairman, secretary, and treasurer of the board, respectively.
Prior to receipt by the authority of any tax revenues from the city, any county, state, or federal governments, the treasurer of the authority shall provide evidence to the governmental entity from which the funds are to be received of procurement of a fidelity bond in an amount equal to or greater than the amount of tax funds to be received and that the company issuing the bond is qualified to issue fidelity bonds in the State of Alabama.
*(Acts 1985, No. 85-683, §8.)*
##### **§ 11-54A-9** Powers of Authority; All Projects to Be in Development Area {#sec-11-54a-9 omnilex-key=us-al-statutes--title-11--11-54A-9}
(a) The authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time, which may be perpetuity, subject to Section 11-54A-20, specified in its certificate of incorporation.
(2) To sue and be sued in its own name and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties.
(3) To adopt and make use of a corporate seal and to alter the same at pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise and to refinance existing indebtedness on, improve, maintain, equip, and furnish one or more projects, including all real and personal properties which the board of the authority may deem necessary in connection therewith, regardless of whether or not any such projects shall then be in existence.
(6) To lease to others any or all of its projects and to charge and collect rent therefor, and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof.
(7) To sell, exchange, donate, or convey and to grant options to any lessee to acquire any of its projects and any or all of its properties whenever its board shall find any such action to be in furtherance of the purposes for which the authority was organized.
(8) To issue its bonds for the purpose of carrying out any of its powers.
(9) To mortgage and pledge any or all of its projects or any part or parts thereof, as security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof.
(10) To execute and deliver, in accordance with this section and Section 11-54A-10, mortgages and deeds of trust and trust indentures, or either.
(11) To finance (by loan, grant, lease, or otherwise), construct, erect, assemble, purchase, acquire, own, repair, remodel, renovate, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage projects and to pay the cost of any project from the proceeds of bonds, or any other funds of the authority, or from any contributions or loans by persons, corporations, partnerships (limited or general), or other entities, all of which the authority is hereby authorized to receive and accept and use.
(12) To issue and use the proceeds thereof for the purpose of paying, or loaning the proceeds thereof to pay all or any part of the cost of any project and otherwise to further or carry out the public purpose of the authority and to pay all costs of the authority incident to, or necessary and appropriate to, furthering or carrying out such purpose.
(13) To make application directly or indirectly to any federal, state, county, or municipal government or agency or to any other source, public or private, for loans, grants, guarantees, or other financial assistance in furtherance of the authority’s public purpose and to accept and use the same upon such terms and conditions as are prescribed by such federal, state, county, or municipal government or agency or other source.
(14) To enter into agreements with the federal government or any agency thereof to use facilities or the services of the federal government or any agency thereof in order to further or carry out the public purposes of the authority.
(15) To contract for any period with the State of Alabama, state institutions, or any city, town, municipality, or county of the state for the use by the authority of any facilities or services of the state or any such state institution, city, town, municipality, or county, or for the use by any state institution or any city, town, municipality, or county of any facilities or services of the authority, provided such contracts shall deal with such activities and transactions as the authority and any such political subdivision with which the authority contracts are by law authorized to undertake.
(16) To extend credit or make loans to any person, corporation, partnership (limited or general), or other entity for the costs of any project or any part of the costs of any project, which credit or loans may be evidenced or secured by loan agreements, notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or such other instruments, or by rentals, revenues, fees, or charges, upon such terms and conditions as the authority shall determine to be reasonable in connection with such extension of credit or loans, including provision for the establishment and maintenance of reserve funds, and, in the exercise of powers granted hereby in connection with any project, the authority may require the inclusion in any such loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument of the provisions or requirements for guaranty of any obligations, insurance, construction, use, operation, maintenance, and financing of a project, and such other terms and conditions, as the authority may deem necessary or desirable.
(17) To acquire, accept, or retain equitable interests, security interests, or other interests in any real property, personal property, or fixtures by loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance, contract, lien, loan agreement, or other consensual transfer in order to secure the repayment of any moneys loaned or credit extended by the authority.
(18) To appoint, employ, contract with, and provide for the compensation of, such officers, employees, and agents, including without limitation, engineers, attorneys, contractors, consultants, and fiscal advisors, as the board shall deem necessary for the conduct of the business of the authority.
(19) To provide the insurance as the board may deem advisable.
(20) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted hereunder.
(21) To require payments in lieu of taxes, other than any sales or use taxes levied by the state or the local sales, use, or excise taxes required by state laws to be administered in a parallel manner to state sales or use taxes, to be made by the lessee of the project to either the authority or the city. The powers granted in this subdivision must be specifically approved, in each instance, by formal action of the governing body of the city at the time it grants any tax waiver or tax exemption under this chapter.
(22) To receive and use the proceeds of any tax levied by a municipal corporation to pay the costs of any project or for any other purpose for which the authority may use its own funds pursuant to this chapter.
(23) To encourage and promote the improvement and revitalization of the development area and to make, contract for, or otherwise cause to be made long-range plans or proposals for the development area in cooperation with the city or the county.
(24) To exercise any power granted by the laws of the State of Alabama to public or private corporations which is not in conflict with the public purpose of the authority.
(25) To do all things necessary or convenient to carry out the powers conferred by this chapter.
(b) All projects of the authority shall be located wholly within the corporate limits of the city and shall be in the development area, which shall be an area defined by the authority and approved by resolution of the governing body of the city.
(c) Notwithstanding any other provision of this chapter, any real property owned by the authority located in any development area located outside of the downtown central business district of the city shall not be exempt from any state taxes.
*(Acts 1985, No. 85-683, §9; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-10** Bonds of Authority {#sec-11-54a-10 omnilex-key=us-al-statutes--title-11--11-54A-10}
(a) Source of payment. All bonds issued by the authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the board of its projects or of any thereof as may be designated in the proceedings of the board under which the bonds shall be authorized to be issued.
(b) Pledge of revenues, receipts and other security. The principal of an interest on any bonds issued by the authority shall be secured by a pledge of the revenues and receipts out of which the same may be payable and may be secured by a mortgage and deed of trust or trust indenture conveying as security for such bonds all or any part of the property of the authority from which the revenues or receipts so pledged may be derived.
The resolution under which the bonds are authorized to be issued and any such mortgage and deed of trust or trust indenture may contain any agreements and provisions respecting the operation, maintenance and insurance of the property covered by said mortgage and deed of trust or trust indenture, the use of the revenues and receipts subject to such mortgage and deed of trust or trust indenture, the creation and maintenance of special funds from such revenues and receipts, the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made and the rights and remedies available in the event of default as the board shall deem advisable and which are not in conflict with the provisions of this chapter. Each pledge, agreement, mortgage and deed of trust or trust indenture made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
In the event of default in such payment or in any agreements of the authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust or trust indenture executed as security therefore, the rights of any holder of the bonds may be enforced by mandamus, the appointment of a receiver, or either of said remedies, and foreclosure of such mortgage and deed of trust or trust indenture may, if provided for in said instrument, be had.
(c) Execution. All bonds issued by the authority shall be signed by the chairman of its board and attested by its secretary, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman of its board; provided, that as long as the registrar of the bonds has manually signed an authentication certificate for the bonds, facsimile signatures of both of the said officers may be printed or otherwise reproduced on any such bonds in lieu of each manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chairman of the board may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
(d) General provisions respecting form, interest rate, maturities, sale and negotiability. Any such bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the authority may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The authority may pay all expenses, premiums and commissions in connection with any financing done by it. All bonds, except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source.
(e) Nature of obligation and source of payment. All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state or of any county or of the city; provided that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority. Any bonds issued by the authority shall be limited or special obligations of the authority payable solely out of its revenues and receipts of the authority specified in the proceedings authorizing those bonds.
(f) Eligibility for investment. Bonds of the authority are hereby made legal investments for executors, administrators, trustees and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority, and for savings banks and insurance companies organized under the laws of the state.
*(Acts 1985, No. 85-683, p. 1080, §10.)*
##### **§ 11-54A-11** Proceeds from Sale of Bonds {#sec-11-54a-11 omnilex-key=us-al-statutes--title-11--11-54A-11}
All moneys derived from the sale of any bonds issued by the authority shall be used solely for the purpose or purposes for which the same are authorized, including, but without limitation to, the use of bond proceeds to establish reserve funds as security for the payment of the principal of (and premium, if any) and interest on the bonds, and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to (1) the fiscal, engineering, legal and other expenses incurred in connection with the issuance of the bonds, and (2) except in the case of refunding bonds, interest to accrue on such bonds for a period ending not later than two years from their date.
*(Acts 1985, No. 85-683, p. 1080, §11.)*
##### **§ 11-54A-12** Refunding Bonds {#sec-11-54a-12 omnilex-key=us-al-statutes--title-11--11-54A-12}
Any bonds issued by the authority may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different sources for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any such bonds that are to be so redeemed in connection with such refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with refunding; provided, that unless duly called for redemption pursuant to provisions contained therein; the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding. Any refunding bonds may be sold by the authority at public or private sale at such price or prices as may be determined by its board to be most advantageous, or may be exchanged for the bonds or other obligations to be refunded. Any such refunding bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and have such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board.
Any refunding bonds issued by the authority shall be issued and may be secured in accordance with the provisions of Section 11-54A-10.
*(Acts 1985, No. 85-683, p. 1080, §12.)*
##### **§ 11-54A-13** Notice of Bond Resolution; 30 Days to Bring Action to Question Bond Validity {#sec-11-54a-13 omnilex-key=us-al-statutes--title-11--11-54A-13}
Upon the adoption by the board of the authority of any resolution providing for the issuance of bonds, the authority may cause to be published once a week for two consecutive weeks, in a newspaper published or having general circulation in the city, a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of such authority.
“The _____ Redevelopment Authority, a public corporation under the laws of the State of Alabama, on the _____ day of _____ authorized the issuance of $_____ principal amount of bonds of the public corporation for purposes authorized in the act of the Legislature of Alabama under which the public corporation was organized. Any action or proceeding questioning the validity of the bonds, or the pledge and the mortgage and deed of trust or trust indenture to secure the same, or the proceedings authorizing the same, must be commenced within 30 days after the first publication of this notice.”
A newspaper shall be deemed to be published in the city, within the meaning of this section, if its principal editorial office is located in the city.
Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of any such bonds, or the validity of any pledge and mortgage and deed of trust or trust indenture made therefor, must be commenced within 30 days after the first publication of the notice. After the expiration of that period, no right of action or defense questioning or attacking the validity of the proceedings or of the bonds or the pledge or mortgage and deed of trust or trust indenture shall be asserted, nor shall the validity of the proceedings, bonds, pledge, mortgage, and deed of trust or trust indenture be open to question in any court on any ground whatsoever except in an action commenced within the period.
*(Acts 1985, No. 85-683, §13; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-14** Exemption from Taxation {#sec-11-54a-14 omnilex-key=us-al-statutes--title-11--11-54A-14}
The authority formed under this chapter, the property and income of the authority (whether used by it or leased to others), all bonds issued by the authority, the income from such bonds or from other sources, the interest and other profits from such bonds enuring to and received by the holders thereof, conveyances by and to the authority and leases, mortgages and deeds of trust by and to the authority shall be exempt from all taxation in the state. The authority shall not be obligated to pay any fees, taxes or costs to the judge of probate of any county in connection with its incorporation or with any amendment to its certificate of incorporation or otherwise or to any judge of probate of any county in connection with the recording by it of any document or otherwise, the authority being hereby exempted from the payment of any such fees, taxes and costs. No license or excise tax may be imposed by any authority with respect to the privilege of engaging in any of the activities authorized by this chapter.
*(Acts 1985, No. 85-683, p. 1080, §14.)*
##### **§ 11-54A-15** Liability of City {#sec-11-54a-15 omnilex-key=us-al-statutes--title-11--11-54A-15}
The city shall not in any event be liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the authority, and none of the bonds of the authority or any of its agreements or obligations shall be construed to constitute an indebtedness of the city within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1985, No. 85-683, p. 1080, §15.)*
##### **§ 11-54A-16** Exemption from Usury and Interest Laws {#sec-11-54a-16 omnilex-key=us-al-statutes--title-11--11-54A-16}
The authority shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8, as it may at any time be amended.
*(Acts 1985, No. 85-683, p. 1080, §16.)*
##### **§ 11-54A-17** Compliance with Competitive Bid Laws {#sec-11-54a-17 omnilex-key=us-al-statutes--title-11--11-54A-17}
The authority and all contracts made by it shall comply with the laws of the State of Alabama requiring competitive bids for any contract to be entered into by municipalities or public corporations authorized by them, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1985, No. 85-683, §17; Act 2004-630, p. 1439, §1.)*
##### **§ 11-54A-18** Freedom of Authority from State Supervision and Control {#sec-11-54a-18 omnilex-key=us-al-statutes--title-11--11-54A-18}
This chapter is intended to aid the state through the furtherance of the purposes of the chapter by providing an appropriate and independent instrumentality of the state with full and adequate powers to fulfill its functions. Except as expressly provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of the authority or the amendment of its certificate of incorporation, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture, or the exercise of any other of its powers by the authority. Neither a public hearing nor the consent of the State Department of Finance shall be prerequisite to the issuance of bonds by the authority.
The authority shall hold a public hearing before approving or obligating the expenditure of any tax revenues received by the authority from the city, any county, the state or federal governments. Such notice shall be advertised in a newspaper of general circulation in the county of incorporation of the authority and the notice shall be published not less than seven days prior to the hearing.
*(Acts 1985, No. 85-683, §18.)*
##### **§ 11-54A-19** Earnings of Authority {#sec-11-54a-19 omnilex-key=us-al-statutes--title-11--11-54A-19}
The authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of the authority, then any net earnings of the authority thereafter accruing shall be paid to the city.
*(Acts 1985, No. 85-683, p. 1080, §19.)*
##### **§ 11-54A-20** Dissolution of Corporation and Vesting of Title to Property in City {#sec-11-54a-20 omnilex-key=us-al-statutes--title-11--11-54A-20}
At any time when the authority has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the judge of probate of the county, the authority shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to the city.
*(Acts 1985, No. 85-683, §20.)*
##### **§ 11-54A-21** Existence of Authority to Prevent Incorporation of Another by City {#sec-11-54a-21 omnilex-key=us-al-statutes--title-11--11-54A-21}
The existence of the authority incorporated under the provisions of this chapter shall prevent the subsequent incorporation hereunder of another authority pursuant to authority granted by this chapter.
*(Acts 1985, No. 85-683, p. 1080, §21.)*
##### **§ 11-54A-22** Loans, Sales, Grants, Etc., of Money, Property, Etc., to Authority by Counties, Municipalities, Etc {#sec-11-54a-22 omnilex-key=us-al-statutes--title-11--11-54A-22}
For the purpose of effecting the revitalization and redevelopment of the central business district of the city, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms and with or without consideration, as it may determine:
(1) Lend or donate money to or perform services for the benefit of the authority;
(2) Donate, sell, convey, transfer, lease, or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind, any interest therein, and any franchise; and
(3) Do any and all things, whether or not specifically authorized in this chapter and not otherwise prohibited by law, that are necessary or convenient in connection with aiding and cooperating with the authority in its efforts to revitalize and redevelop the central business district of the city.
*(Acts 1985, No. 85-683, p. 1080, §22.)*
##### **§ 11-54A-23** Provisions Cumulative {#sec-11-54a-23 omnilex-key=us-al-statutes--title-11--11-54A-23}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with provisions of this chapter.
*(Acts 1985, No. 85-683, p. 1080, §23.)*
##### **§ 11-54A-24** Authorities Organized Under Prior Acts {#sec-11-54a-24 omnilex-key=us-al-statutes--title-11--11-54A-24}
Any downtown redevelopment authority established under Acts 1982, No. 303, Acts 1984, No. 395, Acts 1984, No. 415, Acts 1985, No. 185, or any other authority organized under any act of this state prior to May 29, 1985, for the purpose of revitalizing or redeveloping the central business district of any city or town in Alabama may reincorporate under the provisions of this chapter by the filing of a restated certificate of incorporation with the judge of probate of the county wherein the certificate of incorporation of the authority was originally filed for record but the provisions of Section 11-54A-4 need not be complied with and, if the authority had previously received an authorizing resolution, no new authorizing resolution shall be required. The governing body of the city shall not be required to reappoint the directors of any such authority and the directors then in office shall continue in office and their terms of office shall expire at the same time such terms would have expired prior to the passage of this chapter. The downtown development area of such authorities shall be the areas specified in the acts described in the first sentence of this paragraph.
All bonds, leases, mortgages, indentures, inducement agreements, preliminary bond resolutions and other instruments, contracts, documents and agreements issued, entered into, authorized or approved by such authorities are hereby validated, ratified and approved ab initio.
*(Acts 1985, No. 85-683, p. 1080, §24.)*
##### **§ 11-54A-25** Continued Existence of Authorities Established Before August 1, 2004; Reincorporation {#sec-11-54a-25 omnilex-key=us-al-statutes--title-11--11-54A-25}
Any downtown redevelopment authority established under this chapter prior to August 1, 2004, for the purpose of revitalizing or redeveloping the central business district of any city or town in Alabama may continue in existence under this chapter as it appeared prior to August 1, 2004, or may reincorporate under the provisions of this chapter as amended by the filing of a restated certificate of incorporation with the judge of probate of the county wherein the certificate of incorporation of the authority was originally filed for record, but the provisions of Section 11-54A-4 need not be complied with and, if the authority had previously received an authorizing resolution, no new authorizing resolution shall be required. The governing body of the city shall not be required to reappoint the directors of the authority and the directors then in office shall continue in office and their terms of office shall expire at the same time the terms would have expired prior to the passage of this section.
*(Act 2004-630, p. 1439, §2.)*
### **Chapter 54B** Self-Help Business Improvement Districts
#### **Article 1** General Provisions
##### **§ 11-54B-1** Legislative Findings {#sec-11-54b-1 omnilex-key=us-al-statutes--title-11--11-54B-1}
(a) The Legislature finds:
(1) That patterns of urban development have had a substantial adverse impact upon downtown and community business districts vital to the economies of Class 1 municipalities in Alabama.
(2) That the public interest would be advanced by authorizing the creation of self-help business improvement districts and district management corporations to assist Class 1 municipalities in promoting economic growth in business districts.
(3) That district management corporations representing real property owners within self-help business improvement districts can assist Class 1 municipalities in promoting economic growth and employment within business districts.
(4) That Class 1 municipalities should be authorized to create self-help business improvement districts and designate district management corporations to execute self-help programs to improve the local business climates.
(b) The Legislature further finds that it is the public policy of the State of Alabama to permit the governing bodies of Class 1 municipalities to protect the public welfare and the interests of the public in the safe and effective movement of persons, encourage healthy economic development, promote jobs, and preserve and enhance the function and appearance of business districts located within a Class 1 municipality through the adoption of an ordinance of the type authorized in this article.
*(Acts 1994, No. 94-677, p. 1295, §1.)*
##### **§ 11-54B-2** Definitions {#sec-11-54b-2 omnilex-key=us-al-statutes--title-11--11-54B-2}
As used in this article, the following words and phrases shall have the following meanings:
(1) MUNICIPALITY. Any Class 1 municipality located in the State of Alabama.
(2) DISTRICT MANAGEMENT CORPORATION. An entity created by incorporation under The Alabama Nonprofit Corporation Act (Chapter 3A of Title 10), and designated by ordinance to manage a self-help business improvement district.
(3) SELF-HELP BUSINESS IMPROVEMENT DISTRICT. A geographical area, whether or not contiguous, within a municipality designated by ordinance as an area in which a special assessment may be levied on the owners of the real property located within the geographical area of the district for the purposes of providing supplemental services within the district and promoting the economic and general welfare of the district.
*(Acts 1994, No. 94-677, p. 1295, §2; Act 2007-479, p. 1017, §1.)*
##### **§ 11-54B-3** Development and Maintenance of Self-Help Business Improvement Districts {#sec-11-54b-3 omnilex-key=us-al-statutes--title-11--11-54B-3}
A municipality may, through ordinance, provide for the creation and maintenance of one or more self-help business improvement districts pursuant to this article. This article is intended as the exclusive procedure through which a municipality may create and maintain a self-help business improvement district.
*(Acts 1994, No. 94-677, §3.)*
##### **§ 11-54B-4** Findings Required for Public Hearing on Adoption of Self-Help Business Improvement District Ordinance {#sec-11-54b-4 omnilex-key=us-al-statutes--title-11--11-54B-4}
A public hearing on the adoption of a self-help business improvement district ordinance may be called only if the governing body of a municipality finds that:
(a) A request for the creation of a self-help business improvement district which satisfies the requirements of Section 11-54B-5 has been filed with the clerk of the municipality.
(b) The area described in the self-help business improvement district plan would benefit from being designated as a self-help business improvement district.
(c) The self-help business improvement district plan required by Section 11-54B-5 includes a designated district management corporation to provide administrative and other services to benefit businesses, employees, residents, and consumers in the self-help business improvement district.
(d) The self-help business improvement district plan includes a special assessment which will be levied by the district management corporation on the owners of the real property located within the geographical area of the district to finance the supplemental services described in the plan and that such special assessment is expected to produce revenue which is consistent with the annual budget adopted and approved as provided in this chapter.
(e) The copies of the articles of incorporation and by-laws of the district management corporation satisfy the requirements of Section 11-54B-9.
(f) It is in the best interests of the municipality and the public to designate the geographical area described in the plan as a self-help business improvement district and to designate a district management corporation to provide administrative and other services to the district.
(g) The existing level of publicly funded services provided by the municipality in the geographical area of the proposed district has been documented in writing and certified by the mayor of the municipality.
*(Acts 1994, No. 94-677, §4.)*
##### **§ 11-54B-5** Requirements of Request for Creation of Self-Help Business Improvement District {#sec-11-54b-5 omnilex-key=us-al-statutes--title-11--11-54B-5}
(a) A request for the creation of a self-help business improvement district must contain the following:
(1) The signatures of a representative group of the owners of the real property located within the geographical area of the proposed district. The group must include the signatures of the owners of real property which comprises at least one-half of the total fair market value of all real property located in the proposed district. Ownership of real property and the fair market value thereof shall be determined by the county property tax assessment records. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by statute, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed the owner of such real property for purposes of this article.
(2) An accurate description, whether by metes and bounds or by lot and block numbers or by street addresses, of the proposed district.
(3) A self-help business improvement district plan that shall include:
a. a description of the supplemental services which will be provided in the district;
b. a budget outlining the annual cost of the supplemental services described in paragraph a.;
c. a description of the method which will be used to determine the amount of the special assessment which will be levied on the owners of the real property located within the geographical area of the district to finance the supplemental services described in paragraph a.;
d. the number of years, not to exceed five years, in which the special assessments described in paragraph c. above will be levied; and
e. copies of the articles of incorporation and by-laws of the district management corporation designated by the plan to provide administrative and other services to the district.
(b) Act 2021-213 shall not affect the creation of a self-help business improvement district prior to April 15, 2021, but any district in existence prior to April 15, 2021, shall be subject to the remaining provisions of Act 2021-213.
*(Acts 1994, No. 94-677, §5; Act 2021-213, §§1,2.)*
##### **§ 11-54B-6** Mailing of Proposed Ordinance and Notice of Hearing {#sec-11-54b-6 omnilex-key=us-al-statutes--title-11--11-54B-6}
At least twenty (20) days prior to the date set for a public hearing on the proposed self-help business improvement district plan, notice of the date, time and place of the hearing, with a description of the geographical area proposed to be included in the district, the proposed ordinance, and the self-help business improvement district plan shall be mailed to all known owners of real property located within the geographical area proposed to be included in the district. Such notice shall be mailed to all known owners of such real property at the address listed in the county property tax assessment records. In addition, a copy of such notice shall be posted in at least three (3) places located within the geographical area proposed to be included in the district. A property owner’s failure to receive a copy of such notice shall not constitute grounds upon which such owner may contest the validity of a self-help business improvement district ordinance.
*(Acts 1994, No. 94-677, §6.)*
##### **§ 11-54B-7** Review of Self-Help Business Improvement District Plan and Adoption of Ordinance {#sec-11-54b-7 omnilex-key=us-al-statutes--title-11--11-54B-7}
The municipality, upon review of the self-help business improvement district plan submitted, after public hearing, may adopt an ordinance to designate, establish, and maintain the area described in the plan as a self-help business improvement district. The ordinance shall provide for an effective date which is 60 days from the date of adoption of the ordinance by the municipality and shall provide that, if the owners of real property which represent one-half or more (by number) of all parcels of real property located within the geographical area of the district file written objections to the establishment of the district with the clerk of the municipality, the provisions of such ordinance shall be void and no district shall be created. The ordinance shall designate the district management corporation provided for in the plan as the district management corporation authorized to provide administrative and other services to the district and authorize the execution of a contract between the municipality and such district management corporation setting out the services to be provided by the district and the municipality. The contract shall provide that the municipality shall continue the same level of services in the district as provided prior to the creation thereof.
*(Acts 1994, No. 94-677, §7; Act 2021-213, §1.)*
##### **§ 11-54B-8** Costs of Supplemental Services; Assessment of Classes; Exemptions {#sec-11-54b-8 omnilex-key=us-al-statutes--title-11--11-54B-8}
(a) A self-help business improvement district ordinance shall provide that all costs of the supplemental services provided in a business improvement district will be financed through the levy of a special assessment on the owners of the real property located within the geographical area of the district and shall designate the method set forth in the plan as the method which will be used to determine the amount of such special assessment in a manner which fairly and equitably distributes the burden of financing the supplemental services among the real property owners in the district. Such ordinance shall list and describe, by metes and bounds, by lot and block numbers, or by street addresses, all real properties against which the special assessment will be made to fund such supplemental services.
(b) The board of directors of the district management corporation, in its sole discretion, may assess classes of real property within the self-help business improvement district at different rates and may provide exemptions from assessment for the owners of one or more classes of real property within the self-help business improvement district. The following classes of real property shall be utilized in setting the rates and making exemptions:
(1) Property owned and occupied by an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
(2) Property, any portion of which is used for residential purposes.
(3) All other property.
(c) The board of directors of the district management corporation, in its sole discretion and at any time, may create additional classes of real property, whether based on use or location, for purposes of subsection (b); however, any additional class of property must include, at a minimum, at least ten different owners of real property and each owner of real property within the class shall be assessed at the same rate.
(d) All real property located within the geographical area of the self-help business improvement district which is owned by the federal government, the State of Alabama, or a political subdivision, agency, instrumentality, or authority of any of the foregoing shall be exempt from the special assessment imposed by the district management corporation, provided the right to occupy or possess such property is not held by a person or entity other than such owner. The district management corporation may require such owner to certify, from time to time, the person or entity who has the right to occupy or possess such property.
(e) Notwithstanding anything provided herein to the contrary, no owner of real property located within the geographical area of the self-help business district shall be required to pay a special assessment in excess of 17 1/2 percent of the total amount of special assessments on all owners of real property in the self-help business district for any year.
*(Acts 1994, No. 94-677, p. 1295, §8; Act 2007-479, p. 1017, §1.)*
##### **§ 11-54B-9** Collection of Special Assessment; Procedures; Claim of Lien; Interest, Penalties, and Fees {#sec-11-54b-9 omnilex-key=us-al-statutes--title-11--11-54B-9}
(a) A self-help business improvement district ordinance shall provide that the special assessment levied on the owners of the real property located within the geographical area of the district shall be collected by the district management corporation. The collection procedures utilized by the district management corporation shall include the mailing of a notice of the special assessment to the person shown as owner of the property on the records of the tax assessor in the following manner:
(1) After October 1 of each year, the district management corporation may levy the special assessment for services to be provided during the following calendar year.
(2) The assessment shall be due on December 1 and delinquent on January 1 following the October levy.
(3) Upon delinquency, interest and penalties may be assessed in the amounts provided in subsection (d).
(b) Notwithstanding subsection (a), the district management corporation, as it may determine in its sole discretion from time to time, may alter any of the procedures or dates set forth above as well as provide for other procedures for collection of the special assessment; provided, however, that no special assessment shall be due less than 15 days after levy nor delinquent less than 30 days after its due date. Until payment, any amounts owed pursuant to this section shall be a debt of the real owner of record as of 30 days following each levy.
(c)(1) Such ordinance shall provide that the amount of any outstanding special assessment levied on a parcel of real property, together with any accrued interest , penalties, and fees provided in subsection (d), shall constitute a lien on such property upon the recording in the public records of the county in which the property is located of a claim of lien, stating the legal description or street address of the property, the name of the record owner, the amount due and the date when due. The claim of lien shall be signed and verified by an officer or agent of the district management corporation.
(2) Liens provided for in subdivision (1) may be foreclosed by an action brought in the name of the district management corporation in the same manner as a foreclosure of a mortgage on real property. The district management corporation may bid on the property at foreclosure sale and acquire, hold, lease, mortgage, and convey the same. An action to recover a money judgment for unpaid assessments may be maintained without waiving such lien.
(3) Upon full payment of all sums secured by the lien, the party making payment shall be entitled to a recordable satisfaction of lien.
(4) The lien shall take precedence over all other liens, whether created prior or subsequent to the date of the special assessment, except a lien for state, county, or municipal taxes; a prior special assessment; or a prior recorded mortgage, deed of trust, or similar security instrument. Other than foreclosures for state, county, or municipal taxes; a prior special assessment; or a prior recorded mortgage, deed of trust, or similar security instrument, the lien for the special assessment shall not be defeated or postponed by any private or judicial sale, or by any mortgage, deed of trust, or similar security instrument which is recorded subsequent to the date of final adoption by the municipality of the self-help business improvement district ordinance providing for the special assessment.
(d) The board of directors of the district management corporation may establish the interest, penalties, and fees which shall be owed when a special assessment is not timely paid as provided in subsection (a). The interest rate may not exceed the prime interest rate, as determined by the board on one or more dates during a year, plus 10 percent. Penalties shall not exceed 15 percent of the aggregate of the amount owed and the interest owed on the date of payment. Fees shall include court costs as well as any attorneys’ fees incurred by the district management corporation, not to exceed one third of the aggregate of the amount owed, the interest owed on the date of payment, and the penalties. The district management corporation may determine in its sole discretion that it should waive some or all of the amounts owed by one or more owners pursuant to this section.
(e) No error in the proceedings of the governing body of the municipality or of the board of directors of the district management corporation shall exempt any real property within the self-help improvement district from the imposition of any interest or penalty or from any lien or from payment thereof.
(f) If, pursuant to subsection (d) of Section 11-54B-8, a governmental owner certifies to the district management corporation that some other person or entity has a right to own or possess real property within the geographical area of the self-help business improvement district, or if no such certification is returned to the district management corporation, the procedures in this section shall apply.
(1) In addition to the collection procedures provided in subsection (a), the collection procedures utilized by the district management corporation shall include mailing notice of the assessment to the person or entity which occupies or possesses such property by mailing the notice to a postal address located on the property.
(2) The lien provided in subsection (c) shall additionally constitute a lien on the leasehold or other right of occupancy or possession of all or any part of such property without any judicial action.
(g) When real property within the geographical area of the self-help business improvement district is a condominium property, as the term is defined in subdivision (6) of Section 35-8-2, the assessment of the property, in the discretion of the district management corporation, may be separately assessed against and collected on each unit as a single parcel or it may be assessed against and collected on the condominium property as a whole and treated as a common expense, as such term is defined in subdivision (3) of Section 35-8-2.
*(Acts 1994, No. 94-677, p. 1295, §9; Act 2007-479, p. 1017, §1.)*
##### **§ 11-54B-10** Amendment of Self-Help Business Improvement District Ordinance {#sec-11-54b-10 omnilex-key=us-al-statutes--title-11--11-54B-10}
(a) Except as provided in subsection (b), the governing body of the municipality may amend a self-help business improvement district ordinance upon the written request of the district management corporation or a representative group of the owners of the real property located within the geographical area of the district. Such request must specify the desired amendment, which should be made by the governing body of the municipality to the self-help business improvement district ordinance. If such request is made by a representative group of owners of the real property located within the geographical area of the district, such request must also include the signatures of the owners of real property which comprises at least one-half of the total fair market value of all real property located in the district, determined pursuant to the provisions of subsection (a) of Section 11-54B-5.
(b) The governing body of the municipality may amend the self-help business improvement district ordinance to reduce or expand the real property comprising the self-help business improvement district in accordance with this subsection.
(1) The ordinance may be amended to reduce the real property comprising the district following the submission of a request for reduction by the board of directors of the district management corporation.
(2) The ordinance may be amended to expand the real property comprising the district following the submission of a request for expansion by both of the following:
a. The owners of real property located within the area that is to be newly included within the district as provided in subdivision (3).
b. The board of directors of the district management corporation.
(3) Where a request for expansion is sought under subdivision (2), the request shall contain the signatures of the owners of real property which comprises at least one-half of the total fair market value of all real property located in the geographical area provided in paragraph a. of subdivision (2). Ownership of real property and the fair market value thereof shall be determined using the records of the tax assessor or of the judge of probate. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by statute, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed the owner of the real property.
(4) A request for expansion or reduction shall include an accurate description, whether by metes and bounds, by lot and block numbers, or by street addresses, of the geographical area which is the subject of the reduction or expansion, as well as a similar description of the resulting district if such reduction or expansion was approved.
(5) At least 20 days prior to the date set for a public hearing on the proposed self-help business improvement district reduction or expansion, notice of the date, time, and place of the hearing, together with a description of the geographical area which is the subject of the reduction or expansion, shall be mailed to all owners of real property located within the geographical area which is the subject of the reduction or expansion, as ownership shown on the records of the tax assessor. In addition, a copy of the notice shall be posted in at least three places located within the geographical area which is the subject of the reduction or expansion. A property owner’s failure to receive a copy of the notice shall not constitute grounds upon which the owner may contest the validity of a self-help business improvement district amendment.
(6) The municipality, upon review of the request for the reduction or expansion of the self-help business improvement district and after public hearing, may adopt an ordinance reducing or expanding the self-help business improvement district. The ordinance shall provide for an effective date which is 60 days from the date of adoption of the ordinance by the municipality and shall provide that, if the owners of real property which represent one-third or more by number of all parcels of real property located within the geographical area of the resulting district file written objections to the establishment of the district with the clerk of the municipality, the provisions of such ordinance shall be void and no reduction or expansion shall occur. The ordinance shall provide that the contract between the municipality and the district management corporation setting out the services to be provided by the district and the municipality shall be amended to provide that the same level of services provided by the municipality shall continue as before the reduction or expansion of the real property comprising the self-help business improvement district.
(7) There shall be no requirement that the real property located within the geographical area of the self-help business improvement district be contiguous.
*(Acts 1994, No. 94-677, p. 1295, §10; Act 2007-479, p. 1017, §1; Act 2021-213, §1.)*
##### **§ 11-54B-11** District Management Corporation Limits, Powers, and Duties {#sec-11-54b-11 omnilex-key=us-al-statutes--title-11--11-54B-11}
(a) District management corporations shall be incorporated under the Alabama Nonprofit Corporation Act (Chapter 3A of Title 10) and shall exercise their powers in a manner consistent with such act.
(b) To qualify for designation by ordinance to manage a self-help business improvement district, the articles of incorporation of a proposed district management corporation must provide the following:
(1) That the property, business, and affairs of the corporation shall be managed by a board of directors.
(2) The names and addresses of the initial members of the board of directors.
(3) That the initial members of the board shall be divided into three groups which are as equal in number as is possible, that such groups will serve for initial terms of one (1), two (2) and three (3) years respectively, and that all directors thereafter elected by the board of directors shall serve for a term of three (3) years.
(4) That the members of the board of directors elected after the expiration of the initial terms set forth in subsection (3) above will be elected by the existing members of the board of directors.
(5) That all members of the board of directors must own real property which is located in the geographical area of the district or be a designated representative of an owner of such property, and that in order to provide representation on the board of directors to the small business owners located within the geographical area of the district, at least one-third ( 1/3 ) of the members of the board of directors shall own or represent an owner of a tract of real property in the district with a fair market value which is in the lower one-third ( 1/3 ) of the fair market values of all real property in the district.
(6) That no funds received by the corporation from assessments on such property shall be expended except in accordance with the budget adopted or amended under the provisions of this chapter.
(7) That vacancies on the board of directors resulting from death, resignation, or removal, shall be filled by the remaining members of the board of directors of the district management corporation for the unexpired portion of the term.
(8) That at least once every six (6) months after designation, the corporation shall hold public meetings appropriately advertised in the district, at a place convenient to persons concerned with the operation of the district, and shall receive written suggestions from businesses in the district at any time.
(9) That municipal representatives designated by the mayor and by the governing body of the municipality shall be authorized to attend and participate in regular and called meetings of the board of directors of the district management corporation, but shall not vote on any matters considered by directors.
(10) That no amendment to the articles of incorporation or any by-laws shall be effective unless approved by the board of directors of the district management corporation.
(11) That directors shall receive no compensation for service as directors, but shall be entitled to receive reimbursement for expenses actually incurred in the performance of their duties approved by the board.
(12) That upon dissolution, or upon any withdrawal of the designation as the district management corporation, all interests and title to funds held by or for the corporation, and all property of the corporation shall be transferred and assigned to (1) a successor district management corporation, or (2) if no such successor district management corporation exists, the municipality for use in funding such programs as the board of directors of the district management corporation shall direct and designate.
(c) The district management corporation shall have all powers necessary to implement its purposes, including, but not limited to, the power to:
(1) Adopt by-laws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its functions and duties;
(2) Employ such persons as may be required, and fix and pay their compensation from funds available to the corporation;
(3) Apply for, accept, administer, and comply with the requirements respecting an appropriation of funds or a gift, grant, or donation of property or money;
(4) Make and execute agreements which may be necessary or convenient to the exercise of the powers and functions of the corporation, including contracts with any person, firm, corporation, governmental agency, or other entity;
(5) Administer and manage its own funds and accounts and pay its own obligations;
(6) Borrow money from private lenders for periods not to exceed 180 days and from governmental entities for that or longer periods;
(7) Enforce the conditions of any loan, grant, sale, or lease made by the corporation;
(8) Provide security, sanitation, and other services to the district supplemental to those provided normally by the municipality;
(9) Publicize the district and the businesses included within the district boundaries;
(10) Recruit new businesses to fill vacancies in the district;
(11) Organize special events in the district;
(12) Provide special parking arrangements for the district;
(13) Participate in other governmental programs for which qualified included in its approved plan; and
(14) Undertake such other activities or initiatives within the district as the board of directors of the district management corporation deems appropriate.
*(Acts 1994, No. 94-677, §11.)*
##### **§ 11-54B-12** Annual Budget of District Management Corporation {#sec-11-54b-12 omnilex-key=us-al-statutes--title-11--11-54B-12}
(a) The officers of the district management corporation shall submit a detailed annual budget for approval by its board of directors including proposed expenditures and proposed sources of funding, including voluntary donations, and which explains how the budget contributes to goals and objectives for the business improvement district.
(b) The budget shall be introduced, approved, amended, and adopted by resolution passed by not less than a majority of the full membership of the board of directors.
The procedure shall be as follows:
(1) Introduction and preliminary approval;
(2) Public advertising;
(3) Public hearing;
(4) Amendments and public hearings, if required; and
(5) Adoption.
(c) No budget shall be adopted until a public hearing has been held thereon and all persons having an interest therein shall have been given an opportunity to present objections.
(d) The board of directors may amend the budget during or after the public hearing.
No amendment by the board of directors shall be effective until taxpayers and all persons having an interest therein shall have been granted a public hearing thereon, if the amendment shall:
(1) Add a new item in an amount in excess of 10% of the total amount as stated in the approved budget; or
(2) Increase or decrease any item within such budget by more than 10% of the amount stated therein for such item, or
(3) Increase the amount to be raised by special assessment by more than 10% of the total special assessment revenues stated in the approved budget.
*(Acts 1994, No. 94-677, §12.)*
##### **§ 11-54B-13** Retention of Municipal Police Powers {#sec-11-54b-13 omnilex-key=us-al-statutes--title-11--11-54B-13}
Notwithstanding the improvement of any street or sidewalk incident to a self-help business improvement district, a municipality and its governing body shall retain its police powers and other rights and powers relating to the street or part thereof constituting or included in a self-help business improvement district, and no such action shall be interpreted or construed to be a vacation, in whole or in part, of any municipal street or part thereof, it being intended that the establishment of a self-help business improvement district pursuant to this article is a matter of a regulation only.
*(Acts 1994, No. 94-677, §13.)*
##### **§ 11-54B-14** Eminent Domain Utilization {#sec-11-54b-14 omnilex-key=us-al-statutes--title-11--11-54B-14}
No self-help business improvement district or district management corporation shall have eminent domain powers. All such procedures incidental to the development and maintenance of a self-help business improvement district pursuant to this chapter, including compensation for land acquisition and legal challenges and appeals not specifically prescribed hereunder, shall be taken in accordance with the applicable provisions of Chapter 1A of Title 18.
*(Acts 1994, No. 94-677, §14.)*
##### **§ 11-54B-15** Furniture, Structure of Facility Not Deemed Nuisance {#sec-11-54b-15 omnilex-key=us-al-statutes--title-11--11-54B-15}
Any movable furniture, structure, facility, or appurtenance or activity located or permitted in connection with a self-help business improvement district shall not, by reason of such location or use, be deemed a nuisance or unlawful obstruction or condition, notwithstanding any rule or regulation or principle of negligence law pertaining to the use of public streets and highways and neither the municipality nor any user acting under permit shall be liable for any injury to person or property, unless such furniture, structure, facility or use shall be negligently constructed, maintained, or operated.
*(Acts 1994, No. 94-677, §15.)*
##### **§ 11-54B-16** District Management Corporation Contracts {#sec-11-54b-16 omnilex-key=us-al-statutes--title-11--11-54B-16}
The municipality may, by ordinance, authorize the district management corporation to contract work to be done on any street or streets, or on other municipal property, included in the self-help business improvement district. In the event that the municipality elects to contract with the district management corporation with respect to such work, the district management corporation shall, solely with respect to such contract, be subject to the statutory rules and regulations applicable to the letting of contracts by a municipality. Further, the plans and specifications of any construction work to be contracted shall be approved by the municipal engineer prior to initiation of any actions for the awarding of a contract under this article.
*(Acts 1994, No. 94-677, §16.)*
##### **§ 11-54B-17** Operation in Other Designated Project Areas {#sec-11-54b-17 omnilex-key=us-al-statutes--title-11--11-54B-17}
This article shall not prohibit a municipality from including a self-help business improvement district within the bounds of any area, district, or zone including enterprise zones established pursuant to law which has as one of its purposes the encouragement of the construction of improvements or the rehabilitation of properties located within those boundaries, or the inducement of private enterprises to locate within those boundaries, whether by tax credits, exemptions, or abatements, or by special public financing arrangements.
*(Acts 1994, No. 94-677, §17.)*
##### **§ 11-54B-18** Annual Reports and Audits {#sec-11-54b-18 omnilex-key=us-al-statutes--title-11--11-54B-18}
(a) Within ninety (90) days after the close of each fiscal year, the district management corporation shall make an annual report of its activities for the preceding fiscal year to the governing body of the municipality.
(b) Within ninety (90) days after the close of each fiscal year, the district management corporation shall cause an annual audit of its books, accounts, and financial transactions to be made and filed with the governing body of the municipality and for that purpose the corporation shall employ a certified public accountant. The annual audit shall be completed and filed with the governing body within four months after the close of the fiscal year of the corporation and a certified duplicate copy of the audit shall be filed with the mayor and the finance director or other financial control officer of the municipality.
*(Acts 1994, No. 94-677, §18.)*
##### **§ 11-54B-19** Continuation, Modification, or Termination of District {#sec-11-54b-19 omnilex-key=us-al-statutes--title-11--11-54B-19}
(a) Within 60 days after the adoption and approval of the fifth annual budget for any self-help business improvement district, the board of directors of the district management corporation shall set a hearing to determine whether the district should be continued, modified, or terminated. At least 20 days before the hearing, notice of the date, place, and time of such hearing shall be posted in at least three places within the district and mailed to each real property owner who paid assessments to the district during the previous year as certified by an officer of the district management corporation collecting such assessments.
(b) Whenever a petition is presented to the board of directors of the district management corporation signed by real property owners in the district which paid 50 percent or more of the assessments paid in the district during the last fiscal year for which assessments were collected, the board of directors of the district management corporation shall set a public hearing as provided for in subsection (a).
(c) After a hearing, the board of directors of the district management corporation shall adopt a resolution approving the continuation of the district, modifying the district or the services rendered thereby, or the assessments levied, or terminating the district as of the end of the fiscal year during which the hearing is held.
(d) If it should be demonstrated at any hearing held under this section that the owners of real property which either (1) pay one-half or more of the assessments levied in the district during the last fiscal year for which assessments were collected, or (2) represent one-half or more (by number) of all parcels of real property located within the geographical area of the district object to the continuation of the district, the district shall be terminated as of the end of the fiscal year next following the hearing.
*(Acts 1994, No. 94-677, §19; Act 2021-213, §1.)*
##### **§ 11-54B-20** Tax Exemption {#sec-11-54b-20 omnilex-key=us-al-statutes--title-11--11-54B-20}
A nonprofit corporation designated as a district management corporation under this article shall be exempt from the state corporate income tax, corporate franchise tax, and permit fee and from state, county, and municipal sales, use, license, gross receipts, and ad valorem taxes.
*(Acts 1994, No. 94-677, §20.)*
##### **§ 11-54B-21** Contracts for Operation and Management with Other District Management Corporations {#sec-11-54b-21 omnilex-key=us-al-statutes--title-11--11-54B-21}
The board of directors of the district management corporation may contract with other district management corporations to provide for the operation and management of such other district management corporations. In addition, the board of directors of the district management corporation may contract to provide supplemental services outside of the geographical area of the district.
*(Act 2007-479, p. 1017, §2.)*
##### **§ 11-54B-22** Merger of Business Improvement Districts {#sec-11-54b-22 omnilex-key=us-al-statutes--title-11--11-54B-22}
(a) Without the approval of the governing body of the municipality or the owners of the real property located within the geographical areas of the districts, any two or more district management corporations located within the same municipality may merge into one of such district management corporations pursuant to Article 5 of Chapter 3A of Title 10, as well as this section.
(b) Each district management corporation shall adopt a plan of merger in compliance with subsection (b) of Section 10-3A-100, which plan of merger, in addition, shall designate the self-help business improvement district ordinance which shall be applicable to the surviving corporation, provided that such ordinance was applicable to at least one of the corporations prior to the merger.
(c) A plan of merger shall be approved pursuant to subdivision (2) of subsection (a) of Section 10-3A-102.
(d) The articles of merger provided in Section 10-3A-103, shall designate the self-help business improvement district ordinance which shall be applicable to the surviving corporation, provided that the ordinance was applicable to at least one of the corporations prior to the merger.
(e) The self-help business improvement district ordinance which is designated as being applicable to the surviving corporation, upon the issuance of a certificate of merger by the Secretary of State, shall be deemed to be amended to the extent necessary to allow the surviving corporation to serve the geographical area comprising both self-help business improvement districts.
*(Act 2007-479, p. 1035, §2.)*
#### **Article 2** Self-Help Business Improvement Districts in Class 2 Municipalities
##### **§ 11-54B-40** Legislative Findings {#sec-11-54b-40 omnilex-key=us-al-statutes--title-11--11-54B-40}
(a) The Legislature makes the following findings:
(1) That patterns of urban development have had substantial adverse impacts upon downtown and community business districts vital to the economy of the State of Alabama.
(2) That the public interest would be advanced by authorizing the creation of self-help business improvement districts and district management corporations to assist any Class 2 municipality in promoting economic growth in business districts.
(3) That the public interest would also be advanced by authorizing the creation of self-help business districts for the promotion of tourism that include businesses of a designated class and funding supplemental business services through the levy of assessments on businesses of the designated class that receive benefits from those supplemental business services.
(4) That a district management corporation representing real property owners, or in certain cases, owners of a particular class of business, within self-help business improvement districts can assist any Class 2 municipality in promoting economic growth and employment within business districts.
(5) That any Class 2 municipality should be authorized to create self-help business improvement districts and designate a district management corporation to execute self-help programs to improve the local business climate.
(b) The Legislature further finds that it is the public policy of the State of Alabama to permit any Class 2 municipality to protect the public welfare and the interests of the public in the safe effective movement of persons, to encourage healthy economic development, to promote jobs, and to preserve and enhance the function and appearance of business districts located within any Class 2 municipality through the adoption of ordinances as authorized by this article.
*(Act 2004-382, p. 626, §1; Act 2019-200, §2.)*
##### **§ 11-54B-41** Definitions {#sec-11-54b-41 omnilex-key=us-al-statutes--title-11--11-54B-41}
As used in this article, the following words and phrases shall have the following meanings:
(1) DISTRICT MANAGEMENT CORPORATION. An entity created by incorporation under the Alabama Nonprofit Corporation Act, Chapter 3 of Title 10A, and designated by ordinance by the incorporated municipality to manage a self-help business improvement district.
(2) MUNICIPALITY. Those municipalities designated as Class 2 municipalities as defined in Section 11-40-12.
(3) SELF-HELP BUSINESS IMPROVEMENT DISTRICT. An area within the incorporated municipality designated by ordinance as an area in which a special assessment may be levied on the owners of real property located within the geographical area of the district for the purposes of providing supplemental services within the district and promoting the economic and general welfare of the district or, alternatively with respect to a district formed for the purpose of increasing tourism within the municipality, an area or areas within the municipality designated by ordinance as an area or areas in which a special assessment may be levied on businesses of a particular class located within the geographical area of the district for the purposes of providing supplemental services for the benefit of the businesses within the district, in which case the district shall include only those existing and future businesses of the designated class.
*(Act 2004-382, p. 626, §2; Act 2019-200, §2.)*
##### **§ 11-54B-42** Development and Maintenance of Self-Help Business Improvement Districts {#sec-11-54b-42 omnilex-key=us-al-statutes--title-11--11-54B-42}
A Class 2 municipality, by ordinance, may provide for the creation and maintenance of one or more self-help business improvement districts pursuant to this article. This article is intended as the exclusive procedure by which a Class 2 municipality may create and maintain a self-help business improvement district.
*(Act 2004-382, p. 626, §3.)*
##### **§ 11-54B-43** Findings Required for a Public Hearing on the Adoption of a Self-Help Business Improvement District Ordinance {#sec-11-54b-43 omnilex-key=us-al-statutes--title-11--11-54B-43}
A public hearing on the adoption of an ordinance creating a self-help business improvement district may be called only if the governing body of a Class 2 municipality finds that:
(1) A request for the creation of a self-help business improvement district which satisfies the requirements of Section 11-54B-44 has been filed with the clerk of the municipality.
(2) The area described in the self-help business improvement plan would benefit from being designated as a self-help business improvement district.
(3) The self-help business improvement district plan required by Section 11-54B-44 includes a designated district management corporation to provide administrative and other services to benefit businesses, employees, residents, and consumers in the self-help business improvement district.
(4) The self-help business improvement district plan includes a special assessment which will be levied by the municipality on the owners of the real property or, in certain cases, on businesses of a particular class, located within the geographical area of the district to finance the supplemental services described in the plan and that the special assessment is expected to produce revenue which is consistent with the annual budget adopted and approved as provided in this article.
(5) The copies of the articles of incorporation and bylaws of the district management corporation shall satisfy the requirements of Section 11-54B-48.
(6) It is in the best interest of the Class 2 municipality and the public to designate the geographical area described in the plan as a self-help business improvement district and to designate a district management corporation to provide administrative and other services to the district.
(7) The existing level of publicly funded services provided by the municipality in the geographical area of the proposed district has been documented in writing and certified by the mayor of the municipality.
*(Act 2004-382, p. 626, §4; Act 2019-200, §2.)*
##### **§ 11-54B-44** Requirements of a Request for the Creation of a Self-Help Business Improvement District {#sec-11-54b-44 omnilex-key=us-al-statutes--title-11--11-54B-44}
A request for the creation of a self-help business improvement district shall contain all of the following:
(1) The signatures of a representative group of the owners of the nonexempt real property located within the geographical area of the proposed district. The group shall include the signatures of the owners of the nonexempt real property comprising at least 60 percent of the total fair market value of all nonexempt real property located in the proposed district and the signature of an owner of at least 50 percent of the parcels of property located within the proposed district. The county property tax assessment records shall determine ownership of real property and the fair market value. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by statute, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed the owner of the real property.
(2) Alternatively, in the case of a district formed to increase tourism within the municipality, the signatures of a representative group of the owners of the designated class of businesses located within the geographical area of the proposed district. The request shall define the designated class of businesses. The group shall include the signatures of the owners of businesses comprising at least 60 percent of the proposed annual assessment and the signatures of the owners of at least 50 percent of the number of the businesses of the designated class located within the proposed district. The municipality’s records shall determine ownership of businesses. If, however, the assessment methodology is based on a fixed rate per occupied room per night, the group shall include the signatures of the owners of businesses comprising at least 60 percent of the number of rooms within the district and the signatures of the owners of at least 50 percent of the number of businesses of the designated class located within the proposed district.
(3) An accurate description, whether by metes and bounds, or by lot and block numbers, or by street addresses, of the proposed district.
(4) A self-help business improvement district plan that shall include all of the following:
a. A description of the supplemental services to be provided in the district.
b. A budget outlining the annual cost of the supplemental services described in paragraph a.
c. A description of the method which will be used to determine the amount of the special assessment to be levied on the owners of the real property or, in the case of a district formed to increase tourism within the municipality, on businesses of a designated class, in either case located within the geographical area of the district to finance the supplemental services described in paragraph a. If the district is formed to increase tourism within the municipality, special assessments may be levied based on the business activity, including, but not limited to, a percentage of gross revenue or a fixed rate per occupied room per night on parcels of property or on businesses of a designated class within the district. If the assessment is levied on businesses of a designated class, all other provisions of this article referring to property assessment shall also include assessments against the businesses.
d. The number of years, not to exceed five years, that the special assessments described in paragraph c. will be levied.
e. Copies of the articles of incorporation and bylaws of the district management corporation designated by the plan to provide the administrative and other services to the district.
*(Act 2004-382, p. 626, §5; Act 2019-200, §2.)*
##### **§ 11-54B-45** Mailing of Proposed Ordinance and Notice of Hearing {#sec-11-54b-45 omnilex-key=us-al-statutes--title-11--11-54B-45}
At least 20 days prior to the date set for a public hearing on the proposed self-help business improvement district plan, notice of the date, time, and place of the hearing, with a description of the geographical area proposed to be included in the district, the proposed ordinance, and the self-help business district plan shall be mailed to all known owners of nonexempt real property located within the geographical area proposed to be included in the district by the municipality. The notice shall be mailed to all known owners of nonexempt real property at the address listed in the county property tax assessment records. In addition, a copy of the notice shall be posted in at least three places located within the geographical area proposed to be included in the district. A property owner’s failure to receive a copy of the notice shall not constitute grounds to contest the validity of a self-help business improvement district established by ordinance. Alternatively, in the case of a district formed to increase tourism within the municipality, the notices required shall be mailed to the owners of the businesses of the designated class, but the failure of a business owner or business to receive a copy of the notice shall not constitute grounds to contest the validity of a self-help business improvement district established by ordinance.
*(Act 2004-382, p. 626, §6; Act 2019-200, §2.)*
##### **§ 11-54B-46** Review of Self-Help Business Improvement District Plan and Adoption of Ordinance {#sec-11-54b-46 omnilex-key=us-al-statutes--title-11--11-54B-46}
The governing body of the municipality, upon review of the self-help business improvement district plan and after public hearing, may adopt an ordinance to designate, establish, and maintain the area described in the plan as a self-help business improvement district. The ordinance shall provide for an effective date of 30 days from the date of adoption of the ordinance by the governing body of the municipality and shall provide that, if the owners of nonexempt real property representing 60 percent of the total fair market value of all real property located within the district, or the owners of at least 50 percent of the parcels of property located within the district; or, alternatively with respect to a district funded by assessments against a particular class of businesses, if the owners of businesses, consistent with the signatures required under subdivision (2) of Section 11-54B-44, file written objections to the establishment of the district with the clerk of the municipality, the provisions of the ordinance shall be null and void and no district shall be created. The ordinance shall designate the district management corporation provided for in the plan as the district management corporation authorized to provide administrative and other services to the district and authorize the execution of a contract between the municipality and the district management corporation setting out the services to be provided by the district and the municipality. The contract shall provide that the municipality shall continue the same level of services in the district as provided prior to the creation thereof.
*(Act 2004-382, p. 626, §7; Act 2019-200, §2.)*
##### **§ 11-54B-47** Costs of Supplemental Services {#sec-11-54b-47 omnilex-key=us-al-statutes--title-11--11-54B-47}
(a) The self-help business improvement district ordinance adopted by the municipality pursuant to Section 11-54B-46 shall provide that all costs of the supplemental services provided in a self-help business improvement district shall be financed through the levy by the municipality of a special assessment on the owners of the real property located within the geographical area of the district or, in the case of a district formed to increase tourism in the municipality, on businesses of the designated class within the geographical area of the district, and in either case shall designate the method set forth in the plan as the method used to determine the amount of the special assessment in a manner which fairly and equitably distributes the burden of financing the supplemental services among the nonexempt real property owners in the district. The ordinance shall list and describe, by lot and block numbers and by street addresses, all real properties or businesses against which the special assessment shall be made to fund the supplemental services. The ordinance shall also provide that property which is a single-family, owner-occupied residential property shall be exempt from the special assessment imposed by the district management corporation to finance the supplemental services provided in the business improvement district. Further, all property of utilities shall be deemed personal property exempt from the special assessment imposed by the district management corporation except for land and retail, storage, and office facilities owned by a utility within the business improvement district.
(b) The nonprofit corporation designated as a district management corporation under this article shall be exempt from the state corporate income tax, corporate franchise tax, and permit fee, and from state, county, and municipal sales, use, license, gross receipts, and ad valorem taxes.
*(Act 2004-382, p. 626, §8; Act 2019-200, §2.)*
##### **§ 11-54B-48** Collection of Special Assessment {#sec-11-54b-48 omnilex-key=us-al-statutes--title-11--11-54B-48}
(a) The self-help business improvement district ordinance adopted by the municipality pursuant to Section 11-54B-46 shall provide that the special assessment levied on the owners of the real property located within the geographical area of the district shall be collected by the district management corporation, by the offices of the municipal revenue department, or by the offices of the revenue commissioner, who may be compensated for the service. Except in the case of an assessment against a designated class of business, the ordinance shall also provide that the amount of any outstanding special assessment levied on a parcel of real property, together with any accrued interest and penalties, shall constitute a lien on the property. The lien shall take precedence over all other liens, whether created prior or subsequent to the date of the special assessment, except a lien for any of the following:
(1) State, county, or municipal taxes.
(2) A prior special assessment.
(3) A prior recorded mortgage, deed of trust, or similar security instrument.
(b) Other than foreclosures for state, county, or municipal taxes, a prior special assessment, or a prior recorded mortgage, deed of trust, or similar security instrument, the lien for the special assessment shall not be defeated or postponed by any private or judicial sale, or by any mortgage, deed of trust, or similar security instrument recorded subsequent to the date of final adoption by the municipality of the self-help business improvement district ordinance. No error in the proceeding of the governing body of the municipality or of the board of directors of the district management corporation shall exempt any real property from the lien or from payment thereof.
*(Act 2004-382, p. 626, §9; Act 2019-200, §2.)*
##### **§ 11-54B-49** Amendment of the Self-Help Business Improvement District Ordinance {#sec-11-54b-49 omnilex-key=us-al-statutes--title-11--11-54B-49}
(a) The governing body of the municipality may amend an ordinance relating to the self-help business improvement district upon the written request of a representative group of the owners of the nonexempt real property located within the geographical area of the district. The request shall specify the desired amendment or amendments which should be made by the governing body of the municipality to the self-help business improvement district ordinance. The request shall also include the signatures of the owners of the nonexempt real property comprising at least 60 percent of the total fair market value of all real property located in the district, or the owners of at least 50 percent of the parcels of property located within the district; or, alternatively with respect to a district funded by assessments against a particular class of businesses, the signatures of the owners of businesses, consistent with the signatures required under subdivision (2) of Section 11-54B-44, determined pursuant to subdivisions (1) and (2) of Section 11-54B-44.
(b) Except for districts funded by assessments against businesses of a particular class, the governing body of the municipality may amend the self-help business improvement district ordinance to reduce or expand the real property comprising the self-help business improvement district in accordance with this subsection as follows:
(1) The ordinance may be amended to reduce the real property comprising the district following the submission of a request for reduction by the board of directors of the district management corporation.
(2) The ordinance may be amended to expand the real property comprising the district following the submission of a request for expansion by both of the following:
a. The owners of real property located within the area that is to be newly included within the district as provided in subdivision (3).
b. The board of directors of the district management corporation.
(3) Where a request for expansion is sought under this subsection, the request shall contain the signatures of the owners of nonexempt real property comprising at least 60 percent of the total fair market value of all nonexempt real property located in the geographical area to be added to the district and the signatures of the owners of at least 50 percent of the parcels of property located in the geographical area to be added to the district. Ownership of real property and the fair market value thereof shall be determined using the records of the tax assessor. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by statute, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed the owner of the real property.
(4) A request for expansion or reduction shall include an accurate description, whether by metes and bounds, by lot and block numbers, or by street addresses, of the geographical area which is the subject of the reduction or expansion, as well as a similar description of the resulting district if such reduction or expansion was approved.
(5) At least 20 days prior to the date set for a public hearing on the proposed self-help business improvement district reduction or expansion, notice of the date, time, and place of the hearing, together with a description of the geographical area which is the subject of the reduction or expansion, shall be mailed to all known owners of nonexempt real property located within the geographical area which is the subject of the reduction or expansion, as ownership shown on the records of the tax assessor. In addition, a copy of the notice shall be posted in at least three places located within the geographical area which is the subject of the reduction or expansion. A property owner’s failure to receive a copy of the notice shall not constitute grounds upon which the owner may contest the validity of a self-help business improvement district amendment.
(6) The municipality, upon review of the request for the reduction or expansion of the self-help business improvement district and after public hearing, may adopt an ordinance reducing or expanding the self-help business improvement district. The ordinance shall provide for an effective date which is 60 days from the date of adoption of the ordinance by the municipality and shall provide that, if the owners of real property which represent 50 percent or more by number of all parcels of real property located within the geographical area of the resulting district file written objections to the establishment of the district with the clerk of the municipality, the provisions of such ordinance shall be null and void and no reduction or expansion shall occur. The ordinance shall provide that the contract between the municipality and the district management corporation setting out the services to be provided by the district and the municipality shall be amended to provide that the same level of services provided by the municipality shall continue as before the reduction or expansion of the real property comprising the self-help business improvement district.
(c) There shall be no requirement that the real property located within the geographical area of the self-help business improvement district be contiguous.
*(Act 2004-382, p. 626, §10; Act 2019-200, §2.)*
##### **§ 11-54B-50** District Management Corporation Limits, Powers, and Duties {#sec-11-54b-50 omnilex-key=us-al-statutes--title-11--11-54B-50}
(a) District management corporations provided for in this article shall be incorporated under the Alabama Nonprofit Corporation Act, Chapter 3 of Title 10A, and shall exercise their powers in a manner consistent with that law.
(b) To qualify for designation by ordinance to manage a self-help business improvement district, the articles of incorporation of a proposed district management corporation shall provide all of the following:
(1) That a board of directors shall manage the property, business, and affairs of the corporation.
(2) The names and addresses of the initial members of the board of directors.
(3) That the initial members of the board shall be divided into three groups which are as equal in number as is possible, that those groups will serve for initial terms of one, two, and three years respectively, and that all directors thereafter elected by the board of directors shall serve for a term of three years.
(4) That the members of the board of directors elected after the expiration of the initial terms set forth in subdivision (3) shall be elected by a majority vote of the owners of assessed real property or, in the case of districts funded by assessments against a particular class of businesses, of businesses of the designated class and dues paying members present after notice by first class mail.
(5) That a majority of the board of directors own real property or, in the case of districts funded by assessments against a particular class of businesses, of businesses of the designated class located in the geographical area of the district.
(6) That no funds received by the corporation from assessments on the property or businesses located in the district shall be expended except in accordance with the budget adopted or amended under the provisions of this article.
(7) That vacancies on the board of directors resulting from death, resignation, or removal shall be filled by the remaining members of the board of directors of the district management corporation for the unexpired portion of the term.
(8) That at least once a year after designation, the corporation shall hold a general membership and public meeting appropriately advertised in the district at a place convenient to persons concerned with the operation of the district.
(9) That the corporation shall receive written suggestions from businesses in the district at any time.
(10) That municipal representatives designated by the mayor and by the governing body of the municipality shall be authorized to attend and participate in regular and called meetings of the board of directors of the district management corporation, but shall not vote on any matters considered by directors.
(11) That no amendment to the articles of incorporation or any bylaws shall be effective unless approved by the board of directors of the district management corporation.
(12) That a director shall receive no compensation for his or her service as a director, but shall be entitled to receive reimbursement for expenses actually incurred in the performance of his or her duties as approved by the board.
(13) That upon dissolution, or upon any withdrawal of the designation as the district management corporation, all interests in and title to funds held by or for the corporation, and all property of the corporation shall be transferred and assigned to a successor district management corporation, or if no successor district management corporation exists, to the general fund of the municipality for use in funding the programs as the board of directors of the district management corporation shall direct and designate.
(c) The district management corporation may do all things necessary to implement its purposes, including, but not limited to, the following:
(1) Adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its functions and duties.
(2) Employ persons as may be required and fix and pay their compensation from funds available to the corporation.
(3) Apply for, accept, administer, and comply with the requirements respecting an appropriation of funds or a gift, grant, or donation of property or money.
(4) Make and execute agreements as may be necessary or convenient to the exercise of the powers and functions of the corporation, including contracts with any person, firm, corporation, governmental agency, or other entity.
(5) Administer and manage corporate funds and accounts and pay corporate obligations.
(6) Borrow money from private lenders or from governmental entities.
(7) Enforce the conditions of any loan, grant, sale, or lease made by the corporation.
(8) Provide security, sanitation, and other services to the district supplemental to those provided by the municipality.
(9) Advertise the district and businesses included within the district.
(10) Recruit new businesses to fill vacancies in the district.
(11) Organize and promote special events in the district.
(12) Provide special parking arrangements or management of ongoing parking programs for the district.
(13) Participate in other governmental programs which are qualified and included in its approval plan.
(14) Undertake other activities or initiatives within the district as the board of directors of the district management corporation deem appropriate.
*(Act 2004-382, p. 626, §11; Act 2019-200, §2.)*
##### **§ 11-54B-51** Annual Budget of the District Management Corporation {#sec-11-54b-51 omnilex-key=us-al-statutes--title-11--11-54B-51}
(a) The officers of the district management corporation shall submit a detailed annual budget for approval by its board of directors including proposed expenditures and proposed sources of funding, which may include voluntary donations. The budget shall explain how it contributes to goals and objectives for the business improvement district.
(b) The budget shall be introduced, approved, amended, and adopted by resolution passed by not less than a majority of the full membership of the board of directors. The procedure for passing a budget shall be as follows:
(1) Introduction and preliminary approval of the budget.
(2) Public advertising of the budget.
(3) Public hearing relating to the budget.
(4) Amendments to the budget and public hearings relating to those amendments.
(5) Adoption of the budget.
(6) No budget shall be adopted until a public hearing has been held thereon and all persons having an interest therein have been given an opportunity to present objections.
(c) The board of directors may amend the budget during or after the public hearing.
(d) No amendment to the budget by the board of directors shall be effective until taxpayers and all persons having an interest therein have been granted a public hearing thereon, if the amendment does or provides for any of the following:
(1) Adds a new item in an amount in excess of 10 percent of the total amount as stated in the approved budget.
(2) Increases or decreases any item within the budget by more than 10 percent of the amount stated in the approved budget for the item.
(3) Increases the amount needed to be raised by special assessment by more than 10 percent of the total special assessment revenues stated in the approved budget.
*(Act 2004-382, p. 626, §12.)*
##### **§ 11-54B-52** Retention of Municipal Police Powers {#sec-11-54b-52 omnilex-key=us-al-statutes--title-11--11-54B-52}
Notwithstanding the improvement of any street or sidewalk incident to a self-help business improvement district, the municipality and its governing body shall retain its police powers and other rights and powers relating to any streets or parts thereof constituting or included in a self-help business improvement district, and no action shall be interpreted or construed to be a vacation, in whole or in part, of any municipal street or part thereof, it being intended that the establishment of a self-help business improvement district pursuant to this article is a matter of regulation only.
*(Act 2004-382, p. 626, §13.)*
##### **§ 11-54B-53** Eminent Domain Utilization {#sec-11-54b-53 omnilex-key=us-al-statutes--title-11--11-54B-53}
No self-help business improvement district or district management corporation shall have the power of eminent domain.
*(Act 2004-382, p. 626, §14.)*
##### **§ 11-54B-54** Furniture, Structure of Facility Not Deemed Nuisance {#sec-11-54b-54 omnilex-key=us-al-statutes--title-11--11-54B-54}
Any movable furniture, structure, facility, or appurtenance or activity located or permitted in connection with a self-help business improvement district shall not, by reason of location or use, be deemed a nuisance or unlawful obstruction or condition, notwithstanding any rule or regulation or principle of law pertaining to the use of public streets and highways and neither the municipality nor any user acting under permit shall be liable for any injury to person or property, unless the furniture, structure, facility, or use shall be negligently constructed, maintained, or operated.
*(Act 2004-382, p. 626, §15.)*
##### **§ 11-54B-55** District Management Corporation Contracts {#sec-11-54b-55 omnilex-key=us-al-statutes--title-11--11-54B-55}
The municipalities, by ordinance, may authorize the district management corporation to contract construction and maintenance work to be done on any street or streets, or on other municipal property included in the self-help business improvement district. The plans and specifications of any construction work to be contracted shall be approved by the municipal engineer prior to initiation of any actions for the awarding of a contract under this article.
*(Act 2004-382, p. 626, §16.)*
##### **§ 11-54B-56** Operation in Other Designated Project Areas {#sec-11-54b-56 omnilex-key=us-al-statutes--title-11--11-54B-56}
This article shall not prohibit a municipality from including a self-help business improvement district within the bounds of any area, district, or zone including any enterprise zone established pursuant to law which has as one of its purposes the encouragement of the construction of improvements or the rehabilitation of properties located within those boundaries, or the inducement of private enterprises to locate within those boundaries, whether by tax credits, exemptions, or abatements, or by special public financing arrangements.
*(Act 2004-382, p. 626, §17.)*
##### **§ 11-54B-57** Annual Reports and Audits {#sec-11-54b-57 omnilex-key=us-al-statutes--title-11--11-54B-57}
(a) Within 90 days after the close of each fiscal year, the district management corporation shall make an annual report of its activities for the preceding fiscal year to the governing body of the municipality.
(1) Each annual report shall include, at a minimum:
a. A financial statement for the preceding year, including a balance sheet, statement of income and loss, and such other information as is reasonably necessary to reflect the district management corporation’s actual performance, certified by the treasurer of the corporation.
b. The budget for the current fiscal year.
c. In the case of a district funded by assessments against businesses of a particular class, a list of the businesses of the designated class that are currently operating within the district.
(2) A copy of each annual report shall be sent to the mayor, the city council, and to all property owners, or in the case of districts funded by assessments against businesses of a particular class, business owners of the self-help business improvement district, in each case by first class mail or by personal delivery.
(b) Within 90 days after the close of each fiscal year, the district management corporation shall cause an annual audit of its books, accounts, and financial transactions to be made and filed with the municipality and for that purpose the corporation shall employ a certified public accountant. The annual audit shall be completed and filed with the governing body within four months after the close of the fiscal year of the corporation and a certified duplicate copy of the audit shall be filed with the mayor and the finance director or other financial control officer of the municipality.
*(Act 2004-382, p. 626, §18; Act 2019-200, §2.)*
##### **§ 11-54B-58** Sunset Provision {#sec-11-54b-58 omnilex-key=us-al-statutes--title-11--11-54B-58}
(a) Within 90 days after the adoption and approval of the fifth annual budget for any self-help business improvement district, the municipality shall set a hearing to determine whether the district should be continued, modified, or terminated. At least 20 days before the hearing, notice of the date, place, and time of the hearing shall be posted in at least three places within the district and mailed, along with the new district management plan, which shall contain the items described in subdivision (4) of Section 11-54B-44, to each real property or business owner who paid assessments to the district during the previous year as certified by an officer of the district management corporation collecting such assessments, the officers of the municipal revenue department, or the offices of county tax assessor and county tax collector, if they are the billing and collecting agency.
(b) At this hearing, if a petition presented to the municipality objecting to the continuation of the district is signed by non-exempt real property owners representing 60 percent of the total fair market value of all real property located within the district and the owners of at least 50 per cent of the parcels of real property located within the district; or, alternatively with respect to a district funded by assessments against businesses of a particular class, signed by owners of businesses consistent with the signatures required under subdivision (2) of Section 11-54B-44, the district shall be terminated as of the end of the fiscal year next following the hearing.
*(Act 2004-382, p. 626, §19; Act 2019-200, §2.)*
#### **Article 3** Self-Help Business Improvement Districts in Class 3 Municipalities
##### **§ 11-54B-80** Legislative Findings {#sec-11-54b-80 omnilex-key=us-al-statutes--title-11--11-54B-80}
(a) The Legislature makes the following findings:
(1) Patterns of urban development have had substantial adverse impacts upon downtown and community business districts vital to the economy of the State of Alabama.
(2) The public interest would be advanced by authorizing the creation of self-help business improvement districts and district management corporations to assist any Class 3 municipality in promoting economic growth in business districts.
(3) The public interest would also be advanced by authorizing the creation of self-help business improvement districts to assist any Class 3 municipality to increase tourism with the support of businesses of a particular class.
(4) A district management corporation representing real property owners, or in certain cases, owners of a particular class of business, within self-help business improvement districts can assist any Class 3 municipality in promoting economic growth and employment or tourism by funding supplemental business services through the levy of assessments on real property owners or owners of a particular class of business.
(5) Any Class 3 municipality should be authorized to create self-help business improvement districts and designate a district management corporation to execute self-help programs to improve the local business or tourism climate.
(b) The Legislature further finds that it is the public policy of the State of Alabama to permit any Class 3 municipality to protect the public welfare and the interests of the public in the safe effective movement of persons, to encourage healthy economic development and tourism, to promote jobs, and to preserve and enhance the function and appearance of business districts located within any Class 3 municipality through the adoption of ordinances as authorized by this article.
*(Act 2023-253, §1.)*
##### **§ 11-54B-81** Definitions {#sec-11-54b-81 omnilex-key=us-al-statutes--title-11--11-54B-81}
As used in this article, the following words and phrases have the following meanings:
(1) AREA. In the case of a self-help business improvement district formed to promote economic growth, the geographical area or areas comprising the parcels of real property designated to be located within the district, regardless of whether the individual parcels are subject to the special assessment.
(2) DISTRICT MANAGEMENT CORPORATION. An entity created by incorporation under the Alabama Nonprofit Corporation Act, Chapter 3 of Title 10A, and designated by ordinance by the municipality to administer and provide services to a self-help business improvement district.
(3) DISTRICT MEMBER. In the case of a self-help business improvement district established to promote economic growth, an owner of real property who is to benefit from and pay the special assessment to fund supplemental services or, in the case of a self-help business improvement district established to increase tourism, an owner or operator of a business in a particular class who is to benefit from and pay the special assessment to fund supplemental services.
(4) MUNICIPALITY. Any Class 3 municipality as defined in Section 11-40-12.
(5) OWNER OF REAL PROPERTY. In the case of a self-help business improvement district to promote economic growth, an owner of any parcel of real property who is to benefit from and pay the special assessment under the self-help business improvement plan.
(6) SELF-HELP BUSINESS IMPROVEMENT DISTRICT or DISTRICT. An area within the municipality designated by ordinance in which a special assessment may be levied on the owners of real property located within the area to provide supplemental services in order to promote the economic growth of the district or, alternatively, an area or areas designated by ordinance in which a special assessment may be levied on businesses of a particular class located within the area or areas to provide supplemental services in order to increase tourism in the municipality.
*(Act 2023-253, §2.)*
##### **§ 11-54B-82** Development and Maintenance of Self-Help Business Improvement Districts {#sec-11-54b-82 omnilex-key=us-al-statutes--title-11--11-54B-82}
A municipality, by ordinance, may provide for the creation and maintenance of one or more self-help business improvement districts pursuant to this article. This article is intended as the exclusive procedure by which a Class 3 municipality may create and maintain a self-help business improvement district.
*(Act 2023-253, §1.)*
##### **§ 11-54B-83** Findings Required for a Public Hearing on the Adoption of a Self-Help Business Improvement District Ordinance {#sec-11-54b-83 omnilex-key=us-al-statutes--title-11--11-54B-83}
A public hearing on the adoption of an ordinance creating a self-help business improvement district may be called only if the governing body of a municipality finds all of the following:
(1) That a request for the creation of a self-help business improvement district which satisfies the requirements of Section 11-54B-84 has been filed with the clerk of the municipality.
(2) That the area described in the self-help business improvement district plan would benefit from being designated as a self-help business improvement district.
(3) That the self-help business improvement district plan includes a designated district management corporation to provide administrative and other services to benefit businesses, properties, employees, residents, and consumers in the self-help business improvement district.
(4) That the self-help business improvement district plan includes a special assessment that will be levied by the municipality on the district members to finance the supplemental services described in the plan, and that the assessment is expected to produce revenue that is consistent with the annual budget adopted and approved as provided in this article.
(5) That the copies of the articles of incorporation and bylaws of the district management corporation satisfy the requirements of Section 11-54B-89.
(6) That it is in the best interest of the municipality and the public to designate the area described in the plan as a self-help business improvement district.
(7) That the existing level of publicly funded services provided by the municipality in the geographical area of the proposed district has been documented in writing and certified by the mayor of the municipality.
*(Act 2023-253, §1.)*
##### **§ 11-54B-84** Requirements of a Request for the Creation of a Self-Help Business Improvement District {#sec-11-54b-84 omnilex-key=us-al-statutes--title-11--11-54B-84}
A request for the creation of a self-help business improvement district shall contain all of the following:
(1) In the case of a district formed to promote economic growth within the municipality, the signatures of the owners of real property comprising at least 60 percent of the total fair market value of all real property located within the proposed district and the signatures of owners owning at least 50 percent of parcels of real property within the proposed district or, in the case of a district formed to increase tourism, the signatures of the owners or operators of the businesses in a particular class who would pay at least 60 percent of the total amount of the self-help improvement district special assessment to be levied and the signatures of the owners of at least 50 percent of the number of the businesses in a particular class located within the proposed district, in accordance with the following requirements:
a. There shall be no requirement that the real property or the businesses in a particular class located within the area of a district be contiguous, as long as there is an accurate description of the proposed district, whether by lot and block numbers, by street addresses, or by metes and bounds.
b. The county property tax records of the assessor or revenue commissioner shall determine ownership of real property and the fair market value for a district proposed to promote economic development.
c. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by law, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed to be the owner of the real property for a district proposed to promote economic development.
d. In the case of a district formed to increase tourism, the municipality’s records shall determine the ownership of the businesses in a particular class.
(2) Copies of the self-help business improvement district plan, which shall include all of the following:
a. A description of the supplemental services to be provided to the district members with an explanation of how the services promote economic development or increase tourism.
b. A budget outlining the annual cost of the supplemental services described in paragraph a.
c. A description of the method that will be used to determine the amount of the special assessment to be levied on the district members to finance the supplemental services described in paragraph a., including all of the following:
1. A description of how the methodology equitably apportions the burden of the special assessment among the district members.
2. In the case of a district to promote economic growth, a list, by lot and block numbers or by street addresses, of all real properties whose owners will benefit from and pay the special assessment, including all of the following:
(i) A clear presentation of any different classes of real property to be levied at different rates based on the fair market value or land use as reflected in the county tax records of the assessor or revenue commissioner, or based on another methodology.
(ii) Any exemptions from, or reductions to, the special assessment based on the benefit to the district member.
d. The number of years, not to exceed five years, that the special assessment described in paragraph c. shall be levied.
e. Copies of the articles of incorporation and bylaws of the district management corporation designated by the plan to provide the administrative and other services to the district.
*(Act 2023-253, §1.)*
##### **§ 11-54B-85** Notice Requirements {#sec-11-54b-85 omnilex-key=us-al-statutes--title-11--11-54B-85}
(a)(1) At least 20 days prior to the date set for a public hearing on the proposed self-help business improvement district plan, notice of the date, time, and place of the hearing, with a description of the area proposed to be included in the district, the proposed ordinance, and the self-help business improvement district plan shall be mailed to all prospective district members.
(2) In the case of a proposed district to promote economic growth, the notice shall be mailed to all known owners of real property at the address listed in the county property tax records of the assessor or the revenue commissioner.
(3) In the case of a proposed district to increase tourism, the notices shall be mailed to the owners of the businesses in the particular class that is to comprise the district.
(b) A copy of the notice shall be posted in at least three places located within the area proposed to be included in the district and on the municipality’s website. (c) An owner of real property or a business owner in the particular class may not contest the validity of a self-help business improvement district established by ordinance on the grounds that he or she did not receive a copy of the notice.
*(Act 2023-253, §1.)*
##### **§ 11-54B-86** Review of Self-Help Business Improvement District Plan and Adoption of Ordinance {#sec-11-54b-86 omnilex-key=us-al-statutes--title-11--11-54B-86}
(a) The governing body of the municipality, upon review of the self-help business improvement district plan and after public hearing, by ordinance, may designate, establish, and maintain the area described in the plan as a self-help business improvement district.
(b) The ordinance shall include all of the following:
(1) A statement that the district shall take effect 30 days after the date of adoption of the ordinance.
(2) A statement that the district management corporation provided for in the plan shall provide administrative and other services to the district.
(3) A statement that the municipality and the district management corporation are authorized to enter a contract setting out the services to be respectively provided by the district and the municipality, and providing that the municipality shall continue the same level of services in the district as provided before its creation.
(4) In the case of a district formed to promote economic development, a list of all real properties by street addresses which shall benefit from and pay the special assessment, accompanied with a map of the district area or, in the case of a district formed to increase tourism, a list of all businesses in a particular class by street address which shall benefit from and pay the special assessment.
(5) A summary of the proposed supplemental services to promote economic growth or increase tourism, which shall be funded by a levy of a special assessment on the district members.
(6) An adequate description of the method used to determine the special assessment, including different assessment rates if applicable, and how the burden of the special assessment is equitably apportioned among district members.
*(Act 2023-253, §1.)*
##### **§ 11-54B-87** Collection of Special Assessment {#sec-11-54b-87 omnilex-key=us-al-statutes--title-11--11-54B-87}
(a) The special assessment to be levied in order to fund supplemental services in the self-help business improvement district shall be collected by the district management corporation or the municipal revenue department.
(b) The ordinance adopted by the governing body of the municipality establishing the district shall include, in addition to the requirements of Section 11-54B-86, a notice that contains both of the following:
(1) A statement that the amount of any delinquent special assessment levied on a district member, together with any accrued interest and penalties, shall be a lien on the real property or business in a particular class with priority over all other liens, whether created before or after the date of the special assessment, except a lien for any of the following:
a. State, county, or municipal taxes.
b. A prior special assessment.
c. A prior recorded mortgage, deed of trust, or similar security instrument.
(2) A statement that except for foreclosures for state, county, or municipal taxes, a prior special assessment, or a prior recorded mortgage, deed of trust, or similar security instrument, the lien for the special assessment shall not be defeated or postponed by any private or judicial sale, or by any mortgage, deed of trust, or similar security instrument recorded after the date of final adoption by the municipality of the self-help business improvement district ordinance.
(c) Any defect in the proceeding of the governing body of the municipality or of the board of directors of the district management corporation shall not exempt any owner of real property or business in the particular class from the lien or from payment thereof.
*(Act 2023-253, §1.)*
##### **§ 11-54B-88** Modification of the District Plan {#sec-11-54b-88 omnilex-key=us-al-statutes--title-11--11-54B-88}
(a) The board of directors of the district management corporation may adopt a resolution recommending to the governing body of the municipality a modification of the district plan at a regular board meeting by one of the following methods:
(1) By agreement of the board of directors.
(2) Upon written request made to the board of directors by, in the case of a district formed to promote economic growth, the signatures of owners of real property consistent with the signatures required under Section 11-54B-84(1) or, in the case of a district formed to increase tourism, the signatures of owners of businesses in a particular class required under Section 11-54B-84(1).
(b) The resolution of the board of directors of the district management corporation pursuant to subsection (a) shall include a request to the governing body of the municipality to approve the proposed modification to the district plan and shall be transmitted to the governing body for consideration at a public hearing.
(c)(1) At least 20 days prior to the date set for a public hearing on the proposed modification of the self-help business improvement district ordinance, notice of the date, time, and place of the hearing shall be mailed to all district members.
(2) A copy of the notice shall be posted in at least three public places located within the district and on the websites of the municipality and the district.
(3) At the hearing, the municipality may approve the proposed modification to the district plan by adopting an ordinance reflecting the modification if the governing body finds that it is consistent with Section 11-54B-83.
(4) A district member may not contest the validity of the modification of the district plan established by ordinance on the grounds that he or she did not receive a copy of the hearing notice.
(d)(1) The governing body of the municipality may modify the ordinance approving the district in the case of a district formed to promote economic growth, to either enlarge or reduce the area of the district following submission of a resolution by the board of directors requesting the enlargement or reduction of the district.
(2)a. Where a request for expansion is sought under this subsection, the request shall contain the signatures of the owners of real property located in the area to be added to the district consistent with the signatures required under Section 11-54B-84(1).
b. The county property tax records of the assessor or the revenue commissioner shall determine ownership of the property and the fair market value.
c. When record title to real property is vested in a public corporation or authority under a bond financing plan provided for by law, the beneficial user of the real property in which title may ultimately be vested by purchase shall be deemed to be the owner of the real property.
(3) A resolution by the board of directors requesting expansion or reduction of the district area shall include an accurate description of the area that is the subject of the expansion or reduction, whether by metes and bounds, by lot and block numbers, or by street addresses, with the district plan as modified, and accompanied with a map of the resulting district if the expansion or reduction is approved.
(4)a. At least 20 days prior to the date set for a public hearing on the proposed expansion or reduction, notice of the date, time, and place of the hearing, together with a description of the area that is the subject of the expansion or reduction, shall be mailed to all owners of real property located within the area who are the subject of the reduction or all prospective owners of real property in the area who are the subject of the expansion at the address listed in the county property tax assessment records.
b. A copy of the notice shall be posted in at least three public places located within the area that is the subject of the reduction or expansion and on the websites of the municipality and the district.
c. An owner of real property may not contest the validity of the reduction or expansion of the district on the grounds that he or she did not receive a copy of the notice.
(5) The municipality, upon review of the request for the expansion or reduction of the self-help business improvement district and after public hearing, by ordinance, may expand or reduce the self-help business improvement district as modified which shall include all of the following:
a. An effective date that is 30 days after the date of adoption of the ordinance by the municipality.
b. Provide that the modification in the district area is consistent with Section 11-54B-83.
c. Provide that the contract between the municipality and the district management corporation setting out the services to be respectively provided by the district and the municipality shall be amended to provide that the same level of services provided by the municipality shall continue as before the expansion or reduction of the area comprising the self-help business improvement district.
*(Act 2023-253, §1.)*
##### **§ 11-54B-89** District Management Corporation Limits, Powers, and Duties {#sec-11-54b-89 omnilex-key=us-al-statutes--title-11--11-54B-89}
(a) District management corporations provided for in this article shall be incorporated under the Alabama Nonprofit Corporation Act, Chapter 3 of Title 10A, and shall exercise their powers in a manner consistent with that law.
(b) To qualify for designation by ordinance to manage a self-help business improvement district, the articles of incorporation of a proposed district management corporation shall provide all of the following:
(1) That a board of directors, numbering no fewer than three and no more than 13, shall manage the property, business, and affairs of the corporation.
(2) The names and addresses of the initial members of the board of directors.
(3) That the initial members of the board shall be divided into three groups that are as equal in number as is possible, with those groups serving initial terms of one, two, and three years respectively, and all directors thereafter elected shall serve for a term of three years, provided that the district is renewed pursuant to Section 11-54B-97.
(4) That the members of the board of directors elected after the expiration of the initial terms set forth in subdivision (3) shall be elected by a majority vote of the district members after notice by first class mail.
(5) That the majority of the board of directors shall be district members.
(6) That bylaws shall be adopted providing for officers of the corporation consistent with Chapter 3 of Title 10A, including their qualifications, appointment, and terms.
(7) That no funds received by the corporation from assessments on the district members shall be expended except in accordance with the budget adopted or amended under the provisions of this article.
(8) That vacancies on the board of directors resulting from death, resignation, or removal shall be filled by the remaining members of the board of directors for the unexpired portion of the term.
(9) That at least once a year after creation of the district, the corporation shall hold a general membership and public meeting appropriately advertised in at least three public places within the district area and on the district’s website.
(10) That the corporation shall receive written suggestions from businesses in the district at any time.
(11) That municipal representatives designated by the mayor and by the governing body of the municipality shall be authorized to attend and participate in regular and called meetings of the board of directors, but shall not vote on any matters considered by directors.
(12) That no amendment to the articles of incorporation or any bylaws shall be effective unless approved by the board of directors.
(13) That a director shall receive no compensation for his or her service as a director, but shall be entitled to receive reimbursement for expenses actually incurred in the performance of his or her duties as approved by the board.
(14) That upon dissolution, or upon any withdrawal of the designation as the district management corporation, all interests in and title to funds held by or for the corporation, and all property of the corporation shall be transferred and assigned to a successor district management corporation, or if no successor district management corporation exists, to the general fund of the municipality for use in funding the programs as the board of directors of the district management corporation shall direct and designate.
(c) The district management corporation may do all things necessary to implement its purposes, including, but not limited to, the following:
(1) Adopt bylaws for the regulation of its affairs and the conduct of its business and prescribe rules, regulations, and policies in connection with the performance of its functions and duties.
(2) Employ individuals as may be required and fix and pay their compensation from funds available to the corporation.
(3) Apply for, accept, administer, and comply with the requirements respecting an appropriation of funds or a gift, grant, or donation of property or money.
(4) Enter into contracts as may be necessary or convenient to the exercise of the powers and functions of the corporation, including contracts with any individual, firm, corporation, governmental agency, or other entity.
(5) Administer and manage corporate funds and accounts and pay corporate obligations.
(6) Borrow money from private lenders or from governmental entities.
(7) Enforce the conditions of any loan, grant, sale, or lease made by the corporation.
(8) Provide security, sanitation, and other services to the district supplemental to those provided by the municipality.
(9) Advertise the district and businesses included within the district.
(10) Recruit new businesses to fill vacancies in the district.
(11) Organize and promote special events in the district.
(12) Provide special parking arrangements or manage ongoing parking programs for the district.
(13) Participate in other governmental programs that are qualified and included in its approval plan.
(14) Undertake other activities or initiatives within the district as the board of directors of the district management corporation deem appropriate.
(d) The nonprofit corporation designated as a district management corporation under this article shall be exempt from the state corporate income tax, corporate franchise tax, and permit fee, and from state, county, and municipal sales, use, license, gross receipts, and ad valorem taxes.
*(Act 2023-253, §1.)*
##### **§ 11-54B-90** Annual Budget of the District Management Corporation {#sec-11-54b-90 omnilex-key=us-al-statutes--title-11--11-54B-90}
(a) The officers of the district management corporation shall submit a detailed annual budget for approval by its board of directors, including proposed expenditures and proposed sources of funding, which may include voluntary donations. The budget shall explain how it contributes to the goals for the self-help business improvement district.
(b) The budget shall be introduced, approved, amended, and adopted by resolution passed by not less than a majority of the full membership of the board of directors by the procedure as follows:
(1) Introduction and preliminary approval of the budget.
(2) Public advertising of the budget.
(3) Public hearings relating to the budget.
(4) Amendments to the budget and public hearings relating to those amendments.
(5) Adoption of the budget.
(c) No budget shall be adopted until a public hearing has been held and all persons having an interest therein have been given an opportunity to present objections.
(d) The board of directors may amend the budget during or after the public hearing.
(e) No amendment to the budget by the board of directors shall be effective until district members and all persons having an interest therein have been granted a public hearing, if the amendment does any of the following:
(1) Adds a new item in an amount in excess of 20 percent of the total expenditures as stated in the approved budget.
(2) Increases or decreases any item within the budget by more than 20 percent of the amount stated in the approved budget for the item.
(3) Increases the amount needed to be raised by special assessment by more than 20 percent of the total special assessment revenues stated in the approved budget.
*(Act 2023-253, §1.)*
##### **§ 11-54B-91** Retention of Municipal Police Powers {#sec-11-54b-91 omnilex-key=us-al-statutes--title-11--11-54B-91}
The municipality and its governing body shall retain its police powers and other rights and powers relating to any streets or parts thereof located within the area of a self-help business improvement district.
*(Act 2023-253, §1.)*
##### **§ 11-54B-92** Eminent Domain Utilization {#sec-11-54b-92 omnilex-key=us-al-statutes--title-11--11-54B-92}
No self-help business improvement district or district management corporation shall have the power of eminent domain.
*(Act 2023-253, §1.)*
##### **§ 11-54B-93** Nuisance Exception; Liability {#sec-11-54b-93 omnilex-key=us-al-statutes--title-11--11-54B-93}
No structure, fixture, movable personal property, or activity located in the area of the self-help business improvement district and authorized by the district management corporation, by reason of its location or use, shall be deemed a nuisance or an unlawful obstruction or condition, notwithstanding any law regulating the use of public streets and highways, and neither the municipality, the corporation, nor any user acting under the corporation’s authority shall be liable for any injury to person or property, unless the structure, fixture, moveable personal property, or activity is negligently constructed, maintained, or operated.
*(Act 2023-253, §1.)*
##### **§ 11-54B-94** District Management Corporation Contracts {#sec-11-54b-94 omnilex-key=us-al-statutes--title-11--11-54B-94}
A municipality, by ordinance, may authorize the district management corporation to contract construction and maintenance work to be done on any street or on other municipal property included in the self-help business improvement district, provided that the plans and specifications of any construction work to be contracted shall be approved by the municipal engineer prior to initiation of any actions for the awarding of a contract under this article.
*(Act 2023-253, §1.)*
##### **§ 11-54B-95** Operation in Other Designated Project Areas {#sec-11-54b-95 omnilex-key=us-al-statutes--title-11--11-54B-95}
This article shall not prohibit a municipality from including a self-help business improvement district within the bounds of any area, district, or zone, including any enterprise zone established pursuant to law which has as one of its purposes the encouragement of the construction of improvements or the rehabilitation of properties located within those boundaries, or the inducement of private enterprises to locate within those boundaries, whether by tax credits, exemptions, or abatements, or by special public financing arrangements.
*(Act 2023-253, §1.)*
##### **§ 11-54B-96** Annual Reports and Audits {#sec-11-54b-96 omnilex-key=us-al-statutes--title-11--11-54B-96}
(a) Within 90 days after the close of each fiscal year, the district management corporation shall make an annual report of its activities for the preceding fiscal year to the governing body of the municipality.
(1) Each annual report shall include, at a minimum, all of the following:
a. A financial statement for the preceding year, including a balance sheet, statement of income and loss, and such other information as is reasonably necessary to reflect the corporation’s actual performance, certified by the treasurer of the corporation.
b. The budget for the current fiscal year.
c. In the case of a district whose purpose is to increase tourism, a list of the businesses in the designated class that are currently operating within the district.
(2) A copy of each annual report shall be sent to the mayor, the members of the governing body of the municipality, and to all district members.
(b)(1) The district management corporation shall have its books, accounts, and financial transactions annually audited by a certified public accountant.
(2) The audit shall be performed within 90 days of the close of each fiscal year.
(3) Certified copies of the audit report shall be filed within 120 days after the close of the fiscal year with the governing body of the municipality, the mayor, and the finance director or other financial control officer of the municipality.
*(Act 2023-253, §1.)*
##### **§ 11-54B-97** Hearing on Continuation, Modification, or Termination of District {#sec-11-54b-97 omnilex-key=us-al-statutes--title-11--11-54B-97}
(a)(1) The board of directors of the district management corporation shall set a hearing when one of the following occurs:
a. Within 60 days after the adoption and approval of the fifth annual budget for the district, to determine continuation, modification, or termination of the district.
b. Whenever a petition is presented to the board of directors requesting termination of the district signed by district members who paid more than 50 percent of the special assessment in the last fiscal year for which the assessment was collected.
(2) At least 20 days before the hearing, notice of the date, time, and place of the hearing shall be posted in at least three public places within the district, on the websites of the municipality and the district, and mailed to each district member.
(3) At or immediately after the hearing, the board of directors shall adopt a resolution requesting the governing body of the municipality to adopt an ordinance providing for one of the following:
a. Continuation of the district as described in the self-help business improvement plan for an additional five years if the hearing was held pursuant to paragraph (a)(1)a.
b. Continuation of the district with modification for an additional five years if the hearing was held pursuant to paragraph (a)(1)a., as reflected by modifying the self-help business improvement district plan consistent with Section 11-54B-88, including enlargement or reduction of the district.
c. Termination of the district if one of the following occurs:
1. At a hearing held pursuant to paragraph (a)(1)a., it is demonstrated that district members who paid more than 50 percent of the special assessment in the last fiscal year for which the special assessment was collected object to the continuation of the district.
2. At a hearing in response to a petition received pursuant to paragraph (a)(1)b., at which no signatures are withdrawn reducing support for termination of the district to fewer than 50 percent of the district members who paid the special assessment in the last fiscal year for which the assessment was collected.
(b) The governing body of the municipality shall adopt an ordinance ratifying the board of directors’ resolution pursuant to subdivision (a)(3), to take effect at the end of the current fiscal year, to continue, modify, or terminate the district.
(c) In the event of termination of the district, any remaining revenues, after all outstanding debts are paid, derived from the collection of the special assessment or derived from the sale of district assets acquired with the revenues shall be spent as near as possible in accordance with the district plan or shall be refunded to district members who paid the special assessment by applying the same method that was used to calculate the assessment in the last fiscal year for which the special assessment was collected.
*(Act 2023-253, §1.)*
### **Chapter 55** Post-Office Projects
##### **§ 11-55-1** Definitions {#sec-11-55-1 omnilex-key=us-al-statutes--title-11--11-55-1}
Wherever used in this chapter, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings:
(1) MUNICIPALITY. Any incorporated city or town in the State of Alabama.
(2) PROJECT. Any land and any building or other improvements thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the United States government for a post office in the municipality.
(3) GOVERNING BODY. The board or body in which the legislative powers of the municipality are vested.
(4) MORTGAGE. A mortgage or a mortgage and deed of trust.
*(Acts 1955, No. 491, p. 1107, §1.)*
##### **§ 11-55-2** Powers of Municipalities Generally as to Acquisition and Leasing of Projects for Post Offices and Issuance of Bonds Therefor {#sec-11-55-2 omnilex-key=us-al-statutes--title-11--11-55-2}
In addition to any other powers which it may now have, any municipality in this state may hereafter acquire, whether by purchase, construction, or gift, a project, as defined in Section 11-55-1, located within the corporate limits, may lease such project to the United States government for such rental and upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of this chapter and may issue revenue bonds for the purpose of defraying the cost of acquiring, constructing, enlarging, and maintaining such project.
*(Acts 1955, No. 491, p. 1107, §2.)*
##### **§ 11-55-3** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc {#sec-11-55-3 omnilex-key=us-al-statutes--title-11--11-55-3}
All bonds issued by a municipality under authority of this chapter shall be limited obligations of the municipality, the principal of and interest on which shall be payable solely out of the revenues derived from the leasing of the project to finance which the bonds are issued. Bonds and interest coupons issued under authority of this chapter shall never constitute an indebtedness of the municipality within the meaning of any state constitutional provisions or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the municipality or a charge against its general credit or taxing powers, and such fact shall be plainly stated in the face of each such bond.
Such bonds may be executed and delivered at any time and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times, not exceeding 30 years from their date, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent with this chapter as shall be provided in the proceedings of the governing body whereunder the bonds shall be authorized to be issued.
The bonds issued under this chapter shall be subject to the general provisions of law, presently existing or that may hereafter be enacted, respecting the execution and delivery of the bonds of a municipality and respecting the retaining of options of redemption in proceedings authorizing the issuance of municipal securities. Any bonds issued under the authority of this chapter may be sold at public or private sale in such manner and from time to time as may be determined by the governing body to be most advantageous, and the municipality may pay all expenses, premiums and commissions which the governing body may deem necessary or advantageous in connection with the authorization, sale and issuance thereof.
All bonds issued under the authority of this chapter and all interest coupons applicable thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.
*(Acts 1955, No. 491, p. 1107, §3.)*
##### **§ 11-55-4** Bonds - Security for Payment of Principal and Interest {#sec-11-55-4 omnilex-key=us-al-statutes--title-11--11-55-4}
The principal of and interest on any bonds issued under the authority of this chapter shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such project.
The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and issuance of such project, the creation and maintenance of special funds from the revenues from such project and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage as the governing body shall deem advisable and as shall not be in conflict with the provisions of this chapter; provided, however, that in making any such agreements or provisions a municipality shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers.
The proceedings authorizing any bonds under this chapter and any mortgage securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by civil action and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
*(Acts 1955, No. 491, p. 1107, §4.)*
##### **§ 11-55-5** Bonds - Disposition of Proceeds from Sale {#sec-11-55-5 omnilex-key=us-al-statutes--title-11--11-55-5}
(a) The proceeds from the sale of any bonds issued under authority of this chapter shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; provided further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds.
(b) The cost of acquiring any project, which shall be paid from the proceeds derived from the sale of bonds, shall be deemed to include the following:
(1) The actual cost of the construction of any part of a project which may be constructed, including architect’s and engineer’s fees;
(2) The purchase price of any part of a project that may be acquired by purchase;
(3) All expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and
(4) The interest on such bonds for a reasonable time prior to construction, during construction and for a period not exceeding six months after completion of construction.
*(Acts 1955, No. 491, p. 1107, §7.)*
##### **§ 11-55-6** Refunding Bonds {#sec-11-55-6 omnilex-key=us-al-statutes--title-11--11-55-6}
Any bonds issued under this chapter and at any time outstanding may at any time and from time to time be refunded by a municipality by the issuance of its refunding bonds in such amount as the governing body may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums and commissions necessary to be paid in connection therewith.
Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption.
Any refunding bonds issued under the authority of this chapter shall be payable solely from the revenues out of which the bonds to be refunded thereby were payable and shall be subject to the provisions contained in Section 11-55-3 and may be secured in accordance with the provisions of Section 11-55-4.
*(Acts 1955, No. 491, p. 1107, §6.)*
##### **§ 11-55-7** Notice To, Approval or Consent of Governmental Body, Etc., Not to Be Required for Sale or Issuance of Bonds or Execution of Mortgages {#sec-11-55-7 omnilex-key=us-al-statutes--title-11--11-55-7}
No notice to or consent or approval by any governmental body or public officer shall be required as a prerequisite to the sale or issuance of any bonds or the making of a mortgage under the authority of this chapter.
*(Acts 1955, No. 491, p. 1107, §12.)*
##### **§ 11-55-8** Investment in Bonds by Savings Banks and Insurance Companies {#sec-11-55-8 omnilex-key=us-al-statutes--title-11--11-55-8}
Bonds issued under the provisions of this chapter shall be legal investments for savings banks and insurance companies organized under the laws of this state.
*(Acts 1955, No. 491, p. 1107, §9.)*
##### **§ 11-55-9** Contribution by Municipalities to Costs of Acquisition of Projects or Use of Municipal Lands Therefor; Acceptance of Donations of Property or Money for Projects {#sec-11-55-9 omnilex-key=us-al-statutes--title-11--11-55-9}
A municipality may pay out of its general funds or otherwise contribute any part of the costs of acquiring a project and may use land already owned by the municipality, or in which the municipality has an equity for construction thereon of a project, and the municipality may accept donations of property to be used as a part of any project and money to be used for defraying any part of the cost of any project.
*(Acts 1955, No. 491, p. 1107, §8.)*
##### **§ 11-55-10** Requirements as to Leases of Projects {#sec-11-55-10 omnilex-key=us-al-statutes--title-11--11-55-10}
(a) Prior to the leasing of any project, the governing body must determine and find the following:
(1) The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance such project;
(2) The amount necessary to be paid each year into any reserve funds which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and
(3) The estimated cost of maintaining the project in good repair and keeping it properly insured, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto.
(b) The determinations and findings of the governing body required to be made by subsection (a) of this section shall be set forth in the proceedings under which the proposed bonds are to be issued; and, prior to the issuance of such bonds, the municipality shall lease the project to a lessee under an agreement conditioned upon completion of the project and providing for payment to the municipality of such rentals as upon the basis of such determinations and findings will be sufficient:
(1) To pay the principal of and interest on the bonds issued to finance the project;
(2) To build up and maintain any reserves deemed by the governing body to be advisable in connection therewith; and
(3) To pay the costs of maintaining the project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.
*(Acts 1955, No. 491, p. 1107, §5.)*
##### **§ 11-55-11** Exemption from Taxation of Projects, Bonds, Etc {#sec-11-55-11 omnilex-key=us-al-statutes--title-11--11-55-11}
The bonds authorized by this chapter and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions of this chapter and all projects and the revenues derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
*(Acts 1955, No. 491, p. 1107, §10.)*
##### **§ 11-55-12** Construction of Chapter {#sec-11-55-12 omnilex-key=us-al-statutes--title-11--11-55-12}
Neither this chapter nor anything contained in this chapter shall be construed as a restriction or limitation upon any powers which a municipality might otherwise have under any laws of this state, but shall be construed as cumulative, and this chapter shall not be construed as requiring an election by the voters of a municipality prior to the issuance of bonds under this chapter by such municipality.
*(Acts 1955, No. 491, p. 1107, §11.)*
##### **§ 11-55-13** Authority of Cities or Towns to Acquire, Etc., and Lease Facilities to United States Postal Service; Issuance of Bonds, Etc., to Finance Acquisitions {#sec-11-55-13 omnilex-key=us-al-statutes--title-11--11-55-13}
Any city or town in this state
(1) May acquire (by construction, purchase or otherwise), improve and equip land, buildings and other facilities for use by the United States Postal Service;
(2) May lease any such land, buildings or facilities to the United States Postal Service on such terms and conditions as shall be mutually agreeable to such city or town and the United States Postal Service;
(3) May borrow money for the purpose of financing the costs of any such acquisition, improvement and equipment;
(4) May issue, in evidence of such borrowing, bonds, warrants, notes or other securities (which such bonds, warrants, notes or other securities shall mature and come due not later than 30 years from their date but shall otherwise be issued in accordance with, and shall be subject to, applicable provisions of law);
(5) May borrow money and issue bonds, warrants, notes or other securities for the combined purpose of financing the costs of any such acquisition, improvement and equipment (or of refunding any bonds, warrants, notes or other securities theretofore issued therefor) and for any other lawful purpose or purposes; and
(6) May pledge for the payment of any such bonds, warrants, notes or other securities any taxes, licenses or revenues that it is authorized by law to pledge for the payment of bonded or other indebtedness.
*(Acts 1984, No. 84-316, p. 734.)*
### **Chapter 56** Public Building Authorities
##### **§ 11-56-1** Definitions {#sec-11-56-1 omnilex-key=us-al-statutes--title-11--11-56-1}
The following words and phrases, whenever used in this chapter, shall, in the absence of clear implication otherwise, have the following respective meanings:
(1) CORPORATION OR THE CORPORATION. A corporation organized pursuant to the provisions of this chapter.
(2) BOARD. The board of directors of the corporation.
(3) THE STATE. The State of Alabama.
(4) THE MUNICIPALITY. That incorporated city or town in the state which authorized the organization of the corporation.
(5) THE COUNTY. That county in which the certificate of incorporation of the corporation shall be filed for record.
(6) LOCAL SUBDIVISION. The municipality or the county.
(7) PUBLIC CORPORATION.
a. Any public corporation (other than a corporation organized under this chapter) now or hereafter organized or created in the state pursuant to the authorization or determination by the municipality, by the municipality and one or more other cities and towns in the state, by the county, by the county and one or more counties in this state, or by the governing body of any thereof, and
b. The board of education of the municipality or of the county.
(8) UNITED STATES. The United States of America or any of its agencies or instrumentalities.
(9) GOVERNING BODY. The council, board of commissioners, or other like body in which the legislative functions of the municipality are vested by law.
(10) PROJECT. A building or buildings located or to be located in the municipality or in its police jurisdiction and designed for use and occupancy as a courthouse, jail, city or town hall, auditorium, music hall, art gallery, art center, museum, municipal building, or post office or for the supplying of office, warehousing, storage, or related facilities for officers and departments of the municipality, the county, any public corporation, any public utility subject to regulation by the Public Service Commission, any agencies for which the municipality, the county or any public corporation may lawfully furnish office, warehousing, storage, or related facilities and the United States, or any one or more thereof, together with any lands deemed by the board to be desirable in connection therewith.
(11) BOND. Any bond authorized to be issued pursuant to the provisions of this chapter, including refunding bonds.
(12) COUPON. Any interest coupon evidencing an installment of interest payable with respect to a bond.
(13) INDENTURE. A mortgage, an indenture of mortgage, deed of trust, trust agreement, or trust indenture executed by the corporation as security for any bonds.
*(Acts 1955, No. 493, p. 1116, §1; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §1; Acts 1963, No. 538, p. 1156; Acts 1965, 2nd Ex. Sess., No. 109, p. 148.)*
##### **§ 11-56-2** Legislative Intent; Construction of Chapter Generally {#sec-11-56-2 omnilex-key=us-al-statutes--title-11--11-56-2}
(a) It is the intention of the Legislature by the passage of this chapter to empower each incorporated city and town in the state to authorize the incorporation of one or more corporations as political subdivisions of the state for the purpose of providing buildings and facilities for lease to and use by the municipality, the county, or any public corporation in the performance of their respective public functions or for lease to and use by the United States, and to invest each corporation organized under this chapter with all powers that may be necessary to enable it to accomplish such purchase, including the power to lease its properties and to issue interest-bearing revenue bonds.
(b) This chapter shall be liberally construed in conformity with the said intent.
*(Acts 1955, No. 493, p. 1116, §2; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §2.)*
##### **§ 11-56-3** Application for Authority to Form Corporation; Adoption of Resolution by Governing Body Authorizing Incorporation; Procedure for Incorporation Generally {#sec-11-56-3 omnilex-key=us-al-statutes--title-11--11-56-3}
Whenever any number of natural persons, not less than three, shall file with the governing body an application in writing for authority to incorporate a corporation under the provisions of this chapter, if it shall be made to appear to the governing body that each of the said persons is a duly qualified elector of and property owner in the municipality, and, if the governing body shall duly adopt a resolution wherein it shall be declared that it will be wise, expedient, and necessary that such a corporation be formed and that the persons filing such application shall be authorized to proceed to form such corporation, then the said persons shall become the incorporators of and shall proceed to incorporate the corporation in the manner provided in this chapter.
No corporation shall be formed under this chapter unless the application provided for in this section shall be made and unless the resolution provided for in this section shall be adopted.
*(Acts 1955, No. 493, p. 1116, §3.)*
##### **§ 11-56-4** Certificate of Incorporation - Contents; Approval by Governing Body {#sec-11-56-4 omnilex-key=us-al-statutes--title-11--11-56-4}
(a) The certificate of incorporation of the corporation shall state:
(1) The names of the persons forming the corporation, together with the residence of each thereof, and a statement that each of them is a duly qualified elector of and property owner in the municipality;
(2) The name of the corporation (which shall be “The Public Building Authority of the City (or Town) of _____” or some other name of similar import);
(3) The location of its principal office, which shall be in the municipality;
(4) The number of directors (which shall be three or a multiple of three); and
(5) Any other matters relating to the corporation that the incorporators may choose to insert and that is not inconsistent with this chapter or with the laws of the state.
(b) The form and contents of the certificate of incorporation must be submitted to the governing body for its approval, which shall be evidenced by a resolution duly entered upon the minutes of the governing body.
*(Acts 1955, No. 493, p. 1116, §4.)*
##### **§ 11-56-5** Certificate of Incorporation - Execution, Acknowledgment, Filing, and Recordation {#sec-11-56-5 omnilex-key=us-al-statutes--title-11--11-56-5}
The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments of deeds and shall have attached thereto a certified copy of the resolution provided for in Section 11-56-4 and a certificate by the Secretary of State that the name proposed for the corporation is not identical with that of any other corporation in the state or so nearly similar thereto as to lead to confusion and uncertainty.
The certificate of incorporation, together with the documents required by the preceding sentence to be attached thereto, shall be filed in the office of the judge of probate of any county in which any portion of the municipality is located, who shall forthwith receive and record the same.
When such certificate of incorporation and attached documents have been so filed, the corporation referred to therein shall come into existence and shall constitute a body corporate and politic and a political subdivision of the state under the name set forth in such certificate of incorporation, whereupon the corporation shall be vested with the rights and powers granted in this chapter.
*(Acts 1955, No. 493, p. 1116, §5; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §3.)*
##### **§ 11-56-6** Board of Directors; Record of Proceedings of Board {#sec-11-56-6 omnilex-key=us-al-statutes--title-11--11-56-6}
The corporation shall have a board of directors composed of the number of directors provided in the certificate of incorporation. All powers of the corporation shall be exercised by the board or pursuant to its authorization. The directors shall be residents of the municipality and shall be elected by the governing body for staggered terms of office as follows: The first term of one third of the directors shall be two years; of another one third, four years; and of the remaining one third, six years. Thereafter the term of office of each director shall be six years. If any director resigns, dies, becomes incapable of acting as a director or ceases to reside in the municipality, the governing body shall elect a successor to serve for the unexpired period of his term. Directors shall be eligible for reelection by the governing body to succeed themselves in office. No director shall be an officer of the state or the municipality. A majority of the members of the board shall constitute a quorum for the transaction of business. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and duties of the corporation. The members of the board and the officers of the corporation shall serve without compensation, except that they may be reimbursed for actual expenses incurred in and about the performance of their duties.
All proceedings of the board shall be reduced to writing by the secretary of the corporation and recorded in a well-bound book. Copies of such proceedings, when certified by the secretary of the corporation under its seal, shall be received in all courts as evidence of the matters and things therein certified.
*(Acts 1955, No. 493, p. 1116, §6.)*
##### **§ 11-56-7** Officers {#sec-11-56-7 omnilex-key=us-al-statutes--title-11--11-56-7}
The officers of the corporation shall consist of a chairman, vice-chairman, a secretary, a treasurer, and such other officers as the board shall deem necessary to accomplish the purposes for which the corporation was organized. The offices of secretary and treasurer may, but need not be, held by the same person. The chairman and vice-chairman of the corporation shall be elected by the board from its membership. The secretary, the treasurer, and any other officers of the corporation, who may, but need not be, members of the board, shall also be elected by the board.
*(Acts 1955, No. 493, p. 1116, §7.)*
##### **§ 11-56-8** Powers Generally {#sec-11-56-8 omnilex-key=us-al-statutes--title-11--11-56-8}
The corporation shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name until dissolved as provided in this chapter;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To make use of a corporate seal and to alter the same at pleasure;
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(5) To acquire, whether by purchase, gift, lease, devise, or otherwise property of every description which the board may deem necessary to the acquisition, construction, improvement, enlargement, operation, or maintenance of a project and to hold title thereto;
(6) To construct, enlarge, equip, improve, maintain, and operate one or more projects;
(7) To borrow money for any of its corporate purposes and to sell and issue in evidence of such borrowing its interest-bearing revenue bonds;
(8) To sell and issue refunding revenue bonds;
(9) To secure any of its bonds by pledge and indenture as provided in this chapter;
(10) To appoint, employ, and compensate such agents, architects, and attorneys as the business of the corporation may require;
(11) To provide for such insurance as the board may deem advisable;
(12) To invest in obligations that are direct general obligations of the United States of America or that are unconditionally guaranteed as to both principal and interest by the United States of America any of its funds that the board may determine are not presently needed for its corporate purposes;
(13) To contract, lease, and make lease agreements respecting its properties or any thereof; and
(14) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful in connection with or in the operation of any project; provided, that it shall not have the power to sell or convey any project substantially as a whole except as provided in this chapter.
*(Acts 1955, No. 493, p. 1116, §8.)*
##### **§ 11-56-9** Leasing of Projects {#sec-11-56-9 omnilex-key=us-al-statutes--title-11--11-56-9}
(a) The corporation and any local subdivision are hereby respectively authorized to enter into with each other one or more lease agreements whereunder a project or any part thereof shall be leased by the corporation to such local subdivision for a term not longer than the then current fiscal year of such local subdivision, but any such lease agreement may contain a grant to such local subdivision of successive options of renewing the said lease agreement on the terms specified therein for any subsequent fiscal year or years of such local subdivision. The said lease agreement may contain appropriate provisions as to the method by which such local subdivision may, at its election, exercise such of the said options of renewal as its governing body may elect on the terms provided therein and such other covenants and provisions as shall not be inconsistent with this chapter and as the corporation and such local subdivision may agree. The rental for each fiscal year during which said lease agreement shall be in effect shall be due in advance on the first day of the fiscal year, and the said rental for said fiscal year shall be payable and any such covenant on the part of such local subdivision shall be performed solely out of the current revenues of such local subdivision for such fiscal year. The state shall not in any manner be liable for the performance of any obligation or agreement contained in said lease agreement. The rental payable and the covenants to be performed by such local subdivision under the provisions of said lease agreement shall never create an indebtedness of such local subdivision within the meaning of Section 224 or Section 225 of the Constitution of the state.
It is hereby declared that it is an essential governmental function of the municipality to secure and supply reasonable and adequate building, office, and storage facilities for its courts, jails, officers, departments, and agencies engaged in the performance of municipal duties, and the rentals payable by the municipality for such purpose are and shall constitute necessary governmental operating expenses of the municipality.
It is hereby declared that it is an essential governmental function of the county to secure and supply reasonable and adequate building, office, and storage facilities for its courts, jails, officers, departments, and agencies engaged in the performance of governmental duties, and the rentals payable by the county for such purpose are and shall constitute necessary governmental operating expenses of the county.
If there shall be any default in the payment of any rental required to be paid or in the performance of any covenant required to be performed by any such local subdivision under the provisions of any such lease agreement while such lease agreement shall be in effect, the corporation and any pledgee of said lease agreement may by any appropriate civil action instituted within the time permitted by law enforce and compel payment of such rental and performance of such covenant.
Should any space available for rent in any project which shall have been leased in whole or in part to a local subdivision become vacant after acquisition or construction of said project by the corporation, then until such time as all such vacant space in the project shall have been filled no local subdivision to which said project or any part thereof shall have been rented nor any officer, department, or agency thereof shall thereafter enter into any lease or rental agreement or renew any existing lease or rental agreement for other space in or about the municipality suitable for use for the same purposes for which the vacant space is suitable.
(b) The corporation and any public corporation are hereby respectively authorized to enter into with each other one or more lease agreements whereunder a project or any part thereof shall be leased by the corporation to said public corporation for a term not longer than 30 years. Neither the state, the county, nor any municipality in the county shall in any manner be liable for the performance of any obligation or agreement contained in any lease agreement between the corporation and a public corporation. The rental payable and the covenants to be performed by a public corporation under the provisions of any such lease agreement shall never create a debt of the state, the county, or any municipality therein within the meaning of Sections 213, 224, or 225 of the Constitution of the state.
It is hereby declared that it is an essential governmental function of a public corporation to secure and supply reasonable and adequate building, office, and storage facilities for the performance of its functions, and the rentals payable by the public corporation for such purpose are and shall constitute a necessary operating expense of the public corporation.
If there shall be any default in the payment of any rental required to be paid or in the performance of any covenant required to be performed by any public corporation under the provisions of any such lease agreement while it shall be in effect, the corporation and any pledgee of said lease agreement may by appropriate civil action instituted within the time permitted by law enforce and compel payment of such rental and performance of such covenant.
(c) The corporation is hereby authorized to lease a project or any part thereof to the United States for such period of time and on such terms and conditions as may be mutually agreed on by the parties to the agreement under which such lease shall be made.
*(Acts 1955, No. 493, p. 1116, §9; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §4.)*
##### **§ 11-56-10** Bonds - Authority for Issuance; Security for Payment of Principal and Interest Generally; Form, Terms, Denominations, Etc.; Sale, Redemption, Etc {#sec-11-56-10 omnilex-key=us-al-statutes--title-11--11-56-10}
The corporation is authorized at any time and from time to time to issue its interest-bearing revenue bonds for the purpose of acquiring, constructing, improving, enlarging, completing and equipping one or more projects. The principal of and the interest on any such bonds shall be payable solely out of the revenues derived from the project with respect to which such bonds are issued. None of the bonds of the corporation shall ever constitute an obligation or debt of the state, the county or the municipality or a charge against the credit or taxing powers of the state, the county or the municipality.
Bonds of the corporation may be issued at any time and from time to time, may be in such form and denominations, may be of such tenor, may be payable in such installments and at such time or times, not exceeding 40 years from their date, may be payable at such place or places whether within or without the state and may bear interest at such rate or rates payable and evidenced in such manner as shall not be inconsistent with the provisions of this chapter and as may be provided in the proceedings of the board wherein the bonds shall be authorized to be issued. Any bond having a specified maturity more than 10 years after its date shall be made subject to redemption at the option of the corporation at the expiration of 10 years from its date and on any interest payment date thereafter at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in the proceedings of the board wherein it is authorized to be issued.
Bonds of the corporation may be sold at either public or private sale in such manner and from time to time as may be determined by the board to be most advantageous. The corporation may pay all expenses, premiums and commissions that the board may deem necessary or advantageous in connection with the authorization, sale and issuance of its bonds. All bonds shall contain a recital that they are issued pursuant to the provisions of this chapter, which recital shall be conclusive that they have been duly authorized pursuant to the provisions of this chapter.
All bonds issued under the provisions of this chapter shall be and hereby are declared to be negotiable instruments under the law of the state despite the fact that they are payable from a limited source.
*(Acts 1955, No. 493, p. 1116, §10; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §5; Acts 1967, No. 351, p. 910.)*
##### **§ 11-56-11** Bonds - Notice of Resolution Authorizing Issuance of Bonds; Limitation Period for Actions, Etc., as to Validity of Proceedings for Issuance of Bonds, Etc {#sec-11-56-11 omnilex-key=us-al-statutes--title-11--11-56-11}
(a) Upon the adoption by the board of any resolution providing for the issuance of bonds, the corporation may, in its discretion, cause to be published once a week for two consecutive weeks in a newspaper published in the municipality or, if there is no newspaper published in the municipality, then in a newspaper published in the county in which the municipality is located, a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of the corporation: “_____, a public corporation and a political subdivision of the State of Alabama, on the _____ day of _____, authorized the issuance of $_____ principal amount of revenue bonds of the said corporation for purposes authorized in the act of the Legislature of Alabama under which the said corporation was organized. Any civil action or proceeding questioning the validity of the said bonds, or the pledge and the indenture to secure the same or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.”
(b) Any civil action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of any such bonds or the validity of the pledge and indenture made therefor must be commenced within 20 days after the first publication of such notice. After the expiration of the said period, no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds or the said pledge or indenture shall be asserted, nor shall the validity of the said proceedings, bonds, pledge or indenture be open to question in any court on any ground whatsoever except in a civil action or proceeding commenced within such period.
*(Acts 1955, No. 493, p. 1116, §19; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §7.)*
##### **§ 11-56-12** Bonds - Execution and Delivery {#sec-11-56-12 omnilex-key=us-al-statutes--title-11--11-56-12}
All bonds shall be signed by the chairman or vice-chairman of the corporation, and the seal of the corporation shall be affixed thereto and attested by its secretary. Coupons shall be signed by the chairman or vice-chairman of the corporation, but a facsimile of the signature of such chairman or vice-chairman may be impressed on any such interest coupons in lieu of his manually signing the same.
Delivery of bonds so executed shall be valid notwithstanding any changes in officers or in the seal of the corporation after the signing and sealing of the bonds.
*(Acts 1955, No. 493, p. 1116, §11.)*
##### **§ 11-56-13** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default Generally {#sec-11-56-13 omnilex-key=us-al-statutes--title-11--11-56-13}
(a) The principal of and the interest on the bonds shall be secured by a pledge of the revenues out of which the bonds shall be made payable and by a pledge of the lease agreement covering the project from which revenues so pledged shall be derived and of the rental therefrom and may be secured by an indenture covering such project.
The trustee under any indenture may be a trust company or bank having trust powers, whether located within or without the state. The indenture may contain any agreements and provisions customarily contained in instruments securing evidences of indebtedness including, without limiting the generality of the foregoing, provisions respecting the collection, segregation and application of the rental from any project covered by such indenture, the terms to be incorporated in the lease agreement respecting such project, the maintenance and insurance of such project, the creation and maintenance of special funds from the rental of such project, and the rights and remedies available in the event of default to the holders of the bonds or the trustee under the indenture all as the board shall deem advisable and as shall not be in conflict with the provisions of this chapter; provided, however, that in making any such agreements or provisions the corporation shall not have the power to obligate itself except with respect to projects and the application of the revenues therefrom.
(b) If there shall be any default by the corporation in payment of the principal of or the interest on the bonds or in any of the agreements on the part of the corporation that may properly be included in any indenture securing the bonds, any holder of any of the bonds or any of the coupons or the trustee under any indenture, if so authorized in such indenture, may by civil action, mandamus or other proceeding enforce payment of such principal or interest and compel performance of all duties of the board and officers of the corporation and shall be entitled as a matter of right and regardless of the sufficiency of any such security to the appointment of a receiver with all the powers of such receiver for the operation and maintenance of the project covered by such indenture and the collection, segregation and application of rents therefrom; provided, that any such indenture shall not be subject to foreclosure and shall not be construed so as to authorize the sale of any project covered thereby or any part thereof in satisfaction of the bonds secured thereby. The indenture may contain provisions regarding the rights and remedies of any trustee thereunder and the holders of the bonds and the coupons and may contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Acts 1955, No. 493, p. 1116, §12.)*
##### **§ 11-56-14** Bonds - Disposition of Proceeds from Sale {#sec-11-56-14 omnilex-key=us-al-statutes--title-11--11-56-14}
(a) The proceeds derived from the sale of any bonds (other than refunding bonds) may be used only to pay the cost of acquiring, constructing, improving, enlarging and equipping the project with respect to which they were issued as may be specified in the proceedings in which the bonds are authorized to be issued.
(b) Such cost, which shall be paid from the proceeds derived from the sale of bonds, shall be deemed to include the following:
(1) The cost of any land forming a part of the project;
(2) The costs of the labor, materials and supplies used in any such construction, improvement or enlargement, including architect’s and engineer’s fees and the cost of preparing contract documents and advertising for bids;
(3) The purchase price of and the cost of installing equipment for the project;
(4) The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities and parking places in connection therewith;
(5) Legal, fiscal and recording fees and expenses incurred in connection with the authorization, sale and issuance of the bonds issued in connection with such project; and,
(6) Interest on said bonds for a reasonable period prior to and during the time required for such construction and equipment.
(c) If any of the proceeds derived from the sale of said bonds remains undisbursed after completion of such work and payment of all of the said costs and expenses, such balance shall be used for retirement of the principal of bonds of the same issue.
*(Acts 1955, No. 493, p. 1116, §13.)*
##### **§ 11-56-15** Bonds - Remedies Upon Default in Payment of Principal or Interest on Bonds {#sec-11-56-15 omnilex-key=us-al-statutes--title-11--11-56-15}
If there shall be any default in the payment of the principal of or interest on any bonds issued under this chapter, then the holder of any of the bonds and of any of the interest coupons applicable thereto and the trustee under any indenture, or any one or more of them, may by civil action, mandamus or other proceeding compel performance of all duties of the officers and directors of the corporation with respect to the use of funds for the payment of the bonds and for the performance of the agreements of the corporation contained in the proceedings under which they were issued and compel performance of the duties of all officials of each local subdivision and public corporation which is a lessee under any lease pledged as security for the bonds so in default with respect to payment of the rentals provided to be paid under any such lease and, regardless of the sufficiency of the security for the bonds in default and as a matter of right, shall be entitled to the appointment of a receiver to administer and operate the project out of the revenues from which the bonds so in default are payable, with power to make leases and fix and collect rents sufficient to provide for the payment of the principal of and interest on the bonds and any other obligations outstanding against the project of the revenues therefrom and for the payment of the expenses of operating and maintaining the project and with power to apply the income therefrom in accordance with the provisions of the proceedings under which the bonds were authorized to be issued.
The remedies specified in this section shall be cumulative to all other remedies which may otherwise be available for the benefit of the holders of the bonds and the coupons applicable thereto.
*(Acts 1955, No. 493, p. 1116, §16; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §6.)*
##### **§ 11-56-16** Refunding Bonds {#sec-11-56-16 omnilex-key=us-al-statutes--title-11--11-56-16}
The corporation may at any time and from time to time issue refunding bonds for the purpose of refunding the principal of and interest on any bonds of the corporation theretofore issued under this chapter and then outstanding, whether or not such principal and interest shall have matured at the time of such refunding, and for the payment of any expenses incurred in connection with such refunding and any premium necessary to be paid in order to redeem or retire the bonds to be refunded. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were authorized to be issued. Any such refunding may be effected either by sale of the refunding bonds and the application of the proceeds thereof or by exchange of the refunding bonds for the bonds or interest coupons to be refunded thereby; provided, that the holders of any bonds or coupons so to be refunded shall not be compelled without their consent to surrender their bonds or coupons for payment or exchange prior to the date on which they may be paid or redeemed by the corporation under their respective provisions. Any refunding bonds of the corporation shall be payable solely from the revenues out of which the bonds or coupons to be refunded thereby were payable.
All provisions of this chapter pertaining to bonds of the corporation that are not inconsistent with the provisions of this section shall, to the extent applicable, also apply to refunding bonds issued by the corporation.
*(Acts 1955, No. 493, p. 1116, §14.)*
##### **§ 11-56-17** Investment in Bonds - by Municipalities {#sec-11-56-17 omnilex-key=us-al-statutes--title-11--11-56-17}
The governing body is authorized in its discretion to invest in bonds of the corporation any idle or surplus money held in the treasury of the municipality which is not otherwise earmarked or pledged.
*(Acts 1955, No. 493, p. 1116, §17.)*
##### **§ 11-56-18** Investment in Bonds - by Executors, Savings Banks, Insurance Companies, Etc {#sec-11-56-18 omnilex-key=us-al-statutes--title-11--11-56-18}
Bonds issued under the provisions of this chapter are hereby made legal investments for executors, administrators, trustees and other fiduciaries and for savings banks and insurance companies organized under the laws of the state.
*(Acts 1955, No. 493, p. 1116, §18.)*
##### **§ 11-56-19** Conveyances of Property to Corporations by Municipalities {#sec-11-56-19 omnilex-key=us-al-statutes--title-11--11-56-19}
The municipality is hereby authorized to convey to the corporation, with or without the payment of monetary consideration therefor, any property that may be owned by the municipality, whether or not such property is necessary for the conduct of the governmental or other public functions of the municipality; provided, that such conveyance shall be authorized by a resolution duly adopted by the governing body prior to the conveyance.
*(Acts 1955, No. 493, p. 1116, §20.)*
##### **§ 11-56-20** Authority and Procedure for Dissolution of Corporations; Vesting of Title to Properties Thereof in Municipalities Upon Dissolution; Formation of Corporations Not to Prevent Subsequent Formation of Other Corporations by Same Municipalities {#sec-11-56-20 omnilex-key=us-al-statutes--title-11--11-56-20}
(a) At any time when the corporation does not have any bonds outstanding, the board may adopt a resolution which shall be duly entered upon its minutes declaring that the corporation shall be dissolved. Upon the filing for record of a certified copy of said resolution in the office of the judge of probate of the county, the corporation shall thereupon stand dissolved, and, in the event it owned any property at the time of its dissolution, the title to all its property shall thereupon vest in the municipality. In the event the corporation shall at any time have outstanding bonds issued under this chapter payable out of the revenues from different projects, then as and when the principal of and the interest on all bonds payable in whole or in part from the revenues derived from any project shall have been paid in full, title to the project with respect to which the bonds so paid in full have been paid shall thereupon vest in the municipality, but such vesting of title in the municipality shall not affect the title of the corporation to any other project the revenues from which are pledged for the payment of any other bonds then outstanding.
(b) The formation of one or more corporations under the provisions of this chapter shall not prevent the subsequent formation under this chapter of other corporations pursuant to authorization by the same municipality.
*(Acts 1955, No. 493, p. 1116, §21; Acts 1956, 1st Ex. Sess., No. 127, p. 182, §8.)*
##### **§ 11-56-21** Exemption from Taxation of Projects, Bonds, Etc {#sec-11-56-21 omnilex-key=us-al-statutes--title-11--11-56-21}
Each project and the income from all leases made with respect thereto, the bonds issued by the corporation and the income therefrom and all lease agreements and indentures made pursuant to the provisions of this chapter shall be exempt from all taxation in the state.
*(Acts 1955, No. 493, p. 1116, §15.)*
##### **§ 11-56-22** Construction of Chapter {#sec-11-56-22 omnilex-key=us-al-statutes--title-11--11-56-22}
This chapter shall not be construed as a restriction or limitation upon any power, right, or remedy which any municipality or any corporation now in existence or hereafter formed may have in the absence thereof and shall be construed as cumulative and independent thereof.
*(Acts 1955, No. 493, p. 1116, §22.)*
### **Chapter 57** Public Library Authorities
##### **§ 11-57-1** Definitions {#sec-11-57-1 omnilex-key=us-al-statutes--title-11--11-57-1}
The following words and phrases, whenever used in this chapter, shall have the following respective meanings, unless the context clearly indicates otherwise:
(1) AUTHORITY. A corporation organized pursuant to the provisions of this chapter.
(2) BOARD. The board of directors of the authority.
(3) BOND. Any bond issued under the provisions of this chapter, including refunding bonds.
(4) COUNTY. That county in which the certificate of incorporation of the authority shall be filed for record.
(5) COUPON. Any interest coupon evidencing an installment of interest payable with respect to a bond.
(6) FISCAL YEAR. A fiscal year of the municipality.
(7) GOVERNING BODY. The council, board of commissioners, or other like body in which the legislative functions of the municipality are vested by law.
(8) INDENTURE. A mortgage, an indenture of mortgage, deed of trust or trust indenture executed by the authority as security for any bonds.
(9) LEASE AGREEMENT. Any agreement of lease respecting the project or any part thereof which is made pursuant to the provisions of this chapter.
(10) MUNICIPALITY. That incorporated city or town in the state which authorized the organization of the authority.
(11) PROJECT. One or more buildings located or to be located within the municipality or within its police jurisdiction and designed for use as a public library, branch library, and related public library facilities and any equipment and lands necessary therefor.
(12) STATE. The State of Alabama.
*(Acts 1961, No. 895, p. 1407, §2; Acts 1961, Ex. Sess., No. 289, p. 2335, §2.)*
##### **§ 11-57-2** Legislative Intent; Construction of Chapter Generally {#sec-11-57-2 omnilex-key=us-al-statutes--title-11--11-57-2}
(a) It is the intention of the Legislature by the passage of this chapter to empower each incorporated municipality in the state to authorize the incorporation of one or more public corporations as political subdivisions of the state for the purpose of providing public library facilities for lease to and use by the municipality, to invest each corporation organized under this chapter with all powers that may be necessary to enable it to accomplish such purposes, including the power to lease its properties and to issue interest-bearing revenue bonds and to grant to each such municipality power to rent such public library facilities on a year to year basis.
(b) This chapter shall be liberally construed in conformity with the said intent.
*(Acts 1961, No. 895, p. 1407, §1; Acts 1961, Ex. Sess., No. 289, p. 2335, §1.)*
##### **§ 11-57-3** Application for Authority to Form Corporation; Adoption of Resolution by Governing Body Authorizing Incorporation; Procedure for Incorporation Generally {#sec-11-57-3 omnilex-key=us-al-statutes--title-11--11-57-3}
Whenever any number of natural persons, not less than three, shall file with the governing body an application in writing for permission to incorporate a public corporation under the provisions of this chapter, if it shall be made to appear to the governing body that each of the said persons is a duly qualified elector of and property owner in the municipality; and, if the governing body shall duly adopt a resolution wherein it shall be declared that it will be wise, expedient, and necessary that such a public corporation be formed and that the persons filing such application shall be authorized to proceed to form such public corporation, then the said persons shall become the incorporators of and shall proceed to incorporate the authority in the manner provided in this chapter.
No corporation shall be formed under this chapter unless the application provided for in this section shall be made and unless the resolution provided for in this section shall be adopted.
*(Acts 1961, No. 895, p. 1407, §3; Acts 1961, Ex. Sess., No. 289, p. 2335, §3.)*
##### **§ 11-57-4** Certificate of Incorporation - Contents; Execution and Acknowledgment; Approval by Governing Body {#sec-11-57-4 omnilex-key=us-al-statutes--title-11--11-57-4}
(a) The certificate of incorporation of the authority shall state:
(1) The name and address of each of the incorporators and a statement that each of them is a duly qualified elector of and property owner in the municipality;
(2) The name of the corporation (which shall be “The Public Library Authority of the (City or Town) of _____” or some other name of a similar import);
(3) The location of its principal office, which shall be in the municipality;
(4) The number of directors (which shall be three or a multiple of three); and
(5) Any other matter relating to the authority that the incorporators may choose to insert and which shall not be inconsistent with this chapter or with the laws of the state.
(b) The certificate of incorporation shall be signed and acknowledged by each of the incorporators before an officer authorized by the laws of the state to take acknowledgments of deeds.
(c) The form and contents of the certificate of incorporation must be submitted to the governing body for its approval, which shall be evidenced by a resolution duly entered upon the minutes of the governing body.
*(Acts 1961, No. 895, p. 1407, §4; Acts 1961, Ex. Sess., No. 289, p. 2335, §4.)*
##### **§ 11-57-5** Certificate of Incorporation - Filing and Recordation {#sec-11-57-5 omnilex-key=us-al-statutes--title-11--11-57-5}
The certificate of incorporation, having attached thereto a certified copy of the resolution provided for in Section 11-57-3 and a certificate by the Secretary of State that the name proposed for the authority is not identical with that of any other corporation in the state or so nearly similar thereto as to lead to confusion and uncertainty, shall be filed in the office of the judge of probate of any county in which any portion of the municipality is located, who shall forthwith receive and record the same.
When such certificate of incorporation and attached documents have been so filed, the authority referred to therein shall come into existence and shall constitute a public corporation and a political subdivision of the state under the name set forth in such certificate of incorporation, whereupon the authority shall be vested with the rights and powers granted in this chapter.
*(Acts 1961, No. 895, p. 1407, §5; Acts 1961, Ex. Sess., No. 289, p. 2335, §5.)*
##### **§ 11-57-6** Board of Directors; Record of Proceedings of Board {#sec-11-57-6 omnilex-key=us-al-statutes--title-11--11-57-6}
The authority shall have a board of directors composed of the number of directors provided in the certificate of incorporation. All powers of the authority shall be exercised by the board or pursuant to its authorization. The directors shall be residents of the municipality and shall be elected by the governing body for staggered terms of office as follows: The first term of one third of the directors shall be two years; the first term of the second one third of the directors shall be four years and the first term of the remaining one third of the directors shall be six years. Upon the expiration of the initial term of each director, each subsequent term shall be six years. If any director resigns, dies, becomes incapable of acting as a director, or ceases to reside in the municipality, the governing body shall elect a successor to serve for the unexpired portion of his term of office. Directors shall be eligible to succeed themselves in office. No director shall be an officer of the state or of the municipality. A majority of the members of the board shall constitute a quorum for the transaction of business. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and duties of the authority. The members of the board and the officers of the authority shall serve without compensation, except that they may be reimbursed for actual expenses incurred in and about the performance of their duties.
All resolutions adopted by the board shall constitute actions of the authority, and all proceedings of the board shall be reduced to writing and signed by the secretary of the authority and shall be recorded in a well-bound book. Copies of such proceedings, when certified by the secretary of the authority, under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
*(Acts 1961, No. 895, p. 1407, §6; Acts 1961, Ex. Sess., No. 289, p. 2335, §6.)*
##### **§ 11-57-7** Officers {#sec-11-57-7 omnilex-key=us-al-statutes--title-11--11-57-7}
The officers of the authority shall consist of a president, a vice-president, a secretary, a treasurer, and such other officers as the board shall deem necessary to accomplish the purposes for which the authority was organized. The offices of secretary and treasurer may but need not be held by the same person. The president and vice-president of the authority shall be elected by the board from its membership. The secretary, the treasurer, and any other officers of the authority who may, but need not be, members of the board shall also be elected by the board.
*(Acts 1961, No. 895, p. 1407, §7; Acts 1961, Ex. Sess., No. 289, p. 2335, §7.)*
##### **§ 11-57-8** Powers - Generally {#sec-11-57-8 omnilex-key=us-al-statutes--title-11--11-57-8}
The authority shall have the following powers and capacities, among others specified in this chapter, together with all powers incidental thereto or necessary to the discharge thereof:
(1) To have succession by its corporate name until dissolved as provided in this chapter;
(2) To sue others and to prosecute civil actions;
(3) To be sued by others in any form of litigation other than an action ex delicto and to defend any litigation brought against it;
(4) To have and use a corporate seal and to alter the same at pleasure;
(5) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(6) To acquire, whether by purchase, gift, lease, devise, or otherwise, property of every description which the board may deem necessary or desirable to the acquisition, construction, reconstruction, improvement, enlargement, equipment, operation, or maintenance of a project and to hold title thereto;
(7) To construct, enlarge, improve, equip, maintain, and operate one or more projects;
(8) To borrow money for any of its corporate purposes and to sell and issue in evidence of such borrowing its interest-bearing revenue bonds as provided in this chapter;
(9) To sell and issue refunding revenue bonds;
(10) To secure any of its bonds by pledge and indenture as provided in this chapter;
(11) To appoint, employ, and compensate such agents, architects, and legal counsel as the business of the authority may require;
(12) To provide for such insurance as the board may deem advisable;
(13) To invest any of its funds pending need therefor as provided in this chapter;
(14) To contract, lease, and make lease agreements respecting its properties or any thereof as provided in this chapter; and
(15) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful in connection with or in the operation of any project; provided, that it shall not have the power to sell or convey any project substantially as a whole except as provided in this chapter.
*(Acts 1961, No. 895, p. 1407, §8; Acts 1961, Ex. Sess., No. 289, p. 2335, §8.)*
##### **§ 11-57-9** Powers - Eminent Domain {#sec-11-57-9 omnilex-key=us-al-statutes--title-11--11-57-9}
The authority shall have the same power of eminent domain as is vested by law in the municipality, which power shall be exercised in the same manner and under the same conditions as are provided by law for the exercise of the power of eminent domain by the municipality.
*(Acts 1961, No. 895, p. 1407, §9; Acts 1961, Ex. Sess., No. 289, p. 2335, §9.)*
##### **§ 11-57-10** Leasing of Projects {#sec-11-57-10 omnilex-key=us-al-statutes--title-11--11-57-10}
The authority and the municipality are hereby respectively authorized to enter into one or more lease agreements with each other whereunder one or more projects or any part thereof shall be leased by the authority to the municipality. No such lease agreement shall be for a term longer than the then current fiscal year in which it is made. Any such lease agreement made, however, may contain a grant to the municipality of successive options to renew such lease agreement, on the conditions specified therein, for additional terms, but no such additional term shall be for a period longer than the fiscal year in which such renewal shall be made. The lease agreement may contain provisions as to the method by which such renewal may be effected. The obligation on the part of the municipality to pay the rental required to be paid and to perform the agreements on the part of the municipality required to be performed during any fiscal year during which the lease agreement is in effect shall constitute a general obligation of the municipality, and the municipality is authorized to pledge its full faith and credit for the payment of such rental and the performance of such agreements; provided, that the rental required to be paid and the agreements required to be performed by the municipality under the lease agreement during any fiscal year during which the lease agreement is in effect shall be payable solely out of the current revenues of the municipality for such fiscal year. Any lease agreement may contain such covenants as shall not be inconsistent with this chapter. The rental required to be paid and the agreements required to be performed by the municipality under the provisions of the lease agreement shall never create an indebtedness of the municipality within the meaning of Section 225 of the Constitution of the state.
If any space available for rent in any project which shall have been leased in whole or in part to the municipality should become vacant after acquisition or construction of the project by the authority, then until such time as all such vacant space shall have been filled or rented neither the municipality nor any officer, department or agency thereof shall thereafter enter into any rental agreement or renew any then existing rental agreement for other space in or about the municipality to be used for the same purposes for which such vacant space in the project is capable of being used.
*(Acts 1961, No. 895, p. 1407, §10; Acts 1961, Ex. Sess., No. 289, p. 2335, §10.)*
##### **§ 11-57-11** Bonds - Authority for Issuance; Security for Payment of Principal and Interest Generally; Form, Terms, Denominations, Etc.; Sale, Redemption, Etc {#sec-11-57-11 omnilex-key=us-al-statutes--title-11--11-57-11}
The authority is empowered at any time and from time to time to sell and issue its revenue bonds for the purpose of providing funds to acquire, construct, improve, enlarge, complete and equip one or more projects and for payment of obligations incurred for any such purpose. The principal of and interest on any such bonds shall be payable solely out of the revenues derived from the project with respect to which such bonds were issued.
Any bonds of the authority may be delivered by it at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest, payable and evidenced in such manner, may contain provisions for redemption prior to maturity and may contain other provisions not inconsistent with this chapter as may be provided by the resolution of the board whereunder such bonds are authorized to be issued; provided, that no bond of the authority shall have a specified maturity date later than 30 years after its date. Each bond of the authority having a specified maturity date more than 10 years after its date shall be made subject to redemption at the option of the authority at the end of the tenth year after its date and on any interest payment date thereafter under such terms and conditions as may be provided in the resolution under which such bond is authorized to be issued.
Bonds of the authority may be sold at either public or private sale in such manner and at such time or times as may be determined by the board to be most advantageous to the authority.
Bonds issued by the authority shall not be general obligations of the authority but shall be payable solely out of the revenues derived from the project with respect to which such bonds were issued.
*(Acts 1961, No. 895, p. 1407, §11; Acts 1961, Ex. Sess., No. 289, p. 2335, §11.)*
##### **§ 11-57-12** Bonds - Recital as to Authority for Issuance; Notice of Resolution Authorizing Issuance of Bonds; Limitation Period for Actions, Etc., as to Validity of Proceedings for Issuance of Bonds, Etc {#sec-11-57-12 omnilex-key=us-al-statutes--title-11--11-57-12}
(a) Any resolution authorizing any bonds under this chapter shall contain a recital that they are issued pursuant to the provisions of this chapter, which recital shall be conclusive evidence that said bonds have been duly authorized pursuant to the provisions of this chapter, notwithstanding the provisions of any other law now in force or hereafter enacted or amended.
(b) Upon the adoption by the board of any resolution providing for the issuance of bonds, the authority may, in its discretion, cause to be published once a week for two consecutive weeks in a newspaper then published in the municipality or, if there is no newspaper then published in the municipality, then in a newspaper published or circulated in the county, a notice in substantially the following form (with any appropriate changes and with the blanks being properly filled in): “_____, a public corporation and a political subdivision of the State of Alabama, has authorized the issuance of $_____ principal amount of bonds of the said authority to be dated _____ for purposes authorized in the act of the Legislature of Alabama under which the said authority was organized, and has entered into a lease with the (city or town) of _____ respecting the project described therein and pledged said lease and the rentals payable thereunder as security for said bonds. Any civil action or proceeding questioning the validity of the said bonds, or the pledge and the indenture to secure the same, or the said lease, must be commenced within 20 days after the first publication of this notice.
“_____
“By _____
“Its president”
(c) Any civil action or proceeding in any court to set aside or question the validity of the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of any such bonds or the validity of the lease agreement pledged therefor or the validity of the indenture must be commenced within 20 days after the first publication of such notice. After the expiration of the said period no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds or the lease agreement or the indenture shall be asserted nor shall the validity of the said proceedings, bonds, lease agreement or indenture be open to question in any court on any ground whatsoever except in a civil action or proceeding commenced within said period.
*(Acts 1961, No. 895, p. 1407, §23; Acts 1961, Ex. Sess., No. 289, p. 2335, §23.)*
##### **§ 11-57-13** Bonds - Execution and Delivery {#sec-11-57-13 omnilex-key=us-al-statutes--title-11--11-57-13}
The bonds of the authority shall be signed by either its president or its vice-president as shall be provided in the resolution under which the bonds shall be issued, and the seal of the authority shall be affixed to the bonds and attested by its secretary; provided, that a facsimile of the signature of one, but not both, of the officers whose signatures will appear on the bonds may be imprinted or otherwise reproduced on any of the bonds in lieu of his manually signing the same; provided further, that a facsimile of the seal of the authority may be imprinted or otherwise reproduced on any of the bonds in lieu of being manually affixed thereto. Any interest coupons applicable to the bonds shall be signed either manually by or with a facsimile of the signature of either the president or the vice-president of the authority as shall be provided in the resolution under which the bonds shall be issued.
If, after any of the bonds or interest coupons thereunto appertaining shall be so signed, whether manually or by facsimile, any such officer shall for any reason vacate his office, the bonds and interest coupons so signed may nevertheless be delivered at any time thereafter as the act and deed of the authority.
*(Acts 1961, No. 895, p. 1407, §13; Acts 1961, Ex. Sess., No. 289, p. 2335, §23.)*
##### **§ 11-57-14** Bonds - Negotiability {#sec-11-57-14 omnilex-key=us-al-statutes--title-11--11-57-14}
All bonds issued by the authority, while not registered, shall be construed to be negotiable instruments even though they are payable from a limited source. All coupons applicable to any bonds issued by the authority, while the applicable bonds are not registered as to both principal and interest, shall likewise be construed to be negotiable instruments although payable from a limited source.
*(Acts 1961, No. 895, p. 1407, §19; Acts 1961, Ex. Sess., No. 289, p. 2335, §19.)*
##### **§ 11-57-15** Bonds - Security for Payment of Principal and Interest {#sec-11-57-15 omnilex-key=us-al-statutes--title-11--11-57-15}
The principal of and the interest on the bonds shall be secured by a pledge of the revenues out of which the bonds shall be made payable by an assignment or pledge of the lease agreement covering the project from which revenues so pledged shall be derived and by a pledge of the rental from such project and may be secured by a nonforeclosable indenture covering the project.
The trustee under any indenture may be a trust company or bank having trust powers, whether located within or without the state. The indenture may contain any agreements and provisions customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection, segregation and application of the rental from any project covered by such indenture, the terms to be incorporated in the lease agreement respecting the project, the maintenance and insurance of the project, the creation and maintenance of special funds from the rental of the project and the rights and remedies available in the event of default to the holders of the bonds or the trustee under the indenture as the board shall deem advisable and shall not be in conflict with the provisions of this chapter; provided, that in making any such agreements or provisions the authority shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom. The indenture may contain provisions regarding the rights of any trustee thereunder and the holders of the bonds and coupons and may contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Acts 1961, No. 895, p. 1407, §14; Acts 1961, Ex. Sess., No. 289, p. 2335, §14.)*
##### **§ 11-57-16** Bonds - Disposition of Proceeds from Sale {#sec-11-57-16 omnilex-key=us-al-statutes--title-11--11-57-16}
(a) The proceeds derived from the sale of any bonds sold by the authority, other than refunding bonds, shall be used only to pay the cost of acquiring, constructing, improving, enlarging and equipping one or more projects as may be provided in the proceedings in which the bonds are authorized to be issued.
(b) Such cost, which shall be paid from the proceeds derived from the sale of bonds, shall be deemed to include the following:
(1) The cost of acquiring any land forming a part of the project;
(2) The cost of the labor, materials and supplies used in any such construction, improvement or enlargement, including architect’s and engineer’s fees and the cost of preparing contract documents and advertising for bids;
(3) The purchase price of and the cost of installing equipment for the project;
(4) The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities and parking places in connection therewith;
(5) Legal, fiscal and recording fees and expenses incurred in connection with any such acquisition and construction and with the authorization, sale and issuance of the bonds issued in connection with the project; and
(6) Interest on the bonds for a reasonable period prior to the commencement of the construction of the project and during the period that is estimated will be required for such construction and for a period of not more than six months after the completion of such construction.
(c) If any proceeds derived from the sale of the bonds remain undisbursed after completion of the work and payment of all costs and expenses in connection with the project with respect to which the bonds are issued, such balance shall be applied toward the retirement of the bonds. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were authorized to be issued.
*(Acts 1961, No. 895, p. 1407, §15; Acts 1961, Ex. Sess., No. 289, p. 2335, §15.)*
##### **§ 11-57-17** Refunding Bonds {#sec-11-57-17 omnilex-key=us-al-statutes--title-11--11-57-17}
The authority may at any time and from time to time sell and issue its refunding revenue bonds for the purpose of refunding the principal of and interest on any matured or unmatured bonds of the authority at the time outstanding and for the payment of any expenses incurred in connection with such refunding and any premium necessary to be paid to redeem or retire the bonds so to be refunded. Any such refunding may be effected either by sale of refunding bonds and the application of the proceeds thereof to payment, redemption or retirement of the bonds to be refunded thereby, by exchange of the refunding bonds for the bonds or interest coupons to be refunded thereby or by any combination thereof; provided, that the holders of any bonds or coupons so to be refunded shall not be compelled without their consent to surrender their bonds or coupons for payment or exchange prior to the date on which they may be paid or redeemed by the authority under their respective provisions. Any refunding bonds of the authority shall be payable solely from the revenues out of which the bonds or coupons to be refunded thereby were payable.
All provisions of this chapter pertaining to bonds of the authority that are not inconsistent with the provisions of this section shall, to the extent applicable, also apply to refunding bonds issued by the authority.
*(Acts 1961, No. 895, p. 1407, §12; Acts 1961, Ex. Sess., No. 289, p. 2335, §12.)*
##### **§ 11-57-18** Investment in Bonds - by Municipalities {#sec-11-57-18 omnilex-key=us-al-statutes--title-11--11-57-18}
The governing body is authorized in its discretion to invest in bonds of the authority any idle or surplus money held in the treasury of the municipality which is not otherwise earmarked or pledged.
*(Acts 1961, No. 895, p. 1407, §22; Acts 1961, Ex. Sess., No. 289, p. 2335, §22.)*
##### **§ 11-57-19** Investment in Bonds - by Executors, Savings Banks, Insurance Companies, Etc {#sec-11-57-19 omnilex-key=us-al-statutes--title-11--11-57-19}
Bonds issued under the provisions of this chapter are hereby made legal investments for savings banks and insurance companies organized under the laws of the state. Unless otherwise directed by the court having jurisdiction thereof or the document that is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in bonds of the authority.
*(Acts 1961, No. 895, p. 1407, §21; Acts 1961, Ex. Sess., No. 289, p. 2335, §21.)*
##### **§ 11-57-20** Remedies Upon Default on Bonds, Lease Agreements, Etc {#sec-11-57-20 omnilex-key=us-al-statutes--title-11--11-57-20}
(a) In event of default on the bonds. If there should be any default in the payment of the principal of or interest on any bonds issued under this chapter, then the holder of any of the bonds and of any of the interest coupons applicable thereto and the trustee under any indenture, or any one or more of them, may by mandamus, injunction or other proceedings compel performance of all duties of the officers and directors of the authority with respect to the use of funds for the payment of the bonds and for the performance of the agreements of the authority contained in the proceedings under which they were issued, shall be entitled to a judgment against the authority for the principal of and interest on the bonds so in default and, regardless of the sufficiency of the security for the bonds in default and as a matter of right, shall be entitled to the appointment of a receiver to make lease agreements respecting the project out of whose revenues the bonds so in default are payable and fix and collect rents therefor and to operate, administer and maintain the project as a public library facility with all powers of a receiver in the exercise of any of said functions. The income derived from any lease agreement made and any operation of the project carried on by any such receiver shall be expended in accordance with the provisions of the proceedings under which the bonds were authorized to be issued and the orders of the court by which such receiver is appointed.
(b) In event of default in lease agreement, etc. If there should be any default by the municipality in the payment of any installment of rent or in the performance of any agreement required to be made or performed by the municipality under the provisions of any lease agreement, the authority and the trustee under any indenture, or either of them, may by mandamus, injunction or other proceedings compel performance by the officials of the municipality of their duties respecting the payment of the rentals required to be paid and performance of the agreements on the part of the municipality required to be performed under any such lease agreement, and shall be entitled to a judgment against the municipality for all monetary payments required to be made by the municipality under the provisions of such lease agreement with respect to which the municipality is then in default.
(c) Remedies cumulative. The remedies specified in subsections (a) and (b) of this section shall be cumulative to all other remedies which may otherwise be available for the benefit of the holders of the bonds and the coupons applicable thereto; provided, that any indenture shall not be subject to foreclosure and shall not be construed so as to authorize the sale of any project covered thereby or any part thereof in satisfaction of the bonds secured thereby.
*(Acts 1961, No. 895, p. 1407, §16; Acts 1961, Ex. Sess., No. 289, p. 2335, §16.)*
##### **§ 11-57-21** Liability of State or Municipalities on Bonds and Obligations of Authorities {#sec-11-57-21 omnilex-key=us-al-statutes--title-11--11-57-21}
All obligations incurred by the authority and all bonds issued by it shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the State of Alabama or of the municipality.
*(Acts 1961, No. 895, p. 1407, §20; Acts 1961, Ex. Sess., No. 289, p. 2335, §20.)*
##### **§ 11-57-22** Investment of Funds of Authorities {#sec-11-57-22 omnilex-key=us-al-statutes--title-11--11-57-22}
Any portion of the principal proceeds derived from the sale of the bonds which the board may determine is not presently needed for any of the purposes for which the bonds are authorized to be issued and any other moneys of the authority which the board may determine will not be presently needed by the authority may, on order of the board, be invested in any securities that are direct obligations of the United States of America or the principal of and interest on which are unconditionally and irrevocably guaranteed by the United States of America. Any securities in which any such investment is made may, at any time and from time to time on order of the board, be sold or otherwise converted into cash. The income derived from any such investments shall be disbursed on order of the board for any purpose for which the authority may lawfully expend funds.
*(Acts 1961, No. 895, p. 1407, §17; Acts 1961, Ex. Sess., No. 289, p. 2335, §17.)*
##### **§ 11-57-23** Conveyances of Property to Authorities by Municipalities {#sec-11-57-23 omnilex-key=us-al-statutes--title-11--11-57-23}
The municipality is hereby authorized to transfer and convey to the authority, with or without the payment of monetary consideration therefor, any property that may immediately preceding such conveyance be owned by the municipality, whether or not such property is necessary for the conduct of the governmental or other public functions of the municipality; provided, that such conveyance shall be authorized by a resolution duly adopted by the governing body prior to the conveyance. Such resolution shall be published one time, at least five days before such transfer is consummated, in a newspaper published in the municipality or, if there is no newspaper then published in the municipality, then in a newspaper published or circulated in the county.
*(Acts 1961, No. 895, p. 1407, §24; Acts 1961, Ex. Sess., No. 289, p. 2335, §24.)*
##### **§ 11-57-24** Authority and Procedure for Dissolution of Authorities; Vesting of Title to Assets or Properties Thereof in Municipalities Upon Dissolution; Formation of Authorities Not to Prevent Subsequent Formation of Other Authorities by Same Municipalities {#sec-11-57-24 omnilex-key=us-al-statutes--title-11--11-57-24}
(a) At any time when the authority does not have any bonds outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of said resolution in the office of the judge of probate of the county, the authority shall thereupon stand dissolved; and, in the event that it owned any assets or property at the time of its dissolution, the title to all its assets and property shall thereupon vest in the municipality. In the event the authority shall at any time have outstanding bonds issued hereunder payable out of the revenues of different projects, then as and when the principal of and interest on all bonds payable from the revenues derived from any project shall have been paid in full, title to the project with respect to which the bonds so paid in full have been paid shall thereupon vest in the municipality, but such vesting of title in the municipality shall not affect the title of the authority to any other project the revenues from which are pledged to the payment of any other bonds then outstanding.
(b) The formation of one or more public corporations under the provisions of this chapter shall not prevent the subsequent formation under this chapter of other public corporations pursuant to permission granted by the same municipality.
*(Acts 1961, No. 895, p. 1407, §25; Acts 1961, Ex. Sess., No. 289, p. 2335, §25.)*
##### **§ 11-57-25** Exemption from Taxation of Properties, Bonds, Etc {#sec-11-57-25 omnilex-key=us-al-statutes--title-11--11-57-25}
The properties of the authority and the income therefrom, all lease agreements made by the authority, all bonds issued by the authority and the coupons applicable thereto and the income therefrom and all indentures executed with respect thereto shall be forever exempt from any and all taxation in the State of Alabama.
*(Acts 1961, No. 895, p. 1407, §18; Acts 1961, Ex. Sess., No. 289, p. 2335, §18.)*
##### **§ 11-57-26** Construction of Chapter {#sec-11-57-26 omnilex-key=us-al-statutes--title-11--11-57-26}
This chapter shall not be construed as a restriction or limitation upon any power, right or remedy which any municipality or any corporation now in existence or hereafter formed may have in the absence hereof and shall be construed as cumulative and independent thereof.
*(Acts 1961, No. 895, p. 1407, §26; Acts 1961, Ex. Sess., No. 289, p. 2335, §26.)*
### **Chapter 58** Medical Clinic Boards
##### **§ 11-58-1** Definitions {#sec-11-58-1 omnilex-key=us-al-statutes--title-11--11-58-1}
When used in this chapter, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) CLINICAL FACILITIES. Real property for the location or better utilization of a medical clinic, buildings, parking areas, garages, storage facilities, outbuildings, machinery, equipment, furniture, and fixtures useful or desirable in the operation of a medical clinic.
(2) DOMICILIARY CARE FACILITY. Homes for the aged, intermediate institutions, and related institutions, whose primary purpose is to furnish room, board, laundry, personal care, and other nonmedical services, regardless of what it may be named or called, for not less than 24 hours in any week to three or more individuals not related by blood or marriage to the owner or administrator. This kind of care implies sheltered protection and supervised environment for persons, who because of age or disabilities, are incapable of living independently in their own homes or a commercial board and room situation, yet who do not require the medical and nursing services provided in a nursing home. In these facilities, there might be available temporarily and incidentally the same type of limited medical attention as an individual would receive if he or she were living in his or her own home.
(3) MEDICAL CLINIC. Any one or more of buildings or facilities operated by a county or municipal medical clinic board which serve to promote the public health, either by providing places for the diagnosis, treatment, or cure of sick or injured persons or for research with respect to any of the foregoing, including, without limiting the generality of the foregoing, hospitals, sanitoriums, nursing homes, offices for persons engaged in the diagnosis, treatment, or cure of sick and injured persons, buildings to house or service equipment used for the diagnosis or treatment of sick or injured persons or the records of the diagnosis, treatment, or research with respect to any of the foregoing and hotels and motels intended primarily for use by patients and relatives and attendants of patients or patrons of any medical clinic, as well as domiciliary facilities so long as the domiciliary facility is required to be approved or licensed by any federal, state, or local government agency having jurisdiction in the planning or operation of health care facilities, or is owned or operated in conjunction with any nursing home. Domiciliary facilities shall not be exempt from ad valorem taxation.
(4) MEDICAL CLINIC BOARD. A corporation formed pursuant to this chapter for the purpose of acquiring and operating a county or municipal medical clinic.
*(Acts 1955, No. 516, p. 1160, §1; Acts 1965, 1st Ex. Sess., No. 109, p. 153, §2; Acts 1979, No. 79-831, p. 1567, §1; Acts 1983, No. 83-496, p. 694, §2; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-2** Purpose of Chapter; Application for Authority to Form Corporation; Adoption of Resolution by Governing Body Authorizing Incorporation; Execution and Filing of Certificate of Incorporation Generally; Effect of Granting of Authority for Incorporation Upon Incorporation of Other Such Corporations {#sec-11-58-2 omnilex-key=us-al-statutes--title-11--11-58-2}
(a) The purpose of this chapter is to provide for the incorporation of medical clinic boards as public agencies and instrumentalities of the State of Alabama to promote the acquisition of health facilities in order to promote the public health of the people of Alabama and also to promote the acquisition of certain other facilities for the housing and care of elderly persons.
(b) Whenever any number of natural persons, not less than three, shall file with the governing body of any county or municipality in this state an application in writing for authority to incorporate a public corporation as a medical clinic board for the purpose of acquiring, owning, leasing, and disposing of one or more medical clinics and clinical facilities and it shall be made to appear to the governing body that each of the persons is a duly qualified elector of and owner of property in the municipality, or in the county in areas outside of municipalities located in the county, the governing body shall consider the application. If the governing body approves the application, it shall adopt a resolution, which shall be duly entered upon the minutes of the governing body declaring that it is wise, expedient, and necessary that such a corporation be formed and that the persons filing the application shall be authorized to form the corporation. Upon the adoption of the resolution, the persons who filed the application shall proceed to organize the corporation by executing and filing for record in the office of the judge of probate of the county, or in the office of the judge of probate of one or more of the counties in which any municipality is located a certificate of incorporation as provided in this chapter.
(c) The granting of authority for the incorporation of one medical clinic board shall not preclude the granting of authority by the governing body of any municipality or county for the incorporation of other medical clinic boards. Other medical clinic boards seeking incorporation shall be required to adopt a name or designation sufficient to distinguish them from any existing medical clinic board.
*(Acts 1955, No. 516, p. 1160, §1; Acts 1965, 1st Ex. Sess., No. 109, p. 153, §2; Acts 1983, No. 83-496, p. 694, §1; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-3** Contents, Execution, Acknowledgment, Filing and Recordation of Certificate of Incorporation {#sec-11-58-3 omnilex-key=us-al-statutes--title-11--11-58-3}
(a) The certificate of incorporation of any corporation organized under this chapter shall state:
(1) The name of the corporation, which shall be a name indicating the purpose for which the corporation is organized [e.g., “The Medical Clinic Board for the (County) (City) or (Town) of _____”].
(2) The location of its principal office and the post office address thereof.
(3) The period for the duration of the corporation. (If the duration is to be perpetual, this fact should be stated).
(4) The objects for which the corporation is organized.
(5) Any other provisions not contrary to law which the incorporators choose to insert for the regulation and conduct of the affairs of the corporation.
(b) The certificate of incorporation shall be acknowledged before an officer authorized by the laws of this state to take acknowledgment of deeds. When so acknowledged, the certificate shall be filed in the office of the judge of probate of the county, or one of the counties in which any municipality is located, and the judge of probate shall immediately file and record the certificate. Thereupon the applicants shall constitute a corporation under the name stated in the certificate of incorporation.
*(Acts 1955, No. 516, p. 1160, §2; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-4** Board of Directors {#sec-11-58-4 omnilex-key=us-al-statutes--title-11--11-58-4}
Each corporation formed under this chapter shall have a board of directors which shall constitute the governing body of the corporation, consisting of three members who shall serve without compensation, except that they shall be reimbursed for actual expenses incurred in the performance of their duties under this chapter and, at the discretion of the board of directors, may be paid a director’s fee of ten dollars ($10) for each director’s meeting attended by them not to exceed a total of one hundred twenty dollars ($120) per member per year. No member of the board shall be an officer of the municipality or county. The directors of the corporation shall be elected by the governing body of the respective municipality or county and they shall be so elected that they shall hold office for staggered terms. The first term of office of one director shall be two years, of another director shall be four years, and of a third director shall be six years, as shall be designated at the time of their election. Thereafter the term of office of each director shall be six years.
*(Acts 1955, No. 516, p. 1160, §3; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-5** Powers of Corporations Generally {#sec-11-58-5 omnilex-key=us-al-statutes--title-11--11-58-5}
Each corporation formed under this chapter shall have the following powers, together with all the powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation (which may be in perpetuity) unless sooner dissolved as provided in this chapter.
(2) To sue and be sued and prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties.
(3) To have and use a corporate seal and to alter it at pleasure.
(4) To acquire, whether by purchase, exchange, lease, construction, or otherwise one or more medical clinics and any necessary or desirable clinical facilities.
a. Any municipal medical clinic shall be located either within the corporate limits of the municipality or within 15 miles of the corporate limits, but not within the corporate limits or police jurisdiction of any other municipality, unless the other municipality shall by resolution adopted by its governing body consent to the location within its police jurisdiction.
b. A county medical clinic shall be located within the county in which it is incorporated.
c. No municipal or county medical clinic shall be located outside of the county in which the board is incorporated, unless the governing body of the other county by resolution consents to the location within its boundaries.
(5) To improve, enlarge, maintain, equip, and furnish one or more medical clinics and any necessary or desirable clinical facilities.
(6) To lease to others one or more medical clinics or parts of clinics and any clinical facilities, to charge and collect rent therefor, to terminate any lease upon the failure of the lessee to comply with any of the lease obligations, and to grant options to renew or extend any lease upon terms and conditions as the board of directors may determine. No lease shall extend beyond the last maturity of any bonds issued by the medical clinic board or 60 years from the date of the lease, whichever is the longer, and no option to renew shall permit the extension of any lease beyond that period.
(7) To sell, exchange, and convey, to contract to sell, exchange, or convey, and to grant options to any lessee to acquire any medical clinic and any clinical facilities and any or all of its properties whenever its board of directors finds it to be in furtherance of the purpose for which the corporation was organized.
(8) To borrow money and to issue its bonds for the purpose of carrying out any of its powers.
(9) To mortgage and pledge any one or more of its medical clinics and any or all of its clinical facilities or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues, rentals, and receipts therefrom or from any part thereof as security for the payment of the principal and interest on any bonds issued and any agreements made in connection therewith.
(10) To enter into contracts and agreements or to do any act necessary for or incidental to the performance of the duties and the execution of its powers under this chapter.
(11) To accept gifts, money, or property, including one or more medical clinics and clinical facilities, from any source whatsoever, subject to any conditions the board of directors approves.
(12) To appoint and employ those officers and agents, including attorneys, as its business requires.
(13) To provide for any insurance its board of directors deems advisable.
*(Acts 1955, No. 516, p. 1160, §4; Acts 1965, 1st Ex. Sess., No. 109, p. 153, §3; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-5.1** Power of Eminent Domain {#sec-11-58-5.1 omnilex-key=us-al-statutes--title-11--11-58-5.1}
Medical clinic boards are hereby granted the power of eminent domain and may exercise such power in the manner provided by law for the purpose of obtaining real property for medical clinics and clinical facilities.
*(Acts 1979, No. 79-831, p. 1567, §2.)*
##### **§ 11-58-5.2** Authority to Readjust Debt Pursuant to Federal Bankruptcy Laws {#sec-11-58-5.2 omnilex-key=us-al-statutes--title-11--11-58-5.2}
(a) This section shall apply to any medical clinic board that leases property to a licensed acute care hospital or general health care provider that has voluntarily filed for Chapter 11 bankruptcy under the United States Bankruptcy Code.
(b) A medical clinic board meeting the requirements of subsection (a) shall have the power to take all steps and proceedings contemplated or permitted by any act of the Congress of the United States relating to the readjustment of municipal indebtedness including, without limitation, the commencement of a case under the United States Bankruptcy Code, and the State of Alabama gives its assent thereto and authorizes such a medical clinic board to proceed under the federal acts for the readjustment of its debts.
(c)(1) The members of the board of directors of a medical clinic board authorized under this section to pursue readjustment of its debts shall be immune from suit and liability, both personally and in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error, or omission that occurred, or that the member against whom the claim is made had a reasonable basis for believing occurred, within the scope of board employment, duties, or responsibilities.
(2) Nothing in this subsection shall be construed to protect any member from suit or liability for any damage, loss, injury, or liability caused by the intentional, willful, or wanton misconduct of that member.
(3) The procurement of insurance of any type by the board of directors does not in any way compromise or limit the immunity granted by this subsection.
*(Act 2025-82, §1.)*
##### **§ 11-58-6** Requirements as to Leasing of Medical Clinics or Clinical Facilities; Disposition of Revenue from Operation of Clinic {#sec-11-58-6 omnilex-key=us-al-statutes--title-11--11-58-6}
(a) Prior to the leasing of the medical clinic or clinical facilities, the board of directors must determine and find the following:
(1) The amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance such clinic (which term, as used in this section, shall also include any clinical facilities covered by any such lease);
(2) Unless the proceedings under which the proposed bonds are to be issued provide that any debt service reserve fund which the board of directors deems it advisable to establish in connection with the retirement of the proposed bonds is to be entirely funded out of the proceeds from the sale of such bonds, the amount necessary to be paid each year into any such reserve fund;
(3) The amount necessary to be paid each year into any reserve fund which the board of directors may deem it advisable to establish in connection with the maintenance of the clinic; and
(4) Unless the terms under which the clinic or its facilities is to be leased provide that the lessee shall maintain the clinic and carry all proper insurance with respect thereto, the estimated cost of maintaining the clinic in good repair and keeping it properly insured.
(b) The determinations and findings of the board of directors required to be made in subsection (a) shall be set forth in the proceedings under which the proposed bonds are to be issued; and the corporation shall lease the clinic or its facilities to a lessee or lessees, under an agreement providing for payment to the corporation of such rentals as, upon the basis of such determinations and findings, will be sufficient:
(1) To pay the principal of and interest on the bonds issued to finance the clinic;
(2) Unless the proceedings under which the proposed bonds are to be issued provide that any debt service reserve fund deemed by its board of directors to be advisable in connection with the retirement of the proposed bonds is to be entirely funded out of the proceeds from the sale of such bonds, to build up and maintain such reserve fund;
(3) To build up and maintain any reserve deemed by the board of directors to be advisable in connection with the maintenance of such clinic; and
(4) Unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the clinic, to pay the costs of maintaining the clinic in good repair, and keeping it properly insured.
(c) Any revenues derived from the operation of the clinic, over and above the amounts necessary to meet the charges hereinabove specified, may be applied to the payment of the principal of and the interest on the bonds issued to finance the clinic, or for other expenditures in connection with maintaining, expanding, operating, or equipping the clinic, at the discretion of the board of directors.
*(Acts 1955, No. 516, p. 1160, §7; Acts 1975, No. 755, p. 1525, §2.)*
##### **§ 11-58-7** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Etc.; Dissolution of Corporation {#sec-11-58-7 omnilex-key=us-al-statutes--title-11--11-58-7}
(a) All bonds issued by a corporation organized under authority of this chapter shall be solely and exclusively obligations of the corporation and shall not create an obligation or debt of any municipality or county. No county or municipality shall pledge its faith or credit for the payment of any debt incurred or bonds issued by the corporation.
(b) Bonds may be executed and delivered at any time and from time to time, may be in the form and denominations, may be of the tenor, may be in registered or bearer form, either as to principal or interest or both, may be payable in installments and at a time or times, not exceeding 40 years from their issuance date, may be payable at a place or places, may bear interest at a rate or rates payable at a place or places and evidenced in a manner, and may contain provisions not inconsistent with this chapter as may be provided by resolution of its board of directors. Bonds issued shall be signed by the chair of its board of directors or other chief executive officer and attested by its secretary, and the seal of the corporation shall be affixed. A facsimile signature of one corporate officer may be impressed or printed on any bonds in lieu of a manual signature. Any interest coupon applicable to the bonds of the corporation shall be signed by the chair of the board of directors or other chief executive officer, but a facsimile of the signature may be impressed or printed on any interest coupon in lieu of manually signing the coupon.
(c) Any bonds issued under the authority of this chapter may be sold at public or private sale in a manner and from time to time as determined by the board of directors to be most advantageous. The corporation may pay all expenses, premiums and commissions which its board of directors deems necessary or advantageous in connection with the authorization, sale, and issuance of its bonds.
(d) All bonds issued under the authority of this chapter and all applicable interest coupons shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source.
(e) Whenever the principal of and interest on all bonds of a corporation payable from the revenues derived from the operation of one or more medical clinics owned by the corporation have been paid in full, its board of directors may by resolution determine that the purposes for which the corporation was formed have been substantially complied with, and shall thereupon execute and file for record in the office of the judge of probate of the county in which the corporation is organized a certificate of dissolution reciting those facts and declaring the corporation to be dissolved. The certificate of dissolution shall be executed under the corporate seal of the corporation. Upon the filing of the certificate of dissolution, the corporation shall stand dissolved, and title to all funds and properties owned by it at the time of dissolution shall vest in and be delivered to the county or municipality. The dissolution of one or more corporations under this chapter shall not cause the dissolution of other existing corporations, nor preclude the subsequent formation hereunder of other corporations.
*(Acts 1955, No. 516, p. 1160, §5; Acts 1965, 1st Ex. Sess., No. 109, p. 153, §4; Acts 1975, No. 755, p. 1525, §1; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-8** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-58-8 omnilex-key=us-al-statutes--title-11--11-58-8}
The principal of and interest on any bonds issued by a corporation organized under the authority of this chapter shall be secured by a pledge of the rentals and other receipts of all or any part of the medical clinic and its facilities financed in whole or in part with the proceeds of such bond issue or with the proceeds of bonds refunded or to be refunded by such issue, may be secured by a mortgage covering all or any part of the clinic from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such clinic.
The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of rents for any clinic or clinical facilities covered by such proceedings or mortgage, the terms to be incorporated in the lease of such clinic or facilities, the creation and maintenance of special funds from the revenues from such clinic or facilities and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage as the board of directors shall deem advisable and as shall not be in conflict with the provisions of this chapter; provided, however, that in making any such agreements or provisions a corporation organized under this chapter shall not have the power to obligate itself except with respect to the medical clinic and the application of the revenues therefrom.
The proceedings authorizing any bonds under this chapter and any mortgage securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained in the mortgage, the mortgage may be foreclosed either by sale at public outcry or by civil action and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor.
*(Acts 1955, No. 516, p. 1160, §6.)*
##### **§ 11-58-9** Bonds - Disposition of Proceeds from Sale {#sec-11-58-9 omnilex-key=us-al-statutes--title-11--11-58-9}
(a) The proceeds from the sale of any bonds issued by a corporation organized under authority of this chapter shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; provided further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds.
(b) The cost of acquiring any medical clinic, which shall be paid from the proceeds derived from the sale of bonds, shall be deemed to include the following:
(1) The actual cost of the construction of any part of a building which may be constructed, including architect’s and engineer’s fees;
(2) The purchase price of any land or any part of a building or any clinical facilities that may be acquired by purchase;
(3) All expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and,
(4) The interest on such bonds for a reasonable time prior to construction, during construction and for a period not exceeding six months after completion of construction.
*(Acts 1955, No. 516, p. 1160, §9.)*
##### **§ 11-58-10** Refunding Bonds {#sec-11-58-10 omnilex-key=us-al-statutes--title-11--11-58-10}
Any bonds issued by a corporation organized under this chapter and at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding bonds in such amount as the board of directors may deem necessary but not exceeding the principal amount of the bonds to be refunded, any expenses estimated to be incurred in connection with such refunding and interest (accrued or to accrue) to the respective maturities of the bonds to be refunded or, if the bonds to be refunded are to be called for redemption, either on the earliest date on which under their terms they may be redeemed or some other date or dates, the interest (accrued or to accrue) on the bonds to be refunded to the date or dates on which they are to be called for redemption plus the amount of any redemption premium required by their terms to be paid as a condition to their redemption prior to their respective maturities.
Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption.
Any refunding bonds issued by a corporation organized under the authority of this chapter shall be subject to the provisions contained in Section 11-58-7 and may be secured in accordance with the provisions of Section 11-58-8.
*(Acts 1955, No. 516, p. 1160, §8; Acts 1975, No. 755, p. 1525, §3; Acts 1977, No. 505, p. 662.)*
##### **§ 11-58-11** Investment in Bonds by Savings Banks and Insurance Companies {#sec-11-58-11 omnilex-key=us-al-statutes--title-11--11-58-11}
Bonds issued under the provisions of this chapter shall be legal investments for savings banks and insurance companies organized under the laws of this state.
*(Acts 1955, No. 516, p. 1160, §10.)*
##### **§ 11-58-12** Conveyances of Properties to Corporations by Municipalities and Counties {#sec-11-58-12 omnilex-key=us-al-statutes--title-11--11-58-12}
(a) Any county and any incorporated city and town may transfer and convey to its county or municipal medical clinic board, as the case may be, that is duly incorporated pursuant to this chapter, any property that may, immediately preceding the conveyance, have been owned by the county or municipality, including medical clinics and clinical facilities, hospitals and hospital facilities, and assets and any land used or useable for medical clinic or hospital purposes, whether or not the property is necessary for the conduct of the governmental or other public functions of the county or municipality. A transfer or conveyance of property shall have prior authorization by resolution duly adopted by the governing body of the county, respecting county medical clinics, or the municipality. The resolution shall have been published one time, at least five days before a transfer or conveyance is consummated, in a newspaper published in the county, respecting county medical clinics, or the municipality, regarding municipal medical clinics. If no newspaper is published in the municipality, the resolution shall be published in a newspaper published or circulated in the county the municipality is located. A transfer or conveyance may be made with or without the payment of monetary or other consideration therefor.
(b) The foregoing authorization shall apply to any hospital, hospital assets, or other property, tangible or intangible, received by an incorporated city or town upon the dissolution of any hospital building authority incorporated under Sections 22-21-130 through 22-21-155.
*(Acts 1973, No. 1225, p. 2072; Acts 1994, No. 94-642, p. 1203, §1.)*
##### **§ 11-58-13** Authority and Procedure for Dissolution of Corporations; Vesting of Title to Funds and Properties Thereof in Municipalities or Counties Upon Dissolution; Effect of Dissolution of Corporation Upon Other Such Corporations {#sec-11-58-13 omnilex-key=us-al-statutes--title-11--11-58-13}
(a) Whenever the principal of and interest on all bonds of a corporation payable from the revenues derived from the operation of one or more medical clinics owned by the corporation have been paid in full, its board of directors of the corporation may, by resolution, determine that the purposes for which the corporation was formed have been substantially complied with, and shall thereupon execute and file for record in the office of the judge of probate of the county in which the corporation is organized a certificate of dissolution, reciting those facts and declaring the corporation to be dissolved. The certificate of dissolution shall be executed under the corporate seal of the corporation.
(b) Upon the filing of the certificate of dissolution, the corporation shall stand dissolved, title to all funds and properties owned by it at the time of dissolution shall vest in the county or municipality, and possession of the funds and properties shall be immediately delivered to the county or municipality.
(c) The dissolution of one or more corporations under this chapter shall not cause the dissolution of other existing corporations, nor preclude the subsequent formation under this chapter of other corporations.
*(Acts 1955, No. 516, p. 1160, §5; Acts 1965, 1st Ex. Sess., No. 109, p. 153, §4; Acts 1994, No. 94-642, §1.)*
##### **§ 11-58-14** Exemptions of Corporations - Taxation {#sec-11-58-14 omnilex-key=us-al-statutes--title-11--11-58-14}
The bonds authorized by this chapter and the income therefrom, all mortgages executed as security therefor, all lease agreements made pursuant to the provisions hereof and all property and the revenue derived from any lease thereof shall be exempt from all taxation in the State of Alabama.
All deeds, mortgages, trust agreements, articles of incorporation and other documents executed by or delivered to any corporation incorporated under the provisions of this chapter shall be exempt from all state, county, municipal and other taxation in the State of Alabama.
*(Acts 1955, No. 516, p. 1160, §11.)*
##### **§ 11-58-15** Exemptions of Corporations - Usury and Interest Laws {#sec-11-58-15 omnilex-key=us-al-statutes--title-11--11-58-15}
Each medical clinic board now or hereafter organized under the provisions of this chapter, as amended, is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1969, No. 1151, p. 2157.)*
### **Chapter 59** Public Athletic Boards
##### **§ 11-59-1** Definitions {#sec-11-59-1 omnilex-key=us-al-statutes--title-11--11-59-1}
Wherever used in this chapter, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings:
(1) CORPORATION. Any corporation organized pursuant to the provisions of this chapter.
(2) MUNICIPALITY. Any incorporated city or town in this state with respect to which a corporation may be organized and in which it is contemplated the corporation will function.
(3) FACILITY. Such term includes all of the following revenue-producing undertakings and any combination or combinations of two or more thereof, whether now existing or hereafter acquired or constructed: Stadium, football field, baseball field, athletic field, golf course, tennis court, bathhouse, swimming pool, speedways, racetracks, and facilities for testing and proving automobiles and other vehicles, together with all real and personal properties which may be deemed necessary or convenient in connection therewith.
(4) GOVERNING BODY. The board or body in which the general legislative powers of the municipality are vested.
*(Acts 1947, No. 231, p. 94, §1; Acts 1966, Ex. Sess., No. 246, p. 367.)*
##### **§ 11-59-2** Legislative Intent; Construction of Chapter Generally {#sec-11-59-2 omnilex-key=us-al-statutes--title-11--11-59-2}
(a) It is the intention of the Legislature by the passage of this chapter to authorize the incorporation in the several cities and towns in this state of public corporations for the purpose of owning and operating and contracting with others for the operation of such facilities as may be specified in the certificate of incorporation of the corporation or any amendment thereto and to vest such corporations with all powers that may be necessary to enable them to accomplish any such purpose, including the power to issue their revenue bonds and to mortgage such properties and pledge the revenues derived therefrom as security therefor.
(b) This chapter shall be liberally construed in conformity with the said intention.
*(Acts 1947, No. 231, p. 94, §2.)*
##### **§ 11-59-3** Application for Authority to Incorporate Public Athletic Board; Adoption of Resolution by Governing Body Authorizing Incorporation; Execution, Acknowledgment and Filing of Certificate of Incorporation Generally {#sec-11-59-3 omnilex-key=us-al-statutes--title-11--11-59-3}
Whenever any number of natural persons, not less than three, each of whom shall be a duly qualified elector of and taxpayer in the municipality shall file with the governing body thereof an application in writing seeking permission to apply for the incorporation of a public athletic board of such municipality, the governing body shall proceed to consider such application. If the governing body shall by appropriate resolution duly adopted find and determine that it is wise, expedient, necessary. or advisable that the corporation be formed and shall authorize the persons making such application to proceed to form such corporation, then the persons making such application shall execute, acknowledge. and file a certificate of incorporation for the corporation as provided in this chapter.
No corporation may be formed unless such application shall have first been filed with the governing body of the municipality and the governing body shall have adopted a resolution as provided in this section.
*(Acts 1947, No. 231, p. 94, §3.)*
##### **§ 11-59-4** Certificate of Incorporation - Contents; Execution and Acknowledgment {#sec-11-59-4 omnilex-key=us-al-statutes--title-11--11-59-4}
(a) The certificate of incorporation shall set forth:
(1) The names and residences of the applicants together with a recital that each of them is an elector of and taxpayer in the municipality;
(2) The name of the corporation which shall be the Public Athletic Board of the _____ of _____ (the blank spaces to be filled in with the name of the municipality, including the proper designation thereof as a city or town);
(3) A recital that permission to organize the corporation had been granted by resolution duly adopted by the governing body of the municipality and the date of the adoption of such resolution;
(4) The location of the principal office of the corporation (which shall be in the municipality);
(5) The purposes for which the corporation is proposed to be organized;
(6) The number of directors of the corporation;
(7) The period, if any, for the duration of the corporation; and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this chapter or with the laws of the State of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Alabama to take acknowledgments to deeds.
*(Acts 1947, No. 231, p. 94, §4.)*
##### **§ 11-59-5** Certificate of Incorporation - Filing with Probate Judge; Examination, Approval, and Recordation by Probate Judge {#sec-11-59-5 omnilex-key=us-al-statutes--title-11--11-59-5}
When executed and acknowledged in conformity with Section 11-59-4, the certificate of incorporation shall be filed with the judge of probate of any county in which may be located any portion of the territory embraced within the corporate limits of the municipality. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-59-4 have been complied with and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office.
When such certificate has been so made, filed, and approved, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
*(Acts 1947, No. 231, p. 94, §5.)*
##### **§ 11-59-6** Certificate of Incorporation - Amendment {#sec-11-59-6 omnilex-key=us-al-statutes--title-11--11-59-6}
The certificate of incorporation may at any time and from time to time be amended so as to make any changes therein and add any provisions therein which may be located any portion of the territory embraced within the first instance.
Any such amendment shall be effected in the following manner: The members of the board of directors of the corporation shall file with the governing body of the municipality an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary, or advisable that the proposed amendment be made and shall authorize the same to be made, then the persons making such application shall execute an instrument embodying the amendment specified in such application and shall file the same with the judge of probate of the county in which the certificate of incorporation was originally filed. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. When such amendment has been so made, filed and approved, it shall thereupon become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.
*(Acts 1947, No. 231, p. 94, §6.)*
##### **§ 11-59-7** Board of Directors {#sec-11-59-7 omnilex-key=us-al-statutes--title-11--11-59-7}
The corporation shall have a board of directors in which all powers of the corporation shall be vested and which shall consist of any number of directors, not less than three, all of whom shall be duly qualified electors of and taxpayers in the municipality. The directors shall serve as such without compensation, except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties under this chapter; and, in the discretion of the board of directors, the members thereof may be paid a director’s fee not exceeding $5.00 for each directors’ meeting attended by them not exceeding one meeting during each calendar month. No director shall be an officer or employee of the municipality. The directors shall be elected by the governing body of the municipality, and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the municipality shall divide the directors into three groups containing as near equal whole numbers as may be possible. The first term of the directors included in the first group shall be two years, the first term of the directors included in the second group shall be four years, the first term of the directors included in the third group shall be six years; and, thereafter, the terms of all directors shall be six years; provided that, if at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected; provided further, that in the event of a vacancy occurring on the board of directors by reason of death, resignation, or otherwise, the governing body of the municipality shall fill such vacancy for the unexpired term.
*(Acts 1947, No. 231, p. 94, §7.)*
##### **§ 11-59-8** Powers of Corporations Generally {#sec-11-59-8 omnilex-key=us-al-statutes--title-11--11-59-8}
The corporation shall have the following powers together with all powers incidental thereto or necessary for the performance of those hereinafter stated:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as provided in this chapter;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To have and to use a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by condemnation, purchase, exchange, gift, lease, devise or otherwise, and to construct, enlarge, improve, maintain, equip, and furnish one or more facilities, including all real and personal properties which the board of directors of the corporation may deem necessary or convenient in connection therewith and regardless of whether or not any such facilities shall then be in existence and whether or not the same shall then be publicly or privately owned and whether or not the same shall then be used by the municipality;
(5) To operate and to lease to others any or all of its facilities;
(6) To fix and collect admission fees to and rents and charges for the use of its facilities or of any part thereof and to make and enforce regulations for the termination of any admission privileges or licenses granted by it and the discontinuance of any leases or services upon the failure to pay any fees, charges or rents provided therefor;
(7) To issue its revenue bonds for the purpose of carrying out any of its powers;
(8) To mortgage and pledge its facilities or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the rents and revenues therefrom or from any thereof as security for the payment of the principal of and interest on any bonds so issued and any obligations incurred in connection therewith;
(9) To exchange, sell, and convey any of its facilities which shall have become worn out or obsolete or which shall not be needed for the furtherance of its corporate purposes;
(10) To exercise all powers of eminent domain now or hereafter conferred on municipalities in this state;
(11) To appoint and employ such officers, employees, and agents, including attorneys, as the board of directors shall deem necessary for the business of the corporation; and
(12) To purchase machinery and equipment on the installment plan, to borrow money for such purpose and to issue negotiable notes or other evidence of debt in evidence thereof and as security therefor, to pledge and mortgage the machinery so purchased.
*(Acts 1947, No. 231, p. 94, §8; Acts 1967, Ex. Sess., No. 115, p. 157; Acts 1971, No. 675, p. 1402.)*
##### **§ 11-59-9** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Refunding of Bonds {#sec-11-59-9 omnilex-key=us-al-statutes--title-11--11-59-9}
All bonds issued by the corporation shall be revenue bonds and shall be payable solely out of the revenues derived from the leasing or operation by the corporation of its facilities or of any thereof as may be designated in the proceedings of the board of directors under which they shall be authorized to be issued.
Such bonds may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times, not exceeding 40 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the corporation and in such manner and may contain such provisions not inconsistent with this chapter as shall be provided in the proceedings of the board of directors whereunder such bonds shall be authorized to be issued. If such action shall be deemed advisable by the board of directors, there may be retained in the proceedings under which any of such bonds are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of such bonds, but nothing contained in this section shall be construed to confer on the corporation any right or option to redeem any such bonds except as may be provided in the proceedings under which they shall be issued.
Any bonds of the corporation may be sold at public or private sale in such manner and from time to time as may be determined by the board of directors of the corporation to be most advantageous, and the corporation may pay all expenses, premiums and commissions which its board of directors may deem necessary and advantageous in connection with the issuance thereof.
Issuance by the corporation of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds for the same purpose or any other purpose for which the corporation is formed as specified in its certificate of incorporation or any amendment thereof.
Any bonds of the corporation at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding revenue bonds of a like aggregate principal amount of the bonds so to be refunded, whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of such refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by the exchange of such refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded and regardless of whether or not the bonds to be refunded were issued in connection with the same facility or separate facilities and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
All such bonds and the interest coupons applicable thereto shall be construed to be negotiable instruments.
*(Acts 1947, No. 231, p. 94, §9.)*
##### **§ 11-59-10** Bonds - Security for Payment of Principal and Interest; Remedies Upon Default {#sec-11-59-10 omnilex-key=us-al-statutes--title-11--11-59-10}
The principal of and interest on any bonds issued by the corporation shall be secured by a pledge of the revenues out of which the same shall be made payable and may be secured by a mortgage or deed of trust covering all or any part of the facilities from which the revenues so pledged may be derived, including all supplies, equipment and easement in connection with such facilities and any enlargements of and additions to any thereof thereafter made. Any such mortgage or deed of trust and the resolution under which the bonds are authorized to be issued may contain any agreements and provisions respecting the management, operation and maintenance of the facilities covered thereby, the fixing and collection of rents, fees and charges for any portions thereof leased by the corporation or used by the public or any services rendered respecting the same, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default as the board of directors shall deem advisable; except, that no such properties may be sold in foreclosure of such mortgage and deed of trust. Whenever the corporation shall have any of its bonds outstanding, it shall charge, collect and account for sufficient revenues from the operation and lease of its facilities as may be necessary to pay all expenses of operating and maintaining its facilities and as may further be necessary to pay the principal of and interest on its bonds as such principal and interest shall mature and to maintain any special funds which may be provided for in the proceedings pursuant to which such bonds shall have been issued. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds of the corporation shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
No such mortgage or deed of trust shall be subject to foreclosure and, in the event of default in the payment of the principal of or interest on the bonds secured thereby or in any of the agreements on the part of the corporation contained therein, the remedies available shall be limited either to mandamus to compel performance of the obligations and agreements of the corporation with respect to which the corporation may be in default or to the appointment, as a matter of right, by any court having jurisdiction over the corporation of a receiver with all the powers of such a receiver, including the power under the jurisdiction of such court to operate and lease or license for use by others all or any of its facilities of the corporation and to charge and collect charges, fees and rents for admission to and use of the facilities of the corporation and for the services rendered by it and to apply the revenues so collected toward the expenses of such receivership and the payment of the principal of and interest on the bonds of the corporation. There is hereby granted to any receiver so appointed power to charge and collect such charges, fees and rents for such purposes under the jurisdiction of the court appointing such receiver.
*(Acts 1947, No. 231, p. 94, §10.)*
##### **§ 11-59-11** Liability of Municipalities Upon Bonds, Obligations, Agreements, Etc., of Corporations {#sec-11-59-11 omnilex-key=us-al-statutes--title-11--11-59-11}
The municipality shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1947, No. 231, p. 94, §12.)*
##### **§ 11-59-12** Conveyances of Properties to Corporations by Municipalities {#sec-11-59-12 omnilex-key=us-al-statutes--title-11--11-59-12}
The municipality is hereby authorized and empowered to transfer and convey to the corporation any properties which, at the time of such transfer and conveyance, may have been acquired by such municipality as a site for or which may then be used as a facility, together with such improvements thereon and equipment and furnishings owned by the municipality in connection therewith as the governing body of the municipality may deem advisable.
Such transfer and conveyance may be authorized by an ordinance duly adopted by the governing body of the municipality, and it shall not be necessary that the same be authorized at an election of the qualified voters of the municipality. Such transfer and conveyance may be made as a gift to the corporation and without consideration therefor or on such consideration as may be expressed in such ordinance, as the governing body of the municipality may deem advisable; provided, that if at the time of such transfer and conveyance the municipality has outstanding any bonds or other obligations which were issued or incurred by it with respect to the properties so transferred or conveyed, the corporation shall either pay to the municipality at the time of such transfer and conveyance an amount sufficient to discharge such bonds and other obligations of the municipality or shall assume and thereafter pay the principal of and interest on such bonds or other obligations of the municipality.
The corporation and the municipality are hereby authorized to enter into such agreements with each other as the governing body of the municipality and the board of directors of the corporation may deem advisable to effectuate such transfer and conveyance and to provide for the subsequent control, management, operation, leasing, equipment, enlargement, and improvement of the properties so transferred.
*(Acts 1947, No. 231, p. 94, §13.)*
##### **§ 11-59-13** Powers of Corporations as to Conveyances, Etc., of Title to Facilities {#sec-11-59-13 omnilex-key=us-al-statutes--title-11--11-59-13}
Nothing contained in this chapter shall be construed to authorize the corporation to lease, sell, or transfer any of its facilities so as to vest title thereto or the use thereof in private ownership or control; provided, that any of its facilities may be made subject to a mortgage or deed of trust as security for its bonds issued pursuant to the provisions of this chapter; provided further, that any portions of such facilities which may become worn out or obsolete or shall not be needed for use in the operations of the corporation may be sold or otherwise disposed of as the board of directors of the corporation may deem advisable.
*(Acts 1947, No. 231, p. 94, §17.)*
##### **§ 11-59-14** Authority and Procedure for Dissolution of Corporations; Vesting of Title to Facilities Thereof in Municipalities Upon Dissolution {#sec-11-59-14 omnilex-key=us-al-statutes--title-11--11-59-14}
When the principal of and interest on all bonds issued by the corporation shall have been paid, the title to all facilities then owned by the corporation shall thereupon vest in the municipality with respect to which the corporation shall have been organized, and all rights and powers of the corporation with respect to said facilities shall thereupon terminate and the corporation shall thereupon stand dissolved.
The then members of the board of directors of the corporation shall thereupon execute and file for record in the office of the judge of probate of the county in which the certificate of incorporation of the corporation was filed an appropriate certificate reciting the payment of the principal of and interest on the bonds of the corporation, which certificate shall also describe the facilities owned by the corporation at the time of its dissolution, but the failure of the members of said board of directors to make such certificate or to file the same for record as aforesaid shall not affect the automatic dissolution of the corporation and the vesting of title to its facilities in the municipality as provided in this section.
At any time prior to the issuance of bonds or other obligations as evidence of debt, the board of directors of the corporation may, with the approval of the governing body of the municipality, file for record in the office of the judge of probate of the county in which the certificate of incorporation of the corporation was filed a certificate of dissolution, and the corporation shall thereupon stand dissolved.
*(Acts 1947, No. 231, p. 94, §14.)*
##### **§ 11-59-15** Documents of Corporations May Be Filed for Record Without Payment of Taxes or Certain Fees {#sec-11-59-15 omnilex-key=us-al-statutes--title-11--11-59-15}
The certificate of incorporation of the corporation, any deeds or other documents whereby properties are conveyed to the corporation, any mortgages or deeds of trust executed by the corporation and the certificate of dissolution of the corporation may all be filed for record in the office of the judge of probate of the county in which the corporation is organized without the payment of any tax or fees other than such fees as may be authorized by law for the recording of such instruments.
*(Acts 1947, No. 231, p. 94, §15.)*
##### **§ 11-59-16** Exemption from Taxation of Corporations, Facilities, Bonds, Etc {#sec-11-59-16 omnilex-key=us-al-statutes--title-11--11-59-16}
The corporation and all facilities at any time owned by it and the income therefrom and all bonds issued by it and the income therefrom shall be exempt from all taxation in the State of Alabama.
*(Acts 1947, No. 231, p. 94, §11.)*
##### **§ 11-59-17** Construction of Chapter {#sec-11-59-17 omnilex-key=us-al-statutes--title-11--11-59-17}
Neither this chapter nor anything contained in this chapter shall be construed as a restriction or limitation upon any powers which the corporation or the municipality might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.
No proceedings, notice, or approval shall be required for the organization of the corporation or the issuance of any bonds or any instrument as security therefor, except as is provided in this chapter, any other law to the contrary notwithstanding; provided, that nothing in this chapter shall be construed to deprive the state and its governmental subdivisions of their respective police powers over any properties of the corporation or to impair any power thereover of any official or agency of the state which may be otherwise provided by law.
*(Acts 1947, No. 231, p. 94, §16.)*
### **Chapter 60** Public Park and Recreation Boards
##### **§ 11-60-1** Definitions {#sec-11-60-1 omnilex-key=us-al-statutes--title-11--11-60-1}
Whenever used in this chapter, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective meanings:
(1) CORPORATION. Any corporation organized pursuant to the provisions of this chapter.
(2) MUNICIPALITY. Any incorporated city or town in this state with respect to which a corporation may be organized.
(3) PROJECT. Any land and interest therein, including forests, rivers, streams, waterways, and lakes, and any buildings or other improvements thereon, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for a public park or other recreational uses and all buildings, facilities, and improvements incident thereto or useful in connection therewith, including, but without limitation, picnic areas, campsites, trailer sites, cabins, lodges, roads and trails for hiking, bicycling or horseback riding, nature trails, botanical gardens, zoos, museums, athletic fields, golf courses, tennis, handball and badminton courts, public restroom facilities, boats, rides, amusement facilities, bowling alleys, skeet, trap, rifle and archery ranges, gymnasiums, swimming pools, bathhouses, beaches, docks and marinas, boating facilities, areas and facilities for fishing and hunting, areas and facilities for aquatic entertainment and sports, stadiums, coliseums, arenas, grandstands, auditoriums, meeting halls, pavilions, centers for cultural entertainment, music, drama, exhibitions and exhibits, amphitheatres, administrative or office buildings, and public accommodation facilities as defined in subsection (4) of this section.
(4) PUBLIC ACCOMMODATION FACILITIES. Buildings, facilities and improvements for the accommodation of visitors to such public parks, including, without limitation of the foregoing, motels, restaurants, coffee shops, stores to provide groceries, drugs, and other items, sports, gift and souvenir shops and launderettes; provided, however, that nothing contained in this chapter is intended to authorize any such corporation itself to operate as a commercial enterprise any such shops, stores, motels, or restaurants.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §2; Acts 1973, No. 1296, p. 2210, §1; Acts 1983, No. 83-584, p. 916.)*
##### **§ 11-60-2** Legislative Intent; Construction of Chapter Generally {#sec-11-60-2 omnilex-key=us-al-statutes--title-11--11-60-2}
(a) It is the intention of the Legislature by the passage of this chapter to promote the public health and general welfare by authorizing the incorporation in the several municipalities in this state of public corporations to acquire, enlarge, improve, expand, own, operate, lease, and dispose of properties to the end that such corporation may be able to promote public interest and participation in sports, athletics, and recreational activities and to provide or improve public parks in this state, including all buildings, facilities, and improvements incident thereto or useful in connection therewith. It is the further intent of the Legislature by the passage of this chapter to vest such public corporations with all powers that may be necessary to enable them to accomplish such purposes.
(b) This chapter shall be liberally construed in conformity with the said intention.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §1.)*
##### **§ 11-60-3** Application for Authority to Form Corporation; Adoption of Resolution by Governing Body Authorizing Incorporation; Execution, Acknowledgment, and Filing of Certificate of Incorporation Generally; Effect of Granting of Authority for Incorporation Upon Incorporation of Other Such Corporations {#sec-11-60-3 omnilex-key=us-al-statutes--title-11--11-60-3}
(a) Whenever any number of natural persons, not less than three, shall file with the governing body of any municipality of this state an application in writing for authority to incorporate a public corporation under the provisions of this chapter and shall set forth in said application a brief description of the project to be acquired or improved by such corporation and if it shall be made to appear to such governing body that each of said persons is a duly qualified elector of and owner of property in said municipality and if the governing body of said municipality shall adopt a resolution which shall be duly entered upon the minutes of such governing body wherein it shall be found and determined that there is a public need for the proposed project and that it is wise, expedient, necessary, or advisable that such a corporation be formed and that the persons filing said application shall be authorized to proceed to form such corporation, then said persons shall proceed to organize such corporation by executing, acknowledging, and filing a certificate of incorporation as provided in this chapter.
No corporation shall be formed under this chapter unless the application provided for in this subsection shall be made and unless the resolution provided for in this subsection shall be adopted; provided, that the inadequacy of the description of the proposed project in the application for incorporation shall not affect the validity of the incorporation of such corporation.
(b) The granting of authority for the incorporation of one public corporation under this chapter shall not preclude the granting of authority by the governing body of the same municipality for the incorporation of other public corporations under this chapter; provided, that such other public corporations shall be required to adopt a name or designation sufficient to distinguish them from any public corporation theretofore incorporated by such municipality under this chapter.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §3.)*
##### **§ 11-60-4** Certificate of Incorporation - Contents; Execution and Acknowledgment {#sec-11-60-4 omnilex-key=us-al-statutes--title-11--11-60-4}
(a) The certificate of incorporation of any corporation organized under this chapter shall set forth:
(1) The names and residences of the applicants, together with a recital that each of them is an elector of and taxpayer in the municipality;
(2) The name of the corporation which shall be the Public Park and Recreation Board of the _____ of _____ (the blank spaces to be filled in with the name of the municipality, including the proper designation thereof as a city or town), if such name shall be available for use by the corporation and, if not available, then the incorporators shall designate some other similar name that is available;
(3) A recital that permission to organize the corporation has been granted by a resolution duly adopted by the governing body of the municipality and the date of the adoption of such resolution;
(4) The location of the principal office of the corporation (which shall be in the municipality);
(5) The purposes for which the corporation is proposed to be organized, which purposes shall be those set forth in the application for authority to incorporate;
(6) The number of directors of the corporation;
(7) The period for the duration of the corporation (if the duration is perpetual, the fact should be stated); and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this chapter or with the laws of the State of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Alabama to take acknowledgments to deeds.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §4.)*
##### **§ 11-60-5** Certificate of Incorporation - Filing with Probate Judge; Examination, Approval, and Recordation by Probate Judge {#sec-11-60-5 omnilex-key=us-al-statutes--title-11--11-60-5}
When executed and acknowledged in conformity with Section 11-60-4, the certificate of incorporation shall be filed with the judge of probate of any county in which may be located any portion of the territory embraced within limits of the municipality. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-60-4 have been complied with and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office.
When such certificate has been so made, filed and approved, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §5.)*
##### **§ 11-60-6** Certificate of Incorporation - Amendment {#sec-11-60-6 omnilex-key=us-al-statutes--title-11--11-60-6}
If any corporation formed under this chapter has accidentally or inadvertently failed to comply with the requirements of this chapter in its organization, such omission or defect may be corrected by filing an amendment as provided in this section. The certificate of incorporation of any corporation formed under this chapter may also at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance.
Any amendment shall be effected in the following manner: The members of the board of directors of the corporation shall file with the governing body of the municipality an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary, and advisable that the proposed amendment be made and, if an additional project or projects are proposed that there is a public need therefor and shall approve the form of the proposed amendment and shall authorize the amendment to be made, then the persons making such application shall execute an instrument embodying the amendment specified in such application and shall file the same with the judge of probate of the county in which the certificate of incorporation was originally filed. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. When such amendment has been so made, filed, and approved, it shall thereupon become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §6.)*
##### **§ 11-60-7** Board of Directors {#sec-11-60-7 omnilex-key=us-al-statutes--title-11--11-60-7}
The corporation shall have a board of directors in which all powers of the corporation shall be vested and which shall consist of any number of directors, not less than three, all of whom shall be duly qualified electors of and taxpayers in the municipality. The directors shall serve as such without compensation, except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties under this chapter. No director shall be an officer or employee of the municipality. The directors shall be elected by the governing body of the municipality, and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the municipality shall divide the directors into three groups containing as near equal whole numbers as may be possible. The first term of the directors included in the first group shall be two years; the first term of the directors included in the second group shall be four years; the first term of the directors included in the third group shall be six years and, thereafter the terms of all directors shall be six years; provided that, if at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected. Any meeting held by the board of directors for any purpose whatsoever shall be open to the public.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §7.)*
##### **§ 11-60-8** Powers of Corporations Generally; Location of Projects of Corporations {#sec-11-60-8 omnilex-key=us-al-statutes--title-11--11-60-8}
(a) The corporation shall have the following powers together with all powers incidental thereto or necessary for the performance of those hereinafter stated:
(1) To have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as provided in this chapter;
(2) To sue and be sued and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties;
(3) To have and to use a corporate seal and to alter the same at pleasure;
(4) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise to improve, maintain, equip, furnish, own, and operate one or more projects, including all real and personal properties which the board of directors of the corporation may deem necessary in connection therewith, regardless of whether or not any such projects or any part thereof shall then be in existence;
(5) To fix, prescribe, and collect rates, fees, tolls, charges, or rentals for the use of any of its facilities and for services, facilities, and accommodations furnished by it or any of its facilities;
(6) To adopt and enforce rules and regulations relative to the use or occupancy of any of its facilities or services;
(7) To promote, sponsor, and operate tournaments, shows, exhibitions, exhibits, athletic events, and educational, cultural, recreational, amusement and other activities;
(8) To sell, exchange and convey, to contract to sell, exchange, and convey and to grant options to acquire any or all of its properties whenever its board of directors shall find any such action to be in furtherance of the purposes for which the corporation was organized;
(9) To lease to others for a period not to exceed 40 years any or all of its projects or any part thereof, including public accommodation facilities, and to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof;
(10) To grant privileges, licenses, concessions, or permits for the operation of any of its public accommodation facilities;
(11) To lease land to others for a period not to exceed 40 years or to grant to others privileges, licenses, or permits for the use of land for the construction and operation of public accommodation facilities and to authorize such lessee or grantee to mortgage their interest, rights and properties to finance the construction, enlargement, and improvement of such public accommodation facilities;
(12) To issue its bonds for the purpose of carrying out any of its powers;
(13) To mortgage and pledge any or all of its projects or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof as security for the payment of the principal and interest on any bonds so issued and any agreements made in connection therewith;
(14) To assume obligations secured by a lien on or payable out of or secured by a pledge of the revenues and receipts from any or all of its projects or any part thereof that may be acquired, any obligation so assumed to be payable solely out of the revenues and receipts from any or all of its projects or part thereof;
(15) To appoint, employ, contract with, and provide for the compensation of such officers, employees, and agents, including, but without limitation to, engineers, attorneys, architects, construction contractors, management consultants, and fiscal advisors as its business may require;
(16) To provide for such insurance as the board of directors may deem advisable;
(17) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any person or any combination of any of the foregoing;
(18) To enter into a management agreement or agreements with any person for the management of any or all of its projects or part thereof; and
(19) To accept gifts, grants, bequests, and devises.
(b) Any project or projects of the corporation may be located within or without or partially within and partially without the municipality, subject to the following conditions:
(1) No such project or part thereof shall be located more than 30 miles from the corporate limits of the municipality;
(2) No such project or part thereof shall be located within the corporate limits of another city or town in this state;
(3) No such project or part thereof shall be located within the police jurisdiction of another city or town in this state unless the governing body of such other city or town has first adopted a resolution consenting to the location of such project or part thereof in the police jurisdiction of such city or town; and
(4) No such project or part thereof shall be located in a county other than that (or those) in which the municipality (or part thereof) is situated unless the county commission of such other county has first adopted a resolution consenting to the location of such project or part thereof in such county.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §8.)*
##### **§ 11-60-9** Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Refunding of Bonds {#sec-11-60-9 omnilex-key=us-al-statutes--title-11--11-60-9}
All bonds issued by the corporation shall be payable solely out of the revenues and receipts derived from the operation, leasing or sale by the corporation of its projects or of any thereof as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued.
Such bonds may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable at such time or times, not exceeding 40 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the corporation and in such manner and may contain such provisions not inconsistent with this chapter as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued. If deemed advisable by the board of directors, there may be retained in the proceedings under which any bonds of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited on the face of the bonds, but nothing contained in this section shall be construed to confer on the corporation any right to redeem any bonds except as may be provided in the proceedings under which they shall be issued.
Any bonds of the corporation may be sold at public or private sale in such manner and from time to time as may be determined by the board of directors of the corporation to be most advantageous, and the corporation may pay all expenses, premiums and commissions which its board of directors may deem necessary or advantageous in connection with the issuance thereof.
Issuance by the corporation of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, but the proceedings whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
Any bonds of the corporation at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding bonds in such amount as the board of directors may deem necessary, but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums, commissions and expenses necessary to be paid in connection with such refunding. Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded and regardless of whether or not the bonds to be refunded were issued in connection with the same projects or separate projects and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
All such bonds and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §9.)*
##### **§ 11-60-10** Bonds - Notice of Resolution Authorizing Issuance of Bonds; Limitation Period for Actions, Etc., as to Validity of Proceedings for Issuance of Bonds, Etc {#sec-11-60-10 omnilex-key=us-al-statutes--title-11--11-60-10}
(a) Upon the adoption by the board of directors of any resolution providing for the issuance of bonds, the corporation may, in its discretion, cause to be published once a week for two consecutive weeks in a newspaper published in the municipality or, if there is no newspaper published in the municipality, then in a newspaper published in the county in which the municipality is located a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of the corporation: “_____, a public corporation of the State of Alabama, on the _____ day of _____, authorized the issuance of $_____ principal amount of revenue bonds of the said corporation for purposes authorized in the act of the Legislature of Alabama under which the said corporation was organized. Any civil action or proceeding questioning the validity of the said bonds, or the pledge and mortgage, or deed of trust to secure the same, or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.”
(b) Any civil action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of any such bonds or the validity of the pledge and mortgage or deed of trust made therefor must be commenced within 20 days after the first publication of such notice. After the expiration of the said period, no right of action or defense questioning or attacking the validity of the said proceedings or of the said bonds or the said pledge or mortgage or deed of trust shall be asserted, nor shall the validity of the said proceedings or of the said bonds or the said pledge or mortgage or deed of trust be open to question in any court on any ground whatsoever except in a civil action or proceeding commenced within such period.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §11.)*
##### **§ 11-60-11** Bonds - Security for Payment of Principal or Interest; Remedies Upon Default {#sec-11-60-11 omnilex-key=us-al-statutes--title-11--11-60-11}
The principal of and interest on any bonds issued by the corporation shall be secured by a pledge of the revenues and receipts out of which the same shall be made payable and may be secured by mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made.
The resolution under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of fees, rates, tolls and charges for the services, facilities and accommodations furnished by the corporation and of the rents for any portions thereof leased by the corporation to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default as the board of directors shall deem advisable not in conflict with the provisions of this chapter. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds of the corporation shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
In the event of default in such payment or in any agreements of the corporation made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust executed as security therefor, such payment or agreement may be enforced by mandamus, the appointment of a receiver or by foreclosure of any such mortgage and deed of trust or any one or more of said remedies.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §10.)*
##### **§ 11-60-12** Borrowing of Money for Temporary Use and Issuance of Temporary Revenue Bonds as Evidence Thereof {#sec-11-60-12 omnilex-key=us-al-statutes--title-11--11-60-12}
(a) The corporation may, in addition to the other powers granted in this chapter, borrow money for temporary use for any of its corporate purposes and in evidence of such borrowing issue from time to time revenue bonds or notes maturing not later than 18 months from the date of issuance.
(b) Any such temporary borrowing may be made in anticipation of the sale and issuance of long-term bonds, and in such event the principal proceeds from the sale of such long-term bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary bonds or notes issued in anticipation of the sale and issuance of such long-term bonds.
(c) Any such temporary borrowing may also be made with respect to a project simultaneously with or after the sale and issuance of long-term bonds issued with respect to such project if, under the terms of the proceedings under which such long-term bonds are issued, the proceeds therefrom or any part thereof may not be used or released until completion of the project with respect to which issued or other similar contingency. In such case, the principal proceeds from the long-term bonds shall, when released and to the extent necessary, be applied for payment of the principal of and the interest on such temporary bonds or notes.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §12.)*
##### **§ 11-60-13** Liability of Municipalities Upon Bonds, Agreements, Obligations, Etc., of Corporations {#sec-11-60-13 omnilex-key=us-al-statutes--title-11--11-60-13}
The municipality shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §14.)*
##### **§ 11-60-14** Disposition of Net Earnings of Corporations {#sec-11-60-14 omnilex-key=us-al-statutes--title-11--11-60-14}
The corporation shall be a nonprofit corporation, and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation; except, that in the event the board of directors of the corporation shall determine that sufficient provision has been made for the full payment of expenses, bonds, and other obligations of the corporation, then any net earnings of the corporation thereafter accruing shall, at the option of the board of directors, be used to pay the cost of extensions and improvements to any of its projects or paid to the municipality with respect to which the corporation was organized.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §15.)*
##### **§ 11-60-15** Authority and Procedure for Dissolution of Corporations; Vesting of Title to Funds and Properties Thereof in Municipalities Upon Dissolution {#sec-11-60-15 omnilex-key=us-al-statutes--title-11--11-60-15}
Whenever the board of directors of the corporation shall by resolution determine that the purposes for which the corporation was formed have been substantially complied with and all bonds theretofore issued and all obligations theretofore incurred by the corporation have been fully paid, the then members of the board of directors of the corporation shall thereupon execute and file for record in the office of the judge of probate of the county in which the corporation is organized a certificate of dissolution reciting such facts and declaring the corporation to be dissolved. Such certificate of dissolution shall be executed under the corporate seal of the corporation.
Upon the filing of such certificate of dissolution, the corporation shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in the municipality, and possession of such funds and properties shall forthwith be delivered to such municipality.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §16.)*
##### **§ 11-60-16** Documents of Corporations May Be Filed for Record Without Payment of Taxes or Certain Fees {#sec-11-60-16 omnilex-key=us-al-statutes--title-11--11-60-16}
The certificate of incorporation of the corporation or any amendment thereof, any deeds or other documents whereby properties are conveyed over to the corporation, any mortgages or deeds of trust or leases executed by the corporation and the certificate of dissolution of the corporation may all be filed for record in the office of the judge of probate of the county in which the corporation is organized without the payment of any tax or fees other than such fees as may be authorized by law for recording of such instruments.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §17.)*
##### **§ 11-60-17** Exemptions of Corporations - Taxation {#sec-11-60-17 omnilex-key=us-al-statutes--title-11--11-60-17}
The corporation, the property and income of the corporation, all bonds issued by the corporation, the income from such bonds, conveyances by or to the corporation and leases, mortgages and deeds of trust by or to the corporation shall be exempt from all taxation in the State of Alabama.
No license or excise tax may be imposed on any corporation in respect of the privilege of engaging in any of the activities authorized by this chapter.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §13.)*
##### **§ 11-60-18** Exemptions of Corporations - Usury and Interest Laws {#sec-11-60-18 omnilex-key=us-al-statutes--title-11--11-60-18}
Each corporation organized pursuant to the provisions of this chapter is hereby exempted from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1973, No. 1296, p. 2210, §2.)*
##### **§ 11-60-19** Exemptions of Corporations - Competitive Bid Laws {#sec-11-60-19 omnilex-key=us-al-statutes--title-11--11-60-19}
Each corporation organized pursuant to the provisions of this chapter is hereby exempted from the laws of the State of Alabama governing or respecting competitive bidding with respect to contracts of such corporation, including, without limitation, the provisions of Sections 41-16-50 through 41-16-63.
*(Acts 1973, No. 1296, p. 2210, §2.)*
##### **§ 11-60-20** Powers Conferred on Corporation Cumulative; Further Proceedings, Etc., as to Incorporation and Issuance of Bonds Not Required; Police Powers of State and Governmental Subdivisions Not Impaired {#sec-11-60-20 omnilex-key=us-al-statutes--title-11--11-60-20}
Neither this chapter nor anything contained in this chapter shall be construed as a restriction or limitation upon any powers which the corporation might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.
No proceedings, notice, or approval shall be required for the organization of the corporation or the issuance of any bonds or any instrument as security therefor, except as is provided in this chapter, any other law to the contrary notwithstanding; provided, that nothing in this chapter shall be construed to deprive the state and its governmental subdivisions of their restrictive police powers over any properties of the corporation or to impair any power thereof of any official or agency of the state and its governmental subdivisions which may be otherwise provided by law.
*(Acts 1967, Ex. Sess., No. 218, p. 264, §18.)*
### **Chapter 61** Parking Facilities
##### **§ 11-61-1** Definitions {#sec-11-61-1 omnilex-key=us-al-statutes--title-11--11-61-1}
Unless the context plainly indicates otherwise, the following words and terms shall have the following meanings herein ascribed to them:
(1) GOVERNING BODY. The body in which the general legislative power of a town or city is vested.
(2) PARKING FACILITY. Any building, structure, land, leasehold estate, interest in land, right-of-way, equipment, or facility used or useful in connection with the construction, enlargement, development, maintenance, or operation of any area or building for off-street parking of motor vehicles.
*(Acts 1978, No. 96, p. 131, §1.)*
##### **§ 11-61-2** Authority of Towns and Cities with Respect to Parking Facilities {#sec-11-61-2 omnilex-key=us-al-statutes--title-11--11-61-2}
Any town or city in this state is hereby authorized:
(1) To plan, establish, develop, acquire, construct, enlarge, improve, maintain, equip, operate, regulate, and protect parking facilities;
(2) To finance the cost of parking facilities in whole or in part by the issuance of bonds, warrants, notes, or other evidences of indebtedness maturing at such time or times as the governing body may determine, not exceeding 30 years from their respective dates;
(3) To pledge to the payment thereof its full faith and credit and any taxes, licenses, or revenues which the town or city may then be authorized to pledge to the payment of bonded or other indebtedness;
(4) To lease or let parking facilities or any one or more of them to such tenant or tenants, for such period and such compensation or rental and on such conditions as the governing body may prescribe;
(5) To fix, establish, collect, and alter parking fees, tolls, rents, and other charges for the use of any parking facility;
(6) To make and enforce rules and regulations governing the use of any parking facility owned or controlled by a town or city; and
(7) To execute such contracts and other instruments and to take such other action as may be necessary or convenient in connection with parking facilities.
*(Acts 1978, No. 96, p. 131, §2.)*
##### **§ 11-61-3** Chapter Cumulative {#sec-11-61-3 omnilex-key=us-al-statutes--title-11--11-61-3}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with the provisions of this chapter.
*(Acts 1978, No. 96, p. 131, §3.)*
### **Chapter 61A** Municipal Parking Authority
##### **§ 11-61A-1** Declarations {#sec-11-61a-1 omnilex-key=us-al-statutes--title-11--11-61A-1}
The history of municipalities and the course of legislatures throughout America, including the Legislature of Alabama, confirm that public welfare requires that Class 2 municipalities be authorized to provide off-street parking facilities through parking authorities.
The Legislature makes each of the following declarations:
(1) The free circulation of traffic on the streets of Class 2 municipalities is necessary to the health, safety, and general welfare of the public.
(2) The greatly increased use of motor vehicles has caused serious traffic congestion on the streets of the Class 2 municipalities.
(3) The parking of motor vehicles has contributed to the congestion.
(4) The congestion prevents the free flow of traffic through the municipalities, impedes effective firefighting and the disposition of police forces, and threatens irreparable loss in the values of urban property, which can no longer be readily reached by vehicular traffic.
(5) Parking facilities in Class 2 municipalities are grossly inadequate.
(6) Private enterprise has been unable to solve the problem, because private parking lots are frequently temporary in nature, located without regard for actual parking requirements, with vacant land being used for parking purposes in a haphazard fashion in order to earn minimal revenue from the land pending construction.
(7) The inadequacy of parking space is harmful to the public convenience, health, safety, and welfare.
(8) The inadequate off-street parking spaces now existing must be supplemented by off-street parking facilities provided by public undertaking.
(9) The enactment of this law is declared to be a public necessity which the public welfare and convenience require.
*(Acts 1994, No. 94-254, p. 470, §1.)*
##### **§ 11-61A-2** Definitions {#sec-11-61a-2 omnilex-key=us-al-statutes--title-11--11-61A-2}
Unless the context plainly indicates otherwise, the following words and terms have the meanings ascribed to them:
(1) AUTHORITY. A public corporation organized under this chapter.
(2) BOARD. The board of directors of an authority organized under this chapter.
(3) BOND. Any bond authorized to be issued under this chapter.
(4) COUPON. Any interest coupon evidencing an installment of interest payable with respect to a bond.
(5) DIRECTOR. A member of a board.
(6) GOVERNING BODY. The body in which the general legislative powers of the municipality are vested.
(7) INDENTURE. A mortgage, an indenture of mortgage, deed of trust, trust agreement, or trust indenture executed by an authority as security for its bonds.
(8) MUNICIPALITY. A Class 2 municipality subject to this chapter.
(9) PARKING FACILITY. Any building, structure, land, right-of-way, equipment, or instrumentality used or useful in either of the following ways:
a. In connection with the construction, enlargement, development, maintenance, or operation of an area or building for off-street or on-street parking of motor vehicles.
b. In connection with the exercise of any power of the authority.
(10) STATE. The State of Alabama.
*(Acts 1994, No. 94-254, p. 470, §2.)*
##### **§ 11-61A-3** Application for Permission to Incorporate {#sec-11-61a-3 omnilex-key=us-al-statutes--title-11--11-61A-3}
A municipal parking authority may be organized as a public corporation in any Class 2 municipality of the state. Three or more natural persons may file with the governing body of the municipality an application in writing for permission to incorporate a public corporation to function as a municipal parking authority. The applicants shall attach to the application a proposed form of certificate of incorporation for the corporation. If the governing body receiving the application adopts a resolution approving the form of the certificate of incorporation and authorizing the formation of a public corporation, the applicants shall become the incorporators. The resolution does not have to be published or posted. The applicants shall incorporate the authority as a public corporation as provided in this chapter.
*(Acts 1994, No. 94-254, p. 470, §3.)*
##### **§ 11-61A-4** Certificate of Incorporation {#sec-11-61a-4 omnilex-key=us-al-statutes--title-11--11-61A-4}
The certificate of incorporation of the authority shall state all of the following:
(1) The name of each person forming the authority, the residence of each person, a statement that each person is a duly qualified elector of the municipality, and a statement that each is the owner of property in the municipality.
(2) The name of the authority (which shall include the words “Parking Authority”).
(3) The duration that the authority will exist. If the duration is to be perpetual, that fact shall be stated.
(4) The name of the municipality authorizing the incorporation of the authority and the date the authorization was granted.
(5) The proposed location of the principal office of the authority, which shall be within the boundaries of the municipality.
(6) Any other matters that are not inconsistent with this chapter or other laws of the state that the authority chooses to insert.
*(Acts 1994, No. 94-254, p. 470, §4.)*
##### **§ 11-61A-5** Attachments to Certificate {#sec-11-61a-5 omnilex-key=us-al-statutes--title-11--11-61A-5}
(a) The certificate of incorporation of the authority shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds.
(b) The certificate shall have each of the following attached:
(1) A certified copy of the resolution required in Section 11-61A-3.
(2) A certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar as to lead to confusion and uncertainty.
(c) The incorporators shall file the certificate of incorporation of the authority, together with the attachments in the office of the judge of probate of the county in which the principal office of the authority is located. The judge of probate shall immediately receive and record the certificate and attachments.
(d) When the certificate of incorporation and attachments have been filed, the authority shall come into existence and shall constitute a public corporation under the name set forth in the certificate. The authority shall be vested with the rights and powers granted in this chapter.
*(Acts 1994, No. 94-254, p. 470, §5.)*
##### **§ 11-61A-6** Changes and Amendments {#sec-11-61a-6 omnilex-key=us-al-statutes--title-11--11-61A-6}
(a) The board, by resolution, may change the name of the authority and may amend the certificate of incorporation if each of the following requirements are satisfied:
(1) The governing body adopts a resolution that is entered upon the minutes of the body approving the change of name or amendment of the certificate.
(2) If the board adopts a resolution changing the name of the authority, the board shall obtain from the Secretary of State a certificate stating that the change of name is not identical to that of any other corporation in the state or so nearly similar as to lead to confusion and uncertainty.
(b) The board shall file in the office of the judge of probate of the county in which the principal office of the authority is located each of the following:
(1) The resolution of the board changing the name of the authority or amending the certificate.
(2) A certified copy of the resolution of the governing body approving the action of the board.
(3) The required certificate prepared by the Secretary of State when the name of the authority is changed.
(c) The changes contained in the resolution of the board shall become effective at the time of filing.
*(Acts 1994, No. 94-254, p. 470, §6.)*
##### **§ 11-61A-7** Board of Directors {#sec-11-61a-7 omnilex-key=us-al-statutes--title-11--11-61A-7}
(a) The authority shall be governed by a board of directors of seven members. The board shall be elected by the governing body of the municipality. Each member of the board shall be a qualified elector of the municipality. No elected official of the state, of a county, or a municipality shall, while holding office, be eligible to serve as a director. The directorships shall be numbered one to seven, inclusive. The initial term for directorships one and two shall be two years. The initial term for directorships three and four shall be three years. The initial term for directorships five, six, and seven shall be four years. The initial terms shall commence April 1, 1994. All subsequent terms of directorships shall be for four years.
(b) If a directorship is vacant, a successor shall be elected by the governing body to serve the remainder of the unexpired term. Directors shall be eligible for reelection.
(c) A majority of the members of the board of directors shall constitute a quorum for the transaction of business. No vacancy in the membership of the board of directors shall impair the right of a quorum to exercise all the powers and duties of the authority.
(d) A meeting of the board may be adjourned from time to time by a majority of the directors present or may be adjourned by a single director if the director is the only director present at the meeting.
(e) The board of directors shall hold regular meetings on the second Tuesday in each month and at other times as may be provided in the bylaws of the authority. A special meeting of the board may be held upon call of the chair of the authority or any four directors. Any matter on which the board of directors is authorized to act may be acted upon at any regular, special, or called meeting.
(f) At the request of any director, the vote on any question before the board shall be taken by yeas and nays and entered upon the record.
(g) All proceedings of the board shall be reduced to writing by the secretary of the authority, recorded in a well-bound book and may be inspected by each director and by the public during business hours. Copies of the proceedings, when certified by the secretary of the authority under its seal, shall be received in all courts as evidence of the matters and things certified.
(h) Each director shall receive fifty dollars ($50) for each regular or special meeting of the board attended. No director shall receive more than one hundred dollars ($100) in any one month for attending meetings. Each director shall be reimbursed for expenses actually incurred in the performance of duties. Compensation and expenses shall be paid from funds of the authority.
(i) The governing body may remove a director from office in the same manner and for the same reasons as provided by law for removal of officers appointed by the city council.
*(Acts 1994, No. 94-254, p. 470, §7.)*
##### **§ 11-61A-8** Officers {#sec-11-61a-8 omnilex-key=us-al-statutes--title-11--11-61A-8}
The board shall elect a chair, a vice-chair, a secretary, a treasurer, and other necessary officers to accomplish the purposes of the authority. The tenure of service as chair, vice-chair, and secretary shall be one year. The tenure of service as treasurer and other officers shall be determined by the board. Subject to the certificate of incorporation, the authority may employ all necessary personnel and set the terms and conditions of their employment. The duties of the chair, vice-chair, secretary, and treasurer shall be the same as are customarily performed by those officers and as may be prescribed by the board. The duties of any other officer of the authority shall be prescribed by the board.
*(Acts 1994, No. 94-254, p. 470, §8.)*
##### **§ 11-61A-9** Powers {#sec-11-61a-9 omnilex-key=us-al-statutes--title-11--11-61A-9}
The authority shall have the following powers, together with all incidental powers necessary:
(1) To have succession by its corporate name for the duration of time (which may be in perpetuity) specified in its certificate of incorporation.
(2) To sue and be sued in its own name in civil suits and actions.
(3) To adopt and make use of a corporate seal and to alter the seal at pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, receive, take, and hold, whether by purchase, gift, lease, devise, eminent domain, or otherwise, property of every description, whether real, personal, or mixed, and to manage the property, and to develop any undeveloped property owned, leased, or controlled by it. An authority may not acquire or lease real property located outside the boundaries of the municipality. An authority created under this chapter may not exercise any power of eminent domain without a concurring resolution from the governing body authorizing the power.
(6) To execute contracts and other instruments and to take other necessary or convenient actions to carry out the purposes of this chapter or the exercise of any power granted by this chapter.
(7) To plan, establish, develop, acquire, construct, enlarge, improve, maintain, equip, operate, regulate, and protect parking facilities.
(8) To lease or let the facilities or any of the facilities to a tenant or tenants for periods of time and compensation or rental and on such conditions as the authority may prescribe, subject to the limitations stated in Section 11-61A-10.
(9) To issue interest-bearing revenue bonds payable from the limited sources prescribed in this chapter.
(10) To pledge for payment of the bonds any revenues and funds from which the bonds are made payable.
(11) To make and enter into contracts, leases, and agreements incidental to or necessary for the accomplishment of any purpose for which the authority was organized.
(12) To appoint, employ, contract with and provide compensation of officers, employees, and agents, including engineers, attorneys, consultants, fiscal advisers, and other employees as the business of the authority may require, including the power to fix working conditions by general rule and other conditions of employment, and, at its option, to provide a system of disability pay, retirement compensation, and pensions, or any of them, and to employ and discharge servants, agents, employees, and officers at will.
(13) To fix, establish, collect, and alter parking fees, tolls, rents, and other charges for the use of any parking facility or other property owned or controlled by the authority, and to fix, establish, collect, and alter on-street metered parking fees within the municipality.
(14) To make and enforce rules and regulations governing the use of any parking facility owned or controlled by the authority.
(15) To secure insurance, including use and occupancy insurance.
(16) To invest any funds of the authority that the board may determine are not presently needed for its corporate purposes in any obligations which are direct general obligations of the United States of America or which are unconditionally guaranteed as to both principal and interest by the United States of America, or in bonds of this state or any county or municipality of the state.
(17) To cooperate with the state, any county, municipality, public corporation, agency, department, or political subdivision of the state, and to enter necessary contracts with them to accomplish the purposes for which the authority is established.
(18) To sell and convey any of its obsolete or unneeded properties.
(19) To receive and accept grants for or in aid of the construction, extension, improvement, maintenance, or operation of any parking facility from the United States of America or any agency thereof, and from the state, any political subdivision, department, or agency thereof, and to receive and accept money, property, labor, or other things of value from any source.
(20) To purchase necessary or convenient equipment and supplies for the exercise of any power of the authority. Powers exercised by the authority shall only be for those purposes necessary or incidental to the development, acquisition, construction, enlargement, maintenance, or operation of facilities for parking motor vehicles.
*(Acts 1994, No. 94-254, p. 470, §9.)*
##### **§ 11-61A-10** Operation of the Facility {#sec-11-61a-10 omnilex-key=us-al-statutes--title-11--11-61A-10}
(a) As used in this section, the word “person” means a natural person, a corporation, a partnership, or an unincorporated association.
(b) The authority shall carefully consider and decide whether it is in the public interest for the authority to operate the facility, enter into a contract with a person to operate the facility for the authority, or lease the facility. The authority shall consider all the following factors in making this determination:
(1) The relative efficiency of the alternate operations.
(2) The relative economy of the alternate operations.
(3) The overall advantage and benefit to the authority and the public of the alternate operations.
In order to make this determination, the authority shall ascertain each of the following:
(1) The amount necessary in each year to pay the principal and interest on the bonds proposed to be issued to finance the parking facility.
(2) The amount necessary to be paid each year to any reserve fund which the board deems advisable to establish in connection with the retirement of the bonds and the maintenance of the parking facility or facilities.
(3) Unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance, including liability insurance, the estimated cost of maintaining the parking facility in good repair and keeping it properly insured.
(c) The board may not enter into any lease of the parking facility unless the lease provides for both of the following:
(1) The lessee to pay to the authority a sufficient amount to meet the amortization requirements during the term of the lease.
(2) The lessee to pay the cost of keeping the parking facility in good repair and properly insured. These requirements shall not apply if the lease obligates the lessee, at lessee’s expense, to keep the facility in good repair and properly insured.
(d) The lease agreement may, at the discretion of the board, contain provisions describing minimum operating hours, maximum charges to be collected by the lessee, and other terms the lessee will be required to observe in operating the parking facility.
*(Acts 1994, No. 94-254, p. 470, §10.)*
##### **§ 11-61A-11** Funds {#sec-11-61a-11 omnilex-key=us-al-statutes--title-11--11-61A-11}
The authority may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan or both, to accomplish, in whole or in part, any of the purposes of this chapter.
*(Acts 1994, No. 94-254, p. 470, §11.)*
##### **§ 11-61A-12** Permitted Activities {#sec-11-61a-12 omnilex-key=us-al-statutes--title-11--11-61A-12}
For the purpose of aiding and cooperating with the authority in the planning, development, undertaking, construction, extension, improvement, or operation of parking facilities, a county, municipality, political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms, and with or without consideration as it may determine, engage in any of the following activities:
(1) Lend or donate money to the authority.
(2) Donate, transfer, assign, sell, or convey to the authority any right, title, or interest which it may have in any lease, contract, agreement, license, or property.
(3) Take any lawful action necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, or operation of parking facilities.
*(Acts 1994, No. 94-254, p. 470, §12.)*
##### **§ 11-61A-13** Bonds {#sec-11-61a-13 omnilex-key=us-al-statutes--title-11--11-61A-13}
(a) The authority may issue and sell its interest-bearing revenue bonds for any corporate purpose at any time or times. The principal of and the interest on the bonds shall be payable solely from, and may be secured by a pledge of, the revenues derived by the authority from the operation of any or all of its parking facilities and other property, or by mortgage of any property of the authority. The bonds issued or contracts entered by the authority shall not constitute or create an obligation, debt, or charge against the credit or taxing power of the state, any county, or municipality within the state.
(b) The board may provide for each of the following regarding the bonds:
(1) Issuance time or times.
(2) Form and denominations.
(3) Tenor.
(4) Payment installments, which shall be at a time or times not exceeding 40 years from their date.
(5) Place or places of payment, whether within or without the state.
(6) Interest rate or rates payable and evidenced in a specified manner.
(c) Any bond having a stated maturity more than ten years after its date shall be made subject to redemption, at the option of the authority, not later than the expiration of ten years from its date and on any interest payment date thereafter at the price or prices and after notice or notices and on the terms and in the manner as may be provided by the board.
(d) Bonds of the authority may be sold at public or private sale in the manner and at times as may be determined by the board.
(e) The authority may pay all reasonable expenses, premiums, fees, and commissions in connection with the authorization, sale, and issuance of the bonds.
(f) All bonds shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive that they have been duly authorized under this chapter.
(g) Neither a public hearing nor consent of the Department of Finance shall be a prerequisite to the issuance of bonds by any authority. Notwithstanding the fact that the bonds are payable solely from a specified source, all bonds issued under this chapter shall be deemed negotiable instruments within the meaning of the negotiable instruments law of the state if they otherwise possess all the characteristics of negotiable instruments under the laws of the state.
*(Acts 1994, No. 94-254, p. 470, §13.)*
##### **§ 11-61A-14** Signature on Bonds {#sec-11-61a-14 omnilex-key=us-al-statutes--title-11--11-61A-14}
All bonds shall be signed by the chair or vice-chair and the secretary or treasurer of the authority and the seal of the authority shall be affixed. A facsimile of the signature of one, but not both, of the officers whose signatures will appear on the bonds may be imprinted or otherwise reproduced on the bond in lieu of his or her manually signing. A facsimile of the seal of the authority may be imprinted or otherwise reproduced on the bonds in lieu of being manually affixed. Coupons shall be signed by the chair or vice-chair and the secretary or treasurer of the authority. A facsimile of the signature of the chair or vice-chair and the secretary or treasurer may be impressed or otherwise reproduced on any interest coupon in lieu of their manually signing. Delivery of executed bonds shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds.
*(Acts 1994, No. 94-254, p. 470, §14.)*
##### **§ 11-61A-15** Issuance of Bonds {#sec-11-61a-15 omnilex-key=us-al-statutes--title-11--11-61A-15}
(a) The authority may issue bonds under and secured by an indenture between the authority and a trustee. The trustee may be a private person or corporation, including, but not limited to, any trust company or bank having trust powers, whether the bank or trust company is located within or without the state.
(b) In any indenture or resolution providing for the issuance of bonds, the authority may pledge, for payment of the principal of and the interest on the bonds, any of its revenues to which its right then exists or may subsequently come into existence and may assign, as security for the payment, any of its leases, franchises, permits, and contracts. In any such indenture the authority may mortgage any of its properties, including any properties subsequently acquired by it. Any pledge of revenues shall be valid and binding from the time it is made, and the revenues pledged and subsequently received by the authority, and any property of the authority mortgaged shall immediately become subject to the lien of the pledge without any physical delivery or further act. The lien of the pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have actual notice thereof, from the time a statement is filed in the office of the judge of probate of the county in which the principal office of the authority is located. The notice shall state only the date on which the resolution authorizing the issuance of the bonds was adopted by the board, the principal amount of bonds issued, a brief description of the revenues so pledged, and a brief description of any property mortgaged or any property from which the revenue is pledged.
(c) In any indenture or resolution authorizing the issuance of bonds and pledging for the benefit thereof revenues from any one or more of its parking facilities, the authority may include provisions customarily contained in instruments securing evidence of indebtedness. These provisions may include, but shall not be limited to, each of the following:
(1) Collection, segregation, and application of any rental or other revenues due to or to become due to the authority.
(2) The terms to be incorporated in any lease agreement respecting any property of the authority.
(3) The maintenance and insurance of any building or structure owned by the authority.
(4) The creation and maintenance of special funds from any revenue of the authority.
(5) The rights and remedies available in the event of default to the holder of the bonds or the trustee under the indenture.
(d) In case of default by the authority in payment of the principal of, or the interest on the bonds, or in any of the agreements on the part of the authority that may properly be included in any indenture securing the bonds, any holder of any of the bonds or any of the coupons, or the trustee under any indenture if so authorized in the indenture, may, in addition to any other available remedies, either at law or in equity, by suit, action, mandamus, or other proceedings, enforce payment of the principal or interest and compel performance of all duties of the board and officers of the authority. The holder shall be entitled as a matter of right and regardless of the sufficiency of any security to the appointment of a receiver in equity with all the powers of the receiver for the operation and maintenance of the property of the authority covered by the indenture and the collection, segregation, and application of revenues therefrom. The indenture may also contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Acts 1994, No. 94-254, p. 470, §15.)*
##### **§ 11-61A-16** Proceeds from Sale of Bonds {#sec-11-61a-16 omnilex-key=us-al-statutes--title-11--11-61A-16}
(a) The proceeds derived from the sale of any bonds, other than refunding bonds, may be used exclusively to pay the cost of acquiring, constructing, improving, enlarging, and equipping the parking facilities or property with respect to which they were issued, as may be specified in the proceedings in which the bonds are authorized to be issued. The cost includes any of the following:
(1) The cost of any land forming a part of the facilities.
(2) The cost of labor, materials, and supplies used in any construction, improvement, or enlargement, including architects’ and engineers’ fees and the cost of preparing contract documents and advertising for bids.
(3) The purchase price of and the cost of installing equipment for the facilities.
(4) The cost of landscaping the lands forming a part of the facilities and of constructing and installing roads, sidewalks, curbs, gutters, and utilities in connection with the facilities.
(5) Legal, fiscal, and recording fees and expenses incurred in connection with the facilities.
(6) Interest on the bonds for a reasonable period before and during the time required for the construction and equipment and for not exceeding 18 months after completion of the construction and equipment.
(b) If any of the proceeds derived from the sale of the bonds remains undisbursed after completion of the work and payment of all of the costs and expenses, the balance shall be used for retirement of the principal of the bonds of the same issue.
*(Acts 1994, No. 94-254, p. 470, §16.)*
##### **§ 11-61A-17** Refunding Bonds {#sec-11-61a-17 omnilex-key=us-al-statutes--title-11--11-61A-17}
The authority may at any time and from time to time issue refunding bonds for the purpose of refunding the principal of and the interest on any bonds of the authority issued under this chapter and then outstanding. The refunding bonds may be issued regardless if the principal and interest have matured at the time of the refunding. The refunding bonds may be issued for the payment of any expenses incurred in connection with the refunding and any premium necessary to be paid in order to redeem, retire, or purchase for retirement the bonds to be refunded. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were issued. Any refunding may be effected either by sale of the refunding bonds and the application of the proceeds, or by exchange of the refunding bonds for the bonds or interest coupons to be refunded. The holders of any bonds or coupons to be refunded shall not be compelled to surrender their bonds or coupons for payment or exchange prior to the date on which they may be paid or redeemed by call of the authority under their respective provisions. All provisions of this chapter pertaining to bonds of the authority that are not inconsistent with this section shall, to the extent applicable, also apply to refunding bonds issued by the authority. The authority may issue bonds for the purpose of refunding the principal of and the interest on any of its bonds and for any other purpose for which it is authorized to issue bonds. The provisions of this chapter respecting refunding bonds shall apply only to the portion of the combined issue authorized for refunding purposes and the provisions respecting other financing shall apply to the remaining portion of the combined issue.
*(Acts 1994, No. 94-254, p. 470, §17.)*
##### **§ 11-61A-18** Tax Exemption {#sec-11-61a-18 omnilex-key=us-al-statutes--title-11--11-61A-18}
The bonds issued by the authority and the income from the bonds shall be exempt from all taxation in the state. All property and income of the authority shall be exempt from all state, county, municipal, and other local taxation, including license, privilege, or excise taxes. This exemption shall not be construed to exempt concessionaires, licensees, tenants, operators, or lessees of or on any parking facility owned by any authority from the payment of any taxes levied by the state, the county, or any municipality in the state.
*(Acts 1994, No. 94-254, p. 470, §18.)*
##### **§ 11-61A-19** Investment by Governing Body {#sec-11-61a-19 omnilex-key=us-al-statutes--title-11--11-61A-19}
The governing body of any county or municipality within this state may invest any idle or surplus money held in its treasury in bonds of the authority.
*(Acts 1994, No. 94-254, p. 470, §19.)*
##### **§ 11-61A-20** Bonds Deemed Legal Investment {#sec-11-61a-20 omnilex-key=us-al-statutes--title-11--11-61A-20}
Bonds issued under this chapter are deemed legal investments for executors, administrators, trustees, and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority. The bonds shall be legal investments for savings banks and insurance companies organized under the laws of the state.
*(Acts 1994, No. 94-254, p. 470, §20.)*
##### **§ 11-61A-21** Publication of Notice {#sec-11-61a-21 omnilex-key=us-al-statutes--title-11--11-61A-21}
Upon the adoption by the board of any resolution providing for the issuance of bonds, the authority may cause to be published once a week for two consecutive weeks, in a newspaper that is customarily published in this state not less than five days in each calendar week and distributed in the county in which the principal office of the authority is located, a notice in substantially the following form (the blanks being properly filled in) at the end of which there shall be printed the name and title of either the chair or secretary of the authority: “_____ a public corporation of the State of Alabama, on the _____ day of _____,_____, authorized the issuance of $ _____ principal amount of revenue bonds of the corporation for purposes authorized in the act of the Legislature of Alabama under which the corporation was organized. Any action or proceeding questioning the validity of the bonds, or the pledge and any instruments securing the bonds, or the proceedings authorizing the bonds, must be commenced within 30 days after the first publication of this notice.” Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of any bonds or the validity of the pledge and any instruments made to secure the bonds must be commenced within 30 days after the first publication of the notice. After the expiration of the period, no right of action or defense questioning or attacking the validity of the proceedings, the bonds, or the pledge or instruments shall be asserted, nor shall the validity of the proceedings, bonds, pledge, or instruments be open to question in any court on any ground whatsoever except in an action commenced within the period.
*(Acts 1994, No. 94-254, p. 470, §21.)*
##### **§ 11-61A-22** Advertising and Award Laws Are Applicable {#sec-11-61a-22 omnilex-key=us-al-statutes--title-11--11-61A-22}
Laws, regulations, and ordinances relating to the advertising and award of construction contracts and purchase contracts made by or in behalf of the authorizing subdivision shall be applicable to any authority granted permission to incorporate by the authorizing subdivision. Nothing herein shall exempt the authorities from laws relating to surety bond requirements for such contracts.
*(Acts 1994, No. 94-254, p. 470, §22.)*
##### **§ 11-61A-23** Examination and Audit of the Records {#sec-11-61a-23 omnilex-key=us-al-statutes--title-11--11-61A-23}
(a) At least once every 12 months after the date an authority is created pursuant to this chapter, the municipality shall appoint an expert accountant who shall make an examination and audit of the records, books, and accounts of the authority and shall make a report of the audit in writing to the municipality and the authority. The accountant’s compensation shall be payable out of the funds of the authority.
(b) The records of the authority shall constitute public records. Every citizen shall have the right to inspect the records. The officer having custody of the records shall be obligated to furnish to any citizen a certified copy of any record on the citizen’s demand and payment to the authority of the same fee as is payable to the judge of probate of the county for furnishing certified copies of records of the probate court.
*(Acts 1994, No. 94-254, p. 470, §23.)*
##### **§ 11-61A-24** Dissolution {#sec-11-61a-24 omnilex-key=us-al-statutes--title-11--11-61A-24}
When no bonds of the authority are outstanding, the authority may be dissolved upon the filing with the judge of probate, in the county in which is filed the certificate of incorporation, an application for dissolution. The application for dissolution shall be subscribed by each member of the board and sworn to by each member before an officer authorized to take acknowledgments to deeds. Upon the filing of an application for dissolution, the authority shall cease to exist. The judge of probate shall receive and record the application for dissolution in an appropriate book of record in his or her office. Upon dissolution, all rights, title, and interest of the authority in property shall be vested in the municipality.
*(Acts 1994, No. 94-254, p. 470, §24.)*
### **Chapter 62** Municipal Special Health Care Facility Authorities
##### **§ 11-62-1** Definitions {#sec-11-62-1 omnilex-key=us-al-statutes--title-11--11-62-1}
(a) The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of clear implication herein otherwise, be given the following respective interpretations herein:
(1) AUTHORITY. Any public corporation organized pursuant to this chapter.
(2) AUTHORIZED PURPOSE OBLIGATION. The term includes either of the following:
a. Any lease, note, installment sale contract, or any other obligation of a user, whether general or special, which was entered into, made, assumed, or otherwise incurred by the user, in whole or in part, for the purpose of financing the acquisition or ownership of one or more facilities, for the purpose of obtaining funds with which to operate one or more facilities or for any combination of those purposes.
b. Any obligation of any kind which was entered into, made, assumed, or otherwise incurred by the United States of America or any department, agency, or instrumentality thereof, the state or any instrumentality or political subdivision thereof, or any corporation, partnership, trust, fund, foundation, corporation, or other legal entity, whether public or private, or joint venture of any two or more of any of the foregoing entities, and which is secured, in whole or in part, by a pledge or assignment of any obligation described in paragraph a. of this subdivision or is payable, in whole or in part, from payments made in respect of any such obligation, including, without limitation thereto, any obligation described in either paragraph a. of this subdivision or this paragraph that is guaranteed by the United States of America or by any department, agency, or instrumentality thereof.
(3) BOARD. The board of directors of an authority.
(4) COUNTY. Any county in the state.
(5) DETERMINING MUNICIPALITY. With respect to an authority, any municipality whose governing body has made findings and determinations of fact pertaining to the organization of the authority in accordance with Section 11-62-3.
(6) DIRECTOR. A member of the board of an authority.
(7) ELIGIBLE INVESTMENT. The term includes:
a. Any time deposit with, or any certificate of deposit issued by, any bank organized under the laws of the United States of America or any state in which deposits are insured by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of the corporation.
b. Any debt securities that are direct, general obligations of the United States of America.
c. Any debt securities, for which the payment of the principal of and interest is unconditionally guaranteed by the United States of America.
d. Any debt securities that are direct, general obligations of any of the following agencies of the United States of America: The federal land banks, the federal intermediate credit banks, the banks for cooperatives, the federal home loan banks (including any joint obligations of any two or more of the foregoing agencies), the Federal Home Loan Mortgage Corporation (including participation certificates of the last named agency), and the Government National Mortgage Association (including participation certificates of the last named agency).
e. Any debt securities that are direct, general obligations of the Federal National Mortgage Association.
f. Prime commercial paper or finance company paper which is rated not less than prime one or the equivalent thereof by Moody’s Investors Service, Inc., or Standard and Poor’s Corporation, or their successors.
g. Any debt obligation in which an insurance company organized under the laws of the state may legally invest its money at the time of investment by an authority.
h. Any debt securities that are rated in one of the two highest rating categories by Moody’s Investors Service, Inc., or Standard and Poor’s Corporation, or their successors.
(8) FACILITY. Any one or more buildings or facilities designed for use and occupancy as (i) a retirement home, nursing home, convalescent home, apartment building, domiciliary facility, residence, or special care facility, or any combination of two or more thereof for the housing and care of elderly persons, whether or not the building or facility is required to be approved or licensed by any federal, state, or local governmental agency having jurisdiction in the planning or operation of health care facilities, or (ii) a hospital, nursing home, convalescent home, domiciliary facility, residence, or special care facility, or any combination of two or more thereof for the housing, care, and treatment of orphans, or persons who are sick, physically disabled or handicapped, or mentally ill or retarded, or other persons requiring special care, including, in the case of facilities described in either clause (i) of this subdivision or this clause, any land, buildings, medical or dental facilities, educational facilities, parking areas, garages, storage facilities, outbuildings, machinery, equipment, furniture, and fixtures necessary or desirable in connection therewith. If any facility is or will be located within the corporate limits of any municipality other than the determining municipality, or within any unincorporated area of any county other than the county or counties in which the determining municipality or any part thereof is located, no authority shall acquire, improve, or finance the facility, or acquire, hold, or pledge any acquired purpose obligation related to the facility, or in any other way assist any user in respect of the facility pursuant to this chapter, unless, in the case of any such facility located within the corporate limits of any municipality other than the determining municipality, the governing body of the other municipality shall adopt a resolution consenting to the actions in respect of the facility proposed to be taken by the authority and, in the case of any facility located within any unincorporated area of any county other than the county or counties in which the determining municipality or any part thereof is located, the governing body of the other county shall adopt a resolution consenting to the actions in respect of the facility proposed to be taken by the authority.
(9) INCORPORATORS. The natural persons forming an authority pursuant to this chapter.
(10) MUNICIPALITY. An incorporated municipality in the state.
(11) STATE. The State of Alabama.
(12) USER. Any corporation, partnership, trust, fund, foundation, or other legal entity or joint venture of any two or more thereof which is organized and operated exclusively for religious, charitable, or educational purposes or for purposes of promoting and providing for the housing, health, care or well-being, or both, of any part of the population requiring special care and of which no part of the net earnings inures to the benefit of any private shareholder, member, or individual.
(b) The terms “herein,” “hereby,” “hereunder,” “hereof,” and other equivalent words refer to this chapter as an entirety and not solely to the particular section or portion thereof in which any such word is used. The definitions set forth herein shall be deemed applicable whether the words defined are used in the singular or plural. Whenever used herein any pronoun or pronouns shall be deemed to include both singular and plural and to cover all genders.
*(Acts 1979, No. 79-332, p. 506, §2; Acts 1993, No. 93-185, p. 277, §1.)*
##### **§ 11-62-2** Legislative Findings and Declarations {#sec-11-62-2 omnilex-key=us-al-statutes--title-11--11-62-2}
It is hereby found and declared as follows: There exists in the State of Alabama a serious shortage of adequate facilities for the housing, care, and treatment of persons requiring special care, including orphans and persons who are elderly, sick, physically disabled, or handicapped or mentally ill or retarded, as well as a shortage of investment funds needed to finance such facilities; in order to alleviate the shortage of such facilities, to encourage the continued operation of such facilities as now exist and to enable certain not-for-profit organizations to finance such facilities it is necessary and desirable to authorize the creation by municipalities in the state of authorities which will have the power to increase the supply of investment funds available for such facilities by selling and issuing bonds and notes and using the proceeds of such bonds and notes to (1) acquire facilities for lease or sale to such not-for-profit organizations, (2) make loans to such not-for-profit organizations in order to finance both capital and operating costs of such facilities and/or (3) purchase authorized purpose obligations, as hereinafter defined, created in connection with facilities operated by such not-for-profit organizations.
*(Acts 1979, No. 79-332, p. 506, §1.)*
##### **§ 11-62-3** Application for Authority to Form Corporation; Adoption of Resolution by Governing Body Authorizing Incorporation; Execution, Acknowledgement, Filing, Recordation and Contents of Certificate of Incorporation; Effect of Granting of Authority for Incorporation Upon Incorporation of Other Such Corporations {#sec-11-62-3 omnilex-key=us-al-statutes--title-11--11-62-3}
(a) By proceeding in the manner set forth herein, any number of natural persons, not less than three, may incorporate a special care facilities financing authority in any municipality of the state. Such authority shall be organized as a public corporation and instrumentality of the state with the powers hereinafter set forth. The incorporators shall first file with the governing body of such municipality a written application seeking permission to incorporate such authority, which application shall be accompanied by a proposed form of certificate of incorporation for such authority and such supporting documents or evidence as the incorporators may consider appropriate to show the need for such authority. The said governing body shall consider the said application and shall find and determine whether it is wise, expedient, necessary, or advisable that the authority be formed; if the said governing body finds and determines that it is not wise, expedient, necessary, or advisable that the authority be formed, it shall deny the application, but if it finds and determines that it is wise, expedient, necessary, or advisable that the authority be formed and if it approves the proposed form of the certificate of incorporation of the authority, the governing body shall adopt a resolution declaring that it has reviewed the application and has found and determined as a matter of fact that it is wise, expedient, necessary, or advisable that the authority be formed and declaring that it has approved the proposed form of certificate of incorporation of the authority. No authority shall be formed hereunder unless the application required by this section shall be made and unless a resolution for which provision is made in this section shall be adopted.
(b) Within 40 days following the adoption of a resolution in accordance with this section, the incorporators shall proceed to incorporate the authority by filing for record, in the office of the judge of probate of the county in which the determining municipality is located or, in case the determining municipality is located in more than one county, in the office of the judge of probate of any county in which any part of the determining municipality is located, a certificate of incorporation in the form approved by the governing body of the determining municipality, which certificate shall also comply in form and substance with the requirements of this section and shall be executed in the manner hereinafter provided.
(c) The certificate of incorporation of any authority shall state:
(1) The names of the persons forming the authority, together with the address of the residence of each thereof, that each of them is a resident of and an owner of real property in the determining municipality and that each of them is a duly qualified elector of the determining municipality;
(2) The name of the authority, which shall include the words, “special care facilities financing authority” and the name of, or other reference to, the determining municipality;
(3) The duration of the corporate existence of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-62-17, that fact shall be stated);
(4) The name of the determining municipality, together with the date on which the governing body thereof adopted the resolution in accordance with this section;
(5) The location of the principal office of the authority, which shall be within the corporate limits of the determining municipality; and
(6) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(d) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds.
(e) When the certificate of incorporation is filed for record, there shall be attached to it a certified copy of the resolution adopted by the governing body of the determining municipality in accordance with this section and a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. The judge of probate shall promptly examine all such documents and shall determine whether they are complete and regular on their face and whether the form and content of the certificate of incorporation comply with the provisions of this chapter. If the judge of probate shall find that all such documents are complete and regular on their face and that the form and content of the certificate of incorporation comply with the provisions of this chapter, he shall require all such documents to be recorded in the permanent records maintained in his office. Upon the filing of the said documents, the authority shall come into existence and shall constitute a public corporation and instrumentality of the state under the name set forth in the said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
(f) The authorization of the incorporation of one authority shall not preclude the authorization by the governing body of any municipality of the incorporation of other such authorities; provided, that such other authorities shall be required to adopt names or designations sufficient to distinguish them from any authority theretofore incorporated.
*(Acts 1979, No. 79-332, p. 506, §3.)*
##### **§ 11-62-4** Amendment of Certificate of Incorporation {#sec-11-62-4 omnilex-key=us-al-statutes--title-11--11-62-4}
(a) The certificate of incorporation of any authority may at any time and from time to time be amended in the manner provided in this section. The board of the authority shall first adopt a resolution proposing an amendment to the certificate of incorporation, which amendment shall be set forth in full in the said resolution and may include any matters which might have been included in the original certificate of incorporation of any authority organized on the date of the adoption of the said resolution proposing the amendment.
(b) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of any authority, the board shall file a written application with the governing body of the determining municipality. Such application shall state that it is wise, expedient, necessary, or advisable for the said amendment to be made and request that the governing body of the determining municipality adopt a resolution declaring that it has reviewed the application and has found and determined as a matter of fact that it is wise, expedient, necessary, or advisable for the said amendment to be made. Every such application shall be accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the board may consider appropriate. As promptly as may be practicable after the filing of the said application with it, the governing body of the determining municipality shall review the said application and shall find and determine whether it is wise, expedient, necessary, or advisable for the said amendment to be made. In finding and determining whether it is wise, expedient, necessary, or advisable for the said amendment to be made, the said governing body may consider, in conjunction with any other factors it may deem relevant, alternative means of accomplishing any lawful objective or purpose of the said amendment affecting the public interest. If the said governing body finds and determines that it is wise, expedient, necessary, or advisable for the said amendment to be made, it shall adopt a resolution declaring that it has reviewed the said application and has found and determined as a matter of fact that it is wise, expedient, necessary, or advisable for the said amendment to be made; if the said governing body finds and determines that it is not wise, expedient, necessary, or advisable for the said amendment to be made, it shall deny the application.
(c) Within 40 days following the adoption by the governing body of the determining municipality of a resolution finding and determining as a matter of fact that it is wise, expedient, necessary, or advisable for said amendment to be made, the chairman of the authority and the secretary of the authority shall sign, and file for record in the office of the judge of probate of the county in which the certificate of incorporation of the authority was filed, a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of said respective resolutions by the board and by the said governing body, and setting forth the said proposed amendment. If the proposed amendment provides for a change in the name of the authority, there shall be filed, together with the certificate required by the immediately preceding sentence, a certificate by the Secretary of State showing that the proposed new name of the authority is not identical to that of any other corporation then in existence and organized under the laws of the state or so nearly similar to that of any other such corporation as to lead to confusion and uncertainty. The judge of probate shall promptly examine each such certificate and shall determine whether it is complete and regular on its face and whether the proposed amendment complies with the provisions of this chapter. If the judge of probate shall find that each such certificate is complete and regular on its face and that the proposed amendment complies with the provisions of this chapter, he shall require each such certificate to be recorded in the permanent records maintained in his office. Upon the filing of the aforesaid certificates, the said amendment to the certificate of incorporation shall become effective. If the proposed amendment effects a change in the name of the authority, the judge of probate shall promptly send a notice to the Secretary of State, advising him of such change.
*(Acts 1979, No. 79-332, p. 506, §4.)*
##### **§ 11-62-5** Board of Directors {#sec-11-62-5 omnilex-key=us-al-statutes--title-11--11-62-5}
(a) Every 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. The board shall consist of three directors elected in the manner hereinafter prescribed, as soon as may be practicable after the organization of the authority, by the governing body of the determining municipality for staggered terms as follows: The first term of one director shall begin immediately upon his election and shall end at noon on the second Monday of November of the next succeeding odd-numbered calendar year following his election; the first term of another director shall begin immediately upon his election and shall end at noon on the second Monday of November of the second succeeding odd-numbered calendar year following his election; and the first term of the remaining director shall begin immediately upon his election and shall end at noon on the second Monday of November of the third succeeding odd-numbered calendar year following his election. Thereafter, the term of office of each director shall be six years, commencing at noon on the second Monday of November when the term of the immediate predecessor director ended. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by the governing body of the determining municipality. Each election of a director subsequent to the selection of the initial directors, 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 such director is to take office as such. If the term of office being served by any director shall expire prior to the election of such director for a new term or prior to the election of his successor by the governing body of the determining municipality, such director shall continue to serve until his successor is elected and qualified, and if such director is elected for a new term after the expiration of the immediately preceding term which he has been serving, his new term of office shall be deemed to have commenced as of the expiration of such immediately preceding term.
(b) No officer of the state or of any county or municipality shall, during his tenure as such officer, be eligible to serve as a director. Each director must be a qualified elector and the owner of real property in the determining municipality. Directors shall be eligible for reelection. Each director shall serve without compensation, except that he may be reimbursed for expenses actually incurred by him in and about the performance of his duties. No director shall vote on or participate in the discussion or consideration of any matter coming before the board in which he, his immediate family, or any business enterprise with which he is associated has any direct or indirect pecuniary interest; provided, however, that when any such matter is brought before the board, any director having an interest therein which may be in conflict with his obligations as a director shall immediately make a complete disclosure to the board of any direct or indirect pecuniary interest he may have in such matter prior to removing himself and withdrawing from the board’s deliberations and vote on the matter presented.
(c) A majority of the directors shall constitute a quorum for the transaction of business. No vacancy in the membership of the board or the voluntary disqualification or abstention of any member thereof shall impair the right of a quorum to exercise all of the powers and duties of the authority.
(d) Any director of an 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, or successor provision thereof, and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175, or successor provisions thereof.
(e) All proceedings of the board shall be reduced to writing by the secretary of the authority and maintained in the permanent records of the authority. Copies of such proceedings, when certified by the secretary of the authority under the seal of the authority, shall be received in all courts as evidence of the matters therein certified.
*(Acts 1979, No. 79-332, p. 506, §5.)*
##### **§ 11-62-6** Officers {#sec-11-62-6 omnilex-key=us-al-statutes--title-11--11-62-6}
The officers of an authority shall consist of a chairman, vice chairman, secretary, treasurer, and such other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may but need not be held by the same person. The chairman and vice chairman of an authority shall be elected by the board from the membership thereof; the secretary, the treasurer and any other officers of the authority may but need not be members of the board and shall also be elected by the board. The chairman, vice chairman and secretary of the authority shall also be the chairman, vice chairman and secretary of the board, respectively.
*(Acts 1979, No. 79-332, p. 506, §6.)*
##### **§ 11-62-7** Powers of Authority Generally; Operation of Facilities by Authority {#sec-11-62-7 omnilex-key=us-al-statutes--title-11--11-62-7}
(a) Every authority shall have all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including, without limiting the generality of the foregoing, the following powers:
(1) To have succession in its corporate name for the duration of time (which may be in perpetuity, subject to the provisions of Section 11-62-17) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil suits and actions and to defend suits against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt, alter, and repeal bylaws, regulations, and rules, not inconsistent with the provisions of this chapter, for the regulation and conduct of its affairs and business;
(5) To acquire, whether by gift, purchase, transfer, foreclosure, lease, or otherwise, and to expand, improve, maintain, equip, and furnish one or more facilities, including all real and personal properties that its board may deem necessary in connection therewith, regardless of whether or not any such facility shall then be in existence and, if in existence, regardless of whether or not any such facility is then owned or leased by any user to which such facility may subsequently be sold or leased by such authority;
(6) To borrow money and to sell and issue bonds, notes, or other obligations as hereinafter provided for any corporate use or purpose;
(7) To lease to a user or users any or all facilities that may be owned by it, to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof, all upon such terms and conditions as its board may deem advisable;
(8) To contract to sell and convey and to sell and convey to a user or users any or all facilities that may be owned by it and to grant options to any user or users to purchase any or all facilities that may be owned by it, all for such consideration and upon such terms and conditions as its board may deem advisable;
(9) To lend, upon such terms and conditions as its board may deem advisable, all or any portion of the proceeds derived from the issuance of its bonds, notes, or obligations to a user, whether pursuant to one or more loan agreements or in conjunction with the lease or sale of one or more facilities to such user or the purchase of an authorized purpose obligation relating to a facility or facilities operated by such user, for one or more or any combination of the following purposes:
a. To enable such user to borrow an amount not substantially in excess of the equity (determined on any basis not resulting in a higher value for any facility in question than the estimated replacement cost or the appraised market value thereof, whichever may be greater) which such user may then have in any facility or facilities;
b. To enable such user to refinance any outstanding indebtedness incurred or assumed in connection with the acquisition, improvement, or operation of any existing facility or facilities;
c. To enable such user to finance the costs of acquiring, by purchase, construction, or otherwise, one or more facilities and/or the costs of expanding or improving one or more facilities, regardless of whether any such facility has theretofore been owned or leased by such user or is to be acquired or leased by such user; and
d. To enable such user to borrow working capital for use in the operation of one or more facilities;
(10) To contract to acquire, hold, pledge, assign, sell, and transfer and to acquire, hold, pledge, assign, sell, and transfer one or more authorized purpose obligations that are entered into or issued in whole or in part with respect to one or more facilities;
(11) To pledge for payment of any bonds, notes, or obligations issued by the authority any revenues from which such bonds, notes, or obligations are payable as herein provided and to mortgage or pledge any or all of its facilities or any part or parts thereof or any authorized purpose obligation, whether then owned or thereafter acquired, and to pledge the revenues, rentals, and receipts therefrom or from any part thereof or any revenues from which such bonds are payable as herein provided as security for the payment of the principal of and the interest and premium, if any, on any bonds, notes, or obligations so issued and any agreements made in connection therewith;
(12) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which such authority was organized or to exercise any power expressly granted hereunder;
(13) To enter into contracts with, to accept aid, loans and grants from, to cooperate with, and to do any and all things not specifically prohibited by this chapter or the Constitution or other applicable laws of the state that may be necessary in order to avail itself of the aid and cooperation of the United States of America, the state or any agency, instrumentality, or political subdivision of either thereof in furtherance of the purposes of this chapter;
(14) To receive and accept from any source aid or contributions in the form of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this chapter, subject to any lawful condition upon which any such aid or contributions may be given or made;
(15) To appoint, employ, and contract with such employees and agents, including, but not limited to, architects, engineers, attorneys, accountants, financial experts, fiscal agents, and such other advisors, consultants, and agents as may in its judgment be necessary or desirable, and to fix their compensation;
(16) To enter into a management contract or contracts with any governmental agency, nonprofit organization or private business entity as may in the judgment of such authority be necessary or desirable in order to perform more efficiently or economically various clerical, accounting, and administrative functions for which it may become responsible in the exercise of the powers conferred upon it by this chapter;
(17) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as its board may deem desirable;
(18) To the extent permitted by the contracts of such authority with the holders of its bonds, notes, and other obligations and if not otherwise specifically prohibited by any other provision of this chapter, to invest its moneys, including, without limitation, the moneys held in any special fund created pursuant to any trust indenture or resolution securing any of its bonds, notes, or other obligations and proceeds from the sale of any bonds or notes, not required for immediate use in eligible investments;
(19) To include in any borrowing by such authority such amounts as may be deemed necessary by its board to pay bond discount, commissions, or other financing charges, interest on the obligations issued in evidence of such borrowing for such period as its board shall deem advisable, fees and expenses of financial advisors and planning and management consultants, all legal, accounting, publishing, printing, recording, and filing fees and expenses and such other expenses as shall be necessary or incident to such borrowing;
(20) To the extent permitted by its contracts with the holders of its bonds, notes, and other obligations, to purchase bonds or notes of such authority out of any of its funds or moneys available therefor and to hold, cancel, or resell such bonds or notes;
(21) To procure or agree to the procurement of insurance or guarantees from the United States of America or any agency or instrumentality thereof or from any private insurance company of the payment of any bonds, notes or any other obligations issued by such authority and to pay premiums or fees for any such insurance or guarantees; and
(22) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to the provisions of this chapter.
(b) No authority shall have the power to operate any facility other than as a lessor thereof; provided, however, that the foregoing restriction on the power of any authority to operate any facility shall not be construed to prohibit, limit or impair the right of such authority to terminate any lease of any facility that is in default, to take possession of such facility and to operate the same for such temporary period as may be necessary to protect and enforce the rights and remedies of the holders of any of its notes or bonds and to exercise any other right or remedy which may be necessary to prevent or cure any default under any contract of such authority which provides for or relates to the security for any of its notes, bonds or other obligations.
*(Acts 1979, No. 79-332, p. 506, §7.)*
##### **§ 11-62-8** Bonds and Notes Generally - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Security for Payment of Principal or Interest; Remedies Upon Default; Liability of Municipalities, Board, Etc., Thereupon {#sec-11-62-8 omnilex-key=us-al-statutes--title-11--11-62-8}
(a) Any authority shall have power to issue from time to time its bonds and notes in such principal amount as its board shall determine to be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on any of its notes and bonds, the establishment of reserves to secure any such notes and bonds and all other expenditures of such authority incident to and necessary or convenient to carry out its corporate purposes and powers. Any authority shall also have the power to issue from time to time notes to renew notes and bonds to pay notes, including interest thereon and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other of its corporate purposes.
(b) If deemed advisable by the board of any authority, there may be retained in the resolution adopted by such board authorizing the issuance of any bonds or notes an option to redeem all or any part thereof as specified in such resolution at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in such resolution and as may be recited in summary form on the face of the bonds or notes; provided, that any bond of any authority having a specified maturity more than 15 years after its date shall be made subject to redemption at the option of such authority at the expiration of 15 years from its date and on any interest payment date thereafter at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in the resolution adopted by the board of such authority authorizing the issuance of such bond. Any authority may pay all expenses, premiums and commissions which its board may deem necessary and advantageous in connection with the issuance of any of its bonds or notes. Issuance by any authority of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds, but the resolutions whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for the benefit of any prior issue of bonds, unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
(c) Notes or bonds issued by any authority may, as its board may deem advisable, be either general obligations of such authority or limited obligations payable only out of certain specified revenues or assets of such authority; provided, that any authority may enter into contracts with the holders of any of its bonds or notes preventing such authority from thereafter issuing general obligation bonds or notes or limiting the amount of such bonds or notes that may thereafter be issued. To the extent permitted by any contracts with the holders of outstanding bonds and notes and any other contractual obligations or requirements, any authority may pledge any of its revenues or mortgage or assign any of its assets, whether real or personal and whether tangible or intangible, to secure the payment of any of its bonds or notes.
(d) All obligations created or assumed by any authority and all bonds or notes issued thereby shall be solely and exclusively an obligation of such authority and shall not create an obligation or debt of the state, the determining municipality or any other political subdivision of the state or public corporation or governmental agency existing under the laws thereof; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by any authority.
(e) The notes and bonds issued by any authority shall be authorized by resolution or resolutions adopted by its board, shall bear such date or dates and shall mature at such time or times as such resolution or resolutions may provide, except that no bond shall mature more than 45 years from the date of its issue. The bonds of any authority may be issued as serial bonds payable in annual installments or as term bonds or as a combination thereof. The notes and bonds of any authority shall bear interest at such rate or rates, be in such form and denominations, either coupon or registered, carry such registration privileges, be executed by such officers of such authority and in such manner, be payable in such medium of payment, at such place or places within or without the state and be subject to such terms of redemption as may be provided in the resolution or resolutions by which they are authorized to be issued. The notes and bonds of any authority may be sold by such authority at public or private sale at such price or prices as such authority shall determine.
(f) Any resolution or resolutions authorizing bonds or notes of any authority may contain provisions, which shall constitute a part of the contract or contracts with the holders of such bonds or notes, pertaining to, among other things, the following matters:
(1) Pledging all or any part of the revenues of such authority to secure the payment of such bonds or notes, subject to contracts with the holders of its then outstanding bonds and notes;
(2) Pledging, assigning or mortgaging all or any part of the assets of such authority to secure the payment of such bonds or notes, subject to contracts with the holders of its then outstanding bonds and notes;
(3) Setting aside of reserves, sinking funds or other funds and the regulation and disposition thereof;
(4) Limitations on the purpose to which the proceeds of sale of such notes or bonds may be applied and pledging such proceeds to secure the payment of such bonds or notes;
(5) Limitations on the issuance of additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured and the refunding of outstanding bonds or notes;
(6) Procedure, if any, by which the terms of any contract with the holders of such bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto and the manner in which such consent may be given;
(7) Limitations on the amount of moneys to be expended by such authority for its operating expenses;
(8) Vesting in a trustee or trustees such property, rights, powers and duties as such authority may determine;
(9) Defining the acts or omissions to act that shall constitute a default in the performance of the obligations and duties of such authority to the holders of such bonds or notes and providing for the rights and remedies of such holders in the event of such default; provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter; and
(10) Any other matters of like or different character which in any way affect the security or protection of the holders of such bonds or notes.
(g) Any mortgage of property granted by any authority, any security interest in property created by it or any assignment or pledge of revenues or contract rights made by it, in each case to secure the payment of its bonds or notes, shall be valid and binding from the time when such mortgage is granted, such security interest created or such assignment or pledge is made, as the case may be, and the property so mortgaged, the property with respect to which such security interest is so created and the revenues and contract rights so assigned or pledged shall immediately, or as soon thereafter as such authority obtains any right thereto or interest therein, be subject to such mortgage, security interest, assignment or pledge, as the case may be, without physical delivery of any property, revenues or contract documents covered thereby or any further act, and the lien of any such mortgage, security interest, assignment or pledge shall be valid and binding as against all persons having claims of any kind in tort, contract or otherwise against such authority, irrespective of whether such persons have actual notice thereof, from the time notice of such mortgage, security interest, assignment or pledge is filed for record in the office of the judge of probate in which the certificate of incorporation of such authority was filed for record and, in the case of any mortgage or security interest covering any tangible property, whether real, personal or mixed, in the office of the judge of probate of the county in which such property is or is to be located pursuant to any agreement made by such authority with any user respecting the location and use of such property. Such notice shall contain a statement of the existence of any such mortgage, security interest, assignment or pledge, as the case may be, a description of the property, revenues or contract rights subject thereto and a description of the bonds or notes secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of any such mortgage, security interest, assignment or pledge. If the requirements of the preceding sentence are met, such notice may consist of a summary statement prepared specially for the purpose of serving as such notice, an executed counterpart of any mortgage, security agreement, assignment, trust indenture or other instrument granting such mortgage, creating such security interest or making such assignment or pledge, as the case may be, or a certified copy of the resolution adopted by the board of such authority authorizing such mortgage, security interest, assignment or pledge, as the case may be.
(h) Any authority shall have power, subject to contracts with the holders of its then outstanding bonds and notes, to purchase for retirement and cancellation any of its bonds or notes and to use any of its available funds for such purpose, provided that, if such bonds or notes are then redeemable, the purchase price thereof shall not exceed the redemption price then applicable, plus accrued interest thereon to the date of purchase, and, if such bonds or notes are not then redeemable, the purchase price thereof shall not exceed the redemption price applicable on the earliest date after such purchase upon which such bonds or notes become subject to redemption, plus accrued interest thereon to the date of purchase.
(i) The bonds or notes of any authority may, at the discretion of such authority, be issued under and secured by a trust indenture or trust indentures by and between such authority and a corporate trustee, which may be any trust company or bank having the power of a trust company within or without the state. Any such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of bondholders or noteholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of such authority in relation to the exercise of its corporate powers and the custody, safeguarding and application of all moneys. Such authority may provide by any such trust indenture for the payment to the trustee thereunder or other depository of the proceeds of any bonds or notes issued thereunder and any revenues pledged for the security of such proceeds and revenues, with such safeguards and restrictions as it may determine. All expenses incurred in connection with such trust indenture may be treated as part of the operating expenses of such authority.
(j) Whether or not the notes and bonds of any authority are of such form and character as to be negotiable instruments under the terms of the Alabama Uniform Commercial Code, such notes and bonds are hereby made negotiable instruments within the meaning of the Alabama Uniform Commercial Code and for all purposes thereof, subject only to any registration provisions of such notes and bonds. In case any of the directors or officers of any authority whose signatures appear on any notes, bonds or coupons appertaining to any bond shall cease to be such directors or officers before the delivery of such notes, bonds or coupons, such signatures shall, nevertheless, be valid and sufficient for all purposes to the same extent as if such directors or officers had remained in office until such delivery.
(k) The directors and officers of any authority shall not be subject to any personal liability by reason of the issuance of any bonds or notes of such authority.
*(Acts 1979, No. 79-332, p. 506, §8.)*
##### **§ 11-62-9** Bonds and Notes Generally - Notice of Resolution Authorizing Issuance of Bonds or Notes; Limitation Period for Actions, Etc., as to Validity of Proceedings for Issuance of Bonds {#sec-11-62-9 omnilex-key=us-al-statutes--title-11--11-62-9}
(a) Upon the adoption by the board of any authority of any resolution providing for the issuance of bonds or notes, such authority may, in the discretion of its board, cause a notice respecting the issuance of such bonds or notes to be published once a week for two consecutive weeks in each county in which shall be located any facility financed or in any way assisted by the issuance of such bonds or notes, such publication in each such county to be in a newspaper having general circulation therein. Such notice shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of such authority: “_____ a public corporation and instrumentality of the State of Alabama, on the _____ day of_____ , authorized the issuance of $ _____ principal amount of bonds (or notes, as the case may be) of the said public corporation for purposes authorized in the act of the Legislature of Alabama under which the said public corporation was organized. Any action or proceeding questioning or contesting the validity of the said bonds (or notes), or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before _____ (here insert a date determined in accordance with the provisions of subsection (b) of this section).”
(b) The date stated in such notice as the date on or before which any action or proceeding questioning or contesting the validity of the bonds or notes referred to therein must be commenced shall be a date at least 30 days after the date on which occurs the last publication of such notice necessary for it to have been published at least once in all counties in which it is required to be published. Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds or notes referred to in such notice or to contest the validity of any such bonds or notes, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with the preceding sentence and stated in such notice as the date on or before which any such action or proceeding must be commenced. After such date, no right of action or defense shall be asserted questioning or contesting the validity of such bonds or notes, or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of such bonds or notes or such instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before such date.
*(Acts 1979, No. 79-332, p. 506, §20.)*
##### **§ 11-62-10** Refunding Bonds and Notes {#sec-11-62-10 omnilex-key=us-al-statutes--title-11--11-62-10}
(a) Any authority may issue refunding bonds or notes for the purpose of refunding any bonds or notes then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon, any interest accrued or to accrue to the date of maturity or earlier redemption of such bonds or notes and any expenses of such refunding, including, without limitation to, attorneys’ fees, costs of printing the refunding bonds or notes, financial advisors’ fees and accountants’ fees, and for the purpose of refunding any of its bonds or notes in combination with any other corporate purpose of such authority. The issuance of such refunding bonds or notes, the maturities and other details thereof, the rights of the holders thereof and the rights, duties and obligations of such authority in respect thereof shall be governed by the provisions of this chapter relating to the issuance of bonds and notes generally, to the extent that such provisions may be appropriate therefor.
(b) Refunding bonds or notes issued by any authority may be sold or exchanged for outstanding bonds or notes issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption or payment of such outstanding bonds or notes. Pending the application of the proceeds of any such refunding bonds or notes for any of the purposes provided in this section, such proceeds may be invested in any eligible investments pursuant to an escrow agreement providing for the future application of such proceeds in accordance with such purposes.
*(Acts 1979, No. 79-332, p. 506, §10.)*
##### **§ 11-62-11** Investment in Bonds and Notes by State, Counties, Municipalities, Etc {#sec-11-62-11 omnilex-key=us-al-statutes--title-11--11-62-11}
The notes and bonds of any authority shall be legal investments in which the state and its agencies and instrumentalities, all counties, municipalities, and other political subdivisions of the state and public corporations organized under the laws thereof, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state may properly and legally invest funds in their control or belonging to them.
*(Acts 1979, No. 79-332, p. 506, §11.)*
##### **§ 11-62-12** Establishment and Maintenance of Special Debt Service Reserve Funds, Etc {#sec-11-62-12 omnilex-key=us-al-statutes--title-11--11-62-12}
Any authority may establish and maintain one or more special debt service reserve funds and such other special fund or funds as may be necessary or desirable for its corporate purposes and may pay into each such fund any moneys contributed or granted to such authority for the purpose of such fund by any governmental or public entity or any private party, any proceeds from the sale of bonds or notes to the extent provided in the resolution adopted by the board of such authority authorizing the issuance of such bonds or notes and any other moneys which may be made available to such authority for the purpose of such fund from any other source or sources.
*(Acts 1979, No. 79-332, p. 506, §9.)*
##### **§ 11-62-13** Limitations as to Operation of Facilities - Administration or Management of Facilities by Third Parties Under Employment Arrangements or Management Contracts {#sec-11-62-13 omnilex-key=us-al-statutes--title-11--11-62-13}
(a) The user of any facility acquired, improved, financed, or in any way provided or assisted by any authority pursuant to the provisions of this chapter shall not employ any third party that is not a governmental agency or a not-for-profit organization to administer or manage such facility unless the following conditions with respect to such third party and the employment arrangement or management contract between such user and such third party are satisfied:
(1) Such user shall be completely unrelated to such third party and shall be free from any aspect of control or undue influence by such third party, it being the intention of this chapter that prohibited control or undue influence shall be deemed to arise from circumstances such as the promotion or encouragement of the organization of such user by such third party for the primary purpose of having such user own or lease any facility that is to be managed by such third party, the selection or nomination by such third party of any of the members of the initial or any subsequent governing body of such user or the past or present existence of any substantial business relationship between any member of the governing body of such user and any person who has a substantial economic interest in such third party or who by reason of being a partner, officer, director or stockholder of such third party has any significant influence in the management of its affairs;
(2) Such user shall retain ultimate control of the operation of such facility, including, without limiting the generality of the foregoing, the power to make all significant decisions relating to the financial management of such facility, the power to employ, or to terminate the employment of, the chief administrator of such facility and all other employees holding positions of significant responsibility in the management of such facility and the power to determine all terms and conditions upon which the benefits and services provided by such facility shall be made available to persons needing or desiring to use the same;
(3) The employment arrangement or management contract between such user and such third party shall fix the compensation of such third party on a basis that is reasonably related to the value of the services performed by such third party and that does not transfer to such third party a substantial part of the financial burdens or benefits of the ownership of such facility; and
(4) No management contract between such user and such third party shall have a term greater than three years, including in such term any period for which such contract may be renewed or extended at the option of such third party.
(b) If the relationship between any user and any third party employed to administer or manage any facility complies with the foregoing provisions of this section, then in such case nothing contained in this chapter shall be construed to prohibit the employment of such third party to administer or manage such facility or to mean that such user does not operate such facility for any purpose of this chapter.
*(Acts 1979, No. 79-332, p. 506, §16.)*
##### **§ 11-62-14** Limitations as to Operation of Facilities - Use of Facility for Promotion of Sectarian Purposes, Advancement, or Inhibition of Religious Activities, Etc {#sec-11-62-14 omnilex-key=us-al-statutes--title-11--11-62-14}
The purpose of this chapter is to encourage private not-for-profit organizations, whether or not having any religious affiliation, to satisfy secular needs concerning the housing, care, and treatment of persons requiring special care, which needs, if not so satisfied by such private not-for-profit organizations, would have to be satisfied in some degree by governmental agencies at public expense. No facility acquired, improved, financed, or in any way provided or assisted by any authority pursuant to the provisions of this chapter shall be used by a user to promote any sectarian purpose or to advance or inhibit any religious activity, nor shall any such facility be operated by any user in a manner so pervaded by religious activities that the secular objectives of this chapter cannot be separated from the sectarian interests or purposes of such user to the extent required by the Constitution of Alabama and the First Amendment to the Constitution of the United States of America. Nothing contained in this chapter, however, shall be construed to prohibit any user from providing such facilities and assistance as are necessary to enable the residents at any facility to have such opportunities for religious experience as they may individually desire and be entitled to in accordance with the principles of religious freedom guaranteed by the Constitution of Alabama and the First Amendment to the Constitution of the United States of America.
*(Acts 1979, No. 79-332, p. 506, §15.)*
##### **§ 11-62-15** Disposition of Net Earnings of Authority {#sec-11-62-15 omnilex-key=us-al-statutes--title-11--11-62-15}
Every authority shall be a not-for-profit public corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any private person, except that in the event the board of any authority shall determine that sufficient provision has been made for the full payment of the expenses, bonds, notes, and other obligations of such authority, then any net earnings thereafter accruing shall be paid to the determining municipality.
*(Acts 1979, No. 79-332, p. 506, §19.)*
##### **§ 11-62-16** Loans, Sales, Grants, Etc., of Money, Property, Etc., to Authority by Counties, Municipalities, Public Corporations, Etc {#sec-11-62-16 omnilex-key=us-al-statutes--title-11--11-62-16}
For the purpose of attaining the objectives of this chapter, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state may, upon such terms and with or without consideration, as it may determine, do any or all of the following:
(1) Lend or donate money to any authority or perform services for the benefit thereof;
(2) Donate, sell, convey, transfer, lease, or grant to any authority, without the necessity of authorization at any election of qualified voters, any property of any kind; and
(3) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with any authority in attaining the objectives of this chapter.
*(Acts 1979, No. 79-332, p. 506, §18.)*
##### **§ 11-62-17** Authority and Procedure for Dissolution of Authority; Vesting of Title to Assets and Properties of Authority Upon Dissolution of Authority; Effect of Dissolution of Authority Upon Formation of Other Such Authorities {#sec-11-62-17 omnilex-key=us-al-statutes--title-11--11-62-17}
(a) At any time when any authority does not have any bonds, notes, or other obligations outstanding and when there shall be no other obligations assumed by such authority that are then outstanding, the board of such authority may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved.
(b) Upon the filing for record of a certified copy of said resolution in the office of the judge of probate in which the authority’s certificate of incorporation was filed, the authority shall thereupon stand dissolved and, in the event it owned any assets or property at the time of its dissolution, the title to all such assets or property shall thereupon vest in the determining municipality.
(c) The formation or dissolution of one or more authorities authorized by any determining municipality shall not prevent the subsequent formation of other authorities authorized by the same determining municipality.
*(Acts 1979, No. 79-332, p. 506, §21.)*
##### **§ 11-62-18** Exemptions of Authority - Taxation {#sec-11-62-18 omnilex-key=us-al-statutes--title-11--11-62-18}
(a) Every authority shall exercise its powers in all respects for the benefit of the people of the state, for their well-being and for the improvement of their health and social condition, and the exemptions from taxation hereinafter described are hereby granted in order to promote the more effective and economical exercise of such powers.
(b) No income, excise, or license tax shall be levied upon or collected in the state with respect to any corporate activities of an authority or any of its revenues, income, or profit. No ad valorem tax or assessment for any public improvement shall be levied upon or collected in the state with respect to any property during any time that title to such property is held by an authority, including, without limiting the generality of the foregoing, any time that such property is leased to a user by an authority pursuant to a lease which provides that title to such property shall automatically pass to such user upon expiration of the lease term or which gives such user the right to purchase such property from such authority for a nominal consideration and any time that title to such property is retained by an authority pursuant to a contract of sale with a user which provides that title to such property shall not pass to such user until the purchase price thereof has been paid in full.
(c) No privilege or license taxes payable in respect of the recording or filing for record of any mortgage, deed, or other instrument, including, without limitation, the privilege taxes now imposed by Chapter 22 of Title 40, shall be levied, charged, or collected in connection with the recording or filing for record of any mortgage, deed, or other instrument evidencing a conveyance to or the creation of any property interest in an authority, any agreement or instrument to which an authority is a party, and any mortgage, deed, or other instrument evidencing a conveyance from an authority to another party or the creation by an authority of any property interest in another party.
(d) If, pursuant to any contractual arrangement between an authority and a user, any facility has been or is to be acquired by such authority and leased or sold to such user or has been or is to be financed by a loan from such authority, then in such case the gross proceeds of the sale of any property used in the construction and equipment of such facility, regardless of whether such sale is to such authority, such user or any contractor or agent of either thereof, shall be exempt from the sales tax imposed by Article 1 of Chapter 23 of Title 40 and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any such sale by the state or any county, municipality or other political subdivision or instrumentality of any thereof. Further, if, pursuant to any contractual arrangement between an authority and a user, any facility has been or is to be acquired by such authority and leased or sold to such user or has been or is to be financed by a loan from such authority, then in such case any property used in the construction and equipment of such facility, regardless of whether such property has been purchased by such authority, such user or any contractor or agent of either thereof, shall be exempt from the use tax imposed by Article 2 of Chapter 23 of Title 40 and all other use and similar excise taxes now or hereafter levied on or with respect to any such property by the state or any county, municipality, or other political subdivision or instrumentality of any thereof.
(e) All bonds, notes, or other obligations issued by any authority, their transfer and the income therefrom, including the interest income thereon and any profits made on the sale thereof, shall at all times be free from taxation by the state or any county, municipality, or other political subdivision or instrumentality of the state, excepting inheritance, estate, and gift taxes.
*(Acts 1979, No. 79-332, p. 506, §12.)*
##### **§ 11-62-19** Exemptions of Authority - Usury and Interest Laws {#sec-11-62-19 omnilex-key=us-al-statutes--title-11--11-62-19}
Any authority and all contracts made by it shall be exempt from the laws of the state governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8, as such laws may at any time be amended. Further, any payment payable directly or indirectly by any user pursuant to any lease, installment sale contract, loan agreement, or other contract to which an authority is a party, any payment pursuant to any authorized purpose obligation or any payment pursuant to any other obligation constituting the source of payment for any obligation of an authority which, in any such case under the laws of the state in effect at the time, constitutes interest, or a payment in the nature of interest, shall be exempt from all such laws of the state governing usury or prescribing or limiting interest rates.
*(Acts 1979, No. 79-332, p. 506, §13.)*
##### **§ 11-62-20** Exemptions of Authority - Competitive Bid Laws {#sec-11-62-20 omnilex-key=us-al-statutes--title-11--11-62-20}
Any authority and all contracts made by it shall be exempt from the laws of the state now or hereafter in effect that require competitive bids for any contract to be entered into by municipalities or by public corporations authorized by such municipalities, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1979, No. 79-332, p. 506, §14.)*
##### **§ 11-62-21** Construction of Chapter {#sec-11-62-21 omnilex-key=us-al-statutes--title-11--11-62-21}
This chapter shall be construed liberally to effect its purposes and neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which any authority might otherwise have under any laws of the state, and the provisions of this chapter are cumulative to any such powers.
This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to other laws. However, the issuance of bonds, notes, and other obligations of any authority under the provisions of this chapter need not comply with the requirements of any other law of the state generally applicable to the issuance of bonds, notes, and other obligations by other public corporations organized under the laws of the state.
*(Acts 1979, No. 79-332, p. 506, §17.)*
### **Chapter 63** Financial Assistance for Certain Public Corporations
##### **§ 11-63-1** Definitions {#sec-11-63-1 omnilex-key=us-al-statutes--title-11--11-63-1}
The words and phrases hereinafter defined, wherever used in this chapter, shall be deemed to have the respective meanings ascribed to them in this section.
(1) MUNICIPALITY. An incorporated city or town in the State of Alabama.
(2) RELATED PUBLIC CORPORATION. Such term, when used with respect to a municipality, means and includes each of the following:
a. A public corporation organized pursuant to an Alabama statute that requires all the directors of such corporation to be elected by the governing body of the municipality; or
b. A public corporation organized pursuant to an Alabama statute that requires that at least one-half of the directors of such corporation be elected by the governing body of the municipality and that any directors thereof other than those elected by the governing body of the municipality be appointed by the Governor of Alabama.
(3) SECURITIES. Bonds, warrants, notes, and certificates of indebtedness or any of them.
(4) MUNICIPAL SECURITIES. Securities issued by a municipality pursuant to authorization in this chapter.
(5) CORPORATION SECURITIES. Securities heretofore or hereafter issued by a related public corporation.
(6) MUNICIPAL REVENUES. Such term means and includes any one or more of the items of tax proceeds and other revenues that a municipality is authorized to pledge for its bonds under the provisions of Section 11-81-16.
(7) CODE. The Code of Alabama, 1975.
*(Acts 1979, No. 79-757, p. 1348, §1.)*
##### **§ 11-63-2** Loans, Grants, Etc., of Property, Payment of Principal or Interest on Outstanding Bonds and Securities, Etc., by Municipalities for Assistance of Related Public Corporations Authorized Generally; Issuance of Bonds by Municipalities to Provide Moneys for Loans, Payments, Etc., Generally; Creation of Irrevocable Trust Funds for Payment of Corporate Securities {#sec-11-63-2 omnilex-key=us-al-statutes--title-11--11-63-2}
(a) In addition to all other powers that a municipality may have with respect to a related public corporation, any municipality may, with or without consideration and on such terms as its governing body may deem advisable:
(1) Lend or donate money to, or perform services for the benefit of, a related public corporation;
(2) Donate, convey, transfer, lease, or grant to a related public corporation any property of any kind;
(3) Pay, or provide for the payment of, the principal of or interest on any then outstanding bonds or other securities theretofore issued by a related public corporation, whether or not such principal and interest shall have then matured, and any premium that may be payable upon redemption of any such bonds or other securities that may be called for redemption prior to maturity; provided, however, that nothing herein shall be construed to authorize any municipality to lend its credit or to grant public money or thing of value in aid of or to any individual, association, or corporation in violation of Section 94 of the Constitution of Alabama, as amended.
Any municipality shall have the power to issue securities of the municipality in order to provide moneys to make any loan, donation, or payment provided for in subdivisions (1), (2), and (3) of this subsection.
(b) The municipality shall have the power to provide for payment of such corporation securities by irrevocable trust fund created by agreement between the municipality and a bank or trust company.
*(Acts 1979, No. 79-757, p. 1348, §2.)*
##### **§ 11-63-3** Form, Terms, Denominations, Etc., of Securities Issued by Municipalities Generally; Sale, Execution, Delivery and Refunding Thereof; Security for Payment of Principal and Interest {#sec-11-63-3 omnilex-key=us-al-statutes--title-11--11-63-3}
(a) Any securities issued by a municipality pursuant to authorization in Section 11-63-2 may be either general obligations of the municipality or special obligations of the municipality payable solely from a specified source or sources, which source or sources may include any municipal revenues, or portions thereof, which the municipality may lawfully use for such purpose. Such municipality may pledge for payment of the principal of and interest on any such municipal securities that are general obligations any municipal revenues that may lawfully be used for such purpose and may pledge for the benefit of any such special obligations issued by it so much as may be necessary for said payment of the municipal revenues from which the said special obligations are made payable.
(b) Any such municipal securities shall be in such form or forms and denomination or denominations, may bear such rate or rates of interest payable and evidenced in such manner and may have such maturities of principal all as may be provided by ordinance or resolution adopted by the governing body of the issuing municipality; provided, that (1) any such municipal securities that are payable solely from municipal revenues of the character referred to in subdivision (4) of Section 11-81-16, shall not have a maturity date later than 50 years after their date and (2) any such municipal securities other than those described in clause (1) of this sentence shall not have a maturity date later than 30 years after their date. Any securities issued pursuant to this chapter shall be made subject to redemption prior to maturity to the extent required by the provisions of Chapter 82 of Title 11 and any such securities shall also be subject to, and shall be issued in accordance with, the applicable provisions of Articles 1 and 2 of Chapter 81 of said title, except that the maturities of any securities issued hereunder, the sources of the payment thereof, and the pledges that may be made therefor shall be as herein specifically provided.
*(Acts 1979, No. 79-757, p. 1348, §3.)*
##### **§ 11-63-4** Disposition of Proceeds from Municipal Securities; Limitation as to Aggregate Principal Amount of Securities to Be Issued {#sec-11-63-4 omnilex-key=us-al-statutes--title-11--11-63-4}
(a) The proceeds of any securities issued by a municipality for the purpose referred to in clause (3) of subsection (a) of Section 11-63-2 may be applied for payment of principal, interest, and redemption premium with respect to the corporation securities to be paid from such proceeds and the expenses of issuing such municipal securities.
(b) The aggregate principal amount of any such municipal securities may not exceed the total of (1) the then outstanding principal amount of the corporation securities for payment of which such municipal securities are to be issued, (2) the interest accrued or to accrue to the respective maturities of such corporation securities or, in the case of any of the corporation securities to be called for redemption, whether on the earliest date on which under their terms they may be redeemed or on some later date or dates, the interest, accrued or to accrue, on such corporation securities to the date or dates on which they are to be redeemed, (3) the amount of any redemption premium required, by the terms of any corporation securities to be so redeemed, to be paid as a condition to their redemption prior to their respective maturities and (4) the amount of the expenses of the issuance of such municipal securities.
*(Acts 1979, No. 79-757, p. 1348, §3.)*
### **Chapter 64** Securities Issued in Anticipation of Grants
##### **§ 11-64-1** Definitions {#sec-11-64-1 omnilex-key=us-al-statutes--title-11--11-64-1}
As used in this chapter, the following words and terms shall have the following respective meanings:
(1) CONDITIONS OF A GRANT. The terms and conditions upon which a grant is made by a donor.
(2) DONOR. The United States, or the state, or any county in the state or any municipality or any department, division, board, bureau, institution, or agency of any of the foregoing, or any person, firm, or corporation, institution, foundation or other agency or any combination of any two or more such donors.
(3) GOVERNING BODY. The council, commission, board of directors, or other group or body which governs, controls, or makes decisions for a grantee.
(4) GRANT. Any gift, grant, appropriation, donation, or advance by any donor, whether absolute or conditional, for any purpose.
(5) GRANTEE. Any municipality, or any department, board, bureau, commission, or agency of any municipality, whether incorporated or not, acting on behalf of the municipality, or any public corporation, to which a grant is to be made.
(6) MUNICIPALITY. Any city or town incorporated under the laws of the state.
(7) PUBLIC CORPORATION. Any board, authority, or other municipal public corporation incorporated with the approval of, or more than one of the directors of which are elected or appointed by, the governing body of, a municipality. A city board of education shall be considered a public corporation within the meaning of this chapter.
(8) SECURITIES. One or more bonds, notes, warrants, or certificates of indebtedness of a municipality or public corporation.
(9) STATE. The State of Alabama.
*(Acts 1981, No. 81-798, p. 1403, §1.)*
##### **§ 11-64-2** Power and Authority of Grantees {#sec-11-64-2 omnilex-key=us-al-statutes--title-11--11-64-2}
Each grantee shall have the power, and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To apply to any donor for a grant and to pay the expenses involved in making such application;
(2) To accept and receive grants from any donor;
(3) To expend or apply the proceeds of any grant for the purpose or purposes for which the same is made;
(4) To agree to comply with the conditions of the grant;
(5) To pay over or donate or loan to any board, authority or agency of the grantee, or to any municipality, or to any public corporation, or to any county or counties in the state or to the state, or to any board, bureau, authority, institution, or agency of the grantee, or of such public corporation, or of such county or counties, or of the state or to any person, firm, or corporation, any grant proceeds authorized or permitted to be so paid over, donated or loaned by the conditions of the grant.
*(Acts 1981, No. 81-798, p. 1403, §2.)*
##### **§ 11-64-3** Power and Authority of Municipalities and Public Corporations {#sec-11-64-3 omnilex-key=us-al-statutes--title-11--11-64-3}
Each municipality and each public corporation shall have the power and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To anticipate the receipt of any grant either by loan or by assignment or both; to issue securities to evidence such loan or assignment; to make such securities the general obligation indebtedness of the issuer or the obligation of the issuer limited or restricted as to source of payment and security to all or a portion of the proceeds of the grant or to any revenue, receipts, or income or any special tax or license of the issuer, or any one or more thereof.
(2) To pledge to the holders of any securities issued pursuant to this chapter the full faith and credit of the issuer and in addition to, or instead of such pledge, to pledge and grant a security interest in all or a portion of the proceeds of the grant or any revenue, receipts, or income or any special tax or license of the issuer, or any one or more thereof; or to mortgage or grant a security interest in any property of the issuer as security for any such securities, as the governing body of the issuer may determine.
(3) To pledge, assign, and grant a security interest in all or any part of the proceeds of any grant to the holders of any securities issued by the municipality or the public corporation for any lawful purpose under the authority of any law other than this chapter.
*(Acts 1981, No. 81-798, p. 1403, §3.)*
##### **§ 11-64-4** Securities; Maturity; Total Principal Amount; Denomination and Tenor; Execution; Coupons for Interest {#sec-11-64-4 omnilex-key=us-al-statutes--title-11--11-64-4}
Securities issued under the authority of this chapter shall mature at such time or times as the governing body of the issuer shall determine, not later than the date on which the last installment of the grant is reasonably expected to be received. The total principal amount of securities which may be issued in respect of a grant shall not exceed the reasonably estimated proceeds of the grant. The determination of the governing body of the issuer of the date on which the last installment of the grant will be received and the amounts of the proceeds of any grant to be received shall be conclusive. Securities issued under the authority of this chapter shall be of such denomination and tenor, shall contain such covenants and restrictions and provisions and shall be payable at such place or places, within or without the state, as the governing body of the issuer shall determine. Such securities shall be executed in the name of the issuer by such officer as such governing body shall designate and attested by such other officer thereof as such governing body shall designate, with the seal of the issuer impressed thereon, but coupons for interest, if interest is evidenced by coupons, need be signed only by the officer who executes the securities. Execution by facsimile signature and seal in the manner authorized by law for bonds of a municipality may be authorized by the governing body.
*(Acts 1981, No. 81-798, p. 1403, §4.)*
##### **§ 11-64-5** Exemption of Securities from Taxation {#sec-11-64-5 omnilex-key=us-al-statutes--title-11--11-64-5}
All securities issued by authority of this chapter and the interest thereon shall be exempt from all taxation in the state.
*(Acts 1981, No. 81-798, p. 1403, §5.)*
##### **§ 11-64-6** Investment Status of Securities {#sec-11-64-6 omnilex-key=us-al-statutes--title-11--11-64-6}
Securities issued under the authority of this chapter shall be securities in which the state, the grantee, all counties and political subdivisions of the state, their officers, boards, departments, or agencies and all banks, bankers, trust companies, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies and insurance associations and other persons carrying on an insurance business, all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons who now are or may hereafter be authorized to invest in securities issued by a municipality, may properly and legally invest any funds, including capital belonging to them or within their control.
*(Acts 1981, No. 81-798, p. 1403, §6.)*
##### **§ 11-64-7** Additional Authority; Chapter Not to Repeal, Restrict, or Modify Any Law {#sec-11-64-7 omnilex-key=us-al-statutes--title-11--11-64-7}
This chapter is intended to grant additional authority to grantees, municipalities, and public corporations and shall not be considered to repeal, restrict, or modify any law now in effect or hereafter enacted.
*(Acts 1981, No. 81-798, p. 1403, §7.)*
### **Chapter 65** Horse Racing and Greyhound Racing in Class 1 Municipalities
##### **§ 11-65-1** Legislative Declarations and Findings {#sec-11-65-1 omnilex-key=us-al-statutes--title-11--11-65-1}
The Legislature hereby finds and declares as follows:
(1) As the basis for enacting Act No. 84-131, the Legislature found and determined that the conduct within Class 1 municipalities in the state of horse racing events and pari-mutuel wagering thereon will generate additional revenues for governmental and charitable purposes, provide additional jobs for the residents of the state and benefit the businesses related to tourism and recreation within any such municipality and throughout the surrounding areas of the state; it is desirable to permit the qualified voters of any Class 1 municipality to determine through referendum whether horse racing and pari-mutuel wagering thereon will be permitted in such municipality; and for each Class 1 municipality in which horse racing is approved by the voters thereof, it is necessary and desirable to provide for the establishment of a racing commission to regulate horse racing and pari-mutuel wagering thereon within such municipality and to administer and enforce the provisions of said Act No. 84-131.
(2) In the course of enacting Act No. 84-131, the Legislature added a requirement that horse racing and pari-mutuel wagering thereon in any Class 1 municipality (the “sponsoring municipality”) must be authorized by an election conducted in such municipality and in the county or counties in which such municipality, or any part thereof, is located and that in such election the authorization of horse racing and pari-mutuel wagering thereon must be approved by both (i) a majority of all the voters casting votes in such election and (ii) a majority of the voters casting votes in such election who reside in the sponsoring municipality. Act No. 84-131 provided that the county in which any sponsoring municipality is located would be the “host county”, and in the event that a sponsoring municipality is located in more than one county, the host county would be the county in which the largest number of residents of the sponsoring municipality reside. At the time of the enactment of Act No. 84-131, the City of Birmingham was the only Class 1 municipality in the state and, as of the date of these legislative findings, it continues to be the only Class 1 municipality in the state.
(3) As the result of a favorable election held in the City of Birmingham and Jefferson County in 1984, the Birmingham Racing Commission was incorporated in that year pursuant to Act No. 84-131 for the City of Birmingham. At the time of such election, the City of Birmingham was located solely within the boundaries of Jefferson County, and the authorizing election for horse racing and pari-mutuel wagering thereon was held only in Jefferson County. Subsequent to such election and the incorporation of the Birmingham Racing Commission, the City of Birmingham annexed territory located in a county other than Jefferson County, but no election has ever been held in such county authorizing the Birmingham Racing Commission to license and regulate horse racing and pari-mutuel wagering thereon in that part of the City of Birmingham located in such county, and no provision was made in Act No. 84-131 for holding such an election after the incorporation of the Birmingham Racing Commission. As a consequence of these circumstances, horse racing and pari-mutuel wagering thereon is legal only for that part of the City of Birmingham located in Jefferson County, which is the host county of the city for purposes of Act No. 84-131 because, among the counties in which any part of the city is located, it is the county in which the largest number of the residents of the city reside, as determined by the most recent federal decennial census. Although this chapter and amendments thereto constitute general laws applicable to Class 1 municipalities, as of the date of these legislative findings, this chapter applies only to the City of Birmingham, as the sole Class 1 municipality, and notice of the intention to apply for the enactment of this chapter or amendments thereto must be published in accordance with Section 106 of the Constitution of Alabama, as amended, in the county or counties where the matter or thing to be affected may be situated. As of the date of these legislative findings, the matters or things to be affected by this chapter, as amended, are horse racing and pari-mutuel wagering thereon and greyhound racing and pari-mutuel wagering thereon under the jurisdiction of the Birmingham Racing Commission, which activities, and the elections to authorize the same, shall be confined to the single host county of the Class 1 municipality to which this chapter applies. As of the date of these legislative findings, said host county is the only county in which notice of the intention to apply for enactment of amendments to this chapter is required to be published in accordance with Section 106 of the Constitution of Alabama.
(4) Pursuant to Act No. 84-131, the Birmingham Racing Commission issued an owner’s license for the ownership of a horse racing facility located in both the City of Birmingham and Jefferson County, and an operator’s license to conduct horse racing and pari-mutuel wagering thereon at such racing facility. The holders of such licenses, together with related business entities, made a capital investment of more than $60,000,000 in order to provide a facility for horse racing, and the City of Birmingham and other local governmental entities additionally expended more than $10,000,000 to provide roads, sewers, and other public improvements necessary for the use of such facility.
(5) Although Act No. 84-131, as initially enacted, provided that a commission could grant an owner’s or operator’s license for horse racing only to an entity which was entirely owned, either directly or indirectly, by natural persons who had been residents of the state for a period of five years next preceding the date of application for such licenses, the Legislature in 1987, the first year that horse racing was conducted under licenses from the Birmingham Racing Commission, enacted Act No. 87-615 to liberalize the Alabama residence requirements and thereby permit the horse racing licensees to obtain additional investment capital from out-of-state sources. The economic failure of horse racing in the City of Birmingham, together with the consequent need of the horse racing licensees for additional capital, became readily apparent soon after the commencement of horse racing. The enactment of Act No. 87-615 constituted a remedial response of the Legislature to that problem.
(6) The horse racing licensees of the Birmingham Racing Commission were unsuccessful in their efforts to obtain additional financing in the needed amount, and, after reporting operating losses of more than $16,000,000 in 1987, these licensees were unable to continue horse racing in 1988. On August 29, 1988, the horse racing licensees filed petitions for relief under the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Alabama (the “bankruptcy court”), which court, as of the date of these legislative findings, retains jurisdiction over their affairs.
(7) Despite the effort of the Birmingham Racing Commission to revoke the operator’s license for horse racing originally granted by that commission, the bankruptcy court has determined such license to be property of the bankruptcy estate of the horse racing licensees and has enjoined the revocation of such license. In 1989, the bankruptcy court approved a plan of reorganization which provided for the management of the Birmingham racing facility by a company having national experience in the management of pari-mutuel racing facilities and for the funding by such company of operating expenses necessary to conduct horse racing. As part of the plan of such reorganization and pursuant to order by the bankruptcy court, the Birmingham Racing Commission permitted such company to conduct horse racing through an arrangement making use of the original horse racing licenses granted by the commission. Horse racing was conducted in Birmingham during 1989 and 1990 pursuant to the aforesaid plan of reorganization, but the management company has reported that its efforts to continue horse racing under that plan have resulted in losses of more than $6,500,000. As a consequence of such losses and the demonstrated lack of financial viability for horse racing in Birmingham, said management company has declined to make additional payments under the plan of reorganization, thereby allowing the banks that hold the first mortgage on the racing facility to foreclose such mortgage and to terminate further operation under the plan of reorganization.
(8) As a consequence of the original plan of reorganization being no longer viable, the horse racing licensees of the Birmingham Racing Commission have filed with the bankruptcy court, and the bankruptcy court has confirmed, a modified plan of reorganization which is based on the premise that horse racing alone cannot be conducted with economic success at the Birmingham racing facility and that the relatively lower operating costs of greyhound racing, together with the greater interest of the public in pari-mutuel wagering on greyhound racing, will enable the Birmingham racing facility to be reopened and successfully operated as a greyhound racing facility. The implementation of the modified plan is subject to the condition, among others, that all actions will be successfully completed that are necessary for greyhound racing and pari-mutuel wagering thereon to become lawful under the jurisdiction of the Birmingham Racing Commission, including (i) the enactment into law of authorizing legislation and (ii) the approval of greyhound racing and pari-mutuel wagering thereon by the voters in any referendum required by such legislation. In anticipation of legislative authorization to license and regulate greyhound racing and as a consequence of the outstanding horse racing licenses being subject to the jurisdiction of the bankruptcy court, the Birmingham Racing Commission has entered into an agreement with the participants in the modified plan of reorganization to issue licenses for both horse racing and greyhound racing to the company which, under the modified plan of reorganization, will have the right to conduct both horse racing and greyhound racing and pari-mutuel wagering thereon at the Birmingham racing facility, subject, however, to the conditions that (i) the award to such company of a license to conduct greyhound racing and pari-mutuel wagering thereon shall comply with all conditions prescribed by the authorizing legislation and (ii) the agreement to award such license shall be enforceable only if and to the extent that the Legislature, in the authorizing legislation, shall have retroactively authorized the Birmingham Racing Commission to enter into such agreement.
(9) Gambling in general and the promotion thereof are prohibited in the state by provisions of the Alabama Criminal Code, Article 2, Chapter 12, Title 13A, but the Legislature has reserved in Section 13A-12-31 the right to enact local statutes, or general statutes applying to one or more municipalities in a class less than the whole of the state, that exempt pari-mutuel wagering at race meetings from the general prohibition of the Alabama Criminal Code. Pursuant to such localized legislative authority, the Legislature has for the last 20 years pursued a policy of enacting legislation to authorize greyhound racing and pari-mutuel wagering thereon only in (i) an area with substantial tourist appeal (Mobile County) where greyhound racing was available nearby as a competing attraction in another state and (ii) poor rural counties with high unemployment where greyhound racing would provide economic stimulus and needed tax revenues. Moreover, recognizing that pari-mutuel wagering at race meetings is a regulated business which can succeed financially and recover the substantial capital investment required therefor only if protected from geographically proximate competition, the Legislature has heretofore enacted legislation authorizing pari-mutuel wagering at facilities located only in widely separated areas of the state.
(10) The Legislature has heretofore authorized horse racing and pari-mutuel wagering thereon only in a Class 1 municipality because the size and cost of horse racing facilities, the magnitude of public attendance required for the successful operation of such facilities, and the scope of public improvements and accommodations necessary to serve such facilities could best be provided by a Class 1 municipality and its surrounding area. The Legislature has heretofore been reluctant to authorize greyhound racing and pari-mutuel wagering thereon for Class 1 municipalities because it was believed that such activities would produce relatively greater economic benefit if reserved for other areas of the state that needed the particular kind of economic stimulus provided thereby.
(11) On the basis of the experience of the Birmingham Racing Commission and its horse racing licensees with the continuing economic failure of horse racing, the Legislature now finds and determines that greyhound racing and pari-mutuel wagering thereon, as a separate activity or in conjunction with horse racing and pari-mutuel wagering thereon at the same racing facilities, must be made available to Class 1 municipalities if the economic objectives and public purposes of Act No. 84-131, as stated in the original legislative declarations and findings therefor, are to be realized. There is ample evidence and experience to support the conclusion that the lower purse structure and other operating costs of greyhound racing, the opportunity to schedule more racing events during a daily performance, and the greater interest and participation of that portion of the general public inclined to engage in pari-mutuel wagering, together with other differences related to the nature and amount of wagering, will promise greater economic success for greyhound racing in Class 1 municipalities than the City of Birmingham has heretofore been able to achieve with horse racing alone.
(12) It is therefore necessary and desirable, and in the best interest of the state and the people resident in Class 1 municipalities and the host county of each thereof, that commissions organized under this chapter be given the additional power to license and regulate greyhound racing and pari-mutuel wagering thereon for the purpose of enabling the Birmingham Racing Commission to participate fully in the implementation of the modified plan of reorganization that is pending before the bankruptcy court as of the date of these legislative findings and for the further purpose of enabling the City of Birmingham and any other Class 1 municipality to succeed in future efforts to stimulate economic development and generate additional public revenues through pari-mutuel wagering on greyhound racing or horse racing or both. In view of the contribution made by existing greyhound racing operations to the economic well-being of Greene County and Macon County and the importance of these operations as a source of employment for the people of these counties as well as tax revenues for the support of education and other vital public functions, the Legislature deems it desirable to protect the continued viability of greyhound racing in these counties by permitting greyhound racing and pari-mutuel wagering thereon in Class 1 municipalities only on the condition that an operator’s license for greyhound racing issued pursuant to this chapter shall restrict advertising by such operator in certain counties from which patrons of the existing greyhound racing operations in Greene County and Macon County are drawn.
(13) It is further necessary and desirable to modify certain provisions of this chapter to assure that both horse racing and greyhound racing, together with pari-mutuel wagering on such activities, shall be licensed, conducted, and regulated in a manner that will not allow communication and other technological changes, together with market developments in the pari-mutuel wagering industry, to be implemented beyond the specific intentions of this chapter, as amended, without additional legislative authorization. In particular, it is important for this chapter, as amended, to provide in express terms, and to be strictly construed as so providing, that so-called “off track betting” or wagering of any kind on any racing event conducted at a racing facility licensed under this chapter, or televised to such racing facility from any other location, shall not be permitted at any location in the state other than a racing facility with a track for conducting live horse racing or greyhound racing that is licensed under the provisions of this chapter. It is further important that the exemption of racing commissions organized under this chapter from the jurisdiction of a state racing commission, as originally provided in this chapter, be repealed in order that the state may have the opportunity to consider and enact legislation that might bring the licensing and regulation of horse racing or greyhound racing and pari-mutuel wagering thereon under the jurisdiction of a state racing commission.
(14) It is further necessary and desirable (i) to permit the qualified voters of the host county of any Class 1 municipality and the qualified voters of such municipality who reside in the host county to determine by an election whether a commission shall be incorporated for such municipality and whether pari-mutuel wagering on horse racing or greyhound racing or both shall be authorized in such municipality, and (ii) in the case of any Class 1 municipality for which the incorporation of a commission and pari-mutuel wagering on either horse racing or greyhound racing, but not both, has been previously approved by an election of the qualified voters of such municipality and the host county, to permit such voters to determine whether the additional activity of pari-mutuel wagering on horse racing or greyhound racing, as the case may be, shall be authorized in that part of such municipality located in the host county.
*(Acts 1984, No. 84-131, p. 159, §1; Acts 1991, No. 91-187, p. 246, §1.)*
##### **§ 11-65-2** Definitions {#sec-11-65-2 omnilex-key=us-al-statutes--title-11--11-65-2}
(a) The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, unless the context clearly indicates otherwise, have the following respective meanings:
(1) ALABAMA-BRED. When this term is used with reference to a horse, it means a horse which is registered in the registry designated and administered by a commission in accordance with such rules concerning domicile and registration requirements as may be established by such commission and which is either (i) foaled from a mare domiciled in the state during the 10-year period beginning with January 1, 1991, or (ii) sired by an Alabama stallion and foaled from a mare domiciled in the state at any time after the expiration of such 10-year period.
(2) ALABAMA STALLION. A stallion which is standing in the state at the time he is bred to the dam of an Alabama-bred horse, which is registered with a commission, and which is owned or leased by a resident of the state. For purposes of this definition, the commission with which any Alabama stallion may be registered shall have the power to prescribe rules and regulations governing the qualifications of residence in the state for the owner or lessor of such stallion and the manner by which such qualifications shall be confirmed to the commission.
(3) BREAKAGE. The odd cents by which the amount payable on each dollar wagered exceeds a multiple of 10 cents.
(4) BREEDER. The owner of a mare at the time such mare gives birth to an Alabama-bred foal.
(5) BREEDING FUND. A special fund established by a commission pursuant to the provisions of Section 11-65-34 and any applicable rules and regulations of such commission for the purpose of promoting the breeding, raising, and racing of horses in the state.
(6) BREEDING FUND FEE. A fee payable to a commission by a horse racing operator pursuant to Section 11-65-34 for deposit into the breeding fund established by such commission.
(7) COMMISSION. Any public corporation organized pursuant to the provisions of this chapter.
(8) COMMISSION GREYHOUND WAGERING FEE. The license fee payable to a commission by a greyhound racing operator for a particular calendar year, the amount and payment schedule of which are to be determined in accordance with the provisions of Section 11-65-30.
(9) COMMISSION HORSE WAGERING FEE. The license fee payable to a commission by a horse racing operator for a particular calendar year, the amount and payment schedule of which are to be determined in accordance with the provisions of Section 11-65-30.
(10) COMMISSION MUNICIPAL JURISDICTION. The territory of a sponsoring municipality that is located within the boundaries of the host county.
(11) DISQUALIFIED PERSON. Any of the following shall constitute disqualified persons:
a. Any person who has ever been found guilty in a court of competent jurisdiction of any corrupt or fraudulent act, practice, or conduct in connection with horse or dog racing or any activity involving legal gambling in any state of the United States of America or any other country, or any person who has ever had a license or permit to participate in horse or dog racing or in any activity involving legal gambling denied for just cause, suspended, or revoked in any state of the United States of America or in any other country; or
b. Any person who has ever been found guilty in a court of competent jurisdiction of a felony involving moral turpitude, or who has ever been the subject of injunctive or disciplinary action by any federal or state court or regulatory body charged with protecting the public against fraudulent or illegal conduct; or
c. Any person who has ever been indicted by three separate grand juries for any felony or misdemeanor involving moral turpitude, even though such indictments did not result in a conviction; or
d. Any person who has ever been made a principal subject, either singly or in conjunction with others, of investigations by either federal or state law enforcement agencies into activities that violate federal or state laws against criminal conspiracy, racketeering, illegal gambling, and other activities associated with organized crime, provided that no person shall be deemed to be a disqualified person because of any such investigations unless they have involved at least three geographically distinct or factually different instances of illegal conduct, or unless they provide convincing grounds, based upon the seriousness and number of alleged offenses, for believing that the person in question has been actively and systematically involved in organized crime and racketeering with one or more persons previously indicted for or convicted of crimes involving moral turpitude; or
e. Any person if a commission determines that, for any reason, it is not in the best interests of the people of the state, the host county, or the sponsoring municipality for such person to own an interest in a horse racing facility licensee or an operator, or any person if the circuit court of the host county determines, pursuant to a proceeding instituted by the district attorney of the host county under the provisions of Section 11-65-22, that, for any reason, it is not in the best interests of the people of the state, the host county or the sponsoring municipality for such person to own an interest in a horse racing facility licensee or an operator, provided that any such determination, whether made by the commission or the circuit court, is made pursuant to a hearing of the commission or circuit court, as the case may be, of which such person has notice and an opportunity to be heard; or
f. Any person who owns, directly or indirectly, or holds five percent or more of
1. The combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation, or
2. The capital interest or the profits interest of a partnership, or
3. The beneficial interest of a trust, estate, or other unincorporated entity,
if such corporation, partnership, trust, estate, or unincorporated entity, as the case may be, is a person described in any of the foregoing subparagraphs a through e, inclusive; or
g. The brother or sister, niece or nephew, spouse, ancestor, lineal descendent, or any spouse or former spouse of any person described in the foregoing subparagraphs a through f, inclusive; or
h. A corporation, partnership, trust, estate, or other unincorporated entity of which (or in which) five percent or more of
1. The combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation, or
2. The capital interest or profits interest of such partnership, or
3. The beneficial interest of such trust, estate or other unincorporated entity is owned, directly or indirectly, or held by one or more persons described in any of the foregoing subparagraphs a through g, inclusive; or
i. Any person who owns, directly or indirectly, or holds five percent or more of
1. The combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of any corporation that is described in any of the foregoing subparagraphs a through h, inclusive, or
2. The capital interest or profits interest of any partnership that is described in any of the foregoing subparagraphs a through h, inclusive, or
3. The beneficial interest of any trust, estate or other unincorporated entity that is described in any of the foregoing subparagraphs a through h, inclusive; or
j. An officer or director (or an individual having powers or responsibilities similar to those of officers or directors), a general or managing partner, an individual acting as executor, administrator or trustee, or a highly compensated employee, professional advisor, or consultant (in any case earning five percent or more of the aggregate yearly wages or other compensation paid by an employer for professional services), of any person described in any of the foregoing subparagraphs a through i, inclusive; or
k. Any person who owns, directly or indirectly, or holds an interest of five percent or more of the capital or profits in any partnership or joint venture of which any person described in any of the foregoing subparagraphs a through j, inclusive, also has an interest of five percent or more of the capital or profits in such partnership or joint venture.
For purposes of subparagraphs f1, h1 and i1, the ownership of stock, membership interests, and voting power or rights shall be determined in accordance with the rules for constructive ownership of stock under Section 267(c) of the Internal Revenue Code of 1986, as amended from time to time and successor provisions thereof, except that, for purposes of this paragraph, Section 267(c)(4) of the Internal Revenue Code of 1986 shall be treated as providing that the members of the family of an individual are the members listed in subparagraph g.
For purposes of subparagraphs f2 and f3, h2 and h3, and i2 and i3, and k the ownership of profits or beneficial interest shall be determined in accordance with the rules for constructive ownership of stock provided in Section 267(c) of the Internal Revenue Code of 1986, as amended from time to time and successor provisions thereof (other than Section 267(c)(3)), except that Section 267(c)(4) shall be treated as providing that the members of the family of an individual are the members listed in subparagraph g.
No person shall be deemed to be a disqualified person hereunder unless he is given notice of the determination that he is a disqualified person, together with the reasons therefor, and, upon request filed within ten days of such notice, is granted a hearing before the commission or the circuit court making such determination, is permitted to examine the evidence upon which such determination is based, is permitted to cross-examine any witnesses relied upon in such determination, and is permitted to testify in his own behalf and to present witnesses and other evidence on his behalf in public or closed session, as may be requested by such person. Any determination by a commission shall be subject to appeal as provided in Section 11-65-12 on the record of such hearing.
(12) GREYHOUND RACING HANDLE. When used with reference to any specified period of time, this term means the total amount of all wagers received by a greyhound racing operator for all pari-mutuel pools originated during such period of time with respect to wagering on greyhound racing at the location where such operator is licensed by the commission to conduct greyhound racing (including wagering on greyhound racing events televised to such licensed location from elsewhere).
(13) GREYHOUND RACING OPERATOR. Any corporation, partnership, or other business entity licensed by a commission to conduct greyhound racing and pari-mutuel wagering thereon in accordance with the provisions of this chapter.
(14) HORSE RACING FACILITY LICENSE. A license issued by a commission to own or lease a horse racing facility, or to have and enjoy the use thereof, which is recognized by the commission as effective with respect to a horse racing facility licensee, whether as the result of the original issuance of such license to the licensee, the assignment to the licensee of such license or all or part of any interest therein, or any other legal arrangement providing for the use and enjoyment of such license by the licensee.
(15) HORSE RACING FACILITY LICENSEE. Any person which, through direct issuance by a commission or other legal arrangements accepted or sanctioned by the commission, possesses a horse racing facility license for its use and benefit.
(16) HORSE RACING HANDLE. When used with reference to any specified period of time, this term means the total amount of all wagers received by a horse racing operator for all pari-mutuel pools originated during such period of time with respect to wagering on horse racing at the location where such operator is licensed by the commission to conduct horse racing (including wagering on horse racing events televised to such licensed location from elsewhere).
(17) HORSE RACING OPERATOR. Any corporation, partnership, or other business entity licensed by a commission to conduct horse racing and pari-mutuel wagering thereon in accordance with the provisions of this chapter.
(18) HOST COUNTY. Any county in which a sponsoring municipality is located. With respect to a sponsoring municipality located in more than one county, this term means the county in which a majority of the residents of the sponsoring municipality reside, as determined by the most recent federal decennial census.
(19) HOST COUNTY HOUSE DELEGATION. With respect to a host county, the members of the House of Representatives of the Legislature of Alabama from those representative districts in which all or a majority of the residents of such district reside in the host county, as determined by the most recent federal decennial census.
(20) HOST COUNTY SENATE DELEGATION. With respect to a host county, the members of the Senate of the Legislature of Alabama from those senatorial districts in which all or a majority of the residents of such district reside in the host county, as determined by the most recent federal decennial census.
(21) MEMBER. A member of a commission.
(22) NET COMMISSION REVENUES. All fees (other than breeding fund fees), commissions and other moneys received by a commission and remaining after the payment of all expenses incurred in the administration of this chapter. This term does not include any state horse wagering fees or state dog racing privilege taxes, which are required to be paid directly to the state by the operator liable therefor.
(23) OPERATOR. As may in the context be appropriate, this term means a horse racing operator or a greyhound racing operator.
(24) PERSON. Any natural person, corporation, partnership, joint venture, trust, government or governmental body, political subdivision, or other legal entity as in the context may be possible or appropriate.
(25) RACING DAY. Whether used with reference to horse racing or greyhound racing, this term means a period which begins at 8:00 o’clock, A.M. on any calendar day (including Saturdays) except any Sunday, Thanksgiving Day or Christmas Day and which continues until 2:00 o’clock, A.M. on the next succeeding calendar day.
(26) RACING FACILITY or RACETRACK FACILITY. When used with respect to any facility located in the state, these terms, and any similar thereto, mean a racetrack at which live horse racing or greyhound racing can be conducted for direct viewing by spectators, together with the viewing stands, pari-mutuel wagering facilities, restaurants, and other physical facilities and improvements that together constitute such racing facility or racetrack facility. Under no circumstances shall the terms racing facility or racetrack facility, or any similar thereto, be construed to refer to any public or private place of assembly or accommodation of any kind (other than a racetrack facility where live horse racing or greyhound racing can be conducted) where so-called “off-track betting” could be conducted.
(27) SPONSORING MUNICIPALITY. Any municipality for which a commission shall be created in accordance with the provisions of this chapter.
(28) STALLION OWNER. The owner of a stallion standing in the state at the time he was bred to the dam of an Alabama-bred horse.
(29) STATE. The State of Alabama.
(30) STATE DOG RACING PRIVILEGE TAX. The privilege tax levied by the state pursuant to Chapter 26A, Title 40, on every person engaged in the business of operating a dog racing track.
(31) STATE RACING COMMISSION. Any department, agency, or instrumentality of the state, whether or not constituting a corporate entity separate from the state, that may at any time, whether before or after April 5, 1984, be created, organized or established for the purpose, among other purposes, of licensing, regulating or supervising horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon.
(32) STATE HORSE WAGERING FEE. The license fee payable to the state by a horse racing operator, the amount and payment schedule of which are to be determined in accordance with the provisions of Section 11-65-29 hereof.
(b) The words “herein,” “hereby,” “hereunder,” “hereof,” and other equivalent words refer to this chapter as an entirety and not solely to the particular section or portion thereof in which any such word is used. The definitions set forth herein shall be deemed applicable whether the words defined are used in the singular or plural. Whenever used herein any pronoun or pronouns shall be deemed to include both singular and plural and to cover all genders.
*(Acts 1984, No. 84-131, p. 159, §2; Acts 1987, No. 87-615, p. 1069, §1; Acts 1991, No. 91-187, p. 246, §2.)*
##### **§ 11-65-3** Class 1 Municipality Authorized to Create Racing Commission; Status of Commission; Powers and Duties Generally; Disposition of Fees; Jurisdiction of State Ethics Commission {#sec-11-65-3 omnilex-key=us-al-statutes--title-11--11-65-3}
A commission is authorized to be created in accordance with the provisions of this chapter for each Class 1 municipality, as Class 1 municipality is defined in Section 11-40-12 or any successor provision of law. Any commission created for any sponsoring municipality pursuant to the provisions of this chapter shall be named “The ______ (the name of the sponsoring municipality shall be inserted in the blank) Racing Commission” and shall be a public corporation having a legal existence separate and apart from the state and any county, municipality, or political subdivision thereof. A commission shall be vested with the powers and duties specified in this chapter and all other powers necessary and proper to enable it to execute fully and effectively the purposes of this chapter. Anything contained in this chapter to the contrary notwithstanding, no commission shall have any legal authority to license and regulate any racing and wagering activity at facilities located in any part of the sponsoring municipality outside the host county or in any part of the host county outside the sponsoring municipality. Any commission that was authorized by an election held in the sponsoring municipality and the host county prior to April 16, 1991, pursuant to then effective provisions of this chapter and that was validly incorporated pursuant to such authorization shall continue in existence with full powers under this chapter, and the members of such commission shall continue in office for the current terms for which they were respectively appointed or serve ex officio, without further action being required under the provisions of this chapter, as amended subsequently to the date of the incorporation of such commission or the respective beginning dates of such members’ current terms of office.
Notwithstanding any provisions hereof which connect the state with the creation and control of a commission, any commission incorporated pursuant to the provisions of this chapter shall not be deemed to be part of the state for any purpose, but shall be treated as a public corporation and body politic separate and apart from the state. Except for the state horse wagering fee and the state dog racing privilege tax, all taxes, fees, commissions, and other moneys which a commission shall be authorized by this chapter to charge, levy, or receive or which shall be levied upon or charged for the privilege of conducting horse racing, greyhound racing, or pari-mutuel wagering thereon shall be deemed to be moneys belonging exclusively to such commission, and no allocation or payment of such moneys authorized or mandated by this chapter shall be considered to be an appropriation of moneys belonging to or controlled by the state, the host county, or the sponsoring municipality.
Notwithstanding any provisions hereof which connect a commission with its sponsoring municipality, the host county or any other county or municipality [including, without limitation thereto, the provisions of Section 11-65-4 hereof regarding an election in the host county and the part of the sponsoring municipality located therein to approve the incorporation of a commission and the provisions of Section 11-65-5 hereof providing for (1) the mayor or other chief executive officer of the sponsoring municipality to serve ex officio as one member of a commission or, in lieu of such ex officio service, to appoint a member of such commission and (2) the president or other designated presiding officer of the county commission of the host county to serve ex officio as one member of a commission or, in lieu of such ex officio service, to appoint a member of such commission], any commission incorporated pursuant to the provisions of this chapter shall not be deemed to be a local agency or instrumentality of the sponsoring municipality or the host county, but shall be treated as a public corporation and body politic having rights, powers, and duties which, to the extent herein specified, shall be effective without reference to the rights, powers, duties, and territories of the sponsoring municipality and the host county.
Any racing commission incorporated pursuant to the provisions of this chapter shall be subject to the jurisdiction of the State Ethics Commission and to the provisions of Chapter 25, Title 36, and the members of such racing commission shall be deemed public officials subject to the provisions of said Chapter 25. Any officer or employee of a racing commission shall be deemed a public employee for purposes of said Chapter 25 as and to the extent provided in said Chapter 25.
*(Acts 1984, No. 84-131, p. 159, §3; Acts 1991, No. 91-187, p. 246, §3.)*
##### **§ 11-65-4** Elections Required to Approve Incorporation of Commission and Conduct of Racing and Pari-Mutuel Wagering Thereon {#sec-11-65-4 omnilex-key=us-al-statutes--title-11--11-65-4}
(a) No commission shall be incorporated for a Class 1 municipality and no horse racing or greyhound racing or pari-mutuel wagering thereon shall be permitted in such municipality pursuant to this chapter unless the incorporation of such commission, together with the conduct of horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon or both such activities, shall have been authorized by an election held in the host county in which such incorporation and such racing and wagering activities shall have been approved by both (i) a majority of the votes cast in such election by voters who reside in the host county (including those voters who reside in the sponsoring municipality) and (ii) a majority of the votes cast in such election by voters who reside in the commission municipal jurisdiction. In order to authorize the holding of the required election in the host county, the governing body of any Class 1 municipality desiring to be the sponsoring municipality of a commission may adopt an ordinance or resolution requesting the county commission of the host county to call an election to be held in the host county on the question of incorporating a commission, and in such ordinance or resolution the governing body of the sponsoring municipality shall determine the date of such election, which shall not be less than 45 days nor more than 90 days after the date of the adoption of such ordinance or resolution, and shall further determine which of the following alternatives shall be authorized in the commission municipal jurisdiction by such election: (1) horse racing and pari-mutuel wagering thereon; (2) greyhound racing and pari-mutuel wagering thereon; or (3) both horse racing and greyhound racing with pari-mutuel wagering on both racing activities. Depending on the alternative selected by the governing body of the sponsoring municipality, the question to be presented to the voters shall be stated on the ballots or voting machine tags substantially as follows:
“Do you favor the creation of a racing commission for the City of ___________ [insert the name of the sponsoring municipality] and the authorization of [insert here one of the following alternatives selected by the governing body of the sponsoring municipality in the ordinance or resolution calling the election] “horse racing and pari-mutuel wagering thereon”or“greyhound racing and pari-mutuel wagering thereon”or“both horse racing and greyhound racing, with pari-mutel wagering on both such racing activities,”in that part of said city located in __________ [insert the name of the host county], as provided in Chapter 65, Title 11?”
Yes ________No _________
The sponsoring municipality shall promptly furnish a certified copy of the ordinance or resolution calling such election to the county commission of the host county, whereupon such county commission shall be required to call an election in the host county to be held on the question and on the date specified in such ordinance or resolution. The election so called shall be held only among the qualified voters of the host county, and no voters of the sponsoring municipality who reside in counties other than the host county shall be permitted to vote in such election. If the majority of the votes cast in such election are “Yes”, and if the majority of the votes cast in such election by voters who are residents of the commission municipal jurisdiction are “Yes”, then this chapter shall become operative with respect to such municipality, a commission may be incorporated therefor, and the racing and wagering activities authorized by such election shall be legal in the commission municipal jurisdiction, as and to the extent conducted in accordance with the provisions of this chapter, but such activities shall continue to be illegal in those parts of the sponsoring municipality outside such jurisdiction. If the majority of the votes cast in such election are “No”, or if the majority of the votes cast in such election by voters who are residents of the commission municipal jurisdiction are “No”, then this chapter shall have no further effect with respect to such municipality, unless the governing body thereof should later request the county commission of the host county to call another election subject to the provisions of subsection (d).
(b) In any case where an election has been previously held for a sponsoring municipality and the host county thereof in accordance with the then effective provisions of this chapter that authorized either horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon, but not both such racing activities, and a commission has been incorporated for such municipality and is in operation, the racing and wagering activity not authorized by such previous election shall not be permitted in such municipality pursuant to this chapter unless the same shall have been authorized by another election held in the host county in which such activity shall have been approved by both (i) a majority of the votes cast in such election by voters who reside in the host county (including those voters who reside in the sponsoring municipality) and (ii) a majority of the votes cast in such election by voters who reside in the commission municipal jurisdiction. In order to authorize the holding of the required election in the host county, the governing body of the sponsoring municipality may adopt an ordinance or resolution requesting the county commission of the host county to call an election to be held on the question of authorizing any racing and wagering activity covered by this chapter that has not theretofore been authorized by an election, and in such ordinance or resolution the governing body of the sponsoring municipality shall determine the date of such election, which shall not be less than 45 days nor more than 90 days after the date of the adoption of such ordinance or resolution, and shall further specify the racing and wagering activity, whether horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon, that is to be authorized by such election; provided, however, that, anything contained in this chapter to the contrary notwithstanding, in the case of any Class 1 municipality for which horse racing and pari-mutuel wagering thereon has been authorized by an election held prior to April 16, 1991, the governing body of such municipality is hereby mandated to request the county commission of the host county call an election before January 1, 1992, in accordance with the provisions of this section for purpose of determining whether greyhound racing and pari-mutuel wagering thereon shall be permitted in the commission municipal jurisdiction. Depending on which racing and wagering activity is to be authorized by the election, the question to be voted on shall be stated on the ballots or voting machine tags substantially as follows:
“Do you favor the authorization of [insert here one of the following alternatives specified by the governing body of the sponsoring municipality in the ordinance or resolution calling the election]
“horse racing and pari-mutuel wagering thereon”or“greyhound racing and pari-mutuel wagering thereon”in that part of the City of _____________ [insert the name of the sponsoring municipality] located in ______________ [ insert the name of the host county], as provided in Chapter 65, Title 11?”
Yes _______No ________The sponsoring municipality shall promptly furnish a certified copy of the ordinance or resolution calling such election to the county commission of the host county, whereupon such county commission shall be required to call an election in the host county to be held on the question and on the date specified in such ordinance or resolution. The election so called shall be held only among the qualified voters of the host county, and no voters of the sponsoring municipality who reside in counties other than the host county shall be permitted to vote in such election. If the majority of the votes cast in such election are “Yes”, and if the majority of the votes cast in such election by voters who are residents of the commission municipal jurisdiction are “Yes”, then the racing and wagering activity authorized by such election, in addition to the racing and wagering activity previously authorized to be conducted in the commission municipal jurisdiction, shall be legal in such jurisdiction, as and to the extent conducted in accordance with the provisions of this chapter, but such activity shall continue to be illegal in those parts of the sponsoring municipality outside such jurisdiction. If the majority of the votes cast in such election are “No”, or if the majority of the votes cast in such election by voters who are residents of the commission municipal jurisdiction are “No”, then the racing and wagering activity that was the subject of such election shall not be legal in the commission municipal jurisdiction, unless the governing body of the sponsoring municipality should later call another election subject to the provisions of subsection (d); provided, however, that the disapproval by the voters in any election of any additional racing and wagering activity to be conducted in the commission municipal jurisdiction shall not revoke or impair any previous authorization for other racing and wagering activity, which authorization shall continue in full force and effect.
(c) The appropriate election officials of the sponsoring municipality and the host county are hereby directed to cooperate in calling and conducting any election held pursuant to the provisions of subsection (a) or (b) and in canvassing and declaring the results of such election. Any election called by the sponsoring municipality shall not be held on the date the sponsoring municipality holds an election for its mayor or for two or more members of its governing body. Any such election shall be called, advertised, conducted, and the results thereof canvassed and declared in the manner provided by law for calling, advertising, conducting, and canvassing other county elections on propositions submitted to the voters of the host county and as the governing body of the host county shall provide in the resolution calling such election; provided, however, that, notwithstanding any statute which requires, or might be interpreted to require, notice of such election in the sponsoring municipality to be published more than 30 days before such election, it is hereby expressly provided that the publication of notice of an election at least 30 days prior thereto prescribed by Section 17-7-5 for county elections shall also apply to the publication of notice of such election in the sponsoring municipality. The election officials of the sponsoring municipality and the host county are hereby directed to cooperate in preparing voter lists and establishing polling places that will enable the results of such election in the commission municipal jurisdiction to be separately determined from the results of such election in the host county as a whole. The costs of conducting any election pursuant to the provisions of subsection (a) or (b) shall be equitably apportioned between the sponsoring municipality and the host county according to agreement among the respective election officials of each such political subdivision or according to such other statutes as may at the time be applicable to the division of such election costs between the sponsoring municipality and the host county. In the event that the election officials of the sponsoring municipality and the host county cannot agree on a division of election costs and no other statute governs the division of such costs, such costs shall be divided equally among the sponsoring municipality and the host county. The results of any election conducted pursuant to this chapter shall be certified to the Secretary of State, within 30 days after the election returns are canvassed, by the officer then authorized by law to certify proceedings taken by the election commission, board of canvassers, or other body then required by law to canvass and declare the results of elections held in the host county.
(d) One or more subsequent elections may be requested by the governing body of a Class 1 municipality to be called by the county commission of the host county if the question submitted at the preceding election called pursuant to subsection (a) or (b) does not receive the required majority of the votes cast by voters of both the host county and the commission municipal jurisdiction; provided, however, that not more than one election in each calendar year may be requested to be called pursuant to said subsection (a) or (b) by the governing body of any Class 1 municipality. Any such subsequent election shall be called, advertised, conducted, and the results thereof canvassed and declared in the same manner and subject to the same conditions as the preceding election called pursuant to said subsection (a) or (b), as the case may be.
*(Acts 1984, No. 84-131, p. 159, §4; Acts 1991, No. 91-187, p. 246, §4.)*
##### **§ 11-65-5** Composition of Commission; Terms; Qualifications; Removal from Office {#sec-11-65-5 omnilex-key=us-al-statutes--title-11--11-65-5}
(a) Every commission shall have five members, which shall constitute its governing body. All powers of a commission shall be exercised by its members or pursuant to their authorization. The mayor or other chief executive officer of the sponsoring municipality and the president or other designated presiding officer of the county commission of the host county shall each serve as a member ex officio, unless such official exercises his or her right, as provided in subsection (b), to appoint a fixed-term member to serve in lieu of such official. The service of each such official as a member shall begin with the beginning of his or her tenure in such office and shall end with the ending of such tenure or the appointment by such official of a fixed-term member to serve in lieu of his or her ex officio service. The other three members shall be appointed in the manner hereinafter prescribed as soon as may be practicable after the certification to the Secretary of State of a favorable vote at an election called and held pursuant to Section 11-65-4. The Lieutenant Governor of the state, the host county house delegation, and the host county senate delegation shall each appoint one member; provided, however, that the provisions of this chapter conferring upon the Lieutenant Governor of the state the power to appoint one member of each commission are hereby expressly declared to be severable from the other provisions of this chapter, and if the provisions conferring such power upon the Lieutenant Governor shall be determined by any court of competent jurisdiction to be invalid because of any defect in the notice required to be published with respect to this chapter by Sections 106 and 110 of the Constitution of Alabama, as amended, or to be invalid for any other reason, such determination shall not affect, impair, or invalidate the remaining provisions of this chapter, and in such case, the mayor or other chief executive officer of the sponsoring municipality shall have the right to appoint the member of each commission that, absent such determination, would have been appointed by the Lieutenant Governor, all subject to the same terms and conditions herein that would be applicable to an appointment made by the Lieutenant Governor. The appointments of members by the host county house delegation and the host county senate delegation shall be made at meetings of the members of the respective delegations held pursuant to the call of the mayor or other chief executive officer of the sponsoring municipality, who shall provide the members of each delegation with written notice of any such meeting at least ten days prior to the date set therefor. All meetings of the host county house delegation or the host county senate delegation called and held pursuant to this chapter shall be open to the public. Any appointment of a member by the host county house delegation or the host county senate delegation must be approved by a majority of the members of such delegation voting in person at a public meeting called and held pursuant to this chapter. Any meeting of the host county house delegation or the host county senate delegation at which fewer than a majority of the members of such delegation are present, or at which no appointment of a member is made because of a failure to obtain the approval of a majority of the members of such delegation, may be adjourned to a future time and place announced at such meeting; provided that, if either delegation fails to appoint a member within 30 days of the date of the first meeting called for the purpose of such appointment, the right of such delegation to appoint a member shall terminate and such appointment shall be made as soon thereafter as practicable by the mayor or other chief executive officer of the sponsoring municipality.
(b) The mayor or other chief executive officer of the sponsoring municipality and the president or other designated presiding officer of the county commission of the host county shall each have the right, exercisable in his or her discretion and at any time during his or her tenure as such official, to appoint a member of the commission to serve in lieu of such appointing official for a fixed term from the effective date of such appointment until the end of the current term of office of the appointing official. Any such appointed member shall, during his or her term, exercise the full rights and powers of a member of the commission that the appointing official would have possessed if he or she had chosen to serve as an ex officio member. Any such appointed member shall also comply with the qualifications set forth in subsection (f), except that the mayor or other chief executive officer of the sponsoring municipality may, in his or her discretion, appoint a member of the governing body of the sponsoring municipality to serve as a fixed-term member of the commission, and the president or other designated presiding officer of the county commission of the host county may, in his or her discretion, appoint a member of the county commission to serve as a fixed-term member of the commission.
(c) The mayor or other chief executive officer of the sponsoring municipality and the president or other designated presiding officer of the county commission of the host county shall have the right, exercisable in the discretion of each such official and at any time and from time to time during his or her tenure as such official, to appoint a deputy member of the commission to represent such ex officio member in connection with the business of the commission. In the event that, pursuant to subsection (b), a member of the governing body of the sponsoring municipality is appointed as a fixed-term member of the commission or a member of the county commission of the host county is appointed as a fixed-term member of the commission, then each such appointed member shall have the same right to appoint a deputy member as would belong to the appointing official if he or she chose service as an ex officio member. Any deputy member shall be appointed by a letter signed by the appointing member and filed with the executive secretary of the commission, which letter shall specify the period of time for which such deputy member shall be appointed or, if not for a period of time, the particular meeting or other business for which he or she shall be appointed. Any deputy member shall serve at the pleasure of the appointing member, and his or her appointment may be revoked at any time during the term of office of the appointing member by a letter signed by the appointing member and filed with the executive secretary of the commission. The appointment of any deputy member shall be automatically revoked when the appointing member ceases to be a member of the commission for any reason. Each member of the commission entitled to appoint a deputy member may, during his or her term of office, appoint and remove from office as many deputy members as he or she may choose, provided that at any given time such member may have no more than one validly appointed deputy member. Any deputy member shall comply with the qualifications set forth in subsection (f), except that the mayor or other chief executive officer of the sponsoring municipality or any fixed-term member appointed to serve in lieu of such official, may, in his or her discretion, appoint a member of the governing body of the sponsoring municipality or a full-time officer or employee of such municipality to serve as deputy member, and the president or other designated presiding officer of the county commission of the host county or any fixed-term member appointed to serve in lieu of such official may, in his or her discretion, appoint a member of the county commission of the host county or a full-time officer or employee of such county to serve as deputy member. Any deputy member validly appointed and serving in accordance with the provisions of this section shall be entitled to exercise all powers and perform all functions and duties of the member who appointed such deputy member, including, without limitation, the right to vote on all matters coming before the commission when such appointing member is not present.
(d) The member to be appointed by the Lieutenant Governor of the state shall be appointed for a term beginning immediately upon his appointment and ending at noon on July 1 in the third calendar year next following the calendar year in which the election authorizing the incorporation of the commission shall be conducted; the member to be appointed by the host county house delegation shall be appointed for a term beginning immediately upon his appointment and ending at noon on July 1 in the fourth calendar year next following the calendar year in which the election authorizing the incorporation of the commission shall be conducted; the member to be appointed by the host county senate delegation shall be appointed for a term beginning immediately upon his appointment and ending at noon on July 1 in the fifth calendar year next following the calendar year in which the election authorizing the incorporation of the commission shall be conducted. Thereafter, the term of office of each appointed member shall be five years, commencing at noon on the July 1 on which the term of the immediate predecessor member shall end.
(e) If at any time there shall be a vacancy among the appointed members of a commission (i.e., those members who do not serve ex officio), a successor member shall be appointed to serve for the unexpired term applicable to such vacancy; provided, however, that any official entitled ex officio (e.g., the mayor of the sponsoring municipality or the president of the county commission of the host county) to a vacant membership previously held by a member appointed in lieu of such official may, instead of appointing a successor, resume his or her ex officio membership by filing written notice to that effect with the Secretary of State and the executive secretary of the commission. The appointment of each member appointed by the Lieutenant Governor, the host county house delegation, or the host county senate delegation, as the case may be (other than those initially appointed), whether for a full five-year term or to complete an unexpired term, shall be made by the officer or legislative delegation responsible for the appointment of the member whose term shall have expired or is to expire or in whose position a vacancy otherwise exists and shall be made not earlier than 30 days prior to the date on which such member is to take office as such. If the term of any such member shall expire prior to the reappointment of such member or prior to the appointment of his successor, such member shall continue to serve until his successor is appointed, and if such member is reappointed for a new term after the expiration of the immediately preceding term which he has been serving, his new term of office shall be deemed to have commenced at noon on the July 1 on which the immediately preceding term shall have expired. Any member appointed pursuant to subsection (b) shall not serve beyond the term for which appointed, and upon the expiration of such term, the position previously held by such member shall immediately revert to the official entitled thereto by reason of his or her office, and such official shall continue as ex officio member of the commission until the expiration of his or her current term of office, the vacation of such office prior to the expiration thereof, or the appointment of someone pursuant to said subsection (b) to serve as a member in lieu of such official, as the case may be. Members appointed by any appointing authority shall be eligible for reappointment without limit as to the number of terms previously served. In the event that any appointments required to be made by the Lieutenant Governor, the host county house delegation, or the host county senate delegation are not made within 60 days after the certification to the Secretary of State of a favorable vote at an election called and held pursuant to this chapter (in the case of initial appointments), or within 30 days of the end of a term or other vacancy, then a vacancy shall be filled or a successor member appointed by a majority of the members of the commission holding appointments already made or serving as ex officio members. Appointments shall be evidenced by a written certificate executed by the appointing official, or, in the case of appointments made by a majority of the other members, by a certificate signed by the members making such appointment, or, in the case of appointments made by a legislative delegation, by the members of the delegation voting for such appointment or by a member of the delegation designated to serve as the secretary of the meeting at which such appointment is made and to report the results thereof to the Secretary of State. The certificates evidencing the appointment of members of a commission shall be addressed and delivered to the Secretary of State, who shall maintain the originals of such certificates as official records in his office, and copies of such certificates shall be furnished to the executive secretary of the commission.
(f) Each appointed member of any commission shall have been a resident of the host county for a period of at least five years prior to his or her appointment and shall, at the time of his or her appointment and at all times during his or her term of office, be a resident of the host county and a qualified elector of the state, and a failure by any appointed member to remain so qualified during such term of office shall cause a vacancy of the office of such member. Except as otherwise provided in subsections (b) and (c), no person serving as a member of the Legislature of the state, serving as a member of the governing body of any municipality, county, or other political subdivision of the state, or holding a full-time office or position of employment with the United States of America, the state, any county, or municipality in the state, or any instrumentality, agency, or subdivision of any of the foregoing, shall be eligible for appointment as a member or deputy member of a commission. Service by any person as a member, director, trustee, or other participant in the management or administration of any governmental agency, board, or commission, or public educational institution, or other public body of the United States of America, the state, or any county or municipality or other political subdivision shall not render such person ineligible for appointment as a member of a commission unless such service constitutes full-time employment. Each appointed member shall be of good moral character and shall never have been convicted of a felony or other offense involving moral turpitude. Each appointed member of a commission shall make and submit to the appointing officer or legislative delegation responsible for his or her appointment an affidavit confirming his or her qualifications, as set forth in the preceding provisions of this subsection, to serve as a member of a commission, which affidavit shall be filed with the Secretary of State along with the aforesaid certificate evidencing such appointment. Any appointed member of a commission who in such affidavit intentionally makes a false statement of material fact or intentionally fails to disclose any information necessary to make any statement of material fact made therein not misleading shall be guilty of perjury and shall be subject to prosecution and punishment therefor in the same manner as if he had committed perjury as a witness in open court.
(g) Any person who is an appointed member of a commission shall be deemed to vacate his or her office as such member by (1) the acceptance of any office or employment which, had such person held such office or been so employed at the time of his or her appointment as a member, would have rendered such person ineligible for appointment as a member or (2) the occurrence of any event or circumstance involving the character of such person which, had such event or circumstance occurred prior to the time of his or her appointment as a member, would have precluded such appointment. Any appointed member may be impeached and removed from office as a member of a commission in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama, or successor provision thereof, and the general laws of the state for impeachment and removal of the public officers subject to said Section 175 or successor provision thereof. The mayor or other chief executive officer of the sponsoring municipality and the president or other designated presiding officer of the county commission of the host county may not be impeached and removed from office as a member of a commission apart from their impeachment and removal from their respective offices by virtue of which, ex officio, they serve as members.
*(Acts 1984, No. 84-131, p. 159, §5; Acts 1991, No. 91-187, p. 246, §5.)*
##### **§ 11-65-6** Incorporation of Commission {#sec-11-65-6 omnilex-key=us-al-statutes--title-11--11-65-6}
The five persons initially designated as members of a commission shall become a corporation with the power and authority provided in this chapter by proceeding according to the provisions of this chapter. To become a corporation, the persons so designated shall present to the Secretary of State an application signed by them which shall contain the following:
(1) A statement that the applicants propose to incorporate a commission pursuant to this chapter;
(2) The name and principal residence of each of the applicants;
(3) The date on which each applicant who is not an ex officio member was appointed as a member and the expiration date of the term for which he was appointed;
(4) The term of office for each applicant who is an ex officio member;
(5) The name of the proposed corporation, which shall be “The _____ [name of the sponsoring municipality] Racing Commission”;
(6) The location of the principal office of the proposed corporation, which shall be in the sponsoring municipality; and
(7) Any other matter relating to such commission which the applicants may choose to insert and which is not inconsistent with this chapter or the laws of the state.
The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the state to take acknowledgments to deeds. The Secretary of State shall examine the application and determine if the certificate of the appropriate election officials has been filed with his office, as required by Section 11-65-4, confirming the results of the election which authorizes the incorporation of the commission and empowers it to license and regulate racing activities and pari-mutuel wagering thereon. If the Secretary of State finds that the application for incorporation of a commission substantially complies with the requirements of this section and that the certified results of the election show the required approval for such incorporation, he shall receive, file, and record such application in an appropriate book of records in his office.
When the application has been made, filed, and recorded as herein provided, the applicants shall constitute a corporation under the name stated in the application, without the necessity of any further action under any other laws of the state applicable to the creation of corporations, and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this chapter, under the great seal of the state, and shall record the certificate with the application and the certificate of election results. There shall be no fees paid to the Secretary of State for any work done in connection with the incorporation or dissolution of any commission. Once authorized by the election required by Section 11-65-4 and incorporated, a commission may not be dissolved except pursuant to general act of the Legislature applicable to such commission.
To the extent that additional powers to license and regulate racing are authorized for a commission by any election held pursuant to subsection (b) of Section 11-65-4, the certificate of the appropriate election officials confirming the results of such election that is required to be submitted to the Secretary of State shall be filed with and shall constitute part of the permanent records pertaining to the corporate existence and powers of the commission, and such additional powers authorized by such election may be exercised by the commission without any requirement that the commission apply to the Secretary of State for an amendment to its certificate of incorporation reflecting such additional powers or that a certificate of amendment be issued by the Secretary of State.
*(Acts 1984, No. 84-131, p. 159, §6; Acts 1991, No. 91-187, p. 246, §6.)*
##### **§ 11-65-7** General Provisions Respecting Members of Commission {#sec-11-65-7 omnilex-key=us-al-statutes--title-11--11-65-7}
No member shall vote on or participate in the discussion or consideration of any matter coming before a commission in which he, his immediate family, or any business enterprise with which he is associated has any direct or indirect pecuniary interest; provided, however, that when any such matter is brought before a commission, any member having an interest therein which may be in conflict with his obligations as a member shall immediately make a complete disclosure to such commission of any direct or indirect pecuniary interest he may have in such matter prior to removing himself and withdrawing from the commission’s deliberations and vote on the matter presented. In furtherance, and not in limitation of the foregoing provision, no member or employee of a commission, and no spouse, child, parent, brother, or sister of any such member or employee, (1) shall have any financial interest, direct or indirect, in any racing facility, business, or operation which is subject to the provisions of this chapter, or in any entity which has submitted an application for a license under this chapter, or in the operation of any wagering authorized under this chapter, (2) shall be an employee of any licensee or permit holder of the commission, or (3) shall participate as the owner of any horse or greyhound participating in any race or otherwise be interested in the outcome of any race subject to the jurisdiction of a commission or have any pecuniary interest in the purse or prize contested for in any such race. No appointed member or officer of a commission (e.g., any member or officer of a commission who does not serve as such by reason of his holding another office), no employee of a commission, and no spouse, child, parent, brother, or sister of any such appointed member or officer or of any such employee, shall make, or cause to be made on his or her behalf, any contribution to any holder of any office of the state or any office of the sponsoring municipality or the host county of such commission or any contribution to any candidate for any such office.
The mayor or other chief executive officer of the sponsoring municipality and the president or other designated presiding officer of the county commission of the host county shall perform the duties of a member of a commission, ex officio, without any compensation other than that to which they are respectively entitled as such municipal or county officers, and any member of a commission who is appointed by either of such officials pursuant to the provisions of Section 11-65-5 and who is a member of the governing body of the sponsoring municipality or the host county shall likewise perform his or her duties as such member without any compensation other than that to which he or she is entitled as a member of such municipal or county governing body. Except as otherwise provided in the preceding sentence and to the extent not in conflict with Section 280 of the Constitution of Alabama, appointed members of a commission, including deputy members appointed pursuant to subsection (c) of Section 11-65-5, shall be entitled to such compensation for their services as the commission shall from time to time provide by duly adopted resolution, provided that no appointed member or deputy member of a commission shall receive more than $100.00 for each day or part thereof spent in the performance of his duties. Each member, whether appointed or serving ex officio, shall be reimbursed for his or her reasonable expenses incurred in the performance of his or her duties as a member of a commission. The compensation and expenses of members and deputy members shall be paid out of the funds of a commission in accordance with such rules as shall be from time to time adopted by such commission.
A majority of the members (including any member represented by a deputy member) of a commission shall constitute a quorum for the transaction of business by such commission, and, in the absence of a rule incorporated in the bylaws of a commission that, in certain circumstances, may require the favorable vote of a designated percentage of all the members of a commission, decisions shall be made on the basis of a majority of the quorum then present and voting, with each member to have a single vote. No vacancy in the membership of a commission or the voluntary disqualification or abstention of any member thereof shall impair the right of a quorum to exercise all of the powers and duties of the commission.
*(Acts 1984, No. 84-131, p. 159, §7; Acts 1991, No. 91-187, p. 246, §7.)*
##### **§ 11-65-8** Officers of Commission {#sec-11-65-8 omnilex-key=us-al-statutes--title-11--11-65-8}
The officers of a commission shall consist of a chairman, vice-chairman, executive secretary, treasurer, and such other officers as the commission shall deem necessary or appropriate. The chairman and vice-chairman of a commission shall be elected by the commission from the membership thereof. The executive secretary shall be appointed as provided in Section 11-65-10. A commission may appoint the principal financial officer of the sponsoring municipality as the treasurer of such commission or it may appoint its executive secretary as treasurer and combine the duties of the two offices, or it may appoint and employ a treasurer as provided in Section 11-65-10.
*(Acts 1984, No. 84-131, p. 159, §8; Acts 1991, No. 91-187, p. 246, §8.)*
##### **§ 11-65-9** Treasurer of Commission; Investment of Funds of Commission {#sec-11-65-9 omnilex-key=us-al-statutes--title-11--11-65-9}
The treasurer of a commission shall collect all the fees, commissions, and other moneys provided for in this chapter, and shall supervise, check, and audit the operation of the pari-mutuel wagering pools and the conduct and distribution thereof. A commission may appoint the principal financial officer of the sponsoring municipality as the treasurer, in which case such officer shall perform the duties of treasurer, without any compensation other than that to which he or she is entitled as the principal financial officer of such sponsoring municipality, but he or she shall be reimbursed for expenses actually incurred in the performance of his or her duties as treasurer of a commission. The treasurer of a commission shall, with the approval of the commission, determine the managerial, accounting, and clerical personnel that are necessary to keep the books and records of such commission and to perform the audit and other financial functions for such commission authorized or contemplated by this chapter. If the commission appoints the principal financial officer of the sponsoring municipality as the treasurer of the commission, such managerial, accounting and clerical personnel may, as and to the extent approved by the commission, be employees of such sponsoring municipality and shall perform their duties with respect to the commission under the supervision of such principal financial officer in his capacity as treasurer of the commission. The number, qualifications, and compensation of personnel employed by the sponsoring municipality to perform all financial functions for a commission shall be subject to the approval of such commission, as well as to such other laws and regulations as may be applicable to such personnel as employees of such sponsoring municipality. A commission shall reimburse the sponsoring municipality for the costs and expenses incurred in the performance of any financial functions for such commission, including a reasonable allowance for the time of the principal financial officer of such sponsoring municipality devoted to the business of such commission as its treasurer.
The funds of a commission which it determines are not then needed to discharge its obligations or to make the disbursements provided for in Sections 11-65-34 and 11-65-36 may be invested in such of the following investments as its treasurer, acting at the direction of or with the approval of the commission, may determine to be most advantageous or convenient:
(1) Any time deposit with, or any certificate of deposit issued by, or any acceptance by, any bank which is organized under the laws of the United States of America or any state thereof and deposits in which are insured, in whole or in part, by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation;
(2) Any direct, general obligation of the United States of America;
(3) Any obligation payment of the principal of and interest on which is unconditionally guaranteed by the United States of America;
(4) Any direct, general obligation of, or any obligation payment of the principal of and interest on which is unconditionally guaranteed by, any agency or instrumentality of the United States of America (including, without limitation, the Federal National Mortgage Association); and
(5) Any repurchase agreement or reverse repurchase agreement with any bank which is a member of the Federal Deposit Insurance Corporation (or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation) or with any government bond dealer reporting to and trading with the Federal Reserve Bank of New York, provided that such agreement is secured by obligations or securities described in clauses (1), (2), (3), and (4) of this sentence.
Funds of a commission not invested in accordance with the preceding sentence shall be deposited in a bank the principal office of which shall be located in the sponsoring municipality and the deposits of which shall be insured, in whole or in part, by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation.
*(Acts 1984, No. 84-131, p. 159, §9; Acts 1991, No. 91-187, p. 246, §9.)*
##### **§ 11-65-10** Powers and Duties of Commission {#sec-11-65-10 omnilex-key=us-al-statutes--title-11--11-65-10}
When authorized by one or more elections as provided in Section 11-65-4, a commission shall have the powers and duties necessary to license, regulate, and supervise horse racing and pari-mutuel wagering thereon and greyhound racing and pari-mutuel wagering thereon within the commission municipal jurisdiction, including, without limiting the generality of the foregoing, the powers and duties hereinafter set forth in this section or in other sections of this chapter.
(1) A commission shall have succession in perpetuity, subject only to the provisions of this chapter as it may be amended from time to time.
(2) A commission shall have the power to sue and be sued in its own name in civil suits and actions and to defend suits against it.
(3) A commission shall have the power to adopt and make use of an official seal and to alter the same at pleasure.
(4) A commission shall have the power to adopt, alter, and repeal bylaws, regulations and rules, not inconsistent with the provisions of this chapter, for the regulation and conduct of its affairs and business.
(5) A commission shall have the power to make, execute, and perform such contracts, agreements, and other instruments and to take such other actions as may be necessary or convenient to accomplish its purposes and perform its duties under the provisions of this chapter, including, without limiting the generality of the foregoing, the power to enter into a contract, on such terms as it shall deem desirable, to grant a license to own, or to have the use of, a horse racing facility, a license to conduct horse racing and pari-mutuel wagering thereon, a license to conduct greyhound racing and pari-mutuel wagering thereon, or any other license or permit to a person meeting the qualifications prescribed by this chapter for such license or permit. Any contract of a commission shall be valid and enforceable with respect to any action which may at any time be authorized by law, even if the authority to perform such action was authorized by a law enacted after the making of such contract.
(6) A commission shall have the power
a. to borrow money from any source, including the sponsoring municipality (which is hereby authorized to lend such money to its related commission), for the purpose of paying expenses that may be reasonably incurred in carrying out its duties in advance of the receipt of fees, commissions and other moneys payable to it under the provisions of this chapter and
b. to pledge as security for the payment of the principal of and interest on the money so borrowed all or any of such fees, commissions, and other moneys, which pledge shall be prior to any and all claims to such fees, commissions, and other moneys from any intended recipients of breeding fund fees pursuant to Section 11-65-34 hereof or from any intended recipients of the net commission revenues pursuant to Section 11-65-36 hereof; provided, however, that no commission shall be entitled, pursuant to this subdivision, to borrow, or to allow to remain outstanding at any time, a principal amount in excess of (i) $500,000.00 or (ii) the amount which the commission estimates will be its total operating expenses for the next three years, whichever of such amounts is the lesser.
(7) A commission shall establish and maintain a general business office within the commission municipal jurisdiction for the transaction of its business at a place to be determined by such commission. A commission shall meet at such times and places within its sponsoring municipality as it shall determine.
(8) A commission shall be vested with supervision and authority over all horse racing and pari-mutuel wagering thereon and all greyhound racing and pari-mutuel wagering thereon that it shall license under the provisions of this chapter and over all persons conducting, participating in, or attending such licensed activities. A commission shall employ such persons to be present at all occasions when licensed activities are conducted and to exercise such duties of surveillance and control as shall be necessary to ensure that they are conducted with order and the highest degree of integrity. A commission may eject or exclude from any racing facility where licensed activities are being conducted, or from any part thereof, any person, whether or not possessing a permit from the commission, whose conduct or reputation is such that his or her presence may, in the reasonable opinion of the commission or its agents, pose a threat to, interfere wit,h or reflect adversely upon, the order and integrity of such licensed activities. By the act of giving any operator a license to conduct activities regulated under this chapter, a commission shall be deemed to have authorized and directed the operator to maintain and enforce, subject to compliance with the rules and regulations of the commission, the same degree of order and integrity which it is the right and duty of the commission to maintain and enforce, including the same right as that of the commission to eject or exclude from the racing facility covered by such license, or from any part thereof, any person, whether or not possessing a permit from the commission, whose conduct or reputation is such that his or her presence may, in the reasonable opinion of the operator or its agents, pose a threat to, interfere with or reflect adversely upon, the order and integrity of the licensed activities conducted by the operator; provided, however, that the commission shall have no liability for any actions taken by an operator or its agents with respect to maintaining and enforcing the order and integrity of the licensed activities conducted by such operator.
(9) From the fees, commissions, fines, and other moneys available for the payment of a commission’s expenses, the commission shall pay all salaries and other employment expenses of its employees and agents, in whatever capacity or for whatever purpose employed, and whether employed in connection with the regulation and conduct of horse racing, greyhound racing, or pari-mutuel wagering, and the commission shall not have the right, whether attempted to be implemented by regulation, order, or contract, to require a licensed operator under its jurisdiction to pay, or to reimburse the commission for the payment of, any of the salaries or other employment expenses of the commission’s employees and agents; provided, however, that the requirements and limitations of this subdivision shall not be interpreted to diminish the authority of the commission to require any licensed operator to employ, at the expense of the operator, such qualified personnel (the selection and determination of the qualifications of such personnel to be mutually acceptable to the operator and the commission) as shall be reasonably necessary to ensure that all licensed activities conducted by the operator are conducted with order, security, and the highest degree of integrity in accordance with the provisions of this chapter and the rules and regulations of the commission.
(10) A commission shall have the power to compel a horse racing facility licensee or an operator to file with the commission such periodic reports, in form and content prescribed by duly adopted rules and regulations of the commission, as shall be reasonably necessary for the enforcement of the provisions of this chapter and the performance of the commission’s duties. A commission and its representatives and employees shall visit, investigate, and have free access to the office, track, facilities or other place of business of an operator, and may compel the production of any of an operator’s books, documents or records to the extent that such materials are relevant to a determination that such operator is faithfully complying with the provisions of this chapter and the commission’s rules and regulations. By duly adopted rules and regulations or by specific order entered after appropriate hearings and findings, a commission may require that it be provided the following information or materials:
a. An operator shall provide financial reports, verified by the sworn statement of the operator’s chief executive officer or chief financial officer, for such periods as the commission may require showing
provided that the operator shall file with the commission, not less than 90 days after the end of each calendar year, a financial report covering the foregoing information for such year which shall be audited and certified by an independent accounting firm selected by the operator and approved by the commission. Neither a horse racing facility licensee nor an operator shall be required to furnish the commission complete financial statements that disclose the net worth of such licensee or operator, its net income for any period or other confidential information, unless for good cause it can be shown that such information is necessary to enforce compliance with the provisions of this chapter. Any financial information disclosing the net worth or net income of a horse racing facility licensee or an operator, or making it possible to compute the same, which comes into the possession of a commission shall not be public information and shall be protected against public disclosure to the same extent that the tax returns of any taxpayer are protected against public disclosure by the provisions of Section 40-2A-10.In any case where a horse racing facility licensee or an operator, pursuant to demand or order of the commission, shall file with the commission, whether voluntarily or under protest, information that such licensee or operator asserts is confidential in a written statement submitted to the commission with such information, then, in such case, if such information is not expressly required to be furnished as public information to the commission by any provision of this chapter, the commission shall protect such information against public disclosure to the same extent that the tax returns of any taxpayer are protected against public disclosure by the provisions of Section 40-2A-10. In no event shall the commission make or allow public disclosure of any information asserted to be confidential by a horse racing facility licensee or an operator, unless such public disclosure shall be ordered by the circuit court of the host county after a hearing in which such licensee or operator shall have had the opportunity to present reasons why it is entitled to a protective order prohibiting or limiting such public disclosure. Nothing contained in this chapter shall be construed to deny access to any information which would otherwise be available to the Attorney General, the district attorney or any other law enforcement official in connection with a criminal investigation or prosecution.
(11) Any contract proposed to be entered into by an operator that involves consideration having an aggregate value of $10,000 or more and that involves more than a single transaction or the delivery of goods or the performance of services over a period of time shall be submitted to the commission before the execution thereof by the operator or within five business days after such execution and shall be subject to the approval of the commission licensing such operator before such contract shall have permanent effect. In approving any contract the commission shall not inquire into or make any judgment regarding the commercial terms of such contract, and its power to disapprove a contract shall be limited to those cases in which it determines that a party to the contract is a disqualified person. Any contract not approved within 30 days of its submission to the commission shall be deemed approved, unless prior to the expiration of such 30-day period the commission shall adopt a resolution stating that it disapproves the contract because it has reasonable cause for believing that a party to the contract is a disqualified person. A certified copy of such resolution shall be promptly furnished to the operator and to the contracting party whom the commission believes to be a disqualified person, whereupon either the operator or such contracting party, or both, shall have the option of terminating the contract or appealing the action of the commission to the circuit court pursuant to Section 11-65-12. In the event that the disapproval of any contract by the commission is not ultimately set aside by the circuit court pursuant to an appeal, the contract shall be valid and lawful for that portion thereof which is performed during the cumulative period, not exceeding 60 days, allowed for the commission’s review and disapproval and the operator’s appeal of the commission’s action.
(12) A commission shall adopt and publish reasonable rules, regulations, and conditions under which all types of racing subject to its jurisdiction and pari-mutuel wagering thereon shall be conducted in the sponsoring municipality, and such other reasonable regulations as it deems necessary and appropriate to carry out the purposes and provisions of this chapter; provided, however, that no commission shall promulgate rules and regulations which require the disclosure of confidential information concerning the financial affairs and ownership of a horse racing facility licensee or an operator that is not required to be disclosed by the express provisions of this chapter. Such rules and regulations may include reasonable penalties for violations which shall be in the nature of civil and not criminal penalties.
(13) A commission may issue subpoenas for the attendance of witnesses before it, administer oaths, and compel production of records or other documents and testimony of such witnesses whenever such commission finds it necessary and appropriate so to do in order to carry out its duties under this chapter or to enforce the provisions of this chapter or rules or regulations adopted pursuant hereto.
(14) A commission shall be the primary, but not exclusive, law enforcement agency to enforce the provisions of this chapter, shall investigate all violations of the provisions of this chapter coming to its attention, shall report its investigative findings of all criminal violations of the provisions of this chapter to the district attorney of the host county or to the Attorney General of the state when appropriate, and shall have the power to enter into arrangements with any governmental or nongovernmental agency or association for the purposes of exchanging information, establishing security forces or performing or facilitating any other action to ensure the proper conduct of licensed activities under this chapter. The commission shall have the power and duty to maintain the confidentiality of information obtained in its own investigations or received from other law enforcement agencies, all to the extent required by law or agreement with such agencies or as may be deemed necessary or desirable by the commission.
(15) A commission shall have the power to demand and obtain for its files the fingerprints of the following persons, which fingerprints may be taken by a representative of a law-enforcement agency of the county, state, or federal government, by inspectors of such commission or by such qualified private security agency as such commission may designate:
a. All members, officers, and employees of such commission;
b. Every person who is an officer, director, partner, or other principal of a corporation, partnership, or other entity which holds a license from the commission, and every employee of such a licensee whose duties relate to the businesses of horse racing or greyhound racing in the sponsoring municipality;
c. All owners of horses, owners of greyhounds, trainers, jockeys, apprentices, stable or kennel employees, managers, agents, blacksmiths, veterinarians, and other persons who actively participate in the racing activities of any operator; and
d. All other persons whose relationship to horse racing or greyhound racing or wagering activities under the jurisdiction of the commission is of such nature that the commission, in the exercise of reasonable judgment, believes that it would be prudent to obtain the fingerprints of such persons.
(16) A commission shall report annually to the governing body of its sponsoring municipality and to such state and federal authorities as shall be required by law.
(17) Except as otherwise provided in subdivisions (10) and (12), all books, records, maps, documents, and papers of a commission, including those filed with such commission as well as those prepared by or for it, shall at all times be open for the personal inspection of any officer of the state, the sponsoring municipality or the host county or any official investigative body or committee of any thereof, and no person having charge or custody thereof shall refuse this right to any officer or investigative body or committee, and it shall be the express duty of such person to assist such officer or committee in locating records or information. If any member of a commission violates the provisions of this subdivision, he or she shall be subject to removal from office.
(18) Subject to the provisions of Section 11-65-11, a commission shall appoint an executive secretary, a treasurer (subject, in the case of the treasurer, to the provisions of Section 11-65-9), and such other employees as it deems essential to perform its duties under this chapter. Such employees shall possess such authority and perform such duties as the commission shall prescribe or delegate to them. Such employees may include stewards for horse racing, judges for greyhound racing, chemists, veterinarians, inspectors, accountants, guards, and such other employees deemed by the commission to be necessary for the supervision and the proper conducting of horse racing and greyhound racing in accordance with the highest standards. Such employees shall be compensated as provided by the commission.
(19) The executive secretary of a commission, in addition to any other duties prescribed by such commission, shall keep a true and full record of all proceedings of such commission and shall preserve at the commission’s general office all books, documents, and papers of the commission.
(20) A commission shall have the authority to employ legal counsel of its choice to advise the commission and represent it in all proceedings. The compensation of such counsel shall be paid out of the funds of the commission.
(21) A commission shall have the authority (i) to expend funds to promote tourism and attendance at horse racing and greyhound racing events under its jurisdiction and (ii) to appropriate, pledge, and pay funds to the sponsoring municipality or the host county, in a single year or for a term of years, for the reimbursement of costs at any time incurred by the sponsoring municipality or the host county (including an allowance for interest on such costs at the rate of eight percent per annum from the date such costs were incurred to the date of reimbursement) in providing roads, bridges, lighting, drainage, water mains, sewers, and other public improvements that, in whole or in part, serve racing facilities under the commission’s jurisdiction or, alternatively, the reimbursement of installments of principal of and interest on debt at any time incurred by the sponsoring municipality or the host county to pay the costs of such improvements. As a condition to any agreement or undertaking by a commission to make any appropriation, pledge, or payment pursuant to clause (ii) of the preceding sentence, the governing body of the sponsoring municipality or the host county, as the case may be, shall adopt a resolution addressed to such commission requesting the reimbursement of the costs of specified improvements or the reimbursement of debt service on debt incurred to pay the costs of specified improvements, and such resolution shall be submitted to such commission together with a verified statement of the mayor of the sponsoring municipality or the president of the county commission of the host county, as the case may be, showing the costs of the improvements, the dates on which such costs were respectively incurred, and, if reimbursement for debt service is requested, the principal amount of debt in question and the date it was incurred, the principal maturities of such debt, the rate or rates of interest borne by such debt, and any agreements providing for the payment of any portion of such costs or debt service by any other entities, whether public or private. A commission shall determine, in the exercise of its discretion, whether to comply with any such request for reimbursement, in whole or in part, and subject to compliance with the conditions of this subdivision, such commission shall have all necessary authority to enter into such agreements as shall be necessary to assure the performance of such reimbursement obligations as it agrees to undertake. If a private entity has a valid and enforceable obligation to pay any portion of such costs or debt service, a commission shall not reimburse the sponsoring municipality or the host county, as the case may be, for the portion of such costs or debt service for which such private entity shall be obligated, and if a public entity has a valid and enforceable obligation to pay any portion of such costs or debt service, a commission shall make such arrangements as shall assure that any reimbursement to, or for the account of, the sponsoring municipality or the host county for any portion of such costs or debt service paid by such public entity shall be remitted to such public entity in order to avoid duplicate reimbursement of the same amount to the sponsoring municipality or the host county. All expenditures, appropriations, and payments made by a commission pursuant to this subdivision shall be deemed to be expenses incurred by such commission in the administration and performance of its duties under this chapter and shall be deducted as a prior charge before determining the net commission revenues of such commission; provided, however, that the total amount of all expenditures, appropriations, and payments made by a commission pursuant to this subdivision during any calendar year shall not exceed 25 percent of the aggregate amount of commission horse wagering fees and commission greyhound wagering fees received by such commission during that calendar year.
(22) A commission shall have an independent accounting firm, which is approved by a majority of the members of the commission, and the Chief Examiner of Public Accounts of the state, prepare annual certified financial reports, as of the close of each fiscal year, detailing all income, expenses, and disbursements of whatsoever nature without limitation and including all expenditures and disbursements made pursuant to Sections 11-65-7, 11-65-9, 11-65-34 and 11-65-36. Each such report shall be a public record and shall be available during normal business hours for examination and copying by the public. Copies of any such report shall be made available upon request at a cost not exceeding the cost of reproducing such report.
*(Acts 1984, No. 84-131, p. 159, §10; Acts 1987, No. 87-615, p. 1069, §2; Acts 1991, No. 91-187, p. 246, §10.)*
##### **§ 11-65-11** Qualifications of Commission Employees {#sec-11-65-11 omnilex-key=us-al-statutes--title-11--11-65-11}
Each appointed officer and each employee of a commission shall be of good moral character and shall never have been convicted of a felony or other offense involving moral turpitude. As a condition of employment by a commission, each employee shall make and submit to such commission an affidavit confirming his or her qualifications, as set forth in the preceding sentence, to be an employee of such commission, which affidavit shall constitute a part of the permanent personnel records of such commission. Any employee of a commission who in such affidavit intentionally makes a false statement of material fact or intentionally fails to disclose any information necessary to make any statement of material fact made therein not misleading shall be guilty of perjury and shall be subject to prosecution and punishment therefor in the same manner as if he had committed perjury as a witness in open court.
*(Acts 1984, No. 84-131, p. 159, §11.)*
##### **§ 11-65-12** Review of Commission Action {#sec-11-65-12 omnilex-key=us-al-statutes--title-11--11-65-12}
Any person aggrieved by the refusal of a commission to issue any license or permit, or the suspension or revocation of a license or permit, the imposition of a fine, the disapproval of a contract, or any other action or failure of action by the commission, may, within 60 days of such action or failure of action, appeal to the circuit court of the host county. If such court finds that the action of such commission, or its failure to take action, was arbitrary, unreasonable, or contrary to the provisions of this chapter, it shall order the issuance or reinstatement of such license or permit, the abatement of such fine, the approval of such contract, or such other remedial action as it deems appropriate in the circumstances. The decision of such court shall be subject to appeal as in other cases at law.
*(Acts 1984, No. 84-131, p. 159, §12; Acts 1991, No. 91-187, p. 246, §11.)*
##### **§ 11-65-13** Request for Injunctions Authorized {#sec-11-65-13 omnilex-key=us-al-statutes--title-11--11-65-13}
Whenever it appears to a commission that any person has been violating or may violate any provision of this chapter or any reasonable rule or regulation or final decision of such commission, it may apply to the circuit court of the host county for an injunction against such person. The order granting or refusing such injunction shall be subject to appeal as in other cases in equity.
*(Acts 1984, No. 84-131, p. 159, §13.)*
##### **§ 11-65-14** Commission Licenses Required for Certain Activities; Conditions Relating to Award and Use of Licenses {#sec-11-65-14 omnilex-key=us-al-statutes--title-11--11-65-14}
(a) No person shall construct or establish a horse racetrack or racing facility where horse races are to be held and pari-mutuel wagering permitted, or own, lease, or otherwise have the use and enjoyment of, any such racetrack or racing facility in the commission municipal jurisdiction unless such person has obtained a horse racing facility license issued by a commission in accordance with the provisions of this chapter, which license, when granted or transferred to the holder thereof, shall authorize such holder to construct, establish, own, lease, or otherwise have the use and enjoyment of, a horse racetrack or racing facility in the commission municipal jurisdiction where horse races can be lawfully held and pari-mutuel wagering thereon permitted, all subject to and in compliance with the provisions of this chapter.
(b) No person shall conduct any pari-mutuel wagering on horse races, or conduct any horse races at which wagering of any kind is permitted with such person’s knowledge or acquiescence, in the commission municipal jurisdiction unless such person has obtained an operator’s license to conduct horse racing and pari-mutuel wagering thereon under the provisions of this chapter, which license, when granted or transferred to the holder thereof, shall authorize such holder to conduct horse racing and pari-mutuel wagering thereon in the commission municipal jurisdiction at the racing facility covered by such license, all subject to and in compliance with the provisions of this chapter. No horse racing operator licensed by a commission shall be required to obtain a horse racing facility license or any other license from the commission with respect to the ownership or use of any racing facility in order to conduct horse racing and pari-mutuel wagering thereon at the facility covered by such operator’s license.
(c) No person shall conduct any pari-mutuel wagering on greyhound races or any other kind of dog races, or conduct any dog races at which wagering of any kind is permitted with such person’s knowledge or acquiescence, in the commission municipal jurisdiction unless such person has obtained an operator’s license to conduct greyhound racing and pari-mutuel wagering thereon under the provisions of this chapter, which license, when granted or transferred to the holder thereof, shall authorize such holder to conduct greyhound racing and pari-mutuel wagering thereon in the commission municipal jurisdiction at the racing facility covered by such license, all subject to and in compliance with the provisions of this chapter. No greyhound racing operator licensed by a commission shall be required to obtain a horse racing facility license or any other license from the commission with respect to the ownership or use of any racing facility in order to conduct greyhound racing and pari-mutuel wagering thereon at the facility covered by such operator’s license.
(d) As licensed and regulated by a commission under the provisions of this chapter, horse racing and pari-mutuel wagering thereon and greyhound racing and pari-mutuel wagering thereon shall be separate activities which, subject to the rules, regulations, and orders of the commission, may be conducted at the same racing facility. A commission shall permit an operator holding both a license for horse racing and a license for greyhound racing to schedule both kinds of racing at different times on the same racing day or to schedule only one kind of racing on any given racing day, as in the judgment of such operator may be most economically advantageous. A commission may not require a greyhound racing operator to conduct horse racing to any extent as a condition of maintaining its license for greyhound racing and pari-mutuel wagering thereon in good standing or, alternatively, require a horse racing operator to conduct greyhound racing to any extent as a condition of maintaining its license for horse racing and pari-mutuel wagering thereon in good standing.
(e) No license issued under the provisions of this chapter shall be transferable without the approval of the commission which issued such license. The commission’s review of any proposed transfer of a license and its approval or disapproval thereof shall be subject to rules and regulations adopted by the commission, but approval for the transfer of any license shall not be unreasonably withheld. No transfer of any license shall be approved by the commission unless the proposed transferee of such license satisfies all qualifications and requirements that would be applicable to the original recipient of such license under this chapter.
(f) When presented with the opportunity of issuing or transferring any license under the provisions of this chapter, whether a horse racing facility license, an operator’s license for horse racing and pari-mutuel wagering thereon or an operator’s license for greyhound racing and pari-mutuel wagering thereon, a commission, in the exercise of its judgment and discretion, may determine the conditions under which applicants shall be allowed or induced to apply for such license, which conditions may involve, without limitation, (i) a public and open competition in which all interested persons shall be encouraged and permitted to submit applications or (ii) a controlled selection process in which only one applicant having particular qualifications will be evaluated by the commission and given an exclusive right to apply for and be awarded such license, subject to such applicant’s fulfillment of all qualifications and conditions required by the provisions of this chapter for the award of such license. The Legislature expressly authorizes a commission, both retroactively and prospectively, to grant, and to contract to grant and transfer, licenses on an exclusive basis to a single prospective licensee, without allowing competition from other persons who might be interested in such licenses, in circumstances where the racing activities under the jurisdiction of the commission have been disrupted by severe and protracted financial and managerial difficulties of the commission’s prior licensees and there is a need to grant or transfer licenses to one or more persons having particular qualifications in order to implement a plan to put such racing activities on a new financial basis with new management, including, without limitation, a plan for reorganization under the bankruptcy laws of the United States. The Legislature hereby expressly authorizes, ratifies, and confirms the right and authority of a commission to enter into a valid and enforceable contract to grant to a prospective licensee a license to operate greyhound racing and pari-mutuel wagering thereon, and to protect such license from the future issuance of competing licenses for both horse racing and greyhound racing, without considering other applicants for such license, in furtherance of a plan of reorganization which depends upon the projected financial benefits of greyhound racing and pari-mutuel wagering thereon under the management of such prospective licensee, even though the commission entered into such contract prior to (i) the enactment of amendments to this chapter which, subject to compliance with the election requirements of Section 11-65-4, authorize the commission to license and regulate greyhound racing and pari-mutuel wagering thereon and (ii) the approval of the commission’s authority to license and regulate greyhound racing and pari-mutuel wagering thereon by the voters of the host county and the commission municipal jurisdiction in an election held pursuant to subsection (b) of Section 11-65-4. Such contract shall be valid from the date of its execution and delivery, but the obligation thereunder of the commission to grant a license for greyhound racing and pari-mutuel wagering thereon shall not be enforceable until the voters of the host county and the commission municipal jurisdiction shall have authorized the commission to license and regulate greyhound racing and pari-mutuel wagering thereon in an election held pursuant to subsection (b) of Section 11-65-4. Nothing contained in this subsection (f) with respect to the retroactive validation of a commission’s contract to issue a license for greyhound racing and pari-mutuel wagering thereon shall be construed to limit the right and duty of the commission to deny the award of the license pursuant to such contract if the commission reasonably and in good faith determines that the prospective licensee does not meet the qualifications established by this chapter for the award of the license.
*(Acts 1984, No. 84-131, p. 159, §14; Acts 1991, No. 91-187, p. 246, §12.)*
##### **§ 11-65-15** Application for Horse Racing Facility License {#sec-11-65-15 omnilex-key=us-al-statutes--title-11--11-65-15}
Any person desiring to obtain a horse racing facility license through issuance thereof by a commission, or through transfer of an outstanding license, shall file with the appropriate commission an application for such license. Such application shall be filed at the time and place prescribed by such commission and shall be in such form and contain such information as may be prescribed by such commission, including the following:
Anything contained in this section to the contrary notwithstanding, an applicant shall not be required to disclose, in connection with an application for a horse racing facility license, any confidential financial information, or any information concerning the exact percentage of ownership interest in such applicant held by various persons, that it would be entitled, as a licensee of the commission, to keep confidential under the provisions of subdivision (10) of Section 11-65-10, and to the extent that any such information is furnished to the commission by such applicant, or otherwise comes into the possession of the commission, it shall be kept confidential and shall be protected from public disclosure to the same extent as confidential information concerning a licensee is required to be protected from public disclosure pursuant to said subdivision (10).
Any application for the issuance or transfer of a horse racing facility license shall be verified by the oath or affirmation of an officer of the applicant and shall be accompanied by a nonrefundable fee of $15,000.00; provided, however, that the nonrefundable fee for submitting an application for the issuance or transfer of a horse racing facility license shall be reduced to $5,000.00 in those cases where the applicant is the holder of an operator’s license to conduct horse racing and pari-mutuel wagering thereon at the racing facility or, simultaneously with the submission of such application, the applicant submits an application for the issuance or transfer of such an operator’s license.
*(Acts 1984, No. 84-131, p. 159, §15; Acts 1991, No. 91-187, p. 246, §13.)*
##### **§ 11-65-16** Review of Application for Horse Racing Facility License {#sec-11-65-16 omnilex-key=us-al-statutes--title-11--11-65-16}
(a) A commission shall promptly consider any application for the issuance or transfer of a horse racing facility license submitted to it and shall grant or deny the issuance or transfer of such license based on all information before it, including the results of investigations it deems appropriate. A commission shall deny the issuance of an original horse racing facility license to any applicant unless it finds that the applicant’s facility will meet the following minimum standards:
(1) That the facilities will provide a track racing surface of at least one mile;
(2) That the facility will be appropriate for the conduct of horse racing year-round and at night; and
(3) That the facility will be located within the boundaries of the commission municipal jurisdiction or will be located on land in the host county and annexed to the sponsoring municipality prior to the commencement of racing.
(b) A commission shall deny the issuance or transfer of a horse racing facility license to any applicant unless it finds that more than 50 percent of both the ownership interest and the voting interest in the applicant (and the applicant’s general partner in the event the applicant is a limited partnership) is owned, directly or indirectly, by persons who have a substantial presence in the state. For purposes of this subsection (b), a person shall be deemed to have a substantial presence in the state under any of the following circumstances:
(1) If a natural person, then such person has been domiciled in the state for at least 12 consecutive months prior to the date of the application for a license;
(2) If a corporation, then such corporation is incorporated under Title 10, or is incorporated under comparable laws of another state and is licensed or qualified to do business in the state and, in addition, satisfies one of the following alternative sets of conditions:
a. Such corporation has maintained its principal place of business, and has actively done business, in the state for at least 12 consecutive months prior to the date of application for a license, as evidenced either by the employment of at least 100 employees in the state or by the employment of $500,000.00 in assets held in the state during such period; or
b. More than 50 percent of both the ownership interest and the voting interest in such corporation is owned, directly or indirectly, by natural persons described in subdivision (b)(1), or by one or more corporations described in subdivision (b)(2)a, or by any combination of such natural persons and corporations;
(3) If a limited partnership, then such limited partnership is formed or registered under Title 10, and has maintained its principal place of business and at least 50 percent of its assets in the state for at least 12 consecutive months prior to the date of application for the license, and its general partner has maintained its principal place of business or residence in the state for at least 12 consecutive months prior to the date of such application;
(4) If a general partnership, then such partnership has maintained its principal place of business and at least 50 percent of its assets in the state for at least 12 consecutive months prior to the date of application for the license;
(5) If a financial institution, then such financial institution is a corporation or other legal entity doing business in the state as a bank, national banking association, state banking corporation, trust company, industrial or other loan company, building and loan association, or insurance company and has maintained its principal place of business in the state for at least 12 consecutive months prior to the date of application for the license;
(6) If a trust or custodianship, then at least 50 percent of the corpus of such trust or custodianship is situated in the state and the trustee or custodian of such property has a substantial presence in the state under any of the standards set forth in this subsection (b); or
(7) If an estate, then such estate is the estate of a person described in subdivision (b)(1), or at least 50 percent of the property of such estate consists of real estate located in the state or tangible personal property which has been located within the state for at least 12 consecutive months prior to the date of application for the license.
(c) The provisions of this section which permit a horse racing facility license to be granted only if more than 50 percent of both the ownership interest and the voting interest in the licensee is owned, directly or indirectly, by persons who have a substantial presence in the state shall not be construed (1) to impair the foreclosure rights of any mortgagee holding a mortgage on the racing facility of such licensee securing debt incurred to finance the costs of constructing or purchasing such racing facility or (2) to impair the rights of any mortgagee holding such a mortgage, or the rights of any other person to which such racing facility may be sold in foreclosure, to take and hold title to such racing facility, to lease or sell the same, and to apply for and receive a horse racing facility license therefor from the commission upon compliance with all other applicable provisions of this chapter, irrespective of whether the aforesaid condition of substantial presence in the state shall be satisfied by persons owning, directly or indirectly, more than 50 percent of both the ownership interest and the voting interest in such mortgagee or in any person to which such racing facility shall be sold, as the case may be.
(d) A commission shall deny the issuance or transfer of a horse racing facility license to an applicant if it finds that for any reason the issuance or transfer of such license to such applicant would not be in the interests of the people of the sponsoring municipality or that the applicant, or any officer, general partner or director of the applicant, (i) is a disqualified person, (ii) has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information called for in the application, or (iii) is not qualified to do business in the state or is not subject to the jurisdiction of the courts of the state.
*(Acts 1984, No. 84-131, p. 159, §16; Acts 1987, No. 87-615, p. 1069, §3; Acts 1991, No. 91-187, p. 246, §14.)*
##### **§ 11-65-17** Terms of Horse Racing Facility License {#sec-11-65-17 omnilex-key=us-al-statutes--title-11--11-65-17}
(a) A horse racing facility license issued under this chapter shall be for a period of 20 years, but shall be reviewed annually. A commission issuing such license shall state therein the person to whom such license is issued, the duration of such license, the location of the racing facility thereby licensed to be used for horse racing, and such other conditions of the license and related information as the commission shall deem proper. A commission shall have no power to modify the terms of a horse racing facility license, once issued, without the prior written consent of the holder of such license. A horse racing facility license shall be revocable by the commission only if the holder thereof shall not be in compliance with the provisions of this chapter or the valid rules, regulations, and orders of the commission and such noncompliance shall have continued for 60 days after written notice shall be given to such holder by the commission stating the circumstances of noncompliance and demanding corrective action.
(b) While any horse racing facility license or licenses theretofore issued by a commission shall remain in effect, such commission shall not issue (1) any other horse racing facility license with respect to the racing facility covered by the holder’s license or licenses already in effect, (2) any other horse racing facility license covering any other racing facility to be located in the commission municipal jurisdiction or (3) any license permitting the holder thereof to conduct horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon in the commission municipal jurisdiction or to own or operate any facility for horse racing or greyhound racing in such jurisdiction, without, in any such case, the duly authorized consent of the holder or holders of all horse racing facility licenses already in effect, which consent shall be obtained in writing prior to the issuance of any such other license.
(c) Any provisions of this chapter or any other law to the contrary notwithstanding, a commission may, at the time of the issuance of a horse racing facility license or at any time thereafter, enter into a contract with the holder of such license establishing restrictive conditions under which such commission may license any racing facility, whether for horse racing or greyhound racing, that would compete with the racing facility covered by the license of such holder, which conditions may, in the discretion of the commission, preclude the licensing of any competing racing facility while such holder’s license shall remain in effect. The provisions of any such contract between a commission and a horse racing facility licensee shall be deemed to be a part of the terms and conditions of the license granted to such licensee. Without in any way limiting the nature of the consideration that might be given by a licensee to make such contract binding, the obligations (including any future obligations) of any operator using the racing facility covered by such license to pay the state horse wagering fee and the commission horse wagering fee, together with the economic benefits to be derived by the state and such commission and its sponsoring municipality from the establishment and continued operation of a racing facility, shall be deemed sufficient consideration to make such contract binding upon the commission and any state racing commission. Any such contract between a commission and a horse racing facility licensee shall be binding upon such commission and any state racing commission at any time exercising jurisdiction over such commission or such licensee and shall not be impaired by any subsequent action of such commission or such state racing commission or by any act of the Legislature of Alabama which, through the authorization of another licensing entity or by any other means, would permit or encourage the establishment and operation of a competing racing facility in contravention of such contract.
(d) A commission may require a bond with surety acceptable to it in an amount sufficient to secure payment of any indebtedness anticipated to be incurred by a horse racing facility licensee to such commission in any year, but such bond shall not for any reason be set by the commission at an amount greater than the amount of indebtedness to be secured thereby.
*(Acts 1984, No. 84-131, p. 159, §17; Acts 1991, No. 91-187, p. 246, §15.)*
##### **§ 11-65-18** Application for Operator’s License {#sec-11-65-18 omnilex-key=us-al-statutes--title-11--11-65-18}
Depending upon the licensing authority granted a commission by elections held pursuant to subsection (a) or (b) of Section 11-65-4, a commission shall be empowered to grant operator’s licenses for horse racing and pari-mutuel wagering thereon or for greyhound racing and pari-mutuel wagering thereon. Any corporation, partnership, or other business entity desiring to obtain (i) an operator’s license to conduct horse racing and pari-mutuel wagering thereon at a racing facility located in the commission municipal jurisdiction or (ii) an operator’s license to conduct greyhound racing and pari-mutuel wagering thereon at a racing facility located in the commission municipal jurisdiction, either through issuance of such license by a commission or transfer of an outstanding license, shall file with the appropriate commission an application for such license. Such application may, but need not, be made in conjunction with an application for a horse racing facility license. Operator’s licenses shall separately authorize only the designated activity for which they were issued, but operator’s licenses for both horse racing and greyhound racing may be granted to the same licensee. Applications for both kinds of licenses may be submitted by an applicant at the same time, and in such case the commission shall review and decide both applications together. An application for an operator’s license shall be filed at the time and place prescribed by the commission and shall be in such form and contain such information as may be prescribed by the commission, including the following:
Anything contained in this section to the contrary notwithstanding, an applicant shall not be required to disclose, in connection with an application for an operator’s license, any confidential financial information, or any information concerning the exact percentage of ownership interests in such applicant held by various persons, that it would be entitled, as a licensee of the commission, to keep confidential under the provisions of subdivision (10) of Section 11-65-10, and to the extent that any such information is furnished to the commission by such applicant, or otherwise comes into the possession of the commission, it shall be kept confidential and shall be protected from public disclosure to the same extent as confidential information concerning a licensee is required to be protected from public disclosure pursuant to said subdivision (10).
Any application for the issuance or transfer of an operator’s license, whether for horse racing or greyhound racing, shall be verified by the oath or affirmation of an officer of the applicant and shall be accompanied by a nonrefundable fee of $10,000.00.
*(Acts 1984, No. 84-131, p. 159, §18; Acts 1991, No. 91-187, p. 246, §16.)*
##### **§ 11-65-19** Review of Application for Operator’s License {#sec-11-65-19 omnilex-key=us-al-statutes--title-11--11-65-19}
(a) A commission shall promptly consider any application for the issuance or transfer of an operator’s license submitted to it and shall grant or deny the issuance or transfer of such license based on all information before it, including the results of investigations it deems appropriate. A commission shall deny a license to any applicant unless it finds as follows:
(1) That such applicant is a business entity, whether a corporation, partnership, or other kind of organization, possessing the organizational substance, financial soundness, managerial capability, and business experience with racing and pari-mutuel wagering operations, or with businesses requiring similar managerial experience and skill, that, in the reasonable judgment of the commission, are necessary to conduct horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon, as the case may be, at the location for which an operator’s license is being sought;
(2) That the racing facility which is to be the location of the applicant’s prospective operations will be suitable for its intended purposes, whether horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon or both, and can be reasonably expected to provide the physical plant and location necessary for a successful operation, taking into account projected capital and operating costs, capacity, access, public appeal, and other relevant factors;
(3) That the applicant shall have made, or shall have committed to make, arrangements satisfactory to the commission for the detection and prosecution of any corrupt or fraudulent act, practice, or conduct in connection with all licensed activities, including utilization of the services of a protective agency acceptable to the commission; and
(4) That the applicant has a business plan for conducting horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon or both, as the case may be, in accordance with high standards of security, service, and accommodation to the public, as well as in accordance with such standards of the industry, whether horse racing or greyhound racing, that the commission reasonably considers to be appropriate for operations of the nature planned by the applicant, taking into account the size, location, and other relevant characteristics of the sponsoring municipality and its surrounding area.
(b) A commission shall deny the issuance or transfer of an operator’s license to any applicant unless it finds that more than 50 percent of both the ownership interest and the voting interest in the applicant (and the applicant’s general partner in the event the applicant is a limited partnership) is owned, directly or indirectly by persons who have a substantial presence in the state. For purposes of this subsection, a person shall be deemed to have a substantial presence in the state under any of the following circumstances:
(1) If a natural person, then such person has been domiciled in the state for at least 12 consecutive months prior to the date of the application for a license;
(2) If a corporation, then such corporation is incorporated under Title 10, or is incorporated under comparable laws of another state and is licensed or qualified to do business in the state and, in addition, satisfies one of the following alternative sets of conditions:
a. Such corporation has maintained its principal place of business, and has actively done business, in the state for at least 12 consecutive months prior to the date of application for a license, as evidenced either by the employment of at least 100 employees in the state or by the employment of $500,000.00 in assets held in the state during such period; or
b. More than 50 percent of both the ownership interest and the voting interest in such corporation is owned, directly or indirectly, by natural persons described in subdivision (b)(1), or by one or more corporations described in subdivision (b)(2)a, or by any combination of such natural persons and corporations;
(3) If a limited partnership, then such limited partnership is formed or registered under Title 10, and has maintained its principal place of business and at least 50 percent of its assets in the state for at least 12 consecutive months prior to the date of application for the license, and its general partner has maintained its principal place of business or residence in the state for at least 12 consecutive months prior to the date of such application;
(4) If a general partnership, then such partnership has maintained its principal place of business and at least 50 percent of its assets in the state for at least 12 consecutive months prior to the date of application for the license;
(5) If a financial institution, then such financial institution is a corporation or other legal entity doing business in the state as a bank, national banking association, state banking corporation, trust company, industrial or other loan company, building and loan association, or insurance company and has maintained its principal place of business in the state for at least 12 consecutive months prior to the date of application for the license;
(6) If a trust or custodianship, then at least 50 percent of the corpus of such trust or custodianship is situated in the state and the trustee or custodian of such property has a substantial presence in the state under any of the standards set forth in this subsection (b); or
(7) If an estate, then such estate is the estate of a person described in subdivision (b)(1), or at least 50 percent of the property of such estate consists of real estate located in the state or tangible personal property which has been located within the state for at least 12 consecutive months prior to the date of application for the license.
(c) The provisions of this section which permit an operator’s license to be granted only if more than 50 percent of both the ownership interest and the voting interest in the licensee is owned, directly or indirectly, by persons who have a substantial presence in the state shall not be construed (i) to impair the foreclosure rights of any mortgagee holding a mortgage on any racing facility owned, leased, or otherwise used by such licensee that secures debt incurred to finance the costs of constructing or purchasing such racing facility or (ii) to impair the rights of any mortgagee holding such a mortgage, or the rights of any other person, to which such racing facility may be sold in foreclosure, to take and hold title to such racing facility, to lease or sell the same, and to apply for and receive an operator’s license from the commission to conduct racing and pari-mutuel wagering activities at such racing facility upon compliance with all other applicable provisions of this chapter, irrespective of whether the aforesaid condition of substantial presence in the state shall be satisfied by persons owning, directly or indirectly, more than 50 percent of both the ownership interest and the voting interest in such mortgagee or in any person to which such racing facility shall be sold, as the case may be.
(d) A commission shall deny the issuance or transfer of an operator’s license to an applicant if it finds that for any reason the issuance or transfer of such license to such applicant would not be in the interests of the people of the sponsoring municipality or that the applicant, or any officer, general partner, or director of the applicant, (i) is a disqualified person, (ii) has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information called for in the application, or (iii) is not qualified to do business in the state or is not subject to the jurisdiction of the courts of the state.
*(Acts 1984, No. 84-131, p. 159, §19; Acts 1987, No. 87-615, p. 1069, §4; Acts 1991, No. 91-187, p. 246, §17.)*
##### **§ 11-65-20** Terms of Operator’s License {#sec-11-65-20 omnilex-key=us-al-statutes--title-11--11-65-20}
(a) An operator’s license issued under this chapter, whether for horse racing and pari-mutuel wagering thereon or for greyhound racing and pari-mutuel wagering thereon, shall be for an initial period of 20 years, but shall be subject to renewal as provided in this section. A commission shall have no power to modify the terms of an operator’s license, once issued, without the prior written consent of the holder of such license. An operator’s license shall be reviewed annually, but such license shall be revocable by the commission only if the holder thereof shall not be in compliance with the provisions of this chapter or the valid rules, regulations, and orders of the commission and such noncompliance shall have continued for 60 days after written notice shall be given to such holder by the commission stating the circumstances of noncompliance and demanding corrective action.
(b) A commission issuing an operator’s license shall state therein the person to whom such license is issued, the activity licensed thereby (namely, whether the license is to conduct horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon), the location of the racing facility where the licensed activity is to be conducted, the period during which such license shall be in effect, and such other conditions of the license and related information as such commission shall deem proper, subject to compliance with the provisions of this chapter.
(c) An operator’s license, whether for horse racing and pari-mutuel wagering thereon or greyhound racing and pari-mutuel wagering thereon, shall be renewable at the expiration of the original term for successive renewal terms of three years each without limit as to the number of such renewal terms that may be granted to the original licensee. Not more than 180 days nor less than 90 days prior to the expiration of the original term of an operator’s license, or the expiration of the renewal term for which such license shall have last been renewed, as the case may be, the holder of such license shall give written notice to the commission as to whether or not such holder will seek a renewal of such license. If the holder of an expiring operator’s license, whether for an original or a renewal term, states in such notice that it has no interest in seeking a renewal term, then the commission shall make such arrangements, consistent with the provisions of this chapter, to obtain a replacement licensee for the expiring license through open competition or such other selection process as the commission may deem desirable. If the holder of an expiring license states in such notice that it desires to renew the license for a renewal term, the commission shall require such holder to submit a new application for the operator’s license for such renewal term at least 60 days prior to the expiration of the current license, which application shall be in such form and shall contain such information as may be prescribed by the commission. The commission may require a licensee applying for a renewal term to provide the same information and to meet the same qualifications as would, at the time of such renewal application, be required of a successful applicant for an original operator’s license. The commission shall either grant or deny the requested renewal of the license within 30 days after receiving the application therefor, but the commission shall not deny the renewal of an operator’s license except for good cause. Without limiting the generality of the factors that may constitute good cause for denying the renewal of an operator’s license, it is hereby expressly provided that good cause shall include (i) chronic and repeated prior failures of such operator to comply with the provisions of this chapter as implemented by the rules, regulations and orders of the commission and (ii) the prior failure of such operator to exploit fully the economic potential of such license as evidenced by a limited schedule of racing programs, poor quality of racing programs, and poor attendance and participation in pari-mutuel wagering by the public. An operator’s license shall be renewed by a commission on the same terms as originally issued, except for such conditions as may be necessary to correct matters that would constitute good cause for denying the renewal of such license.
(d) The commission shall issue rules and regulations pursuant to which a horse racing operator or a greyhound racing operator, as the case may be, shall schedule racing programs to be conducted pursuant to the license held by such operator. An operator’s license, whether for horse racing or greyhound racing, shall entitle such operator to schedule racing programs on as many racing days during a calendar year as such operator, in the exercise of its business judgment, shall deem advantageous; provided that programs of horse racing or greyhound racing may not be scheduled for more than 310 racing days in any calendar year. The commission may require an operator to provide and update periodically the schedule of racing programs, whether horse racing or greyhound racing, that the operator proposes to conduct during each calendar year, but such schedule may, upon reasonable notice to the commission, be altered as often and to such extent as the operator deems necessary. A program of horse racing or greyhound racing, as the case may be, shall consist of such number of individual races of such kind as the operator may determine, and more than one program may be held on any racing day and scheduled at such time or times as the operator shall deem advantageous. If an operator holds both a license for horse racing and greyhound racing, different programs of live or simulcast horse racing and live or simulcast greyhound racing may be scheduled for separate times on the same racing day if the racing facility can accommodate, or be modified to accommodate, such different programs.
(e) Any program of horse racing and pari-mutuel wagering thereon or any program of greyhound racing and pari-mutuel wagering thereon that began before midnight of any racing day may be continued past midnight of the next calendar day to the end of the racing day in which such program began; provided, however, that the operator shall comply with all applicable general and local laws and county and municipal ordinances governing the times during which businesses serving the general public may sell food and alcoholic beverages and provide entertainment. No programs of horse racing and pari-mutuel wagering thereon nor programs of greyhound racing and pari-mutuel wagering thereon shall be permitted to commence on any Sunday or Christmas Day or Thanksgiving Day, but such prohibition shall not be interpreted to prohibit licensed activities during the final two hours of any preceding racing day.
(f) While any operator’s license or licenses for horse racing and pari-mutuel wagering thereon theretofore issued by a commission shall remain in effect, such commission shall not issue any other operator’s license for horse racing and pari-mutuel wagering thereon in the commission municipal jurisdiction without the duly authorized consent of the operator or operators holding all such operator’s licenses for horse racing already in effect, which consent shall be obtained in writing prior to the issuance of any such other operator’s license for horse racing. Likewise, while any operator’s license or licenses for greyhound racing and pari-mutuel wagering thereon theretofore issued by a commission shall remain in effect, such commission shall not issue any other operator’s license for greyhound racing and pari-mutuel wagering thereon in the commission municipal jurisdiction without the duly authorized consent of the operator or operators holding all such operator’s licenses for greyhound racing already in effect, which consent shall be obtained in writing prior to the issuance of any such other operator’s license for greyhound racing.
(g) Any provisions of this chapter or any other law to the contrary notwithstanding, a commission may, at the time of the issuance of an operator’s license to a horse racing operator or a greyhound racing operator, as the case may be, or at any time thereafter, enter into a contract with such operator establishing restrictive conditions under which such commission may license the conduct of horse racing or greyhound racing and pari-mutuel wagering thereon that would compete with the racing or wagering activities covered by the license of such operator, which conditions may, in the discretion of such commission, preclude the licensing of any competing racing events or activities while such operator’s license shall remain in effect. For purposes of any such contract, it is hereby expressly recognized that an operation conducting greyhound racing and pari-mutuel wagering thereon, in addition to competing with other greyhound racing operations, will, in economic effect, compete with any geographically proximate operation conducting horse racing and pari-mutuel wagering thereon. The provisions of any such contract between a commission and an operator shall be deemed to be a part of the terms and conditions of the operator’s license granted to such operator. Without in any way limiting the nature of the consideration that may be given by an operator to make any such contract binding, the obligations (including any future obligations) of any horse racing operator to pay the state horse wagering fee and the commission horse wagering fee, or the obligations of any greyhound racing operator to pay the state dog racing privilege tax and the commission greyhound wagering fee, together with the other economic benefits to be derived by the state and by the commission and its sponsoring municipality from the conduct of racing and pari-mutuel wagering activities, shall be deemed sufficient consideration to make such contract binding upon such commission and any state racing commission. Any such contract between a commission and an operator shall be binding upon such commission and any state racing commission at any time exercising jurisdiction over such commission or such operator and shall not be impaired by any subsequent action of such commission or such state racing commission or by any act of the Legislature of Alabama which, through the authorization of another licensing entity or by any other means, would permit or encourage the conduct of racing and wagering activities by persons other than such operator in contravention of such contract.
(h) In order to protect the continued viability of existing greyhound racing in Greene County and Macon County, a commission shall include in each operator’s license for greyhound racing issued pursuant to this chapter conditions, as and to the extent hereinafter provided, which prohibit or restrict advertising by such operator in the “protected territory” hereinafter respectively defined for Greene County and Macon County. The protected territory for Greene County shall comprise the entire state of Mississippi and the entire area of the following counties in Alabama: Marion, Lamar, Fayette, Pickens, Tuscaloosa, Bibb, Sumter, Greene, Hale, Perry, Dallas, Lowndes, Wilcox, Marengo, Choctaw, Washington, Clarke, and Monroe. The protected territory for Macon County shall comprise the entire area of the following counties of Alabama: Randolph, Chambers, Lee, Russell, Macon, Bullock, Montgomery, Lowndes, Butler, Crenshaw, Pike, Barbour, Henry, Dale, Coffee, Covington, Conecuh, Escambia, Geneva, and Houston. The license issued to an operator for greyhound racing shall prohibit such operator, or any person acting on its behalf, from advertising, in the protected territory of each of Greene County and Macon County, the existence of the greyhound racing operation covered by such license, the nature of the attraction or entertainment provided thereby or any other aspect, feature or circumstance of greyhound racing and pari-mutuel wagering thereon as conducted by such operator that has the purpose, intent or effect of inducing people to patronize such greyhound racing operation or any activity associated therewith.
(i) The advertising prohibited in the protected territory of each of Greene County and Macon County shall include, without limitation thereto, the following: (i) any advertising or solicitation by direct mail sent to addresses in the protected territory; (ii) any advertising or solicitation by telephone or other means of telecommunication directed to receiving devices located in the protected territory; (iii) any commercial messages broadcast from radio or television stations having either studio or transmission facilities located in the protected territory; (iv) any commercial messages transmitted by cable television to receiving units in the protected territory; (v) any advertising carried by newspaper, magazines, or other publications published at any location in the protected territory; and (vi) any billboards or other signs visible from public roads in the protected territory. Any provision of this chapter to the contrary notwithstanding, a greyhound racing operator shall not be deemed to violate the prohibition of its license against advertising in the protected territory as a result of any of the following occurrences: (1) the reception in the protected territory of radio or television transmissions which are broadcast by radio or television stations having neither studio nor transmission facilities in the protected territory and which contain information of any kind concerning the greyhound racing operation covered by such license, irrespective of whether such information consists of paid advertising, news stories, or other matter; (2) with respect to newspapers, magazines, and other publications, whether published at a location in or outside the protected territory, the delivery and sale in the protected territory of a publication containing a news article or other information concerning the greyhound racing operation covered by such license that does not constitute paid advertising; and (3) with respect to newspapers, magazines, and other publications that are not published at a location in the protected territory, the delivery and sale in the protected territory of magazines, newspapers, and other publications, whether pursuant to subscription, newsstand sales, or otherwise, which contain paid advertising concerning the greyhound racing operation covered by such license.
(j) The prohibition in the license of a greyhound racing operator against advertising in the protected territory of each of Greene County and Macon County shall continue for the initial term of the operator’s license and each renewal thereof; provided that if greyhound racing in either Greene County or Macon County shall be discontinued for a period of two consecutive years or more, then such greyhound racing operator shall be fully released from the prohibition against advertising in the protected territory of the county in which greyhound racing shall be so discontinued, and the resumption of greyhound racing in such county after a period of discontinuance of two years or more shall not cause such prohibition to be reinstated against such greyhound racing operator. A commission issuing a license for greyhound racing shall have the duty to enforce the prohibition against advertising in the protected territory of Greene County and Macon County as and to the same extent that it is bound to enforce other terms and conditions of an operator’s license issued pursuant to this chapter; provided that Greene County or Macon County, or the racing commission of either county, or any licensee of either such commission, or any citizen, taxpayer, or other interested party in either such county may, without waiting for enforcement action by the commission issuing such operator’s license, bring a civil action for the enforcement of such prohibition, by way of injunctive relief or claim for damages or both, in the circuit court of the host county or of any other county in the state where a violation of the prohibition shall have occurred.
(k) A commission issuing an operator’s license may require a bond with surety acceptable to it in an amount sufficient to secure payment of any indebtedness anticipated to be incurred by the holder of such license to such commission in any year, but such bond shall not for any reason be set by the commission at an amount greater than the amount of indebtedness reasonably anticipated to be secured thereby.
*(Acts 1984, No. 84-131, p. 159, §20; Acts 1991, No. 91-187, p. 246, §18.)*
##### **§ 11-65-21** Suspension or Revocation of License {#sec-11-65-21 omnilex-key=us-al-statutes--title-11--11-65-21}
A commission may suspend or revoke any license or fine the holder thereof not to exceed $5,000.00 after hearing with 15 days’ notice in any case where it has reason to believe that any regulation of the commission has not been complied with or has been violated. Annually, each commission shall review the performance of each licensee for compliance with the provisions of this chapter and the rules and regulations of such commission. Deliberations of a commission under this section may be conducted in executive session, unless otherwise requested by the licensee. If any such license is suspended or revoked, the commission shall state its reason for doing so, which shall be entered of record. Such action shall be final unless appealed in accordance with the provisions of this chapter.
*(Acts 1984, No. 84-131, p. 159, §21.)*
##### **§ 11-65-22** Acquisition of Interest in Horse Racing Facility Licensee or Operator {#sec-11-65-22 omnilex-key=us-al-statutes--title-11--11-65-22}
(a) A disqualified person may not acquire or hold an interest in a horse racing facility licensee or an operator. A commission may require that a disqualified person dispose of its interest in a horse racing facility licensee or an operator within a reasonable period of time provided that (i) the commission shall determine at a hearing that the owner of such interest is a disqualified person and (ii) the person who is alleged to be a disqualified person shall receive notice of and an opportunity to be heard at such hearing. Any person aggrieved by an action of a commission pursuant to this section may appeal to the circuit court of the host county pursuant to Section 11-65-12.
(b) Any person desiring to acquire stock in, a partnership or other ownership interest in, or to become an owner or member of, any entity which holds a horse racing facility license or an operator’s license hereunder who, after giving effect to such acquisition, becomes the beneficial owner of more than five percent of the total outstanding stock of, or interest in, such entity, shall apply to the commission which issued any such license on a form prescribed by it for approval of such acquisition or membership. The commission shall consider such application forthwith, and may, if it finds it necessary, demand additional information concerning the proposed acquirer or transferee of stock or other interest or the proposed member, as the case may be. If in the judgment of the commission the person making such application is a disqualified person, or the acquisition or transfer of stock or other interest or membership in an entity holding a horse racing facility license or an operator’s license would be detrimental to the public interest, to the honesty and integrity of horse racing or greyhound racing, or to the reputation of either thereof, then, in any such case, the application shall be denied. If the application is not denied within 60 days, it shall be deemed approved.
(c) If the district attorney of the host county shall have reason to believe, either because of information gained by his own investigation or because of information brought to his attention by others, that a disqualified person has acquired and continues to hold stock or any other interest in a horse racing facility licensee or an operator, the district attorney shall give written notice of such belief to the commission having jurisdiction over such licensee or operator and shall state in such notice the identity of the alleged disqualified person and such other information as shall justify an investigation by the commission into whether the person identified in such notice is a disqualified person and whether such person has acquired and continues to hold stock or any other interest in a horse racing facility licensee or an operator. If, within a period of 30 days after receipt of such notice from the district attorney, the commission does not conduct any such investigation, or if, after having commenced any such investigation within said period of 30 days, the commission ultimately determines that the person who is the subject of such investigation is not a disqualified person or has not acquired and does not hold any stock or other interest in a horse racing facility licensee or an operator, then, in either of such cases, the district attorney shall have the right to institute proceedings in the circuit court of the host county (1) to determine whether such person is a disqualified person and whether such person has acquired and continues to hold stock or any other interest in a horse racing facility licensee or an operator and (2) to enforce the provisions of this chapter which prohibit any disqualified person from acquiring or holding an interest in such licensee or operator. Upon any showing of clear and convincing evidence that any person is a disqualified person and has acquired and continues to hold stock or any other interest in a horse racing facility licensee or an operator, the circuit court shall order such disqualified person to dispose of such stock or other interest within a reasonable period of time.
(d) In determining a reasonable period of time for the disposition by a disqualified person of any stock or other interest in a horse racing facility licensee or an operator, the commission or the circuit court, as the case may be, shall take into account the facts and circumstances which justify the determination that the owner of such stock or other interest is a disqualified person, and if the status of any disqualified person results from any event or condition referred to in any of subparagraphs a, b, c, or d of Section 11-65-2(a)(11), the commission or the circuit court, as the case may be, shall order the disposition of such stock or other interest as quickly as shall be consistent with justice, and if either the commission or the circuit court determines that such disqualified person intentionally violated the provisions of this chapter prohibiting the acquisition of such stock or other interest, the disposition of the same may be ordered without delay regardless of the fact that such immediate disposition may cause substantial economic loss to such disqualified person.
(e) The district attorney shall cooperate fully with the commission in any investigation or proceeding undertaken by the commission pursuant to notice given to the commission by the district attorney. The commission shall cooperate fully with the district attorney in any investigation undertaken or proceeding instituted by the district attorney in consequence of the failure of the commission to take action pursuant to a notice given by the district attorney or to determine that the person who is the subject of such notice is not a disqualified person or has not acquired and does not hold any stock or other interest in a horse racing facility licensee or an operator.
(f) Whether in connection with the operation of a racing facility or any other business of a horse racing facility licensee or an operator or any affiliate thereof, such licensee or operator shall not employ, or cause to be employed, the spouse or child of any member of the Legislature, any state constitutional officer, or any elected official of the host county or the sponsoring municipality. Members of the Legislature and elected officials of the host county or the sponsoring municipality shall not acquire any ownership interest in a horse racing facility licensee or any operator nor shall any business or professional entities owned, in whole or in part, by such legislators or officials sell any goods or provide any services for such licensee or operator; provided that the preceding provisions of this sentence shall not be construed to require any such legislator or official to sell or otherwise dispose of any investment securities representing an ownership interest in a horse racing facility licensee or an operator if such securities were acquired in a public offering or for value in a market transaction which, in either case, was consummated prior to the effective date of this subsection.
(g) Anything contained herein to the contrary notwithstanding, the provisions of this section and Section 11-65-2(a)(11) are hereby expressly declared to be severable from the other provisions of this chapter, and if such provisions of this chapter are determined by any court of competent jurisdiction to be invalid for any reason, such determination shall not affect, impair or invalidate the remaining provisions of this chapter.
*(Acts 1984, No. 84-131, p. 159, §22; Acts 1987, No. 87-615, p. 1069, §5; Acts 1991, No. 91-187, p. 246, §19.)*
##### **§ 11-65-23** Permits Required for Certain Individuals and Companies {#sec-11-65-23 omnilex-key=us-al-statutes--title-11--11-65-23}
No person, firm, corporation, or partnership shall participate in any horse racing or greyhound racing subject to the jurisdiction of a commission or in the conduct of any racing event or pari-mutuel wagering thereon, whether as a horse owner, greyhound owner, trainer, jockey, exercise boy, groom, stable foreman, kennel foreman, valet, veterinarian, agent, pari-mutuel employee, concessionaire, or employee thereof, or as an employee of the operator, or enter the racetrack enclosure for either horse racing or greyhound racing in any capacity other than as a spectator, unless such person or the firm, corporation or partnership employing such person possesses a permit therefor from the commission and complies with the provisions of this chapter and all reasonable rules and regulations of such commission. No permit issued under this section shall be transferable.
The provisions of this section which require a concessionaire (other than the operator) to obtain a permit from the commission in order to operate a business selling food, beverages, souvenirs or other merchandise to persons attending racing events shall not be construed to permit the commission to charge a concessionaire any license or permit fees measured by its gross revenues or to derive any economic benefit from the operations of such concessionaires other than the permit fees authorized by Section 11-65-24, it being expressly provided that the horse racing facility licensee and the operators for each racing facility shall have the exclusive rights (as they may by contract allocate such rights among themselves) to determine the business conditions under which concessionaires shall operate at racing facilities under the jurisdiction of the commission and to retain all moneys (except for the commission’s permit fee as aforesaid) which any concessionaire is willing to pay for the privilege of conducting business at such racing facilities.
*(Acts 1984, No. 84-131, p. 159, §23; Acts 1991, No. 91-187, p. 246, §20.)*
##### **§ 11-65-24** Application for Permit {#sec-11-65-24 omnilex-key=us-al-statutes--title-11--11-65-24}
Any person, firm, corporation, or partnership desiring to obtain a permit as required by this chapter shall make application therefor on a form prescribed by the appropriate commission. Each individual applicant and each principal of any firm, chief executive officer of any corporation, and managing partner of any partnership applying for a permit for such firm, corporation, or partnership, as the case may be, shall be photographed and fingerprinted and shall supply such information as such commission may require. All information contained in, or submitted in support of, any application for a permit shall be confirmed by an affidavit of the person or persons making such application, whether such application shall be made on behalf of such person or persons or on behalf of a firm, corporation, or partnership. Any application for a permit made by an individual who seeks to work at a racing facility under the jurisdiction of a commission and any application for a permit made by a firm, corporation, or partnership that seeks to provide services or sell merchandise at such racing facility, as the case may be, shall include a statement as to whether such individual, or any owner, principal, officer, director, or partner of such firm, corporation, or partnership, or any employee of such firm, corporation, or partnership who will actually work at such racing facility, has ever been convicted of a felony or other offense involving moral turpitude. Any firm, corporation, or partnership which has previously received an effective permit from a commission to provide services or sell merchandise at a racing facility shall, as a condition of maintaining such permit, file with such commission supplemental information (including the statement described in the preceding sentence) concerning any new or additional owners, principals, officers, directors, or partners of such firm, corporation, or partnership, as the case may be, or any new or additional employees thereof who will actually work at such racing facility.
A commission shall be entitled to charge fees for permits according to such schedule as it shall adopt from time to time, and in addition to the fee that it may charge a firm, corporation, or partnership having employees at a racing facility under its jurisdiction, it may charge a separate fee for each individual employee of such firm, corporation, or partnership working at such racing facility; provided, however, that (1) the permit fee for any one firm, corporation, or partnership shall not exceed $1,000.00 in any period of one year and (2) the permit fee for any individual shall not exceed $50.00 in any period of one year, regardless of whether such individual is self-employed or is employed by a firm, corporation, or partnership also paying a permit fee.
*(Acts 1984, No. 84-131, p. 159, §24.)*
##### **§ 11-65-25** Review of Applications for Permits {#sec-11-65-25 omnilex-key=us-al-statutes--title-11--11-65-25}
A commission shall promptly consider any application for a permit submitted to it and shall issue or deny such permit based on the information in the application and all other information before it, including the results of any investigation it deems appropriate. If an application for a permit is approved, the commission approving such application shall issue a permit which shall be valid for one year and shall contain such information as the commission deems appropriate.
A commission shall deny any such application and refuse to issue a permit, which denial shall be final unless an appeal is taken under the provisions of this chapter, if it finds that the issuance of such permit to the applicant therefor would not be in the interest of the applicant, the people of the sponsoring municipality, or the integrity or reputation of the horse racing industry or the greyhound racing industry in the sponsoring municipality, or that the applicant:
(1) Has knowingly made a false statement of a material fact in the application or has deliberately failed to disclose any information called for by the application;
(2) Is or has been guilty of any corrupt or fraudulent practice or conduct in connection with any horse racing or greyhound racing activity in the state or any other state;
(3) Has failed to comply with the provisions of this chapter or the reasonable rules and regulations of the commission;
(4) Has had a permit to engage in an activity related to horse racing or greyhound racing denied for just cause, suspended, or revoked in any other state, and such denial, suspension, or revocation is still in effect; or
(5) Is unqualified to perform the duties required for the permit sought.
No commission shall have the right to delay or deny the issuance of a permit for any reason other than findings made pursuant to this section concerning the integrity, suitability, or other relevant qualifications of the person applying for such permit. No commission shall use its power to withhold any permit as a means of obtaining concessions from an operator with respect to any matter under the jurisdiction of a commission that may be the subject of disagreement or controversy between the commission and such operator, including, without limitation, scheduling of racing programs, dissatisfaction with any contract of such operator submitted for the commission’s approval, or access to confidential information concerning such operator that is not required to be disclosed. If any permit is neither granted by the commission, nor expressly denied by the commission on the basis of findings made in accordance with this section, nor the application therefor withdrawn by the person seeking such permit, in any such case within 30 days after the submission of the application for such permit, such application shall be deemed approved and the commission shall forthwith issue such permit to the person applying therefor; provided, however, that any permit issued pursuant to such deemed approval shall be subject to suspension or revocation by the commission pursuant to Section 11-65-26 on the basis of facts or information subsequently coming to the attention of the commission that were not available to it at the time of such deemed approval.
*(Acts 1984, No. 84-131, p. 159, §25; Acts 1991, No. 91-187, p. 246, §21.)*
##### **§ 11-65-26** Suspension or Revocation of Permit {#sec-11-65-26 omnilex-key=us-al-statutes--title-11--11-65-26}
A commission may suspend or revoke a permit issued under this chapter or fine the holder of such permit not to exceed $1,000.00, after hearing with 15 days’ notice to such holder, in any case where it has reason to believe that any provision of this chapter, or any reasonable rule or regulation of the commission, has not been complied with or has been violated. The commission may revoke such permit, after such hearing, if it finds that facts not known by it at the time it considered the application for such permit indicate that such permit should not have been issued. Deliberations of a commission concerning the suspension or revocation of a permit may be conducted in executive session unless otherwise requested by the holder of such permit. If any permit is suspended or revoked, the commission shall state its reasons for so doing and shall enter the same in the permanent records of its proceedings. The suspension or revocation of a permit shall be final unless an appeal is taken in accordance with the provisions of this chapter.
*(Acts 1984, No. 84-131, p. 159, §26.)*
##### **§ 11-65-27** Licenses Required for Stewards and Judges of Races; Appointment of Stewards and Judges {#sec-11-65-27 omnilex-key=us-al-statutes--title-11--11-65-27}
Any person desiring to act as a steward for any horse race conducted by a horse racing operator licensed by a commission pursuant to this chapter must obtain a steward’s license from such commission. Likewise, any person desiring to act as a judge for any greyhound race conducted by a greyhound racing operator licensed by a commission pursuant to this chapter must obtain a judge’s license from such commission. Each commission shall require each applicant for a steward’s license or a judge’s license, as the case may be, to pass one or more examinations on matters relating to the duties of stewards or judges. Such examinations shall be prepared and administered in accordance with rules and regulations to be adopted by the commission. The commission may establish other requirements, in addition to successful completion of such examinations, which must be met by any applicant in order to obtain a steward’s license or a judge’s license, as the case may be, including, without limitation, payment of reasonable license fees. Any steward’s license or judge’s license issued by a commission pursuant to this chapter shall have a term not exceeding two years, provided that the term of any such license may be extended or renewed at the option of the commission.
Three licensed stewards shall be appointed to supervise each program of horse racing conducted by a horse racing operator licensed pursuant to this chapter. Two of such stewards shall be appointed by the commission licensing such operator and one shall be appointed by such operator. Such stewards shall exercise such powers and perform such duties for each program of horse racing as may be prescribed by the rules and regulations of the licensing commission. The horse racing operator shall pay the wages and other employment costs of the steward whom it shall appoint, and the commission shall pay the wages and other employment costs of the two stewards whom it shall appoint.
Three licensed judges shall be appointed to supervise each program of greyhound racing conducted by a greyhound racing operator licensed pursuant to this chapter. Two of such judges shall be appointed by the commission licensing such operator and one shall be appointed by such operator. Such judges shall exercise such powers and perform such duties for each program of greyhound racing as may be prescribed by the rules and regulations of the licensing commission. The greyhound racing operator shall pay the wages and other employment costs of the judge whom it shall appoint, and the commission shall pay the wages and other employment costs of the two judges whom it shall appoint.
*(Acts 1984, No. 84-131, p. 159, §27; Acts 1991, No. 91-187, p. 246, §22.)*
##### **§ 11-65-28** Pari-Mutuel Wagering {#sec-11-65-28 omnilex-key=us-al-statutes--title-11--11-65-28}
(a) Pari-mutuel wagering conducted by an operator shall be conducted in accordance with the provisions of this section. An operator shall provide a place or places at the racing facility operated by it at which such operator shall conduct a pari-mutuel system of wagering by its patrons on the results of horse races or greyhound races, as the case may be, held at such racing facility. Such place or places shall be provided with the electronic or mechanical equipment necessary to issue pari-mutuel tickets, as well as the electronic or mechanical equipment necessary to record the wagering, compute the odds, and determine the awards to winning bettors, all in an accurate and speedy manner. All such equipment shall be approved by the commission licensing such operator before being used, but such commission shall not require the installation of any particular make of such equipment.
(b) Subject to the provisions of subsection (c), a horse racing operator shall distribute to the winners of each pari-mutuel pool originated for horse races the total amount wagered with respect to that pool, less the following deductions, as in the case may be applicable, to be retained by such operator as the “takeout” for its own use and purposes, including the payment of the wagering fees imposed by this chapter:
(1) In the case of any pari-mutuel pool where the bettor is required to select one horse, there shall be deducted an amount equal to 17 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool;
(2) In the case of any pari-mutuel pool where the bettor is required to select two horses, there shall be deducted an amount equal to 21 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool; and
(3) In the case of any pari-mutuel pool where the bettor is required to select three or more horses, there shall be deducted an amount equal to 23 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool.
In addition to the amounts permitted by the preceding provisions of this subsection to be deducted from all pari-mutuel pools originated for horse races and retained by the horse racing operator conducting such races, such operator shall be permitted to retain all moneys represented by unclaimed, uncashed, or abandoned pari-mutuel tickets; provided, however, that no pari-mutuel ticket shall be deemed to be unclaimed, uncashed, or abandoned unless it shall not be presented for payment within six months from the date of the running of the race to which such pari-mutuel ticket pertains.
(c) During any period in which a horse racing operator shall be required to pay the state horse wagering fee, such operator shall have the right to increase the “take out” deduction permitted by subsection (b) by any amount up to one percent of the total amount wagered with respect to any pari-mutuel pool originated for horse races, any provisions of this chapter, or any other law to the contrary notwithstanding. It is hereby expressly declared that this right is conferred upon each horse racing operator licensed by a commission for the purpose of enabling such operator to generate all or part of the money necessary to pay the state horse wagering fee, and any increase in the amount deducted by an operator from any pari-mutuel pools pursuant to the exercise of such right shall not be made the basis of any increase in the state horse wagering fee, the commission horse wagering fee, or any other taxes, fees, or commissions payable by such operator. No increase in the amount deducted from any pari-mutuel pool shall be permitted pursuant to this subsection until such time as a horse racing operator shall become liable for the state horse wagering fee, but thereafter, and for so long as such operator shall remain liable for the state horse wagering fee, the right conferred by this subsection to increase the amount deducted may be exercised at any time and from time to time (including the right to institute an increase and thereafter discontinue and resume it any number of times), may be exercised with respect to all pari-mutuel pools originated for horse races or with respect to some and not to others, and may be exercised with respect to any qualifying pari-mutuel pool in any degree of increase, not exceeding in any case more than one percent of the total amount wagered with respect to that pool, all as such operator shall determine in the exercise of its sole discretion without direction or influence from the commission licensing such operator, any state racing commission or any other governmental body.
(d) A greyhound racing operator shall distribute to the winners of each pari-mutuel pool originated for greyhound races the total amount wagered with respect to that pool, less the following deductions, as in the case may be applicable, to be retained by such operator as the “takeout” for its own use and purposes, including the payment of the state dog racing privilege tax and the commission greyhound wagering fee:
(1) In the case of any pari-mutuel pool where the bettor is required to select one greyhound, there shall be deducted an amount equal to 17 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool;
(2) In the case of any pari-mutuel pool where the bettor is required to select two greyhounds, there shall be deducted an amount equal to 21 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool; and
(3) In the case of any pari-mutuel pool where the bettor is required to select three or more greyhounds, there shall be deducted an amount equal to 23 percent of the total amount wagered with respect to that pool plus the breakage applicable to the winning bets for that pool.
In addition to the amounts permitted by the preceding provisions of this subsection to be deducted from all pari-mutuel pools originated for greyhound races and retained by the greyhound racing operator conducting such races, such operator shall be permitted to retain all moneys represented by unclaimed, uncashed, or abandoned pari-mutuel tickets; provided, however, that no pari-mutuel ticket shall be deemed to be unclaimed, uncashed, or abandoned unless it shall not be presented for payment within six months from the date of the running of the race to which such pari-mutuel ticket pertains. The provisions of Section 40-26A-2(c) relating to the state dog racing privilege tax to the contrary notwithstanding, a greyhound racing operator shall not be entitled to increase to 19 percent the “takeout” deduction specified in subdivision (d)(1) for pari-mutuel pools where the bettor is required to select one greyhound. Nothing contained in Section 40-26A-2(c) shall be construed to require the “takeout” deduction specified in subdivision (d)(2) to be reduced to 19 percent or the “takeout” deduction specified in subdivision (d)(3) to be reduced to 21 percent.
(e) A commission shall adopt and maintain rules and regulations for each kind of pari-mutuel pool that may be originated by a horse racing operator or a greyhound racing operator, as the case may be, and such rules and regulations shall be published by such commission in book or pamphlet form for general distribution to all interested persons. Under the pari-mutuel system of wagering hereby authorized, an operator shall be permitted to provide separate pools for bets to win, place, and show, as well as separate pools for more complex wagers involving such combinations of races and such combinations of the outcomes of races as shall be approved by the commission licensing such operator. Each pool (less the amount that the operator is permitted to retain as the “takeout” pursuant to the provisions of this section) shall be distributed separately to the winners thereof in accordance with the rules and regulations of the governing commission for that kind of pari-mutuel pool. If there is no ticket bet on the winning horse or greyhound or combination of horses or greyhounds, as the case may be, for any pari-mutuel pool, the portion of the pool which would have been distributed to any winners thereof shall be distributed to the holders of the tickets for such pool in accordance with the rules and regulations of the governing commission for that kind of pari-mutuel pool.
*(Acts 1984, No. 84-131, p. 159, §28; Acts 1984, 2nd Ex. Sess., No. 85-45, §1; Acts 1991, No. 91-187, p. 246, §23.)*
##### **§ 11-65-28.1** Modification of Takeout for All Racing Events {#sec-11-65-28.1 omnilex-key=us-al-statutes--title-11--11-65-28.1}
In order to provide a uniform takeout for pari-mutuel wagering on racing events that reflects the competitive pressure on pari-mutuel wagering from other forms of gambling in surrounding states, and to enable any racetrack in a Class 1 municipality (a “Class 1 racetrack”) to maximize its participation in combined pools with other racetracks both inside and outside the State of Alabama, the Legislature hereby finds and determines that it is necessary and desirable to authorize the uniform takeout hereinafter provided for pari-mutuel pools wagered by bettors present at a Class 1 racetrack, notwithstanding the provisions of Sections 11-65-28 and 40-26A-2, which sections are hereby superseded to the extent that their provisions purport to govern the takeout at a Class 1 racetrack in a manner inconsistent with the provisions of this section. Subject to the continued effectiveness of the provisions of Section 11-65-32.1, including particularly those provisions related to adjustment of the takeout for combined pools, the total takeout allowed to the racing operator of a Class 1 racetrack for all pari-mutuel pools wagered at such racetrack on live horse or greyhound racing events conducted at such racetrack and for all pari-mutuel pools wagered at such racetrack on horse or greyhound racing events conducted elsewhere and received by television at such racetrack, before deducting any state or local wagering taxes or fees, shall be twenty-five percent (25%) of the total amount wagered in such pools by bettors present at the Class 1 racetrack, irrespective of the number or combination of racing contestants selected by the bettors.
*(Act 98-128, p. 188, §1.)*
##### **§ 11-65-29** State Horse Wagering Fee {#sec-11-65-29 omnilex-key=us-al-statutes--title-11--11-65-29}
No license tax, fee, or equivalent charge shall be levied by the state against horse racing or pari-mutuel wagering thereon licensed and regulated by a commission during a period beginning with April 5, 1984, and continuing until the fifth anniversary of the date on which racing events shall first be conducted under the jurisdiction of such commission. Beginning with such fifth anniversary of the date on which racing events shall first be conducted under the jurisdiction of a commission, and continuing thereafter for so long as such commission shall continue in existence, each horse racing operator licensed by such commission shall pay to the Department of Revenue of the state (or such other department or agency of the state as may be provided by law) a state horse wagering fee in an amount equal to one percent of the horse racing handle of such operator. The state horse wagering fee shall be paid in installments referable to the calendar months during which racing events shall be conducted by a horse racing operator, and the installment referable to any calendar month shall be an amount equal to one percent of the horse racing handle of such operator for such calendar month and shall be paid to the Department of Revenue of the state (or such other department or agency of the state as may be provided by law) prior to the end of the next succeeding calendar month. The Department of Revenue of the state (or other collecting department or agency of the state) is hereby authorized to promulgate and enforce such rules and regulations, not inconsistent with the provisions of this chapter, as shall be reasonably necessary for the determination and collection of the state horse wagering fee. The Department of Revenue of the state (or other collecting department or agency of the state) may require a bond with surety acceptable to it in an amount determined by it to be sufficient to cover the maximum liability for the state horse wagering fee that may at any time be incurred by an operator. All installments of the state horse wagering fee collected by the Department of Revenue shall be deposited in the State Treasury to the credit of the State General Fund.
The Legislature hereby finds and determines that the state horse wagering fee authorized by this chapter is the maximum license fee or equivalent tax or charge which can be levied by the state against horse racing or pari-mutuel wagering thereon without impairing the economic viability of horse racing and lessening its contribution to increased employment and tourism in the state. No state racing commission shall have the power to increase the state horse wagering fee above the limits provided in this chapter, to impose the state horse wagering fee for any period not herein authorized, or to levy or impose any additional license fee or equivalent tax or charge against horse racing or pari-mutuel wagering thereon conducted under the provisions of this chapter.
*(Acts 1984, No. 84-131, p. 159, §29; Acts 1991, No. 91-187, p. 246, §24.)*
##### **§ 11-65-30** Commission Wagering Fees {#sec-11-65-30 omnilex-key=us-al-statutes--title-11--11-65-30}
(a) Each horse racing operator shall pay to the treasurer of the commission licensing such operator a commission horse wagering fee for each calendar year during which it conducts any horse racing events. The amount of the commission horse wagering fee for an operator for a given calendar year shall be equal to the sum of (i) two percent of the horse racing handle of such operator for such calendar year to the extent that such handle does not exceed $150,000,000.00 and (ii) four percent of the portion of the horse racing handle of such operator for such calendar year that exceeds $150,000,000.00. Each operator shall make payment of its commission horse wagering fee for each calendar year to the treasurer of the licensing commission in monthly installments. For each calendar year, the monthly installment referable to any month (other than the month during which the final racing event for such calendar year shall be conducted) shall be equal to two percent of the horse racing handle for such month. The monthly installment referable to the month during which the final racing event for any such calendar year shall be conducted shall be equal to the sum of (i) two percent of the horse racing handle for such month and (ii) two percent of the portion of the aggregate horse racing handle for such calendar year in excess of $150,000,000.00. The installment of the commission horse wagering fee referable to any calendar month shall be paid to the treasurer of the commission prior to the end of the next succeeding calendar month.
(b) If at any time during a calendar year the aggregate horse racing handle of an operator for such calendar year exceeds $150,000,000.00, then such operator shall, in order to assure the availability of the moneys required to pay the final installment of its commission horse wagering fee for such calendar year, set aside and invest moneys in an amount equal to two percent of the portion of such aggregate horse racing handle in excess of $150,000,000.00 in investments of the kind in which the funds of a commission are permitted by Section 11-65-9 to be invested by its treasurer. Any such investments acquired by an operator shall be held by it in trust for the benefit of the commission licensing such operator in order to secure the payment of the commission horse wagering fee, but the operator shall be entitled to any interest earned from such investments until the due date of the final installment of the commission horse wagering fee for such calendar year.
(c) Each greyhound operator shall pay to the treasurer of the commission licensing such operator a commission greyhound wagering fee for each calendar year during which it conducts any greyhound racing events. The amount of the commission greyhound wagering fee for a greyhound racing operator for a given calendar year shall be determined as follows:
Each operator shall make payment of its commission greyhound wagering fee for each calendar year to the treasurer of the licensing commission in monthly installments. For each calendar year, the monthly installment referable to any month (the “subject month”) shall be determined in accordance with the following procedure: first, determine whether, as a result of the passage of time from the commencement of greyhound racing by such operator, the provisions of subdivision (c)(1) or (c)(2) apply to such calendar year; second, determine the cumulative amount of the greyhound racing handle of such operator for the months of such calendar year preceding the subject month; third, determine the amount of the greyhound racing handle of such operator for the subject month; fourth, using the cumulative amount of the handle for the preceding months as a benchmark, allocate the handle for the subject month among the annual brackets specified in subdivision (c)(1) or (c)(2), whichever is applicable; and fifth, calculate the commission greyhound wagering fee for the subject month by applying the percentage applicable to each bracket to the portion of the handle for the subject month allocated to such bracket. The installment of the commission greyhound wagering fee referable to each calendar month shall be paid to the treasurer of the commission prior to the end of the next succeeding calendar month.
No commission shall have the power to increase the commission horse wagering fee or the commission greyhound wagering fee above the limits provided in this chapter or to levy or impose any additional license fee or equivalent tax or charge against horse racing or greyhound racing and pari-mutuel wagering thereon conducted under the provisions of this chapter.
*(Acts 1984, No. 84-131, p. 159, §30; Acts 1991, No. 91-187, p. 246, §25.)*
##### **§ 11-65-30.1** Commission Greyhound Racing Days {#sec-11-65-30.1 omnilex-key=us-al-statutes--title-11--11-65-30.1}
(a) During each calendar year, a greyhound racing operator shall be required to designate three racing days (“commission racing days”) on which such operator will conduct a performance or program of greyhound racing and will pay to the commission the “gross profit” (as hereafter defined in this section) derived by the operator on such days from greyhound racing and pari-mutuel wagering thereon, including the sale of food, drink, programs and other items to the public in attendance and charges made for parking. In the event that a greyhound racing operator conducts greyhound racing for only part of a calendar year, one racing day shall be required for each period of four months or portion thereof in which such operator conducts greyhound racing during such calendar year. A greyhound racing operator shall be required to designate and conduct four commission racing days in any calendar year, beginning with the calendar year next succeeding the first full calendar year of greyhound racing conducted by an operator under license from the commission, with respect to which the greyhound racing handle in the next preceding year was less than $150,000,000.00. The commission racing days designated by the greyhound racing operator shall be subject to approval by the commission, which approval shall not be unreasonably withheld. The commission racing days shall be spaced at intervals during the calendar year so that all will not occur in the same calendar season. The greyhound racing operator will give written notice to the commission of the commission racing days proposed for a calendar year not later than 30 days after the beginning of such calendar year. The commission may approve the proposed commission racing days or make a counter proposal to the greyhound racing operator for different days and, in connection therewith, shall state its reasons for desiring different days. If the commission’s counter proposal is not acceptable to the greyhound racing operator, the commission and the operator shall negotiate in good faith to determine mutually acceptable commission racing days for the current calendar year, but if agreement cannot be reached as the year continues, the operator shall be released from the obligation to hold one commission racing day for every four months that elapse from the beginning of such year (or one commission racing day for every three months in calendar years entitled to four commission racing days). The commission shall be prohibited from taking any regulatory action with respect to the greyhound racing operator for the purpose of coercing agreement on commission racing days demanded by the commission.
(b) As used with reference to a commission racing day, the term “gross profit” shall mean the amount computed by taking all revenues derived by the greyhound racing operator from greyhound racing conducted on such day (including the authorized “takeout” deductions from pari-mutuel pools, the proceeds from the sale of food, drink, programs, and other goods to the public in attendance, and parking charges) and deducting therefrom the sum of the following:
Any greyhound racing operator conducting a commission racing day shall remit the gross profits of such day to the treasurer of the commission prior to the end of the month next succeeding that month in which the commission racing day occurs. Such payment shall be accompanied by supporting financial information showing the calculation of the gross profits, including revenues and allowable costs by appropriate category.
(c) All revenues derived by a commission from a commission racing day, including both the gross profits and the commission greyhound wagering fee referable to such day, shall, in the discretion of the commission, be included in the net commission revenues and disbursed in accordance with the provisions of Section 11-65-36 or, alternatively, sequestered in a separate fund, against which no charge shall be allowed for any part of the commission’s operating expenses, and disbursed to one or more public or governmental entities or nonsectarian charitable organizations (i.e., organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986) that were identified as beneficiaries of such revenues prior to the date of such commission racing day. The commission shall adopt appropriate rules and regulations for evaluating and selecting public entities or charitable organizations to be beneficiaries of commission racing days.
*(Acts 1991, No. 91-187, p. 246, §26.)*
##### **§ 11-65-31** Purses for Horse Races and Greyhound Races {#sec-11-65-31 omnilex-key=us-al-statutes--title-11--11-65-31}
From the moneys deposited in pari-mutuel pools for horse races which constitute the “takeout” deducted by a horse racing operator pursuant to Section 11-65-28(b), each horse racing operator shall apply an amount equal to seven percent of its total horse racing handle to provide purse moneys for horse races conducted by such operator. Prior to the commencement of any race meeting, the horse racing operator conducting such meeting shall estimate the amount of its horse racing handle to be derived from such meeting. Based upon such estimate, the horse racing operator shall adopt a schedule providing for a reasonable allocation of purse moneys over the period of the anticipated race meeting. Any such schedule may be amended from time to time during the course of a race meeting if it becomes apparent that the operator’s actual horse racing handle for such race meeting will not match its original estimate.
Each horse racing operator shall provide the commission licensing such operator with periodic reports respecting the amounts applied by such operator to provide purse moneys for horse races. If at the close of any race meeting it is determined that the operator conducting such meeting failed to apply an amount equal to seven percent of its horse racing handle for such meeting to provide purse moneys, then any excess shall be deducted from, and any deficiency shall be added to, the amount which such operator shall be required to provide as purse moneys for horse races conducted as part of its next succeeding race meeting.
The amount of purses to be paid with respect to greyhound races conducted by any greyhound racing operator shall be determined by such operator through negotiation with the kennel owners providing the greyhounds for such races. Nothing contained in this chapter shall be construed to require, or to permit the commission by regulation or order to require, any minimum level of purses for greyhound racing, whether based on a percentage of the greyhound racing handle or any other benchmark, or to limit, or to permit the commission by regulation or order to limit, the amount that a greyhound racing operator may agree to pay for such purposes.
*(Acts 1984, No. 84-131, p. 159, §31; Acts 1991, No. 91-187, p. 246, §27.)*
##### **§ 11-65-32** Televised Simulcast Programming of Racing Events {#sec-11-65-32 omnilex-key=us-al-statutes--title-11--11-65-32}
(a) A commission shall have the power to adopt rules and regulations specifying the conditions under which an operator, as part of its licensed activity, may cause televised simulcast programming of racing events, including both horse racing and greyhound racing, held at racetracks located outside the state to be transmitted for public viewing to a racetrack facility within the sponsoring municipality which is under the jurisdiction of such commission and there made the subject of pari-mutuel wagering. Any provision of this chapter or any other law to the contrary notwithstanding, no racing events, including both horse racing and greyhound racing, held at any location in the state (including a location in the sponsoring municipality) shall be televised to a racing facility subject to this chapter and made the subject of pari-mutuel wagering at such racing facility; provided, however, that an operator may use closed circuit television at a racing facility to provide enhanced viewing opportunities for live races being simultaneously run at such facility or to provide reruns of such live races. Subject to such exceptions as a commission may approve by rule or regulation in order to satisfy applicable requirements of federal law, all pari-mutuel wagering with respect to such racing events that are the subject of televised simulcast programming shall be subject to the provisions of this chapter and the rules and regulations of such commission governing pari-mutuel wagering on live racing events conducted at racing facilities under the jurisdiction of such commission, including the provisions of Sections 11-65-28, 11-65-29 and 11-65-30 hereof. A commission shall be entitled to no revenues from the televised simulcast programming of racing events other than (i) the commission horse wagering fee due with respect to that part of the horse racing handle wagered on televised horse racing events by bettors placing their bets at a racing facility in the commission municipal jurisdiction and (ii) the commission greyhound wagering fee due with respect to that part of the greyhound wagering handle wagered on televised greyhound racing events by bettors placing their bets at a racing facility in the commission municipal jurisdiction.
(b) If permitted by federal law and made possible by contractual arrangements with the operator of the racetrack that originates the simulcast programming, a horse racing operator may conduct pari-mutuel wagering on horse racing events televised to a racetrack facility in the commission municipal jurisdiction from locations outside the state. In such case the pari-mutuel pools for such wagering may be limited to bets made by bettors placing their bets at the racing facility located in the commission municipal jurisdiction or, alternatively, such pari-mutuel pools may include bets made by bettors placing their bets at the racetrack which conducts the televised horse racing events, as well as bets made by bettors placing their bets at one or more locations outside the state; provided that to the extent bettors placing their bets at a racing facility located in the commission municipal jurisdiction shall participate in such pari-mutuel pools, the total amount wagered by such bettors shall be administered in accordance with the provisions of Section 11-65-28 and the applicable rules and regulations of the commission and, provided further, that the state horse wagering fee and the commission horse wagering fee, as well as any other license taxes on pari-mutuel wagering that may at the time be applicable in the state or the commission municipal jurisdiction, shall be paid with respect to the total amount wagered by such bettors, as provided by this chapter or other applicable law.
(c) If permitted by federal law and made possible by contractual arrangements with the operator of the racetrack that originates the simulcast programming, a greyhound racing operator may conduct pari-mutuel wagering on greyhound racing events televised to a racetrack facility in the commission municipal jurisdiction from other locations outside the state. In such case the pari-mutuel pools for such wagering may be limited to bets made by bettors placing their bets at the racing facility located in the commission municipal jurisdiction or, alternatively, such pari-mutuel pools may include bets made by bettors placing their bets at the racetrack which conducts the televised greyhound racing events, as well as bets made by bettors placing their bets at one or more locations outside the state; provided that to the extent bettors placing their bets at a racing facility located in the commission municipal jurisdiction shall participate in such pari-mutuel pools, the total amount wagered by such bettors shall be administered in accordance with the provisions of Section 11-65-28 and the applicable rules and regulations of the commission and, provided further, that the state dog racing privilege tax and the commission greyhound wagering fee, as well as any other license taxes on pari-mutuel wagering that may at the time be applicable in the state or the commission municipal jurisdiction, shall be paid with respect to the total amount wagered by such bettors, as provided by this chapter or other applicable law.
(d) A commission shall also have the power to adopt rules and regulations specifying the conditions under which an operator, as part of its licensed activity, may cause televised simulcast programming of racing events, including both horse racing and greyhound racing, held at a racetrack facility under the jurisdiction of such commission to be either (i) transmitted on a live or delayed basis by a commercial television or radio station or network for the entertainment of the public or (ii) transmitted to specific locations outside the state for the purpose of pari-mutuel wagering at such locations: provided that, any provision of this chapter or any other law to the contrary notwithstanding, no racing events, including both horse racing and greyhound racing, shall be televised from a racing facility subject to this chapter to any other location in the state (including a location in the sponsoring municipality) and made the subject of pari-mutuel wagering at such other location.
(e) A horse racing operator may televise horse racing events under the jurisdiction of a commission to locations outside the state and, in connection therewith, may create and administer pari-mutuel pools for wagering on such horse racing events which, in addition to bets made by bettors placing their bets at the racing facility of such operator in the commission municipal jurisdiction, shall include bets made by bettors placing their bets at one or more of such locations to which such horse racing events are televised; subject, however, to the following conditions: (i) the simulcast programming and televising of horse racing events from any racing facility under the jurisdiction of a commission shall be subject to the rules and regulations of the commission; (ii) to the extent that bettors placing their bets at the racing facility under the jurisdiction of the commission participate in such pari-mutuel pools, the total amount wagered by such bettors shall be administered in accordance with the provisions of Section 11-65-28 and the applicable rules and regulations of the commission; (iii) the state horse wagering fee and the commission horse wagering fee shall be paid as provided in this chapter with respect to the total amount wagered by bettors placing their bets at a racing facility in the commission municipal jurisdiction; and (iv) the commission horse wagering fee and the state horse wagering fee shall not be applicable to amounts contributed to such pari-mutuel pools by bettors placing their bets at locations outside the state.
(f) A greyhound racing operator may televise greyhound racing events under the jurisdiction of a commission to locations outside the state and, in connection therewith, may create and administer pari-mutuel pools for wagering on such greyhound racing events which, in addition to bets made by bettors placing their bets at the racing facility of such operator in the commission municipal jurisdiction, shall include bets made by bettors placing their bets at one or more of such locations to which such greyhound racing events are televised; subject, however, to the following conditions: (i) the simulcast programming and televising of greyhound racing events from any racing facility under the jurisdiction of a commission shall be subject to the rules and regulations of the commission; (ii) to the extent that bettors placing their bets at the racing facility under the jurisdiction of the commission participate in such pari-mutuel pools, the total amount wagered by such bettors shall be administered in accordance with the provisions of Section 11-65-28 and the applicable rules and regulations of the commission; (iii) the state dog racing privilege tax and the commission greyhound wagering fee shall be paid as provided in this chapter with respect to the total amount wagered by bettors placing their bets at a racing facility in the commission municipal jurisdiction; and (iv) the state dog racing privilege tax and the commission greyhound wagering fee shall not be applicable to amounts contributed to such pari-mutuel pools by bettors placing their bets at locations outside the state.
(g) Nothing contained in this section or any other provision of this chapter shall be construed to authorize or make lawful “off-track betting” or wagering or gambling of any kind at any location in the state other than the pari-mutuel facilities located at racetrack facilities where live racing is licensed by a commission. All laws of the state, whether local or general, and all ordinances of political subdivisions thereof, that prohibit, restrict or regulate wagering or gambling of any kind outside the commission municipal jurisdiction shall not be affected by this chapter, as amended, and shall remain in full force and effect, it being expressly provided and understood that this chapter shall permit, subject to the conditions herein provided, pari-mutuel wagering on racing events only at a racing facility located in a sponsoring municipality where live horse racing or greyhound racing is licensed by a commission.
*(Acts 1984, No. 84-131, p. 159, §32; Acts 1991, No. 91-187, p. 246, §28.)*
##### **§ 11-65-32.1** Televised Racing and Pari-Mutuel Wagering; Pari-Mutuel Pools and Takeout; Construction {#sec-11-65-32.1 omnilex-key=us-al-statutes--title-11--11-65-32.1}
(a) Televised Racing Events in Alabama and Pari-Mutuel Wagering Thereon. The provisions of Section 11-65-32 to the contrary notwithstanding, any person now or hereafter licensed by a racing commission in a Class 1 municipality (the “commission”) to conduct live horse racing or live greyhound racing and pari-mutuel wagering on either thereof (the “racing operator”) shall have the right, subject to the reasonable regulatory authority of the commission, (1) to cause live horse racing events and live greyhound racing events conducted at the racetrack in such Class 1 municipality (the “Class 1 racetrack”) to be transmitted by television to racetracks located elsewhere in the State of Alabama (as well as to the locations in other states and foreign countries permitted by said Section 11-65-32) and there made available for public viewing and pari-mutuel wagering thereon and (2) to cause televised horse racing events and greyhound racing events held at racetracks located elsewhere in the State of Alabama (as well as at locations in other states and foreign countries permitted by said Section 11-65-32) to be received at the Class 1 racetrack and there made available for public viewing and pari-mutuel wagering thereon.
(b) Combined Pari-Mutuel Pools and Takeout for Televised Racing Events. With respect to horse or greyhound racing events that are conducted at the Class 1 racetrack and are transmitted by television to other locations, the racing operator may create and administer pari-mutuel pools that, in addition to bets made by bettors at the Class 1 racetrack, include bets made by bettors at one or more of the locations receiving the televised racing events. With respect to horse or greyhound racing events that are conducted at racetracks other than the Class 1 racetrack and are received by television at the Class 1 racetrack, the racing operator may participate in pari-mutuel pools, created and administered by the racetrack conducting the televised events, that include bets made by bettors at the Class 1 racetrack as well as bets made by bettors at the racetrack conducting the televised events and at other locations receiving the televised events. Pari-mutuel pools that include bets made by bettors at both the Class 1 racetrack and other locations are herein referred to as “combined pools.” The amount allowed to the racing operator as the “takeout” with respect to pari-mutuel pools bet at the Class 1 racetrack on horse or greyhound racing events that are received by television from elsewhere shall be the same as the takeout that would be allowed by applicable law on the same kind of pari-mutuel pools bet on live racing at the Class 1 racetrack; provided, however, that with respect to any horse or greyhound racing events received by television at the Class 1 racetrack, the racing operator, in order to enable bettors at the Class 1 racetrack to participate fully in combined pools, may adjust the takeout for bets placed at the Class 1 racetrack to match the takeout required for the combined pools administered by the operator of the racetrack conducting the live racing events that are transmitted by television to the Class 1 racetrack.
(c) Construction of Section. Nothing in this section shall be construed (1) to permit or make lawful “off-track betting” or gambling of any kind at any location in Alabama other than a racetrack where pari-mutuel wagering on live racing events may be lawfully conducted or (2) to permit racing events to be transmitted or received by television, or pari-mutuel wagering to be conducted with respect to televised racing events, at any racetrack in Alabama other than the Class 1 racetrack, unless such activities at such other racetrack are also authorized by the particular racing act or other separate law applicable to such other racetrack.
*(Acts 1997, No. 97-190, p. 300, §§1-3.)*
##### **§ 11-65-33** Racetrack Admission Fee {#sec-11-65-33 omnilex-key=us-al-statutes--title-11--11-65-33}
The governing body of a sponsoring municipality may by ordinance impose a fee on an operator licensed under this chapter to conduct either horse racing or greyhound racing in an amount equal to $.25 on each person paying for admission to any daily performance of horse racing or greyhound racing. The operator may collect the amount of such fee from the ticket purchaser in addition to the amount charged for the ticket of admission. Persons holding valid permits issued by a commission who are actually employed at a racing facility under the jurisdiction of such commission and spectators holding complimentary passes issued by an operator shall be exempt from the admission fee authorized by this section.
*(Acts 1984, No. 84-131, p. 159, §33; Acts 1991, No. 91-187, p. 246, §29.)*
##### **§ 11-65-34** Horse Breeding Fund {#sec-11-65-34 omnilex-key=us-al-statutes--title-11--11-65-34}
Each commission shall establish a special fund to promote the breeding, raising, and racing of horses in the state, which shall be known as “The _______ [name of the sponsoring municipality] Racing Commission Breeding and Development Fund.” Each horse racing operator shall pay to its licensing commission a breeding fund fee for each month during which it conducts any horse racing events. For each horse racing operator, the breeding fund fee for any month shall be an amount equal to one-half of one percent [or, in the case of any such fee referable to any month during the period of three years immediately following such operator’s receipt of an operator’s license, one-quarter of one percent] of the horse racing handle for such operator for such month. The breeding fund fee payable by a horse racing operator for a given month shall be paid to the treasurer of the commission licensing such operator before the end of the succeeding month. All breeding fund fees received by a commission shall be deposited into its breeding fund.
Twenty percent of the aggregate amount of breeding fund fees received by each commission in each calendar year shall be set aside for distribution to the schools of veterinary medicine of Auburn University and Tuskegee Institute. Each commission shall distribute the moneys so set aside on such schedule as shall be administratively reasonable and convenient, but in any event all such moneys referable to the breeding fund fees received in any calendar year shall be distributed not later than 60 days after the end of such calendar year. Each commission shall divide the 20 percent of the breeding fund fees required to be set aside for the schools of veterinary medicine at Auburn University and Tuskegee Institute between such schools in an equitable manner, taking into account the number of students served by each school, the financial needs of each school to maintain accepted academic standards, the nature and quality of equine research conducted at each such school and such other factors as such commission shall deem relevant in the circumstances; provided, however, that neither of such schools of veterinary medicine shall receive less than 25 percent of the total amount required to be set aside by the provisions of this paragraph in any calendar year. All moneys distributed to the schools of veterinary medicine at Auburn University or Tuskegee Institute pursuant to this paragraph shall be used exclusively for supportive research on the health and diseases of the horse.
Each commission shall adopt rules and regulations governing the maintenance and administration of its breeding fund and the disbursement of the moneys deposited therein, provided that such moneys may be used only for the purposes specified in the next preceding paragraph of this section and for the following additional purposes:
(1) To provide awards to breeders and owners of Alabama-bred horses finishing first, second, third, or fourth in pari-mutuel races run in the state;
(2) To provide awards to stallion owners whose Alabama stallions have sired Alabama-bred horses finishing first, second, third, or fourth in pari-mutuel races run in the state;
(3) To provide purse moneys for races conducted exclusively for Alabama-bred horses under conditions which have been approved by such commission;
(4) To advance and promote the breeding and raising of horses in the state by the publication and dissemination of information relating thereto;
(5) To promote equine research through grants to universities within the state; and
(6) To provide for the administration and management of such breeding fund.
Nothing contained in this chapter shall be construed to obligate any greyhound racing operator to pay any amount referable to the greyhound racing handle as a breeding fund fee.
*(Acts 1984, No. 84-131, p. 159, §34; Acts 1991, No. 91-187, p. 246, §30.)*
##### **§ 11-65-35** Concerning Certain Taxes {#sec-11-65-35 omnilex-key=us-al-statutes--title-11--11-65-35}
The state horse wagering fee, the commission horse wagering fee, and any other fees or taxes imposed by this chapter shall constitute all license, privilege, and excise taxes that may be imposed on horse racing and pari-mutuel wagering thereon conducted pursuant to this chapter, and no other license or excise tax may be imposed on such activities by the state or any county, municipality, or other political subdivision thereof. The state dog racing privilege tax, the commission greyhound wagering fee, and any other fees or taxes imposed by this chapter shall constitute all license, privilege, and excise taxes that may be imposed on greyhound racing and pari-mutuel wagering thereon conducted pursuant to this chapter, and no other license, privilege, or excise tax may be imposed on such activities by the state or any county, municipality, or other political subdivision thereof. Nothing in this chapter, however, shall be construed to confer any exemption with respect to any uniform taxes levied generally on property, income, or business activity, including, without limitation, (1) income taxes levied by the state, (2) occupational taxes levied on wages by a sponsoring municipality or host county, (3) ad valorem taxes levied on any racing facility at the same rates as are applicable to other commercial property having comparable market value, and (4) state and local sales taxes on merchandise sold by operators or their concessionaires at racing events.
*(Acts 1984, No. 84-131, p. 159, §35; Acts 1991, No. 91-187, p. 246, §31.)*
##### **§ 11-65-36** Application of Net Commission Revenues {#sec-11-65-36 omnilex-key=us-al-statutes--title-11--11-65-36}
All commission horse wagering fees, commission greyhound wagering fees, and other fees, commissions, and moneys, including fines and forfeitures, to which a commission shall be entitled under the provisions of this chapter shall be paid to the treasurer of such commission and shall be deposited by said treasurer to the account of such commission. Except for the gross profits of any commission racing day and the commission greyhound wagering fee referable to greyhound racing on such day that may be set aside for specific public entities or charitable organizations pursuant to Section 11-65-30.1(c), all such moneys to which a commission shall be entitled that remain after (i) the payment of all expenses incurred in the administration of this chapter, including (without limitation thereto) the payment of the salaries and expenses of the members and employees of such commission, and (ii) the deposit into the breeding fund of all amounts required by Section 11-65-34 hereof to be deposited therein shall be allocated and paid not less frequently than once each calendar year as follows:
(1) Nineteen percent of the net commission revenues shall be allocated to the sponsoring municipality; provided however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, of the amount allocated to such municipality a sum equal to one percent of the net commission revenues shall be set aside for the retired employees of such municipality and shall be paid to the trustees of such municipality’s retirement system for distribution to such retired employees once a year, during the Christmas season if practicable, with an equal amount to be paid to each retired employee irrespective of the amount of his or her regular retirement benefits, the length of his or her employment by such municipality before retirement, or any other factor;
(2) Ten percent of the net commission revenues shall be allocated in total to the county or counties in which the sponsoring municipality or any part thereof shall be located, subject to the conditions that
a. If the sponsoring municipality is located in more than one county, the portion of the said 10 percent of net commission revenues allocated to each such county shall be determined in proportion to the population of the sponsoring municipality residing in such county as determined by the most recent federal decennial census,
b. One-half of the amount of net commission revenues allocated to any county shall be used for countywide purposes (including both incorporated and unincorporated areas) in such manner as shall be determined by the governing body of such county, and
c. One-half of the amount of net commission revenues allocated to any county shall be used to defray the cost of governmental operations conducted in the unincorporated parts of such county or shall otherwise be used for the exclusive benefit of the unincorporated parts of such county in such manner as shall be determined by the governing body thereof;
(3) If the Board of Trustees of the University of Alabama operates a college, graduate school, extension center, or other educational facility located in any county in which the sponsoring municipality or any part thereof shall be located, nine percent of the net commission revenues shall be allocated to the Board of Trustees of the University of Alabama, subject to the conditions that
a. Such amount shall be used exclusively in the county or counties in which the sponsoring municipality or any part thereof shall be located;
b. One-twelfth of the amount of net commission revenues allocated to the Board of Trustees of the University of Alabama shall be used for the support of any programs operated for the correction or treatment of learning disorders of any kind or research into the causes of such disorders, and if no such programs are operated by the Board of Trustees of the University of Alabama in the county or counties in which the sponsoring municipality or any part thereof shall be located, such portion of the net commission revenues shall be used in such county or counties for such other purposes or programs as may be determined by said board of trustees, and
c. One-twelfth of the amount of net commission revenues allocated to the Board of Trustees of the University of Alabama shall be used for the support of any programs or laboratories operated for research in virology, and if no such programs or laboratories are operated by the Board of Trustees of the University of Alabama in the county or counties in which the sponsoring municipality or any part thereof shall be located, such portion of the net commission revenues shall be used in such county or counties for such other purposes or programs as may be determined by said board of trustees;
(4) Three percent of the net commission revenues shall be allocated in total to Jefferson State Community College;
(5) Three percent of the net commission revenues shall be allocated in total to Lawson State Community College;
(6) Two percent of the net commission revenues shall be allocated in total to public technical colleges located in the county or counties in which the sponsoring municipality or any part thereof shall be located; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the two percent of the net commission revenues referred to in this paragraph shall be allocated in its entirety to Bessemer State Technical College;
(7) One percent of the net commission revenues shall be allocated to any public corporation or authority which provides public transportation in an area including the sponsoring municipality;
(8) Seventeen percent of the net commission revenues shall be allocated in total to all county, municipal, district, or other public school systems operating primary and/or secondary schools in any county or counties in which the sponsoring municipality shall be located; and if there shall be more than one of such school systems, the said seventeen percent of the net commission revenues shall be allocated to such school systems in proportion to their average daily attendance during the most recently completed school year;
(9) If any incorporated municipalities other than the sponsoring municipality are located in the county or counties in which the sponsoring municipality or any part thereof shall be located, four and one-half percent of the net commission revenues shall be allocated in total to such other municipalities; and if there shall be more than one of such municipalities, the said four and one-half percent of the net commission revenues shall be allocated to such municipalities in proportion to their population as determined by the most recent federal decennial census;
(10) Four percent of the net commission revenues shall be allocated in total to any public fire districts or volunteer fire departments organized and operating in the county or counties in which the sponsoring municipality or any part thereof shall be located; and if there shall be more than one of such fire districts or volunteer fire departments, the said four percent of the net commission revenues shall be allocated among such fire districts and volunteer fire departments in proportion to the approximate number of single family residences and other buildings provided fire protection thereby, which number in the case of a public fire district shall be the paid membership thereof and in the case of a volunteer fire department shall be a census of the number of protected residences and other buildings confirmed by affidavit of the chief executive of such volunteer fire department;
(11) Two percent of the net commission revenues shall be allocated in total to any hospitals which are owned by any county, municipality, or public corporation or authority, which are located in the county or counties in which the sponsoring municipality shall be located and which serve predominantly poor and indigent patients; and if there shall be more than one of such hospitals, the said two percent of the net commission revenues shall be allocated to such hospitals in proportion to their average patient census during the most recently completed annual period selected by the commission for the purpose of making such allocation;
(12) One and one-half percent of the net commission revenues shall be allocated to the Tannehill Furnace and Foundry Commission established pursuant to Sections 41-9-320 through 41-9-330;
(13) One-half of one percent of the net revenues shall be allocated to the Alabama State Fair Authority established pursuant to Act No. 215 enacted at the 1947 Regular Session of the Legislature of Alabama;
(14) One-half of one percent of the net commission revenues shall be allocated in total to public bodies that operate art museums in the sponsoring municipality; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the one-half of one percent of the net commission revenues referred to in this paragraph shall be allocated in its entirety to the Birmingham Museum of Art; and
(15) If and to the extent that the allocations of net commission revenues described in this subdivision can be lawfully made to recipients satisfying the applicable conditions as herein set forth, the commission shall allocate and disburse the following percentages of the net commission revenues for the following purposes:
a. Three percent of the net commission revenues shall be allocated in total to private, not-for-profit colleges which are located in the host county and the student enrollment of which is predominantly drawn from economically disadvantaged minorities;
b. Three percent of the net commission revenues shall be allocated in total to private, not-for-profit law schools which are located in the host county and the student enrollment of which is predominantly drawn from economically disadvantaged minorities; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the three percent of the net commission revenues referred to in paragraph a. of this subdivision shall be allocated in its entirety to Miles College and the three percent of the net commission revenues referred to in this paragraph b. shall be allocated in its entirety to the Law School of Miles College;
c. One percent of the net commission revenues shall be allocated in total to not-for-profit organizations, whether public or private, that are located in the sponsoring municipality and that promote economic development in the sponsoring municipality and the surrounding metropolitan area; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the one percent of the net commission revenues referred to in this paragraph shall be allocated in its entirety to the metropolitan development board;
d. Six percent of the net commission revenues shall be allocated in total to private, not-for-profit hospitals located in the sponsoring municipality that primarily provide care for children;
e. Two percent of the net commission revenues shall be allocated in total to not-for-profit organizations, whether public or private, which are located in any county in which the sponsoring municipality or any part thereof shall be located and which sponsor, promote, or conduct research and education related to the cure or control of sickle cell anemia or provide treatment or other aid for victims of that disease;
f. One and one-half percent of the net commission revenues shall be allocated in total to not-for-profit organizations (including any particular branch thereof) which are located in the sponsoring municipality and which provide educational and recreational activities for young persons predominantly belonging to economically disadvantaged minorities; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, one percent of the net commission revenues referred to in this paragraph shall be allocated to Partners in Neighborhood Growth and the remaining one-half percent of the net commission revenues referred to in this paragraph shall be allocated to the Fourth Avenue Center of the Young Men’s Christian Association;
g. One percent of the net commission revenues shall be allocated to the local chapter or affiliate of The National Urban League that is based in the sponsoring municipality;
h. One percent of the net commission revenues shall be allocated to the local chapter or affiliate of the United Cerebral Palsy Association, Inc., that is based in the sponsoring municipality;
i. One percent of the net commission revenues shall be allocated in total to not-for-profit organizations (including any local chapter or affiliate) which sponsor and support research for the prevention or correction of birth defects and which are located in any county in which the sponsoring municipality or any part thereof shall be located; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the one percent of the net commission revenues referred to in this paragraph shall be allocated in its entirety to the March of Dimes Birth Defects Foundation-North Alabama Chapter;
j. One and one-half percent of the net commission revenues shall be allocated in total to not-for-profit organizations which provide shelter, care and counselling for abused and neglected women and children and which are located in any county in which the sponsoring municipality or any part thereof shall be located; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, one percent of the net commission revenues referred to in this paragraph shall be allocated to Prescott House, Inc., and the remaining one-half percent of the net commission revenues referred to in this paragraph shall be allocated to the Child Advocacy Center in Bessemer;
k. One percent of the net commission revenues shall be allocated in total to not-for-profit organizations which operate orphanages for abandoned or mentally disturbed children and which are located in the sponsoring municipality; provided, however, if any commission shall be created pursuant to this chapter for which the sponsoring municipality shall be the City of Birmingham, then, and in such case, the one percent of the net commission revenues referred to in this paragraph shall be allocated in its entirety to the Gateway Orphanage operated by Family and Child Services;
l. One-half of one percent of the net commission revenues shall be allocated to the Alabama Symphony Orchestra; and
m. One-half of one percent of the net commission revenues shall be allocated in total to not-for-profit organizations which provide shelter and care for abandoned or abused animals and which are located in the county or counties in which the sponsoring municipality or any part thereof shall be located; and if there shall be more than one county in which such an organization or organizations exists, the said one-half of one percent of the net commission revenues shall be allocated among such counties in proportion to their population as determined by the most recent federal decennial census; and the amount so allocated to each county shall be apportioned among qualifying organizations in each such county in accordance with the commission’s determination of need and merit, taking into account the number of animals handled by each such organization during the most recent calendar year.
Except as may herein be specifically provided otherwise, if there shall at any time exist more than one institution or organization which qualifies for a portion of any generic allocation of net commission revenues made pursuant to any of paragraphs a. through m. inclusive, of subdivision (15), then, and in such case, a commission shall apportion such allocation among all institutions or organizations which evidence to such commission (in such manner as it shall reasonably require) their respective qualifications to receive a portion of such allocation. Any such allocation shall be apportioned among the qualifying institutions and organizations of each generic category in an equitable manner to be determined by the commission, taking into account the relative scale of activities of each qualifying institution or organization, the number of persons served thereby or other relevant factors. A commission shall have reasonable discretion in determining whether, in the light of the legislative intent, a particular institution or organization shall be entitled to an allocation of any portion of the net commission revenues pursuant to the provisions of this section.
A commission and the individual members thereof shall be fully protected against any charge of malfeasance in relying upon an opinion of the Attorney General of the State of Alabama that a portion of the net commission revenues may be lawfully allocated and paid to any institution or organization pursuant to any of the provisions of subdivision (15), unless a court of competent jurisdiction shall declare invalid the allocation of net commission revenues to any such institution or organization.
If any allocation of any portion of the net commission revenues pursuant to any provision of this section cannot be made for any reason (including, without limitation thereto, the legal invalidity of the provisions of this chapter authorizing such allocation, lack of lawful authority by a commission to make such allocation, the nonexistence of any public body or any public or private institution or organization entitled to receive such allocation, or any other failure to satisfy the conditions of such allocation), then, and in such case, the failure of such allocation shall not impair the validity or effectiveness of any part of this chapter other than the provisions hereof specifically providing for such allocation, nor shall the failure of such allocation adversely affect any other allocation of net commission revenues under this chapter. Any portion of the net commission revenues that, for any reason, cannot be allocated in accordance with the specific provisions of any of subdivisions (1) through (15) shall be apportioned among those governmental bodies, institutions and organizations actually receiving lawful allocations hereunder in proportion to the respective amounts of net commission revenues which would have been allocated to such governmental bodies, institutions and organizations if there had been no need to reallocate any net commission revenues that could not be allocated in accordance with the specific provisions of said subdivisions (1) through (15).
It is hereby expressly declared that the primary purpose of this chapter is to provide a means for permitting and regulating horse racing and pari-mutuel wagering thereon and greyhound racing and pari-mutuel wagering thereon in Class 1 municipalities and, further, that it is not a primary purpose of this chapter to provide funds for the various governmental bodies and public or private institutions and organizations to which allocations of portions of the net commission revenues of each commission are made pursuant to this section. The Legislature recognizes that one or more of such governmental bodies, institutions, or organizations may not exist in the sponsoring municipality or in the surrounding county or counties, as the case may be, and that, even if the intended recipients do exist and satisfy the applicable conditions, any one or more of such allocations of the net commission revenues may fail because of legal invalidity or other reasons. The allocations of net commission revenues made pursuant to this section represent the legislative effort to confer an incidental benefit upon a wide spectrum of governmental and charitable activities, all of which may not be present in the same degree in every Class 1 municipality subject to this chapter. Therefore, the legal invalidity or other failure of one or more allocations of net commission revenues made pursuant to this section should not impair the general validity of this chapter or prevent the provisions hereof, other than those relating to the invalid or ineffective allocations, from being implemented as a coherent whole. If and to the extent that any allocation of net commission revenues made to any governmental body or any institution or organization is of such character as to cause this chapter to be a local act, it is the legislative intent that the provisions for such allocation be severed from this chapter and thereby prevented from causing this chapter to be a local act.
*(Acts 1984, No. 84-131, p. 159, §36; Acts 1991, No. 91-187, p. 246, §32.)*
##### **§ 11-65-37** Conducting Race Without License Prohibited; Wagering on Certain Races Prohibited {#sec-11-65-37 omnilex-key=us-al-statutes--title-11--11-65-37}
Any person who, directly or indirectly, holds any horse race or greyhound race without having procured an operator’s license as prescribed in this chapter shall be guilty of a misdemeanor. Any person wagering upon the results of such a race, except in the case of pari-mutuel wagering conducted by an operator in accordance with the provisions of this chapter, shall be guilty of a misdemeanor. Upon conviction of any of the above misdemeanors in a court of competent jurisdiction, the penalty shall be a fine of not less than $1,000.00, nor more than $10,000.00, or imprisonment of not less than ten days nor more than six months, or both, such fine and imprisonment to be in the discretion of the court.
*(Acts 1984, No. 84-131, p. 159, §37; Acts 1991, No. 91-187, p. 246, §33.)*
##### **§ 11-65-38** Disqualification Due to Gambling Activities {#sec-11-65-38 omnilex-key=us-al-statutes--title-11--11-65-38}
No person who engages in the practice of professional gambling on horse races or greyhound races, or in the practice of making gambling or wagering books on such races, or who knowingly takes any part in such practice, shall be eligible as an applicant for any horse racing facility license or any operator’s license to conduct horse racing or greyhound racing and pari-mutuel wagering thereon under the provisions of this chapter, or to be connected with such licensed activities in any capacity, and any corporation, partnership, or other entity which has an officer, director, stockholder, partner, or executive or who employs any person who engages in such practices shall likewise be ineligible as a licensee, and each commission is hereby empowered to inquire into such matters in entertaining any such application and otherwise in administering this chapter.
*(Acts 1984, No. 84-131, p. 159, §38; Acts 1991, No. 91-187, p. 246, §34.)*
##### **§ 11-65-39** Tampering with Racing Animals Prohibited {#sec-11-65-39 omnilex-key=us-al-statutes--title-11--11-65-39}
No person shall influence or have any understanding or connivance with (i) any owner, trainer, jockey, driver, groom, or other person associated with or interested in any stable, horse, or race in which any horse participates, or (ii) any owner, trainer, handler, groom, or other person associated with or interested in any kennel, greyhound or race in which any greyhound participates, to prearrange or predetermine the results of any horse race or greyhound race, nor shall any person stimulate or depress a horse or greyhound, for the purpose of affecting the results of a race, by use of any electrical device or any electrical equipment or by any mechanical or other device not generally accepted as regulation racing equipment, nor shall any person stimulate or depress a horse or greyhound through the administration of any drug or chemical, or knowingly enter any horse or greyhound in any race within a period of 24 hours after any drug or chemical has been administered to such horse or greyhound, for the purpose of increasing or retarding the speed of such horse or greyhound.
No person shall, except for medical purposes, administer any poison, drug, medicine, or other substance to any horse or greyhound entered or about to be entered in any race, or expose such substance to a horse or greyhound with the intent that it be taken, or cause any foreign substance to be taken by or placed upon or in the body of such horse or greyhound, with intent to impede or increase its speed, endurance, health or physical, or mental condition.
Any person violating the provisions of this section shall be guilty of a felony and, upon conviction thereof, shall be imprisoned for not less than one year nor more than 10 years, or fined not less than $5,000.00 nor more than $50,000.00 or both, in the discretion of the court.
*(Acts 1984, No. 84-131, p. 159, §39; Acts 1991, No. 91-187, p. 246, §35.)*
##### **§ 11-65-40** Transmission of Racing Information Prohibited {#sec-11-65-40 omnilex-key=us-al-statutes--title-11--11-65-40}
With the exception of televised simulcast programming of horse races and greyhound races authorized in accordance with Section 11-65-32, it shall be unlawful for any person to transmit or communicate to another by any means whatsoever the results, changing odds, track conditions, or other information relating to any horse race or greyhound race from any racetrack in a commission municipal jurisdiction between the period of time beginning one hour prior to the first race of the day and ending 30 minutes after the posting of the official results of each race, as to that particular race, except this period may be reduced to permit the transmitting of the result of the last race each day not sooner than 15 minutes after the official posting of such results; provided, however, that a commission may by rule permit the immediate transmission by radio, television (other than televised simulcast programming pursuant to Section 11-65-32 hereof), or press wire of any pertinent information concerning feature races.
It shall be unlawful for any person to transmit by any means whatsoever racing information to any other person or relay the same to any other person by word of mouth, by signal, or by use of telephone, telegraph, radio, or any other means when the information is knowingly used or intended to be used for illegal gambling purposes or in furtherance of such gambling purposes. It is the legislative intent that the improper use of instruments of communication referred to in the preceding sentence is prohibited and not the possession or lawful use of such instruments on the premises of any racing facility under the jurisdiction of a commission, and nothing contained in this chapter shall be construed to prohibit, or to authorize a commission to prohibit, the location of public telephones in or about a racing facility or the possession of portable telephones by members of the general public when attending racing events.
Any person violating the provisions of this section shall be guilty of a felony and, upon conviction, shall be imprisoned for not less than one year nor more than 10 years, or fined not less than $5,000.00 nor more than $50,000.00, or both, in the discretion of the court.
*(Acts 1984, No. 84-131, p. 159, §40; Acts 1991, No. 91-187, p. 246, §36.)*
##### **§ 11-65-41** Possession of Certain Drugs Prohibited {#sec-11-65-41 omnilex-key=us-al-statutes--title-11--11-65-41}
The possession or transportation of any drug or chemical within the racing enclosure of a racing facility under the jurisdiction of a commission is prohibited except for those permitted by regulations of the commission or those justified by a bona fide veterinarian’s prescription with a complete statement of uses and purposes on the container. Depending upon whether such prescription is for a horse or a greyhound, a copy thereof shall be filed with the stewards for horse racing or the judges for greyhound racing, as the case may be.
*(Acts 1984, No. 84-131, p. 159, §41; Acts 1991, No. 91-187, p. 246, §37.)*
##### **§ 11-65-42** Misuse of License {#sec-11-65-42 omnilex-key=us-al-statutes--title-11--11-65-42}
Any credential, license, or permit issued by a commission, if used by the holder thereof for a purpose other than identification and in the performance of legitimate duties on a racetrack, shall be automatically revoked whether so used on or off a racetrack.
*(Acts 1984, No. 84-131, p. 159, §42.)*
##### **§ 11-65-43** Racing Under Unregistered Name Prohibited {#sec-11-65-43 omnilex-key=us-al-statutes--title-11--11-65-43}
No person shall knowingly enter or race any horse in any running or harness race under any name or designation other than the name or designation assigned to such horse by and registered with the Jockey Club, the United States Harness Association or other applicable association or knowingly instigate, engage in, or in any way further any act by which any horse is entered or raced in any running or harness race under any name or designation other than the name or designation duly assigned by and registered with the Jockey Club, the United States Harness Association or other applicable association.
*(Acts 1984, No. 84-131, p. 159, §43.)*
##### **§ 11-65-44** Presence of Underage Persons Prohibited {#sec-11-65-44 omnilex-key=us-al-statutes--title-11--11-65-44}
No person under 19 years of age shall be employed for any purpose in or about a racing facility where either horse racing or greyhound racing is conducted pursuant to any license issued by a commission under the provisions of this chapter, except in a job which does not allow or require contact with members of the public engaged in wagering activities, such as the job of groom, animal exerciser, stable attendant, parking attendant, or office worker. No person under 19 years of age shall be admitted to performances of horse racing or greyhound racing which are the subject of pari-mutuel wagering at any such racing facility, nor shall any person under 19 years of age be permitted to wager on any horse race or greyhound race conducted at such racing facility, nor shall any person employed by an operator accept a wager on any horse race or greyhound race from any person under 19 years of age.
*(Acts 1984, No. 84-131, p. 159, §44; Acts 1991, No. 91-187, p. 246, §38.)*
##### **§ 11-65-45.1** Limitation of Personal Liability of Commission Members and Officers {#sec-11-65-45.1 omnilex-key=us-al-statutes--title-11--11-65-45.1}
An individual member of a commission or any officer, employee, or agent thereof shall not in any way be personally liable for any liability, loss, damage or expense suffered by any person as the result of any action taken by such commission, unless such liability, loss, damage, or expense arises out of or results from the willful misconduct or wrongdoing of such member, officer, employee or agent.
*(Acts 1991, No. 91-187, p. 246, §40.)*
##### **§ 11-65-47** Applicability of Chapter; Severability of Provisions {#sec-11-65-47 omnilex-key=us-al-statutes--title-11--11-65-47}
Insofar as the provisions of this chapter may be inconsistent with the provisions of any other law concerning activities and actions authorized by this chapter, the provisions of this chapter shall control, it being specifically declared that any other provisions of existing law that prohibit or regulate horse racing or greyhound racing and gambling or pari-mutuel wagering thereon shall not be applicable to any activities or actions authorized by and regulated pursuant to the provisions of this chapter.
The provisions of this chapter are expressly declared to be severable. If any provision of this chapter shall be adjudged to be invalid by any court of competent jurisdiction (including, without limitation thereto, any particular allocation of net commission revenues or other provision which, if not severed from this chapter, would cause it to be a local act in violation of any constitutional limitation or condition applicable to local acts), such provision shall be severed from this chapter in order to effectuate the legislative intent that such judgment shall not affect, impair, or invalidate the remainder of this chapter, and the operation of such judgment shall be limited to the provision thereof directly involved in the action in which such judgment shall have been rendered.
*(Acts 1984, No. 84-131, p. 159, §48; Acts 1991, No. 91-187, p. 246, §41.)*
### **Chapter 66** Municipal Government Capital Improvement
##### **§ 11-66-1** Short Title {#sec-11-66-1 omnilex-key=us-al-statutes--title-11--11-66-1}
This chapter may be cited as the “Municipal Government Capital Improvement Act.”
*(Acts 1986, No. 86-234, p. 345, §1.)*
##### **§ 11-66-2** Legislative Findings and Declaration of Purpose {#sec-11-66-2 omnilex-key=us-al-statutes--title-11--11-66-2}
It is the desire of the state to assist in the restoration and improvement of municipal government buildings, roads, streets, and other facilities, and to promote the health, safety, and public welfare of the citizens of the state. The making available in the manner provided in this chapter of appropriated moneys to assist the financing of much needed capital improvement projects will assist municipal government services and promote the welfare and prosperity of the people of the state.
*(Acts 1986, No. 86-234, p. 345, §2.)*
##### **§ 11-66-3** Definitions {#sec-11-66-3 omnilex-key=us-al-statutes--title-11--11-66-3}
As used in this chapter, the following words and phrases shall have the following respective meanings:
(1) FISCAL YEAR. The fiscal year of the state as may from time to time be provided by law.
(2) FUND. The “Municipal Government Capital Improvement Fund.”
(3) FUND CAPITAL. All assets of the “fund.”
(4) STATE. The State of Alabama.
(5) TRUST FUND. “The Alabama Trust Fund” created by Amendment Number 450 of the Constitution of Alabama 1901.
(6) TRUST INCOME. The net income received by the state, subsequent to the transfer of the initial trust capital by the State Treasurer to the board of trustees of the trust fund, from the investment and reinvestment of all assets of the trust fund, determined in accordance with the provisions of Amendment Number 450 of the Constitution of Alabama 1901. “Trust income” does not include income which becomes part of the trust capital of the trust fund.
*(Acts 1986, No. 86-234, p. 345, §3.)*
##### **§ 11-66-4** Fund Created {#sec-11-66-4 omnilex-key=us-al-statutes--title-11--11-66-4}
For the continuing benefit of the State of Alabama and the citizens thereof, there is hereby created the “Municipal Government Capital Improvement Fund” which shall be funded and administered in accordance with the provisions of this chapter.
*(Acts 1986, No. 86-234, p. 345, §4.)*
##### **§ 11-66-5** Appropriations {#sec-11-66-5 omnilex-key=us-al-statutes--title-11--11-66-5}
Beginning October 1, 1986, in addition to all other appropriations heretofore or hereafter made there is hereby annually appropriated from the General Fund of the state to the Municipal Government Capital Improvement Fund an amount equal to 10 percent of the trust income at such time as the trust income received by the state in the preceding fiscal year equals or exceeds $60,000,000. In any fiscal year in which the trust income received by the state in the preceding fiscal year falls below $60,000,000, no funds shall be appropriated to the Municipal Government Capital Improvement Fund until such time as the trust income equals or exceeds $60,000,000.
*(Acts 1986, No. 86-234, p. 345, §5.)*
##### **§ 11-66-6** Distribution of Fund Capital {#sec-11-66-6 omnilex-key=us-al-statutes--title-11--11-66-6}
The fund capital shall be distributed to the incorporated municipalities of the state and shall be paid on April 15 of the fiscal year for which each annual appropriation is made as follows:
(1) Each incorporated municipality in the state with a population of less than 1,000 shall receive $1,000; each incorporated municipality in the state with a population of 1,000 or more shall receive $2,500.
(2) The residue of the portion to be paid to the incorporated municipalities in the state shall be distributed among the incorporated municipalities in the state on the basis of the ratio of the population of each such municipality to the total population of all the incorporated municipalities in the state according to the next preceding federal decennial census, or in the case of a municipality incorporated subsequent to the said federal decennial census, the official census taken upon incorporation.
Each municipality shall upon receipt of its share deposit same in a special account and shall not commingle such funds with other revenues of the municipality. The share of each municipality shall be expended solely for capital improvements and the renovation of capital improvements determined by the municipal governing body. The governing body of each municipality may use such share to finance bond or warrant issues for capital improvements and the renovation of capital improvements and may pledge such share to retire the principal and interest of such bonds or warrants.
*(Acts 1986, No. 86-234, p. 345, §6; Act 98-499, p. 1075, §2.)*
##### **§ 11-66-7** Payment of Allocations {#sec-11-66-7 omnilex-key=us-al-statutes--title-11--11-66-7}
The State Comptroller shall make all allocations of funds and shall make the distribution and payments thereof pursuant to such allocations provided for in this chapter.
*(Acts 1986, No. 86-234, p. 345, §7.)*
### **Chapter 66A** Research and Development Corridors
##### **§ 11-66A-1** Definitions {#sec-11-66a-1 omnilex-key=us-al-statutes--title-11--11-66A-1}
When used in this chapter, the following terms have the following meanings unless the context clearly indicates otherwise:
(1) APPLICANT. Each natural person who is an elector of the authorizing subdivision and who has executed and filed a written application with the governing body of any subdivision for the incorporation of a research and development corridor.
(2) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of a subdivision to authorize the incorporation of a research and development corridor with powers to operate within the corporate limits of the subdivision.
(3) AUTHORIZING SUBDIVISION. Any municipality the governing body of which has adopted an authorizing resolution.
(4) BOARD. The board of directors of a research and development corridor.
(5) CORPORATE PERSON. Any corporation, partnership, association, or organization that may be incorporated or organized under any chapter of Title 10A or under the laws of any state of the United States.
(6) CORRIDOR. A research and development corridor incorporated pursuant to this chapter as a public corporation.
(7) DIRECTOR. A natural person who is member of the board of directors of a corridor.
(8) ELIGIBLE FUNDS. Any of the following:
1. Any federal funds received by the corridor, by grant or otherwise, for use in support of the corridor or its operations.
2. Any state appropriations, grants, or other public and private sources of funds made available for the public purposes of the corridor.
(9) ELIGIBLE TAXES. Any tax, fee, or charge levied or imposed by an authorizing subdivision within the geographical boundaries of a corridor, other than:
1. Taxes levied for public school purposes; or
2. Incremental ad valorem taxes levied within a tax increment district and required by state law to be paid to the tax increment district.
(10) FINANCIAL OBLIGATION. Any contractual obligation of any person, whether direct, indirect, or contingent, to pay or provide money to, or for the benefit of, any person or persons, as evidenced by any agreement or instrument, including, but not limited to, any bond, certificate, economic incentive grant agreement, funding or guaranty agreement, installment sale agreement, lease agreement, negotiable instrument, note, or warrant.
(11) GOVERNING BODY. The elected group of natural persons which is organized for the purposes of exercising the legislative functions and powers of a public entity.
(12) NATURAL PERSON. A natural person who is 21 years of age or older.
(13) PERSON. Collectively, corporate persons, natural persons, and public entities.
(14) PRINCIPAL OFFICE. The principal office of a research and development corridor, which shall be located within the corporate limits of an authorizing subdivision, as stated in the certificate of incorporation.
(15) PROJECT. Any activity undertaken, or property acquired or provided in whole or in part, by a research and development corridor for the establishment, benefit, or support of a qualified enterprise located within the corporate limits of an authorizing subdivision that adopted an authorizing resolution to create the corridor.
(16) PROPERTY. Any tangible or intangible property and interests therein, including all property characterized under state law as real, personal, or mixed.
(17) PUBLIC CORPORATION. Any public corporation or public body corporate organized under the laws of the state other than a municipal corporation.
(18) PUBLIC ENTITY. Any county or municipality, any political subdivision or other instrumentality of the state, and any public corporation.
(19) PUBLIC NOTICE REQUIREMENTS. Notice and the holding of a public meeting by a research and development corridor, an authorizing subdivision, or another public entity that proposes to exercise the authority granted under Section 11-66A-10 or 11-66A-12, at which time the corridor, authorizing subdivision, or such other public entity proposes to take an action, as authorized pursuant to this chapter. Notice shall be by publication at least seven days prior to the public meeting in a newspaper of general circulation in the authorizing subdivision or by electronic posting on the primary public website of the authorizing subdivision, which shall describe in reasonable detail the applicable action proposed to be taken by the corridor and the authorizing subdivision, the public benefits expected to be achieved by the applicable action, and the person or persons expected to benefit by the applicable action.
(20) QUALIFIED ENTERPRISE. Any activity, business, or trade that is described in one of the following categories:
a. Advanced Manufacturing: (i) aerospace/aviation; (ii) automotive; (iii) agriculture products/food production; (iv) metal and advanced metals; (v) chemicals; (vi) forestry products; (vii) alternative energy, battery/fuel cell, and similar facilities.
b. Bioscience: (i) medical equipment and supplies; (ii) pharmaceuticals; (iii) biotechnology.
c. Foundational Targets: (i) cybersecurity; (ii) data centers; (iii) distribution/logistics; (iv) information technology; (v) research and development.
d. Education: Educational research, development, or other areas of higher education.
e. Corporate operations for any of the foregoing.
(21) SUBDIVISION. Any municipality.
*(Act 2024-308, §1.)*
##### **§ 11-66A-2** Legislative Findings and Intent {#sec-11-66a-2 omnilex-key=us-al-statutes--title-11--11-66A-2}
**AMENDED** **BY ACT 2026-550, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE.**
(a) The Legislature finds and determines the public good, welfare, and economy of the state are best served by providing and encouraging the development, growth, improvement, and support of new and creative economic opportunities for existing and future qualified enterprises to establish and continue projects in this state for innovative processes and products. These include specifically those business sectors expressly identified in Accelerate Alabama 2.0, the strategic economic development plan developed by the Department of Commerce.
(b) In furtherance of subsection (a) the legislative intent and public purpose of this chapter is:
(1) To provide authority to municipalities for the creation of research and development corridors with corporate authority and power to provide, in the discretion of the corridors, its resources; and
(2) To provide authority to public entities to provide public resources to, or for the benefit of, corridors.
*(Act 2024-308, §2.)*
##### **§ 11-66A-3** Incorporation and Organization of a Research and Development Corridor; Certificate of Incorporation {#sec-11-66a-3 omnilex-key=us-al-statutes--title-11--11-66A-3}
(a) Upon compliance with public notice requirements, the governing body of any subdivision, or the governing bodies of any two or more subdivisions, may authorize the incorporation and organization of a research and development corridor, located exclusively within the respective corporate limits of the proposed authoring subdivisions, as a public corporation of the state, with powers set forth in this chapter, for the purpose of establishing or undertaking any project.
(b) In order to incorporate and organize a research and development corridor, not less than three natural persons who are qualified electors of a proposed authorizing subdivision shall file a written application with the governing body of each proposed authorizing subdivision. The application shall:
(1) State that the applicants propose to incorporate a research and development corridor pursuant to this chapter;
(2) State the name of each subdivision with which the application is filed;
(3) State that each of the applicants is a qualified elector of a proposed authorizing subdivision;
(4) Attach the proposed certificate of incorporation of the proposed corridor and state that the proposed certificate of incorporation is attached to the application and made a part thereof;
(5) Attach an affidavit of publication from a newspaper of circulation in each authorizing subdivision of the intent to form a research and development corridor and the geographic boundaries of the corridor; and
(6) Request the governing body of each proposed authorizing subdivision to adopt a resolution that the proposed corridor be formed, that the proposed certificate of incorporation of the corridor be approved, and that the applicants are authorized and directed to proceed to form the proposed corridor by the filing for record of a certificate of incorporation in accordance with this chapter.
(c) The certificate of incorporation of corridor shall state all of the following:
(1) The names of the individuals forming the corridor, and that each of them is a qualified elector of an authorizing subdivision for the corridor.
(2) The name of the corridor, which may be a name indicating in a general way the area proposed to be included within or served by the corridor and shall include the words “___________ Research and Development Corridor,” or “The Research and Development Corridor of ____________,” the blank spaces to be filled in with the name of the authorizing subdivisions or other geographically descriptive word or words.
(3) That the corridor is organized pursuant to this chapter.
(4) The name of each authorizing subdivision together with the date on which the governing body thereof adopted an authorizing resolution.
(5) The period for the duration of the corridor, which may be perpetual subject to this chapter.
(6) The location of the principal office of the corridor, which must be within the corporate limits of an authorizing subdivision.
(7) The number of members, which must be an odd number not less than three, of the board of directors of the corridor and the duration of the term of office, which shall not be in excess of six years.
(8) A description of the geographic boundaries of the corridor, which boundaries must be within the corporate limits of an authorizing subdivision that adopted an authorizing resolution to create the corridor and which description may be by reference to tax assessment tracts in accordance with the tax assessor’s system, by metes and bounds, by subdivision lot, by reference to recorded deeds, or by other reasonable reference method.
(9) The terms of any prohibition, limitation, or condition with respect to the exercise of any authority or power of the corridor or the duration of the corridor, if any.
(10) Any provision that provides for the vesting of title to property of the corridor upon dissolution of the corridor, which must not be in violation of this chapter or other state law.
(11) That the corridor shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation.
(d)(1) The governing body of a subdivision with which an application is filed pursuant to this chapter, as promptly as practicable, shall review the application and the attached form of certificate of incorporation.
(2) The governing body of each subdivision that has adopted an authorizing resolution shall cause the resolution to be made a part of the minutes and record of the meeting of the governing body during which the authorizing resolution was adopted.
(3) An authorizing resolution shall operate and be construed only as historical and evidential. An authorizing resolution shall not operate or be construed as of general and permanent nature or operation, may be adopted at the same meeting at which it is introduced, and shall be effective immediately upon adoption without posting or publication by any electronic, printed, or other means.
(e) As soon as practicable after the adoption of an authorizing resolution by each authorizing subdivision, the applicants shall do all of the following:
(1) Execute and acknowledge the certificate of incorporation as approved by each of the authorizing subdivisions before an officer authorized by law to take acknowledgments to deeds.
(2) Attach to the certificate of incorporation both of the following:
a. A certified copy of each authorizing resolution.
b. A certificate by the Secretary of State stating that the name proposed for the corridor is not identical to that of any other corporation organized under state law or so nearly similar as to lead to confusion and uncertainty.
(3) File the certificate of incorporation for record in the office of the judge of probate of the county in which the principal office of the corridor is to be located.
(f) Upon the filing for record of the certificate of incorporation, the corridor shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation, whereupon the corridor shall be vested with all authority, powers, and rights granted by this chapter, and the judge of probate shall send a notice to the Secretary of State that the certificate of incorporation of the corridor has been filed for record.
(g) The certificate of incorporation of any corridor may be amended in the following manner:
(1) The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which must be set forth in full in the resolution. The amendment may include any matters that may have been included in the original certificate of incorporation. An amendment to the certificate of incorporation may not authorize the corridor to acquire property or otherwise expand its activities outside the corporate limits of its authorizing subdivision or authorizing subdivisions.
(2) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the corridor, the chair of the board and the secretary of the corridor shall sign and file a written application in the name of and on behalf of the corridor with the governing body of each authorizing subdivision requesting the governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with documents in support of the application as the chair considers appropriate.
(3) As promptly as practicable after the filing of the application with the authorizing subdivision and upon compliance with public notice requirements, the governing body shall review the application. The governing body of each subdivision that has adopted a resolution approving the amendment shall cause the resolution to be made a part of the minutes and record of the meeting of the governing body during which the resolution was adopted. A resolution approving an amendment shall operate and be construed only as historical and evidential. An authorizing resolution shall not operate or be construed as of general and permanent nature or operation, may be adopted at the same meeting at which it is introduced, and shall be effective immediately without posting or publication by any electronic, printed, or other means.
(4) As soon as practicable after the adoption of a resolution approving the amendment by each authorizing subdivision, the chair of the board of the corridor and the secretary of the corridor shall sign and file for record in the office of the judge of probate with which the certificate of incorporation of the corridor was originally filed a certificate in the name of and on behalf of the corridor reciting the adoption of the respective resolutions by the board and by the governing body of each authorizing subdivision, setting forth the proposed amendment. The judge of probate for the county shall thereupon record the certificate in an appropriate book in his or her office. When the certificate has been so filed and recorded, the amendment shall become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of a research and development corridor shall be amended except in the manner provided in this section.
*(Act 2024-308, §3.)*
##### **§ 11-66A-4** Board of Directors of Corridor {#sec-11-66a-4 omnilex-key=us-al-statutes--title-11--11-66A-4}
(a) Each corridor shall be governed by a board of directors that shall exercise, or authorize the exercise of, all powers of the corridor.
(b) The board of each corridor shall consist of the number of directors provided in the certificate of incorporation.
(c) Any natural person may serve on the board of a corridor. All directors with voting powers shall be appointed by the authorizing subdivision of the corridor unless there are two or more authorizing subdivisions for a corridor, in which case a majority of the directors must be appointed by a single authorizing subdivision. A majority of the directors must be natural persons who are residents of an authorizing subdivision, and a minority of the directors may be natural persons who are not residents of any of the authorizing subdivisions; provided, however that any non-resident director must also be approved by the governing body of each authorizing subdivision. In addition, the Alabama Innovation Corporation may appoint a single non-voting member who shall not count towards the establishment of a quorum.
(d) Notwithstanding any other provision of this chapter, board membership shall be inclusive and reflect the racial, gender, geographic, and economic diversity of the authorizing subdivisions of the corridor. Minority business organizations in Alabama shall submit names that they suggest for appointment to the board to the authorizing subdivision.
(e) Each director shall hold a place on the board and shall be appointed for the term of that place by the authorizing subdivision appointing that director, all as provided in the certificate of incorporation. Except as may be otherwise provided in the certificate of incorporation, an officer or employee of any authorizing subdivision shall be eligible for appointment and may serve as a member of the board for the first to expire of the term for which that officer is appointed or the term thereof as an officer of the authorizing subdivision.
(f) Each director may hold a place on the board for successive terms without limit. If at the expiration of any term of office of any director a successor has not been appointed, the director whose term of office expired shall continue to hold office until the successor is appointed by the person or persons having the appointive power for the place of that director. If at any time there is a vacancy on the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to the vacancy shall be elected or appointed by the authorizing subdivision that appointed the predecessor director, or, in the case of a director appointed by the Alabama Innovation Corporation, by the Alabama Innovation Corporation.
(g) Each director shall serve as such without compensation but shall be reimbursed for expenses actually incurred by the director while conducting his or her official duties.
(h) The board may hold regular and special meetings as the board determines or as provided in the bylaws of the board. Any member of the board, any provision of law to the contrary notwithstanding, may attend and participate in, and constitute part of the quorum for, any regular or special meeting of the board in person or by means of telephone conference, video conference, or similar communications equipment that allows all participants in the meeting to hear each other at the same time; provided, every meeting shall have one physical location available in an authorizing subdivision for individuals wishing to be physically present, and any vote taken at a meeting using the foregoing communication equipment shall be taken by roll call vote that allows each participant to vote individually in a manner audible to all participants. The board may take any action at any regular or special meeting. A majority of the directors present, in person or by electronic or telephonic communications, at a meeting shall constitute a quorum for the exercise of any authority or power of the board. Any meeting of the board may be adjourned by a majority of the directors present or may be adjourned by a single director if the director is the only director present at the meeting. No vacancy in the membership of the board or the voluntary disqualification or abstention of any member of the board shall impair the right of a quorum to exercise all the powers and perform all the duties of the board at a regular or special meeting. The secretary of the corridor shall reduce to writing and maintain in a permanent record all proceedings and resolutions of the board. Copies of the proceedings, when certified by the secretary of the corridor, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(i) The determinations set forth in a resolution of the board, including the determination that an activity, facility, or undertaking, or application of funds under control of the board constitutes a “project” or are otherwise in furtherance of the purposes of this chapter, shall be subject to judicial review as provided and limited by law for judicial review of legislative acts and determinations by a subdivision.
(j) If a matter comes before the board with respect to which any director, any related party, including a sibling, spouse, or lineal descendant, or any business enterprise with which the director is associated, has any direct or indirect pecuniary interest, the director shall immediately disclose the interest to the board and remove himself or herself and withdraw from the meeting prior to the consideration, deliberation, and voting on the matter by the board.
(k) The corridor and the incorporators, directors, officers, employees, and agents of the corridor shall have the same limitations on liability as a municipality and its officers, employees, and agents for negligent acts. These limitations shall not apply to subcontractors or independent contractors of the corridor.
(l) Any director may be removed from office in the same manner and on the same grounds provided in the state constitution and the general laws of the state for impeachment and removal of officers.
*(Act 2024-308, §4.)*
##### **§ 11-66A-5** Officers of Corridor {#sec-11-66a-5 omnilex-key=us-al-statutes--title-11--11-66A-5}
The officers of a research and development corridor shall consist of a chair, a vice chair, a secretary, a treasurer, and such other officers as its board deems necessary or desirable. The offices of secretary and treasurer may be held by the same individual. The chair and vice chair of a research and development corridor shall be elected by the board from the board membership. The secretary, the treasurer, and any other officers of the corridor may but need not be members of the board and shall also be elected by the board. The chair, vice chair, and secretary of the corridor shall also be the chair, vice chair, and secretary of the board, respectively.
*(Act 2024-308, §5.)*
##### **§ 11-66A-6** Powers of Corridor {#sec-11-66a-6 omnilex-key=us-al-statutes--title-11--11-66A-6}
In furtherance of a project, each corridor shall have all of the following stated powers together with all powers incidental to these powers and necessary to effect the proper exercise of the corridor:
(1) To have succession in its corporate name for the duration of the corridor specified in the certificate of incorporation.
(2) To sue and be sued in its own name in civil suits and actions and to defend suit against the corridor.
(3) To adopt and make use of a corporate seal and to alter the seal as necessary.
(4) To adopt, alter, and repeal the provisions of the corridor’s certificate of incorporation or the bylaws, regulations, and rules, not inconsistent with this chapter, for the regulation and conduct of its affairs and business.
(5) To acquire real property within the geographic boundaries of the corridor and the corporate limits of its authorizing subdivision or authorizing subdivisions, whether by gift, purchase, transfer, foreclosure, lease, or devise, and to construct, improve, operate, maintain, equip, and furnish the property and interests in property as the board determines to be necessary for the purposes of the corridor.
(6) To lease all or any part of any property upon such terms and conditions as its board determines necessary or desirable.
(7) To convey any property of the corridor with or without valuable consideration as the board shall determine.
(8) To enter into a management contract or contracts with any person or persons of all or any part of its property as may in the judgment of such corridor be necessary or desirable in order to perform more efficiently or economically any function for which the corridor may become responsible in the exercise of the powers conferred upon it by this chapter.
(9) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as its board determines to be necessary or desirable.
(10) Upon compliance with public notice requirements, to fix and revise, and charge and collect, fees, licenses, rates, rentals, and assessments to any qualified enterprise or other business located within the geographic boundaries of the corridor, but only as to each qualified enterprise or other business, for any tax year, the amount of eligible taxes abated for the qualified enterprise or business under subdivision (22), and apply the proceeds thereof for any lawful purpose of the corridor.
(11) To the extent authorized or permitted by the state constitution, to grant, loan, or donate, or otherwise make available any funds, money, revenues, or property of the corridor upon such terms as the board shall determine to: (i) any public entity or entities, and (ii) upon compliance with public notice requirements and approval by each authorizing subdivision, any corporate person or corporate persons and natural person or natural persons.
(12) To the extent authorized or permitted by the state constitution, to assume, incur, or issue any financial obligation or financial obligations for any lawful purpose, as more particularly provided in this chapter.
(13) To pledge for the benefit of any financial obligation of the corridor any revenues, including, but not limited to, proceeds of any tax to which it is entitled, from which the financial obligation is payable, and to mortgage or pledge its property and revenues, or any portion thereof, as further provided in this chapter.
(14) To assume obligations secured by a lien on, or secured by and payable out of or secured by a pledge of, any property or part thereof or the revenues derived from any property that may be acquired by the corridor.
(15) To make, enter into, and execute contracts, agreements, leases, and other instruments, and to take such other actions as may be necessary or convenient to accomplish any purpose for which the corridor was organized or to exercise any power granted under this chapter.
(16) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to take any action not specifically prohibited by this chapter or other applicable laws of the state that may be necessary in order to obtain or secure the aid and cooperation of the United States, the state, or any agency, department, instrumentality, or political subdivision of either in furtherance of the purposes of this chapter.
(17) To apply for, accept, receive, apply, disburse, expend, and use to accomplish the purposes of this chapter any money, property, labor, or other things of value, from any source, including, without limitation, the state, any public entity, and the United States, subject to any lawful condition upon which the aid or contributions may be given or made.
(18) To appoint, employ, contract with, and provide for compensation of the employees and agents of the corridor including, but not limited to, architects, engineers, attorneys, accountants, investment advisors and financial experts, fiscal agents, and such other advisors, consultants, and agents as the board determines to be necessary or desirable.
(19) To invest its monies, including, but not limited to, the monies held in any special fund created pursuant to any trust indenture or agreement or resolution securing any of its financial obligations and proceeds from the sale of any financial obligations not required for immediate use, in such investments as are authorized by the laws of the state for the investment of funds and money of a municipality.
(20) To acquire, create, establish, operate, or support, or to participate as a member of, any corporate person that will assist the corridor in, or which otherwise has as a purpose of accomplishing the purposes of this chapter, including, but not limited to, the support of any corporate person by means of grants or loans of property or the issuance of financial obligations for the benefit of the corporate person.
(21) To exercise any authority or power that is granted by state law to any private corporation or public corporation which is not in conflict with the purposes of this chapter.
(22) To abate any eligible tax or eligible taxes for any project.
(23) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to this chapter to the extent permitted by law.
*(Act 2024-308, §6.)*
##### **§ 11-66A-7** Financial Obligations of a Research and Development Corridor {#sec-11-66a-7 omnilex-key=us-al-statutes--title-11--11-66A-7}
(a) Each corridor shall have, and may exercise as provided in Section 11-66A-6(12), the authority and power to assume, incur, or issue, at any time and from time to time, any financial obligation or financial obligations, without limitation as to aggregate principal amount, as the board determines to be necessary or desirable for any lawful purpose of the corridor, including, but not limited to:
(1) Payment of the costs of a project;
(2) Payment, in whole or in part, in advance or at stated maturity, of any financial obligation of the corridor;
(3) Provision for such reserves as may be required in connection with the financial obligations;
(4) Payment of any extraordinary, nonrecurring obligations, including, but not limited to, casualty losses, legal judgments, and contractual termination payments;
(5) Payment of administration and operation of projects; and
(6) Provision of funds to accomplish or effect any purpose of this chapter.
(b) Each financial obligation of a research and development corridor may be in such form and denomination and of such tenor and maturity or maturities, shall be payable in lawful currency of the United States in such installments as serial or term obligations or a combination thereof, and at such time or times, not exceeding 45 years from the date thereof, may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be subject to prepayment or redemption in advance of maturity at such price or prices and upon such notice, terms, and conditions, and may contain such provisions which are not in violation of this chapter, all as provided in the applicable agreement, indenture, or resolution of the corridor which has authorized the incurrence or issuance thereof.
(c) A research and development corridor may provide that any financial obligation shall bear interest at a rate or rates fixed to maturity at the time of issuance or at a rate or rates which may be changed from time to time during the term of the financial obligation in accordance with an objective procedure determined by the board at the time of issuance of the financial obligation or in connection with published interest rates or indices that reflect an objective response to market changes in interest rates by financial institutions, governmental agencies, or other generally recognized public or private sources of information concerning interest rates.
(d) A research and development corridor may deliver and perform all agreements and contracts for the services of paying agents and trustees with respect to financial obligations incurred or issued under this chapter, for the purchase of any financial obligations issued under this chapter, and for the guarantee or insurance, pursuant to municipal bond insurance policies, letters of credit, standby purchase agreements, and other credit or liquidity facilities, of the payment, when due, of the principal of, and premium and interest on, any financial obligations so assumed, incurred, or issued by the corridor pursuant to this chapter.
(e) A research and development corridor shall cause all financial obligations assumed, incurred, or issued by the corridor to be executed by manual or electronic signature of an officer or officers as authorized and provided in the agreement, indenture, or resolution of the corridor that authorized the financial obligation. A statement upon the signature page of a financial obligation of a research and development corridor that the financial obligation was issued under the seal of the corridor shall be conclusive for all purposes of state law. A financial obligation that has been executed by an officer or officers in office on the date of the execution shall be valid and enforceable, notwithstanding that before delivery of the financial obligation, any such officer whose signature appears thereon has ceased to hold such office.
(f) All financial obligations incurred or issued pursuant to this chapter by a research and development corridor may be sold at private or public sale at such price or prices and in such manner as the board shall determine.
(g) Each financial obligation of a research and development corridor is hereby made a negotiable instrument for all purposes, anything in state law, including, but not limited to, the Alabama Uniform Commercial Code, to the contrary notwithstanding and without regard to whether the financial obligation is of such form and character as to be a negotiable instrument under state law; provided, however, the corridor, in its discretion, may provide that any particular financial obligation shall not be negotiable or may be negotiable only upon such terms as the corridor shall prescribe.
(h)(1) The corridor shall apply the proceeds of any financial obligation solely for the purposes for which the financial obligation has been incurred or issued, including, but not limited to, payment of the costs of incurrence or issuance of the financial obligations, including, but not limited to: (i) fees and expenses of attorneys, accountants, financial advisors, consultants, trustees and paying agents, and underwriters; and (ii) the costs of municipal bond insurance policies, letters of credit, and such other credit or liquidity facilities which provide for payment when due of all or part of the principal of, and premium and interest on, the financial obligations.
(2) The corridor may deposit in trust the proceeds of any financial obligation incurred or issued for payment of another financial obligation of the corridor on such terms as the board approves with a financial institution having trust powers within or without the state. The proceeds, to the extent required by the terms of and purpose of the trust, may be invested as provided for public funds of a municipality.
(i) The financial obligations of any corridor shall be legal investments in which the state and its agencies and instrumentalities, all subdivisions and public corporations organized under the laws of the state, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whosoever are now or may hereafter be authorized to invest in financial obligations or other obligations of the state, may properly and legally invest funds in their control or belonging to them.
(j) The validity of any financial obligation that states therein that it is issued pursuant to this chapter, in any action or proceeding involving the validity thereof, shall be incontestable, and the financial obligation shall be conclusively deemed to be the valid financial obligation of the applicable corridor enforceable by all rights and remedies available at law or in equity under state law.
*(Act 2024-308, §7; Act 2025-289, §1(b)(2).)*
##### **§ 11-66A-8** Sources of Payment Of, and Security For, Financial Obligations of a Research and Development Corridor {#sec-11-66a-8 omnilex-key=us-al-statutes--title-11--11-66A-8}
(a) Each financial obligation or obligations of a research and development corridor shall be a limited obligation of the corridor payable solely from the sources of payment specified therein, subject to the limitations and provisions thereof, including, but not limited to, the issuance of financial obligations payable from the same source of funds on an equal and proportionate basis or on a subordinate basis, as the corridor may determine.
(b) The corridor may assign, mortgage, or pledge any property of the corridor to secure the payment and performance of any financial obligation of the corridor; provided, the corridor, in its discretion, may provide property as security for any one or more financial obligations of the corridor without, to the extent permitted by any applicable contractual agreements, provision of the same or any other any property as security for any other financial obligation or obligations of the corridor. In furtherance of this subsection, the corridor may deliver a contractual agreement to, or for the benefit of, the owner or owners of any financial obligation of the corridor, which agreement may contain such agreements, conditions, covenants, provisions, and terms as the corridor may determine to be necessary or desirable to provide for the protection and security of the owners of the financial obligations, including, but not limited to, restrictions on the use of the property of the corridor and the incurrence of additional financial obligations of the corridor, the terms for amendment, with and without the consent of the owner or owners, of the financial obligations and the documents pursuant to which such financial obligations were incurred or issued, providing for the rights, duties, and authority of a trustee, and providing for the exercise of legal and equitable rights and remedies by the owner or owners.
(c) Any assignment, mortgage, or pledge of property by the corridor for the benefit of any financial obligation shall be effective, valid, and binding from the time the assignment, mortgage, or pledge is made, and the property subject thereto shall immediately, or as soon thereafter as the corridor obtains any right thereto or interest therein, be subject to the assignment, mortgage, or pledge without physical delivery of the subject property or any agreement, document, or instrument providing therefor, or any further act, and the encumbrance and lien of any such assignment, mortgage, or pledge shall be effective, valid, and binding as against all persons having claims of any kind in tort, contract, or otherwise against the corridor, irrespective of whether the persons have actual notice thereof, from the time notice of the assignment, mortgage, or pledge is filed for record: (i) in the office of the judge of probate in which the certificate of incorporation of the corridor was filed for record; and (ii) in the case of any assignment, mortgage, or pledge of any tangible property, whether real, personal, or mixed, in the office of the judge of probate of the county in which the property is or is to be located pursuant to any agreement made by the corridor with any person respecting the location and use of the property. The notice shall contain a statement of the existence of any such assignment, mortgage, or pledge, a description of the subject property, and a description of the financial obligations secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of any such assignment, mortgage, or pledge; provided, the notice may be in form of: (i) a summary statement; or (ii) an executed counterpart of the agreement, document, or instrument which contains the assignment, mortgage, or pledge. The recording of the notice shall operate as constructive notice of the contents thereof.
(d) All financial obligations assumed, incurred, or issued by a research and development corridor shall be solely and exclusively an obligation of the corridor and shall not create a direct, indirect, or contingent obligation or pecuniary liability, or general obligation or charge against the general assets, credit, funds, property, revenues, or taxing power of the state, of any other public entity, or of any subdivision, including, but not limited to, any authorizing subdivision and any public entity exercising the authority granted under Section 11-66A-10 or 11-66A-12.
(e) The owner or owners of any financial obligation or financial obligations of the corridor shall have no recourse against any incorporator, any past, present, or future director, officer, employee, or agent of the corridor, or of any successor thereof, for the payment of any amount which shall have become due and payable under the financial obligation or financial obligations or for the payment or performance of any agreement, document, or instrument pursuant to which the financial obligation or financial obligations were assumed, incurred, or issued by which the financial obligation or financial obligations shall be secured.
*(Act 2024-308, §8.)*
##### **§ 11-66A-9** Validation of Financial Obligations of a Research and Development Corridor {#sec-11-66a-9 omnilex-key=us-al-statutes--title-11--11-66A-9}
(a) A research and development corridor shall constitute a “unit” for purposes of Article 17 of Chapter 6 of Title 6. A research and development corridor, in the determination of the board, may file a petition with respect to any financial obligation or financial obligations thereof pursuant to Article 17 of Chapter 6 of Title 6.
(b)(1) A research and development corridor, in the determination of the board and upon the adoption by the board of a resolution providing for the issuance of financial obligations, may cause a notice respecting the issuance of the financial obligations to be published once a week for two consecutive weeks in each county in which shall be located any project financed or in any way assisted by the issuance of the financial obligations. The publication in each such county shall be in a newspaper having general circulation therein and shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the corridor: “____________________________, a public corporation and instrumentality of the State of Alabama, on the _______ day of ________________, authorized the issuance of $______ principal amount of __________________ (identification of the obligation) of the said public corporation for purposes authorized in Chapter 66A of Title 11, Code of Alabama 1975, under which the public corporation was organized. Any action or proceeding questioning or contesting the validity of the said financial obligations, or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before _________________ (here insert date determined in accordance with the provisions of subdivision (2).”
(2) The date stated in the notice as the date on or before which any action or proceeding questioning or contesting the validity of the financial obligations referred to in the notice must be commenced shall be a date at least 30 days after the date on which occurs the last publication of the notice necessary for it to have been published at least once in all counties in which it is required to be published.
(3) Any action or proceeding in any court to set aside or question the proceedings for the issuance of the financial obligations referred to in the notice or to contest the validity of any such financial obligations, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with subdivision (2) and stated in the notice as the date on or before which any such action or proceeding must be commenced. After that date, no right of action or defense shall be asserted questioning or contesting the validity of the financial obligation or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of such financial obligations or such instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before that date.
*(Act 2024-308, §9.)*
##### **§ 11-66A-10** Special Authority of Public Persons to Support Corridors {#sec-11-66a-10 omnilex-key=us-al-statutes--title-11--11-66A-10}
(a) In furtherance of the public purposes of this chapter, the state, and any public entity, upon such terms and with or without consideration as it may determine and in compliance with the state constitution and public notice requirements, may undertake any of the following for the benefit of any corridor project, without regard to whether any public entity may be an authorizing subdivision with respect to the corridor or may have a project located or undertaken within the jurisdiction thereof:
(1) Donate, grant, loan, or pledge to, or for the benefit of, any corridor any funds, revenues, or tax proceeds of the public entity;
(2) Perform services for the benefit of any corridor;
(3) Pay, commit to pay, or guarantee, on a continuing basis by contractual agreement, the payment when due of all or any part of the principal of, and premium and interest on, any financial obligation of a research and development corridor for such period, including the period ending on the stated maturity of the financial obligation, as the public entity may determine;
(4) Donate, sell, convey, transfer, lease, or grant any property to any corridor without the necessity of authorization at any election of qualified voters of the public entity; and
(5) Do any and all things, whether or not specifically authorized in this chapter, not otherwise prohibited by law, that are necessary or desirable to aid and cooperate with any corridor with respect to any project or in furtherance of the public purposes of this chapter.
(b) The state and each public entity, upon such terms and conditions and with or without consideration as it may determine and in compliance with the state constitution and public notice requirements, may assume, incur, or issue, by private or public sale in compliance with applicable state law and the state constitution, any financial obligation as a general, limited, or special obligation thereof, to provide funds for any purpose of this section.
(c) The state and each public entity shall cause each contractual agreement or instrument delivered for any purpose in subsection (a) to provide for, or set forth, in the agreement or instrument: (i) the purpose of the agreement; and (ii) the authorization and direction of a specific officer or officers, by title or office, of the public entity to pay any pecuniary obligation of the public entity in lawful currency of the United States and in liquidated amounts when due on a date or dates certain, which amounts and dates of payment may be set forth in the agreement or instrument, or schedule thereto, or incorporated therein by specific reference.
(d) With specific regard to the state, the Governor or his or her designee may enter into any contractual agreement or instrument, exercising the state’s authority hereunder.
(e) Any court in the state having competent jurisdiction shall issue mandamus for the payment of any pecuniary obligation of the state or a public entity in a contractual agreement or instrument delivered pursuant to this section upon proper proof of nonpayment thereof, or failure of compliance with the provisions of law with respect thereto, being furnished by, or on behalf of, the corridor or any beneficiary of the pecuniary obligation of the state or the public entity under the contractual agreement or instrument.
*(Act 2024-308, §10.)*
##### **§ 11-66A-11** Audited Financial Statements {#sec-11-66a-11 omnilex-key=us-al-statutes--title-11--11-66A-11}
(a) A research and development corridor shall be required to produce audited financial statements from a certified public accountant or a firm thereof regularly engaged in the auditing of financial records, or an auditor who is regularly employed by the Department of Examiners of Public Accounts, for each fiscal year and, when available, deliver the audited financial statements to each public entity that financially supports the corridor, if the corridor: (i) receives any eligible funds; (ii) receives any funds, proceeds, or revenues from any public entity; or (iii) issues any financial obligation.
(b) For purposes of this section, the person conducting an audit pursuant to subsection (a) must be a person who: (i) is in fact independent; (ii) does not have any direct financial interest or any material indirect financial interest in the corridor; and (iii) is not connected with the corridor or any officer, employee, promoter, underwriter, trustee, partner, director, or person performing similar functions.
*(Act 2024-308, §11.)*
##### **§ 11-66A-12** Exemption of Corridor from Taxation {#sec-11-66a-12 omnilex-key=us-al-statutes--title-11--11-66A-12}
(a) Each corridor shall be exempt from all fees and charges imposed by any judge of probate.
(b) The income of any corridor, all financial obligations of a corridor, the income and interest from the financial obligations, conveyances by or to a research and development corridor, and leases, mortgages, and deeds of trust or trust indentures by or to a corridor, shall be exempt from all taxation in the state.
(c) An authorizing subdivision may elect by a majority vote of the members of its governing body to exempt the corridor and its real and tangible property from the payment of eligible taxes. The exemptions authorized in this subsection may be granted in the subdivision’s authorizing resolution or by subsequent resolution, upon compliance with public notice requirements. The resolutions may provide for limitations on and eligibility for exemptions from the payment of eligible taxes.
(d)(1) Except as provided in subdivision (2), upon compliance with public notice requirements, a governing body of a public entity other than an authorizing subdivision may elect by a majority vote of the members of the governing body to exempt the corridor and its real and tangible property from the payment of any taxes levied by the public entity within the geographical boundaries of the corridor. The resolutions may provide for limitations on and eligibility for exemptions from the payment of taxes.
(2) Notwithstanding subdivision (1), the exemptions authorized by this subsection shall not apply to the following:
a. Taxes levied for public school purposes.
b. Incremental ad valorem taxes levied within a tax increment district and required by state law to be paid to the tax increment district.
c. Real or personal property to the extent the property is or will be treated as owned for federal income tax purposes by a corporate person or natural person.
(e) The corridor shall be exempt from the state’s portion of taxes levied by the State of Alabama.
*(Act 2024-308, §12.)*
##### **§ 11-66A-13** Exemption of Corridor from Usury and Interest Laws {#sec-11-66a-13 omnilex-key=us-al-statutes--title-11--11-66A-13}
Each corridor and the contractual agreements and financial obligations of the corridor shall be exempt from state laws governing usury or prescribing or limiting interest rates, including, but not limited to, Chapter 8 of Title 8.
*(Act 2024-308, §13.)*
##### **§ 11-66A-14** Exemption of Corridor from Competitive Bid Laws {#sec-11-66a-14 omnilex-key=us-al-statutes--title-11--11-66A-14}
Each corridor, all contractual agreements made by the corridor, and any building or improvement of a project shall be exempt from state laws requiring competitive bids for any contract to be entered into by any public entity, including, but not limited to, Chapter 2 of Title 39 and Article 3 of Chapter 16 of Title 41.
*(Act 2024-308, §14.)*
##### **§ 11-66A-15** Exemption of Corridor from State Oversight {#sec-11-66a-15 omnilex-key=us-al-statutes--title-11--11-66A-15}
(a) Except as provided in this chapter and specifically in subsection (b), a research and development corridor shall not be required to obtain the approval or consent of, or make any filing with, or provide notice to, the state or any state agency, department, or other instrumentality of the state, with respect to the incorporation or the amendment of the certificate of incorporation of the corridor, or the exercise of any authority or power provided in this chapter or permitted under state law.
(b) A research and development corridor shall be subject to local codes and ordinances.
*(Act 2024-308, §15.)*
##### **§ 11-66A-16** Applicability of Certain State Laws {#sec-11-66a-16 omnilex-key=us-al-statutes--title-11--11-66A-16}
(a) A research and development corridor shall be subject to Chapter 25 of Title 36, but board members shall not be required to file a statement of economic interests under Section 36-25-14, or any successor to that law.
(b) Except as otherwise provided in this chapter, a research and development corridor shall be subject to the Alabama Open Meetings Act, Chapter 25A of Title 36.
*(Act 2024-308, §16.)*
##### **§ 11-66A-17** Corridor Shall Be Nonprofit Corporation {#sec-11-66a-17 omnilex-key=us-al-statutes--title-11--11-66A-17}
A research and development corridor shall be a nonprofit corporation, and no part of a research and development corridor’s net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, financial obligations, and other obligations of a research and development corridor, then any portion, as determined by the board, of the net earnings of a research and development corridor thereafter accruing, in the discretion of the board, may be paid to one or more of the corridor’s authorizing subdivisions.
*(Act 2024-308, §17.)*
##### **§ 11-66A-18** Dissolution of Corridor; Vesting of Title to Property of Corridor {#sec-11-66a-18 omnilex-key=us-al-statutes--title-11--11-66A-18}
At any time when a research and development corridor has no financial obligations or other executory agreements outstanding, its board may adopt a resolution, which shall be entered upon its minutes, declaring that the corridor shall be dissolved. Upon filing for record of a certified copy of the resolution in the office of the judge of probate with which the corridor’s certificate of incorporation is filed, the corridor shall thereupon stand dissolved, and in the event the corridor owned any property at the time of the dissolution, the title to all its properties, subject to the state constitution, thereupon shall vest in the corridor’s authorizing subdivision, or if the corridor has more than one authorizing subdivision, in the corridor’s authorizing subdivisions as tenants in common.
*(Act 2024-308, §18.)*
##### **§ 11-66A-19** Incorporation of Multiple Corridors by Same Authorizing Subdivision {#sec-11-66a-19 omnilex-key=us-al-statutes--title-11--11-66A-19}
The existence of a research and development corridor incorporated under this chapter shall not prevent the subsequent incorporation under this chapter of another corridor pursuant to authority granted by the same authorizing subdivision.
*(Act 2024-308, §19.)*
##### **§ 11-66A-20** Reporting {#sec-11-66a-20 omnilex-key=us-al-statutes--title-11--11-66A-20}
Not later than January 1, annually, each corridor shall submit a report detailing all activities, including the status of any qualified enterprise within the corridor and the audited financial statements submitted pursuant to Section 11-66A-12, to the Governor, the Lieutenant Governor, the Secretary of Commerce, the Speaker of the House of Representatives, the President of the Senate, and each authorizing subdivision.
*(Act 2024-308, §20.)*
##### **§ 11-66A-21** Cumulative Effect of Chapter {#sec-11-66a-21 omnilex-key=us-al-statutes--title-11--11-66A-21}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws; provided, however, this chapter shall supersede any other laws to the extent the laws are clearly inconsistent with the provisions of this chapter.
*(Act 2024-308, §21.)*
##### **§ 11-66A-22** Anti-poaching {#sec-11-66a-22 omnilex-key=us-al-statutes--title-11--11-66A-22}
If a qualified enterprise exists in the state, then the qualified enterprise, or any portion thereof, cannot relocate into a research and development corridor or otherwise be deemed or treated as a qualified enterprise unless the governing body of each municipality within whose corporate limits the qualified enterprise, or portion thereof, exists consents to the relocation.
*(Act 2024-308, §22.)*
### **Chapter 67** Abatement of Weeds
#### **Article 1** Abatement of Weeds and Debris in Class 2 Municipalities
#### **Division 1** General Provisions
##### **§ 11-67-1** Article Applicable to Class 2 Municipalities {#sec-11-67-1 omnilex-key=us-al-statutes--title-11--11-67-1}
The provisions of this article shall only apply to Alabama Class 2 municipalities.
*(Acts 1988, No. 88-329, p. 496, §1.)*
##### **§ 11-67-2** Abatement or Removal of Weeds or Debris as a Public Nuisance {#sec-11-67-2 omnilex-key=us-al-statutes--title-11--11-67-2}
The governing body of a Class 2 municipality may declare either of the following to be a public nuisance and require its abatement or removal as provided in this division:
(1) Any weed growing on a street, sidewalk, or private property within the municipality which: (i) bears seeds of a wingy or downy nature; (ii) grows large enough to become a fire menace when dry; or (iii) is otherwise noxious or dangerous.
(2) Any debris, including furniture, appliances, trash, garbage, glass, metal, and tires, that is abandoned or discarded on a street, sidewalk, or private property within the municipality that: (i) occupies a large area at risk of becoming a fire menace; (ii) is a breeding ground for pests; or (iii) is otherwise noxious or dangerous.
*(Acts 1988, No. 88-329, p. 496, §2; Act 2025-86, §1.)*
##### **§ 11-67-3** Resolution Declaring Weeds or Debris to Be a Public Nuisance and Ordering Abatement or Removal {#sec-11-67-3 omnilex-key=us-al-statutes--title-11--11-67-3}
The governing body of a Class 2 municipality desiring to declare weeds or debris a public nuisance and order its abatement or removal pursuant to Section 11-67-2 shall do so by resolution. The resolution shall refer to the street by the name under which the street is commonly known and describe the property that the nuisance is on or in front of by giving a legal description thereof. No other description of the property is required. Any number of streets, sidewalks, or parcels of private property may be included in the same resolution.
*(Acts 1988, No. 88-329, p. 496, §3; Act 2025-86, §1.)*
##### **§ 11-67-4** Notice of Public Hearing; Posting of Signs and Form Thereof {#sec-11-67-4 omnilex-key=us-al-statutes--title-11--11-67-4}
(a) After the passage of a resolution, notice of a public hearing on the matter shall be given by certified mail, return receipt requested, mailed 30 days prior to the date of the hearing and shall inform the owner of the time, date, and place of the hearing and reason therefor. The notice shall be mailed to the owner of the property as it appears of record in the revenue commissioner’s office of the county in which the Class 2 municipality is located.
(b) All notices shall carry a list of names of persons that perform such work and are registered with the city clerk. The names shall not constitute a recommendation and the failure to include the list shall not affect the operation of this division.
(c) Notice shall also be given by publication in a newspaper of general circulation, in the county in which the municipality is located, once a week for two consecutive weeks, or if no newspaper is published in the county, notice shall be given by radio or television. The first notice shall be published at least 14 days prior to the date of the scheduled hearing.
(d) Two signs shall be conspicuously posted on the property. The wording of the signs shall not be less than one inch in height and shall be in substantially the following form:
NOTICE TO DESTROY OR REMOVE WEEDS OR DEBRIS
Notice is hereby given that on the _____ day of _____, 2__ at ___ A.M./P.M. in the council chamber, the council of the City of ______ will consider a resolution regarding the weeds growing or debris located on or in front of the property on ______ Street, in the City of ______, and described in the resolution, a copy of which is on file in the office of the city clerk. At the above time and place, the council shall determine whether the weeds or debris constitute a public nuisance that must be abated or removed; and, if so, shall order the abatement and removal of the nuisance. The cost of the abatement and removal shall be assessed upon the lands from which or in front of which the nuisance is abated or removed, and the cost shall constitute a lien for the nuisance abatement or removal upon the lands until paid.
If no objections are filed with the city clerk at least five days before the meeting of the council and unless the person appears before the council in person or through his or her representative to show cause, if any, why his or her objection should be sustained, it shall be presumed that the person accepts the notice as fact and waives any rights he or she may have to contest the abatement or removal of the nuisance and the action of the council shall be final unless good and sufficient cause can be otherwise shown.
Reference is made to the resolution, on file in the office of the city clerk, for further particulars.
Dated this _____ day of _______, 2__.
___________ Name of city By: ________ City Clerk
(e) The notice shall be posted at least seven days prior to the time for hearing objections by the governing body of the municipality.
*(Acts 1988, No. 88-329, p. 496, §4A; Act 2025-86, §1.)*
##### **§ 11-67-5** Hearing Procedures; Jurisdiction to Abate Nuisance; Finality of Decision {#sec-11-67-5 omnilex-key=us-al-statutes--title-11--11-67-5}
If objections are filed, at the time stated in the notice, the council of the Class 2 municipality shall hear and consider all evidence, objections, and protest regarding the proposed abatement or removal of weeds or debris. The council may continue the hearing from time to time. Upon the conclusion of the hearing, the council, by resolution, shall decide whether a public nuisance exists and, if so, shall order it to be abated or removed with respect to any property or part thereof described. The governing body, by passage of the resolution, shall be deemed to have acquired jurisdiction to proceed and either to perform or have performed the work of abatement or removal with respect to the property or part thereof. The decision of the governing body on the matter is final and conclusive.
*(Acts 1988, No. 88-329, p. 496, §5; Act 2025-86, §1.)*
##### **§ 11-67-6** Entry of Municipal Employees and Agents on Property for Abatement or Removal of Nuisance; Abatement or Removal by Private Contractor; Right of Owner to Abate or Remove Nuisance at Own Expense {#sec-11-67-6 omnilex-key=us-al-statutes--title-11--11-67-6}
(a) After the council passes a resolution finding the conditions of a property to be a nuisance and ordering its abatement or removal, all employees and authorized agents of the Class 2 municipality may enter the property for that purpose.
(b) The city may authorize private contractors, companies, enterprises, or individuals to abate and remove the nuisance. The council, by resolution, shall designate the contractors, companies, enterprises, or individuals that may perform the work. Those persons designated may enter the private property for purposes of abating or removing the nuisance. For purposes of this division, compliance with the competitive bid law is not required.
(c) Any property owner may have any weeds or debris abated or removed at his or her expense, provided it is abated or removed prior to the commencing of work by employees or agents of the municipality.
*(Acts 1988, No. 88-329, p. 496, §6; Act 2025-86, §1.)*
##### **§ 11-67-7** Account of Cost of Abatement or Removal of Nuisance; Report to Governing Body; Posting of Report {#sec-11-67-7 omnilex-key=us-al-statutes--title-11--11-67-7}
Each Class 2 municipality shall keep an account of the cost of abating or removing a nuisance in front of or on each separate lot or parcel of land where the work is done by the municipality or an authorized private contractor, company, enterprise, or individual, and shall provide an itemized report in writing to the governing body of the municipality showing the cost of abating or removing the nuisance. Before the report is submitted to the governing body, a copy shall be posted for a minimum of five days prior thereto on or near the chamber door of the governing body with a notice of the time when the report will be submitted to the governing body for confirmation.
*(Acts 1988, No. 88-329, p. 496, §7; Act 2025-86, §1.)*
##### **§ 11-67-8** Hearing on Costs; Costs to Constitute Nuisance Liens; Report to Revenue Commissioner; Collection; Penalties {#sec-11-67-8 omnilex-key=us-al-statutes--title-11--11-67-8}
At the time fixed for receiving and considering the report, the governing body shall hear the report, together with any objections raised by any of the property owners liable to be assessed for the work of abating or removing the nuisance, and make modifications in the report as the governing body deems necessary, after which by motion or resolution, the report shall be confirmed. The cost for abating or removing the nuisance shall be referred to as a nuisance lien, and shall constitute a lien on the property for the amount of the nuisance lien. After confirmation of the report, a copy shall be given to the revenue commissioner of the respective county who, under the “Optional Method of Taxation,” collects the municipal taxes pursuant to Division 2 of Article 1 of Chapter 51. The revenue commissioner of the respective county shall add the amounts of the respective nuisance liens to the next regular bills for taxes levied against the respective lots and parcels of land. The amounts shall be collected at the same time and in the same manner as ordinary municipal ad valorem taxes are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency.
*(Acts 1988, No. 88-329, p. 496, §8; Act 2025-86, §1.)*
##### **§ 11-67-9** Effect of Resolutions and Account Reports Confirmed Before Enactment of Article {#sec-11-67-9 omnilex-key=us-al-statutes--title-11--11-67-9}
All resolutions authorizing abatement or removal of nuisances enacted prior to the passage of this article under the authority of any other act are hereby given full force and effect and the city may proceed to have said nuisances removed or abated by either the city or by a duly authorized private contractor, company, enterprise, or individual. The procedure for confirming the account report shall be in accord with the provisions of this article.
All account reports previously confirmed prior to the enactment of this article are hereby given full force and effect and the city may proceed to collect these special assessments in the same manner as provided by prior law.
*(Acts 1988, No. 88-329, p. 496, §9.)*
#### **Subpart 2** Abatement of Repeat Nuisance
##### **§ 11-67-10** Procedures for Abatement and Removal of Repeat Nuisances {#sec-11-67-10 omnilex-key=us-al-statutes--title-11--11-67-10}
The city council in any Class 2 municipality may adopt procedures for the abatement and removal of repeat nuisances authorizing the mayor, or his or her designee, without a resolution of the city council, to take actions as necessary to abate or remove overgrown weeds or abandoned or discarded debris on property that has previously been subject to abatement or removal within the last three years through the procedures in this article. The procedures adopted by the city council shall provide for the sending of a letter to the last known address of the property owner by regular United States mail not less than 10 days prior to the order to abate or remove the nuisance. The notice to the owner of the property shall inform the owner of all of the following:
(1) The mayor, or his or her designee, has declared the property to be a nuisance.
(2) The city has previously abated or removed a nuisance on the property.
(3) The reasonable cost of the current abatement or removal shall be assessed and collected as a special assessment and lien against the property.
(4) The property owner may have the nuisance abated or removed at his or her own expense prior to the arrival of the employees, contractors, or designees assigned by the city to abate or remove the nuisance.
*(Act 2015-115, p. 328, §§1, 2; Act 2025-86, §1.)*
#### **Article 2** Abatement of Weeds in Class 5 and Class 6 or Class 8 Municipalities
##### **§ 11-67-20** Applicability of Article {#sec-11-67-20 omnilex-key=us-al-statutes--title-11--11-67-20}
This article shall only apply to Alabama Class 5 and Class 6 or Class 8 municipalities.
*(Acts 1988, No. 88-333, p. 502, §1; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-21** Weeds Which May Be Declared Public Nuisance and Abated {#sec-11-67-21 omnilex-key=us-al-statutes--title-11--11-67-21}
All weeds growing upon the streets, sidewalks, or upon private property within Class 5 or Class 6 or Class 8 municipalities of this state, which bear seeds of a wingy or downy nature, which attain a large growth so as to become a fire menace when dry, or which are otherwise noxious or dangerous, may be declared to be a public nuisance by the governing body of any Class 5 or Class 6 or Class 8 municipality, and thereafter abated as provided in this article.
*(Acts 1988, No. 88-333, p. 502, §2; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-22** Resolution Declaring Weeds to Be Public Nuisance and Ordering Abatement {#sec-11-67-22 omnilex-key=us-al-statutes--title-11--11-67-22}
Whenever any weeds are growing upon any street, sidewalk, or private property the governing body of any Class 5 or Class 6 or Class 8 municipality may, by resolution, declare the weeds to be a public nuisance and order its abatement. The resolution shall refer to the street by the name under which it is commonly known, describe the property upon which or in front of which the nuisance exists by giving a legal description of the property and no other description of the property shall be required. Any number of streets, sidewalks, or parcels of private property, may be included in one resolution.
*(Acts 1988, No. 88-333, p. 502, §3; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-23** Notice to Owner of Public Hearing; Contents; Publication in Newspaper; Posting of Signs and Form Thereof {#sec-11-67-23 omnilex-key=us-al-statutes--title-11--11-67-23}
After the passage of the resolution, notice of a public hearing on the matter shall be given by certified mail, return receipt requested, mailed 30 days prior to the date of the hearing and shall inform the owner of the time, date, and place of the hearing and the reason for the hearing. The notice shall be mailed to the owner of the property as the information appears on record in the office of the tax assessor.
All notices shall carry a list of names of persons or private contractors, or both, who perform the work and are registered with the city clerk. The names shall not constitute a recommendation and the failure to include a list shall in no way affect the operation of this article.
Notice shall also be given by publication in a newspaper normally read by all segments of the population published in the county once a week for two consecutive weeks, or if no newspaper is published in the county, notice shall be given by radio or television. The first notice shall be published at least 14 days prior to the date of the scheduled hearing.
In addition, two signs shall be conspicuously posted on the property. The wording of the signs shall not be less than one inch in height and shall be in substantially the following form: NOTICE TO DESTROY WEEDS
Notice is hereby given that on the ______ day of ______, 2__ at __ A.M./P.M. in the council chamber, the council of the City of _____ will consider a resolution regarding the weeds growing upon or in front of the property _____ Street, in the City of _____, and more particularly described in the resolution, a copy of which is on file in the office of the city clerk; and at that time and place will determine whether the weeds constitute a public nuisance which shall be abated by the removal of the noxious or dangerous weeds; and, if so, will order the abatement and removal of the nuisance, in which case the cost of abatement and removal shall be assessed upon the lots and lands from which or in front of which the weeds are removed, and the cost shall be added to the next regular bills for taxes levied against the respective lots and lands for municipal purposes. The amounts shall be collected at the same time and in the same manner as ordinary municipal taxes are collected. The amounts shall be subject to the same commissions and fees and the same procedure for foreclosure and sale in case of delinquency as provided for ordinary municipal taxes.
If no objections are filed with the city clerk at least five days before the meeting of the council and unless the person appears before the council in person or through his or her representative to show cause, if any, why his or her objection should be sustained, it shall be presumed that the person accepts the notice as fact and waives any rights he or she may have to contest the removal of the weeds and the action of the council shall be final unless good and sufficient cause can be otherwise shown.
Reference is hereby made to the resolution, on file in the office of the city clerk, for further particulars.
Dated this ______ day of _____, 2__.
__________ Name of city By: ________ City Clerk
The notice shall be posted at least seven days prior to the time for hearing objections by the governing body of the municipality.
*(Acts 1988, No. 88-333, p. 502, §4; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-24** Hearing Procedure; Decision of Council; Jurisdiction to Remove Weeds; Finality of Decision {#sec-11-67-24 omnilex-key=us-al-statutes--title-11--11-67-24}
If objections are filed, at the time stated in said notice, the City Council of _____ shall hear and consider all evidence, objections, and protest regarding the proposed removal of weeds. The council may continue the hearing from time to time. Upon the conclusion of said hearing, the council, by resolution, shall decide whether a public nuisance exists and, if so, shall order it to be removed or abated with respect to any property or part thereof described. The governing body, by passage of said resolution, shall be deemed to have acquired jurisdiction to proceed and either to perform or have performed the work of removal or abatement with respect to such property or part thereof. The decision of the governing body on the matter shall be deemed final and conclusive.
*(Acts 1988, No. 88-333, p. 502, §5.)*
##### **§ 11-67-25** Entry of Municipal Employees and Agents on Property to Abate Nuisance; Abatement by Private Contractor; Right of Owner to Have Weeds Removed at Owner’s Expense {#sec-11-67-25 omnilex-key=us-al-statutes--title-11--11-67-25}
After the council passes the resolution finding the conditions of the property to be a nuisance and ordering its abatement, all employees and duly authorized agents of a Class 5 or Class 6 or Class 8 municipality may enter upon private property for that purpose.
The council may at its option authorize private contractors, companies, enterprises, or individuals to abate and remove the nuisance. The council, by resolution, shall designate the contractors, companies, enterprises, or individuals who may perform the work. Those persons so designated may enter upon private property for purposes of abating or removing the nuisance. For purposes of this article compliance with the competitive bid law is not required.
Any property owner shall have the right to have any weeds removed at his or her own expense providing the removal is done prior to the commencing of the work by the employees or agents of the municipality to do the same.
*(Acts 1988, No. 88-333, p. 502, §6; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-26** Account of Cost of Abatement or Removal of Nuisance; Report to Governing Body; Posting of Report {#sec-11-67-26 omnilex-key=us-al-statutes--title-11--11-67-26}
Each Class 5 or Class 6 or Class 8 municipality shall keep an account of the cost of abating or removing the nuisance in front of or on each separate lot or parcel of land where the work is done by it or its employees, or by a duly authorized private contractor, company, enterprise, or individual, and shall render an itemized report in writing to the governing body of the municipality showing the cost of removing the nuisance on each separate lot, or in front of the lot and before the report is submitted to the governing body, a copy of the report shall be posted for at least five days prior thereto on or near the chamber door of the governing body, together with a notice of the time when the report shall be submitted to the governing body for confirmation.
*(Acts 1988, No. 88-333, p. 502, §7; Acts 1995, No. 95-252, p. 421, §1.)*
##### **§ 11-67-27** Hearing on Cost of Abatement or Removal of Nuisance; Costs to Constitute Weed Liens; Report to Tax Collector; Amounts to Be Included in Tax Bills; Collection {#sec-11-67-27 omnilex-key=us-al-statutes--title-11--11-67-27}
At the time fixed for receiving and considering said report, the governing body shall hear the same, together with any objections which may be raised by any of the property owners liable to be assessed for the work of abating said nuisance and thereupon make such modifications in the report as they deem necessary, after which by motion or resolution said report shall be confirmed. The amounts of the cost for abating such nuisance in front of or upon the various parcels of land mentioned in said report shall hereinafter be referred to as “weed liens,” and as thus made and confirmed shall constitute a weed lien on said property for the amount of such weed liens, respectively. After confirmation of said reports, a copy shall be turned over to the tax collector of the county who, under the “Optional Method of Taxation,” is charged with the collection of the city’s municipal taxes pursuant to Sections 11-51-40 through 11-51-74; whereupon it shall be the duty of said county tax collector to add the amounts of the respective weed liens to the next regular bills for taxes levied against the said respective lots and parcels of land, and thereafter said amounts shall be collected at the same time and in the same manner as ordinary municipal ad valorem taxes are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency.
*(Acts 1988, No. 88-333, p. 502, §8.)*
##### **§ 11-67-28** Effect of Resolutions and Account Reports Confirmed Before Enactment of Article {#sec-11-67-28 omnilex-key=us-al-statutes--title-11--11-67-28}
All resolutions authorizing abatement or removal of nuisances enacted prior to the passage of this article under the authority of any other act are hereby given full force and effect and the city may proceed to have said nuisances removed or abated by either the city or by a duly authorized private contractor, company, enterprise, or individual. The procedure for confirming the account report shall be in accord with the provisions of this article.
All account reports previously confirmed prior to the enactment of this article are hereby given full force and effect and the city may proceed to collect these special assessments in the same manner as provided by prior law.
*(Acts 1988, No. 88-333, p. 502, §9.)*
#### **Article 3** Abatement of Grass and Weeds in Certain Class 4 Municipalities
##### **§ 11-67-40** Article Applicable Only to Certain Class 4 Municipalities {#sec-11-67-40 omnilex-key=us-al-statutes--title-11--11-67-40}
The provisions of this article shall apply only to a Class 4 municipality which has adopted the form of government provided by Chapter 43B of Title 11. This article shall not apply to a Class 4 municipality which has adopted the form of government provided by Chapter 44B of Title 11.
*(Acts 1993, No. 93-306, p. 453, §1.)*
##### **§ 11-67-41** Grass or Weeds May Be Declared Public Nuisance and Abated {#sec-11-67-41 omnilex-key=us-al-statutes--title-11--11-67-41}
An abundance of overgrown grass or weeds within the city which is injurious to the general public health, safety, and general welfare by providing breeding grounds and shelter for rats, mice, snakes, mosquitoes, and other vermin, insects, and pests; or attaining heights and dryness so as to constitute a serious fire threat or hazard; or bearing wingy or downy seeds, when mature, that cause the spread of weeds and, when breathed, irritation to the throat, lungs, and eyes of the public; or hiding debris, such as broken glass or metal, which could inflict injury on a person going upon the property; or being unsightly; or a growth of grass or weeds, other than ornamental plant growth, which exceeds 12 inches in height, may be declared to be a public nuisance and abated as provided in this article.
*(Acts 1993, No. 93-306, p. 453, §2.)*
##### **§ 11-67-42** Notice {#sec-11-67-42 omnilex-key=us-al-statutes--title-11--11-67-42}
(a) Whenever in the opinion of the city official or any other city employee designated by the mayor, a nuisance exists, the official shall order the owner of the property on which the nuisance is located to abate the condition.
(b) The enforcing official shall give the owner written notice in person or by first class mail. The notice shall require the owner to abate the condition within the time stated in the notice or to request a hearing before an administrative official of the city designated by the mayor or council to determine whether there has been a violation. The notice shall apprise the owner of the facts of the alleged nuisance and shall name the particular date, time, and place for the hearing if requested by the owner.
(c) The notice shall be sent to that person shown by the records of the county to have been the last person assessed for payment of ad valorem tax on the property where the nuisance is situated. It shall be the responsibility of that person to promptly advise the enforcing official of a change of ownership or interest in the property.
(d) The notice shall also be posted in a conspicuous place on the property.
(e) The notice shall require the owner to complete abatement of the nuisance within 14 days from the date of notice, provided the enforcing official may stipulate additional time, but in no case more than 28 days.
(f) A hearing before the administrative official shall be requested within five days of the date of the notice by the enforcing official. The enforcing official shall notify the owner by personal service or by first class mail of the determination of the administrative official. If the administrative official determines that a nuisance exists, the owner shall comply with the initial order to abate issued by the enforcing official, with modifications as may be made by the administrative official.
*(Acts 1993, No. 93-306, p. 453, §3.)*
##### **§ 11-67-43** Failure to Abate Condition; Assessing Cost of Abatement {#sec-11-67-43 omnilex-key=us-al-statutes--title-11--11-67-43}
(a) If the owner fails, neglects, or refuses to abate the condition after notice to do so, the enforcing official shall cause the offending grass or weeds to be cut.
(b) Upon completion of the abatement work performed by the city, including work by contractors employed by the city, the enforcing official shall compute the actual expenses, including, but not limited to, total wages paid, value of the use of equipment, advertising expenses, postage, and materials purchased, which were incurred by the city as a result of the work. An itemized statement of the expenses shall be given by first class mail to the last known address of the owner of the property. This notice shall be sent at least five days in advance of the time fixed by the city council to consider the assessment of the cost against property.
(c) At the time fixed for receiving and considering the statement, the council shall hear the same, together with any objections which may be raised by the owner whose property is liable to be assessed for the work and thereupon make modifications in the statement as they deem necessary, after which a resolution may assess the cost. The cost stated in the resolution shall constitute a special assessment against the land and shall constitute a lien on the property. The city clerk shall charge the assessments against the respective lots and parcels of land for municipal purposes. Thereafter, the amounts shall be collected at the same time and in the same manner as ordinary municipal assessments are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency as provided for ordinary municipal assessments.
(d) The city clerk shall cause a certified copy of the resolution assessing the cost of abatement to be filed for recording in the office of the judge of probate and shall forward a copy to the county tax collector. Upon a filing the tax collector shall add the amount of the lien to the ad valorem tax bill on the property and shall collect the amount as if it were a tax, using all methods available for collecting ad valorem tax, and remit the amount to the city.
*(Acts 1993, No. 93-306, p. 453, §4.)*
##### **§ 11-67-44** Authority to Assess Against Property Sold to State for Nonpayment of Taxes; Effect of Subsequent Redemption or Sale by State on Lien {#sec-11-67-44 omnilex-key=us-al-statutes--title-11--11-67-44}
The city shall have the power to assess the costs authorized herein against any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes, and where an assessment is made against a lot or lots or parcel or parcels of land, a subsequent redemption thereof by a person authorized to redeem, or sale thereof by the state, shall not operate to discharge, or in any manner affect the lien of the city for the assessment, but a redemptioner or purchaser at a sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the assessment.
*(Acts 1993, No. 93-306, p. 453, §5.)*
##### **§ 11-67-45** Article Cumulative in Nature {#sec-11-67-45 omnilex-key=us-al-statutes--title-11--11-67-45}
This article is cumulative in its nature and in addition to any and all power and authority which a city may have under any other law.
*(Acts 1993, No. 93-306, p. 453, §6.)*
#### **Article 4** Abatement of Weeds in Any Municipality
##### **§ 11-67-60** Authority to Abate Public Nuisance {#sec-11-67-60 omnilex-key=us-al-statutes--title-11--11-67-60}
An abundance of overgrown grass or weeds within a municipality that is injurious to the general public health, safety, and general welfare by providing breeding grounds and shelter for rats, mice, snakes, mosquitoes, and other vermin, insects, and pests; or attaining heights and dryness that constitute a serious fire threat or hazard; or bearing wingy or downy seeds, when mature, that cause the spread of weeds and, when breathed, irritation to the throat, lungs, and eyes of the public; or hiding debris, such as broken glass or metal, that could inflict injury on a person going upon the property; or being unsightly; or a growth of grass or weeds, other than ornamental plant growth, that exceeds 12 inches in height, may be declared to be a public nuisance by the municipal governing body and abated as provided in this article. The term municipality as defined in this article does not include the police jurisdiction of said municipality.
*(Act 2000-774, p. 1771, §1.)*
##### **§ 11-67-61** Weeds May Be Declared Public Nuisance; Resolution to Abate {#sec-11-67-61 omnilex-key=us-al-statutes--title-11--11-67-61}
Whenever any weeds are growing upon any street, sidewalk, or private property, the governing body of any incorporated municipality may, by resolution, declare the weeds to be a public nuisance and order its abatement. The resolution shall refer to the street by the name under which it is commonly known or describe the property upon which or in front of which the nuisance exists by giving a legal description of the property and no other description of the property shall be required. Any number of streets, sidewalks, or parcels of private property may be included in one resolution. This article shall not apply to any property that has been zoned agricultural property.
*(Act 2000-774, p. 1771, §2.)*
##### **§ 11-67-62** Notice {#sec-11-67-62 omnilex-key=us-al-statutes--title-11--11-67-62}
(a) After the passage of the resolution, notice of a public hearing on the matter shall be given by certified mail, return receipt requested, mailed 21 days prior to the date of the hearing and shall inform the owner of the time, date, and place of the hearing and the reason for the hearing. The notice shall be mailed to the owner of the property as the information appears on record in the office of the tax assessor.
(b) All notices shall carry a list of names of persons or private contractors, or both, who perform the work and are registered with the municipal clerk. The names shall not constitute a recommendation and the failure to include a list shall in no way affect the operation of this article.
(c) Notice shall also be given by publication in a newspaper of general circulation published in the municipality once a week for two consecutive weeks, or if no newspaper is published in the municipality, notice shall be posted in three public places located in the municipality for at least 21 days prior to the hearing.
(d) In addition, two signs shall be conspicuously posted on the property. The wording of the signs shall not be less than one inch in height and shall be in substantially the following form:
NOTICE TO DESTROY WEEDS
Notice is hereby given that on the ___day of___, 20_ at ___ A.M./P.M. in the council chamber, the council of the Municipality of ____ will consider a resolution regarding the weeds growing upon or in front of the property ___ Street, in the Municipality of ____, and more particularly described in the resolution, a copy of which is on file in the office of the municipal clerk; and at that time and place will determine whether the weeds constitute a public nuisance which shall be abated by removal of the noxious or dangerous weeds; and, if so, will order the abatement and removal of the nuisance. If abatement and removal are ordered, the cost of abatement and removal shall be assessed upon the lots and lands from which or in front of which the weeds are removed, and the cost shall be added to the next regular bills for taxes levied against the respective lots and lands for municipal purposes. The costs shall be collected at the same time and in the same manner as ordinary municipal taxes are collected. The costs shall be subject to the same commissions and fees and the same procedure for foreclosure and sale in case of delinquency as provided for ordinary municipal taxes.
If no objections are filed with the municipal clerk at least five days before the meeting of the council and unless the person appears before the council in person or through his or her representative to show cause, if any, why his or her objection should be sustained, it shall be presumed that the person accepts the notice as fact and waives any rights he or she may have to contest the removal of the weeds and the action of the council shall be final unless good and sufficient cause can be otherwise shown.
Reference is hereby made to the resolution, on file in the office of the municipal clerk, for further particulars.
Dated this ___ day of ____, 20__.
___________________
Name of Municipality
__________
City Clerk
(e) The notice shall be posted at least seven days prior to the time for hearing objections by the governing body of the municipality.
*(Act 2000-774, p. 1771, §3.)*
##### **§ 11-67-63** Hearing {#sec-11-67-63 omnilex-key=us-al-statutes--title-11--11-67-63}
If objections are filed, at the time stated in the notice, the governing body of the municipality shall hear and consider all evidence, objections, and protests regarding the proposed removal of weeds. The governing body of the municipality may continue the hearing from time to time. Upon the conclusion of the hearing, the governing body of the municipality, by resolution, shall decide whether a public nuisance exists and, if so, shall order it to be removed or abated with respect to any property or part thereof described. The governing body, by passage of the resolution, shall be deemed to have acquired jurisdiction to proceed and either to perform or have performed the work of removal or abatement with respect to the property or part thereof. The decision of the governing body on the matter shall be deemed final and conclusive.
*(Act 2000-774, p. 1771, §4.)*
##### **§ 11-67-64** Abatement of Nuisance {#sec-11-67-64 omnilex-key=us-al-statutes--title-11--11-67-64}
(a) After the governing body passes the resolution finding the conditions of the property to be a nuisance and ordering its abatement, all employees and duly authorized agents of the municipality may enter upon the private property to abate the nuisance.
(b) The governing body may authorize private contractors, companies, enterprises, or individuals to abate and remove the nuisance. The governing body of the municipality, by resolution, shall designate the contractors, companies, enterprises, or individuals who may perform the work. Those persons so designated may enter upon private property for purposes of abating or removing the nuisance. For purposes of this article compliance with the competitive bid law is not required.
(c) Any property owner shall have the right to have any weeds removed at his or her own expense providing the removal is done prior to the commencing of the work by the employees or agents of the municipality to do the removal.
*(Act 2000-774, p. 1771, §5.)*
##### **§ 11-67-65** Report of Costs {#sec-11-67-65 omnilex-key=us-al-statutes--title-11--11-67-65}
Each municipality shall keep an account of the cost of abating or removing the nuisance in front of or on each separate lot or parcel of land where the work is done by its employees, or by a duly authorized private contractor, company, enterprise, or individual, and shall render an itemized report in writing to the governing body of the municipality showing the cost of removing the nuisance on each separate lot, or in front of the lot. Before the report is submitted to the governing body, a copy of the report shall be posted for at least five days prior thereto on or near the chamber door of the governing body, together with a notice of the time when the report shall be submitted to the governing body for confirmation.
*(Act 2000-774, p. 1771, §6.)*
##### **§ 11-67-66** Confirmation of Report; Weed Liens {#sec-11-67-66 omnilex-key=us-al-statutes--title-11--11-67-66}
At the time fixed for receiving and considering the report, the governing body shall hear the report, together with any objections which may be raised by any of the property owners liable to be assessed for the work of abating the nuisance and thereupon make modifications in the report as deemed necessary, after which by motion or resolution the report shall be confirmed. The amounts of the cost for abating the nuisance in front of or upon the various parcels of land mentioned in the report shall hereinafter be referred to as “weed liens,” and shall constitute a weed lien on the property for the amount of the weed liens, respectively. After confirmation of the reports, a copy shall be given to the tax collector or revenue commissioner of the county who, under the “Optional Method of Taxation,” is charged with the collection of the municipal taxes pursuant to Article 1, Division 2, Chapter 51, of Title 11. It shall be the duty of the county tax collector or revenue commissioner to add the costs of the respective weed liens to the next regular bills for taxes levied against the respective lots and parcels of land subject to a weed lien, and thereafter, the costs shall be collected at the same time and in the same manner as ordinary municipal ad valorem taxes are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency; provided, however, that if the foreclosure and sale is the result of a delinquency caused by a weed lien, the municipality shall reimburse the county tax collector or revenue commissioner for all costs associated with the foreclosure and sale unless the costs are collected at the time of sale as part of the sale.
*(Act 2000-774, p. 1771, §7.)*
##### **§ 11-67-67** Article Cumulative {#sec-11-67-67 omnilex-key=us-al-statutes--title-11--11-67-67}
This article is cumulative in its nature and in addition to any and all power and authority which a municipality may have under any other law.
*(Act 2000-774, p. 1771, §8.)*
##### **§ 11-67-68** Alternate Abatement Procedures; Costs {#sec-11-67-68 omnilex-key=us-al-statutes--title-11--11-67-68}
(a) In the case of any property on which overgrown grass or weeds have been previously abated or on which abatement has been attempted through the process of posting notice on the property to be abated pursuant to Article 2 or this article, a municipality may adopt procedures different from the procedures provided in Article 2 or this article to abate overgrown grasses and weeds for subsequent abatement.
(b) After the abatement of any overgrown grass or weeds pursuant to the procedures provided in the ordinance adopted pursuant to this section, the reasonable costs of abatement shall be assessed and collected as a weed lien in the same manner as provided in Section 11-67-66. The municipality may assess the reasonable costs authorized against any lot or lots or parcel or parcels of land purchased by the State of Alabama or any purchaser at any sale for the nonpayment of taxes, and where an assessment is made against a lot or lots or parcel or parcels of land, a subsequent redemption thereof by a person authorized to redeem or the sale thereof by the state shall not operate to discharge, or in any manner affect the lien of the municipality for the assessment. A person redeeming the property or purchaser at a sale by the state of any lot or lots or parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state or purchaser for the nonpayment of taxes, shall take the same subject to the assessment.
(c) Any municipality that adopts or has adopted alternate procedures for the abatement of overgrown grasses or weeds pursuant to any other general or local law may follow those procedures or may follow the procedures provided in this section.
*(Act 2014-303, p. 1097, §1.)*
#### **Article 5** Abatement of Weeds in Class 7 Municipaities
##### **§ 11-67-80** Abatement of Public Nuisance; Costs {#sec-11-67-80 omnilex-key=us-al-statutes--title-11--11-67-80}
In any Class 7 municipality, in the case of any overgrown grass or weeds which may be abated pursuant to Article 4, commencing at Section 11-67-60, of this chapter, the city council may adopt procedures different from the procedures provided in Article 4 to declare overgrown grass or weeds to be a public nuisance and abated pursuant to the procedures provided in the ordinance. After the abatement of any overgrown grass or weeds pursuant to the procedures provided in the ordinance, the costs of abatement shall be assessed and collected as a weed lien in the same manner as provided in Section 11-67-66. The municipality may assess the costs authorized against any lot or lots or parcel or parcels of land purchased by the State of Alabama or any purchaser at any sale for the nonpayment of taxes, and where an assessment is made against a lot or lots or parcel or parcels of land, a subsequent redemption thereof by a person authorized to redeem or the sale thereof by the state shall not operate to discharge, or in any manner affect the lien of the municipality for the assessment. A person redeeming the property or purchaser at a sale by the state of any lot or lots or parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state or purchaser for the nonpayment of taxes, shall take the same subject to the assessment.
*(Act 2010-562, p. 1139, §1.)*
#### **Article 6** Abatement of Weeds in Certain Class 6 Municipalities
#### **Subpart 1** Alternate Council Form of Government
##### **§ 11-67-90** Article Applicable Only to Certain Class 6 Municipalities {#sec-11-67-90 omnilex-key=us-al-statutes--title-11--11-67-90}
This division shall apply only to a Class 6 municipality having an alternate council as provided in Section 11-43A-8, under the form of government provided in Article 1, Chapter 43A of this title.
*(Act 2012-440, p. 1241, §1.)*
##### **§ 11-67-91** Grass or Weeds May Be Declared Public Nuisance and Abated {#sec-11-67-91 omnilex-key=us-al-statutes--title-11--11-67-91}
(a) An abundance of overgrown grass or weeds within the municipality which is injurious to the general public health, safety, and general welfare by providing breeding grounds and shelter for rats, mice, snakes, mosquitoes, and other vermin, insects, and pests; or attaining heights and dryness so as to constitute a serious fire threat and hazard; or bearing wingy or downy seeds, which when mature, cause the spread of weeds and, when breathed in, cause irritation of the throat, lungs, and eyes of the public; or hiding debris, such as broken glass or metal, which could inflict injury on a person going upon the property; or being unsightly; or growth of grass or weeds, other than ornamental plant growth, which exceeds 12 inches in height, may be declared to be a public nuisance and abated as provided in this division.
(b) This division shall not apply to any of the following:
(1) Heavily wooded areas in their natural state which are undeveloped.
(2) Farm properties.
(3) Properties under current construction.
*(Act 2012-440, p. 1241, §2.)*
##### **§ 11-67-92** Notice {#sec-11-67-92 omnilex-key=us-al-statutes--title-11--11-67-92}
(a) Whenever in the opinion of the city official or any other city employee designated by the city manager, a nuisance exists, the official shall order the owner of the property on which the nuisance is located to abate the condition.
(b) The enforcing official shall give the owner written notice in person or by first class mail. The notice shall apprise the owner of the facts of the alleged nuisance and require the condition be abated within the time stated in the notice or to request a hearing before an administrative official of the city designated by the city manager, to determine whether there has been a violation.
(c) The notice shall be sent to that person shown by the records of the county to have been the last person assessed for payment of ad valorem tax on the property where the nuisance is situated. It shall be the responsibility of that person to promptly advise the enforcing official of a change of ownership or interest in the property.
(d) The notice shall also be posted in a conspicuous place on the property.
(e) The notice shall require the owner to complete abatement of the nuisance within 14 days from the date of notice, provided the enforcing official may stipulate additional time, but in no case more than 28 days.
(f) A property owner shall have five days in which to request a hearing before the administrative official to appeal the determination of the enforcing official. After the hearing, the enforcing official shall notify the owner by personal service or by first class mail of the determination of the administrative official. If the administrative official determines that a nuisance exists, the owner shall comply with the initial order to abate issued by the enforcing official, with modifications as may be made by the administrative official. Any person aggrieved by the decision of the administrative official at the hearing, within 10 days, may appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount to be approved by the circuit clerk. Upon filing of the notice of appeal and approval of the bond, the clerk of the court shall serve a copy of the notice of appeal on the clerk of the municipality and the appeal shall be docketed in the court and shall be a preferred case therein. The clerk of the municipality, upon receiving the notice, shall file with the clerk of the court a copy of the findings and determination of the administrative official in its proceedings. Any trials shall be held without jury upon the determination of the administrative official that the weeds are a public nuisance.
*(Act 2012-440, p. 1241, §3.)*
##### **§ 11-67-93** Failure to Abate Condition; Assessing Cost of Abatement {#sec-11-67-93 omnilex-key=us-al-statutes--title-11--11-67-93}
(a) If the owner fails, neglects, or refuses to abate the condition after notice to do so, the enforcing official shall cause the offending grass or weeds to be cut.
(b) Upon completion of the abatement work performed by the municipality, including work by contractors employed by the municipality, the enforcing official shall compute the actual expenses, including, but not limited to, total wages paid, value of the use of equipment, advertising expenses, postage, and materials purchased, which were incurred by the municipality as a result of the work. An itemized statement of the expenses shall be given by first class mail to the last known address of the owner of the property. This notice shall be sent at least five days in advance of the city council meeting in which they will consider the assessment of the cost against property.
(c) At the time fixed for receiving and considering the statement, the council shall hear the same, together with any objections which may be raised by the owner whose property is liable to be assessed for the work and thereupon make modifications in the statement as they deem necessary, after which a resolution may assess the cost. The cost stated in the resolution shall constitute a lien on the property. The city clerk shall charge the assessments against the respective lots and parcels of land for municipal purposes. Thereafter, the amounts shall be collected at the same time and in the same manner as ordinary municipal assessments are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency as provided for ordinary municipal assessments.
(d) The city clerk shall cause a certified copy of the resolution assessing the cost of abatement to be filed for recording in the office of the judge of probate and shall forward a copy to the county tax collector. Upon a filing, the tax collector shall add the amount of the lien to the ad valorem tax bill on the property and shall collect the amount as if it were a tax, using all methods available for collecting ad valorem tax, and remit the amount to the municipality.
*(Act 2012-440, p. 1241, §4.)*
##### **§ 11-67-94** Effect of Redemption or Sale {#sec-11-67-94 omnilex-key=us-al-statutes--title-11--11-67-94}
Where an assessment is made against a lot or lots or parcel or parcels of land, a subsequent redemption by a person authorized to redeem, or sale by the state, shall not operate to discharge, or in any manner affect the lien of the municipality for the assessment, but a redemptioner or purchaser at a sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the assessment.
*(Act 2012-440, p. 1241, §5.)*
##### **§ 11-67-95** Construction of Division {#sec-11-67-95 omnilex-key=us-al-statutes--title-11--11-67-95}
This division is cumulative in its nature and in addition to any and all power and authority which a municipality may have under any other law.
*(Act 2012-440, p. 1241, §6.)*
#### **Part 2** Mayor-Council or Manager-Council Form of Government
##### **§ 11-67-120** Division Applicable Only to Certain Class 6 Municipalities {#sec-11-67-120 omnilex-key=us-al-statutes--title-11--11-67-120}
This division shall apply only to a Class 6 municipality adopting the form of government provided in Chapter 44D of this title.
*(Act 2012-366, p. 915, §1.)*
##### **§ 11-67-121** Grass or Weeds May Be Declared Public Nuisance and Abated {#sec-11-67-121 omnilex-key=us-al-statutes--title-11--11-67-121}
(a) An abundance of overgrown grass or weeds within the municipality which is injurious to the general public health, safety, and general welfare by providing breeding grounds and shelter for rats, mice, snakes, mosquitoes, and other vermin, insects, and pests; or attaining heights and dryness so as to constitute a serious fire threat and hazard; or bearing wingy or downy seeds, which when mature, cause the spread of weeds and, when breathed in, cause irritation of the throat, lungs, and eyes of the public; or hiding debris, such as broken glass or metal, which could inflict injury to persons; or being unsightly; or growth of grass or weeds, other than ornamental plant growth, which exceeds 12 inches in height may be declared to be a public nuisance and abated as provided in this division.
(b) This division shall not apply to any of the following:
(1) Heavily wooded areas in their natural state which are undeveloped.
(2) Farm properties.
(3) Properties under current construction.
*(Act 2012-366, p. 915, §2.)*
##### **§ 11-67-122** Notice {#sec-11-67-122 omnilex-key=us-al-statutes--title-11--11-67-122}
(a) Whenever, in the opinion of the city official or any other city employee designated by the mayor, a nuisance exists, the official shall order the owner of the property on which the nuisance is located to abate the condition.
(b) The enforcing official shall give the owner written notice in person or by certified letter with signature of receipt required. The notice shall require the owner to abate the condition within the time stated in the notice or to request a hearing before an administrative official of the city designated by the mayor or council to determine whether there is a nuisance. The notice shall apprise the owner of the facts of the alleged nuisance and shall name the particular date, time, and place for the hearing if requested by the owner.
(c) The notice shall be sent to that person shown by the records of the county to have been the last person assessed for payment of ad valorem tax on the property where the nuisance is situated. It shall be the responsibility of that person to promptly advise the enforcing official of a change of ownership or interest in the property.
(d) The notice shall also be posted in a conspicuous place on the property.
(e) The notice shall require the owner to complete abatement of the nuisance within 14 days from the date of notice, provided the enforcing official may stipulate additional time, but in no case more than 28 days.
(f) A hearing before the administrative official shall be requested within five days of the date of the notice by the enforcing official. The enforcing official shall notify the owner by personal service or by certified mail of the determination of the administrative official. If the administrative official determines that a nuisance exists, the owner shall comply with the initial order to abate issued by the enforcing official, with modifications as may be made by the administrative official.
(g) Any person aggrieved by the decision of the administrative official at the hearing may, within 10 days from receipt of the determination by the administrative official, appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount to be approved by the circuit clerk. Upon filing of the notice of appeal and approval of the bond, the clerk of the court shall serve a copy of the notice of appeal on the clerk of the municipality and the appeal shall be docketed in the court and shall be a preferred case. The clerk of the municipality shall, upon receiving the notice, file with the clerk of the court a copy of the finding and determination of the administrative official in its proceedings. Any trials shall be held without a jury upon the determination of the administrative official that the weeds are a public nuisance.
*(Act 2012-366, p. 915, §3.)*
##### **§ 11-67-123** Failure to Abate Condition; Assessing Cost of Abatement {#sec-11-67-123 omnilex-key=us-al-statutes--title-11--11-67-123}
(a) If the owner fails, neglects, or refuses to abate the condition after notice to do so, the enforcing official shall cause the offending grass or weeds to be cut.
(b) Upon completion of the abatement work performed by the municipality, including work by contractors employed by the city, the enforcing official shall compute the actual expenses, including, but not limited to, total wages paid, value of the use of equipment, advertising expenses, postage, and materials purchased, which were incurred by the municipality as a result of the work. An itemized statement of the expenses shall be provided by certified letter with signature receipt required to the last known address of the owner of the property. This notice shall be sent at least five days in advance of the time fixed by the city council to consider the assessment of the cost against the property.
(c) At the time fixed for receiving and considering the statement, the council shall hear the same, together with any objections which may be raised by the owner whose property is liable to be assessed for the work and make modifications in the statement as deemed necessary, after which a resolution may assess the cost. The cost stated in the resolution shall constitute a lien on the property. The revenue officer shall charge the assessments against the respective lots or parcels of land for municipal purposes. Thereafter, the amounts shall be collected at the same time and in the same manner as ordinary municipal assessments are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency as provided for ordinary municipal assessments.
(d) The revenue officer shall cause a certified copy of the resolution assessing the cost of abatement to be filed for recording in the office of the judge of probate and shall forward a copy to the Lee County Revenue Commissioner. Upon a filing, the Lee County Revenue Commissioner shall add the amount of the lien to the ad valorem tax bill on the property and shall collect the amount as if it were a tax, using all methods available for collecting ad valorem tax, and remit the amount to the municipality.
*(Act 2012-366, p. 915, §4.)*
##### **§ 11-67-124** Effect of Redemption or Sale {#sec-11-67-124 omnilex-key=us-al-statutes--title-11--11-67-124}
Where an assessment is made against a lot or lots or parcel or parcels of land, a subsequent redemption by a person authorized to redeem, or sale by the state, shall not operate to discharge, or in any manner affect the lien of the municipality for the assessment, but a redemptioner or purchaser at a sale by the state of any lot or lots or parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the assessment.
*(Act 2012-366, p. 915, §5.)*
##### **§ 11-67-125** Construction of Division {#sec-11-67-125 omnilex-key=us-al-statutes--title-11--11-67-125}
This division is cumulative in its nature and is in addition to any and all power and authority which a Class 6 municipality may have under any other law.
*(Act 2012-366, p. 915, §6.)*
#### **Article 7** Abatement of Grass and Weeds in Certain Class 5 Municipalities
##### **§ 11-67-140** Article Applicable Only to Certain Class 5 Municipalities {#sec-11-67-140 omnilex-key=us-al-statutes--title-11--11-67-140}
This article shall only apply to a Class 5 municipality with a mayor/commission/city manager form of government.
*(Act 2021-138, §1.)*
##### **§ 11-67-141** Grass or Weeds May Be Declared Public Nuisance and Abated {#sec-11-67-141 omnilex-key=us-al-statutes--title-11--11-67-141}
(a) An abundance of overgrown grass or weeds within the municipality which is injurious to the general public health, safety, and general welfare by providing breeding grounds and shelter for rats, mice, snakes, mosquitoes, and other vermin, insects, and pests; or attaining heights and dryness so as to constitute a serious fire threat or hazard; or bearing wingy or downy seeds, when mature, that cause the spread of weeds and, when breathed, irritation to the throat, lungs, and eyes of the public; or hiding debris, such as broken glass or metal, which could inflict injury on a person going upon the property; or being unsightly; or a growth of grass or weeds, including plants of no value, undesirable, and usually of rank growth; or grass, shrubs, and undergrowth, other than ornamental plant growth, which exceeds 12 inches in height, are declared to be a public nuisance and abated as provided in this article.
(b) This article shall not apply to any of the following:
(1) Heavily wooded areas in their natural state which are undeveloped.
(2) Farm properties.
(3) Properties under current construction.
*(Act 2021-138, §2.)*
##### **§ 11-67-142** Definitions {#sec-11-67-142 omnilex-key=us-al-statutes--title-11--11-67-142}
For the purposes of this article, the following words have the following meanings:
(1) ADMINISTRATIVE OFFICIAL. A person designated by the city manager to hear appeals for the purposes of this article, but the person may not be the same person as the enforcing official.
(2) ENFORCING OFFICIAL. The municipal official or an employee the city manager may designate from time to time.
(3) TAX COLLECTING OFFICIAL. The county tax collector, county revenue commissioner, or other county ad valorem tax collecting official.
*(Act 2021-138, §3.)*
##### **§ 11-67-143** Notice {#sec-11-67-143 omnilex-key=us-al-statutes--title-11--11-67-143}
(a) Whenever in the opinion of the city official or any other city employee designated by the city manager, a nuisance exists, the enforcing official shall order the owner of the property on which the nuisance is located to abate the condition.
(b) The enforcing official shall give the owner written notice in person or by first class mail. The notice shall apprise the owner of the facts of the alleged nuisance and require the condition be abated within the time stated in the notice or to request a hearing before an administrative official of the city designated by the city manager, to determine whether there has been a violation.
(c) The notice shall be sent to that person shown by the records of the county to have been the last person assessed for payment of ad valorem tax on the property where the nuisance is situated. It shall be the responsibility of that person to promptly advise the enforcing official of a change of ownership or interest in the property.
(d) The notice shall also be posted in a conspicuous place on the property.
(e) The notice shall require the owner to complete abatement of the nuisance within 10 days from the date of notice, provided the enforcing official may stipulate additional time, but in no case more than 28 days.
(f) A property owner shall have five days in which to request a hearing before the administrative official to appeal the determination of the enforcing official. After the hearing, the enforcing official shall notify the owner by personal service or by first class mail of the determination of the administrative official.
(g) At the hearing, any interested party shall have the right to present evidence and testimony. The hearing shall be open to the public, and a record of the proceedings shall be kept as a part of the public records of the municipality.
(h) The administrative official shall render a written decision on the merits of the proposed abatement within five days of the conclusion of the hearing. The enforcing official shall notify the owner by personal service or by first class mail of the written determination of the administrative official. If the administrative official determines that a nuisance exists and should be abated, the written determination of the administrative official shall inform the owner that the owner must complete the abatement ordered by the enforcing official within 10 days of the date of the administrative official’s decision, or upon such additional time, but in no case more than 28 days from the administrative official’s determination. If the administrative official determines that a nuisance does not exist, then the enforcing official’s notice to abate the nuisance will be null and void, but that determination shall not bar any subsequent notice concerning the same property.
*(Act 2021-138, §4.)*
##### **§ 11-67-144** Appeal and Review {#sec-11-67-144 omnilex-key=us-al-statutes--title-11--11-67-144}
(a) Any person aggrieved by the decision of the administrative official at the hearing, within 10 days, may appeal to the circuit court upon filing with the clerk of the court notice of the appeal and bond for security of costs in the form and amount to be approved by the circuit clerk. Upon filing of the notice of appeal and approval of the bond, the clerk of the court shall serve a copy of the notice of appeal on the clerk of the municipality and the appeal shall be docketed in the court and shall be a preferred case therein. The clerk of the municipality, upon receiving the notice, shall file with the clerk of the court a copy of the record, findings and determination of the administrative official in its proceedings. Any trials shall be held without jury upon the determination of the administrative official that the weeds are a public nuisance.
(b) The circuit court shall not itself hear or accept any further evidence with respect to those issues made the basis of the appeal. The review shall be conducted by the court without a jury and shall be confined to the record. The findings of the administrative official, if supported by substantial evidence, shall be conclusive on appeal. If upon appeal the court finds that the ruling appealed from is unlawful within the meaning of this article, it shall have the power to vacate or modify the same.
*(Act 2021-138, §5.)*
##### **§ 11-67-145** Failure to Abate Condition; Assessing Cost of Abatement {#sec-11-67-145 omnilex-key=us-al-statutes--title-11--11-67-145}
(a) If the owner fails, neglects, or refuses to abate the nuisance, or the nuisance is not otherwise abated, (1) within the time permitted to do so as stated in the enforcing official’s notice, where such notice was not suspended by the request for a hearing before the administrative official; or (2) within the time permitted to do so as stated in the administrative official’s written determination, then the municipality may enter upon the property and abate the nuisance using its own forces, or it may provide by contract for the abatement. However, if an appeal has been taken to the circuit court as provided in Section 11-67-144, then the municipality may not abate the nuisance until the determination or judgment authorizing abatement becomes final as provided by law.
(b) Upon completion of the abatement work performed by the municipality, including work by contractors employed by the municipality, the enforcing official shall compute the expenses of the municipality for the abatement of the nuisance, including, but not limited to, cost of labor, value of the use of the equipment, advertising expenses, postage, administrative expense, legal expense, and materials purchased which were incurred by the municipality as a result of the work. An itemized statement of the expenses shall be given by first class mail to the last known address of the owner of the property. This notice shall be sent at least five days in advance of the time fixed by the municipal governing body to consider the assessment of the cost against property.
(c) At the time fixed for receiving and considering the statement, the municipal governing body shall hear the same, together with any objections which may be raised by the owner whose property is liable to be assessed for the expenses of the municipality for the abatement of the nuisance, and thereupon make modifications in the statement as deemed necessary, after which a resolution may assess the cost. The cost stated in the resolution shall constitute a lien on the property and shall be referred to as a weed lien on the property. A weed lien established pursuant to this article is subject to and subordinate to any mortgage or security interest recorded prior to the recordation of the weed lien.
(d) A copy of the resolution shall be given to the county tax collecting official. It shall be the duty of the county tax collecting official to add the costs of the weed lien to the next regular bill for taxes levied against the property subject to the weed lien, and thereafter, the costs shall be collected and remitted to the municipality at the same time and in the same manner as ordinary municipal ad valorem taxes are collected, and shall be subject to the same penalties and the same procedure under foreclosure and sale in case of delinquency; provided, however, that if the foreclosure and sale is the result of a delinquency caused by a weed lien, the municipality shall reimburse the county tax collecting official for all costs associated with the foreclosure and sale unless the costs are collected at the time of sale as part of the sale.
(e) The municipal clerk may also cause a certified copy of the resolution showing the weed lien to be filed for recording in the office of the judge of probate.
*(Act 2021-138, §6.)*
##### **§ 11-67-146** Weed Lien {#sec-11-67-146 omnilex-key=us-al-statutes--title-11--11-67-146}
When a weed lien is made against a lot or lots or parcel or parcels of land, a subsequent redemption thereof by a person authorized to redeem, or sale thereof by the state, shall not operate to discharge, or in any manner affect the weed lien of the municipality, but a redemptioner or purchaser at a sale by the state of any lot or lots, parcel or parcels of land upon which a weed lien has been made, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to the weed lien.
*(Act 2021-138, §7.)*
##### **§ 11-67-147** Satisfaction of Weed Lien; Notice {#sec-11-67-147 omnilex-key=us-al-statutes--title-11--11-67-147}
Upon payment of the weed lien, the city clerk shall notify the county tax collecting official and may file a notice of satisfaction of weed lien in the records of the probate court.
*(Act 2021-138, §8.)*
##### **§ 11-67-148** Construction of Article {#sec-11-67-148 omnilex-key=us-al-statutes--title-11--11-67-148}
This article is cumulative in its nature and in addition to any and all power and authority which a municipality may have under any other law.
*(Act 2021-138, §9.)*
### **Chapter 67A** Abatement of Inoperable Motor Vehicles in Class 1 Municipalities
##### **§ 11-67A-1** Applicability {#sec-11-67a-1 omnilex-key=us-al-statutes--title-11--11-67A-1}
This chapter shall apply only to Class 1 municipalities.
*(Act 2001-229, p. 269, §1.)*
##### **§ 11-67A-2** Inoperable Motor Vehicle Defined; Nuisance Exception {#sec-11-67a-2 omnilex-key=us-al-statutes--title-11--11-67A-2}
For purposes of this chapter, the term “inoperable motor vehicle” shall mean any motor vehicle, trailer, or semi-trailer that has remained on private property and in view of the general public for 30 days or any greater period fixed by the municipality and is inoperable in that one or more of its major mechanical components, including, but not limited to, the engine, transmission, drivetrain, or wheels, are missing or are not functional, or the vehicle otherwise constitutes a nuisance. An inoperable motor vehicle shall not be deemed a nuisance if the motor vehicle has been rendered temporarily incapable of being driven under its own motor power in order to perform ordinary service or repair operations, or if the motor vehicle is on the premises of a place of business engaged in the wrecking or junking of motor vehicles, or primarily engaged in the storage and sale of damaged or theft-recovered vehicles for insurers, or if the motor vehicle is kept in an enclosed building completely shielded from the view of individuals on the adjoining properties.
*(Act 2001-229, p. 269, §2.)*
##### **§ 11-67A-3** Establishment of Procedures; Costs of Removal {#sec-11-67a-3 omnilex-key=us-al-statutes--title-11--11-67A-3}
Any Class 1 municipality may establish a procedure for the abatement and removal of inoperable motor vehicles from private property as public nuisances. Costs of removal may be assessed against the registered owner of the vehicle if the identity of the owner can be determined or the costs may be assessed against the owner of the property on which the vehicle is stored.
*(Act 2001-229, p. 269, §3.)*
##### **§ 11-67A-4** Procedures Generally {#sec-11-67a-4 omnilex-key=us-al-statutes--title-11--11-67A-4}
Any procedure adopted by the municipality for the abatement and removal of inoperable motor vehicles as public nuisances shall include, but is not limited to, the following:
(1) A provision requiring notice to the last registered owner of record, to any secured party or other holder of a recorded or registered security interest or lien on the motor vehicle, and to the property owner of record that a hearing may be requested and that if no hearing is requested, the inoperable motor vehicle will be removed.
(2) A provision requiring that if a request for a hearing is received, a notice giving the time, location, and date of the hearing on the question of abatement and removal of the inoperable motor vehicle as a public nuisance shall be mailed by certified mail, with a five-day return receipt requested to the owner of the land as shown on the last equalized assessment roll, to the last registered and legal owner of record, and to any registered or recorded secured party or lienholder unless the vehicle is in such a condition that identification numbers are not available to determine ownership.
(3) A provision that the abatement procedure shall not apply to an inoperable motor vehicle that is completely enclosed within a building in a lawful manner where it is not visible from the street or other private property or a motor vehicle that is stored or parked in a lawful manner on private property in connection with the business of an automobile dealer, wholesaler, repairman, or wrecker service for repair or sale.
(4) A provision with a list of names of persons or private contractors, or both, who perform the work.
(5) A provision that the owner of the land on which the vehicle is located may appear in person at the hearing or present a written statement in time for consideration at the hearing, and deny responsibility for the presence of the vehicle on the land or otherwise show his or her plans to abate the nuisance. No cost of the administration or removal of the vehicle against the landowner shall be assessed if it is determined at the hearing that the vehicle was placed on the land without the consent of the landowner and that he or she has not subsequently acquiesced in its presence.
(6) A provision that the municipality may dispose of the inoperable motor vehicle by sealed bid or auction as adopted by the municipality and the procedure for the sale of the abandoned motor vehicle subject to the rights of any secured party or other holder of a recorded or registered security interest or lien on the motor vehicle, which has requested a hearing and verified the existence of the security interest or lien within the time permitted by the procedure adopted by the municipality.
(7) A provision that the owner of the land on which the vehicle is located may remove the vehicle at his or her own expense prior to the removal of the vehicle by the municipality.
*(Act 2001-229, p. 269, §4.)*
##### **§ 11-67A-5** Notification to Department of Revenue {#sec-11-67a-5 omnilex-key=us-al-statutes--title-11--11-67A-5}
The municipality shall notify the Department of Revenue of the sale or disposition of the inoperable motor vehicle on a form supplied by the Department of Revenue.
*(Act 2001-229, p. 269, §5.)*
##### **§ 11-67A-6** Administration of Chapter {#sec-11-67a-6 omnilex-key=us-al-statutes--title-11--11-67A-6}
The municipality may contract with any entity, person, or group to impound the inoperable motor vehicle or to carry out other functions necessary to administer the intent of this chapter.
*(Act 2001-229, p. 269, §6.)*
##### **§ 11-67A-7** Liability {#sec-11-67a-7 omnilex-key=us-al-statutes--title-11--11-67A-7}
The municipality and no official or employee of the municipality shall be liable for action taken in good faith pursuant to or in furtherance of the objectives of this chapter.
*(Act 2001-229, p. 269, §7.)*
### **Chapter 67B** Abatement of Inoperable Motor Vehicles in Class 5 Municipalities with a Mayor/Commission/City Manager Government
##### **§ 11-67B-1** Applicability {#sec-11-67b-1 omnilex-key=us-al-statutes--title-11--11-67B-1}
This chapter shall apply only to Class 5 municipalities that have adopted the Mayor/Commission/City Manager form of government.
*(Act 2003-358, p. 990, §1.)*
##### **§ 11-67B-2** Inoperable Motor Vehicle Defined; Nuisance Exception {#sec-11-67b-2 omnilex-key=us-al-statutes--title-11--11-67B-2}
For purposes of this chapter, the term “inoperable motor vehicle” shall mean any motor vehicle, trailer, or semi-trailer that has remained on private property and in view of the general public for 30 days or any greater period fixed by the municipality and is inoperable in that one or more of its major mechanical components, including, but not limited to, engine, transmission, drive train, or wheels, are missing or are not functional, or the vehicle otherwise constitutes a nuisance. An inoperable motor vehicle shall not be deemed a nuisance if the motor vehicle has been rendered temporarily incapable of being driven under its own motor power in order to perform ordinary service or repair operations, or if the motor vehicle is on the premises of a place of business engaged in the wrecking or junking of motor vehicles, or primarily engaged in the storage and sale of damaged or theft-recovered vehicles for insurers, or if the motor vehicle is kept in an enclosed building completely shielded from the view of individuals on the adjoining properties.
*(Act 2003-358, p. 990, §2.)*
##### **§ 11-67B-3** Establishment of Procedures; Costs of Removal {#sec-11-67b-3 omnilex-key=us-al-statutes--title-11--11-67B-3}
Any Class 5 municipality to which this chapter applies may establish a procedure for the abatement and removal of inoperable motor vehicles from private property as public nuisances. Costs of removal may be assessed against the registered owner of the vehicle if the identity of the owner can be determined or the costs may be assessed against the owner of the property on which the vehicle is stored.
*(Act 2003-358, p. 990, §3.)*
##### **§ 11-67B-4** Procedures Generally {#sec-11-67b-4 omnilex-key=us-al-statutes--title-11--11-67B-4}
Any procedure adopted by the municipality for the abatement and removal of inoperable motor vehicles as public nuisances shall include, but is not limited to, the following:
(1) A provision requiring notice to be sent by certified mail to the last registered owner of record, and notice to all other interested parties by securely affixing to the vehicle notice that a hearing may be requested and that if no hearing is requested, the inoperable motor vehicle will be removed.
(2) A provision requiring that if a request for a hearing is received, a notice giving the time, location, and date of the hearing on the question of abatement and removal of the inoperable motor vehicle as a public nuisance shall be mailed by certified mail, with a five-day return receipt, to the person requesting the hearing.
(3) A provision that the abatement procedure shall not apply to an inoperable motor vehicle that is completely enclosed within a building in a lawful manner where it is not visible from the street or other private property or a motor vehicle that is stored or parked in a lawful manner on private property in connection with the business of an automobile dealer, wholesaler, repairman, or wrecker service for repair or sale.
(4) A provision with a list of names of persons or private contractors, or both, who will perform the work of removing the vehicle.
(5) A provision that the municipality, upon removal, may dispose of the inoperable motor vehicle by sealed bid or auction as adopted by the municipality and the procedure for the sale of the abandoned motor vehicle subject to the rights of any secured party or other holder of a recorded or registered security interest or lien on the motor vehicle who has requested a hearing and verified the existence of the security interest or lien within the time permitted by the procedure adopted by the municipality.
(6) A provision that the owner of the land on which the vehicle is located may remove the vehicle at his or her own expense prior to the removal of the vehicle by the municipality.
*(Act 2003-358, p. 990, §4.)*
##### **§ 11-67B-5** Notification to Department of Revenue {#sec-11-67b-5 omnilex-key=us-al-statutes--title-11--11-67B-5}
The municipality shall notify the Department of Revenue of the sale or disposition of the inoperable motor vehicle on a form supplied by the Department of Revenue.
*(Act 2003-358, p. 990, §5.)*
##### **§ 11-67B-6** Administration of Chapter {#sec-11-67b-6 omnilex-key=us-al-statutes--title-11--11-67B-6}
The municipality may contract with any entity, person, or group to impound the inoperable motor vehicle or to carry out other functions necessary to administer the intent of this chapter.
*(Act 2003-358, p. 990, §6.)*
##### **§ 11-67B-7** Liability {#sec-11-67b-7 omnilex-key=us-al-statutes--title-11--11-67B-7}
The municipality and no official or employee of the municipality shall be liable for action taken in good faith pursuant to or in furtherance of the objectives of this chapter.
*(Act 2003-358, p. 990, §7.)*
### **Chapter 67C** Vacant Property Registration in Class 1 Municipalities
##### **§ 11-67C-1** Applicability {#sec-11-67c-1 omnilex-key=us-al-statutes--title-11--11-67C-1}
The provisions of this chapter shall apply in any Class 1 municipality that adopts an ordinance to be applicable to the registration of vacant property in the municipality.
*(Act 2026-511, §2.)*
##### **§ 11-67C-2** Purpose {#sec-11-67c-2 omnilex-key=us-al-statutes--title-11--11-67C-2}
The purposes of this chapter are to promote the health, safety, and welfare of residents in a Class l municipality by providing authority for a Class 1 municipality to enact a vacant property registration ordinance. The ordinance will allow a Class 1 municipality to identify and register vacant properties, collect fees to compensate for the public costs of vacant properties, plan for the rehabilitation of vacant properties, and encourage the occupancy of vacant properties.
*(Act 2026-511, §4.)*
##### **§ 11-67C-3** Definitions {#sec-11-67c-3 omnilex-key=us-al-statutes--title-11--11-67C-3}
For purposes of this chapter, the following terms have the following meanings:
(1) COMMERCIAL BUILDING. Any building or structure, or portion thereof, that is used or designed to be used primarily for business, commercial, industrial, mercantile, office, professional, warehousing, storage, lodging, or retail purposes. A building containing both residential and nonresidential uses shall be considered a commercial building only with respect to the nonresidential portion of the building.
(2) EVIDENCE OF UNKEMPT VACANCY. Any of the following:
a. Overgrown or dead vegetation, including grass, shrubbery, and other plantings.
b. An accumulation of abandoned personal property, trash, or other waste.
c. Visible deterioration or lack of maintenance of any building or structure on the property.
d. Graffiti or other defacement of any building or structure on the property.
e. Broken windows, doors, or other access points indicating the property is not secure from the public or the elements.
(3) OWNER. A person who individually or jointly with others:
a. Has legal title to the property, with or without actual possession, or who is shown to be the owner or owners of record in the records of the probate office;
b. Has charge, care, or control of the property as owner or agent of the owner; or
c. Is an executor, administrator, trustee, or guardian of the estate of the owner.
(4) RESIDENTIAL BUILDING. A house, condominium, townhouse, or any other building where the whole building or significant parts of the building are designed or used as residential dwellings.
(5) VACANT. A residential building or commercial building that is lacking habitual presence of human beings who have a legal right to be on the property, or at which substantially all lawful business operations, construction operations, or residential occupancy has ceased for a period of 90 consecutive days and there exists evidence of unkempt vacancy, provided: (i) an owner-occupied, single-family home shall not be deemed to be vacant if it has been used on a regular basis by the owner as a second residence or the owner intends to resume residing at the property and it is otherwise maintained in a manner that does not render substantial or persistent evidence of unkempt vacancy; (ii) the term “vacant” shall not include a residential building or commercial building containing multiple units with common ownership which has at least one unit occupied with evidence of utility usage; and (iii) any multi-unit residential building or commercial building shall not be deemed to be vacant if the building is actively being marketed for sale or lease, as evidenced by the existence of an in-force real estate listing agreement or reasonable evidence of other active marketing efforts consistent with the nature of the property.
*(Act 2026-511, §5.)*
##### **§ 11-67C-4** Adoption of Vacant Property Registration Ordinance; Registration Database; Program Administrator {#sec-11-67c-4 omnilex-key=us-al-statutes--title-11--11-67C-4}
(a) The governing body of a Class 1 municipality may adopt a vacant property registration ordinance that establishes a vacant property registration and maintenance program that applies to any type of residential or commercial buildings, or both, located within the corporate limits of the municipality, except that a vacant property registration ordinance shall not apply to property owned by the federal government, the State of Alabama, any political subdivision thereof, or a public corporation.
(b) A vacant property registration ordinance shall create a citywide vacant property registration database and clearly designate a program administrator.
*(Act 2026-511, §6.)*
##### **§ 11-67C-5** Registration of Vacant Property by Owners; Notice Requirements; Forms; Fee; Local Agent {#sec-11-67c-5 omnilex-key=us-al-statutes--title-11--11-67C-5}
(a) A vacant property registration ordinance may provide that, subject to the exemptions provided in this chapter, owners of vacant property shall register the property with the program administrator within the later of: (i) 30 days after the property is deemed vacant; (ii) 30 days after assuming ownership of the deemed vacant property; or (iii) 90 days after assuming ownership by foreclosure or deed in lieu of foreclosure of the deemed vacant property or by the first subsequent transferee after the vacant property has been acquired by foreclosure or deed in lieu of foreclosure.
(b) The program administrator shall provide written notice to the owner and any lienholder with respect to what the program administrator believes to be a vacant property advising the owner that it appears to be delinquent with respect to vacant property registration and post a prominent placard, of a size of at least 24″ x 24″ on a street-facing side of the alleged vacant building, stating that the building may be subject to registration as a vacant property and providing contact information for the program administrator. The program administrator shall use commercially reasonable diligence to identify the owner and any lienholders of the vacant property.
(c) A vacant property registration form shall be in either paper or electronic form, and the following information, at a minimum, shall be required:
(1) The name, street address, mailing address, telephone number, and, if applicable, facsimile number and email address of the property owner and his or her agent who is an individual at least 19 years of age or an entity domiciled in Alabama that is designated by the owner as authorized agent for receiving notice of code violations and for receiving process in any court proceeding or administrative proceeding on behalf of the owner in connection with the enforcement of any applicable law, regulation, or code. If the property owner is not a resident of the state, the ordinance may provide that it is mandatory for the property owner to either: (i) provide the name of an agent to receive notices who is a resident of the state or an entity domiciled in Alabama; or (ii) submit to jurisdiction of the courts of the State of Alabama in form and content reasonably satisfactory to the program administrator.
(2) The street address of the vacant property.
(3) The period of time the property is expected to be vacant.
(4) The date on which the property became vacant.
(5) The names and addresses of all known lienholders or the servicing representatives of the lienholders.
(6) Such other information as reasonably deemed necessary by the program administrator to process the registration.
(d)(1) A vacant property registration ordinance shall require payment of an annual registration fee for each vacant property as follows:
a. An initial fee not to exceed two hundred fifty dollars ($250).
b. For subsequent years, a fee not to exceed 150 percent of the fee from the previous year, with a cap of one thousand dollars ($1,000).
(2) Registration fees may be refundable on a prorated basis for the year preceding the date on which the property is no longer vacant.
(3) A vacant property registration ordinance shall provide an exemption for time periods set forth in the ordinance to the registration and fee requirements for vacant property that is advertised in good faith for sale or lease on commercially reasonable terms.
(4) A vacant property registration ordinance shall provide exemptions to the registration and fee requirements, including, but not limited to, for vacant property:
a. Only considered to be a seasonal residence;
b. Damaged by fire, weather, an act of God, or vandalism, and the owner demonstrates his or her intent to repair or renovate;
c. Under construction or renovation;
d. Where the owner is temporarily absent but has demonstrated his or her intent to return;
e. For a reasonable period of time not to exceed 24 months, that is subject to divorce, probate, or estate proceedings in the state;
f. When the owner or occupant of the vacant property files with the program administrator a statement of the owner’s or occupant’s plans for restoration of the vacant property to productive use and occupancy during the 12-month period following the date when the initial registration of the property would otherwise be due. If the restoration or occupancy of the property has not commenced by the end of the 12-month period, the owner or occupant shall be liable for any fee waived. The program administrator may extend the waiver of the registration fee for not more than one additional year in response to a written request by the property owner or occupant where the program administrator finds that conditions outside the owner’s or occupant’s control significantly impeded the active efforts of the owner or occupant to restore the property within the initial 12-month period; or
g. In other situations in which the governing body of the municipality, on a case-by-case basis and upon request by the property owner, determines that an exemption of a vacant property from registration is appropriate upon a finding for good cause shown that the owner or lawful occupant will be unable to occupy the building for a determinant period of time, provided that the property owner or occupant provides a detailed statement of the owner or occupant’s plans for restoration of the vacant property to productive use and occupancy during the 12-month period following the date when the initial registration of the property would otherwise be due.
(e) A vacant property registration ordinance may require that when the owner of the vacant property resides outside of the state, the owner shall provide the name and address of an individual who: (i) resides within the state; (ii) is authorized to accept service of process and notices of fees due under this chapter on behalf of the owner; and (iii) is designated as a responsible, local party or agent for the purposes of notification in the event of an emergency affecting the public health, safety, or welfare.
*(Act 2026-511, §7.)*
##### **§ 11-67C-6** Ordinance Enforcement; Inspections; Liens {#sec-11-67c-6 omnilex-key=us-al-statutes--title-11--11-67C-6}
(a) A vacant property registration ordinance shall:
(1) Provide that a subsequent owner or owners of property who are not related by blood or marriage to the prior owner and who purchase in good faith for value or who foreclose on the property or acquire the property by deed in lieu of foreclosure shall assume the obligations of the previous owner or owners;
(2) Provide for removal of the property from the vacant property registration database when the property is no longer vacant;
(3) Require submission of an owner plan for restoration and occupancy of the property;
(4) Provide that owners have the right to prior notice and to appeal adverse decisions of the municipality or the program administrator or to appeal the interpretations or application of the ordinance, including its consistency with this chapter. Prior notice shall be sent by certified mail to the registered owner at the address maintained in the probate office or according to the records of the tax assessor or revenue commissioner, if different, at least 10 days prior to the adverse decision; and
(5) Provide that any appeal of a violation or fine issued pursuant to this chapter shall be filed with the division of the municipal court in the Class 1 municipality which handles all code violations. Any adverse decision from the municipal court may be appealed, within 30 days, to the applicable circuit court. The costs of appeal shall be paid by the non-prevailing party.
(b) To determine compliance with the ordinance and any applicable building codes, a vacant property registration ordinance may allow the program administrator or his or her designee to inspect the interior and exterior of a vacant property upon at least 10 days’ prior notice to the owner after registration is effected or otherwise required, and at oneyear intervals thereafter for so long as the property remains on the vacant property registration database.
(c) A vacant property registration ordinance may provide for municipal fines not to exceed one thousand dollars ($1,000) per violation for failure to comply with ordinance requirements. A municipality may enforce the collection of vacant property registration fees by civil action in any court of competent jurisdiction. Unpaid vacant property registration fees and unpaid fines for any violation of a vacant property registration ordinance shall become a lien on the applicable real property, but only upon the recording of a notice of the lien in the probate office.
(d) The vacant property registration ordinance may require that the owner enclose and secure the vacant property within a designated period of time and thereafter maintain the vacant property to minimum standards required under applicable state law and municipal ordinances and codes or to lesser standards adopted under the vacant property registration ordinance. The ordinance may include authority for the municipality, following at least 30 days’ notice to the owner, to act to bring the vacant property into compliance with the applicable standards, or otherwise eliminate the public nuisance caused by any noncompliant conditions. Nothing in this section is to be interpreted to impose a duty, obligation, or requirement that a municipality must undertake such repairs, demolition, or maintenance measures, which remain as obligations and responsibilities of the owner. Reasonable costs of the repairs, demolition, and maintenance incurred by the municipality shall be paid by the owner. A vacant property registration ordinance may provide that these costs shall become a lien on the applicable property, but only upon the recording of a notice of the lien in the probate office, or may be collected in civil proceedings against the owner.
(e) Any lien created under this section shall be subordinate to all other liens, including prior mortgages, fixture filings, mechanic’s and materialman’s liens, and those liens for taxes described or referenced in Section 11-51-6. Not in derogation of the foregoing or other protections for good faith purchasers, the municipality may release any liens or waive any accrued fees or fines in the case of the transfer of the vacant property to a good faith purchaser.
*(Act 2026-511, §8.)*
##### **§ 11-67C-7** Construction of Chapter {#sec-11-67c-7 omnilex-key=us-al-statutes--title-11--11-67C-7}
The provisions of this chapter shall be supplemental and be construed in pari materia with other laws of the state relating to vacant or abandoned property.
*(Act 2026-511, §9.)*
### **Chapter 68** Historic Preservation Commissions and Architectural Review Boards
##### **§ 11-68-1** Purpose of Chapter {#sec-11-68-1 omnilex-key=us-al-statutes--title-11--11-68-1}
The purposes of this chapter are to provide for the establishment of historic preservation commissions and architectural review boards, and to promote the educational, cultural, economic and general welfare of Alabama municipalities: through the preservation and protection of buildings, sites, structures, areas, and districts of historic significance and interest; through the preservation and enhancement of the national, state, and local historic, architectural, archaeological, and aesthetic heritage found in Alabama; and through the promotion and enhancement of Alabama’s historic and aesthetic attraction to tourists and visitors.
*(Acts 1989, No. 89-536, p. 1116, §1.)*
##### **§ 11-68-2** Establishment of Historic Preservation Commission and Architectural Review Boards {#sec-11-68-2 omnilex-key=us-al-statutes--title-11--11-68-2}
The governing body of any municipality electing to enact an ordinance, pursuant to this chapter, to provide for the creation, protection, and enhancement of historic properties or historic districts, shall establish an historic preservation commission, hereinafter sometimes called the commission, and may establish one or more architectural review boards, hereinafter sometimes called the boards, to carry out the purposes and responsibilities of that ordinance.
*(Acts 1989, No. 89-536, p. 1116, §2.)*
##### **§ 11-68-3** Composition of Commission; Nomination of Members; Terms of Office; Removal; Vacancies; Officers; Rules; Reimbursement of Expenses; Personnel; Annual Report; Meetings {#sec-11-68-3 omnilex-key=us-al-statutes--title-11--11-68-3}
(a) An historic preservation commission created by an ordinance enacted pursuant to this chapter shall be composed of not less than 7 members, who shall have demonstrated training or experience in the fields of history, architecture, architectural history, urban planning, archaeology or law, or who shall be residents of an historic district designated pursuant to that ordinance. Members of the commission shall be bona fide residents of the territorial jurisdiction of the municipality creating the commission. Not more than one-fifth of the members of the commission shall be public officials.
(b) Members of the commission shall be nominated by the chief executive officer of the municipality creating the commission and appointed by the legislative body of that municipality. Nomination and appointment of members of the commission shall be made so as to ensure that the commission will be composed of persons with as much of the training and experience specified in subsection (a) of this section as is possible.
(c) Except for the original members of the commission, members of the commission shall serve three year terms and shall be appointed in such a manner so as to serve overlapping terms. Two of the original members of the commission shall be appointed to serve one year terms, two of the original members of the commission shall be appointed to serve two year terms, and the remainder of the original members of the commission shall be appointed to serve three year terms. Members of the commission may be reappointed.
(d) Members of the commission may be removed for cause by the legislative body of the municipality creating the commission.
(e) Vacancies on the commission shall be filled by persons nominated by the chief executive officer of the municipality creating the commission and appointed by the legislative body of that municipality. Such appointments shall be for the unexpired term of the member replaced.
(f) Members of the commission shall elect a chairman and a vice chairman and such other officers as the members deem necessary. The commission shall adopt rules of procedure and bylaws to govern its operations and shall communicate those rules of procedure and bylaws to the municipality creating the commission. The rules of procedure and bylaws of the commission shall specify what number of members of the commission constitutes a quorum.
(g) Members of the commission shall serve without compensation but may be reimbursed for expenses incurred on behalf of the commission in accordance with the rules and regulations for the reimbursement of expenses adopted by the commission.
(h) The commission may employ such professional, technical, office, and other personnel as may be necessary to carry out the purposes and responsibilities of the ordinance enacted pursuant to this chapter.
(i) The commission shall prepare and file with the municipality creating the commission, and with the Alabama Historical Commission, an annual report of its activities as required by the municipality and the Alabama Historical Commission.
(j) Meetings of the commission shall be public meetings and shall be held at times and places and pursuant to such notices specified in the ordinance creating the commission.
*(Acts 1989, No. 89-536, p. 1116, §3.)*
##### **§ 11-68-4** Status of Commission as Nonprofit Agency Exempt from Taxation {#sec-11-68-4 omnilex-key=us-al-statutes--title-11--11-68-4}
An historic preservation commission shall constitute a non-profit governmental agency whose funds shall be used exclusively for public purposes. Such commission shall have tax exempt status, and the properties of the commission and the income therefrom, together with all leases, agreements, and contracts made by it, shall be forever exempt from any and all taxation by the State of Alabama and any political subdivision thereof, including, but not limited to, income, admission, amusement, excise and ad valorem taxes.
*(Acts 1989, No. 89-536, p. 1116, §4.)*
##### **§ 11-68-5** Powers and Duties of Commission {#sec-11-68-5 omnilex-key=us-al-statutes--title-11--11-68-5}
An historic preservation commission created by an ordinance enacted pursuant to this chapter shall be authorized to:
(1) Preserve and protect buildings, structures, and sites of historic and architectural value in the historic districts designated pursuant to that ordinance;
(2) Prepare a survey of all property within the territorial jurisdiction of the municipality creating the commission;
(3) Recommend to the municipality creating the commission buildings, structures, sites, and districts for designation as historic properties or districts;
(4) Restore and preserve any historic properties acquired by the municipality creating the commission or acquired by the commission;
(5) Promote acquisition of facade and conservation easements by the municipality creating the commission or by the commission;
(6) Develop and conduct educational programs on historic projects and districts designated pursuant to the ordinance and on historic preservation subjects;
(7) Make such investigations and studies of matters relating to historic preservation as the municipality creating the commission or the commission deems necessary and appropriate for the purposes of this chapter;
(8) Apply for funds to carry out the purposes and responsibilities of the commission from municipal, county, state, federal, and private agencies and sources;
(9) Purchase, sell, contract to purchase, contract to sell, own, encumber, lease, mortgage, and insure real and personal property in carrying out the purposes and responsibilities of the commission;
(10) Investigate, survey, and process nominations of properties to the National Register of Historic Places;
(11) Investigate, survey, and process applications for certification of historic properties for tax credits for preservation expenditures;
(12) Contract with other municipal, county, state, federal and private agencies and organizations to perform historic preservation related functions;
(13) Exercise such further powers as the commission may deem reasonably necessary and proper to carry out the purposes, responsibilities, and powers of the commission.
*(Acts 1989, No. 89-536, p. 1116, §5.)*
##### **§ 11-68-6** Designation of Historic Properties and Historic Districts by Municipality on Recommendation of Commission; Criteria {#sec-11-68-6 omnilex-key=us-al-statutes--title-11--11-68-6}
(a) On recommendation of the historic preservation commission, a municipality enacting an ordinance, pursuant to this chapter, may designate historic properties and historic districts within the territorial jurisdiction of the municipality.
(b) The commission shall not recommend designation of an historic property or historic district unless such recommendation is based on a finding of a survey of such property or district conducted by or for the commission in accordance with the rules and regulations of the Alabama Historical Commission.
(c) The commission shall not recommend designation of an historic property or historic district unless it finds that the building, structure, site, or district is identified with or represents a significant aspect of the cultural, political, economic, military, or social history of the locality, region, state, or nation or has had a significant relationship with the life of a historic person or event, representing a major aspect of the history of the locality, region, state, or nation, or if a part of the historic, architectural, archaeological, or aesthetic heritage of the locality, region, state, or nation. In the case of an individual building or structure, the commission may recommend designation as an historic property if the commission finds that the building or structure is an example of an architectural style, or combination of architectural styles, which is representative of the municipality creating the commission or which is unique to that municipality. In the case of a district, the commission may recommend designation as an historic district if the commission finds that the district contains vernacular structures which contribute to an overall character and sense of place which is representative of the municipality creating the commission.
*(Acts 1989, No. 89-536, p. 1116, §6.)*
##### **§ 11-68-7** Public Hearing on Proposed Recommendation; Notification of Property Owners {#sec-11-68-7 omnilex-key=us-al-statutes--title-11--11-68-7}
(a) Before the commission shall recommend the designation of an historic property or historic district, it shall hold a public hearing on the proposed recommendation of historic designation to be held at a time and place, and pursuant to such notices specified in the ordinance creating the commission.
(b) In addition to the notice of the public hearing required pursuant to subsection (a) of this section, all owners of property to be included in the proposed historic designation, as such owners are identified in the relevant property tax rolls, if such owners can be found on reasonable inquiry, shall be notified by mail of the public hearing to be held by the commission on the proposed recommendation of historic designation.
*(Acts 1989, No. 89-536, p. 1116, §7.)*
##### **§ 11-68-8** Written Notice of Designation of Historic Property or District {#sec-11-68-8 omnilex-key=us-al-statutes--title-11--11-68-8}
Upon the designation of any historic property or historic district by a municipality, pursuant to an ordinance enacted pursuant to this chapter, the historic preservation commission shall give notice in writing of that designation to all agencies of the municipality, and to all owners of property included in the historic designation.
*(Acts 1989, No. 89-536, p. 1116, §8.)*
##### **§ 11-68-9** Certificate of Appropriateness Prerequisite to Changes in Historic Property or District; Submission and Consideration of Application for Certificate; Rules, Regulations, and Standards; Expedited Procedure; Records {#sec-11-68-9 omnilex-key=us-al-statutes--title-11--11-68-9}
(a) No change in the exterior appearance of an historic property or any building, structure, or site within an historic district may be made, and no historic property may be demolished, and no building or structure in an historic district may be erected or demolished unless and until a certificate of appropriateness for such change, erection, or demolition is approved by the historic preservation commission created by the municipality designating the historic property or the historic district. Signs shall be considered as structures and no sign on an historic property or in an historic district shall be changed, erected, or demolished unless and until a certificate of appropriateness is approved by the commission. The requirement of a certificate of appropriateness shall apply to public property which has been designated as an historic property or which is contained in an historic district, and shall apply to all actions by public authorities which involve historic properties and properties within historic districts. Demolition by neglect and the failure to maintain an historic property or a structure in an historic district shall constitute a change for which a certificate of appropriateness is necessary. A municipality enacting an ordinance, pursuant to this chapter, may include selection of paint colors in changes requiring a certificate of appropriateness. The painting of originally unpainted surfaces shall require a certificate of appropriateness.
(b) The commission shall adopt rules and regulations setting forth the procedure for submission and consideration of applications for certificates of appropriateness, and no certificate of appropriateness shall be approved unless an application for a certificate of appropriateness is submitted to the commission accompanied by such drawings, photographs, and plans, as may be required by the commission.
(c) The commission shall adopt general design standards which shall apply in considering the granting and denial of certificates of appropriateness.
(d) Applications for certificates of appropriateness shall be considered by the commission at public meetings, held at times and places and pursuant to such notices as are specified in the ordinance creating the commission.
(e) The commission may adopt an expedited procedure for approval of routine maintenance to historic properties, or to buildings or structures in historic districts. Such expedited procedure may waive the requirements for submission of an application for a certificate of appropriateness and for consideration at a public meeting.
(f) The commission shall keep a record of all applications for certificates of appropriateness and requests for approval of routine maintenance and of all of its proceedings.
*(Acts 1989, No. 89-536, p. 1116, §9.)*
##### **§ 11-68-10** Appeal of Denial to Circuit Court {#sec-11-68-10 omnilex-key=us-al-statutes--title-11--11-68-10}
Any person having a request for a certificate of appropriateness denied by the historic preservation commission, or architectural board as hereinafter provided, may appeal such denial to the circuit court of the county in which the commission exists.
*(Acts 1989, No. 89-536, p. 1116, §10.)*
##### **§ 11-68-11** Issuance of Certificate; Factors Considered; Reasons for Rejection; Application for Reconsideration; Effect of Rejection on Issuance of Building Permit {#sec-11-68-11 omnilex-key=us-al-statutes--title-11--11-68-11}
(a) The historic preservation commission shall approve an application and issue a certificate of appropriateness if it finds that the proposed change, erection, or demolition conforms to the general design standards established by the commission, is compatible with the character of the historic property or historic district and does not detract from the value of the historic property or historic district. In making this determination, the commission shall consider, in addition to any other pertinent factors, the historic and architectural features involved and the proposed change thereto, and the relationship thereof, to the exterior architectural style, and pertinent features of other structures in the immediate neighborhood.
(b) In its review of applications for certificate of appropriateness, the commission shall not consider interior changes or use having no effect on the exterior of a building or structure.
(c) In the event the commission rejects an application, it shall state its reasons for doing so and shall transmit a record of such action and reasons therefor, in writing, to the applicant. The applicant may make modifications to its plans and resubmit the application for reconsideration at any time after doing so.
(d) In cases where the application is for a change in the exterior of the building or structure which would require the issuance of a building permit, the rejection of an application for a certificate of appropriateness by the commission shall be binding upon the building inspector or other administrative officer charged with issuing building permits and, in such case, no building permit shall be issued.
*(Acts 1989, No. 89-536, p. 1116, §11.)*
##### **§ 11-68-12** Institution of Court Proceedings to Prevent Violations and Recover Damages {#sec-11-68-12 omnilex-key=us-al-statutes--title-11--11-68-12}
The historic preservation commission, or the municipality creating the commission, shall be authorized to institute any appropriate action or proceeding in a court of competent jurisdiction to prevent any change in the exterior of a building or structure which is either an historic property or which is contained in an historic district, except in compliance with the provisions of an ordinance adopted in conformity with this chapter, or to prevent any illegal act or conduct with respect to such historic property, or historic district, and to recover any damages which may have been caused by the violation of that ordinance.
*(Acts 1989, No. 89-536, p. 1116, §12.)*
##### **§ 11-68-13** Architectural Review Board; Composition; Nomination of Members; Terms; Removal for Cause; Vacancies; Officers; Rules; Reimbursement for Expenses; Personnel; Meetings; Multiple Boards {#sec-11-68-13 omnilex-key=us-al-statutes--title-11--11-68-13}
(a) A municipality enacting an ordinance pursuant to this chapter, may elect to create an architectural review board, hereinafter sometimes called the board, to perform the duties and responsibilities of the historic preservation commission in accepting, considering and approving or rejecting applications for certificates of appropriateness, as set out in Sections 11-68-9 through 11-68-12.
(b) If such board is created, it shall be composed of not less than five members who shall have demonstrated training or experience in the fields of history, architecture, architectural history, urban planning, archaeology, or law. Members of the board need not be residents of the territorial jurisdiction of the municipality creating the board. No member of a municipal governing body shall serve as members of the board.
(c) Members of the board shall be nominated by the chief executive officer of the municipality creating the board, and appointed by the legislative body of that municipality or county. Nomination and appointment of members of the commission shall be made so that the board will be composed of persons with as much of the training and experience specified in subsection (b) of this section as possible.
(d) Except for the original members of the board, members of the board shall serve three year terms and shall be appointed in such manner as to serve overlapping terms. Two of the original members of the board shall be appointed to serve one year terms and the remainder of the original members of the board shall be appointed to serve three year terms. Members of the board may be reappointed.
(e) Members of the board may be removed for cause by the legislative body of the municipality creating the board.
(f) Vacancies on the board shall be filled by persons nominated by the chief executive officer of the municipality creating the commission and appointed by the legislative body of that municipality. Such appointments shall be for the unexpired term of the member replaced.
(g) Members of the board shall elect a chairman and vice chairman and such other officers as the members deem necessary. The board shall adopt rules of procedure and shall communicate those rules of procedure to the municipality creating the board. The rules of procedure of the board shall specify what number of members of the board shall constitute a quorum.
(h) Members of the board shall serve without compensation, but may be reimbursed for reasonable expenses incurred on behalf of the board, in accordance with the rules and regulations for the reimbursement of expenses adopted by the board.
(i) The board may employ such professional, technical, office, and other personnel, as may be necessary, to carry out the purposes and responsibilities of the board.
(j) Meetings of the board shall be public meetings and shall be held at times and places and pursuant to such notices as are specified in the ordinance creating the board.
(k) If, in the opinion of the governing body of the municipality creating a board, the work load of the board is, or is contemplated to be excessive, the governing body of the municipality creating the board may create more than one board, and designate the historic properties, and historic districts with which each board will be concerned, so long as each historic property and each historic district designated by the municipality shall be subject to the control of only one board. Each such board created shall have all of the powers and authority set forth in this chapter with respect to the historic properties and historic districts with which it is concerned.
*(Acts 1989, No. 89-536, p. 1116, §13.)*
##### **§ 11-68-14** Effect of Chapter on Preexisting Historic Development Commissions or Architectural Review Boards {#sec-11-68-14 omnilex-key=us-al-statutes--title-11--11-68-14}
No provision of this chapter shall be construed to require the dissolution of any historic development commission or architectural review board created by an ordinance enacted pursuant to prior laws. Any historic development commission or architectural review board created by an ordinance existing pursuant to prior laws and existing at the time of the enactment of this chapter shall continue in existence and shall have all of the purposes, powers, and authority set out in the ordinances creating such commissions and boards. Any such commission or board shall also have the power set forth in this chapter, if so provided by ordinance enacted by the governing body of the municipality creating the historic development commission or architectural review board. The fact that such a commission or board is not created by an ordinance enacted pursuant to this chapter shall not be cause for denying such commission or board certified local government status.
*(Acts 1989, No. 89-536, p. 1116, §14.)*
##### **§ 11-68-15** Applicability of Chapter to Highways, Bridges, Etc.; Applicability of Federal Provisions {#sec-11-68-15 omnilex-key=us-al-statutes--title-11--11-68-15}
The provisions of this chapter shall not apply to a highway, road, street, bridge, or utility structure or facility, nor to any highway, road, street, bridge, or utility structure or facility to be constructed or improved, including any property, building or other structure or facility to be changed, moved, demolished, acquired, or utilized in connection therewith, lying or running within any municipality or county, or within an historic district or an area designated as historic properties under this chapter, nor to actions taken in connection therewith by public authorities or utilities charged with responsibility of constructing, maintaining, repairing, or improving any such highway, road, street, bridge, or utility structure or facility, including any property, building, or other structure or facility to be changed, moved, demolished, acquired, or utilized in connection therewith; provided further, however, that where property lying within an area designated as historic properties or as an historic district, pursuant to the provisions of this chapter is sought to be utilized or acquired by any such public authority for the purpose of construction or improvement of a highway, road, bridge, utility structure or facility or street, and the provisions and requirements of Section 106, et seq., of the National Historic Preservation Act of 1966 (16 USCA 470), are applicable to the property acquisition or utilization, the public authority or utility may utilize or acquire any such property, building, or other structure or parts thereof, and change, move, or demolish any building or other structure in accordance with the applicable provisions, requirements, and procedure provided for under such act, including the requirements and procedure as applicable of the Advisory Council on Historic Preservation, Section 36, Code of Federal Regulations 800 (16 USCA 470i), and in accordance with the provisions, requirements and procedure as applicable under Section 4(f) of the U.S. Department of Transportation Act of 1966, as amended, 49 USCA 1653(f), and under 23 USCA 138.
In the event the foregoing National Historic Preservation Act or Section 4(f) are not applicable to the property, building or other structure, they shall be exempt from the provisions of this chapter.
*(Acts 1989, No. 89-536, p. 1116, §15.)*
### **Chapter 69** Rural Scenic Right-of-Way
##### **§ 11-69-1** Adoption and Implementation of Plan {#sec-11-69-1 omnilex-key=us-al-statutes--title-11--11-69-1}
(a) Any Class 7 or 8 municipality in this state may adopt a rural scenic right-of-way plan for the development, improvement, and use of right-of-way along municipal roads and streets and county roads within the corporate limits and police jurisdiction of the municipality except right-of-way, highways, streets, or roads that are under exclusive or concurrent jurisdiction of the Alabama Department of Transportation. Pursuant to the plan, the municipality may designate right-of-way adjacent to a municipal road or street or a county road to be developed, improved, and used for recreational or beautification purposes. Any portion of a road designated shall continue for at least three miles in length and may not at the time of designation have an average density of two or more commercial enterprises that have an entrance or exit on the road per mile. The path of the right-of-way along a street or road included in the plan may cross another street, road, or state highway. The establishment of a rural scenic right-of-way plan and the inclusion of any right-of-way of a county road shall be subject to approval of the county commission where any road included in the plan is located. In addition, any development and improvement within the rights-of-way along any county road shall be approved by the county commission. Any municipality establishing a rural scenic right-of-way plan shall be solely responsible for the development, maintenance, and use of the right-of-way included in the plan. The county shall not be responsible for the development, maintenance, access, or use of any right-of-way included in the plan, and shall not be liable for any damages to property or persons utilizing the right-of-way. A county may contribute financially to the implementation and development of the plan. No municipality or county shall be liable for any damages to any person using any right-of-way that is a part of the plan.
(b) Nothing in this section shall in any way limit, restrict, or otherwise impact the ability of any electric supplier to maintain, repair, expand, construct, reconstruct, or relocate any facility or equipment used in the generation, transmission, or distribution of electric power or any communication service provider to maintain, repair, expand, construct, reconstruct, or relocate facilities or equipment for telecommunications, commercial mobile radio services, broadband services, or other wireless services within the public rights-of-way along, adjacent to, or surrounding any road, street, or highway included within this section; nor shall the placement of any such facilities or equipment be subject to approval by a county commission. No electric supplier or communication services provider shall be subject to increased liability resulting from the adoption by any county or municipality of a rural scenic right-of-way plan.
*(Act 2009-730, p. 2182, §1.)*
### **Chapter 70** Expedited Quiet Title and Foreclosure Actions in Class 2 Municipalities
##### **§ 11-70-1** Applicability {#sec-11-70-1 omnilex-key=us-al-statutes--title-11--11-70-1}
This chapter shall apply only in a Class 2 municipality and provides the exclusive procedure for an expedited quiet title and foreclosure action for a Class 2 municipality, notwithstanding Section 24-9-8. Section 40-10-82 shall not apply to, restrict, or otherwise affect any cause of action or action brought by a Class 2 municipality pursuant to this chapter and shall not remove any limitation of action or extend the period of redemption of any abandoned tax sale properties within the corporate limits of the Class 2 municipality.
*(Act 2010-396, p. 644, §1; Act 2014-108, p. 183, §1.)*
##### **§ 11-70-2** Initiation and Notice of Action {#sec-11-70-2 omnilex-key=us-al-statutes--title-11--11-70-2}
(a) Class 2 municipalities may initiate an expedited quiet title and foreclosure action under this chapter against a parcel of tax sale property located within its municipal limits and purchased by the municipality. The municipality shall record, in the office of the judge of probate in the county in which the property is located, a notice of its intention to file an expedited quiet title and foreclosure action. The notice shall include a legal description of the property, street address of the property if available, a statement that the property is subject to expedited quiet title and foreclosure proceedings under this chapter, and a statement that those proceedings may extinguish any legal interests in the property. As used herein, interested parties shall mean the owner, his or her heirs or personal representatives, any mortgagee or purchaser of the subject property or any part thereof, and any party with an interest in the property, or in any part thereof, legal or equitable, in severalty or as tenant in common, including a judgment creditor or other creditor having a lien thereon, or any part thereof.
(b) The municipality shall make a good faith effort to identify the interested parties and the addresses at which they can be reached. The municipality shall be presumed to have made a good faith effort to identify interested parties if it does all of the following:
(1) Erects a sign not less than four feet by six feet on the property and maintains it for a minimum of 30 days, which must read as follows:
THIS PROPERTY WAS SOLD TO THE CITY OF ______________ FOR UNPAID TAXES. ANYONE WITH INFORMATION ABOUT THE OWNER OF THIS PROPERTY, PLEASE CALL _____________.
(2) Examines the addresses that appear on the face of the recorded deeds, mortgages, and relevant instruments.
(3) Examines the records of the tax assessor or revenue commissioner to find the names and addresses of all parties who paid taxes in the five-year period prior to the date of the tax sale; provided, however, that the municipality is not required to search for parties who paid taxes more than 20 years prior to the year of the inquiry.
(4) If the interested party is an individual, the municipality shall examine voter registration lists, available municipal archives for records of deaths, and the probate court records of estates opened in the county in which the property is located.
(5) If the interested party is a business entity, the municipality shall search the records of the Secretary of State for the name and address of a registered agent.
*(Act 2010-396, p. 644, §2; Act 2014-108, p. 183, §1.)*
##### **§ 11-70-3** Petition {#sec-11-70-3 omnilex-key=us-al-statutes--title-11--11-70-3}
The municipality may file a single petition with the clerk of the circuit court for the judicial circuit in which the subject property is located for an order to quiet title and expedite foreclosure to one or more parcels of property under this chapter. The petition shall identify each parcel by its tax parcel number and street address and shall be served on all interested parties identified in accordance with subsection (b) of Section 11-70-2. No action filed pursuant to this chapter shall be subject to the payment of filing fees.
*(Act 2010-396, p. 644, §3; Act 2014-108, p. 183, §1.)*
##### **§ 11-70-4** Hearing Scheduled {#sec-11-70-4 omnilex-key=us-al-statutes--title-11--11-70-4}
The circuit court petition under Section 11-70-3 shall set the date, time, and place for a hearing on the petition within 90 days. The court, on the request of a party, may extend the 90-day period for good cause shown.
*(Act 2010-396, p. 644, §4.)*
##### **§ 11-70-5** Notice of Hearing {#sec-11-70-5 omnilex-key=us-al-statutes--title-11--11-70-5}
(a) Not less than 30 days before the date on which the hearing on the quiet title and foreclosure petition is scheduled, the municipality shall do both of the following:
(1) Send a notice of the hearing to the interested parties identified under subsection (b) of Section 11-70-2 for each parcel named in the petition by both certified mail, return receipt requested, and regular mail.
(2) Post conspicuously on each property named in the petition notice of the hearing, which includes the following statement: “THIS PROPERTY HAS BEEN TRANSFERRED TO [NAME OF MUNICIPALITY] AND IS SUBJECT TO AN EXPEDITED QUIET TITLE AND FORECLOSURE ACTION. PERSONS WITH INFORMATION REGARDING THE PRIOR OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [NAME OF MUNICIPALITY].”
(b) Notices provided to the interested parties under this section shall include all of the following:
(1) The date on which the municipality recorded in probate court its notice of the pending expedited quiet title and foreclosure action under subsection (a) of Section 11-70-2.
(2) A legal description, tax parcel identification number, and the street address of the property, if available.
(3) The interested party or parties to whom the notice is addressed.
(4) The date, time, and place for the hearing on the petition for expedited quiet title and foreclosure and a statement that the judgment of the court may result in title to the property vesting in the municipality.
(5) Notice that the judgment of the court in the quiet title and foreclosure hearing may extinguish any ownership interest in, liens against, right to redeem, or any claim whatsoever secured by the property.
(6) The name, address, and telephone number of the municipality.
(7) A statement that persons with information regarding the owner or prior owner of any of the properties are requested to contact the municipality.
(8) That any party seeking to redeem the property will be required to pay all taxes, interest, penalties, and fees and any other charges due and owing under Chapter 10 of Title 40.
*(Act 2010-396, p. 644, §5.)*
##### **§ 11-70-6** Notice by Publication {#sec-11-70-6 omnilex-key=us-al-statutes--title-11--11-70-6}
If the municipality is unable to identify the names and addresses of interested parties, or is unable to provide notice under Section 11-70-5, the municipality shall apply to the circuit court for an order to allow notice by publication. If so ordered, the municipality shall publish a notice once each week for three consecutive weeks in a newspaper of general circulation in the county in which the property is located. If no newspaper is published in that county, publication shall be made in a newspaper of general circulation in an adjoining county. This publication shall substitute for notice under subdivision (1) of subsection (a) of Section 11-70-5. The published notice shall include the information listed in subsection (b) of Section 11-70-5. If the municipality discovers the name and address of an interested party following publication, it shall notify that party of the expedited quiet title and foreclosure action in accordance with subdivision (1) of subsection (a) of Section 11-70-5 as soon as practicable, in which case notice shall be brought to the attention of the court which shall postpone the hearing for a period of time sufficient to give such notice to the newly discovered party.
*(Act 2010-396, p. 644, §6.)*
##### **§ 11-70-7** Proof of Notice; Objections {#sec-11-70-7 omnilex-key=us-al-statutes--title-11--11-70-7}
Prior to the circuit court hearing on the expedited quiet title and foreclosure action, the municipality shall file with the clerk of the circuit court proof of notice to the interested parties by certified and regular mail and of the posting on the property under subdivision (2) of Subsection (a) of Section 11-70-5, along with proof of notice by publication under Section 11-70-6, if applicable. An interested party who desires to contest the petition shall file written objections with the clerk of the circuit court and serve those objections on the municipality at least two weeks prior to the date of the hearing. If the court denies the petition, the denial shall not preclude the municipality from filing another petition for expedited quiet title and foreclosure on that parcel. No injunction shall issue to stay an expedited quiet title and foreclosure action under this chapter.
*(Act 2010-396, p. 644, §7.)*
##### **§ 11-70-8** Right to Redeem; Judgment {#sec-11-70-8 omnilex-key=us-al-statutes--title-11--11-70-8}
(a) If an interested party appears at the hearing and asserts a right to redeem the property, the party may redeem the property by paying all the taxes, interest, municipal liens, penalties, fees, and any other charges due and owing pursuant to Chapter 10 of Title 40, including the amount due to the land commissioner had the property not been sold to the municipality.
(b) If an interested party appears and fails to redeem, or if no one appears, the circuit court shall enter judgment on the petition not more than 10 days after the date the matter was heard.
(c) The judgment of the circuit court shall specify all of the following:
(1) The legal description, tax parcel identification number, and, if known, the street address of the property foreclosed.
(2) That fee simple title to property foreclosed by the judgment is vested absolutely in the municipality, except as otherwise provided in subdivision (5) without any further rights of redemption.
(3) That all liens against the property, including any lien for unpaid taxes or special assessments, are extinguished.
(4) That the municipality has good and marketable fee simple title to the property.
(5) That all existing recorded and unrecorded interests in the property are extinguished, except for recorded easements or right-of-way, private deed restrictions, plat restrictions, or restrictions or covenants imposed under the Alabama Land Recycling and Economic Development Act or any other environmental law in effect in the state.
(6) That the municipality provided notice to all interested parties or that the municipality complied with the notice procedures in Section 11-70-5, which compliance shall create a rebuttable presumption that all interested parties received notice and an opportunity to be heard.
*(Act 2010-396, p. 644, §8; Act 2014-108, §1.)*
##### **§ 11-70-9** Appeal {#sec-11-70-9 omnilex-key=us-al-statutes--title-11--11-70-9}
A municipality or interested party, within 42 days following the effective date of the judgment, may appeal the judgment of the circuit court to the Court of Civil Appeals. Any party appealing from an order vesting title in the municipality, as a condition of the appeal, shall identify the parcel which is the subject of the appeal and, with respect to that parcel, post a bond with at least one solvent surety in the amount due to redeem the property under Chapter 10, Title 40. The appeal shall stay the order of the circuit court only with respect to each parcel identified as the subject of the appeal. The order of the circuit court shall be affirmed absent a defect in the identification of the property or in the notice such that the notice deprived a party of the right to due process of law. The order shall not be reversed on the basis of merely technical noncompliance with this chapter.
*(Act 2010-396, p. 644, §9.)*
##### **§ 11-70-10** Record of Order {#sec-11-70-10 omnilex-key=us-al-statutes--title-11--11-70-10}
The municipality shall record the court’s order in the probate court following the 42-day period after the entry of the order if no appeal is filed or after a final judgment on appeal from the decision of the circuit court on the municipality’s petition for an expedited quiet title and foreclosure action.
*(Act 2010-396, p. 644, §10.)*
### **Chapter 70A** Expedited Quiet Title and Foreclosure Actions in Class 3 Municipalities
##### **§ 11-70A-1** Applicability {#sec-11-70a-1 omnilex-key=us-al-statutes--title-11--11-70A-1}
This chapter shall apply only in a Class 3 municipality and provides the exclusive procedure for an expedited quiet title and foreclosure action for a Class 3 municipality, notwithstanding Section 24-9-8. Section 40-10-82 shall not apply to, restrict, or otherwise affect any cause of action or action brought by a Class 3 municipality pursuant to this chapter and shall not remove any limitation of action or extend the period of redemption of any abandoned tax sale properties within the corporate limits of the Class 3 municipality acquired by it from the State Land Commissioner.
*(Act 2012-517, p. 1533, §1.)*
##### **§ 11-70A-2** Initiation and Notice of Action {#sec-11-70a-2 omnilex-key=us-al-statutes--title-11--11-70A-2}
(a) Any Class 3 municipality may initiate an expedited quiet title and foreclosure action under this section against a parcel of tax sale property located within its municipal limits and purchased by the municipality from the State Land Commissioner. The municipality shall record, in the office of the judge of probate in the county in which the property is located, a notice of its intention to file an expedited quiet title and foreclosure action. The notice shall include a legal description of the property, street address of the property if available, a statement that the property is subject to expedited quiet title and foreclosure proceedings under this chapter, and a statement that those proceedings may extinguish any legal interests in the property. As used herein, “interested parties” shall mean the owner, his or her heirs or personal representatives, any mortgagee or purchaser of the subject property or any part thereof, and any party with an interest in the property, or in any part thereof, legal or equitable, in severalty or as tenant in common, including a judgment creditor or other creditor having a lien thereon, or any part thereof.
(b) The municipality shall make a good faith effort to identify the interested parties and the addresses at which they can be reached. The municipality shall be presumed to have made a good faith effort to identify interested parties if it does all of the following:
(1) Erects a sign not less than four feet by six feet on the property and maintains it for a minimum of 30 days, which must read as follows:
THIS PROPERTY WAS SOLD TO THE CITY OF ______________ FOR UNPAID TAXES. ANYONE WITH INFORMATION ABOUT THE OWNER OF THIS PROPERTY, PLEASE CALL _____________.
(2) Examines the addresses that appear on the face of the recorded deeds, mortgages, and relevant instruments.
(3) Examines the records of the tax assessor or revenue commissioner to find the names and addresses of all parties who paid taxes in the five-year period prior to the date of the tax sale; provided, however, that the municipality is not required to search for parties who paid taxes more than 20 years prior to the year of the inquiry.
(4) If the interested party is an individual, examines voter registration lists, available municipal archives for records of deaths, and the probate court records of estates opened in the county in which the property is located.
(5) If the interested party is a business entity, searches the records of the Secretary of State for the name and address of a registered agent.
*(Act 2012-517, p. 1533, §2.)*
##### **§ 11-70A-3** Petition {#sec-11-70a-3 omnilex-key=us-al-statutes--title-11--11-70A-3}
The municipality may file a single petition with the clerk of the circuit court for the judicial circuit in which the subject property is located for an order to quiet title and expedite foreclosure to one or more parcels of property under this section. The petition shall identify each parcel by its legal description, tax parcel number, and street address, if available, and shall be served on all interested parties identified in accordance with subsection (b) of Section 11-70A-2.
*(Act 2012-517, p. 1533, §3.)*
##### **§ 11-70A-4** Hearing Scheduled {#sec-11-70a-4 omnilex-key=us-al-statutes--title-11--11-70A-4}
The circuit court petition under Section 11-70A-3 shall set the date, time, and place for a hearing on the petition within 90 days. The court, on the request of a party, may extend the 90-day period for good cause shown.
*(Act 2012-517, p. 1533, §4.)*
##### **§ 11-70A-5** Notice of Hearing {#sec-11-70a-5 omnilex-key=us-al-statutes--title-11--11-70A-5}
(a) Not less than 30 days before the date on which the hearing on the quiet title and foreclosure petition is scheduled, the municipality shall do both of the following:
(1) Send a notice of the hearing to the interested parties identified under subsection (b) of Section 11-70A-2 for each parcel named in the petition by both certified mail, return receipt requested, and regular mail.
(2) Post conspicuously on each property named in the petition notice of the hearing which includes the following statement: “THIS PROPERTY HAS BEEN TRANSFERRED TO [NAME OF MUNICIPALITY] AND IS SUBJECT TO AN EXPEDITED QUIET TITLE AND FORECLOSURE ACTION. PERSONS WITH INFORMATION REGARDING THE PRIOR OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [THE MUNICIPALITY].”
(b) Notices provided to the interested parties under this section shall include all of the following:
(1) The date on which the municipality recorded in probate court its notice of the pending expedited quiet title and foreclosure action under subsection (a) of Section 11-70A-2.
(2) A legal description, tax parcel identification number, and the street address of the property, if available.
(3) The interested party or parties to whom the notice is addressed.
(4) The date, time, and place for the hearing on the petition for expedited quiet title and foreclosure and a statement that the judgment of the court may result in title to the property vesting in the municipality.
(5) Notice that the judgment of the court in the quiet title and foreclosure hearing may extinguish any ownership interest in, liens against, right to redeem, or any claim whatsoever secured by the property.
(6) The name, address, and telephone number of the municipality.
(7) A statement that persons with information regarding the owner or prior owner of the property are requested to contact the municipality.
(8) That any party seeking to redeem the property will be required to pay all taxes, interest, penalties, and fees and any other charges due and owing under Chapter 10 of Title 40.
*(Act 2012-517, p. 1533, §5.)*
##### **§ 11-70A-6** Notice by Publication {#sec-11-70a-6 omnilex-key=us-al-statutes--title-11--11-70A-6}
If the municipality is unable to identify the names and addresses of interested parties, or is unable to provide notice under Section 11-70A-5, the municipality shall apply to the circuit court for an order to allow notice by publication. If so ordered, the municipality shall publish a notice once each week for three consecutive weeks in a newspaper of general circulation in the county in which the property is located. If no newspaper is published in that county, publication shall be made in a newspaper of general circulation in an adjoining county. This publication shall substitute for notice under subdivision (1) of subsection (a) of Section 11-70A-5. The published notice shall include the information listed in subsection (b) of Section 11-70A-5. If the municipality discovers the name and address of an interested party following publication, it shall notify that party of the expedited quiet title and foreclosure action in accordance with subdivision (1) of subsection (a) of Section 11-70A-5 as soon as practicable, in which case notice shall be brought to the attention of the court which shall postpone the hearing for a period of time sufficient to give such notice to the newly discovered party.
*(Act 2012-517, p. 1533, §6.)*
##### **§ 11-70A-7** Proof of Notice; Objections {#sec-11-70a-7 omnilex-key=us-al-statutes--title-11--11-70A-7}
Prior to the circuit court hearing on the expedited quiet title and foreclosure action, the municipality shall file with the clerk of the circuit court proof of notice to the interested parties by certified and regular mail and of the posting on the property under subdivision (2) of subsection (a) of Section 11-70A-5, along with proof of notice by publication under Section 11-70A-6, if applicable. An interested party who desires to contest the petition shall file written objections with the clerk of the circuit court and serve those objections on the municipality at least two weeks prior to the date of the hearing. If the court denies the petition, the denial shall not preclude the municipality from filing another petition for expedited quiet title and foreclosure on that parcel. No injunction shall issue to stay an expedited quiet title and foreclosure action under this section.
*(Act 2012-517, p. 1533, §7.)*
##### **§ 11-70A-8** Right to Redeem; Judgment {#sec-11-70a-8 omnilex-key=us-al-statutes--title-11--11-70A-8}
(a) If an interested party appears at the hearing and asserts a right to redeem the property, that party may redeem in accordance with Chapter 10 of Title 40.
(b) If an interested party appears and fails to redeem, or if no one appears, the circuit court shall enter judgment on the petition not more than 10 days after the date the matter was heard.
(c) The judgment of the circuit court shall specify all of the following:
(1) The legal description, tax parcel identification number, and, if known, the street address of the property foreclosed.
(2) That fee simple title to property foreclosed by the judgment is vested absolutely in the municipality, except as otherwise provided in subdivision (5), without any further rights of redemption.
(3) That all liens against the property, including any lien for unpaid taxes or special assessments, are extinguished.
(4) That the municipality has good and marketable fee simple title to the property.
(5) That all existing recorded and unrecorded interests in the property are extinguished, except for easements or right-of-way, private deed restrictions, plat restrictions, or restrictions or covenants imposed under the Alabama Land Recycling and Economic Development Act or any other environmental law in effect in the state.
(6) That the municipality provided notice to all interested parties or that the municipality complied with the notice procedures in Section 11-70A-5, which compliance shall create a rebuttable presumption that all interested parties received notice and an opportunity to be heard.
*(Act 2012-517, p. 1533, §8.)*
##### **§ 11-70A-9** Appeal {#sec-11-70a-9 omnilex-key=us-al-statutes--title-11--11-70A-9}
A municipality or interested party may, within 42 days following the effective date of the judgment, appeal the judgment of the circuit court to the Court of Civil Appeals. Any party appealing from an order vesting title in the municipality shall, as a condition of the appeal, identify the parcel which is the subject of the appeal and, with respect to that parcel, post a bond with at least one solvent surety in the amount due to redeem the property under Chapter 10, Title 40. The appeal shall stay the order of the circuit court only with respect to each parcel identified as the subject of the appeal. The order of the circuit court shall be affirmed absent a defect in the identification of the property or in the notice such that the notice deprived a party of the right to due process of law. The order shall not be reversed on the basis of merely technical noncompliance with this section.
*(Act 2012-517, p. 1533, §9.)*
##### **§ 11-70A-10** Record of Order {#sec-11-70a-10 omnilex-key=us-al-statutes--title-11--11-70A-10}
The municipality shall record the court’s order in the probate court following the 42-day period after the entry of the order if no appeal is filed or after a final judgment on appeal from the decision of the circuit court on the municipality’s petition for an expedited quiet title and foreclosure action.
*(Act 2012-517, p. 1533, §10.)*
### **Chapter 70B** Judicial in Rem Foreclosure Actions in Class 1 Municipalities
##### **§ 11-70B-1** Definitions {#sec-11-70b-1 omnilex-key=us-al-statutes--title-11--11-70B-1}
For purposes of this chapter, the following terms have the following meanings:
(1) INTERESTED PARTY. Any of the following:
a. The person who last appears as owner of a particular real property in the office of the judge of probate’s property records.
b. The current mortgagee of record of the real property or assignee of record of the mortgagee.
c. The current holder of a beneficial interest in a deed of trust recorded against the real property.
d. A tax certificate holder.
e. A tax sale purchaser that holds a deed of purchase in accordance with Section 40-10-29.
f. A tax lien purchaser that holds a tax lien certificate in accordance with Section 40-10-187.
g. Any party having an interest in the real property, in whole or in part, legal or equitable, in severalty or as tenant in common, whose identity and address is reasonably ascertainable from the records of the Class 1 municipality or records maintained in the county office of the judge of probate or as revealed by a full title search, consisting of 60 years or more.
h. An interested party shall not include the holder of the benefit of an easement that burdens the real property, the holder of the benefit or burden of a real covenant that burdens the real property, or the holder of the benefit of a utility easement that burdens the real property.
(2) MINIMUM BID PRICE. The price that equals the redemption amount.
(3) MUNICIPAL CODE LIEN. Any lien that has been levied against real property by a Class 1 municipality due to the nonpayment of any fine, penalty, abatement cost, assessment, or enforcement cost incurred by a Class 1 municipality related to the enforcement of state or local housing and building codes or a lien arising from the abatement of nuisances by the Class 1 municipality. The term shall apply only to those liens that arise out of a failure to comply with any of the following or from the failure to comply with a Class 1 municipality’s ordinances enacted pursuant to the authority granted in any of the following:
a. Article 2 of Chapter 40.
b. Sections 11-47-117 and 11-47-118.
c. Sections 11-47-130, 11-47-131, and 11-47-140.
d. Chapter 53.
e. Chapter 53B.
f. Article 4 of Chapter 67.
g. Section 45-37A-53.
(4) MUNICIPAL CODE LIEN PAYOFF. An amount equal to the sum of the following:
a. The principal amount of a municipal code lien.
b. Interest accrued at the rate of six percent per annum from the date the municipal code lien was filed in the judge of probate’s office unless a different rate and date of accrual is specified by law.
c. Any fees or costs incurred in the collection of a lien under this chapter including, without limitation, the cost of title examinations and publication of notices.
d. Any attorney fees, filing fees, and court costs incurred in a judicial in rem foreclosure proceeding under this chapter.
e. Any other penalties authorized under state law or pursuant to an ordinance enacted by a Class 1 municipality.
(5) OWNER-OCCUPIED. Real property that is lawfully occupied as a principal residence of the owner of record or of a family member of a deceased individual who was the owner of record at the time of his or her death, and that is any of the following:
a. A homestead as provided in Section 40-9-19.
b. Exempt from ad valorem taxation under Sections 40-9-19.1, 40-9-20, or 40-9-21.
c. Eligible for, but not yet granted, either of the designations set forth in paragraph a. or b.
(6) REDEMPTION AMOUNT. The sum of the following:
a. The full amount of the municipal code lien payoff for each municipal code lien on which a Class 1 municipality is seeking to foreclose under this chapter.
b. Any tax payoff that may be applicable to the property on which the Class 1 municipality is seeking to foreclose under this chapter.
(7) TAX CERTIFICATE HOLDER. Any of the following:
a. A tax sale purchaser that holds a certificate of purchase pursuant to Section 40-10-19.
b. The state, in the event that it has accepted and recorded a certificate of purchase obtained at a tax sale pursuant to Section 40-10-20.
c. A county, in the event that a tax lien not sold at a tax lien auction of real property situated in the county is retained by the county pursuant to Section 40-10-199.
d. Any party to which a certificate of purchase obtained at a tax sale has been assigned pursuant to Section 40-10-21.
e. The purchaser or assignee of a tax lien certificate as provided in Section 40-10-187.
(8) TAX PAYOFF. All amounts necessary to satisfy any claims for delinquent taxes assessed against the real property on which a Class 1 municipality is seeking to foreclose under this chapter. These amounts shall include all of the following:
a. If the taxes associated with the property are delinquent pursuant to Sections 40-11-4 or 11-51-2 but the property has not yet been sold for taxes, then the full amount of delinquent taxes, costs, fees, and charges due to the county tax collector pursuant to Section 40-5-8.
b. If the property has been sold to the state for taxes, then those amounts required for redemption as provided in Sections 40-10-83, 40-10-120, 40-10-121, and 40-10-122 except that when a Class 1 municipality is the prevailing bidder, the tax payoff amount shall be the lesser of these amounts or the amount provided by Section 40-10-132(a)(2).
c. If the property has been sold for taxes to a party other than the state, then those amounts required for redemption as provided in Sections 40-10-83, 40-10-120, 40-10-121, and 40-10-122.
d. If a tax lien has been sold by a county pursuant to Section 40-10-182, then the amount required for redemption pursuant to Section 40-10-193.
(9) TAXES. The taxes assessed against real property by either the state, the county, or a Class 1 municipality in which the real property is situated which are delinquent pursuant to Sections 40-11-4 or 11-51-2 as of the date a proceeding under this chapter is commenced or at any time before final resolution of the same and shall include any taxes assessed against real property that are unpaid from any previous year and any amounts required for redemption pursuant to Sections 40-10-83, 40-10-120, 40-10-193, or 11-51-23. As provided in Section 11-51-6, a lien for taxes shall be superior to all other liens, including municipal code liens.
*(Act 2024-246, §1.)*
##### **§ 11-70B-2** Applicability of Chapter {#sec-11-70b-2 omnilex-key=us-al-statutes--title-11--11-70B-2}
(a) This chapter applies only to Class 1 municipalities.
(b) This chapter shall not apply to owner-occupied property.
*(Act 2024-246, §2.)*
##### **§ 11-70B-3** Enforcement of Municipal Code Liens {#sec-11-70b-3 omnilex-key=us-al-statutes--title-11--11-70B-3}
(a) Notwithstanding any law to the contrary, any fees, penalties, and abatement costs imposed against real property for abatement of nuisances or violations of a Class 1 municipality’s housing and building codes adopted pursuant to state law, other than owner-occupied property, may be enforced in rem as a lien pursuant to this chapter.
(b) Unless otherwise specified by law, municipal code liens may be filed in the judge of probate’s office for the county where the real property is situated.
(c) Every municipal code lien shall be superior to all other liens except those liens for taxes pursuant to Section 11-51-6.
*(Act 2024-246, §3.)*
##### **§ 11-70B-4** Ordinance of a Class 1 Municipality Authorizing Judicial in Rem Foreclosure of Municipal Code Lien {#sec-11-70b-4 omnilex-key=us-al-statutes--title-11--11-70B-4}
(a) A Class 1 municipality may proceed with judicial in rem foreclosures of municipal code liens in accordance with this chapter by enacting an ordinance of the governing body of the Class 1 municipality where the real property is situated, which ordinance shall be sufficient authority for use of this chapter by the Class 1 municipality to enforce its municipal code liens.
(b) The ordinance of a Class 1 municipality authorizing and approving the use of this chapter shall set forth all of the following:
(1) The initial effective date for application of these procedures.
(2) If the Class 1 municipality elects not to apply these procedures to all real properties as of the same initial effective date, it shall specify all of the following:
a. Which real properties are subject to these procedures.
b. The order in which the real properties shall be subject to these procedures.
c. The time and manner of determining paragraphs a. and b.
(3) The explicit exclusion of owner-occupied properties from the application of the judicial in rem foreclosure procedures authorized under this chapter.
(4) Any other matters related to code enforcement that the Class 1 municipality designates for administrative regulation.
(c) The provisions of a Class 1 municipality ordinance and administrative regulations issued pursuant to the ordinance shall not conflict with Sections 11-70B-5 through 11-70B-8.
(d) Proceedings in accordance with this chapter are intended solely to enforce the municipal code lien for real property subject to the lien and shall not constitute an action for personal liability of the owner or owners of the real property to which the lien applies.
(e) The rights and remedies provided in this chapter are available solely to the governmental entities authorized by law to enforce municipal ordinances and shall not extend to any nongovernmental transferee of municipal code liens.
(f) A Class 1 municipality that has adopted the provisions of this chapter by ordinance and that seeks to enforce a municipal code lien through the sale of real property shall utilize the judicial in rem proceedings authorized under this chapter as the sole remedy for the enforcement through the sale of real property.
(g) The enforcement proceedings authorized under this chapter may be initiated only by a Class 1 municipality.
(h) A municipal code lien shall not include any lien that has previously been certified to the tax collector of the county for inclusion on the property tax bill associated with the real property, such as those liens certified pursuant to Section 11-67-66 or Section 45-37A-53 or any other applicable local law.
*(Act 2024-246, §4.)*
##### **§ 11-70B-5** Recording of Municipal Code Lien; Notice; Initiation of Action; Lis Pendens; Petition Requirements {#sec-11-70b-5 omnilex-key=us-al-statutes--title-11--11-70B-5}
(a)(1) After a municipal code lien has been recorded with the office of the judge of probate for the county in which the real property is situated, the governing body of a Class 1 municipality may identify by resolution those properties on which to commence a judicial in rem foreclosure pursuant to this chapter; provided, however, that those properties the Class 1 municipality identifies as owner-occupied shall not be subject to judicial in rem foreclosure.
(2) A Class 1 municipality shall not file a petition for judicial in rem foreclosure pursuant to this chapter for a period of six months following the date upon which the municipal code lien is recorded in the office of the judge of probate. A petition for judicial in rem foreclosure may include any other municipal code lien that has been filed against the subject property prior to the date the petition is filed. After enforcement proceedings have commenced, the enforcement proceedings may be amended to include any subsequently arising municipal code liens and, if applicable, any taxes.
(b) If the property on which a Class 1 municipality is seeking to foreclose is subject to taxes, at least 60 days prior to the filing of the petition the Class 1 municipality shall notify all other taxing entities within the jurisdiction of the Class 1 municipality and the state of its intention to file a petition for judicial in rem foreclosure of the real property on which a municipal code lien exists. Upon notification, the county tax collector shall provide the tax payoff amount.
(c) A Class 1 municipality shall initiate an action to foreclose a code enforcement lien pursuant to this chapter by filing a petition with the clerk of the circuit court for the judicial circuit in which the real property is situated. The petition shall be substantially identical in form and content to the form provided in subsection (j). The case shall be docketed in the circuit court by the clerk where it shall be a preferred case. The circuit court in which a petition is filed under this subsection shall immediately set the date, time, and place for a hearing on the petition.
(d) Upon filing the petition, a Class 1 municipality shall record an appropriate lis pendens in the office of the judge of probate of the county in which the real property is situated. The lis pendens shall include all of the following information pertaining to the real property:
(1) The legal description.
(2) The tax identification number of the real property.
(3) The street address if available.
(4) A statement that the property is subject to judicial in rem foreclosure proceedings under this chapter.
(5) A statement that those proceedings may extinguish any legal interests in the property.
(e) The petition shall be filed against the real property to which the recorded municipal code lien pertains and shall provide all of the following pertaining to the real property:
(1) The identity of the Class 1 municipality.
(2) A legal description.
(3) The tax identification number of the property.
(4) The street address if available.
(5) A description of the municipal code lien that is being foreclosed.
(6) The principal amount of the municipal code lien and any applicable interest and penalties.
(7) The principal amount of any additional municipal code liens against the property and any applicable interest and penalties in accordance with subsection (a).
(8) The year or years for which the taxes are delinquent, if any.
(9) The principal amount of the taxes and any interest and penalties.
(10) The tax payoff amount.
(11) A statement that upon final sale in accordance with this section and payment of any applicable tax payoff amount, an interested party’s rights of redemption under Chapter 10 of Title 40, Chapter 51 of Title 11, Section 11-53B-10, or Section 11-48-54 shall be extinguished.
(12) The names and addresses of all interested parties to whom copies of the petition shall be sent pursuant to subsection (f).
(13) A deraignment of title for a period of at least 60 years before filing the complaint, unless the court otherwise directs, setting forth the book and page of the records where any instrument affecting the title may be recorded.
(f)(1) A Class 1 municipality shall mail copies of the petition by both certified mail, return receipt requested, and by regular mail to all interested parties whose identities and addresses are reasonably ascertainable.
(2) Copies of the petition shall also be mailed by first-class mail to the real property address to the attention of the occupants of the property, if any.
(3) In addition, notice shall be physically posted on the real property and shall include the following statement: “THIS PROPERTY IS SUBJECT TO A JUDICIAL IN REM FORECLOSURE ACTION AND MAY BE TRANSFERRED TO [NAME OF CLASS 1 MUNICIPALITY] OR ANOTHER PARTY. PERSONS WITH INFORMATION REGARDING THE CURRENT OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [NAME OF CLASS 1 MUNICIPALITY].”
(g) If a Class 1 municipality finds reason to believe that the real property is owner-occupied after the filing of the petition, the Class 1 municipality shall immediately seek dismissal of its petition.
(h) Within 30 days after filing the petition, a Class 1 municipality shall cause a notice of the filing to be published once each week for three consecutive weeks in a newspaper of general circulation in the county in which the property is located. The notice shall specify the name and address of the Class 1 municipality and the following pertaining to the real property:
(1) The legal description.
(2) The tax identification number.
(3) The street address if available.
(4) A description of any applicable municipal code lien that is being foreclosed.
(5) The principal amount of any municipal code lien and any interest and penalties.
(6) The applicable period of tax delinquency, if any.
(7) The principal amount of taxes, if any.
(8) Upon deposit by the court of any tax payoff amounts with the appropriate parties, any rights of redemption accorded to interested parties under Chapter 10 of Title 40, Chapter 51 of Title 11, Section 11-53B-10, or Section 11-48-54 are extinguished.
(9) The date and place of the filing of the petition.
(i) If the identity of some or all of the individuals who may have an interest in the real property are unknown, or if they are minors or individuals of unsound mind, the court shall appoint a guardian ad litem to represent and defend the interests of the unknown, minors, or incompetent parties in the action.
(j) The municipality, by ordinance, may adopt forms to implement and administer this section.
*(Act 2024-246, §5.)*
##### **§ 11-70B-6** Judicial Hearing; Procedures {#sec-11-70b-6 omnilex-key=us-al-statutes--title-11--11-70B-6}
(a)(1) A Class 1 municipality shall request that a judicial hearing on the petition occur not earlier than 30 days nor later than 90 days following the filing of the petition.
(2) At the judicial hearing, any interested party shall have the right to be heard and to contest the delinquency of the municipal code lien, the adequacy of the proceedings, the classification of the real property as owner-occupied, and the amount of the tax payoff.
(b) If the court determines that the information set forth in the petition is accurate, the court shall render its judgment and shall order all of the following:
(1) The municipal code lien is delinquent.
(2) The amounts of any additional municipal code liens and taxes described in the petition are delinquent.
(3) Proper notice has been given to all interested parties.
(4) The property is not owner-occupied.
(5) The property as described in the petition be sold in accordance with this chapter.
(6) The sale shall become final and binding immediately after the sale is conducted in accordance with Section 11-70B-8.
(c) The order of the court shall provide that the real property be sold free and clear of all liens, claims, and encumbrances other than all of the following:
(1) Rights of redemption provided under federal law.
(2) Taxes assessed against the property that are due but not yet delinquent as of the date of the court’s order.
(3) Any easement that burdens the property, any real covenant that burdens the property, and any utility easement that benefits the property as of the date of the filing of the municipal code lien on which the Class 1 municipality is seeking to foreclose under this chapter.
(d) If at any point in the proceedings the court determines that the real property is owner-occupied, the Class 1 municipality shall seek immediate dismissal of the proceedings.
*(Act 2024-246, §6.)*
##### **§ 11-70B-7** Redemption of Real Property {#sec-11-70b-7 omnilex-key=us-al-statutes--title-11--11-70B-7}
(a) At any point prior to the conclusion of the sale described in Section 11-70B-8(a), any interested party may redeem the real property from the sale by payment of the redemption amount. Payment shall be made to the Class 1 municipality. Following receipt of the redemption payment, the Class 1 municipality shall file for dismissal of the proceedings.
(b) In the event that the owner of the real property pays the redemption amount, the proceedings shall be dismissed, and the rights and interests of all interested parties shall remain unaffected.
(c) In the event of a redemption payment by any interested party other than the owner, the party making the payment shall possess a lien on the real property for the full amount of the payment, which lien shall have the same priority as the municipal code lien described in Section 11-70B-3(c). The lienholder shall have the right to enforce the lien as permitted to the holder of any lien under existing law. The lienholder shall not otherwise succeed to the rights of the Class 1 municipality or tax certificate holder.
*(Act 2024-246, §7.)*
##### **§ 11-70B-8** Sale of Real Property {#sec-11-70b-8 omnilex-key=us-al-statutes--title-11--11-70B-8}
(a) Following the hearing and order of the court in accordance with Section 11-70B-6, the court shall cause a sale of the real property to be advertised and conducted by the court in a manner similar to the procedure described in Section 40-10-15. The sale shall not occur earlier than 45 days following the date of the order of the court.
(b)(1) Except as otherwise authorized by law, the minimum bid price for the sale of the real property shall be the redemption amount.
(2)a. In the absence of any bid higher than the minimum bid price, the court or its designee shall bid in for the property on behalf of the Class 1 municipality or its designee in an amount equal to the minimum bid price, causing the Class 1 municipality to become the purchaser at the sale pursuant to Section 11-70B-7.
b. A bid in on behalf of the Class 1 municipality or its designee shall be tendered as a credit bid for the portion of the minimum bid price equal to the municipal code lien payoff. If the minimum bid price bid in by the Class 1 municipality includes a tax payoff amount, the Class 1 municipality shall tender the amount of the tax payoff to the court, which, together with the municipal code lien payoff, shall satisfy the full amount of the minimum bid price.
(c) Payment of the winning bid shall be due immediately after the sale is conducted. The proceeds of the foreclosure sale shall be distributed in the following manner:
(1) If the purchaser is a party other than the Class 1 municipality, the court or its designee shall deposit with the Class 1 municipality the amount of the proceeds equal to the municipal code lien payoff, less any costs incurred or fees charged by the office of the judge of probate.
(2) If the purchaser is the Class 1 municipality, the Class 1 municipality shall tender to the court an amount equal to any costs incurred by the court that are included in the amount of the municipal code lien payoff.
(3) If the minimum bid price includes a tax payoff amount, the court shall deposit the amounts paid with the appropriate parties in accordance with Sections 40-5-10, 40-10-128, 40-10-129, and 40-10-193 and any applicable local laws.
(4) In the event that the foreclosure sale price exceeds the minimum bid price, the surplus shall be distributed by the court to the interested parties, including the owner, as their interests appear and in the order of priority in which their interests exist.
(d) Upon deposit by the court of any tax payoff amounts with the appropriate parties as described in subdivision (c)(3), any and all rights of redemption accorded to interested parties under Chapter 10 of Title 40, Chapter 51 of Title 11, Section 11-53B-10, or Section 11-48-54 are extinguished.
(e) From and after the moment of the sale, the sale shall be final and binding.
(f) Within 90 days following the date of the sale, the court shall cause to be executed a deed to the real property identified in the petition. Upon execution, the court shall cause the deed to be recorded with the office of the judge of probate.
(g) Within 90 days following the date of the sale, the Class 1 municipality shall file a report of the sale with the clerk of the circuit court, which report shall identify whether a sale took place, the foreclosure sale price, and the identity of the purchaser.
(h) The municipality, by ordinance, may adopt forms to implements and administer this section.
*(Act 2024-246, §8.)*
### **Chapter 71** The Neighborhood Infrastructure Incentive Plan Act of 2011
##### **§ 11-71-1** Legislative Findings {#sec-11-71-1 omnilex-key=us-al-statutes--title-11--11-71-1}
The Legislature makes the following statements and findings:
(1) Cities have hundreds of miles of roads and streets located in subdivisions that are in need of upgrades or additions. These upgrades or additions are behind schedule and at the current rate will take considerably more years to complete, if ever. These upgrades or additions include, but are not limited to, sanitary sewer, drainage, curb and gutter, sidewalk, underground power, and asphalt overlaying.
(2) Homeowners and business owners would benefit from the voluntary formation of neighborhood infrastructure authorities to oversee and finance infrastructure projects through an assessment basis.
(3) An effective neighborhood infrastructure program would have the following benefits:
a. Jobs would be created.
b. Property values would be stabilized and/or increased.
c. Upgrade and additional work would be expedited.
d. Savings would be created for the city.
e. Revenues would be created for city, state, and federal governments.
*(Act 2011-689, p. 2105, §1.)*
##### **§ 11-71-2** Short Title; Definitions {#sec-11-71-2 omnilex-key=us-al-statutes--title-11--11-71-2}
(a) This chapter shall be known as and may be cited as “The Neighborhood Infrastructure Incentive Plan Act of 2011.”
(b) For purposes of this chapter, the following terms shall have the following meanings:
(1) ASSESSMENTS. Voluntary assessments paid by property owners in an authority created pursuant to this chapter.
(2) AUTHORITY. A Local Neighborhood Infrastructure Authority formed by homeowners or business owners pursuant to this chapter, exercising the powers granted in this chapter.
(3) BOARD. The board of directors of an authority.
(4) MUNICIPALITY. The municipality within which homeowners or business owners form an authority, and which must give approval for the formation of an authority and appoint a board of trustees to administer the authority.
(5) INFRASTRUCTURE PROJECT or PROJECT. An infrastructure project that would allow homeowners and business owners located in an authority to make certain improvements, additions, and upgrades to streets and utilities in their local neighborhoods. Infrastructure projects shall include, but not be limited to, the following:
a. Resurfacing existing streets.
b. Sidewalks.
c. Sewer installation.
d. Fire protection (i.e., hydrants and mains).
e. Domestic water service.
f. Underground utilities.
g. Concrete curb and gutter.
h. Drainage improvements.
i. Paving dirt roads.
j. Engineering and consulting and associated costs for financing fees.
*(Act 2011-689, p. 2105, §2.)*
##### **§ 11-71-3** Creation of Neighborhood Infrastructure Authority {#sec-11-71-3 omnilex-key=us-al-statutes--title-11--11-71-3}
(a) A municipality of this state may authorize the creation of a Local Neighborhood Infrastructure Authority to manage, coordinate, and collect voluntary assessments from homeowners and business owners to participate in revitalization projects in their respective neighborhoods. If at least 80 percent of the property tax assessable homeowners and/or business owners sign a petition to allow the formation of an authority, the petition shall be reviewed by the municipality.
(b) One or more owners of land wishing to form an authority in a municipality may petition the municipality to form an authority as follows:
(1) The owners shall prepare a written petition executed by 80 percent of the owners of property of all land proposed to be included within the authority.
(2) The petition shall include a description of the tract or tracts of land proposed to be included within the authority, which may include less than all of any individual tract of land. The description shall be sufficient if it refers to tax assessment tracts in accordance with the tax assessor’s numbering or other reference system, by metes and bounds, by subdivision lot, by reference to recorded deeds, or by other reasonable reference methods.
(3) The petition shall include a map or plat of the proposed area in the authority, showing that, if the authority is created, the land will be contiguous within the municipal limits at the time the petition is presented.
(4) The petition shall designate no less than three nor more than five individual property owners to initially act as agents in representing the owners before the municipality.
(c) Any land proposed to be included within an authority formed may not be within the municipal limits of any municipality other than the municipality to which the petition is being made and all land must be within the corporate limits of the municipality.
(d) A petition shall contain a proposed form of articles of incorporation for the proposed authority, which shall include the following information:
(1) The name of the authority and a statement that the authority is organized pursuant to this chapter.
(2) The names and mailing addresses of the incorporators.
(3) The name of the municipality that is petitioned for the formation of an authority.
(4) The names and addresses of the members of the authority proposed to be the board of directors of the authority and their terms of office. The members of the board of directors shall be appointed by the municipality, if the petition is approved by the municipality. The members of the board may include any of the property owners who act initially as agents representing the proposed authority or any other member of the authority.
(e) A petition shall contain a proposed name for the authority substantially in the form of ________ Infrastructure Authority District, which name shall be sufficient to distinguish the authority’s district from other neighborhoods or areas of the municipality.
(f) Upon receipt of a petition, the municipality shall confirm that the persons executing the petition are owners in the area proposed to be included within the authority’s district.
(g) If the municipality considers the formation of an authority expedient, it may, by resolution, approve the formation of the authority, and appoint the persons named in the petition as the board of directors of the district.
(h) If an authority is formed in a municipality, only the individuals and business owners in the boundaries of the authority may be voluntarily assessed on a fair and equitable basis by the authority for an improvement project or projects.
*(Act 2011-689, p. 2105, §3.)*
##### **§ 11-71-4** Powers of Authority {#sec-11-71-4 omnilex-key=us-al-statutes--title-11--11-71-4}
Any authority formed pursuant to this chapter shall have the following powers, in addition to those stated elsewhere in this chapter:
(1) To enter into competitively bid contracts and agreements affecting the infrastructure projects of the district.
(2) To hold public meetings with proper advertisement and notice to affected and adjacent property owners.
(3) To acquire, construct, install, and operate projects and all property, rights, or interests incidental or pertinent thereto; provided, however, that nothing in this chapter shall authorize an authority to construct, own, or operate a system for the generation, transmission, or distribution of electric power, cable television, or Internet system, or telecommunications utility or to be in the business of providing electric energy, cable television, Internet, or telecommunications services.
(4) To have the management, control, and supervision of all the business and affairs of the district, and of the acquisition, construction, installation, and operation of projects therein until completed and formal dedication is accepted by the city.
(5) To enter into contracts with one or more owners of property within the authority relating to the acquisition, construction, or installation of improvements. Without limitation, contracts may require owners in the boundaries of the authority to connect their properties with gas, water, or sewer mains, utilities, or other services in the streets in front of, at the rear of, or otherwise adjacent or near to their properties prior to the paving or final paving of roads on which their properties front. Any infrastructure projects or improvements requiring installations, construction, or service by, or contracts with, an electric utility shall be subject to and in accordance with the applicable rules and regulations of the Public Service Commission, including without limitation the rules governing reimbursement to the utility for the cost of installing electric facilities underground.
(6) To contract on a competitively bid basis with any licensed contractor for the purpose of providing any materials or any work with respect to the acquisition, installation, or construction of infrastructure projects.
(7) To purchase liability and other forms of insurance.
(8) To adopt and amend bylaws not in conflict with this chapter or the laws of this state.
(9) To enter into contracts and agreements with any landowner, owner, or any other person concerning the installation, construction, or acquisition of infrastructure projects, assessment of the costs thereof, the waiver or limitation of legal rights, or any other matters concerning the authority or projects within the boundaries of the authority.
(10) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter. A specific power shall not be considered as a limitation upon any power that is necessary, useful, or appropriate to carry out the purposes and intent of this chapter.
(11) To take official action with respect to the reimbursement of costs associated with infrastructure projects.
(12) To enter into professional contracts and agreements and other instruments, and to take other actions as may be necessary or convenient to accomplish any purpose for which an authority is organized or to exercise any power expressly granted hereunder.
*(Act 2011-689, p. 2105, §4.)*
##### **§ 11-71-5** Liability; Civil Actions {#sec-11-71-5 omnilex-key=us-al-statutes--title-11--11-71-5}
(a) Authorities, members of boards of directors, officers, and agents of the authority shall have the same immunity from liability as a municipality and its officers unless their actions are unreasonable when compared to that of a similarly situated individual, or the actions are wanton, willful, or intentional. Subject to the previous sentence, no civil action may be brought or maintained against the authority or any director thereof for or on account of the negligence of an authority or director or its or his or her agents, servants, or employees in or about the construction, acquisition, installation, maintenance, operation, superintendence, or management of any facility or other improvement owned, controlled, maintained, or managed by the authority.
(b) No civil action may be maintained against a municipality, its officers, servants, employees, or agents relating to any facility built by an authority or to any other project owned, controlled, maintained, or managed by an authority unless the individuals’ actions were unreasonable when compared to that of a similarly situated individual, or such acts were wanton, willful, or intentional.
*(Act 2011-689, p. 2105, §5.)*
##### **§ 11-71-6** Terms of Office; Vacancies {#sec-11-71-6 omnilex-key=us-al-statutes--title-11--11-71-6}
(a) Initial members of the board shall serve terms of office of four years, or until dissolution of the authority, whichever is sooner. Upon the expiration of the initial term of office of any member of the board, the person shall remain a member of the board until his or her successor has been duly elected at an election of a majority of the authority members. Successors’ terms of office shall be four years or until dissolution of the authority, whichever is sooner.
(b) A vacancy on the board shall be filled in the same manner as the vacating member was initially elected.
*(Act 2011-689, p. 2105, §6.)*
##### **§ 11-71-7** Contracts; Funding {#sec-11-71-7 omnilex-key=us-al-statutes--title-11--11-71-7}
(a) Upon the making of the preliminary assessments, the authority shall prepare contracts and shall contract on a competitively bid basis for the acquisition, construction, or installation of all projects as specified in the petition.
(b) Because authority infrastructure projects are paid from assessments of members of the authority, no public funds may be utilized and projects shall be exempt from state bidding law, but projects should be competitively bid.
(c) The authority may not contract for and commence the acquisition, construction, or installation of one or more projects or a portion of one or more projects in advance of a preliminary or final assessment being collected.
*(Act 2011-689, §7.)*
##### **§ 11-71-8** Refunding of Excess Funds {#sec-11-71-8 omnilex-key=us-al-statutes--title-11--11-71-8}
Following the completion of the acquisition, construction, or installation of the projects, if there are excess funds from assessments, after fully funding all reserves and contingency funds, the excess funds shall be refunded in a manner determined to be equitable by the board, or as otherwise provided in the board’s proceedings with respect to its bylaws.
*(Act 2011-689, p. 2105, §8.)*
##### **§ 11-71-9** Dedication of Facilities and Projects {#sec-11-71-9 omnilex-key=us-al-statutes--title-11--11-71-9}
Following completion of all projects of an authority and the dedication of the projects and related facilities, the municipality must formally accept the dedication of such facility and projects.
*(Act 2011-689, p. 2105, §9.)*
##### **§ 11-71-10** Dissolution and Liquidation of Authority {#sec-11-71-10 omnilex-key=us-al-statutes--title-11--11-71-10}
If at any time an authority has no assessments outstanding, and has paid all its indebtedness, and distributed any excess funds, the board may adopt a resolution recommending to the municipality that the authority be dissolved and liquidated. Upon delivery of a copy of the resolution to the municipality, if it considers it expedient, the municipality may adopt a resolution declaring the authority dissolved. Upon declaring the authority dissolved, the authority shall dedicate the facilities and revitalization projects to the municipality. The municipality must formally accept such dedicated facilities and projects before it agrees to assume the legal obligation to maintain the facilities and projects.
*(Act 2011-689, p. 2105, §10.)*
##### **§ 11-71-11** Income Tax Credit {#sec-11-71-11 omnilex-key=us-al-statutes--title-11--11-71-11}
Each homeowner and business assessed pursuant to this chapter, beginning in the 2012 tax year, shall be eligible for an income tax credit of 10 percent of the amount of assessment paid, not to exceed one thousand dollars ($1,000) credit in any tax year, for a period not exceeding 10 successive tax years.
*(Act 2011-689, p. 2105, §11.)*
##### **§ 11-71-12** Expiration of Chapter {#sec-11-71-12 omnilex-key=us-al-statutes--title-11--11-71-12}
This chapter shall automatically expire December 31, 2015, unless specifically extended by an act of the Legislature; however, all authorities in existence as of December 31, 2015, shall continue in existence until all existing projects of the authority are completed and the authority seeks dissolution.
*(Act 2011-689, p. 2105, §12.)*
### **Chapter 72** Tree Commission in Class 2 Municipality
##### **§ 11-72-1** Short Title; Legislative Findings {#sec-11-72-1 omnilex-key=us-al-statutes--title-11--11-72-1}
(a) This chapter shall apply only in a Class 2 municipality.
(b) It is hereby declared that the trees on private property and in publicly owned areas within a Class 2 municipality, including particularly those in street rights-of-way, are both an economic and an aesthetic asset to the Class 2 municipality and the State of Alabama; that the existing trees so located are in need of protection and of active measures to support their health and growth, that it is desirable that additional trees be planted, and that those ends require a separate entity specifically charged with the responsibility and duty of fostering the planting, growth, and protection of trees on private property and publicly owned areas.
*(Act 2015-116, §§1, 2(1).)*
##### **§ 11-72-2** Creation; Composition {#sec-11-72-2 omnilex-key=us-al-statutes--title-11--11-72-2}
There is created a Tree Commission within each Class 2 municipality, to consist of the same number of members as the number of members of the city council each member to be appointed by the city council of the Class 2 municipality.
The city council of the Class 2 municipality shall make the appointments to the commission within a reasonable time after May 5, 2015. Each member of the commission shall serve at the pleasure of the city council. Members serving on the commission on May 5, 2015, shall be eligible for appointment by the city council of the Class 2 municipality. Commissioners shall serve until a successor takes office, and any vacancies shall be filled by appointment.
*(Act 2015-116, §2(2).)*
##### **§ 11-72-3** Compensation; Officers {#sec-11-72-3 omnilex-key=us-al-statutes--title-11--11-72-3}
Members of the commission shall serve without salary or remuneration. They shall annually elect from among their number a chair, a vice chair, a secretary, and a treasurer.
*(Act 2015-116, §2(3).)*
##### **§ 11-72-4** Funding {#sec-11-72-4 omnilex-key=us-al-statutes--title-11--11-72-4}
The commission is authorized to accept contributions and to expend the same for the purposes of carrying out its duties and obligation imposed by this chapter.
*(Act 2015-116, §2(4).)*
##### **§ 11-72-5** Ownership and Maintenance of Trees {#sec-11-72-5 omnilex-key=us-al-statutes--title-11--11-72-5}
The Class 2 municipality and other governmental subdivisions and agencies of the state, shall continue to be the owners of and, subject to the provisions hereof, continue to be responsible for the maintenance of and care for all trees on publicly owned property, and the Tree Commission shall have no duties other than those specifically provided in the chapter.
*(Act 2015-116, §2(5).)*
##### **§ 11-72-6** Departmental Cooperation {#sec-11-72-6 omnilex-key=us-al-statutes--title-11--11-72-6}
The Tree Commission shall cooperate with and coordinate its activities with the Public Works Department, the Department of Parks and Recreation, and other departments of the Class 2 municipality. All departments of the Class 2 municipality shall cooperate with the Tree Commission.
*(Act 2015-116, §2(6).)*
##### **§ 11-72-7** Duties of the Commission {#sec-11-72-7 omnilex-key=us-al-statutes--title-11--11-72-7}
The commission shall take active steps to do each of the following:
(1) Educate the public as to the economic and aesthetic benefits of trees to the Class 2 municipality and its citizens, both on publicly owned property and privately owned property.
(2) Promote the planting, health, and growth of trees in the Class 2 municipality, with the particular objective of establishing and protecting avenues of live oak trees and other trees deemed suitable by the commission.
(3) Promote the care, feeding, fertilization, and other measures desirable for the health and growth of existing trees in street rights-of-way in the Class 2 municipality.
(4) Protect trees located in street rights-of-way in the Class 2 municipality from damage, removal, lack of sustenance, or any other act or condition which might threaten the health and growth of such trees.
*(Act 2015-116, §2(7).)*
##### **§ 11-72-8** Powers of the Commission; Recordkeeping {#sec-11-72-8 omnilex-key=us-al-statutes--title-11--11-72-8}
(a) The commission may do all of the following:
(1) Adopt bylaws and rules and regulations pursuant to this chapter.
(2) Meet at least once each month and specially as it deems necessary and as provided in the bylaws.
(3) Provide printed forms to be used as shall be necessary to govern its proceedings and to effectuate the provisions of this chapter.
(4) Cause studies to be made as it deems necessary.
(5) Perform its functions directly through its own agents or employees, or may contract with others for specific or general services to carry out its purposes hereunder.
(b) It shall keep a record of its proceedings and a register of all applications made to it and its action thereon, all of which shall be public records.
*(Act 2015-116, §2(8).)*
##### **§ 11-72-9** Application and Permission to Cut, Remove, Trim, Etc.; Emergency Exceptions {#sec-11-72-9 omnilex-key=us-al-statutes--title-11--11-72-9}
(a) Except as provided in subsection (b), no person shall cut, remove, trim, or in any way damage any tree in any street right-of-way in the Class 2 municipality or create any condition injurious to any tree without having first made a written application so to do to the commission and having obtained advance written permission from the commission. Any governmental body or utility may, by filing an application accompanied by a certificate as hereinafter provided, obtain a continuing permission to trim, cut, or remove at any time any trees in any area described in its application for such permission. The form of application shall be as established by the commission, and the commission may delegate to one or more of its members or officers the power to grant such permission in accordance with standards set by it. The commission may in its discretion hold public hearings on any application and may approve part of an application or may approve an application upon terms and conditions as the commission may establish. In considering any application before it, the commission shall base its decision on whether the public and private benefit that will result from granting the application outweighs the public and private benefit that will result from denying it. In the event the mayor of the Class 2 municipality or public utility shall certify to the commissioners that it desires to trim, cut, or remove trees and that it is or may become reasonably necessary to do so to prevent a public hazard or to provide efficient or economical service to the public, then such certificate shall be conclusive evidence for the approval of the application, and the commission shall approve the same, and there shall be no appeal from such approval except as provided in Section 11-72-10.
(b) During a declared emergency or to eliminate an imminent danger to life, health, property, or the environment, or as required for the repair or restoration of service, a utility or utility contractor may cut, remove, or trim trees in any street right-of-way in a Class 2 municipality without having obtained advance permission from the commission.
*(Act 2015-116, §2(9).)*
##### **§ 11-72-10** Appeals {#sec-11-72-10 omnilex-key=us-al-statutes--title-11--11-72-10}
Any person aggrieved by any decision of any officer or agent of the commission to whom its duties are delegated, or of any decision of the commission may appeal to the city council of the Class 2 municipality under any such rules and regulation as the city council may adopt. Any person aggrieved by any decision of the city council may, within 15 days thereafter, appeal to the circuit court of the county in which the Class 2 municipality is located, by filing with the city council a written notice of appeal and making and filing with the clerk of the court a bond approved by the clerk conditioned to pay the costs of the appeal. The hearing and trial in the circuit court shall be de novo. No appeal shall authorize any person to take any action pending appeal, application for which has been denied by the Tree Commission or city council.
*(Act 2015-116, §2(10).)*
##### **§ 11-72-11** Violations {#sec-11-72-11 omnilex-key=us-al-statutes--title-11--11-72-11}
Any person who violates the provisions of this chapter shall be guilty of a Class C misdemeanor.
*(Act 2015-116, §2(11).)*
### **Chapter 73** Low Speed Vehicle Operation on Streets
##### **§ 11-73-1** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Applicability {#sec-11-73-1 omnilex-key=us-al-statutes--title-11--11-73-1}
This chapter shall only apply in Class 2 municipalities.
*(Act 2017-150, §1.)*
##### **§ 11-73-2** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Authorized {#sec-11-73-2 omnilex-key=us-al-statutes--title-11--11-73-2}
The governing body of any Class 2 municipality, by ordinance, may authorize the operation of low-speed vehicles upon the roads and streets of the municipality under limited circumstances and conditions.
*(Act 2017-150, §2.)*
##### **§ 11-73-3** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Determination of Appropriate Roads and Streets {#sec-11-73-3 omnilex-key=us-al-statutes--title-11--11-73-3}
The municipality, by ordinance, may determine the appropriate municipal roads and streets upon which low-speed vehicles may be operated.
*(Act 2017-150, §3.)*
##### **§ 11-73-4** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Conditions {#sec-11-73-4 omnilex-key=us-al-statutes--title-11--11-73-4}
A low-speed vehicle may only be operated on any public roads or streets under the following conditions:
(1) The vehicle may not be operated on a public road or street by any person other than a licensed driver.
(2) The vehicle may be operated only during the hours between sunrise and sunset, unless the municipality has determined that a low-speed vehicle may be operated between sunset and sunrise and the vehicle is equipped with headlights, brake lights, turn signals, and a windshield.
(3) The vehicle is certified as meeting all federal and state laws, rules, and regulations governing safety, emissions, and antitheft standards, including the safety standards provided in 49 C.F.R. Section 571.500.
(4) The vehicle has a 17-digit vehicle identification number which conforms to National Highway Safety and Traffic Administration standards, the manufacturer’s statement of origin states that the vehicle complies with the safety standards for a low-speed vehicle or that the vehicle complies with 49 C.F.R. Section 571.500, and the vehicle has affixed thereto a decal certifying that the vehicle meets these safety standards.
(5) The vehicle has a current license plate issued by the license plate issuing official.
*(Act 2017-150, §4.)*
##### **§ 11-73-5** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Crossing Part of State Highway System {#sec-11-73-5 omnilex-key=us-al-statutes--title-11--11-73-5}
A low-speed vehicle may cross a part of a state highway system only if both of the following conditions are met:
(1) The state highway intersects a municipal street that has been designated for use by low-speed vehicles.
(2) The state Department of Transportation has reviewed and approved the location and design of the crossing and any traffic control devices needed for safety purposes.
*(Act 2017-150, §5.)*
##### **§ 11-73-6** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Definitions {#sec-11-73-6 omnilex-key=us-al-statutes--title-11--11-73-6}
For purposes of this chapter, a low-speed vehicle is defined as a four-wheeled motor vehicle with a top speed not greater than 25 miles per hour, which has a gross vehicle weight rating of less than 3,000 pounds, and is certified as complying with the safety standards of 49 C.F.R. Section 571.500.
*(Act 2017-150, §6.)*
##### **§ 11-73-7** Operation of Low-Speed Vehicles on Roads and Streets of Class 2 Municipalities - Violations {#sec-11-73-7 omnilex-key=us-al-statutes--title-11--11-73-7}
Any Class 2 municipality may impose appropriate penalties for any violation of this chapter or the local ordinance adopted pursuant to this chapter.
*(Act 2017-150, §7.)*
### **Chapter 74** Africatown Redevelopment Corporation
##### **§ 11-74-1** Applicability {#sec-11-74-1 omnilex-key=us-al-statutes--title-11--11-74-1}
This chapter shall apply only to a Class 2 municipality.
*(Act 2021-193, §1.)*
##### **§ 11-74-2** Definitions {#sec-11-74-2 omnilex-key=us-al-statutes--title-11--11-74-2}
For purposes of this chapter, “Africatown Historic District” means all portions of that area designated as the Africatown Historic District on the National Register of Historic Places lying within the corporate limits of a Class 2 municipality.
*(Act 2021-193, §2.)*
##### **§ 11-74-3** Corporation Created; Purpose; Composition; Board of Directors; Certificate of Incorporation; Liability; By-Laws {#sec-11-74-3 omnilex-key=us-al-statutes--title-11--11-74-3}
(a) There is created the Africatown Redevelopment Corporation.
(b) The purpose of the corporation shall be the revitalization of housing, preservation of history, and attraction and development of commerce in the area known as the Africatown Historic District.
(c) All corporate powers of the corporation shall be exercised by or under authority of, and all the business and affairs of the corporation shall be managed under, a board of directors, which shall consist of the following:
(1) Two appointees by the city council member representing the district that, on the date of appointment, includes a majority of the territory within the Africatown Historic District. One appointee shall be an expert in real estate development, and the other appointee shall be an expert in historic preservation.
(2) Two appointees by the mayor of the Class 2 municipality. One appointee shall be an expert in city planning and neighborhood revitalization, and the other appointee shall be an expert in banking and finance.
(3) One appointee by the county commissioner representing the district that, on the date of appointment, includes a majority of the territory within the Africatown Historic District. The appointee shall be an expert in economic development.
(4) One appointee by the member of the Alabama House of Representatives representing the district that, on the date of appointment, includes a majority of the territory within the Africatown Historic District.
(5) One appointee by the member of the Alabama Senate representing the district that, on the date of appointment, includes a majority of the territory within the Africatown Historic District.
(6) One resident of the Africatown Historic District, appointed by The Clotilda Descendants’ Association.
(7) One resident of the Africatown Historic District, appointed by the Africatown Heritage Preservation Foundation.
(d)(1) The appointing authorities shall make their initial appointments by May 12, 2021.
(2) The appointing authorities shall ensure that their appointments reflect the racial, gender, geographic, and economic diversity of the Africatown Historic District.
(e)(1)a. Except as provided in subdivision (2), each member of the board of directors shall serve for a term of two years and shall serve until a successor is appointed.
b. In the event of any vacancy, a successor shall be appointed in the same manner as the seat was previously filled, and the appointee shall serve for the remainder of the term for the seat that was vacated.
(2)a. Each of the following members of the board of directors appointed prior to the first meeting of the board shall serve for an initial term of two years:
1. The member appointed by the mayor of the Class 2 municipality who is an expert in city planning and neighborhood revitalization.
2. The member appointed by the city council member who is an expert in historic preservation.
3. The member appointed by the county commissioner who is an expert in economic development.
4. The member appointed by The Clotilda Descendants’ Association.
5. The member appointed by the member of the Alabama Senate.
b. Each of the following members of the board of directors appointed prior to the first meeting of the board shall serve for an initial term of one year:
1. The member appointed by the mayor of the Class 2 municipality who is an expert in banking and finance.
2. The member appointed by the city council member who is an expert in real estate development.
3. The member appointed by the Africatown Heritage Preservation Foundation.
4. The member appointed by the member of the Alabama House of Representatives.
(f)(1) The board of directors shall have its first meeting at a time and place designated by the member of the Alabama House of Representatives representing the district that includes the Africatown Historic District on April 12, 2021.
(2) At the first meeting, the board shall elect a chair and vice-chair. Thereafter, a new chair and vice-chair shall be elected at the first meeting of each calendar year.
(g) No later than three days after the first meeting of the board, the board shall act as incorporators of the corporation by signing the certificate of incorporation and delivering the same to the Secretary of State for filing. The certificate of incorporation shall state all of the following:
(1) The names of the individuals forming the corporation, and that each of them is a resident of the municipality.
(2) The name of the corporation, which shall be the “Africatown Redevelopment Corporation.”
(3) The period for the duration of the corporation. If the duration is to be perpetual, that fact shall be stated.
(4) The name of the municipality.
(5) The location of the principal office of the corporation, which shall be within the Africatown Historic District.
(6) That the corporation is organized pursuant to this chapter.
(7) Any other matters relating to the corporation that the incorporators may choose to insert and that are not inconsistent with this chapter or the laws of the state.
(h) Upon filing of the certificate of incorporation, the corporate existence shall begin.
(i) Members of the board of directors shall be immune from civil liability for actions taken in the conduct of their duties, and shall not be liable for the obligations of the corporation.
(j) The corporation may adopt, amend, or repeal bylaws to govern the operations of the corporation. The bylaws shall be consistent with this chapter and the laws of the state.
*(Act 2021-193, §3.)*
##### **§ 11-74-4** Powers of Corporation {#sec-11-74-4 omnilex-key=us-al-statutes--title-11--11-74-4}
The corporation may do the following, with or without public hearing, within the Africatown area:
(1) Acquire by purchase, rent, lease agreement, or otherwise, necessary facilities and provide those facilities with necessary equipment, furnishings, landscaping, and related facilities, including parking areas and ramps, roadways, sewers, curbs, and gutters.
(2) Finance, by loan, grant, lease, or otherwise, construct, erect, assemble, purchase, acquire, own, repair, remodel, renovate, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage property, and pay the cost of any such project from the proceeds of bonds, or any other funds of the corporation, or from any contributions or loans by persons, corporations, partnerships, limited or general, or other entities, all of which the corporation may receive and accept and use.
(3) Execute and deliver mortgages and deeds of trust and trust indentures, or either.
(4) Enter into contracts and cooperative agreements with and, directly or indirectly, borrow money or accept grants from the local, state, and federal governments, agencies of the governments, private individuals, corporations, associations, and other organizations as the corporation may deem necessary or convenient to carry out the purposes of this chapter.
(5) Borrow money and issue bonds in evidence thereof, as necessary to perform its duties under this chapter.
(6) Mortgage and pledge any or all of its property or any part or parts thereof, as security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof.
(7) Accept public or private gifts, grants, and donations.
(8) Acquire property by purchase, lease, or gift.
(9) Sell, convey, transfer, lease, or donate any property, franchise, grant, easement, license, or lease or interest therein which it may own and transfer, assign, sell, convey, or donate any right, title, or interest which it may have in any lease, contract, agreement, license, or property.
(10) Employ personnel as may be necessary or convenient to accomplish the purposes of this chapter. The personnel employed by the corporation shall serve at the pleasure of the board of directors. The board of directors shall fix the compensation of the personnel, and the compensation shall be paid from any funds of the corporation. The board of directors shall designate the duties of the personnel.
(11) Perform other acts necessary or incidental to the accomplishment of the purposes of this chapter, and other acts, including, but not limited to, the employment of legal and accounting assistance, whether or not the acts are specifically authorized by this chapter, and provided that the acts are not otherwise prohibited by law.
*(Act 2021-193, §4.)*
##### **§ 11-74-5** Agreements and Obligations; Exemptions from Taxation and Competitive Bid Requirements {#sec-11-74-5 omnilex-key=us-al-statutes--title-11--11-74-5}
(a) The state or any political subdivision shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the state or any political subdivision within the meaning of any constitutional or statutory provision whatsoever.
(b) The corporation and the property and income of the corporation, whether used by it or leased to others; all bonds issued by the corporation, whether used by it or leased to others; all bonds issued by the corporation; the income from those bonds or from any other sources; the interest and other profits from such bonds enuring to and received by the holders thereof; conveyances by and to the corporation; and leases, mortgages, and deeds of trust by and to the corporation shall be exempt from all taxation in the state.
(c) The corporation shall be exempt from all laws of the state requiring competitive bids for contracts to be entered into by municipalities or public corporations.
*(Act 2021-193, §5.)*
### **Chapter 75** Regional Law Enforcement Training Facility Authorities
##### **§ 11-75-1** Establishment of and Participation in a Regional Law Enforcement Training Facility Authority {#sec-11-75-1 omnilex-key=us-al-statutes--title-11--11-75-1}
(a) The municipal council of two or more municipalities, by resolution and with the initial consent of their respective mayors, may establish a regional law enforcement training facility authority for the purpose of constructing, maintaining, and operating a regional law enforcement training facility.
(b) A municipality that desires to join an existing regional law enforcement training facility authority, by resolution and with the initial consent of the mayor, may request participation in the existing regional law enforcement training facility authority. The regional law enforcement training facility authority, by resolution, may approve the requesting municipality’s participation in the authority and, if approved, the municipality shall participate with all rights and obligations of the original municipalities participating in the regional law enforcement training facility authority.
*(Act 2025-375, §1.)*
##### **§ 11-75-2** Powers of Authority {#sec-11-75-2 omnilex-key=us-al-statutes--title-11--11-75-2}
The regional law enforcement training facility authority shall constitute a public body corporate and politic, exercising public and essential governmental functions, and shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter including, but not limited to, all of the following:
(1) To sue and be sued in its own name in civil actions, subject to the limitations provided in Chapter 93, and, except as otherwise provided in this chapter, to defend civil actions against the authority.
(2) To adopt and make use of a corporate seal and to alter the seal at pleasure.
(3) To have perpetual succession.
(4) To make and, from time to time, amend and repeal bylaws, rules, and regulations to carry into effect the powers and purposes of the authority.
(5) To make, enter into, and execute contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted under this section.
(6) To acquire, receive, take, or dispose of, by purchase, sale, gift, lease, devise, or otherwise, and to hold property of every description, real, personal, or mixed, that the authority may deem necessary to accomplish its purposes.
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, renovate, enlarge, improve, maintain, equip, and operate a regional law enforcement training facility. The regional law enforcement training facility may include a shooting range to be used for training.
(8) To sell and issue bonds in order to provide funds for any corporate function, use, or purpose, pursuant to the same rules and regulations established for water, sewer, and fire protection districts as found in Chapter 89.
(9) To borrow money for any of its purposes.
(10) To appoint, employ, contract with, and provide for the compensation of officers, employees, and agents as the purposes of the authority may require, including, but not limited to, engineers, architects, attorneys, management consultants, private construction management firms, fiscal advisers, and in particular, a superintendent to manage the regional law enforcement training facility, and facility personnel as necessary to operate and maintain the facility.
*(Act 2025-375, §2.)*
##### **§ 11-75-3** Board of Directors {#sec-11-75-3 omnilex-key=us-al-statutes--title-11--11-75-3}
(a) The regional law enforcement training facility authority shall be governed by a board of directors composed of the following:
(1) Two members appointed by the municipal council of any municipality having a population of 20,000 or more. One of the members from each municipality may be a member of the municipal council.
(2) One member from any other municipality appointed by the municipal council of each respective municipality. The member may be a member of the municipal council.
(3) The mayor of each municipality.
(b) Except with regard to the mayors, the members of the board of directors of the authority shall serve at the pleasure of the municipal council appointing them.
*(Act 2025-375, §3.)*
##### **§ 11-75-4** Training of Law Enforcement Officers; Superintendent {#sec-11-75-4 omnilex-key=us-al-statutes--title-11--11-75-4}
(a) After a regional law enforcement training facility is operational, the facility shall give first priority to the training of law enforcement officers for each participating municipality.
(b) The superintendent of the facility shall be selected by the members of the board of directors and shall serve at their pleasure. The superintendent, according to written policies and procedures adopted by the members of the board of directors, shall have and exercise control and authority over the law enforcement training facility.
*(Act 2025-375, §4.)*
##### **§ 11-75-5** Status of Authority as Governmental Entity; Participation in Employees’ Retirement System {#sec-11-75-5 omnilex-key=us-al-statutes--title-11--11-75-5}
(a) The regional law enforcement training facility authority is a governmental entity, as defined in Section 11-93-1, and the services the authority performs are declared to be governmental functions.
(b) The employees of the authority may participate in the Employees’ Retirement System of Alabama.
*(Act 2025-375, §5.)*
##### **§ 11-75-6** Funding by Participating Municipalities {#sec-11-75-6 omnilex-key=us-al-statutes--title-11--11-75-6}
For the purpose of attaining the objectives of this chapter, any municipality participating in the regional law enforcement training facility authority, upon agreed terms, and with or without consideration as the authority may determine, may do all of the following:
(1) Lend or donate money to the authority or perform services for the benefit thereof.
(2) Donate, sell, convey, transfer, lease, or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind.
(3) Do any and all other things permissible by law which are necessary or convenient to aid and cooperate with the authority in attaining the objectives of this chapter whether or not specifically authorized in this section.
(4) Pay to the authority the proceeds of any special tax appropriated, apportioned, or allocated to the authority or to or for the benefit of any facility owned or operated by the authority.
*(Act 2025-375, §6.)*
##### **§ 11-75-7** Bonds of the Authority {#sec-11-75-7 omnilex-key=us-al-statutes--title-11--11-75-7}
(a) The property and income of the regional law enforcement training facility authority, all bonds issued by the authority, the income from the bonds, conveyances by or to the authority, and leases, mortgages, and deeds of trust by or to the authority shall be exempt from all state taxes.
(b) The exemption provided in this section shall not apply to taxes levied by any county, municipality, or other political subdivision of the state unless approved by resolution or ordinance adopted by the local governing body.
(c) A county commission, by resolution, may exempt an authority from the payment of any fees, taxes, or costs to the judge of probate in respect of an authority’s incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Act 2025-375, §7.)*
##### **§ 11-75-8** Obligations of the Authority {#sec-11-75-8 omnilex-key=us-al-statutes--title-11--11-75-8}
All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of any municipality nor count against the constitutional debt limit of a participating municipality. This section shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority.
*(Act 2025-375, §8.)*
##### **§ 11-75-9** Dissolution of Authority {#sec-11-75-9 omnilex-key=us-al-statutes--title-11--11-75-9}
At any time when a regional law enforcement training facility authority has no bonds or other obligations outstanding, its board may by affirmative vote of a majority of its members, and with the prior approval of the municipal council of each municipality participating in the authority, adopt a resolution declaring its intent that the authority shall be dissolved. Written notice of intent to dissolve shall be immediately delivered to the municipal council of each municipality participating in the authority. Dissolution shall not take place less than 60 days following the written notice. At the expiration of 60 days and upon the filing for record of a certified copy of the dissolution resolution in the office of the judge of probate of the municipality in which the authority’s certificate of incorporation was filed, the authority shall stand dissolved and, if the authority owned any property at the time of its dissolution, the title to all its property shall pass to and be divided and apportioned among the municipalities included in the authority.
*(Act 2025-375, §9.)*
## **Title 3** Provisions Applicable to Counties and Municipal Corporations
### **Chapter 80** General Provisions
##### **§ 11-80-1** Condemnation of Lands for Public Building Sites, Roads, Streets, Construction Materials, Etc {#sec-11-80-1 omnilex-key=us-al-statutes--title-11--11-80-1}
(a) Counties and municipal corporations may condemn lands for public building sites or additions thereto, or for enlargements of sites already owned, or for public roads or streets or alleys, or for material for the construction of public roads or streets or for any other public use.
(b) Notwithstanding any other provision of law, a municipality or county may not condemn property for the purposes of private retail, office, commercial, industrial, or residential development; primarily for enhancement of tax revenue; for transfer to a person, nongovernmental entity, public-private partnership, corporation, or other business entity; or for the primary purpose of acquiring a mortgage or deed of trust. Provided, however, the provisions of this subsection shall not apply to the use of eminent domain by any municipality, housing authority, or other public entity based upon a finding of blight in an area covered by any redevelopment plan or urban renewal plan pursuant to Chapters 2 and 3 of Title 24, provided the purpose of the use of eminent domain pursuant to Chapters 2 and 3 of Title 24 is not primarily to acquire a mortgage or deed of trust, but just compensation, in all cases, shall continue to be first made to the owner. Nothing in this article shall limit the exercise of eminent domain by or for the benefit of public utilities or other entities engaged in the generation, transmission, or distribution of telephone, gas, electricity, water, sewer, or other utility products or services. Nothing in this article shall be interpreted to prohibit a municipal or county governing body from exercising the power of eminent domain to condemn real property, irrespective of whether the property may be subject to a mortgage or deed of trust, for the purpose of constructing, maintaining, or operating streets and roadways, government buildings, or park and recreation facilities.
(c) Property condemned pursuant to the authorizations as described in subsections (a) and (b), if not ever used for the purpose or purposes for which it was condemned or for some other public use, that is subsequently determined to be sold first, shall be offered for sale to the person or persons from whom the property was condemned, or his or her known or ascertainable heirs or assigns, at the price which was paid for the property, less such amount, if any, as the person or persons from whom the property was condemned shall show by good and sufficient documentation to be the amount of income and transaction taxes, if any, actually paid in connection therewith, and if the offer shall not be accepted within 90 days from the date it is made, the property may be sold to any other person but only at public sale after legal notice is given.
*(Code 1907, §145; Code 1923, §223; Code 1940, T. 12, §197; Act 2005-313, 1st Sp. Sess., p. 643, §2; Act 2015-39, §1.)*
##### **§ 11-80-2** Relocation Assistance for Persons Displaced by Acquisition of Real Property Under Local Land Acquisition Programs {#sec-11-80-2 omnilex-key=us-al-statutes--title-11--11-80-2}
(a) The incorporated municipalities and counties of this state are hereby empowered to provide relocation assistance to persons displaced by the acquisition of real property by local land acquisition programs and to comply with the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970, Public Law 91-646, Title 2, §§207 and 210, 84 Stat. 1898 and 1899, 42 USCA, §§4627 and 4630, and the requirements and regulations thereunder. Such incorporated municipalities and counties are empowered to appropriate public funds to provide such relocation assistance and to comply with the requirements of such act and the requirements and regulations thereunder in connection with projects financed in whole or in part by federal funds. The incorporated municipalities and counties of this state may exercise the authority granted hereunder by enactment of appropriate resolutions or ordinances to establish criteria for providing such relocation assistance.
(b) Nothing contained in this section shall be construed as creating, in any condemnation proceedings brought under the power of eminent domain, any element of damages not in existence on March 10, 1975.
*(Acts 1975, 2nd Ex. Sess., No. 77, p. 205.)*
##### **§ 11-80-3** Contracts Between Counties and Municipalities as to Use and Occupation, Etc., of Public Buildings Located in Municipalities {#sec-11-80-3 omnilex-key=us-al-statutes--title-11--11-80-3}
Municipalities and counties may contract with each other for the ownership or use and occupation of parts of city halls, city jails, county courthouses, and county jails or other public buildings held and owned by such municipalities or counties located within such municipalities, and any such contract shall be binding upon both the municipality and county until revoked by the joint agreement and action of both parties to such contract. Any and all easements acquired under this section shall be in every respect binding between the parties.
*(Code 1923, §2317; Code 1940, T. 37, §471.)*
##### **§ 11-80-4** Appropriations for Municipal Bands, Etc {#sec-11-80-4 omnilex-key=us-al-statutes--title-11--11-80-4}
The counties, cities, and towns in the State of Alabama may appropriate moneys out of their general funds for the maintenance and support of municipal bands and other musical organizations for public entertainment.
*(Acts 1919, No. 751, p. 1113; Code 1923, §2056; Code 1940, T. 37, §473.)*
##### **§ 11-80-4.1** Appropriations and Contributions to Community Action Agencies {#sec-11-80-4.1 omnilex-key=us-al-statutes--title-11--11-80-4.1}
(a) County and municipal governments in Alabama are hereby authorized to appropriate from the general fund of the county or municipality, or from federal revenue sharing funds of the county or municipality, funds to community action agencies authorized to administer grants and contracts in their areas. These funds may be used to match grant funds and contract funds from the federal government, state government, planning and development commissions, and other public and private organizations where local matching funds are required for the delivery of social services.
(b) County and municipal governments in Alabama are authorized to contribute to community action agencies in-kind services such as space, equipment, personnel and other resources which can be fairly evaluated as matching funds for the same purposes as stated in subsection (a) of this section.
(c) Community action agencies eligible to receive county and municipal funds may be organized as public agencies or public non-profit or private non-profit corporations as authorized by the local government jurisdictions.
*(Acts 1980, No. 80-767, p. 1597.)*
##### **§ 11-80-5** Planning, Establishment, Administration, Etc., of Recreational, Social and Cultural Facilities, Services, Etc., for Senior Citizens {#sec-11-80-5 omnilex-key=us-al-statutes--title-11--11-80-5}
The counties and municipalities of this state are hereby authorized to plan, establish, and furnish recreational, social and cultural facilities, services and programs, including transportation services and programs, especially for senior citizens within the state, and to make the availability of benefits through use of such facilities, services or programs depend upon uniform nondiscriminatory eligibility requirements. In availing itself of this authority any county or municipality within the state may agree to and abide by the conditions of any grant from any agency of the state or the United States government pertaining to such facilities, services, and programs. Such services may be administered by and through such instrumentality or instrumentalities as may be designated for that purpose by the governing body of such county or municipality and may also be furnished by each such entity or on a multijurisdictional basis through mutual agreements between two or more such entities and also by contract with such public or private agencies as may be determined by such governing bodies as necessary or desirable.
*(Acts 1976, No. 399, p. 503.)*
##### **§ 11-80-7** Authority of Municipalities, Counties, Public Corporations, Boards of Education, Etc., with Respect to Letters of Credit as Security for Bonds, Notes, Etc {#sec-11-80-7 omnilex-key=us-al-statutes--title-11--11-80-7}
Any municipality, county, public corporation, city or county board of education, the State Board of Education, or any other entity organized pursuant to authorization, determination finding or other action by any municipality or municipalities, or county or counties, or the governing body of any one or more thereof, or any public officer or officers of the State of Alabama, is hereby authorized:
(1) To acquire a letter or letters of credit as security for any bonds, notes, warrants, or other evidences of indebtedness or securities;
(2) To pledge such letter or letters for the benefit of such bonds, notes, warrants, or other evidences of indebtedness or securities;
(3) To pay the premium or premiums on such letter or letters from the proceeds of any such bonds, notes, warrants, or other evidences of indebtedness or securities;
(4) To enter into such agreements, contracts, and indentures with respect to such letter or letters as the governing body of the purchaser of the letter or letters shall deem necessary or desirable; and
(5) To grant security with respect to such letter or letters.
*(Acts 1982, No. 82-501, p. 831.)*
##### **§ 11-80-8.1** Enactment of Ordinances, Resolutions, Etc., Controlling Rent Charged for Leasing Private Property Prohibited {#sec-11-80-8.1 omnilex-key=us-al-statutes--title-11--11-80-8.1}
(a) As used in this section, “local governmental unit” means any political subdivision of this state including, but not limited to, a county, city, town, or municipality, if the political subdivision provides local government services in a geographically limited area of this state as its primary purpose and it has the power to act primarily on behalf of that area.
(b) A local governmental unit shall not enact, maintain, or enforce an ordinance, resolution, or rule that would have the effect of controlling the amount of rent charged for leasing private property. This section does not impair the right of any local governmental unit to manage and control property in which the local governmental unit has a property interest.
*(Acts 1993, No. 93-421, p. 707, §§1, 2.)*
##### **§ 11-80-9** Assistance to Governing Body of Municipality or County When Municipality or County Declared Disaster Area; Procedure; Mutual Aid Agreements {#sec-11-80-9 omnilex-key=us-al-statutes--title-11--11-80-9}
(a) The governing body of each incorporated municipality and the county commission of each county of the state is hereby authorized to provide assistance, by means of gift or loan, to the governing body of any other municipality or county located within the state when such county or municipality has been declared a disaster area by the Governor of the State of Alabama or by the President of the United States. Such assistance may be in the form of funds not otherwise appropriated, services, or other aid as determined by the governing body of the municipality or county offering assistance. The terms upon which assistance is offered should be mutually agreed upon, reduced to writing, and approved by the governing bodies of both the assisting county or municipality and the recipient county or municipality.
(b) Nothing herein shall restrict or affect in any manner mutual aid agreements heretofore or hereafter entered into by municipalities and/or counties for the purpose of disaster assistance.
*(Acts 1991, No. 91-209, p. 391, §§1, 2.)*
##### **§ 11-80-10** Licensing of Junkyards Located Within and Outside Police Jurisdictions by Municipalities and Counties {#sec-11-80-10 omnilex-key=us-al-statutes--title-11--11-80-10}
(a) As used in this section, the following words and phrases shall have the following meanings unless the context clearly indicates otherwise:
(1) JUNKYARD. An establishment or place of business which is maintained, operated, or used for storing, keeping, buying, or selling old or scrap copper, brass, rope, rags, batteries, paper trash, rubber debris, waste or junked, dismantled or wrecked automobiles, or parts thereof, iron, steel, and other old or scrap ferrous or nonferrous material or for the maintenance or operation of an automobile graveyard.
(2) SCRAP PROCESSOR. Any person who is engaged, from a fixed location or otherwise, in the business of paying compensation for ferrous or nonferrous metals that have served their original economic purpose, who is engaged in the business of performing the manufacturing process by which ferrous metals or nonferrous metals, or other recyclable materials, are converted into raw material products consisting of prepared grades and having an existing or potential economic value.
(b) Any incorporated municipality may license a junkyard located within its police jurisdiction to the same extent as if the junkyard was located within its corporate limits and any county may license junkyards located outside the police jurisdiction of any municipality in the county to the same extent.
(c) Any incorporated municipality and any county shall have the authority, by adoption of local ordinance or regulation, to establish criteria to issue or revoke licenses as provided herein.
(d) Nothing in this section shall be deemed to supersede or alter the authority of the State of Alabama, and any of its agencies and departments, to regulate junkyards or issue permits relating to junkyards.
*(Acts 1995, No. 95-558, p. 1167, §§1-4.)*
##### **§ 11-80-11** Authority Reserved to Attorney General to Bring or Settle Certain Lawsuits Concerning Firearms, Ammunition, Etc {#sec-11-80-11 omnilex-key=us-al-statutes--title-11--11-80-11}
The authority to bring or settle any lawsuit in which the state has an exclusive interest or right to recover against any firearm or ammunition manufacturer, trade association, or dealer, and the authority to bring or settle any lawsuit on behalf of any governmental unit created by or pursuant to an act of the Legislature or the Constitution of Alabama of 2022, or any department, agency, or authority thereof, for damages, abatement, injunctive relief, or other equitable relief resulting from or relating to the design, manufacture, marketing, or lawful sale of firearms or ammunition, or both, shall be reserved exclusively to the Attorney General, by and with the consent of the Governor. This section shall not prohibit a county or municipal corporation from bringing an action against a firearms or ammunition manufacturer or dealer for breach of contract or warranty as to firearms or ammunition purchased by the political subdivision or local governmental authority.
*(Act 2000-762, p. 1744, §1; Act 2013-283, p. 938, §1.)*
##### **§ 11-80-12** Retention of Judicially Prescribed Method of Election and Number of Serving Members for Boards of Education, County Commissions, or Municipal Governing Bodies {#sec-11-80-12 omnilex-key=us-al-statutes--title-11--11-80-12}
Notwithstanding any other provision of law to the contrary, any board of education, county commission, or municipal governing body whose currently serving members have been elected by a method of election and a specific number of seats prescribed by a federal court shall retain that manner of election and composition until such time as the method of election or number of seats is changed in accordance with general or local law. This section shall not apply in any county where a federal court has overturned the previous order concerning the manner of election and the number of members of a county commission and shall not apply in any county where there is currently pending litigation, or appeals relating thereto, challenging previous court orders or consent orders concerning the manner of elections or the number of members or districts of a county commission.
*(Act 2006-252, p. 459, §1.)*
##### **§ 11-80-13** Cemetery Rehabilitation Authorities {#sec-11-80-13 omnilex-key=us-al-statutes--title-11--11-80-13}
(a)(1) County commissions may establish a county cemetery rehabilitation authority, hereinafter authority, to designate, register, and maintain neglected cemeteries lying outside any municipal area within the county.
(2) When a county commission establishes an authority, it shall appoint a board to oversee the duties given to the authority. Each board member shall serve at the pleasure of the county commission.
(3) City governments have the same power to establish a city cemetery rehabilitation authority and a board to oversee the registration and maintenance of neglected cemeteries within their municipal limits.
(4) Governments are encouraged to include on their board representatives of genealogical and historical societies and other citizens who have shown an interest in preserving cemeteries.
(b) In the absence of action by the appropriate governing body, any citizen may submit, in writing, a request to the appropriate governing body that the governing body establish a cemetery rehabilitation authority, and such request shall be spread upon the minutes of the next meeting of the appropriate governing body following receipt of such request.
(c) A cemetery rehabilitation authority created herein may accept the assistance of private citizens as well as money donated by private citizens or family, in order to afford the upkeep and restoration of cemeteries designated as neglected. A trust fund may be established to supply continuing needs over a long period of time.
(d) The cemetery authority may work with private landowners to determine the frequency of access, either for specified work days or for visits by family to restore and or maintain the graves, or by genealogical researchers.
(e) The county commission of each county may provide for the identification, cataloguing, or recording of neglected cemeteries. A copy of all surveys shall be forwarded to the Alabama Historical Commission for establishment of a statewide inventory. If the county or city has a cemetery rehabilitation authority, this duty may be delegated to that authority.
(f) The authority or the county commissions of each county shall provide for the registration, with the Historical Commission, of each neglected cemetery within the county, unless the cemetery has been previously registered. The registration shall take place within one year of notification being made to the board by any interested party of the existence of the neglected cemetery.
(g) No county or municipality nor any person under the supervision or direction of the county or municipality, providing good faith assistance in securing or maintaining a cemetery under this section, may be subject to civil liabilities or penalties of any type.
*(Act 2007-408, p. 836, §2.)*
##### **§ 11-80-14** Deaf or Blind Child Area Signs {#sec-11-80-14 omnilex-key=us-al-statutes--title-11--11-80-14}
(a) Upon request, a city or county may install a deaf or blind child area sign to warn drivers in the area that a deaf or blind child resides on a residential road or street.
(b) The cost of the sign may be paid by the requesting party, a private individual, or a neighborhood association.
(c) The county or city shall review annually the placement of a sign that has been installed pursuant to this section to ensure that the placement is still applicable.
*(Act 2011-561, p. 1068, §1.)*
##### **§ 11-80-15** Regulation of Fertilizer {#sec-11-80-15 omnilex-key=us-al-statutes--title-11--11-80-15}
(a) A county commission or municipal governing body may not adopt or continue in effect any ordinance, rule, or resolution regulating the registration, packaging, labeling, sale, distribution, transportation, storage, or application of fertilizers. The entire subject matter of the foregoing shall be subject to the jurisdiction of the Department of Agriculture and Industries.
(b) For purposes of this section, the term fertilizer means any substance containing one or more recognized plant nutrients which is used for its plant nutrient content and which is designed for use or claimed to have value in promoting plant growth, except unmanipulated animal and vegetable manures, marl, lime, limestone, wood ashes, boiler ashes produced by the pulp and paper or the electric utility industry, and similar products exempted by regulation of the Commissioner of Agriculture and Industries.
(c) This section shall not affect, supersede, or override any zoning ordinance or business license enacted by a county or municipal government, except to the extent the zoning ordinance or business license purports to regulate fertilizer as prohibited by this section, which provisions are null and void.
(d) A political subdivision of the state is not subject to the requirements of subsections (a), (b), and (c) if the political subdivision’s National Pollutant Discharge Elimination System permit or other Alabama Department of Environmental Management administrative action requires, based on federal or state requirements for impaired water bodies, a stricter standard than this section imposes. The political subdivision must demonstrate to the satisfaction of Alabama Department of Environmental Management that the discharges from the municipal separate storm sewer system (MS4) within its jurisdiction have the potential to impact an impaired water body and whether the MS4 is subject to an applicable total maximum daily load (TMDL) requirement for the impaired water body. The political subdivision must document in the public record the rationale supporting the exemption provided in this section, including all documents utilized to support the exemption. Any exemption pursuant to this section shall lapse upon restoration of water quality as documented in the Alabama’s Water Quality Report to Congress and there are no federal or state requirements requiring a stricter standard than this section imposes. Upon lapse of the exemption, subsections (a), (b), and (c) shall apply.
*(Act 2011-624, p. 1475, §1.)*
##### **§ 11-80-16** Prohibition Against Requiring Employers to Grant or Compensate for Vacation or Leave Not Required by State or Federal Law {#sec-11-80-16 omnilex-key=us-al-statutes--title-11--11-80-16}
(a) For purposes of this section, the following words have the following meanings:
(1) EMPLOYEE. An individual employed in this state by an employer.
(2) EMPLOYER. A person engaging in any activity, enterprise, or business in this state employing one or more employees.
(b) A county, municipality, or any political subdivision in this state may not enact or administer an ordinance, policy, rule, or other mandate requiring an employer to provide any employee or any class of employees with vacation or other forms of leave from employment, paid or unpaid, that is not required by state or federal law, and may not require an employer to compensate an employee for any vacation or other forms of leave for which state or federal law does not require the employee to be compensated.
(c) This section does not apply to any mandate enacted by a county, municipality, or political subdivision of this state relating to vacation or other forms of leave for an employee or class of employees of the political subdivision.
(d) Any ordinance, policy, rule, or other mandate of a political subdivision of this state that is inconsistent with this section is void.
*(Act 2014-173, p. 500, §§1-3.)*
##### **§ 11-80-16.1** Living Donor Leave for Certain County or Municipal Employees {#sec-11-80-16.1 omnilex-key=us-al-statutes--title-11--11-80-16.1}
(a) For purposes of this section, the following terms have the following meanings:
(1) EMPLOYEE. An individual who is permanently employed by a county or municipality.
(2) EMPLOYER. Any county or municipality of the state.
(b) An employee who has at least one year of service with the employer may be granted living donor leave with pay for donating an organ or bone marrow, upon fulfillment of both of the following conditions:
(1) Submission to the employee’s immediate supervisor of a written request for leave, accompanied by written verification from the physician who will be performing the medical procedure.
(2) A recommendation for the leave, based on the submission in subdivision (1), by the supervisor.
(3) Approval of the appointing authority or the executive head of the employing department, agency, or division of the employer.
(c) The leave granted may be for no more than 30 days in the case of an organ donation and seven days in the case of a bone marrow donation.
(d) Living donor leave shall be a separate classification of leave which shall not apply to or exhaust an employee’s accrued or available leave under any other leave classification pursuant to rule or policy of the employer.
(e) An employer may not threaten, restrain, coerce, discipline, discharge, terminate, or otherwise retaliate or discriminate against an employee for requesting or using a leave of absence as provided by this section.
*(Act 2026-559, §3.)*
##### **§ 11-80-17** Alarm Systems; Regulation of Installation and Use of Battery-Charged Fences {#sec-11-80-17 omnilex-key=us-al-statutes--title-11--11-80-17}
(a) For purposes of this section, a “battery-charged fence” means a new or existing alarm system and ancillary components or equipment attached to the system that includes a fence and an energizer powered by a commercial storage battery which produces a short electric pulsed charge upon contact with the fence and battery charging device used exclusively to charge the battery and meets all of the following requirements:
(1) Interfaces with a monitored alarm device in a manner that enables the alarm system to transmit a signal intended to summon the business or law enforcement, or both, in response to an intrusion or burglary.
(2) Is located on property that is not designated by a municipality or county exclusively for residential use.
(3) Has an energizer that is driven by a commercial storage battery that is not more than 12 volts of direct current.
(4) Produces an electric charge on contact that does not exceed energizer characteristics established for electric fence energizers by the current standards of the International Electrotechnical Commission.
(5) Is surrounded by a nonelectric perimeter fence or wall that is not less than five feet in height.
(6) Is at least 10 feet in height.
(7) Is at least two feet higher than the height of the non-electric perimeter fence or wall.
(8) Is marked with conspicuous warning signs that are located on the battery charged fence at not more than 30-foot intervals and that read: “WARNING-ELECTRIC FENCE.”
(b) Notwithstanding any other law, a municipality or county may not adopt or enforce an ordinance, resolution, order, or rule that does any of the following:
(1) Requires a permit or fee for the installation or use of a battery-charged fence that is in addition to any fee or alarm system permit required for any other alarm system by the municipality or county. No additional permit or fee shall be required for the battery-charged fence.
(2) Imposes installation or operational requirements for the battery-charged fence that are inconsistent with the requirements and standards described in this section.
(3) Prohibits the installation or use of a battery-charged fence.
(c) This section does not apply to a battery-charged fence used for agricultural or animal containment purposes.
(d) This section shall not be construed as prohibiting a municipality from charging a business license as provided in Article 2 of Chapter 51 of Title 11 for any person or business installing battery-charged fences.
*(Act 2021-380, §1.)*
##### **§ 11-80-18** Restrictions on Certain Lawful Operations of Motor Fuel Retailers Prohibited {#sec-11-80-18 omnilex-key=us-al-statutes--title-11--11-80-18}
(a) For the purposes of this section, the following terms have the following meanings:
(1) GOVERNMENTAL ENTITY. The state or any political subdivision thereof, or any executive or legislative department, unit, agency, board, commission, or authority of the state, or any political subdivision thereof, or any public corporation, authority, agency, board, commission, or other governmental entity controlled by the state or by any political subdivision of the state.
(2) MOTOR FUEL. All grades of gasoline, including gasohol or any gasoline blend, any components used in any gasoline blend, ethanol, number diesel, or any diesel blend, biodiesel, kerosene, all aviation fuels, and any other fuel dispensed from an on-site tank system for the purpose of fueling automobiles.
(3) MOTOR FUEL RETAILER. A station or retail establishment that sells motor fuel.
(4) RELATED TRANSPORTATION INFRASTRUCTURE. Storage tanks, pipelines, or any related equipment that is necessary to deliver motor fuel or motor fuel components for processing and ultimate delivery of motor fuel to a motor fuel retailer.
(b) Except as otherwise provided in this section, and except as otherwise provided by Chapter 17 of Title 40, a governmental entity shall not adopt rules, regulations, requirements, ordinances, or resolutions that prohibit or restrict the lawful operation of motor fuel retailers or related transportation infrastructure otherwise complying with state and federal law based solely on the type of motor fuel sold, stored, processed, or delivered.
(c) Nothing in this section shall be construed as affecting a governmental entity’s authority to do any of the following:
(1) Exercise police powers for public safety, including, but not limited to, review and approval of building permits or enforcement of building, fire, or other public safety codes.
(2) Exercise police powers for public safety during a state of emergency or natural disaster.
(3) Restrict the location of fuel retailers and related transportation infrastructure through zoning regulations, provided the restriction is not based solely on the type of motor fuel utilized by the motor fuel retailer.
(4) License or permit a motor fuel retailer or related transportation infrastructure or regulate the use of rights-of-way by a motor fuel retailer or related transportation infrastructure; provided, however, that no license or permit may be denied based solely on the type of motor fuel utilized by the motor fuel retailer or related transportation infrastructure.
*(Act 2022-354, §1.)*
##### **§ 11-80-19** Virtual or Electronic Methods for the Posting of Certain Public Notices Required by Law {#sec-11-80-19 omnilex-key=us-al-statutes--title-11--11-80-19}
Any notice required to be posted by a county or a municipality at a county courthouse or other county or municipal building or office, pursuant to this title, shall may instead be posted in both of the following ways, provided that there is also compliance with any other physical notice or publication requirement of the applicable law:
(1) On any official website maintained by a county or a municipality, provided that the website is always accessible for viewing by the public, except for limited periods for necessary maintenance or temporary interruptions due to circumstances outside the control of the county or the municipality.
(2) On an electronic display within the county courthouse, city hall, or other building containing county or municipal offices, in an area frequented by the public, such as a lobby, principal point of entry, or main corridor.
*(Act 2023-529, §1.)*
##### **§ 11-80-20** Discharge of County or Municipal Employees for Reporting Violation of Law Prohibited {#sec-11-80-20 omnilex-key=us-al-statutes--title-11--11-80-20}
(a) For purposes of this section, “employee” means an employee of a county, municipality, or other local political subdivision of the state, and “public body” means an agency, board, commission, council, or department of the state, a county, a municipality, or other political subdivision of the state.
(b) The supervisor of an employee may not discharge, demote, transfer, or otherwise take an adverse employment action against the employee in retaliation for reporting to a public body, under oath or in the form of an affidavit, a violation of a law, a regulation, or a rule.
*(Act 2024-112, §1.)*
##### **§ 11-80-21** (Effective January 1, 2027) Political Subdivisions Authorized to Give Employment Preference to Veterans and Spouses of Veterans and Active Duty Service Members {#sec-11-80-21 omnilex-key=us-al-statutes--title-11--11-80-21}
(a) For purposes of this section, the following terms have the following meanings:
(1) ACTIVE DUTY SERVICE MEMBER. An individual that is on active duty as a member of the National Guard or a reserve or active component of the Armed Forces of the United States.
(2) ELIGIBLE VETERAN. An individual who has ever served in the National Guard or a reserve or active component of the Armed Forces of the United States and has been honorably discharged.
(b) A county, municipality, or other political subdivision of the state may grant a preference in hiring and promotion to any of the following individuals:
(1) An eligible veteran.
(2) The spouse of an eligible veteran.
(3) The spouse of an active duty service member.
(4) The surviving spouse of a deceased eligible veteran.
(c) A political subdivision that grants preference in hiring or promotion pursuant to subsection (b) may adopt an ordinance providing for the implementation of the preference.
*(Act 2026-574, §2.)*
### **Chapter 81** Municipal and County Bonds
#### **Article 1** General Provisions
##### **§ 11-81-1** Execution of Mortgages to Secure Bonds and Indebtedness Incurred in Purchase, Construction, Extension, Etc., of School Buildings or Waterworks, Gas, Light, Etc., Plants {#sec-11-81-1 omnilex-key=us-al-statutes--title-11--11-81-1}
Any city or town of the State of Alabama that may hereafter construct or purchase school buildings, a waterworks plant, gas plant, electric light plant, or other light and power plant or extend or enlarge a waterworks plant or light and power plant then owned by such city or town, may, through its mayor and aldermen or other governing body execute a mortgage on the school buildings, the waterworks plant or light and power plant purchased or constructed by such city or town to secure the bonds and indebtedness and interest on such bonds and indebtedness created in the purchase, construction, extension or enlargement of such school buildings, waterworks plant or light and power plant, such mortgage to be signed by the mayor and countersigned by the clerk of said city or town or by such other person or persons as the mayor and aldermen or other governing body of such city or town may direct by appropriate resolution. If, in the judgment of said mayor and aldermen or other governing body of said city or town, it is desirable that such mortgage be executed before such school building or plant is constructed and if it is so executed for the purpose of providing money to construct such building or plant, the fact that such mortgage is executed before the construction of such building or plant shall not render such mortgage invalid.
*(Code 1907, §1459; Code 1923, §2315; Code 1940, T. 37, §251.)*
##### **§ 11-81-2** Execution of Mortgages or Deeds of Trust Upon Property Acquired, Etc., with Proceeds of Bond Issues; Recordation of Same {#sec-11-81-2 omnilex-key=us-al-statutes--title-11--11-81-2}
Any municipal corporation in this state shall have power and authority to execute a mortgage or deed of trust upon the property acquired or to be acquired with the proceeds of a bond issue authorized in this chapter, and such mortgage or deed of trust shall be admitted to record in the office of the probate judge of any county in this state without the payment of any tax upon the debts secured thereby or any other fee or charge, except the costs of recording the instrument at the rate fixed by law.
*(Acts 1909, No. 195, p. 188; Code 1923, §2268; Code 1940, T. 37, §252.)*
##### **§ 11-81-3** Issuance of Refunding or Funding Bonds as to Adjustment, Etc., of Indebtedness {#sec-11-81-3 omnilex-key=us-al-statutes--title-11--11-81-3}
The governing body of any county, city or town, or municipal authority organized under Article 9, Chapter 47 of this title which shall authorize the issuance of refunding or funding bonds may exercise all powers deemed necessary by the governing body for the execution and fulfillment of any plan or agreement for the settlement, adjustment, refunding, or funding of the indebtedness of the county, city or town, or municipal authority organized under Article 9, Chapter 47 of this title not inconsistent with the provisions of law relating to the issuance of refunding or funding bonds. Without limiting the generality of any of the foregoing powers, it is expressly declared that the governing body shall have the power to take all steps and proceedings contemplated or permitted by any act of the Congress of the United States relating to the readjustment of municipal indebtedness, and the State of Alabama hereby gives its assent thereto and hereby authorizes each county, city or town, or municipal authority organized under Article 9, Chapter 47 of this title in the state to proceed under the provisions of the acts for the readjustment of its debts.
*(Acts 1935, No. 197, p. 586; Code 1940, T. 37, §253; Acts 1976, No. 107, p. 102; Act 2001-959, 3rd Sp. Sess., p. 839, §1.)*
##### **§ 11-81-4** Issuance of Refunding Interest-Bearing Certificates of Indebtedness, Warrants or Notes by Municipalities; Pledge of Tax, Revenues, Etc., for Payment of Principal and Interest on Same {#sec-11-81-4 omnilex-key=us-al-statutes--title-11--11-81-4}
The governing body of any municipality in this state is hereby authorized to issue, without an election, refunding interest-bearing certificates of indebtedness or refunding interest-bearing warrants or refunding interest-bearing notes maturing at such time or times as the governing body may determine, not exceeding 30 years from their respective dates, for the purpose of funding or refunding outstanding certificates of indebtedness or warrants or notes of such municipality or any outstanding revenue bonds of such municipality issued under the provisions of Article 5 of Chapter 81 of Title 11 as amended, or predecessor statute or any combination thereof, whether the same are due at the time of such funding or refunding or at a later date, in an aggregate principal amount not exceeding the sum of (1) the outstanding principal of such outstanding certificates, warrants, notes, or revenue bonds, (2) the interest accrued and unpaid thereon plus the interest to mature thereon until the date on which they are to be redeemed or paid and (3) the amount of any redemption premium to be paid as a condition to their redemption prior to their respective maturities, or for the purpose of refunding or discharging any judgment or judgments based upon such obligations, and the governing body of any such municipality may pledge to the payment of the principal of and interest on said refunding certificates of indebtedness or refunding warrants or refunding notes any tax or license or revenues which the municipality may then be authorized to pledge to the payment of bonded or other indebtedness.
*(Acts 1935, No. 197, p. 586; Code 1940, T. 37, §253; Acts 1976, No. 107, p. 102; Acts 1979, No. 79-183, p. 294.)*
##### **§ 11-81-5** Places of Payment {#sec-11-81-5 omnilex-key=us-al-statutes--title-11--11-81-5}
All bonds may be made payable at such place or places within or without the State of Alabama as the proper governing body may designate.
*(Acts 1927, No. 478, p. 534; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §254.)*
##### **§ 11-81-6** Maturity and Payment - Generally {#sec-11-81-6 omnilex-key=us-al-statutes--title-11--11-81-6}
The principal of all bonds issued under this chapter, except bonds issued under Division 1 of Article 4 of this chapter, shall be payable as provided in this section.
(1) The principal of all such bonds, other than revenue bonds as defined in subdivision (2) of this section, shall be payable on such date or dates as shall be specified in the ordinance or resolution providing for their issuance; provided, that
a. The principal of each such bond shall be payable not later than 30 years after its date; and
b. If such bonds shall be issued for the purpose of acquiring property or making improvements, then all the principal thereof shall be payable within the period of usefulness of the property or improvement for which the bonds are issued as such period shall be estimated under the provisions of Section 11-81-8;
(2) The principal of all revenue bonds (which are hereby defined as bonds payable solely out of revenues to be derived from a specified system or systems or other property or improvements) issued under the provisions of this chapter shall be payable on such date or dates as shall be specified in the ordinance or resolution providing for their issuance; provided that
a. The principal of each such revenue bond shall be payable on a date not later than 50 years after its date; and
b. If such revenue bonds shall be issued for the purpose of acquiring property or making improvements, then all the principal thereof shall be payable within the period of usefulness of the property or improvement for which such revenue bonds are issued as such period shall be estimated under the provisions of Section 11-81-8.
(3) Refunding bonds issued under this chapter that are revenue bonds as defined in subdivision (2) of this section shall be subject to the provisions of subdivision (2) of this section. All other refunding bonds issued under this chapter (except those issued under Division 1 of Article 4 of this chapter) shall be subject to the provisions of subdivision (1) of this section.
*(Acts 1927, No. 478, p. 534; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 70, p. 60; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §255; Acts 1945, No. 398, p. 617; Acts 1953, No. 846, p. 1137; Acts 1959, No. 23, p. 427; Acts 1967, No. 745, p. 1598; Acts 1980, No. 80-464, p. 726.)*
##### **§ 11-81-7** Maturity and Payment - Bonds Issued and Sold in Series {#sec-11-81-7 omnilex-key=us-al-statutes--title-11--11-81-7}
In any case where general obligation bonds of a county or a municipality have heretofore been or may hereafter be authorized at an election held pursuant to the provisions of Article 2 or 3 of this chapter, as amended, and are issued and sold in series rather than as an entirety, it shall not be necessary for each series of such bonds to mature or be payable in the manner required by the applicable provisions of Section 11-81-6, as amended, so long as all such bonds so authorized taken together mature or are payable in the manner provided by the applicable provisions of said Section 11-81-6.
Without in any way limiting the generality of the foregoing, it is hereby declared that in cases where any such bonds are so authorized at an election and are issued and sold in series and not as an entirety, it shall not be necessary for the bonds of each such series to be payable in annual installments or for the first installment of principal of the bonds of any such series to be payable not later than three years after the date of the bonds of such series, and the largest installment of principal coming due in any successive 12-month period on the bonds of any such series may be more than two times as great as the smallest installment of principal coming due in any prior successive 12-month period on the bonds of such series.
*(Acts 1957, No. 724, p. 1129.)*
##### **§ 11-81-8** Estimate as to Period of Usefulness of Improvement or Property for Which Bonds Issued {#sec-11-81-8 omnilex-key=us-al-statutes--title-11--11-81-8}
The governing body shall estimate the period of usefulness of the improvement or property for which the bonds are issued, and such estimate of the governing body shall be conclusive.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §256.)*
##### **§ 11-81-9** Form; Appointment of Registrar and Provision for Registration and Transfer {#sec-11-81-9 omnilex-key=us-al-statutes--title-11--11-81-9}
Bonds issued under this chapter may be issued either in registered or coupon form. If they are coupon bonds, they may be made registerable either as to principal or as to both principal and interest. The governing body may appoint a bank or trust company within or without the State of Alabama as registrar and provide for the registration of registerable bonds and the transfer of registered bonds by such registrar.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §257.)*
##### **§ 11-81-10** Sale Price {#sec-11-81-10 omnilex-key=us-al-statutes--title-11--11-81-10}
All bonds, except revenue bonds, issued under this chapter shall be sold by the governing body at not less than 95 percent of their par value together with accrued interest from the date of the bonds to the date upon which they are delivered and paid for; provided, however, that towns and cities having a population of less than 6,000 may sell such bonds at not less than 90 percent of their par value and accrued interest to date of delivery; provided further, that funding and refunding bonds may be exchanged for outstanding obligations as provided in subsection (b) of Section 11-81-11.
*(Acts 1927, No. 478, p. 534; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 70, p. 60; Code 1940, T. 37, §258.)*
##### **§ 11-81-11** Sale {#sec-11-81-11 omnilex-key=us-al-statutes--title-11--11-81-11}
All bonds issued under the authority of this chapter shall be sold at public or private sale as the governing body of the municipality or county may determine.
If the bonds are sold at public sale, the public sale shall be either on sealed bids or at auction. The notice of public sale shall state whether the sale is to be on sealed bids or at auction and shall also briefly recite the amount of the bonds to be sold, the maturities thereof, the amount payable at each maturity, any redemption or prepayment privileges, the frequency with which interest will be payable, either the rate of interest which the bonds are to bear or that the bidders are invited to name the rate of interest in their bids and the time and place of sale or for submitting sealed bids. Such notice shall be published once in each of two consecutive weeks in a newspaper published in the municipality proposing to issue the bonds, or, if there is no such newspaper published in such municipality or if the sale is of county bonds, then in a newspaper published in the county proposing to issue the bonds or in which such municipality is situated. The first of such two publications shall be not less than 10 days before the last date for submitting bids if the sale is on sealed bids or the date of sale if the sale is at auction. If there is no newspaper meeting the foregoing requirements, the notice shall be posted in three public places in the county or municipality issuing the bonds for at least a period of 10 days. The governing body shall have the right to reject any or all bids.
*(Acts 1927, No. 478, p. 534; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 70, p. 60; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §259; Acts 1945, No. 397, p. 615; Acts 1987, No. 87-600, p. 1044.)*
##### **§ 11-81-12** Determination of Highest Bidder {#sec-11-81-12 omnilex-key=us-al-statutes--title-11--11-81-12}
In determining the highest bidder for bonds offered for sale at any public sale held pursuant to this chapter, the lowest net interest cost to the county or municipality as determined by the governing body of such county or municipality shall govern. The determination of such governing body as to what constitutes such lowest net interest cost shall be final and conclusive.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §260; Acts 1945, No. 397, p. 615.)*
##### **§ 11-81-13** Disposition of Proceeds from Sale {#sec-11-81-13 omnilex-key=us-al-statutes--title-11--11-81-13}
The principal proceeds received in the sale of any bonds hereafter issued under the authority of this chapter shall be used for the purposes for which the bonds are issued; provided, however, that if for any reason any part of such proceeds shall not be necessary for such purposes then such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on said bonds. All accrued interest and premium received in any such sale shall be applied to the payment of interest or principal on the bonds sold.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §261; Acts 1945, No. 394, p. 612.)*
##### **§ 11-81-14** Presumption as to Validity of Issuance, Sale, Etc.; Limitation Period for Actions to Contest Validity Thereof {#sec-11-81-14 omnilex-key=us-al-statutes--title-11--11-81-14}
Any bonds reciting that they are issued pursuant to this chapter shall in any action or proceeding involving their validity be conclusively deemed to be fully authorized by this chapter and to have been issued, sold, executed, and delivered in conformity herewith and with all other provisions of statutes applicable thereto and shall be incontestable, anything in this chapter or in other statutes to the contrary notwithstanding, unless such action or proceeding is begun before or within 30 days after the day upon which the bonds are delivered and paid for.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §262.)*
##### **§ 11-81-15** Levy, Collection and Disposition of Special Tax for Payment of Principal and Interest on Bonds and Sinking Fund Payments {#sec-11-81-15 omnilex-key=us-al-statutes--title-11--11-81-15}
In every county and municipality the officers charged by law with the duty of levying taxes shall annually, without further authority, levy a tax, insofar as such a tax is or may be permitted by the present or any future provisions of the Constitution, sufficient to pay:
(1) Bond interest falling due in that year of all bonds issued after March 15, 1933;
(2) The principal of all serial bonds issued after March 15, 1933 falling due during the current fiscal year;
(3) The sinking fund appropriation for the current fiscal year, if any, required by any agreement heretofore made or by any proceedings heretofore taken to establish a sinking fund for the payment of bonds now outstanding, or required by any agreement which may be made or proceedings taken after February 15, 1933, to establish a sinking fund for the payment of funding or refunding bonds issued after the last named date, except funding or refunding bonds maturing in annual series; and
(4) Such arrears of interest, principal or sinking fund payments as should have been made under this section in any prior years, but which were not so made; provided, that the amount of such annual tax shall be decreased by the amount of special assessments or other funds on hand and appropriated to the said purpose; provided further, that such county or municipality shall not be required to divert to the purposes set out in subdivisions (3) and (4) of this section the proceeds of any tax now authorized to be levied to pay for the expenses of the city government or general purposes of said county or municipality.
Such tax shall be collected like other taxes and shall be applied solely to the said purposes. Nothing contained in this section shall prevent any county or municipality from applying funds derived from other taxes or from any other source to the payment of bonds heretofore or hereafter issued or interest thereon or from establishing a sinking fund for the payment of principal of bonds heretofore issued.
This section shall not apply to revenue bonds issued under this chapter.
*(Acts 1927, No. 478, p. 534; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 70, p. 60; Code 1940, T. 37, §263.)*
##### **§ 11-81-16** Pledge of Revenues from Certain Taxes, Utilities, Etc., for Payment of Principal and Interest on Bonds {#sec-11-81-16 omnilex-key=us-al-statutes--title-11--11-81-16}
In any case in which a county or municipality may hereafter issue any bonds which are general obligations of such county or municipality, there may be pledged to the payment of the principal of an interest on such bonds all or any part or portion of funds which may be derived from any one or more of the following sources and which shall not be required for the purpose of making good any valid pledge thereof theretofore made or which are not required by the Constitution to be devoted to other purposes and which such county or municipality may at any time be authorized to levy, collect or receive:
(1) The proceeds of any property tax;
(2) The proceeds of any license, privilege or occupational tax, excepting such license taxes as may be levied by municipalities for conducting business outside their corporate limits;
(3) The portion of any license, privilege or occupational tax levied under any law heretofore or hereafter enacted which may be apportioned and paid to such municipality or county; and
(4) The revenues of any waterworks, sewerage system, electric light and power plant, airport or any other utility maintained and operated by such municipality or county.
The provisions making such pledge shall have the force of contract between the county or municipality and the holders of such bonds. No property tax thus pledged and no rate or charge for the services rendered by such utility shall be reduced or diminished to such an extent that the tax or revenue pledged will not be sufficient to meet the interest and sinking fund or principal requirements of such bonds. Any tax or revenue so pledged shall constitute a trust fund or funds which shall be impressed with a lien in favor of the holders of the bonds to the payment of which such funds are pledged. In the event such county or municipality should pledge any tax or revenues as authorized by this section, the ordinance or resolution authorizing the issuance of such bonds may provide that such county or municipality shall not be required to levy the tax provided for in Section 11-81-15, but shall be required to levy only such property taxes, license, privilege or occupational taxes as may be so pledged under authority of this section. Notwithstanding any contrary provisions of any general or local law, the ordinance or resolution authorizing the issuance of any such bonds may contain provisions or covenants whereby, so long as any such bonds shall be outstanding, any license, privilege or occupational tax thus pledged shall be levied and collected in each year without reduction in the aggregate annual amount of such license, privilege or occupational taxes so pledged.
*(Acts 1935, No. 195, p. 575; Code 1940, T. 37, §264; Acts 1949, No. 26, p. 38; Acts 1961, Ex. Sess., No. 60, p. 1928; Acts 1979, No. 79-775, p. 1378.)*
##### **§ 11-81-17** Pledge of Revenues from Waterworks System to Secure Payment of Bonds {#sec-11-81-17 omnilex-key=us-al-statutes--title-11--11-81-17}
Any municipality or county may pledge the net revenues of any waterworks system maintained and operated by such municipality for the purpose of supplying such municipality or county and its inhabitants with water to secure the payment of any bonds issued by such municipality or county, whether such bonds shall have been issued for such waterworks system or for any other purpose.
The term “net revenues,” as used in this section, shall include the entire revenues derived from such waterworks system after deducting therefrom the cost of operation and administration and such portion of such revenues as shall be required to satisfy any pledge of such revenues theretofore lawfully made.
*(Acts 1932, Ex. Sess., No. 214, p. 215; Code 1940, T. 37, §270.)*
##### **§ 11-81-18** Pledge of Revenues from License, Privilege, or Excise Taxes for Payment of Principal and Interest on Bonds {#sec-11-81-18 omnilex-key=us-al-statutes--title-11--11-81-18}
In any case in which a municipality or county may hereafter issue any securities, including bonds, warrants, notes and certificates of indebtedness, whether such securities are general obligations of the municipality or county or are payable solely from a special source, there may be pledged to the payment of the principal of and the interest on such securities all or any part of that portion of the proceeds from any license or privilege tax or excise tax levied by any act of the Legislature which may be apportioned and paid to such municipality or county; provided, however, that such pledge may be made only for the benefit of securities issued for a purpose or purposes for which the tax proceeds so apportioned to any such municipality or county are permitted by any such act to be used.
In any case in which a pledge is made under the provisions of this section, the securities for the benefit of which such pledge shall be made shall have preference over claims for salaries or other operating expenses or claims for any other purpose, and if more than one such pledge shall be made with respect to the same portion of any such tax proceeds so apportioned then such pledges shall take precedence in the order in which they are made; provided, that if in the proceedings authorizing any such securities and making any such pledge therefor the municipality or county reserves the privilege of issuing additional securities secured on a parity of pledge with the securities authorized by the said proceedings, then such additional securities subsequently issued may be secured by such parity pledge in accordance with the provisions of the said proceedings in which the said privilege is reserved.
Each pledge of the character authorized by this section that may have been heretofore made by any municipality or county for the benefit of any such securities heretofore issued by it is hereby ratified and confirmed.
*(Acts 1953, No. 531, p. 739; Acts 1969, No. 803, p. 1447, §1.)*
##### **§ 11-81-19** Investment of Sinking Funds Generally; Reports as to Investment or Deposit of Sinking Funds; Contracts for Purchase of Savings Certificates {#sec-11-81-19 omnilex-key=us-al-statutes--title-11--11-81-19}
All sinking funds provided for the retirement of bonds shall be invested in bonds of such subdivision or in bonds of the United States or in bonds of the State of Alabama or in bonds of any county in the State of Alabama or any municipal corporation of the State of Alabama, or deposited in a bank on interest; provided, however, that the proceedings authorizing any funding or refunding bonds may prohibit the investment of the sinking fund for such bonds and require that such sinking fund shall be used exclusively in the purchase for retirement or in the redemption of such funding or refunding bonds.
All sinking funds created by resolutions or ordinance heretofore adopted must be properly set aside each year in accordance with the resolution or ordinance providing for the same and a report made thereof and filed with the clerk of the municipality or with the probate judge of the county, as the case may be, showing in detail how said sinking fund is invested or deposited.
All contracts now in effect for purchasing savings certificates under the law as it heretofore existed shall continue as legal investments.
*(Acts 1927, No. 478, p. 534; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §265.)*
##### **§ 11-81-20** Investment of Funds Received to Credit of Sinking Fund {#sec-11-81-20 omnilex-key=us-al-statutes--title-11--11-81-20}
Any funds of any municipality or county which may come into the hands of such county or municipality to the credit of any sinking fund may be by such county or municipality invested in bonds of the United States, bonds of the State of Alabama or of any county or municipality thereof or in any public improvement bonds issued by any municipality in the State of Alabama which are general obligations of such municipality.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §273.)*
##### **§ 11-81-21** Investment of Funds Obligation in Which Sinking Funds May Be Invested {#sec-11-81-21 omnilex-key=us-al-statutes--title-11--11-81-21}
(a) Any municipal funds or county funds that a municipal or county governing body determines are not presently needed for other purposes may be invested in any obligations in which sinking funds are now authorized to be invested, pursuant to Section 11-81-19, and, in addition, in any of the following:
(1) Direct obligations of (including obligations issued or held in book entry form on the books of) the Department of the Treasury of the United States of America;
(2) Obligations of any of the following federal agencies, which obligations represent the full faith and credit of the United States of America:
a. Farmers Home Administration.
b. General Services Administration.
c. U.S. Maritime Administration.
d. Small Business Administration.
e. Government National Mortgage Association (GNMA).
f. U.S. Department of Housing and Urban Development (HUD).
g. Federal Housing Administration (FHA).
(3) U.S. dollar-denominated deposit accounts and certificates of deposit with banks or savings associations which are qualified public depositories under Chapter 14A of Title 41.
(4) Pre-refunded public obligations, defined as bonds or other obligations of any state of the United States of America or of any agency, instrumentality, or local governmental unit of any such state which fulfill all of the following:
a. Are not callable at the option of the obligor prior to maturity or as to which irrevocable notice has been given by the obligor to call on the date specified in the notice.
b. Are fully secured as to principal and interest and redemption premium, if any, by a fund consisting only of cash or obligations described in subdivision (1), which may be applied only to the payment of such principal of, and interest and redemption premium, if any, on, the bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to the irrevocable instructions referred to in paragraph a., as appropriate, and the fund is sufficient, as verified by an independent certified public accountant, to pay principal of and interest and redemption, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in paragraph a., as appropriate.
c. Are rated, based on the escrow, in the highest rating category of Standard & Poor’s Corporation and Moody’s Investors Service, Inc., or any successors thereto.
(5)a. Interests, however evidenced, in any common trust fund or other collective investment fund maintained by any national or state chartered bank, trust company or savings association having trust powers, or securities of or other interests in any open-end management type investment company or investment trust registered under the Investment Company Act of 1940, as from time to time amended, so long as all of the following requirements are met at the time of purchase and during the term of investment:
1. At least 65 percent of the portfolio of such common trust fund, collective investment fund, or investment company or investment trust must consist of investments authorized in subdivisions (1), (2), (3), or (4).
2. The remainder of the portfolio, if any, but in no case more than 35 percent, may consist only of one or more of the following investments:
(i) Obligations issued or guaranteed by any of the following agencies: Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), including FNMA, and FHLMC participation certificates, Federal Land Banks, Central Bank for Cooperatives, Federal Intermediate Credit Banks, Student Loan Marketing Association, and Federal Home Loan Banks.
(ii) Mortgage related securities (as that term is defined in Section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C. § 78c(a)(41)).
(iii) Repurchase agreements fully collateralized by obligations, securities, or investments otherwise authorized under this subdivision, so long as the common trust fund, collective investment fund, investment company, or investment trust takes possession and delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
b. The fact that any financial institution making an investment as described in paragraph a. on behalf of the municipality or county, or any affiliate of such financial institution, is providing services to the investment company or investment trust as an investment advisor, sponsor, distributor, custodian, transfer agent, registrar, or otherwise, and is receiving reasonable remuneration for such services, shall not preclude the institution from making the investment in the securities of such investment company or investment trust; provided, however, that with respect to any account for municipal funds or county funds to which fees are charged for such services, the financial institution shall disclose, by prospectus, account statement, or otherwise, to the beneficiary of such account, or to any third party directing investments, the basis, expressed as a percentage of asset value or otherwise, upon which the fee is calculated.
(6) Commercial paper with the highest credit rating at the time of purchase.
(7) Banker’s acceptances.
(b) The terms “municipal funds” and “county funds” as used in this section shall include all general, special, permanent, trust, and other funds, regardless of source or purpose, held or administered by any county, city, or town, or by any officer or agency thereof, in the State of Alabama.
(c) Investments of municipal funds or county funds shall be made by the officer or agency controlling their disposition. The county, city, or town, or official or agency thereof, may at any time sell obligations purchased pursuant to this section, and the money received from the sale and the interest and profits on the investment shall be credited to the fund from which the investment was made. Any obligation purchased pursuant to this section may be deposited for safekeeping with any bank, trust company, or savings association organized either under the laws of the State of Alabama or of the United States.
*(Acts 1943, No. 246, p. 203; Acts 1975, No. 1120, §1; Acts 1989, No. 89-655, p. 1298, §1; Acts 1990, No. 90-481, p. 708; Acts 1991, No. 91-482, p. 872, §1; Acts 1993, No. 93-340, p. 523, §1; Act 2000-748, p. 1669, §2; Act 2022-146, §1.)*
##### **§ 11-81-22** Sinking Fund Bonds - Issuance, Etc {#sec-11-81-22 omnilex-key=us-al-statutes--title-11--11-81-22}
Any city which has power to issue bonds to refund the principal of its unmatured bonds under this chapter, may, in the discretion of the city council or board of commissioners or other governing body of such city, cause such bonds to be executed and issued to and placed in a sinking fund established pursuant to Sections 11-81-22 through 11-81-25.
*(Acts 1949, No. 437, p. 633, §1.)*
##### **§ 11-81-23** Sinking Fund Bonds - Designation; Maturity and Interest; Disposition {#sec-11-81-23 omnilex-key=us-al-statutes--title-11--11-81-23}
Bonds issued to and placed in such a sinking fund pursuant to Sections 11-81-22 through 11-81-25 shall be designated “sinking fund bonds.” Notwithstanding anything contained in said sections or any acts amendatory thereof, such bonds may be made payable at such time or times, not more than 20 years after their respective dates, as may be determined by the city council or board of commissioners or other governing body of the city and may bear interest at any rate or rates not in excess of two percent per annum, payable semiannually. Bonds so issued and placed in a sinking fund shall be valid obligations of the city issuing the bonds and shall be held in such sinking fund until they are paid and may not be sold, transferred or negotiated.
*(Acts 1949, No. 437, p. 633, §2.)*
##### **§ 11-81-24** Sinking Fund Bonds - Creation of Sinking Fund; Employment and Duties of Trustee of Sinking Fund {#sec-11-81-24 omnilex-key=us-al-statutes--title-11--11-81-24}
Any city which desires to issue bonds as provided by Sections 11-81-22 through 11-81-24 to refund the principal of any of its unmatured bonds may establish a sinking fund which shall be used solely for the purposes of paying the principal of such unmatured bonds and may, by resolution adopted by its city council or board of commissioners or other governing body, employ any bank or trust company authorized to do business in the State of Alabama or any savings and loan association organized either under the laws of the State of Alabama or of the United States to act as trustee of such sinking fund and to hold in trust the bonds of such city issued to refund the principal of such unmatured bonds and placed in such sinking fund and to apply the income therefrom and the money received in payment therefor or any other income which shall accrue to such sinking fund to the payment of the principal of such unmatured bonds.
*(Acts 1949, No. 437, p. 633, §3; Acts 1973, No. 1256, p. 2102.)*
##### **§ 11-81-25** Sinking Fund Bonds - Powers of Trustee of Sinking Fund {#sec-11-81-25 omnilex-key=us-al-statutes--title-11--11-81-25}
Any trustee of a sinking fund established under Sections 11-81-22 through 11-81-24 shall have power to invest in such manner and subject to such restrictions as may be prescribed in the ordinance or resolution establishing such sinking fund any moneys which it may receive as such trustee, pending the application of such moneys to the payment of such unmatured bonds, in any bonds of such city which are general obligations or in any direct general obligations of the United States.
Any such trustee shall have power and authority to proceed by civil action, mandamus or other appropriate proceeding to enforce and compel payment of any bonds issued to and placed with the sinking fund of which it shall be trustee.
*(Acts 1949, No. 437, p. 633, §4.)*
##### **§ 11-81-26** Mandamus Proceedings {#sec-11-81-26 omnilex-key=us-al-statutes--title-11--11-81-26}
Any court having jurisdiction shall issue mandamus for the levy and collection and proper application of the tax required by Section 11-81-15 or for the setting aside and proper application of sinking fund payment as required by law upon proper proof of noncompliance with the provisions of law being furnished by any taxpayer or bondholder.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §266.)*
##### **§ 11-81-27** Mortgages of Public Property for Payment of Debts {#sec-11-81-27 omnilex-key=us-al-statutes--title-11--11-81-27}
Any county or municipality of this state may mortgage any public property for the payment of any debt contracted in connection with such mortgaged property either originally or as a renewal, and such mortgage shall be admitted to record in the office of the probate judge of any county of this state without the payment of any tax upon the debt secured thereby or any other fee or charge except the costs of recording the instrument at the rate fixed by law.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §267.)*
##### **§ 11-81-28** Issuance, Sale, Etc., of Negotiable Notes in Anticipation of Sale of Bonds {#sec-11-81-28 omnilex-key=us-al-statutes--title-11--11-81-28}
Whenever bonds of any county or municipality shall have been authorized under this chapter at any election or by the governing body thereof in cases where an election is not required, such governing body may from time to time in anticipation of the sale of such bonds issue negotiable notes of such county or municipality for the purpose for which such bonds shall have been authorized and to an amount at any time outstanding not exceeding the maximum authorized amount of such bonds.
Such notes shall be general obligations of the issuing county or municipality, shall be signed as the governing body may prescribe, shall be made payable as the governing body may determine, not later than 12 months from their respective dates, and may be refunded from time to time by the issue of new negotiable notes under this section; provided, that no such refunding shall be effected which shall extend the final date for the payment of such notes to more than three years from the date of the original borrowing.
All notes issued under this section may be sold by the governing body at public sale after advertisement given in the manner provided in subsection (a) of Section 11-81-11, or they may be sold at private sale at not less than their par value plus accrued interest from the date thereof to the date upon which they are delivered and paid for.
Any bonds in anticipation of the sale of which such notes may be so issued shall be dated not later than the date of the original borrowing, and such notes and interest thereon shall be paid out of the proceeds derived from the sale of such bonds when sold.
This section shall not apply to revenue bonds authorized to be issued under this chapter.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §268; Acts 1945, No. 471, p. 705.)*
##### **§ 11-81-29** Bonds and Interest Coupons Exempt from Taxation {#sec-11-81-29 omnilex-key=us-al-statutes--title-11--11-81-29}
All bonds and interest coupons attached to the same issued under the authority of this chapter shall be exempt from state, county and municipal taxation.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §269.)*
##### **§ 11-81-30** Irregularities in Proceedings for Issuance, Etc., Not to Affect Validity of Bonds; Properties, Etc., of Bonds {#sec-11-81-30 omnilex-key=us-al-statutes--title-11--11-81-30}
No irregularity in the proceedings to authorize the issue of bonds under this chapter nor the omission or neglect of any officer charged with the execution of any duties imposed by this chapter shall affect the validity of any bonds issued under this chapter.
Such bonds shall have all the properties and protection of commercial paper.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §271.)*
##### **§ 11-81-31** Ratification of Certain Irregular Elections for Issuance of Bonds {#sec-11-81-31 omnilex-key=us-al-statutes--title-11--11-81-31}
Every election heretofore held in any municipality or in any county for the purpose of voting upon and deciding the question of whether bonds of the municipality or county, as the case may be, shall be issued, at which election a majority of the votes cast were in favor of the issuance of the bonds, but which election was irregular by reason of failure prior to the holding of the election to give notice thereof in a newspaper or by posting in the manner or for the time required by any statute applicable to the election, or because of the failure to comply with any other statutory requirement applicable to the election, or because of any other irregularity with respect to the holding of the election or canvassing or recording the results thereof, shall be and is ratified and confirmed and given effect in all respects as if all provisions of law relating to the election had been duly and legally complied with, and bonds may be issued pursuant to the authorization purported to have been granted at the election, and any bonds heretofore or hereafter issued pursuant to the purported authorization shall be valid. This section shall not apply to any election which, prior to April 22, 1998, has been held invalid by the Supreme Court of Alabama or by final judgment of the circuit court in the county in which the election was held and from which judgment an appeal was not taken to the Supreme Court of Alabama within the time provided by law for the taking of appeals or to any election the validity of which is an issue in any pending civil action commenced prior to April 22, 1998.
*(Acts 1971, No. 161, p. 436; Acts 1977, No. 753, p. 1291; Act 98-368, p. 668, §1.)*
##### **§ 11-81-32** Issuance of Duplicates for Lost, Mutilated or Destroyed Bonds {#sec-11-81-32 omnilex-key=us-al-statutes--title-11--11-81-32}
Whenever it shall be made to appear to the governing body of any municipality or county by clear and satisfactory evidence that any bond of said municipality or county bearing interest has been lost, destroyed or mutilated so that the same is not held by any person as his property, then such municipality or county shall issue a duplicate of such lost, destroyed or mutilated bond in like amount, bearing like interest and executed and marked in like manner as the bond so proved to have been lost, destroyed or mutilated. But the owner of such lost, destroyed or mutilated bond shall first execute a penal bond in double the amount of the bond sought to be replaced together with the amount of interest which has or might thereafter accrue thereon with some surety company qualified to do business in the State of Alabama, to be approved by the governing body of said municipality or county and payable to said municipality or county, with condition to indemnify and save harmless such municipality or county from any claim whatsoever because of such lost, destroyed or mutilated bond. Such penal bonds shall be filed and kept with the clerk of said municipality or the judge of probate of such county and shall be admissible in evidence in any court.
*(Code 1940, T. 37, §272.)*
##### **§ 11-81-33** Execution of Bonds, Etc., with Engraved or Otherwise Reproduced Facsimile of Signature, Seal or Other Means of Authentication, Etc {#sec-11-81-33 omnilex-key=us-al-statutes--title-11--11-81-33}
Any bonds, notes or other obligations for the payment of money heretofore or hereafter authorized to be issued and delivered by any city or town of this state may be executed with an engraved, imprinted, stamped or otherwise reproduced facsimile of any signature, seal or other means of authentication, certification or endorsement required or permitted to be recorded thereon if so authorized by the governing body of such city or town; provided, that at least one signature required or permitted to be placed thereon shall be manually subscribed.
This section shall not repeal any other law authorizing the execution of such bonds, notes or other obligations for the payment of money or interest coupons attached thereto with facsimile signatures or seals.
*(Acts 1955, No. 94, p. 340.)*
#### **Article 2** Municipal Bonds Generally
##### **§ 11-81-50** Municipality Defined {#sec-11-81-50 omnilex-key=us-al-statutes--title-11--11-81-50}
In this article “municipality” means and includes any city or town now or hereafter created, except where clearly restricted.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §274.)*
##### **§ 11-81-51** Purposes for Which Bonds May Be Issued {#sec-11-81-51 omnilex-key=us-al-statutes--title-11--11-81-51}
All municipalities shall have full and continuing power and authority within the limits of the Constitution now in effect or that may be hereafter provided to issue and sell bonds (when such issue is authorized by an election as provided in this article if such election is required by the Constitution, but without an election if an election is not so required) for the following named purposes:
(1) For the purpose of constructing, reconstructing, enlarging or extending public buildings, sewers, streets, alleys, bridges and public schoolhouses and buildings and of constructing or acquiring by purchase or otherwise water, electric light, electric power and gas plants and systems or any two or more such plants or systems combined, including transmission and distribution systems, and of constructing enlargements and extensions to any such plants or systems;
(2) For the purchase of real estate necessary for any improvement authorized by law or for the site for any building or improvement to be used for public purposes;
(3) For extending, enlarging, improving, repairing or securing the more complete use of and enjoyment of any building or improvement owned, purchased or constructed by the municipality and for equipping and furnishing the same;
(4) For the erection of incinerators or garbage disposal plants or for the purpose of providing other means for the disposal of garbage and refuse matter;
(5) For the construction of streets and sidewalks and for the repairing or improving of any street or sidewalk or other public highway;
(6) For opening, widening and extending any street or public highway;
(7) For purchasing or condemning any land necessary for street or highway purposes and for improving the same by paying any portion of the cost of such improvement;
(8) For the erection of infirmaries, hospitals and pesthouses or for rebuilding, extending, enlarging or repairing same;
(9) For the erection of prisons, workhouses, police stations and houses of refuge and correction;
(10) For the erection of market houses and provision of market places;
(11) For the erection of city or town halls and public offices;
(12) For the erection of public schoolhouses and buildings to be used in connection with same;
(13) For the erection and establishment of public auditoriums and other buildings for public meetings and for the purpose of rebuilding, extending, enlarging, repairing and equipping and furnishing the same;
(14) For acquiring, providing or constructing waterworks to supply water to such municipal corporations or to the inhabitants thereof and for the purpose of repairing, improving, extending or enlarging such waterworks system;
(15) For acquiring, providing or constructing lighting plants for supplying light to the municipality or to the inhabitants thereof and for the purpose of repairing, improving and maintaining such lighting plants;
(16) For purchasing or providing grounds for cemeteries, or for enclosing, improving or embellishing the same;
(17) For building crematories and public burial vaults;
(18) For the construction of sanitary and storm water sewers or drains, sewerage plants, and filtration beds and for the purpose of acquiring land or right-of-way for such purposes;
(19) For the establishment of free public libraries and reading rooms;
(20) For the establishment of public baths;
(21) For improving any watercourse or waterfront, for constructing docks, wharves, landings, levees and embankments within the limits of the municipality and for the purpose of protecting the municipality from the encroachments of streams and rivers;
(22) For the payment of obligations arising from emergencies resulting from epidemics or floods or other forces of nature;
(23) For the purchase or condemnation of the necessary land for parks, boulevards and public places, for improving or completing the same or for acquiring additional land for parks, boulevards or public places;
(24) For constructing or repairing viaducts, bridges and culverts and for purchasing or condemning land necessary therefor;
(25) For the purpose of constructing bridges or tunnels over or under any railroad track or for the abolition of grade crossings and for the purpose of paying for damage caused to abutting property owners by the construction of any one of the improvements named in this subdivision;
(26) For erecting any building necessary for a fire department, and for the purchase of fire engines, fire boats or fire equipment;
(27) For constructing water towers, reservoirs and cisterns or for paying the cost of placing underground the wires or other signal apparatus of any fire department;
(28) For the purpose of providing for the payment of any obligations of any municipal corporation, whether arising from administration or from the acquisition of any property for public use or the construction of any improvement or otherwise, or whether said obligations shall have matured or not at the time of said issue;
(29) For the payment of any deficiencies in the revenue of any municipal corporation;
(30) For the funding of floating debts;
(31) For the funding of interest on debts whether such debts are represented by bonds, notes, interest coupons or other obligations;
(32) For the funding of such amount or portion of any judgment entered against the municipality as represents either principal or interest or both principal and interest of any bonded or other indebtedness of the municipality, together with any unpaid interest then accrued on such amount or such portion of such judgment;
(33) For the purpose of providing any money or moneys deemed necessary by the governing body to provide for the administration of the municipality to the expiration of the fiscal year;
(34) For constructing, establishing or acquiring abattoirs and the necessary land upon which to operate same;
(35) For the erection of public comfort stations;
(36) For the payment, in cities having a population of 100,000 or more according to the most recent federal census, of any existing or anticipated deficiencies in the revenues of the city board of education in such cities respectively, by whatever name called, for the funding of floating debts of any such city board of education in any such city and for such other school purposes as may be deemed necessary by such city board of education in any such city; and
(37) For such other purposes for which such municipal corporation is authorized by law or charter to expend money.
*(Acts 1927, No. 478, p. 534; Acts 1931, No. 489, p. 601; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §276.)*
##### **§ 11-81-52** Ordering of Election for Determination as to Issuance of Bonds {#sec-11-81-52 omnilex-key=us-al-statutes--title-11--11-81-52}
The governing body of any municipality in this state may order elections to be held in such municipality for the purpose of voting upon and deciding the question as to whether or not the bonds of such municipality shall be issued for such purposes as are authorized by law whenever such governing body deems this necessary.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §275.)*
##### **§ 11-81-53** Notice of Election {#sec-11-81-53 omnilex-key=us-al-statutes--title-11--11-81-53}
Notice of any election held under the provisions of this article shall be given by publication in a newspaper published in the municipality in which such election is to be held once a week for three successive weeks, the first publication to be made at least 30 days before the election, which notice shall state the purpose for which the election is to be held, the time and place of holding the same, the amount of the proposed bond issue, the maximum rate of interest the bonds are to bear, the time or times when the bonds are to mature and the amount that is to mature at each such time and the purpose for which the bonds are to be issued, and such notice shall be signed by the mayor or other chief executive of such municipality in which such election is to be held, and if no newspaper is published therein such notice must be posted in five public places in said municipality at least 30 days before the time of holding said election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §277.)*
##### **§ 11-81-54** Ballots {#sec-11-81-54 omnilex-key=us-al-statutes--title-11--11-81-54}
The ballot used at such election shall be prepared under the direction of the mayor or other chief executive officer and shall be in such form as may not be inconsistent with the Constitution of Alabama.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §278.)*
##### **§ 11-81-55** Conduct of Election Generally {#sec-11-81-55 omnilex-key=us-al-statutes--title-11--11-81-55}
The governing body of any municipality in which an election is held under this article shall designate the number and location of voting places and shall appoint three managers, two clerks, and one returning officer for each voting place in such municipality to conduct said election, and the mayor or other chief executive shall notify the managers, clerks, and returning officers of their appointment and shall deliver the box and ballots to the managers at the several voting places in the municipality; provided, that if voting machines are to be used at said election, then the election officials therefor shall be appointed and the election shall be conducted as is prescribed in the applicable provisions of Sections 17-9-1 through 17-9-41, inclusive, with amendments thereto or any other laws governing the use of voting machines at elections for such municipality.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §279; Acts 1953, No. 851, p. 1143.)*
##### **§ 11-81-56** Expenses of Election; Compensation of Managers, Clerks, and Returning Officers {#sec-11-81-56 omnilex-key=us-al-statutes--title-11--11-81-56}
All expenses for holding such election shall be paid out of the treasury of the municipality in which the same is held, and the managers, clerks, and returning officers shall be entitled to the same compensation as managers, clerks, and returning officers at other municipal elections.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §280.)*
##### **§ 11-81-57** Board of Canvassers {#sec-11-81-57 omnilex-key=us-al-statutes--title-11--11-81-57}
The governing body of such municipality in which an election has been held under this article shall constitute a board to canvass the returns and declare the result of such election, and such governing body shall meet at the usual place of meeting on the day after the date of the holding of such election and, at that time or at a subsequent meeting to which such meeting may be adjourned, shall canvass the returns and declare the result of said election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §281.)*
##### **§ 11-81-58** Recordation of Election Results {#sec-11-81-58 omnilex-key=us-al-statutes--title-11--11-81-58}
The record of the result of the election as ascertained and declared by the board of canvassers shall be recorded in the minutes of the proceedings of such municipality and when so recorded shall be conclusive evidence of the matters therein stated and of the validity of such election, unless contested as provided in Sections 11-81-59 through 11-81-61. No form shall be required for such record, but it shall be sufficient if the record plainly and manifestly shows the votes cast for and against the proposition submitted to the electors.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §282.)*
##### **§ 11-81-59** Election Contest - Authorized; Bond Required {#sec-11-81-59 omnilex-key=us-al-statutes--title-11--11-81-59}
Any election held under the provisions of this article can be contested by any qualified elector of the municipality by executing a bond with sufficient security, to be approved by the judge of probate of the county, for the payment of the costs of the contest.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §283.)*
##### **§ 11-81-60** Election Contest - Notice and Hearing {#sec-11-81-60 omnilex-key=us-al-statutes--title-11--11-81-60}
Notice of contest shall be served on the mayor or chief executive officer of the municipality in which such election was held when the bond for costs has been approved by the judge of probate of the county. The municipality shall be made contestee, and an answer shall be filed in the name of such municipality. Said contest shall be a preferred case in all courts.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §284.)*
##### **§ 11-81-61** Election Contest - Limitation of Action {#sec-11-81-61 omnilex-key=us-al-statutes--title-11--11-81-61}
No civil action shall be commenced to test the validity of any election held by any municipality of this state for the purpose of issuing bonds unless the said civil action be commenced within 40 days from the date of the said election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §285.)*
##### **§ 11-81-62** Issuance of Bonds {#sec-11-81-62 omnilex-key=us-al-statutes--title-11--11-81-62}
If at any election held under and according to the provisions of this article a majority of the qualified electors voting upon such proposition vote in favor of the issuance of said bonds and the result is ascertained and declared as set out in this article, the governing body shall issue the bonds of such municipality in the amount and for the purposes and payable at the times and in the respective amounts mentioned in the notice of the said election; provided, that if subsequent to the said election the governing body shall determine that the entire amount of bonds mentioned in the election notice is not required for carrying out the purpose mentioned in the election notice, the said governing body may issue such lesser amount of bonds as it may determine to be adequate for the said purpose and may designate the amounts and maturities of the bonds described in the election notice which shall not be issued so that the amounts and maturities of the bonds to be issued shall meet the requirements of Section 11-81-6. Nothing contained in this section shall prevent the governing body from issuing the said bonds from time to time as the proceeds thereof may in its judgment be needed.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §286.)*
##### **§ 11-81-63** Execution and Delivery of Bonds {#sec-11-81-63 omnilex-key=us-al-statutes--title-11--11-81-63}
Bonds of a municipality shall be signed by two or more officers of the municipality holding office at the time of such signing, one of which officers shall be the mayor or other chief executive officer, and the corporate seal of such municipality shall be affixed to the bonds. Interest coupons attached to bonds may bear a facsimile signature of one or both of said officers. The delivery of bonds so executed shall be valid notwithstanding any changes in officers or in the seal of the municipality after the signing and sealing of the bonds.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §289.)*
##### **§ 11-81-64** Bonds for Refunding or Funding of Bonds Outstanding - Authority for Issuance; Sale or Exchange; Rights, Etc., of Holders Thereof {#sec-11-81-64 omnilex-key=us-al-statutes--title-11--11-81-64}
The governing body of any municipality may, without any election, issue bonds of the municipality for the purpose of refunding a like or greater face amount of the principal of any matured or unmatured bonds of such municipality then outstanding whether the bonds to be refunded belong to one class or to two or more classes or to one issue or to two or more issues. The proceedings authorizing any refunding bonds shall clearly identify the bonds to be refunded thereby. Without limiting the generality of any of the foregoing, it is specifically declared that serial bonds shall be included in the classes and issues of bonds which may be refunded hereunder. Bonds which any municipality is legally obligated to pay, although not issued in the name of such municipality, shall be considered bonds of such municipality for the purposes of this section.
The governing body of any municipality may without an election issue bonds of the municipality for the purpose of funding any unpaid interest then accrued on any matured or unmatured bonds of the municipality and also for the purpose of funding or refunding such amount or portion of any judgment rendered against the municipality as represents either principal or interest or both principal and interest of any bonded indebtedness of the municipality together with any unpaid interest then accrued on such amount or such portion of such judgment. The bonds, the interest on which is to be funded or refunded or on which such judgment was rendered, may belong to one class or to two or more classes or to one issue or to two or more issues. Any bonds issued under the authority of this section may be sold in the manner provided by Section 11-81-11 or may be delivered in exchange for any evidence of indebtedness so funded or refunded or may be delivered to the holder of such indebtedness upon its extinguishment or cancellation and in full satisfaction thereof.
The holders of all refunding and funding bonds issued under the provisions of this section, whether such bonds shall have been delivered in exchange for the indebtedness refunded or funded thereby or shall have been sold and the proceeds thereof applied to the retirement of such indebtedness, shall be subrogated to all the rights and powers of the holders of such indebtedness, unless otherwise expressly provided in the ordinance or resolution authorizing the issuance of such refunding or funding bonds.
The provisions of this section shall apply to all types of bonds issued under this article.
*(Acts 1927, No. 478, p. 534; Acts 1931, No. 363, p. 428; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 58, p. 49; Acts 1933, Ex. Sess., No. 70, p. 60; Acts 1935, No. 195, p. 575; Code 1940, T. 37, §287; Acts 1943, No. 247, p. 204.)*
##### **§ 11-81-65** Bonds for Refunding or Funding of Bonds Outstanding - Security {#sec-11-81-65 omnilex-key=us-al-statutes--title-11--11-81-65}
Where the indebtedness to be funded or refunded is secured in whole or in part by a lien, mortgage, or deed of trust upon any property belonging to the municipality or by a pledge, assignment, or appropriation of certain revenues or resources of the municipality, such municipality may make a new lien, mortgage, or deed of trust upon such property or a new pledge, assignment, or appropriation of such revenues or resources to secure the payment of the principal and interest of such funding or refunding bonds, subject, however, to any valid prior liens, mortgages, deeds of trust, pledges, assignments and appropriations.
Municipalities are further authorized to pledge, assign and appropriate to the payment of the principal and interest of funding and refunding bonds issued after February 15, 1933, the collections or proceeds of any or all uncollected special assessments and any or all moneys to be derived from the sale or transfer of tax sale certificates and deeds and from the operation, sale, transfer, or lease of any real estate if such certificates, deeds or real estate shall have been acquired prior to the issuance of such funding and refunding bonds in connection with the enforcement of liens for taxes or special assessments, subject, however, to any other outstanding pledge of such special assessments, certificates, deeds, or money theretofore made.
*(Acts 1927, No. 478, p. 534; Acts 1932, Ex. Sess., No. 153, p. 172; Acts 1933, Ex. Sess., No. 70, p. 60; Code 1940, T. 37, §288.)*
##### **§ 11-81-66** Bonds and Coupons Receivable for Payment of Taxes and Dues {#sec-11-81-66 omnilex-key=us-al-statutes--title-11--11-81-66}
Such bonds and coupons shall, after the maturity thereof, be receivable in payment of all taxes and dues to the municipality issuing the same.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §290.)*
##### **§ 11-81-67** Applicability of Provisions of General Election Laws; Mandatory and Directory Provisions of Article {#sec-11-81-67 omnilex-key=us-al-statutes--title-11--11-81-67}
Where no provisions are otherwise made in this article, the general election laws of the state then in existence with regard to all notices, qualifications of voters, official acts, and things to be done in connection with ordering and holding elections, making returns, canvassing, and certifying the same shall govern in all respects, and all penalties fixed for wrongful acts and violations of the general election laws of the state shall apply to similar acts and violations in all elections held under this article.
The provisions of this article relating to the calling of elections are mandatory, and those relating to the conduct and method of canvassing the same are directory.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §291.)*
##### **§ 11-81-68** Audits {#sec-11-81-68 omnilex-key=us-al-statutes--title-11--11-81-68}
There shall be an annual audit by a certified public accountant or other disinterested public accountant of every municipality having according to the most recent federal census as much or more than a population of 2,000 and an audit biennially for municipalities with a population of less than 2,000 according to the most recent federal census. Said audit shall describe in detail each bond issue outstanding and shall disclose the provision made for payment thereof. In the case of assessment bonds it shall show the amount of assessments 12 months or more past due pledged for the payment of each series of bonds and the amount of all other assessments and the estimated deficit, if any, to be paid out of the general revenues of the municipality. One copy of such audit shall be filed with the clerk of the municipality.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §292.)*
#### **Article 3** County Bonds Generally
##### **§ 11-81-80** Purposes for Which Bonds May Be Issued {#sec-11-81-80 omnilex-key=us-al-statutes--title-11--11-81-80}
All counties shall have full and continuing power and authority within the limits of the Constitution now in effect or that may be hereafter provided to issue and sell bonds, when such issue is authorized by the election provided for in this chapter, for the following named purposes:
(1) To purchase and acquire or construct courthouses, jails, poorhouses, hospitals, asylums for the insane, tuberculosis sanatoriums, workhouses, houses of correction and other public buildings.
(2) For the purchase of real estate for any improvement authorized by law or for the site for any building or improvement to be used for public purposes.
(3) For extending, enlarging, improving, repairing, or securing the more complete use of and enjoyment of any building or improvement, owned, purchased, or constructed by the county and for equipping and furnishing the same.
(4) To fund floating debt.
(5) To acquire land for county parks and to improve the same.
(6) To provide for the purchase or the original construction and improvement of highways and bridges, whether such bridges are wholly within the county or are across streams, waters, swamps, overflowed, submerged or inundated lands or lowlands lying partly within the limits of another county.
(7) For the purpose of providing for the payment of the whole or any part of the cost of the acquirement, construction, extension, improvement, repair, or reconstruction of dikes, levees, embankments, seawalls, or other protection against seas, storms, and floods or the encroachment of streams, rivers, waters, or seas and the whole or any part of the cost of draining, filling, elevating, or reclaiming swamps or submerged, inundated, or overflowed lands or lowlands located within the limits of such county and for the purpose of constructing sanitary and storm sewers within the limits of said county.
(8) For any other purpose for which it is authorized by law to expend money.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §93.)*
##### **§ 11-81-81** Ordering of Election for Determination as to Issuance of Bonds {#sec-11-81-81 omnilex-key=us-al-statutes--title-11--11-81-81}
The county commission may order an election to be held in its county for deciding whether or not the bonds of the county shall be issued for such purposes as are authorized by law.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §92.)*
##### **§ 11-81-82** Notice of Election {#sec-11-81-82 omnilex-key=us-al-statutes--title-11--11-81-82}
Notice of such election shall be given by publication in a newspaper published in the county in which the election is to be held once a week for three successive weeks, the first publication to be made at least 30 days before the election, which notice shall state the purpose for which the election is to be held, the time and places for holding the same, the amount of the proposed bond issue, the maximum rate of interest proposed to be paid, the time or times when the bonds are to mature and the amount that is to mature at each such time, and the purpose for which the bonds are to be issued, and such notice shall be signed by the probate judge or chairman of the county commission or by such other person as the governing body may designate, and if no newspaper is published in the county the notice must be posted in five public places in the county at least 30 days before the time of holding the election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §94.)*
##### **§ 11-81-83** Ballots {#sec-11-81-83 omnilex-key=us-al-statutes--title-11--11-81-83}
The ballot used at such election shall be prepared under the direction of the probate judge and shall be in such form as may not be inconsistent with the Constitution of Alabama.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §95.)*
##### **§ 11-81-84** Conduct of Election Generally {#sec-11-81-84 omnilex-key=us-al-statutes--title-11--11-81-84}
The probate judge, the circuit clerk, and the sheriff of the county in which an election is being held under this article, within 10 days after notice in writing to them of the calling of such election, shall appoint three managers, two clerks, and one returning officer to conduct the election in each beat or polling place in the county, and said managers shall all reside in the beats, wards, or precincts where they are appointed to serve and shall be qualified electors at the date of said election. The sheriff shall notify the managers and returning officers of their appointments and shall send out the boxes and ballots to the several beats or voting precincts in the county promptly.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §96.)*
##### **§ 11-81-85** Expenses of Election; Compensation of Managers, Clerks, and Returning Officers {#sec-11-81-85 omnilex-key=us-al-statutes--title-11--11-81-85}
All expenses for holding such election shall be paid out of the treasury of the county in which the same is held, and the managers, clerks, and returning officers shall be entitled to the same compensation as managers, clerks, and returning officers of the general election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §97.)*
##### **§ 11-81-86** Board of Canvassers {#sec-11-81-86 omnilex-key=us-al-statutes--title-11--11-81-86}
The clerk of the circuit court, the probate judge and the sheriff of the county in which an election is being held under this article shall constitute a board to canvass the returns and declare the results of such election, and they shall meet at the courthouse of the county in which the election is to be held on the Saturday following the holding of said election and canvass the returns and declare the result of said election, and in case either of the three should be absent, the two present shall act.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §98.)*
##### **§ 11-81-87** Recordation of Election Results {#sec-11-81-87 omnilex-key=us-al-statutes--title-11--11-81-87}
The record of the result of the election held under this article as returned by the board of canvassers shall be recorded in the minutes of the county commission of the county in which the same is held, and when so recorded the record shall be conclusive evidence of the matters therein stated and of the validity of such election, unless contested, as provided in Sections 11-81-88 through 11-81-90.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §99.)*
##### **§ 11-81-88** Election Contest - Authorized; Bond Required {#sec-11-81-88 omnilex-key=us-al-statutes--title-11--11-81-88}
A contest of the election held under this article in any county may be made by any qualified elector of the county by executing a bond, with sufficient surety, to be approved by the judge of probate of the county, for the payment of the costs of the contest.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §100.)*
##### **§ 11-81-89** Election Contest - Notice and Hearing; Representation of County {#sec-11-81-89 omnilex-key=us-al-statutes--title-11--11-81-89}
Notice of the contest shall be served on the district attorney of the county in which the contest is instituted and said district attorney shall respond in the name of the county and the county shall be contestee. In all courts said contest shall be a preferred case.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §101.)*
##### **§ 11-81-90** Election Contest - Limitation of Action {#sec-11-81-90 omnilex-key=us-al-statutes--title-11--11-81-90}
No civil action shall be commenced to test the validity of any election held by any county of this state for the purpose of issuing bonds unless the said civil action is commenced within 40 days from the date of the said election.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §102.)*
##### **§ 11-81-91** Issuance of Bonds {#sec-11-81-91 omnilex-key=us-al-statutes--title-11--11-81-91}
If at an election held under and according to the provisions of this article, a majority of the qualified electors of the county voting upon such proposition vote in favor of the issuance of said bonds and the result is ascertained and declared as set out in this article, the county commission shall issue bonds of such county in the amount and for the purpose and payable at the times and in the respective amounts mentioned in the notice of said election; provided, that if subsequent to the said election the county commission shall determine that the entire amount of bonds mentioned in the election notice is not required for carrying out the purpose mentioned in the election notice, the said county commission may issue such lesser amount of bonds as it may determine to be adequate for the said purpose and may designate the amounts and maturities of the bonds described in the election notice which shall not be issued so that the amounts and maturities of the bonds to be issued shall meet the requirements of Section 11-81-6. Nothing contained in this section shall prevent the county commission from issuing the said bonds from time to time as the proceeds thereof may in its judgment be needed.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §103.)*
##### **§ 11-81-92** Execution and Delivery of Bonds {#sec-11-81-92 omnilex-key=us-al-statutes--title-11--11-81-92}
Bonds of a county shall be signed by the manually subscribed or facsimile signature of any two or more officers of the county holding office at the time of such signing as shall be designated by the county commission of the county by whose authority the bonds are issued; provided, that at least one signature required or permitted to be inscribed on such bonds shall be manually subscribed thereon. The seal of the county or of the county commission thereof or of the probate court thereof as shall be designated by the county commission shall be affixed to the bonds; provided, that when so authorized by the county commission the seal designated by it to be used may be imprinted or otherwise reproduced on the bonds. Interest coupons attached to the bonds may be executed with the facsimile signatures of the officers whose signatures appear on the bonds. The delivery of bonds so executed shall be valid notwithstanding any change in officers or in the seal after the signing and sealing of the bonds.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §107; Acts 1959, No. 260, p. 824.)*
##### **§ 11-81-93** Bonds for Refunding of Bonds Outstanding or Installments on Serial Bonds Outstanding - Authority for Issuance {#sec-11-81-93 omnilex-key=us-al-statutes--title-11--11-81-93}
(a) The county commission of any county having bonds outstanding, without an election, may issue bonds of the county for the purpose of refunding the bonds to an amount not exceeding the principal amount of the bonds to be so refunded and also, without an election, may issue bonds of the county from time to time for the purpose of refunding installments of not less than one thousand dollars ($1,000) becoming due on outstanding serial bonds heretofore or hereafter issued.
(b) Notwithstanding subsection (a), a county commission of any county, without an election, and no later than December 31, 2020, may issue bonds of the county, limited in an amount as provided in subsection (a), for the purpose of refunding bonds that were originally issued prior to January 1, 2011, to refund other bonds. The prior refunding bonds are ratified and confirmed and given effect in all respects and any refunding bonds to be issued to refund those bonds are authorized. This subsection does not apply to any bonds that prior to May 18, 2020, have been held invalid by the Supreme Court of Alabama or by final judgment of the circuit court in the county which issued the bonds and from which judgment an appeal was not taken to the Supreme Court of Alabama within the time provided by law for the taking of appeals or to any bonds the validity of which is an issue in any pending civil action commenced prior to May 18, 2020.
*(Acts 1927, No. 478, p. 534; Acts 1931, No. 363, p. 428; Acts 1939, No. 167, p. 290; Code 1940, T. 12, §104; Act 2020-121, §1.)*
##### **§ 11-81-94** Bonds for Refunding of Bonds Outstanding or Installments on Serial Bonds Outstanding - Security {#sec-11-81-94 omnilex-key=us-al-statutes--title-11--11-81-94}
All bonds issued under the authority of Section 11-81-93 shall have all the security and protection to which the original bonds were entitled.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §105.)*
##### **§ 11-81-95** Bonds for Refunding of Bonds Outstanding or Installments on Serial Bonds Outstanding - Special Tax Levy for Payment of Principal and Interest {#sec-11-81-95 omnilex-key=us-al-statutes--title-11--11-81-95}
Where the levy of a special tax was or is authorized to be made to provide for the payment of the principal and interest of such outstanding bonded indebtedness, said county commission is authorized to levy a like tax for the payment of the principal and interest of bonds which may be issued under the authority of Sections 11-81-93 and 11-81-94 for the purpose of refunding the said outstanding bonds.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §106.)*
##### **§ 11-81-96** Applicability of Provisions of General Election Laws; Mandatory and Directory Provisions of Article {#sec-11-81-96 omnilex-key=us-al-statutes--title-11--11-81-96}
Where no provisions are otherwise made in this article, the general election laws of the state then in existence with regard to all notices, qualifications of voters, official acts, and things to be done in connection with ordering and holding elections, making returns, canvassing, and certifying the same shall govern in all respects and all penalties fixed for wrongful acts and violations of the general election laws of the state shall apply to similar acts and violations in all elections held under this article.
The provisions of this article relating to the calling of elections are mandatory and those relating to the conduct and the method of canvassing the same are directory.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §108.)*
##### **§ 11-81-97** Applicability of Provisions Pertaining to Municipal Bonds {#sec-11-81-97 omnilex-key=us-al-statutes--title-11--11-81-97}
The provisions of Sections 11-81-5 through 11-81-20 and 11-81-22 through 11-81-33 shall be applicable to bonds issued under this article.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 12, §109.)*
#### **Article 4** Public Improvement Bonds
#### **Division 1** Bonds for Street and Sidewalk Improvements, Sewer Systems or Other Improvements Generally
##### **§ 11-81-110** Issuance Generally; Pledge of Proceeds of Assessments, Etc., as Security for Payment {#sec-11-81-110 omnilex-key=us-al-statutes--title-11--11-81-110}
(a) For the purpose of providing funds to pay the cost of street and sidewalk improvements, sanitary or storm water sewers or sewer systems, including treatment and disposal plants and water service connections, or other improvements, whether of a like or any different kind, the cost of which, in whole or in part, is proposed to be assessed against the property abutting on said street or sidewalk improved or drained, serviced or benefited by such sanitary or storm water sewer or sewer system or water service connection or served, improved, increased in value or otherwise specially benefited by such improvement, for which purpose the Constitution may now or hereafter permit the issuance of bonds without an election, the governing body of any municipality may, without an election, from time to time, issue bonds of such municipality not in excess of the cost of the improvements as estimated at the time of the issue of the said bonds if said bonds are issued prior to the completion or during the construction of said improvements. If said bonds are issued after the work is completed, such bonds shall not exceed in the aggregate the total cost of the improvements.
(b) The governing body of such municipality may pledge as security for such bonds the proceeds of the assessments made or to be made against the property benefited and may transfer and assign for the benefit of the bondholders the lien of the municipality thereon with power to enforce the same. The making of one loan or the issue of one series of bonds shall not exhaust the power of the municipality to provide sufficient funds for the completion of the improvement.
(c) No irregularities or technical defects in the proceedings relating to the making of the improvements shall prevent the issue of bonds under subsection (a) of this section.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §293.)*
##### **§ 11-81-111** Maturity and Payment; Sale or Delivery in Payment for Work {#sec-11-81-111 omnilex-key=us-al-statutes--title-11--11-81-111}
Such bonds shall be subject to the provisions of Sections 11-81-5 through 11-81-20 and 11-81-22 through 11-81-33 except that they shall be payable in annual installments beginning one year and ending 10 years from the date of the bonds, the amount of no installments to exceed the amount of any other installment by more than $1,000.00 and except that they may either be sold according to Sections 11-81-5 through 11-81-20 and 11-81-22 through 11-81-33 or be delivered at not less than par and accrued interest to the contractor in payment or part payment for the work.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §294.)*
##### **§ 11-81-112** Disposition of Proceeds from Sale {#sec-11-81-112 omnilex-key=us-al-statutes--title-11--11-81-112}
The proceeds from the sale of bonds authorized to be issued by this division shall be applied only to the payment of the cost of the improvement or improvements designated in the ordinance providing for their issue, but should there be any surplus from any bond issue over and above such cost it shall be applied to the payment of the principal of the bonds.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §300.)*
##### **§ 11-81-113** Grouping of Improvements for Issuance of Bonds {#sec-11-81-113 omnilex-key=us-al-statutes--title-11--11-81-113}
Any municipality desiring to issue bonds under this division shall have power to group improvements under two or more improvement ordinances and make one issue of bonds under this division based on the combined estimated costs or combined assessments in respect to such improvements.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §301.)*
##### **§ 11-81-114** Maintenance and Disposition of Sinking Fund Account for Bond Issues; Enforcement of Maintenance of Accounts, Payment of Bonds, Etc.; Disposition of Assessments Securing Bonds in Certain Cities {#sec-11-81-114 omnilex-key=us-al-statutes--title-11--11-81-114}
(a) The official charged with the duty of collecting assessments shall keep all sinking funds in some bank or banks paying interest on time deposits to be designated by the governing body of said municipality and shall provide and keep a separate sinking fund account for each bond issue. If said officer shall fail to provide and keep said separate sinking fund account for each such bond issue in said bank or banks or shall divert any of such funds to other uses or shall fail to pay any bond or bonds or the interest thereon properly payable from said funds when available, any taxpayer of the issuing municipality or any holder of bonds of the series affected by such diversion or failure, whether of bonds heretofore issued or to be hereafter issued, shall have the right to apply for a writ of mandamus requiring said official to take such action to any court of competent jurisdiction, and said court shall, on proof, issue and enforce said writ.
(b) Anything in subsection (a) of this section to the contrary notwithstanding, the official charged with the duty of collecting assessments in or for any city having a population of more than 250,000 inhabitants according to the most recent federal census may deposit in a single bank account all collections of assessments securing bonds for the payment of which the general credit or taxing power of such city is also pledged, whether such assessments secure bonds of one issue or series or bonds of several issues or series, but separate accounts shall be kept on the record of such city or the collections and disbursements from the assessments for each issue.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §302; Acts 1953, No. 683, p. 936.)*
##### **§ 11-81-115** Bond of Officer Charged with Collection of Assessments; Liability of Officer and Members of Governing Body for Diversion, Misappropriation, Etc., of Funds {#sec-11-81-115 omnilex-key=us-al-statutes--title-11--11-81-115}
(a) The official charged with the duty of collecting assessments shall be required to give bond, including the amount of any official bond which may have been required of him by law, equal to not less than five percent of the total amount in said sinking funds provided for in Section 11-81-114, and said bonds shall be increased and may be diminished from time to time in order to comply with this provision. The cost of said increased bond shall be paid by the municipality. Said official shall be liable on his official bond to any holder of the bonds authorized to be issued under this division for any loss or injury to such holder caused by the diversion by said officer of any fund or part thereof to the payment of any bonds or coupons or indebtedness of the municipality other than the bonds and interest coupons entitled and indebtedness authorized in this division to be paid out of said fund or by the use or misappropriation by said officer of any part of the funds out of which said bonds required and contemplated in this division to be paid for any other purpose than provided for in this division or for the benefit of the municipality or others.
(b) All members of the governing body or bodies of the municipality who shall, by their vote or in any other manner, cause, aid or encourage any such diversion, use or misappropriation of the funds out of which the bondholders are entitled to be paid for any other purposes than that authorized and required in this division, whereby loss or injury to the bondholders or any of them is caused, shall be jointly and severally liable to such bondholders injured to the extent of such loss or injury.
(c) Any failure by any of the officials designated in subsections (a) and (b) of this section to keep all funds collected from assessments in separate sinking funds in the bank or banks as provided in this division or to retire bonds when due out of such funds when available shall be construed as a diversion or misappropriation and any bondholder of a bond in the series affected may, at any time, institute a civil action against said official or officials in any court of competent jurisdiction for the satisfaction of such loss and injury.
*(Acts 1927, No. 478, p. 534; Code, 1940, T. 37, §303.)*
##### **§ 11-81-116** Redemption of Bonds {#sec-11-81-116 omnilex-key=us-al-statutes--title-11--11-81-116}
At any time when the amount of any particular fund shall, with its accumulations, equal the amount of any one of the outstanding bonds and accrued interest entitled to payment out of such fund, the governing body of such municipality shall have authority to redeem any and all such bonds that may be presented for redemption at such times thereafter as the holders thereof may desire to present the same for redemption.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §304.)*
##### **§ 11-81-117** Refunding of Excess Assessments - Authority and Procedure Generally {#sec-11-81-117 omnilex-key=us-al-statutes--title-11--11-81-117}
In the event the amount collected from the assessment under any improvement ordinance shall exceed the total cost and expense of the improvement, there shall be refunded to each of the parties affected by said assessment a proportionate amount of the excess upon demand made therefor by said parties within 12 months after maturity or payment of the bonds authorized by this division.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §305.)*
##### **§ 11-81-118** Refunding of Excess Assessments - Limitation Period for Presentation of Claims; Disposition of Amounts Not Refunded {#sec-11-81-118 omnilex-key=us-al-statutes--title-11--11-81-118}
If such claims are not presented within 12 months from the date of the maturity or payment of the bonds, they shall be forever barred, and such amount shall be converted to the general revenue fund of the municipality.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §306.)*
##### **§ 11-81-119** Settlement, Adjustment or Refunding of Bonds {#sec-11-81-119 omnilex-key=us-al-statutes--title-11--11-81-119}
The governing body of any municipality shall have the power to settle, adjust and refund any bonds of such city heretofore or hereafter issued to provide the cost of street, sidewalk or sewer improvements whereof the cost in whole or in part was assessed against the property abutting said improvements, whether such bonds have already become due and payable or are about to become due and payable or are callable according to their terms, and the said governing body deems it to the best interest of the city to call said bonds and raise funds for the payment thereof by the sale of bonds as authorized in this division; provided, however, that all sums derived from the payment of assessments and being in the hands of the city at the time of such refunding shall be first applied to the payment of the outstanding bonds, and refunding bonds shall be issued only in such amount as shall be necessary to raise the difference between the amount required for the payment of the outstanding bonds and the amount held for the payment thereof.
*(Acts 1935, No. 296, p. 719; Code 1940, T. 37, §295.)*
##### **§ 11-81-120** Sale or Issuance to Custodian of Special Fund, Etc., of Refunding Bonds {#sec-11-81-120 omnilex-key=us-al-statutes--title-11--11-81-120}
Where the municipality has used any part of its waterworks fund or other special fund of like character for the purpose of taking up at maturity bonds or coupons representing a portion of the principal of bonds which had heretofore been issued for public improvements and which had fallen due, the provisions of Section 11-81-119 shall be construed to permit either the issuance of refunding bonds to the city or town treasurer as custodian of such fund or the sale of such bonds for the purpose of replacing in such fund all moneys of such fund so used.
*(Acts 1935, No. 296, p. 719; Code 1940, T. 37, §296.)*
##### **§ 11-81-121** Consolidation of Separate Outstanding Issues for Issuance of Refunding Bonds {#sec-11-81-121 omnilex-key=us-al-statutes--title-11--11-81-121}
In exercising the powers conferred by Sections 11-81-119 and 11-81-120, it shall not be necessary to make a separate issue of refunding bonds with respect to each outstanding issue, but two or more of such outstanding issues or portions thereof may be grouped together in a single refunding issue, in which event all assessments thereafter collected with respect to any of the improvements financed by the separate issues or the proper proportionate part thereof shall be applicable to the payment of such refunding bonds.
*(Acts 1935, No. 296, p. 719; Code 1940, T. 37, §297.)*
##### **§ 11-81-122** Maintenance and Disposition of Sinking Fund Accounts for Refunding Bond Issues {#sec-11-81-122 omnilex-key=us-al-statutes--title-11--11-81-122}
A separate sinking fund account shall be provided and kept for each refunding bond issue authorized under the provisions of Sections 11-81-119 through 11-81-121 to which shall be credited all collections made on assessments levied with respect to the improvements financed by the original issues of bonds or the proper proportionate part thereof, and such sinking fund shall be used only for the purpose of paying interest and principal on such bonds in that particular group or series as they mature.
*(Acts 1935, No. 296, p. 719; Code 1940, T. 37, §298.)*
##### **§ 11-81-123** Liability, Etc., Upon Bonds, Etc., When Municipalities Consolidated {#sec-11-81-123 omnilex-key=us-al-statutes--title-11--11-81-123}
When any two or more municipalities are consolidated by special act or under the general law, all assessment bonds upon property for improvements or obligations issued by such municipalities shall be the primary obligation of the municipality which continues its existence, which municipality may make all assessments and do any and all acts necessary to complete the improvements or contracts made by the municipality absorbed and shall issue its bonds for said improvements when completed as was authorized by the municipality absorbed, and such municipality shall assume and be subject to all liabilities and rights of action of such absorbed municipality.
*(Acts 1927, No. 478, p. 534; Code 1940, T. 37, §307.)*
#### **Division 2** Bonds for Certain Revenue-Producing Undertakings
##### **§ 11-81-140** Definitions {#sec-11-81-140 omnilex-key=us-al-statutes--title-11--11-81-140}
When used in this division, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) UNDERTAKING. Such term shall include all of the following revenue-producing undertakings or any combination of two or more of such undertakings, whether now existing or hereafter acquired or constructed:
a. Causeways, tunnels, viaducts, bridges and other crossings, highways, parks, parkways, airports, docks, piers, wharves, seaport or river terminals, hospitals, public markets, tennis courts, swimming pools, golf courses, stadiums, armories, auditoriums and other public buildings of all kinds, incinerator plants and systems in connection with the generation, production, transmission and distribution of electric energy for lighting, heating and power for public and private uses, together with all parts of any such undertaking and all appurtenances thereto, including lands, easements, rights-of-way, contract rights, franchises, approaches, connections, dams and reservoirs.
b. Cold storage plants, cooling plants, sterilization plants, warehouses, granaries and any other plants, works, machinery or equipment useful for the preservation or preparation of agricultural products for market or use and for the conversion of agricultural products into usable and marketable condition and for the conversion of the same into usable and marketable products.
(2) MUNICIPALITY. Such term shall include any incorporated city or town in the state.
(3) GOVERNING BODY. The board or body in which the general legislative powers of a municipality or county are vested; provided, that this division shall not authorize any county, city or town to construct an undertaking provided for in paragraph (1) a of this section in any city or town or in any portion of a county which is then adequately served by a like undertaking or undertaking performing the proposed service; provided further, that nothing contained in this division shall authorize the construction or operation of an undertaking for the purpose of manufacturing ice for sale at retail or for retail to the public.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §341.)*
##### **§ 11-81-141** Powers of Municipalities or Counties Generally; Provisions in Instruments or Deeds of Trust Creating Pledges, Mortgages, Liens, Etc., for Payment of Bonds; Determination of Costs of Acquisition, Construction, Etc., of Undertakings {#sec-11-81-141 omnilex-key=us-al-statutes--title-11--11-81-141}
(a) In addition to the powers which it may now have, any municipality or county shall have power under this division:
(1) To acquire by gift or purchase, to construct, to reconstruct, to improve, to better or to extend any undertaking within or without the municipality or county or partially within or partially without the municipality or county;
(2) To operate and maintain any undertaking for its own use and for the use of public and private consumers and users within and without the territorial boundaries of the municipality or county;
(3) To lease any undertaking or portion thereof to any agency or department of the State of Alabama for a period or periods not exceeding 40 years from the completion of the construction of the work, if any, required in the lease to be done with respect to the undertaking covered by the lease or for a period or periods not exceeding 40 years from the delivery of the lease if no such work is required in the lease to be done;
(4) To prescribe and collect rates, fees, tolls or charges for the services, facilities and commodities furnished by such undertaking and to charge and contract for and collect rentals for all or part of any undertaking that may be leased by the municipality or county as authorized in paragraph (a) (3) of this section, and in anticipation of the collection of such rates, fees, tolls, charges or rentals to issue revenue anticipation bonds to finance in whole or in part the cost of the acquisition, construction, reconstruction, improvement, betterment or extension of any undertaking and to pledge to the punctual payment of the principal of and interest on said bonds all or any part of the gross or net revenues of or rentals from such undertaking (including the revenues of or rentals from improvements, betterments or extensions thereto thereafter constructed or acquired as well as the revenues of existing systems, plants, works, instrumentalities and properties of the undertaking so improved, bettered or extended) or of any part of such undertaking; and
(5) To pledge or to mortgage or execute deeds of trust or to create liens upon any undertaking, either with or without including subsequent extensions and improvements thereto, and upon any lease thereof for the purpose of securing such revenue anticipation bonds as may be issued under the provisions of subdivision (4) of subsection (a) of this section, as amended, for the purpose of financing the cost of acquiring, constructing, improving or extending such undertaking.
(b) The instrument or deed of trust creating such pledge, mortgage, trust or lien as provided in subdivision (5) of subsection (a) of this section may provide for the appointment of a trustee and the acceptance of such trust by such trustee and may contain covenants and warranties usually or customarily contained in mortgages or deeds of trust to secure bonds issued to finance similar undertakings, including, without limiting the generality of the foregoing, covenants regarding the operation and maintenance of, insurance upon and rates and charges for the use of the undertaking, the maintenance of accurate books and records and financial data with respect thereto and warranties of title and against encumbrances, as well as covenants for the prompt payment of the principal of and interest on such revenue anticipation bonds. Such covenants and warranties shall, however, be limited to the funds and resources which the municipality or county may obligate to the payment of such revenue anticipation bonds. Such instrument or deed of trust may provide for the foreclosure of the pledge, mortgage, trust or lien, upon the occurring of any default in the payment of the principal of any such revenue anticipation bonds or any installment thereof or any interest thereon or the violation of any other covenants or warranties contained in such instrument or deed of trust, either by the trustee or by the creditors or their attorneys, and the taking of possession of the property pledged, mortgaged or subject to the deed of trust or lien, the operation thereof by a receiver or trustee and the sale thereof at public outcry, either with or without court proceedings, either by the trustee or by the creditors or by their attorneys or, if foreclosure is by court proceedings, by such official as the court may designate, and may provide that the trustee or creditors may become purchasers at any such sale. Any such instrument or deed of trust may contain provisions for redemption from a foreclosure sale or, if it is silent as to provisions for redemption, the law of the State of Alabama applying to the redemption of real property from mortgage foreclosure sales shall govern. Such instrument or deed of trust may provide that, in the event of the foreclosure of such pledge, mortgage, deed of trust or lien, the purchaser at any foreclosure sale may acquire the right, privilege and franchise of operating the undertaking which is sold or conveyed, and such purchaser or his vendee may have the right, authority and privilege to carry on and operate such undertaking in the same manner, on the same terms and to the same extent as the municipality or county is authorized to operate until the municipality or county may redeem the undertaking from such foreclosure sale.
(c) The governing body in determining the cost of acquisition, construction, reconstruction, improvement, betterment or extension of any undertaking may include all costs and estimated costs of the issuance of said bonds, all engineering, inspection, fiscal and legal expenses and interest which it is estimated will accrue during the construction period and for six months thereafter on money borrowed or which it is estimated will be borrowed pursuant to this division.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §342; Acts 1949, No. 66, p. 87; Acts 1949, No. 503, p. 729; Acts 1961, No. 880, p. 1383.)*
##### **§ 11-81-142** Authorization of Acquisition, Construction, Etc., of Undertaking Taking and Issuance of Bonds in Anticipation of Revenues {#sec-11-81-142 omnilex-key=us-al-statutes--title-11--11-81-142}
The acquisition, construction, reconstruction, improvement, betterment or extension of any undertaking may be authorized under this division; and, in anticipation of the revenues to be derived from such undertaking, bonds may be authorized to be issued under this division to provide funds for such purpose or purposes by resolution or resolutions of the governing body, which may be adopted at a regular or special meeting and at the same meeting at which they are introduced by a majority of the members of the governing body present at such meetings if a quorum is present.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §343.)*
##### **§ 11-81-143** Covenants in Bond Authorization Resolutions; Enforcement of Provisions of Division and Bond Resolutions {#sec-11-81-143 omnilex-key=us-al-statutes--title-11--11-81-143}
(a) Any resolution or resolutions authorizing the issuance of revenue anticipation bonds under this division may contain covenants as to the purpose or purposes to which the proceeds of sale of said bonds may be applied and to the use and disposition thereof, the use and disposition of the revenue of the undertaking in anticipation of which said bonds are to be issued, including the creation and maintenance of reserves, the issuance of other or additional bonds payable from the revenue of said undertaking to pay from the general funds of the municipality or county to the account or accounts of the undertaking the reasonable value for furnishing the municipality or county or any of its departments with the services, facilities and commodities of said undertaking, the operation and maintenance of such undertaking, the insurance to be carried thereon and the use and disposition of insurance moneys, books of account and the inspection and audit thereof and the terms and conditions upon which the holders of the revenue anticipation bonds authorized to be issued under this division by said resolution or resolutions or any proportion of them or any trustee therefor shall be entitled to the appointment of a receiver, which receiver may enter and take possession of such undertaking, operate and maintain the same, prescribe rates, fees, tolls or charges and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the municipality or county itself might do.
(b) The provisions of this division and of any such resolution or resolutions shall be a contract with every holder of said bonds, and the duties of the municipality or county and the governing body and the officers of the municipality or county under this division and under any such resolution or resolutions shall be enforceable by any bondholder by mandamus or other appropriate civil action or proceeding. The circuit court shall have jurisdiction of any civil action or proceeding by any bondholder or bondholders or trustee therefor.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §345.)*
##### **§ 11-81-144** Form, Terms, Denominations, Etc., of Bonds; Maturity and Sale; Execution and Delivery; Issuance of Revenue Refunding Bonds {#sec-11-81-144 omnilex-key=us-al-statutes--title-11--11-81-144}
(a) Revenue anticipation bonds may be issued under this division in one or more series, may bear such date or dates, may be payable in such medium of payment, at such place or places, may carry such registration privileges, may be executed in such manner, may contain such terms, covenants and conditions, and may be in such form, either coupon or registered, as may be specified in the resolution or resolutions providing for their issuance.
(b) Such bonds shall mature in the manner provided for the maturity of revenue bonds in Section 11-81-6 and shall be sold as provided in Sections 11-81-10 through 11-81-12; provided, that if the proceedings authorizing the issuance of any revenue anticipation bonds under this division shall recite that the undertaking with respect to which such bonds are to be issued is then leased by the municipality or county to an agency or department of the State of Alabama or is to be so leased by an agreement of lease to be delivered simultaneously with the issuance of said bonds, then the said bonds may, at the option of the municipality or county, be sold without compliance with the requirements of subsection (a) of said Section 11-81-11. All bonds and coupons attached thereto issued under this division bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations notwithstanding that before the delivery and payment thereof such officers whose signatures appear thereon shall have ceased to be officers of the municipality or county issuing the same. Pending the preparation of the definitive bonds, interim receipts or certificates, in such form and with such provisions as the governing body may determine, may be issued to the purchaser or purchasers of bonds to be issued under this division. Said bonds and interim receipts or certificates shall be fully negotiable within the meaning of and for all the purposes of the applicable provisions of Title 7 and Title 8.
(c) Where a municipality or county shall have outstanding any bonds issued under the provisions of this division, it may thereafter issue and negotiate new bonds on such terms as the governing body shall deem advisable for the purpose of providing for the payment of any such outstanding bonds, including any premium necessary to redeem or retire such outstanding bonds. Such new bonds shall be designated “revenue refunding bonds” and, except as provided in this subsection, shall be secured to the same extent and shall have the same sources of payment as the bonds which shall have been thereby refunded. The issuance of any revenue refunding bonds under the provisions of this subsection shall be subject to the applicable provisions respecting refunding bonds contained in Sections 11-81-6 and 11-81-10 through 11-81-12; provided, that if the proceedings authorizing the issuance of any revenue refunding bonds under this division shall recite that the undertaking with respect to which such revenue refunding bonds are to be issued is then leased by the municipality or county to an agency or department of the State of Alabama or is to be so leased by an agreement of lease to be delivered simultaneously with the issuance of said revenue refunding bonds, then the said revenue refunding bonds may, at the option of the municipality or county, be sold without compliance with the requirements of subsection (a) of said Section 11-81-11.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §344; Acts 1945, No. 392, p. 610; Acts 1961, No. 879, p. 1381.)*
##### **§ 11-81-145** Evidence of Validity of Bonds {#sec-11-81-145 omnilex-key=us-al-statutes--title-11--11-81-145}
Any resolution or resolutions authorizing said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this division, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §346.)*
##### **§ 11-81-146** Lien of Bonds {#sec-11-81-146 omnilex-key=us-al-statutes--title-11--11-81-146}
All revenue anticipation bonds of the same series issued under this division shall, subject to prior and superior rights, have a prior and paramount lien on the revenue of the undertaking in anticipation of which said bonds have been issued over and ahead of all bonds payable from said revenue which may be subsequently issued and over and ahead of any claims of obligations against said revenue subsequently incurred. All bonds of the same series shall be equally and ratably secured without priority or preference by reason of number or date of the bonds, of sale, of execution or of delivery by a lien on said revenue in accordance with the provisions of this division, and the resolution or resolutions authorizing said bonds.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §347.)*
##### **§ 11-81-147** Liability of Municipalities or Counties on Bonds {#sec-11-81-147 omnilex-key=us-al-statutes--title-11--11-81-147}
Revenue anticipation bonds issued under this division shall not be a debt of the municipality or county within the meaning of the Constitution, and the municipality or county shall not be liable thereon nor shall they be payable out of any funds other than the revenue obtained therefrom, anything contained in this division to the contrary notwithstanding, and every bond issued under this division shall contain a recital to that effect.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §348.)*
##### **§ 11-81-148** Exercise of Municipal or County Taxing Power, Etc., for Payment of Bonds {#sec-11-81-148 omnilex-key=us-al-statutes--title-11--11-81-148}
No holder or holders of any bonds issued under this division shall ever have the right to compel any exercise of the taxing power of the municipality or county or the payment of any funds other than the revenue from such undertaking to pay said bonds or the interest thereon, and every bond issued under this division shall contain a recital to that effect.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §349.)*
##### **§ 11-81-149** Exemption from Taxation of Undertakings, Bonds, Etc {#sec-11-81-149 omnilex-key=us-al-statutes--title-11--11-81-149}
So long as the municipality or county shall own or possess any undertaking the property and revenue of such undertaking shall be exempt from all taxation. Bonds issued under this division and the income therefrom shall be exempt from all taxation.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §350.)*
##### **§ 11-81-150** Establishment, Collection, Etc., of Rates, Fees, Tolls, Etc., for Services, Facilities, Etc., of Undertakings {#sec-11-81-150 omnilex-key=us-al-statutes--title-11--11-81-150}
The governing body shall prescribe and collect reasonable rates, fees, tolls, rents or charges for the services, facilities and commodities of any undertaking for the acquisition, construction, reconstruction, improvement, betterment or extension of which revenue anticipation bonds are issued under this division, and shall revise such rates, fees, tolls, rents or charges from time to time whenever necessary so that such undertakings shall be and always remain self-supporting. The rates, fees, tolls, rents or charges prescribed shall be such as will produce revenue at least sufficient to pay when due all bonds and interest thereon for the payment of which such revenue is or shall have been pledged, charged or otherwise encumbered, including reserves therefor, and to provide for all expenses of operation and maintenance of such undertaking, including reserves therefor.
*(Acts 1935, No. 154, p. 195; Code 1940, T. 37, §351.)*
#### **Article 5** Revenue Bonds for Waterworks, Gas, Sewer or Electric Systems
##### **§ 11-81-160** Definitions {#sec-11-81-160 omnilex-key=us-al-statutes--title-11--11-81-160}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) BORROWER. A county or incorporated municipality, as the case may be, exercising the powers conferred by this article.
(2) GOVERNING BODY. In the case of a county, the county commission exercising the legislative functions of the county and, in the case of a municipality, the board of commissioners, the mayor and council or other similar body exercising the legislative functions of the municipality.
(3) WATERWORKS SYSTEM. Facilities for the gathering, collecting, impounding, treatment, transmission and distribution, or any of them, of water for domestic use or for industrial use or both, together with all appurtenances to any such facilities.
(4) SANITARY SEWER SYSTEM. Facilities for the collection, transmission, treatment and disposal of sewage, together with all appurtenances to any such facilities.
(5) GAS SYSTEM. Facilities for the manufacture, conditioning, transmission and distribution, or any thereof, of manufactured or natural gas, together with all appurtenances to such facilities.
(6) ELECTRIC SYSTEM. Facilities for the generation, manufacture and distribution, or any thereof, of electricity, together with all appurtenances to such facilities.
(7) COMBINED SYSTEM. A consolidated system resulting from the combination of any two or more of the following: a waterworks system, a sanitary system, a gas system and an electric system.
(8) SYSTEM and PROJECT. A waterworks system, a sanitary system, a gas system, an electric system or a combined system.
(9) INDUSTRIAL. When used with reference to a waterworks system, a waterworks system designed to supply or distribute water primarily for use other than human consumption.
(10) DOMESTIC. When used with reference to a waterworks system, a waterworks system designed to supply or distribute water primarily for human consumption.
(11) DOMESTIC WATER DISTRIBUTION SYSTEM. A waterworks system designed to distribute water primarily for human consumption.
(12) BONDS and REVENUE BONDS. Bonds issued under this article.
(13) AUTHORIZING PROCEEDINGS, AUTHORIZING ORDINANCE and similar phrases. An ordinance or resolution adopted by the governing body of a borrower whereunder bonds are provided to be issued pursuant to the provisions of this article.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §309; Acts 1955, No. 494, p. 1127, §2.)*
##### **§ 11-81-161** Acquisition, Extension, Repair, Consolidation, Etc., of Waterworks, Sewer, Gas or Electric Systems by Counties or Municipalities Authorized {#sec-11-81-161 omnilex-key=us-al-statutes--title-11--11-81-161}
(a) Any county or incorporated municipality in the State of Alabama is authorized to acquire by any lawful means any one or more of the following systems: a waterworks system, a sanitary sewer system, a gas system and an electric system and, in furtherance of the acquisition of any such system, to acquire any necessary part thereof within or without or partially within and partially without the limits of any such county or the corporate limits of any such municipality, as the case may be; provided, that no municipality in this state shall have, under the authority conferred by this article, the right to construct a gas system, a domestic water distribution system or electric system or portion thereof if there is at the time of such proposed construction a gas system, domestic water distribution system or electric system, respectively, or any portion thereof, then operated as a public utility within the corporate limits of such municipality by any private or public utility corporation, individual, partnership or association; provided further, that no county in this state shall have under the authority conferred by this article the right to construct a gas system, domestic water distribution system, electric system or portion thereof in that portion of said county where there may then be located any gas system, domestic water distribution system or electric system, respectively, or any portion thereof, then being operated as a public utility by any private or public utility corporation, individual, partnership or association.
(b) Any county or incorporated municipality in the state that may now or hereafter own and operate a waterworks system, sanitary sewer system, gas system or electric system is authorized to improve, enlarge, extend and repair such system and to furnish the services, commodities and facilities of such system to domestic or industrial users or both within or without the limits of such county or municipality, as the case may be.
(c) Any such county or incorporated municipality may, if it so elects, at any time and from time to time consolidate any two or more of its systems, including any waterworks system, sanitary sewer system, gas system or electric system into one combined and consolidated system and provide for the operation, maintenance and repair of such combined system and the keeping of books and records with respect thereto as one unit.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1935, No. 46, p. 108; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §308; Acts 1955, No. 494, p. 1127, §1.)*
##### **§ 11-81-162** Estimate of Cost of Acquisition, Extension, Repair, Consolidation, Etc {#sec-11-81-162 omnilex-key=us-al-statutes--title-11--11-81-162}
Whenever the governing body of any borrower shall determine to acquire, improve, enlarge, extend or repair a system or systems under the provisions of this article, it shall first cause an estimate to be made of the cost thereof, and the fact that such estimate has been made and the amount thereof shall appear in the authorizing proceedings providing for the issuance of the bonds proposed to be issued to finance such acquisition, improvement, enlargement, extension or repair.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §310; Acts 1955, No. 494, p. 1127, §3.)*
##### **§ 11-81-163** Adoption, Amendment, Recordation, Etc., of Ordinances or Resolutions for Issuance of Bonds, Segregation of Revenues, Etc {#sec-11-81-163 omnilex-key=us-al-statutes--title-11--11-81-163}
For the purpose of this article, any borrower is authorized to adopt ordinances providing for the issuance of revenue bonds as provided in this article and any and all other appropriate ordinances and resolutions deemed necessary to effectuate the full intent and purpose of this article, including the segregation of revenues derived from the operation of any project named in Section 11-81-161, the determination, fixation and revision from time to time of rates to be charged for services and any and all other necessary ordinances and resolutions to protect the properties, to provide for the adequate operation thereof and to insure the security of the bonds; provided, that in the case of counties, the style of any ordinance or resolution adopted under this article shall be the same as is provided by the laws of the state in the case of municipalities, and the manner of adoption thereof shall be as is provided in the general laws of the state for municipalities of over 6,000 inhabitants. The amendment of such ordinances and resolutions of counties shall be as is provided by the general laws of the state for amendment of ordinances of municipalities. Such ordinances and resolutions of counties shall be recorded in the minutes of the governing body thereof as soon as practicable after their passage and shall be authenticated by the signature of the clerk of such governing body. Any such ordinances or resolutions of counties may be published in a newspaper of general circulation in such county.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §311.)*
##### **§ 11-81-164** Notice of Adoption of Authorization Proceedings for Issuance of Bonds; Limitation Period for Actions to Set Aside Authorization Proceedings, Restrain Issuance of Bonds, Etc {#sec-11-81-164 omnilex-key=us-al-statutes--title-11--11-81-164}
(a) After the adoption of authorizing proceedings providing for the issuance of bonds under this article, the borrower shall cause to be published once a week for two successive weeks in a newspaper either published or having general circulation within the limits of the county or municipality, as the case may be, proposing to issue such bonds, a notice in substantially the following form (the blanks being first properly filled in), with the printed or written signature of the clerk or other recording officer of the borrower appended thereto:
“An ordinance (or resolution) authorizing the issuance of $_____ principal amount of revenue bonds of (here insert name of the borrower) under the provisions of Title 11, Chapter 81, Article 5 of the Code of Alabama, as amended, was duly passed by the (here insert name of the governing body) of (here insert name of the borrower) on the _____ day of _____, 2__, for the purpose of (here state briefly the purpose of the proposed financing). The said bonds will be secured by a pledge of revenues derived from operation of (here state the system or systems out of the revenues from which such bonds are to be made payable). Any civil action or proceeding questioning the validity of said ordinance (or resolution) must be commenced within 30 days after the first publication (or posting) of this notice.”
(b) If there is no newspaper published or having general circulation within the limits of such county or municipality, as the case may be, at the time when its governing body directs such publication to be made, such notice shall be published by posting copies thereof at three public places within the limits of the borrower.
(c) Any civil action or proceeding in any court to set aside the authorizing proceedings or to restrain the proposed issuance of such bonds or to obtain any other relief upon the ground that the authorizing proceedings are invalid must be commenced within 30 days after the first publication of such notice in a newspaper as provided for in subsection (a) of this section or within 30 days after the commencement of the posting of such notice in those cases in which posting is permitted by subsection (b) of this section. After the expiration of such period of limitation, no right of action or defense founded upon the invalidity of the authorizing proceedings shall be asserted nor shall the validity of said bonds or said authorizing proceedings be open to question in any court upon any ground whatever, except in a civil action or proceeding commenced within such period.
*(Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §340; Acts 1955, No. 494, p. 1127, §13.)*
##### **§ 11-81-165** Borrowing in Anticipation of Sale and Issuance of Bonds Authorized; Procedure Therefor {#sec-11-81-165 omnilex-key=us-al-statutes--title-11--11-81-165}
(a) Any municipality or county in the state may at any time and from time to time, in anticipation of the sale and issuance of revenue bonds under the provisions of this article, as amended, borrow money for temporary use for any purpose or purposes for which revenue bonds are authorized to be issued under this article and in evidence of such borrowing may issue interest-bearing notes.
(b) Each such note shall be a limited or special obligation of the issuing municipality or county, payable as to both principal and interest solely from the same revenues out of which such revenue bonds are proposed to be issued or from the proceeds from the sale of such revenue bonds or from both said revenues and said bond proceeds, shall be made payable not later than 24 months after its date, shall be signed as the governing body of said municipality or county may prescribe, may be sold at public or private sale and may be renewed from time to time; provided, that no such renewal shall be made which shall extend the final date for payment of such note to more than three years from the date of the original borrowing.
(c) When any such municipality or county shall issue the revenue bonds in anticipation of which any note or notes were issued under this section, such municipality or county shall retire, out of the proceeds derived from the sale of the said revenue bonds, the said note or notes and, to the extent that such proceeds shall be sufficient therefor, the unpaid interest accrued thereon; provided, that any such municipality or county may, when any such note or notes are held by the United States of America or any agency or instrumentality thereof, without regard to or compliance with the provisions of Section 11-81-11, as amended, issue and deliver such revenue bonds (or a part thereof) in exchange for an equal principal amount of such note or notes and shall, prior to or simultaneously with such issuance and delivery, pay the unpaid interest accrued on such note or notes, which shall thereupon be cancelled and retired.
(d) In issuing any such temporary notes, no municipality or county shall be subject to any requirement, condition or limitation contained in any other law.
*(Acts 1963, 2nd Ex. Sess., No. 95, p. 271; Acts 1971, No. 1947, p. 3145.)*
##### **§ 11-81-166** Revenue Bonds - Authority for Issuance; Authorization Proceedings Generally; Form, Terms, Denominations, Etc.; Execution and Delivery Generally; Maturity and Sale; Payment Generally; Trust Indentures {#sec-11-81-166 omnilex-key=us-al-statutes--title-11--11-81-166}
(a) Any borrower may issue its revenue bonds for the purpose of:
(1) Financing the acquisition, improvement, enlargement, extension and repair, or any of them, of a system or systems;
(2) Refunding the principal of and the interest on any bonds of such borrower theretofore issued under this article and then outstanding, whether or not such principal and interest shall have matured at the time of such refunding; or
(3) Financing any such acquisition, improvement, enlargement, extension and repair, or any of them, and refunding any such principal and interest.
(b) Any bonds issued under this article shall be made payable solely out of the revenues from the operation of a system or systems of the borrower and may be made payable from any such revenues without regard to whether or not such bonds are issued for the benefit of or with respect to the particular system or systems out of the revenues from which such bonds are made payable and without regard to whether or not the system or systems for the benefit of which the bonds are to be issued have been consolidated and combined with the system or systems from the revenues of which the bonds are made payable.
(c) Prior to the issuance of any bonds under this article, the governing body of the borrower shall adopt authorizing proceedings which shall set forth the purpose of the issue, a brief description of any system to be acquired with any part of the proceeds of such issue, a brief description of any improvement, enlargement, extension or repair to be financed with any part of such proceeds, a statement of the estimated cost of acquiring any such system or making any such improvement, enlargement, extension or repair, a description of the bonds to be issued, including the total principal amount thereof, the maximum rate of interest to be borne thereby, the times and places of payment of the principal thereof and the interest thereon and any other details respecting such bonds that the governing body may deem advisable and that are not in conflict with the provisions of this article.
(d) Such bonds shall be payable at such place or places either within or without the state as shall be prescribed in the authorizing proceedings. The bonds and coupons shall be executed in the manner and shall be substantially in the form provided in the authorizing proceedings. The bonds may be issued in coupon or in registered forms or both as the governing body may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the conversion of bonds in bearer form into registered form and vice versa. All bonds issued under this article (including any bonds issued wholly or in part for refunding as provided in this article) shall mature in the manner provided for the maturity of revenue bonds in Section 11-81-6 and shall be sold as provided in Sections 11-81-10 through 11-81-12. Prior to the preparation of definitive bonds, any borrower may, under the restrictions contained in this article, issue temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter. The governing body of any borrower shall have the power to provide for the replacement of any bonds which shall become mutilated or be destroyed or lost.
(e) No bond or coupon issued pursuant to this article shall constitute an indebtedness of the borrower issuing the same within the meaning of any state constitutional provision or statutory limitation. It shall be plainly stated in each of the bonds that the same has been issued under the provisions of this article and that it does not constitute an indebtedness of such borrower within any state constitutional provision or statutory limitation.
(f) The authorizing proceedings may provide for the issuance of the bonds under a trust indenture, which may contain such provisions as the governing body may choose to insert therein regarding the duties and obligations of the borrower and the trustee under such trust indenture, the rights, remedies and privileges of the holders of such bonds and the coupons thereunto appertaining and of such trustee with respect to the system or systems out of the revenues from which such bonds are payable and with respect to such revenues; provided, however, that the provisions of any such trust indenture shall not conflict with any provisions of this article. The trustee under such trust indenture may be any trust company or bank either within or without the state having the powers of a trust company in the United States.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §312; Acts 1945, No. 391, p. 608; Acts 1955, No. 494, p. 1127, §4; Acts 1967, No. 744, p. 1596.)*
##### **§ 11-81-167** Revenue Bonds - Execution and Delivery {#sec-11-81-167 omnilex-key=us-al-statutes--title-11--11-81-167}
In case any of the officers whose signature or countersignature appears on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature or countersignature shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until such delivery.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §322.)*
##### **§ 11-81-168** Revenue Bonds - Negotiability {#sec-11-81-168 omnilex-key=us-al-statutes--title-11--11-81-168}
Such bonds shall have all of the qualities and incidents of negotiable instruments under the law merchant and the applicable provisions of Title 7 and Title 8; except, that they shall not be construed as containing an unconditional promise to pay.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §319.)*
##### **§ 11-81-169** Revenue Bonds - Disposition of Proceeds from Sale - Generally {#sec-11-81-169 omnilex-key=us-al-statutes--title-11--11-81-169}
The governing body, where practicable, shall require that the proceeds of the sale of bonds issued under the provisions of this article be deposited in a special account or accounts in a bank or banks which are members of the federal reserve system and shall require, insofar as practicable, that each such deposit be secured by United States government securities having an aggregate market value at least equal to the sum at the time on deposit, or, in any event, the proceeds shall be deposited in some bank or other depository either within or without the state which will secure such deposit satisfactorily to said governing body.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §320.)*
##### **§ 11-81-170** Revenue Bonds - Disposition of Proceeds from Sale - Proceeds to Be Used Only for Purposes for Which Bonds Authorized; Excess Proceeds {#sec-11-81-170 omnilex-key=us-al-statutes--title-11--11-81-170}
All moneys derived from the sale of any revenue bonds issued under the provision of this article shall be used solely for the purpose or purposes for which the same are authorized, including any engineering, legal and other expenses incident thereto, and, in the case of bonds issued in whole or in part for construction, interest on such bonds or such part prior to and during construction and for one year after completion of construction and, in the case of bonds issued for the purpose of refunding outstanding revenue bonds, any premium which it may be necessary to pay to redeem or retire such bonds. If the proceeds of the bonds of any issue shall exceed the amount required for the purpose or purposes for which the same are issued, the surplus shall be paid into the fund provided in Section 11-81-181 for the payment of the principal of and interest on such bonds.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §321.)*
##### **§ 11-81-171** Revenue Bonds - Redemption {#sec-11-81-171 omnilex-key=us-al-statutes--title-11--11-81-171}
The governing body of the borrower authorizing bonds under the provisions of this article may make provision for any of such bonds to be called for payment on any interest payment date before maturity, with or without a premium, upon such terms and conditions as the governing body may prescribe; provided, however, that the amount of premium on any bonds shall not cause the yield to be more than six percent per annum from the date of the sale of such bonds to the date of their redemption.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936, Ex. Sess., No. 118, p. 78; Code 1940, T. 37, §336.)*
##### **§ 11-81-172** Revenue Bonds - Exemption from Taxation {#sec-11-81-172 omnilex-key=us-al-statutes--title-11--11-81-172}
The bonds and interest coupons issued under this article are hereby exempted from any and all state, county, municipal and other taxation whatsoever under the laws of the State of Alabama, and it shall be plainly stated on the face of each such bond as follows: “The principal of and interest on this bond are exempted from any and all state, county and municipal and other taxation whatsoever under the laws of the State of Alabama.”
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §318.)*
##### **§ 11-81-172.1** Revenue Bonds - Issuance of Bonds for Refunding of Principal of General or Limited Obligation Warrants, Etc {#sec-11-81-172.1 omnilex-key=us-al-statutes--title-11--11-81-172.1}
Any county or incorporated municipality in the State of Alabama may issue revenue bonds under the provisions of this article not only for the purposes specified in Section 11-81-166, but also for the purpose of refunding the principal of any outstanding general or limited obligation warrants of any such county or incorporated municipality that were issued (directly or indirectly) for the purpose of financing the acquisition, improvement, enlargement, extension or repair of any waterworks system, gas system, electric system or sanitary sewer system or that were issued to refund any general or limited obligation warrant or warrants initially issued by such county or incorporated municipality (directly or indirectly) for the purpose of financing the acquisition, improvement, enlargement, extension or repair of any waterworks system, gas system, electric system or sanitary sewer system, whether or not such principal shall have matured at the time of such refunding, and for the combined purpose of refunding the principal of any such general or limited obligation warrants and any other purpose or purposes specified in said Section 11-81-166.
*(Acts 1977, No. 299, p. 400.)*
##### **§ 11-81-173** Issuance of Additional Bonds; Payment of Same {#sec-11-81-173 omnilex-key=us-al-statutes--title-11--11-81-173}
(a) Any borrower acquiring, improving, enlarging, extending or repairing any such system or combined system pursuant to the provisions of this article, may, in the event that the proceeds of any issue of revenue bonds by error of calculation or otherwise shall be less than the amount required for the purpose or purposes for which the same shall be authorized, issue additional bonds under the provisions of this article to provide the amount of such deficit or, in the event that later extensions and permanent improvements to such system or combined system appear to be desirable, issue from time to time additional bonds under the provisions of this article to provide funds for such purposes.
(b) If such additional bonds are issued for the purpose of providing funds necessary to supply any such deficit, they shall, unless otherwise provided in the ordinance authorizing the original issue of bonds or in any trust indenture thereby authorized, be deemed to be of the same issue and to be entitled to payment from the same fund without preference or priority of the bonds first issued. If, however, such bonds are issued to provide funds for the acquisition of other extensions or permanent improvements, such bonds shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued only in the event that it shall be specifically so provided in the ordinance authorizing the original issue of bonds or in any trust indenture thereby authorized.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §324.)*
##### **§ 11-81-174** Refunding Bonds {#sec-11-81-174 omnilex-key=us-al-statutes--title-11--11-81-174}
Any bonds issued under this article solely for refunding purposes shall, unless it shall be otherwise provided in the authorizing proceedings providing for the issuance thereof, be secured to the same extent and have the same sources of payment as the bonds refunded thereby. Unless otherwise provided in the authorizing proceedings providing for the issuance of any such bonds issued solely for refunding purposes, the holders of such bonds shall be subrogated to all the rights and powers of the holders of the bonds refunded thereby.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §325; Acts 1945, No. 390, p. 607; Acts 1955, No. 494, p. 1127, §9.)*
##### **§ 11-81-175** Applicability of Limitations, Etc., in Certain Other Provisions of Chapter as to Bonds Generally {#sec-11-81-175 omnilex-key=us-al-statutes--title-11--11-81-175}
The bonds authorized under this article shall not be subject to any limitations or provisions contained in Articles 3 and 6 and Division 2 of Article 4 of this chapter.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §316; Acts 1955, No. 494, p. 1127, §8.)*
##### **§ 11-81-176** Elections and Publication of Ordinances, Resolutions, Etc., Not Required for Issuance and Sale of Bonds {#sec-11-81-176 omnilex-key=us-al-statutes--title-11--11-81-176}
This article shall be construed as authorizing the issuance and sale of such bonds provided for herein without submitting the proposition for the approval of same to the voters of the borrower. Where bonds are authorized under this article it shall not be necessary to make publication of any ordinance, resolution, notice or proceeding relating thereto other than is provided in Section 11-81-164; provided, that nothing in this article shall be construed to prohibit the governing body from making such publication as it may deem necessary in relation thereto.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §338.)*
##### **§ 11-81-177** Investment in Bonds by Executors, Trustees, Savings Banks, Etc {#sec-11-81-177 omnilex-key=us-al-statutes--title-11--11-81-177}
Bonds issued under the provisions of this article are legal investments for executors, administrators, trustees and other fiduciaries and for savings banks and insurance companies organized under the laws of this state.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §317.)*
##### **§ 11-81-178** Statutory Mortgage Lien of Bondholders - Creation Generally; Filing, Recordation, Etc., of Notice Thereof {#sec-11-81-178 omnilex-key=us-al-statutes--title-11--11-81-178}
(a) In the authorizing proceedings or in the trust indenture, if any, under which bonds may be issued pursuant to the provisions of this article, there shall be created a statutory mortgage lien in favor of the holders of such bonds and of the interest coupons applicable thereto on each system or systems (including any additions thereto and extensions thereof that may be thereafter made) out of the revenues from which such bonds are made payable.
(b) The authorizing proceedings or such trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of such system or systems may be located of a notice containing a brief description of such system or systems, a brief description of such bonds and a declaration that said statutory mortgage lien has been created for the benefit of the holders of such bonds and the interest coupons applicable thereto upon such system or systems, including any additions thereto and extensions thereof. Each judge of probate shall receive, record and index any such notice filed for record in his office. The recording of such notice as provided in this subsection shall operate as constructive notice of the contents thereof.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §313; Acts 1955, No. 494, p. 1127, §5.)*
##### **§ 11-81-179** Statutory Mortgage Lien of Bondholders - Duration; Enforcement {#sec-11-81-179 omnilex-key=us-al-statutes--title-11--11-81-179}
(a) Any system or systems that shall be made subject to a statutory mortgage lien as provided for in Section 11-81-178 shall remain subject to such lien until payment in full of the principal of and the interest on the bonds to secure the payment of which such lien was created or until moneys sufficient for the payment thereof shall have been set aside in trust for payment thereof.
(b) Any holder of any of said bonds or of any of the interest coupons applicable thereto and the trustee under any trust indenture, if so provided in such indenture, may, by civil action, mandamus or other proceedings, protect, enforce and compel performance of all duties of the officials of the borrower, including the fixing of sufficient rates, the collection of revenues, the proper segregation of the revenues of the system or systems and the proper application thereof; provided, however, that such statutory mortgage lien shall not be construed to give any such holder of bonds or coupons or such trustee authority to compel the sale of such system or systems or any part thereof. Any trust indenture provided for by the authorizing proceedings may contain such provisions regarding the rights and remedies of the trustee thereunder and the holders of the bonds and coupons as the governing body may deem advisable and as are not in conflict with the provisions of this article, and may contain such provisions restricting the individual right of action of the holders of the bonds or coupons as are customary in indentures respecting bonds or debentures of corporations.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §314; Acts 1955, No. 494, p. 1127, §6.)*
##### **§ 11-81-180** Appointment of Receiver Upon Default in Payment of Principal and Interest on Bonds; Powers of Receiver {#sec-11-81-180 omnilex-key=us-al-statutes--title-11--11-81-180}
If there shall be any default in the payment of the principal of or interest upon any bonds issued under this article, any court having jurisdiction in any proper civil action may appoint a receiver to administer and operate the system or systems out of the revenues from which such bonds are payable with power to fix and charge rates and collect revenues sufficient to provide for the payment of such bonds and any other obligations outstanding against said system or systems or the revenues therefrom and for the payment of the expenses of operating and maintaining such system or systems and with power to apply the income and revenues of said system or systems in conformity with this article and the authorizing proceedings and any trust indenture provided for therein.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §315; Acts 1955, No. 494, p. 1127, §7.)*
##### **§ 11-81-181** Pledge of Revenues from Systems for Payment of Principal and Interest on Bonds; Disposition of Gross Revenues from Operation of System Generally {#sec-11-81-181 omnilex-key=us-al-statutes--title-11--11-81-181}
(a) In the authorizing proceedings the borrower shall pledge for payment of the principal and interest on bonds issued under this article the revenues derived from operation of a system or systems of the borrower out of which such bonds are made payable; provided, that the borrower may reserve the privilege of using for any lawful purpose surplus revenues from such system or systems remaining after compliance with the provisions of this section and any additional requirements contained, as provided for in this article, in the authorizing proceedings or in a trust indenture.
(b) In the authorizing proceedings or in a trust indenture provided for therein, the borrower shall agree to deposit the gross revenues from such system or systems daily, as received by the borrower, into a “gross revenue account” and to apply the gross revenues in such account for monthly payments into the following separate and special funds, in the order in which said funds are listed:
The authorizing proceedings shall set forth the determination of the governing body as to the respective amounts that will constitute reasonable reserves for the purposes referred to in subdivisions (3) and (4) of this subsection and as to the respective periods of time that will constitute reasonable periods within which such reserves shall be built up, and such determination shall be conclusive as to the respective amounts and the respective periods of time so determined to be reasonable. The authorizing proceedings or a trust indenture provided for therein may contain such additional provisions and requirements not in conflict with this article, with respect to the revenues out of which the bonds are payable as the governing body of the borrower may deem advisable.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §327; Acts 1955, No. 494, p. 1127, §10.)*
##### **§ 11-81-182** Payment of Expenses of Operation or Maintenance of System Out of General Funds {#sec-11-81-182 omnilex-key=us-al-statutes--title-11--11-81-182}
Nothing in this article shall be construed to prohibit the borrower from appropriating and using any part of its available income or revenues derived from any source other than from the operation of such system or combined system in paying any immediate expenses of operation or maintenance of any such system or combined system, but nothing in this article shall be construed to require the borrower to do so.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §328.)*
##### **§ 11-81-183** Designation of Depository; Disposition and Disbursement of Gross Revenue Account and Special Funds by Depository {#sec-11-81-183 omnilex-key=us-al-statutes--title-11--11-81-183}
The governing body of the borrower shall designate as depository for the “gross revenue account” and each of the special funds provided for in Section 11-81-181 a bank or trust company duly qualified and doing business within the State of Alabama. The moneys in said account and in each of the said funds shall be received and held by the respective depositories therefor in separate and special accounts as trust funds for the benefit of the borrower and the holders of the bonds and coupons as their respective interests may appear and shall be applied only for the respective purposes specified in the authorizing proceedings or any trust indenture provided for in the authorizing proceedings; provided, that the authorizing proceedings or such trust indenture may provide that any depository for said account or for the said replacement and extension fund shall not be liable for the misapplication of moneys in said account or said fund, as the case may be, if disbursed pursuant to the written order of a duly authorized officer of the borrower and without knowledge or reason to believe that such disbursement constitutes a misapplication of funds.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1936-37, Ex. Sess., No. 203, p. 236; Code 1940, T. 37, §329; Acts 1955, No. 494, p. 1127, §11.)*
##### **§ 11-81-184** Establishment, Etc., of Rates for Services Furnished by System {#sec-11-81-184 omnilex-key=us-al-statutes--title-11--11-81-184}
Rates for services furnished by any such system or combined system shall be fixed precedent to the issuance of the bonds.
Such rates shall be sufficient to provide for the payment of the interest upon and the principal of all such bonds as and when the same become due and payable, to create a bond and interest redemption fund therefor, to provide for the payment of the expenses of administration and operation and such expenses for maintenance of the system or combined system necessary to preserve the same in good repair and working order, to build up a reserve for depreciation of the existing system or combined system and to build up a reserve for improvements, betterments and extensions to the existing system or combined system other than those necessary to maintain the same in good repair and working order as provided in this section.
Such rates shall be fixed and revised from time to time so as to produce those amounts, and the governing body shall covenant and agree in the ordinance authorizing the issuance of such bonds and on the face of each bond at all times to maintain such rates for services furnished by such system or combined system as shall be sufficient to provide for the foregoing.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §326.)*
##### **§ 11-81-185** Rates Not Subject to State Supervision or Regulation; Supervision, Etc., of Operation, Etc., of Sewer Systems by State Board of Health {#sec-11-81-185 omnilex-key=us-al-statutes--title-11--11-81-185}
Rates charged for services furnished by any system or combined system purchased, constructed, improved, enlarged, extended or repaired under the provisions of this article shall not be subject to supervision or regulation by any state bureau, board, commission or other like instrumentality or agency thereof, and it shall not be necessary for any borrower operating under the provisions of this article, except as otherwise provided in this section, to obtain any franchise or other permit from any state bureau, board, commission or other instrumentality thereof, except the State Board of Health, in order to construct, improve, enlarge, extend or repair any system or combined system named in this article; provided, however, that the functions, powers and duties of the State Board of Health shall remain unaffected by this article, except for the following additional cumulative and supplemental authority: No governing body under the provisions of this article shall construct, add to, modify, alter or operate any sewage collection system or sewage treatment plant or plants as set out in this article or incur any debt or issue any bonds in aid of such systems or works unless a permit shall first have been obtained from the State Board of Health. Such permit shall be based upon adequacy of financing of operation and the maintenance of effluent of such quality as will not constitute a menace or damage to the health or lives of human beings or endanger the public health, welfare or comfort. If any governing body fails or refuses after a period of 30 days after a notice and order is given it by the State Board of Health to perform any act or acts required of it by this section and by any such order or notice of the State Board of Health, such order of the State Board of Health may be enforced by a writ of mandamus issued by any court authorized to issue such writ.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Acts 1935, No. 154, p. 195; Code 1940, T. 37, §334; Acts 1951, No. 192, p. 455, §1.)*
##### **§ 11-81-186** Payment by Counties, Municipalities, Etc., for Services Furnished by System {#sec-11-81-186 omnilex-key=us-al-statutes--title-11--11-81-186}
The governing body may provide in the ordinance authorizing the issuance of bonds under the authority of this article that no free service shall be furnished by any such system or combined system to the county, city or incorporated town or to any agency, instrumentality, person, firm or corporation.
The reasonable cost and value of any service rendered to any such borrower by any such system or combined system shall, in that event, be charged against the borrower and shall be paid for monthly as the service accrues from the current funds or from the proceeds of taxes which such borrower, within constitutional limitations, is hereby authorized and required to levy in an amount sufficient for that purpose, and such funds, when so paid, shall be accounted for in the same manner as other revenues of such system or combined system.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §323.)*
##### **§ 11-81-187** Determination as to Operation of System Upon Calendar, Operating or Fiscal Year Basis, Etc {#sec-11-81-187 omnilex-key=us-al-statutes--title-11--11-81-187}
The ordinance authorizing the issuance of such bonds shall definitely determine whether such system or combined system shall be operated upon a calendar, operating or fiscal year basis and the dates of the beginning and ending of the same.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §330.)*
##### **§ 11-81-188** Maintenance of Books of Record and Accounts, Balance Sheets, Etc., as to Properties, Financial Condition, Etc., of System; Inspection and Examination of Same {#sec-11-81-188 omnilex-key=us-al-statutes--title-11--11-81-188}
(a) Any borrower issuing revenue bonds under the provisions of this article shall install and maintain proper books of record and account, separate entirely from other records and accounts of such borrower, in which full and correct entries shall be made of all dealings or transactions of or in relation to the properties, business and affairs of the system or combined system. The governing body of such borrower, not later than three months after the close of any calendar, operating or fiscal year, shall cause to be prepared a balance sheet and an income and surplus account showing, respectively, in reasonable detail, the financial condition of the system or combined system at the close of each preceding calendar, operating or fiscal year and the financial operations thereof during such year.
(b) Said balance sheets and income and surplus accounts shall at all reasonable times during usual business hours be open to examination and inspection by any taxpayer, user of the services furnished by the system or any holder of bonds issued under the provisions of this article or anyone acting for or on behalf of such taxpayer, user of the services of the system or bondholder.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §335.)*
##### **§ 11-81-189** Impairment, Etc., of Valid Liens or Contracts Not Authorized by Article {#sec-11-81-189 omnilex-key=us-al-statutes--title-11--11-81-189}
Nothing in this article shall be construed as authorizing any borrower to impair or commit a breach of the obligation of any valid lien or contract created or entered into by it, the intention of this article being to authorize the pledging, setting aside and segregation of gross revenues only where consistent with outstanding obligations of such borrower.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §337.)*
##### **§ 11-81-190** Construction of Article {#sec-11-81-190 omnilex-key=us-al-statutes--title-11--11-81-190}
This article, being necessary for and to secure the public health, safety, convenience and welfare of the counties, cities and incorporated towns of the State of Alabama, shall be liberally construed to effect the purposes hereof.
*(Acts 1933, Ex. Sess., No. 102, p. 88; Code 1940, T. 37, §339.)*
#### **Article 6** Alternate Borrowing for Electric Systems
##### **§ 11-81-200** Acquisition, Extension, Operation, Etc., of Power Plants, Power Lines, Electric Systems, Etc., by Counties or Municipalities Authorized; Acquisition of Rights-of-Way {#sec-11-81-200 omnilex-key=us-al-statutes--title-11--11-81-200}
(a) Any county or municipal corporation within this state is hereby authorized and empowered to acquire by purchase, construction, condemnation or otherwise and to maintain, extend, improve and operate electric light plants, power plants, power lines and electric distribution systems together with the extension and the appurtenances thereto and all the property, tangible and intangible and of like or different kind to be used or useful in connection therewith, either within or without or partly within and partly without the corporate limits of such municipal corporation or the boundaries of such county, under the provisions of this article for the purpose of producing, obtaining, distributing or furnishing an adequate supply of electricity for public, industrial, business, domestic, light, power or other consumption within or partly within and partly without the corporate limits of such municipal corporation or the boundaries of such county. Franchises for the supply of such service to other municipalities or counties or to the inhabitants, industries or businesses therein shall be included within the properties which any municipal corporation or county may acquire under the provisions of this article, and such franchises may be acquired either from such municipalities or counties or from the owners of such franchises. All or any part of any existing power plant shall also be included in the properties which any municipal corporation or county may acquire under the provisions of this article.
(b) Such municipal corporation or county may acquire necessary or convenient rights-of-way within the municipal corporation and without the municipal corporation and within the county and without the county in order to reach any necessary or accessible source of power at a United States government owned power plant or otherwise.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §353.)*
##### **§ 11-81-201** Election as to Proposed Undertaking {#sec-11-81-201 omnilex-key=us-al-statutes--title-11--11-81-201}
Whenever any county or municipal corporation through its governing body shall vote to take advantage of the authority granted in this article, as a condition to the exercise of such authority it shall call an election, at which election the question of whether or not such county or municipality will enter upon the undertaking proposed by the governing body of the county or municipal corporation will be voted upon. If the majority of the voters shall vote in the affirmative, then the county or municipal governing body shall proceed with the proposed undertaking in conformity with the provisions of this article and the law of the state pertinent thereto; otherwise, it shall not. Such election shall be ordered, held, canvassed and may be contested in the same manner as is or may be hereafter provided by the law applicable to the authorization of municipal or county bonds.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §354.)*
##### **§ 11-81-202** Borrowing of Money for Acquisition, Extension, Etc., of Plants, Etc., by Counties or Municipalities Authorized; Limitations {#sec-11-81-202 omnilex-key=us-al-statutes--title-11--11-81-202}
For the purpose of defraying the cost of acquiring such plants, or any one or more of them, or any part or parts thereof and making improvements and extensions thereto, either by purchase, construction, condemnation or otherwise, any municipal corporation or county may borrow money from any lender whomsoever, in such amount or amounts as the governing body of such municipal corporation or county may deem necessary or expedient, but no such municipal corporation or county that has reached or exceeded its constitutional debt limit which borrows money under the authority of this article shall bind its general credit or incur any personal liability or charge any general or special fund other than that authorized in this article or charge any property other than that authorized in this article for the repayment of such borrowed money or the payment of interest thereon.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §355.)*
##### **§ 11-81-203** Pledges, Etc., of Plants, Etc., as Security for Repayment of Money Borrowed with Interest {#sec-11-81-203 omnilex-key=us-al-statutes--title-11--11-81-203}
Any such county or municipal corporation which borrows money under the authority of this article may pledge, create a lien upon and mortgage any such plants, or any one or more of them or any part or parts thereof, together with the extensions, improvements and appurtenances thereto and all other property, tangible or intangible and of like or different kind, including franchises, acquired, constructed or installed by means of money borrowed under the authority of this article and also all or any part of the revenues derived from the operation of such plants, or any one or more of them or any part or parts thereof, as security for the repayment of such borrowed money with interest.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §356.)*
##### **§ 11-81-204** Contracts for Security of Lender; Limitation as to Charges for Electric Energy and Service by Counties or Municipalities {#sec-11-81-204 omnilex-key=us-al-statutes--title-11--11-81-204}
(a) In addition and for the further security of the lender, any such county or municipal corporation which has borrowed money under the authority of this article may enter into a contract with the lender binding itself for the proper application of money borrowed from such lender and for the operation and maintenance of any such plants, or any one or more of them or any part or parts thereof, and for the imposition, collection, safeguarding, application, disposition and remittance of reasonable rates for energy supply and services, and for the promulgation of reasonable regulations relating to rates and services and for any other act, series of acts, duty or thing not inconsistent with the provisions of this article for the protection of the lender’s loan and the assurance of a reasonable return upon the properties in which the proceeds of such loan are invested, out of which operating expenses and the principal and interest of such loan may be met.
(b) No county or municipal corporation acquiring or constructing any electric light plant or electric distributing system under the provisions of this article nor receiver of any such electric light plant or distributing system shall charge any rate for electric energy and service that is higher than the rate for similar electric energy and service that has been authorized and approved by the Alabama Public Service Commission for public utility companies operating in counties or municipal corporations of approximately the same size in Alabama.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §357.)*
##### **§ 11-81-205** Form, Terms, Etc., of Instrument Evidencing Loan {#sec-11-81-205 omnilex-key=us-al-statutes--title-11--11-81-205}
Any such county or municipal corporation which borrows money under the authority of this article may evidence the loan by an instrument or instruments in such form and of such tenor and maturity as may be agreed upon between lender and borrower, but no such instrument shall purport or be effective to impose upon the borrower or the borrower’s funds or property any liability in excess of or inconsistent with the liability, the assumption of which is authorized by this article.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §358.)*
##### **§ 11-81-206** Construction of Article {#sec-11-81-206 omnilex-key=us-al-statutes--title-11--11-81-206}
Neither this article nor anything contained in this article shall be construed as a restriction or limitation upon any power or right which any such city may have in the absence thereof. Nor shall any enumeration of subjects in this article be construed to exclude any subject which is embraced within any general language of this article.
*(Acts 1933, Ex. Sess., No. 107, p. 100; Code 1940, T. 37, §359.)*
#### **Article 7** Validation of Bonds Prior to Issuance
##### **§ 11-81-220** Definitions {#sec-11-81-220 omnilex-key=us-al-statutes--title-11--11-81-220}
As used in this article, the following words and phrases shall have the following meanings respectively, unless the context clearly indicates otherwise:
(1) UNIT. Any public corporation organized in this state pursuant to authorization or determination by any municipality or municipalities or county or counties or a municipality and a county or by any combination of municipalities and counties or by the governing body of any one or more thereof and shall include also any county board of education and any city board of education.
(2) ORGANIZING SUBDIVISION. With respect to any unit, each municipality or county which may have granted authorization or made determinations respecting the incorporation of the unit or the governing body of which may have granted such authorization or made such determinations and, in the case of a board of education, the county or city with respect to which such board of education is organized.
(3) OBLIGATIONS. Bonds, warrants, certificates of indebtedness and notes of a unit, including bonds, warrants, certificates and notes that are general obligations of the issuing unit and those that are payable solely from a specified source.
(4) DISTRICT ATTORNEY. The district attorney of the judicial circuit in which the county is located.
*(Acts 1953, No. 859, p. 1148, §1; Acts 1971, No. 973, p. 1736, §1.)*
##### **§ 11-81-221** Filing of Complaint for Determination as to Legality of Proposed Issuance of Obligations {#sec-11-81-221 omnilex-key=us-al-statutes--title-11--11-81-221}
When any unit desiring to issue any obligations shall, by its governing body, adopt any resolution or take any other action required by law for the issuance of obligations of such unit, the governing body of such unit may, in its discretion, before the issuance of any of such obligations, determine its authority to issue such obligations and the legality of all proceedings had or taken in connection therewith, the validity of the tax or other revenues or means provided for the payment thereof and the validity of all pledges of revenues and of all covenants and provisions contained in any such resolution by filing a complaint against the taxpayers and citizens of each organizing subdivision. Such complaint shall be filed in the circuit court of the county in which the principal office of the unit is located.
*(Acts 1953, No. 859, p. 1148, §2.)*
##### **§ 11-81-222** Contents of Complaint; Order and Notice of Hearing to Show Cause Why Obligations Not Valid {#sec-11-81-222 omnilex-key=us-al-statutes--title-11--11-81-222}
(a) The complaint by appropriate allegations, references or exhibits shall briefly state the following: the authority for issuing such obligations; the resolution or resolutions authorizing their issuance and the fact of their adoption and all essential proceedings had or taken in connection therewith; the amount of the obligations to be issued; the maximum rate of interest they are to bear; when principal and interest are to be paid and the place of payment (unless the successful bidder at public sale will have the right to name, designate, request or suggest the place of payment, which shall be stated if this is the case); the taxes, other revenues or other means provided for their payment; and, in the case of obligations payable from taxes, the amount of outstanding indebtedness payable or secured by the same taxes and the assessed valuation for the then preceding tax year of the taxable property in the territory in which said taxes are or will be levied.
(b) The judge of said court shall, on the filing and presentation of said complaint, issue an order against the taxpayers and citizens of each organizing subdivision requiring them to show cause, at a time and place to be designated in said order, which time shall be not less than 20 days nor more than 40 days after the issuance of such order and which place shall be within the county in which the complaint is filed, why said obligations should not be validated and confirmed.
(c) A copy of said complaint and order shall be served (at least 18 days before the date fixed in such order for the hearing) on the district attorney of the county in which such proceedings are pending and on the district attorney of each county which may constitute an organizing subdivision or in which an organizing subdivision may be located. It shall be the duty of each district attorney so served to examine such complaint carefully and, if it appears to him or if he has any reason to believe that such complaint is defective, insufficient or untrue or if it is his opinion that the obligations in question have not been properly authorized or would be in violation of law or that the tax, revenues or other means provided for their payment would not be valid or that any pledge or other covenant or provision for the benefit of said obligations would not be valid, then he shall make such defense thereto as to him shall seem proper. Any officer, agent or employee who has charge, possession, custody or control of any of the books, papers or records of said unit shall, on demand of each such district attorney, exhibit to him for examination said books, papers and records and shall, without cost, furnish to him duly authenticated copies of such books, papers and records which pertain to the proceedings for the issuance of such obligations or which might affect the legality of same or the validity of the tax, revenues or other means provided for their payment, as he shall demand.
(d) Prior to the hearing of said case, the register or clerk of said court shall publish in a newspaper published in each organizing subdivision once each week for at least three weeks before the hearing, the first publication to be at least 18 days before such hearing, a notice addressed to the taxpayers and citizens of each such organizing subdivision requiring them at the time and place specified in the order providing for the hearing of such case to show cause, if any they have, why said obligations, the taxes, revenues or other means provided for their payment and any pledges or other covenants, provisions or agreements for the benefit of said obligations that may be referred to in the complaint should not be validated and confirmed; provided, that if no newspaper shall be published in any organizing subdivision then such notice shall be published as aforesaid in a newspaper published in the county or, if no newspaper is published in the county, then in a newspaper published within the state and having a general circulation in such organizing subdivision. By the publication of such notice all taxpayers and citizens of each organizing subdivision shall become parties defendant to said proceedings, and the court shall have jurisdiction of them the same as if each of them were named individually as party defendants in said complaint and personally served with process.
*(Acts 1953, No. 859, p. 1148, §3; Acts 1971, No. 973, p. 1736, §2.)*
##### **§ 11-81-223** Hearing and Entry of Judgment; Appeals from Judgment of Circuit Court {#sec-11-81-223 omnilex-key=us-al-statutes--title-11--11-81-223}
At the time and place designated in said order, the judge of said circuit court shall proceed to hear and determine all questions of law and of fact in said civil action, and he shall make such orders as to the proceedings in said civil action and adjournments as will best conserve the interests of all parties and enable him to enter a final judgment with the least possible delay. The final judgment shall find the facts specially and shall state separately the judge’s conclusions of law thereon. Any taxpayer or citizen of each organizing subdivision may appear in such proceedings either personally or by attorney, and any party thereto, whether petitioner, defendant or intervenor, dissatisfied with the judgment of the court, may appeal therefrom to the Alabama Supreme Court in accordance with the Alabama Rules of Appellate Procedure. Such appeal shall take priority in the Supreme Court over all other civil cases therein pending, except habeas corpus.
*(Acts 1953, No. 859, p. 1148, §4.)*
##### **§ 11-81-224** When Judgment of Circuit Court Final and Conclusive as to Validity of Obligations, Etc {#sec-11-81-224 omnilex-key=us-al-statutes--title-11--11-81-224}
If the circuit court shall enter a judgment validating and confirming the issuance of the obligations and no appeal shall be taken within the time prescribed by the Alabama Rules of Appellate Procedure; or, if an appeal is taken, the judgment validating such obligations shall be affirmed by the Supreme Court; or, if the circuit court shall render a judgment refusing to validate and confirm the issuance of the obligations and on appeal such judgment shall be reversed by the Supreme Court (in which case the Supreme Court shall issue its mandate to the circuit court requiring it to enter a judgment validating and confirming the issuance of the obligations), the judgment of the circuit court validating and confirming the issuance of the obligations shall be forever conclusive as to the validity of such obligations against the unit issuing them and against all taxpayers and citizens of each organizing subdivision, and the validity of such obligations or of the taxes, revenues or other means provided for their payment and of any pledge, covenant or provision for the benefit of said obligations, to the extent that the validity of any such pledge, covenant or provision shall have been presented to the court and validated by its judgment, shall never be called in question in any court in this state.
*(Acts 1953, No. 859, p. 1148, §5.)*
##### **§ 11-81-225** Legend to Appear on Validated Obligations {#sec-11-81-225 omnilex-key=us-al-statutes--title-11--11-81-225}
Obligations validated under the provisions of this article shall have stamped or written thereon by the proper officers of such unit the words: “Validated and confirmed by judgment of the Circuit Court of ______ County, State of Alabama, entered on the _____ day of ______, 2__,” which shall be signed by the register or clerk of the circuit court in which the judgment was entered, and such entry shall be original evidence of said judgment in any court in this state.
*(Acts 1953, No. 859, p. 1148, §6.)*
##### **§ 11-81-226** Costs of Proceedings {#sec-11-81-226 omnilex-key=us-al-statutes--title-11--11-81-226}
The costs in any proceeding under this article shall be paid by the unit issuing such obligations.
*(Acts 1953, No. 859, p. 1148, §7.)*
##### **§ 11-81-227** Article Not Applicable Where Validity of Obligations in Controversy in Pending Actions or Proceedings {#sec-11-81-227 omnilex-key=us-al-statutes--title-11--11-81-227}
No action shall be taken under this article for the validation of obligations of a unit in any case where the validity of such obligations is in controversy in any civil action or proceeding now pending in any state or federal court.
*(Acts 1953, No. 859, p. 1148, §8.)*
#### **Article 8** Property Insurance Reduction and Capital Expenditure Act of Alabama
##### **§ 11-81-240** Short Title {#sec-11-81-240 omnilex-key=us-al-statutes--title-11--11-81-240}
This article shall be known and may be cited as the Property Insurance Reduction and Capital Expenditure Act of Alabama.
*(Act 2015-494, §1; Act 2026-265, §1.)*
##### **§ 11-81-241** Definitions {#sec-11-81-241 omnilex-key=us-al-statutes--title-11--11-81-241}
For the purposes of this article, the following words have the following meanings:
(1) ASSESSMENT AGREEMENT. The agreement between a local government and a property owner in which the property owner voluntarily agrees to have the local government place an assessment and lien on the benefited property to secure repayment of property insurance reduction and capital expenditure financing to a capital provider.
(2) CAPITAL PROVIDER. The private third-party entity or entities, including their designees, successors, and assigns, that provide private financing for property insurance and capital expenditure financing and refinancing under this article.
(3) CONSENT AGREEMENT. The written agreement or agreements between the owner of the qualifying property and all mortgagees or other secured lienholders in which all parties, individually or collectively, consent to the execution of the assessment agreement and imposition of the assessment and acknowledge that the liens of the mortgagees or other lienholders shall be subordinated to the assessment lien established under this article.
(4) DESIGNATED REGION. An area approved by a local government for qualified projects pursuant to Section 11-81-242.
(5) FINANCING AGREEMENT. The contract between a property owner and a capital provider in which the property owner agrees to repay the capital provider for the financing of qualifying improvements. The term includes, but is not limited to, details of financing charges, fees, debt servicing, interest and penalties, terms related to prepayment and partial payments, billing, collection, and enforcement of the repayment of the financing.
(6) LOCAL GOVERNMENT. Any incorporated municipality, county, or improvement district in this state.
(7) PROGRAM. A program for property insurance reduction and capital expenditure authorized and designated by a local government under this article.
(8) PROGRAM ADMINISTRATOR. The department or individual within a local government designated to administer the program, or a private independent third party designated by the local government, provided that the administrative procedures used conform to this article.
(9) PROGRAM GUIDEBOOK. A comprehensive document that outlines the applicable program and establishes appropriate guidelines, specifications, underwriting, and approval criteria, along with standard application forms consistent with the administration of the program and not detailed in this article, including the following:
a. A program application with an attestation by the property owner that he or she has reviewed the contents of the application and all attachments and verified, to the best of his or her ability, that they are true and correct.
b. An assessment agreement form between the local government and the property owner, specifying the terms of assessment under the program, terms of the financing provided by a third party, and remedies for default or foreclosure.
c. A local government Notice of Assessment and Property Insurance Reduction and Capital Expenditure lien form.
d. A Notice of Assignment of Assessment and Property Insurance Reduction and Capital Expenditure lien form between a local government and a capital provider.
e. A consent agreement form for use between the owner of a qualifying property and the mortgagee or other secured lienholder or lienholders which specifies the consent to the execution of the assessment agreement, the imposition of the assessment, and the subordination of the liens to the assessment.
(10) QUALIFIED PROJECT. A property that has at least one qualifying improvement installed. The term includes a new construction, the adaptive reuse of eligible property with the improvement, or a property where the qualifying improvement has been installed and is operational before the application date.
(11) QUALIFYING IMPROVEMENT. An improvement fixed to or used by an existing building, facility, or new construction that is part of the qualified property and intended to increase energy and water efficiency, lower energy cost, increase building resilience, and harden or upgrade a property to withstand storm-related events such as high winds and flooding. The term includes, but is not limited to, any of the following:
a. Resiliency improvements, including:
1. Wind resistance improvements or programs that qualify the structure for insurance discounts, including the FORTIFIED Program;
2. Improvements that increase occupant safety during tornados, including, but not limited to, safe rooms that comply with the International Code Congress (ICC-500) as mandated by the Alabama Building Commission or are manufactured or site built under the supervision of a professional or producer member of the National Storm Shelter Association; and
3. Battery or generator storage, electric vehicle charging infrastructure, or other resilience measures as deemed acceptable by a local government to provide strengthening or resilience of a structure against natural disasters or pandemics.
b. Flood mitigation, including:
1. Raising a structure above the base flood elevations to eliminate flood damage;
2. Installation of a flood diversion apparatus;
3. Electrical, mechanical, plumbing, or other system improvements that reduce flood damage;
4. Improvements to mitigate or eliminate the potential for microbial growth or reduce flood insurance premiums; and
5. Any other improvement that reduces repetitive loss and is recognized by the National Flood Insurance Program, the Community Rating System, or the Federal Emergency Management Agency.
c. Energy conservation and efficiency improvements installed on the qualifying property to reduce consumption by conserving or using electricity, natural gas, propane, or other forms of energy sources more efficiently, including, but not limited to, any of the following:
1. Air sealing.
2. Installation of insulation.
3. Installation of energy-efficient heating, cooling, or ventilation systems.
4. Building modifications to increase the use of daylight.
5. Replacement of windows.
6. Installation of energy controls or energy efficient lighting systems.
7. Installation of electric vehicle charging equipment.
8. Installation of efficient lighting equipment.
9. Other improvements that are intended to lead to demonstrable energy savings.
d. Water conservation, efficiency, and water quality improvements.
(12) QUALIFYING PROPERTY. Real property that includes commercial, industrial, agricultural, and multifamily buildings. The term excludes residential property consisting of fewer than five units.
*(Act 2015-494, §2; Act 2026-265, §1.)*
##### **§ 11-81-242** Designation of Regions for Qualified Projects; Issuance of Bonds, Notes, Etc {#sec-11-81-242 omnilex-key=us-al-statutes--title-11--11-81-242}
(a)(1) The governing body of a local government may designate an area of the local government or may designate the entire area of the local government, including the unincorporated and incorporated area of the local government if applicable, as a region in which the local government may make available a property insurance reduction and capital expenditure financing program to the record owner of any qualifying property who voluntarily agrees to have assessments and a lien imposed on the owner’s property for the repayment of the funds advanced for qualified projects.
(2) For the purpose of this article, the costs of a qualifying project shall include, but are not limited to, all of the following:
a. All costs of acquisition, by purchase or otherwise, construction, assembly, installation, modification, renovation, rehabilitation, or new construction incurred in connection with any qualified project or any part of any qualified project.
b. All costs associated with the qualifying property, fixtures, or personal property used by, connected with, or necessary for any qualified project or for any related facilities, including, but not limited to, the following:
1. The cost of all land, estates for years, easements, rights, improvements, water rights, connections for utility services, fees, franchises, permits, approvals, licenses, and certificates.
2. The costs associated with securing any franchises, permits, approvals, licenses, or certificates.
3. The cost of preparing any application and the cost of all fixtures, machinery, equipment, furniture, and other property used by, connected with, or necessary for any qualified project.
c. All financing charges, fees, and all interest on financing provided by a capital provider under this article.
d. All costs of engineering, surveying, architectural services, and legal services, and all expenses incurred by engineers, surveyors, architects, and attorneys in connection with any qualified project.
e. All expenses for inspection of any qualified project.
f. All fees of fiscal agents, paying agents, and trustees for bondholders under any trust agreement, indenture of trust, or similar instrument or agreement; all expenses incurred by any fiscal agents, paying agents, and trustees; and all other costs and expenses related to the issuance of any revenue bonds, notes, or other obligations for any qualified project.
g. All fees of any type charged by a local government related to any qualified project.
h. All expenses incurred in determining the feasibility or practicability of any qualified project.
i. All costs of plans and specifications for any qualified project.
j. All costs of title insurance and examinations of title related to any qualified project.
k. Repayment of any assessments made for the advance payment of any part of the costs provided specified in this section, including interest thereon and any other expenses of the assessments.
l. Administrative expenses of the local government and other expenses as may be necessary or incidental to any qualified project, its financing, or placing the project in operation.
(3)a. A local government participating under this article shall impose a lien, consistent with the consent agreement and assessment agreement, when qualified property owners secure private financing from qualified capital providers to finance qualified projects under this article.
b. Notes and other financial instruments issued under this section are not general obligations of the local government but are solely payable from assessments on qualifying properties benefited by the improvement.
(b) After execution of the consent agreement or agreements and the assessment agreement, the participating local government shall assign the assessment or the right to payments from the assessment of a property owner with a qualified project to the capital provider that finances the qualifying improvements.
(c) This article does not apply to residential property consisting of fewer than five units.
*(Act 2015-494, §3; Act 2026-265, §1.)*
##### **§ 11-81-243** Establishment and Amendment of Programs {#sec-11-81-243 omnilex-key=us-al-statutes--title-11--11-81-243}
(a) To establish a program under this article, the governing body of a local government must take the following actions in the following order:
(1) Adopt a resolution of intent that includes all of the following:
a. A finding that financing qualified projects through assessments is a valid public purpose.
b. A statement that the local government intends to make assessments according to the assessment agreement, the consent agreement, and the financing agreement to repay financing for qualified projects available to voluntary and willing qualifying property owners.
c. A description of the types of qualified projects eligible for the program.
d. A description of the boundaries of the designated region.
e. A statement of the time and place for a public hearing on the proposed program.
(2) Hold a public hearing at which the public may comment on the proposed program.
(3) Following the public hearing, adopt a resolution establishing the program and the terms of the program, including a description of each aspect of the program that may be amended only after another public hearing is held.
(b) Subject to the terms of the resolution establishing the program, the governing body of a local government may amend a program by resolution and may allow the program administrator to amend the program guidebook without approval of the local government.
(c) A local government may:
(1) Hire and set the compensation of a program administrator and program staff; and
(2) Contract for professional services necessary to administer a program.
(d) A local government may impose fees to offset the costs of administering a program in an amount equal to the lesser of one percent of the principal amount financed or fifty thousand dollars ($50,000).
(e) For the purposes of this section, the governing body of a local government is not required to review, approve, or ratify any individual application by a property owner.
*(Act 2015-494, §4; Act 2026-265, §1.)*
##### **§ 11-81-244** Application for Funding; Administration of Program; Powers and Duties of Local Governments; Installation of Improvements; Assessments {#sec-11-81-244 omnilex-key=us-al-statutes--title-11--11-81-244}
(a) A qualifying property owner and a capital provider in a designated region may apply to a local government under this program to finance a qualified project and enter into a written consent agreement in which the property owner consents to the local government imposing an assessment and lien on the qualifying property to repay the financing.
(b) A local government may enter into a partnership with one or more other local governments for the purpose of carrying out the purposes of this article.
(c) A qualified program may be administered by a for-profit or nonprofit organization on behalf of and at the discretion of the local government.
(d) A local government may only enter into an assessment agreement with the record owner of the affected qualifying property in a designated region. An assessment agreement entered into pursuant to this section or a summary memorandum of the contract must be recorded in the public records of the court of probate in the county in which the qualifying property is located by the local government. The recorded agreement shall provide:
(1) Constructive notice that the assessment to be levied on the qualifying property constitutes a lien as described in Section 11-81-246;
(2) A legal description of the qualifying property covered by the lien;
(3) The amount secured by the lien;
(4) The maturity date for payment of all amounts secured by the lien;
(5) The names and addresses of the current owners of the qualifying property subject to the assessment;
(6) The person or entity owed the assessment;
(7) The person or entity filing the notice;
(8) A reference to the statutory assessment lien provided under this article; and
(9) A copy of the executed consent agreement.
(e) Prior to entering into an assessment agreement, the owner of a qualified property and the capital provider shall warrant all of the following to the local government in the application:
(1) That all property taxes and any other assessments levied on the same bill as property taxes are paid.
(2) That there are no involuntary liens, including, but not limited to, construction liens on the qualifying property, which will not be expunged as a consequence of the financing.
(3) That the qualifying property owner is current on all mortgage debt on the property.
(f) A qualifying improvement shall be affixed to an existing building or facility that is part of the qualifying property and shall be considered an improvement to the building or facility, a fixture attached to the building or facility, or part of a new construction of a building or facility.
(g) An installation of a qualifying improvement requiring a license or certification of work under applicable law or building code must be performed by a contractor or evaluator properly certified, licensed, or registered in this state.
(h) Prior to the execution of the assessment agreement, an applicant must provide the following documents to demonstrate that the project intends to benefit the public through energy or water resource conservation, lowering public health costs or risks, or reducing public emergency response costs or risks:
(1) For an existing building where energy or water usage improvements are proposed:
a. An energy analysis from a licensed engineering firm, engineer, or other qualified professional listed in the program guidebook; and
b. A statement by the author of the analysis that the proposed qualifying improvements are intended to enhance energy or water efficiency or conservation or to incorporate renewable resources.
(2) For resilience improvements, certification from a licensed professional engineer or another qualified professional listed in the program guidebook stating that the qualifying improvements are intended to result in improved resilience.
(3) For a new construction, a certified study from a licensed professional engineer, engineering firm, or other qualified professional stating that the proposed qualifying improvements are intended to enable the project to exceed the current building code requirements for: (i) energy efficiency; (ii) water efficiency; or (iii) utilizing renewable energy or renewable water; or that the proposed improvements are intended to meet or exceed resilience standards of the local government’s building codes or, if none are available, comply with nationally recognized resiliency standards.
(i)(1) The execution of the assessment agreement by the local government shall be based solely on the application, the information required under this article, the program guidelines, and the consent agreement. The assessment agreement shall include the following statement: “Nothing in the acceptance of the application, execution of this agreement, or the placement of the assessment and lien shall constitute an endorsement by the local government, explicit or implicit, that the materials provided in the application are true and correct, nor is the acceptance of the application a warranty, guarantee, validation, or endorsement of the information, findings, or conclusions, if any, in the application. The local government is not liable for the failure of the performance of any of the improvements associated with the application, nor does the local government warrant that any of the improvements are eligible for funding under this article.”
(2) The assessment agreement shall also include a statement that the local government shall not be involved in decisions to enforce or foreclose on the assessment and lien, and that such authority rests with the capital provider.
*(Act 2015-494, §5; Act 2026-265, §1.)*
##### **§ 11-81-245** Consent Requirements; Disclosure Statement {#sec-11-81-245 omnilex-key=us-al-statutes--title-11--11-81-245}
(a)(1) Before entering into a written assessment agreement with a local government, the qualifying property owner shall provide, or the local government shall obtain, a verified copy of a written consent agreement signed by the holder of each existing mortgage or other lien on the relevant qualifying property stating that the mortgagee or other lienholder consents to the imposition of the assessment and understands that the priority of the mortgage or other lien is subordinated to the assessment lien. The form and substance of the consent agreement shall comply with the guidebook and this article. The consent agreement must be in a form that may be recorded in the recording office of the county or counties where the qualifying property is located. The consent agreement and the qualifying property owner’s assessment agreement shall be recorded in that office.
(2) This subsection does not limit in any way the rights or authority of any mortgagee or other lienholder under any agreement or applicable law, except that a provision of a deed of trust, mortgage, or other agreement between a lienholder and a qualifying property owner which provides for the acceleration of any payment solely as a result of entering into an agreement to finance an assessment pursuant to this article is unenforceable if the mortgagee or lienholder executes a consent agreement pursuant to subdivision (1).
(b) At or before the time a purchaser executes a contract for the sale and purchase of any qualifying property for which a non-ad valorem assessment has been levied under this article and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing:
“QUALIFYING IMPROVEMENTS FOR ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY, AND RESILIENCY. This qualifying property being purchased is located within the jurisdiction of a local government that has established an assessment on the qualifying property pursuant to Section 11-81-242 of the Code of Alabama 1975. The assessment is for a qualifying improvement to the property relating to energy and water efficiency, renewable energy, or resilience and is not based on the value of the qualifying property. You are encouraged to contact the county property appraiser’s office to learn more about this and other assessments that may be provided by law.”
*(Act 2015-494, §6; Act 2026-265, §1.)*
##### **§ 11-81-246** Assessment Lien; Enforcement {#sec-11-81-246 omnilex-key=us-al-statutes--title-11--11-81-246}
(a) An assessment under this article, including any interest or penalties on the assessment, shall constitute a lien on the qualifying property for the principal amount of the financing, subject to the requirement in Section 11-81-245 to obtain a signed consent agreement from all lienholders. This lien shall:
(1) Be a lien against the qualifying property on which the assessment is imposed effective from the earliest of: (i) the date of the assessment agreement; (ii) the summary memorandum date; or (iii) the date on which the notice of contractual assessment is recorded;
(2) Have the same priority status as a lien for any other ad valorem tax, non-ad valorem tax, or a special assessment imposed by a local government;
(3) Run with the qualifying property. The portion of the assessment under the assessment contract which has not yet become due shall not be included in any enforcement action and is not accelerated or eliminated by foreclosure of a property tax lien or any other foreclosure, public or private; and
(4) Not be enforced or collected through the process used to collect and enforce ad valorem taxes under Alabama law.
(b) The billing, collection, and enforcement of the assessment lien shall be the sole responsibility of the capital provider or its assigns. The capital provider’s rights and remedies related to any contractual default by the qualifying property owner shall be governed by the terms of the financing agreement and state law. Assessments under this article shall be considered a statutory assessment and shall be superior to all other liens except tax liens and any lien for a special assessment imposed by a local government.
(c) Delinquent installments of the assessments incur interest and penalties as specified in the financing agreement.
(d) Delinquent interest and penalties incurred as specified in the financing agreement shall be included in any enforcement action.
(e) In any action to enforce an assessment lien, the person enforcing the assessment lien must serve the holders of all mortgages and other liens with notice of the enforcement action at least 60 days before any hearing or other action is taken with respect to the enforcement action. Service upon a domestic or foreign corporation or other entity shall be made by serving the registered agent of the entity if a registered agent has been appointed. If no registered agent has been appointed, service shall be in accordance with Rule 4 of the Alabama Rules of Civil Procedure.
*(Act 2015-494, §7; Act 2026-265, §1.)*
##### **§ 11-81-247** Loss Reserve Fund {#sec-11-81-247 omnilex-key=us-al-statutes--title-11--11-81-247}
**THIS SECTION WAS REPEALED BY ACT 2026-265, EFFECTIVE JUNE 1, 2026.**
*(Act 2015-494, §8; Act 2026-265, §3.)*
##### **§ 11-81-248** Regulatory Jurisidiction {#sec-11-81-248 omnilex-key=us-al-statutes--title-11--11-81-248}
**THIS SECTION WAS REPEALED BY ACT 2026-265, EFFECTIVE JUNE 1, 2026.**
*(Act 2015-494, §9; Act 2026-265, §3.)*
##### **§ 11-81-249** Imposition of Assessment {#sec-11-81-249 omnilex-key=us-al-statutes--title-11--11-81-249}
The imposition of an assessment pursuant to this article is to be made solely at the request of the owner of record of the qualifying property within a designated region. A local government shall not compel a person who owns qualifying property in a designated region to enter into an assessment agreement to repay the financing of any cost or assessment through assessments under this article.
*(Act 2015-494, §10; Act 2026-265, §1.)*
##### **§ 11-81-250** Construction of Article {#sec-11-81-250 omnilex-key=us-al-statutes--title-11--11-81-250}
Nothing in this article, nor any program adopted in accordance with the procedures established hereunder, shall alter, amend, or affect the rights, duties, and obligations of any electric supplier or the regulation or governance of any such entity.
*(Act 2015-494, §11.)*
##### **§ 11-81-251** Restriction on Public Funding {#sec-11-81-251 omnilex-key=us-al-statutes--title-11--11-81-251}
Public funds from the state or any local government shall not be used to fund or repay a loan between a capital provider and a qualifying property owner. A state or local government shall not pledge, offer, or encumber its full faith and credit for a lien amount through a property insurance reduction and capital expenditure program.
*(Act 2026-251, §2.)*
##### **§ 11-81-252** Liability of Local Government Personnel {#sec-11-81-252 omnilex-key=us-al-statutes--title-11--11-81-252}
The members of the governing body of a local government as well as employees and officials of the local government are not liable, in their official capacity, for any decision, exercise of discretion, or exercise of any rights or responsibilities granted under this chapter.
*(Act 2026-251, §2.)*
#### **Article 9** Joint Road Improvement Authorities
##### **§ 11-81-260** Definitions {#sec-11-81-260 omnilex-key=us-al-statutes--title-11--11-81-260}
When used in this article, the following terms shall have the following meanings:
(1) ARTICLES. The articles of incorporation or articles of reincorporation of an authority.
(2) AUTHORITY. A public corporation incorporated or reincorporated pursuant to the provisions of this article.
(3) BOARD OF DIRECTORS. The board of directors of an authority.
(4) BOND or BONDS. A bond or bonds issued under this article.
(5) COUNTY OF INCORPORATION. The county in which an authority has been or is proposed to be incorporated or reincorporated.
(6) DIRECTORS. The members of the board of directors.
(7) INCORPORATORS. The natural persons filing a written application for the incorporation or reincorporation of an authority pursuant to this article.
(8) MUNICIPALITY. Any municipal corporation wholly or partially within the county of incorporation.
(9) PARTICIPATING MUNICIPALITY. Any municipality named in the articles that elects to participate in the incorporation or reincorporation of the authority.
(10) PERSON. Unless limited to a natural person by the context in which it is used, any person, including, without limitation, a private firm, a private association, a corporation, and a public person.
(11) PROBATE JUDGE. The judge of probate of the county of incorporation of an authority.
(12) PROJECT. Any land and any buildings or other improvements thereon, and all real, personal, and mixed properties deemed by an authority to be necessary or appropriate in connection therewith, whether or not now in existence, which shall be suitable for road improvement purposes. The determination of an authority that a proposed use is within this definition shall be conclusive.
(13) PUBLIC PERSON. The state and any county, municipal corporation, agency, subdivision thereof, instrumentality thereof, or similar person.
*(Act 2021-408, §1.)*
##### **§ 11-81-261** Legislative Findings of Fact and Declaration of Intent; Construction of Article {#sec-11-81-261 omnilex-key=us-al-statutes--title-11--11-81-261}
The Legislature hereby makes the following findings of fact and declares its intent to be as follows:
(1) The Legislature acknowledges the key role of public corporations in the state in promoting public interest through acquiring, enlarging, improving, expanding, owning, operating, leasing, and disposing of road improvement related properties. It has come to the attention of the Legislature that questions have been raised as to the status of certain road improvement commissions located in certain counties. It is the intent of the Legislature to promote the public health and general welfare by exercising its police power to authorize the formation of independent public corporations created jointly by counties and municipalities, and the reincorporation of existing road improvement commissions located in counties containing a Class 4 municipality, as defined by Section 11-40-12, incorporated under Chapter 44B of Title 11, having as their general purposes the promotion of road improvement purposes, facilities, and activities and having the power to issue bonds, among certain other powers.
(2) This article shall be liberally construed in accordance with the findings of fact and declaration of intent in this section.
*(Act 2021-408, §2.)*
##### **§ 11-81-262** Authorization and Procedure for Incorporation Generally {#sec-11-81-262 omnilex-key=us-al-statutes--title-11--11-81-262}
Any number of natural persons, not less than three, residing in the county of incorporation may incorporate an authority as provided in this article. The incorporators shall file a written application in accordance with Section 11-81-263.
*(Act 2021-408, §3.)*
##### **§ 11-81-263** Filing of Application for Incorporation with Probate Judge; Contents Thereof; Recordation of Application by Probate Judge; Approval or Disapproval by Governing Body of County of Incorporation and Each Participating Municipality {#sec-11-81-263 omnilex-key=us-al-statutes--title-11--11-81-263}
(a) The written application of the incorporators shall be filed with the probate judge, which application shall:
(1) Contain a statement that the incorporators propose to incorporate an authority pursuant to this article.
(2) State that each of the incorporators is a resident of the county of incorporation.
(3) Request that the governing body of the county of incorporation and each participating municipality adopt a resolution declaring that it is expedient that the proposed authority be formed, approving the written application, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with this article.
(b) The application shall include the form of articles of the proposed authority.
(c) The governing body of the county of incorporation and of each participating municipality shall review the contents of the application and the accompanying form of articles and shall adopt a resolution to deny the application or to declare that it is expedient that the proposed authority be formed, approving the form of the articles, and authorizing the incorporators to proceed to form the proposed authority by filing for record pursuant to subsection (c) of Section 11-81-264.
(d) It shall not be necessary that a resolution be published in any newspaper or posted or be offered for more than one reading.
(e) No authority may be formed until the application and the resolution have been adopted.
*(Act 2021-408, §4.)*
##### **§ 11-81-264** Contents, Signing, and Filing of Articles {#sec-11-81-264 omnilex-key=us-al-statutes--title-11--11-81-264}
(a) The articles of an authority shall state all of the following:
(1) The names of the incorporators and that each is a resident of the county of incorporation.
(2) The name of the authority, which may be a name indicating in a general way the geographic area proposed to be served by the authority and include the words “Road Improvement Authority” (e.g., “The ________________ Road Improvement Authority” or “The Road Improvement Authority of ________________,” the blank space to be filled in with a geographically descriptive word or words, but the descriptive word or words shall not preclude the authority from exercising its powers in other geographic areas).
(3) The period of the authority, which may be perpetual.
(4) The location of the principal office of the authority, located within the boundaries of the county of incorporation.
(5) That the authority is organized pursuant to this article.
(6) The prohibitions, limitations, or conditions of the authority.
(7) A minimum of three directors and the duration of their respective terms of office which may not be in excess of six years.
(8)a. The manner of appointing directors. Except as provided in Section 11-81-265, the articles may specify that the directors are to be appointed by any of the following:
1. The governing body of the county of incorporation.
2. The governing bodies of the participating municipalities.
3. The individual members of the governing bodies, based upon districts, precincts, place numbers, or another method.
4. The legislative delegation of the county of incorporation.
5. Any combination of subparagraphs 1. to 4. as the articles prescribe.
b. All persons making appointments to a board of directors of a joint road improvement authority shall coordinate their appointments so that diversity of gender, race, and geographical areas is reflective of the makeup of the county of incorporation.
(9) Any provisions not inconsistent with this article relating to the dissolution of the authority and the vesting of title to its assets and properties upon dissolution.
(10) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this article or with the laws of the state.
(b) The articles shall be signed by each of the incorporators.
(c) The authority shall constitute a public corporation under the name set forth in its articles upon the filing of record of the article with the probate judge. The recording of the articles by the probate judge shall be conclusive evidence of the due, legal, and valid incorporation of the authority. The probate judge shall record the articles in an appropriate book in his or her office. There shall be no filing fees or recording taxes due or payable on account of the filing for record of the articles.
*(Act 2021-408, §5.)*
##### **§ 11-81-265** Authorization and Procedure for Reincorporation of Existing Road Improvement Commissions; Continuation in Office of Directors; Effect of Reincorporation {#sec-11-81-265 omnilex-key=us-al-statutes--title-11--11-81-265}
(a) In any county containing a Class 4 municipality incorporated under Chapter 44B of Title 11, where there has been an attempt to create a road improvement commission by general or local legislation, but the attempted creation or incorporation is or may be invalid because of an irregularity in the procedure followed or invalidity of or defect in the statute under which the attempted creation or incorporation of the authority or board was made, a minimum of four natural persons who reside in the county in which the authority is to be incorporated and who are members of the road improvement commission may file a written application with the probate judge of the county in which the road improvement commission has been attempted to be created. The application shall:
(1) Contain a statement that the incorporators propose to reincorporate the commission into an authority pursuant to this article.
(2) State that each of the applicants is a resident of the county of incorporation and a member of the commission.
(3) Request that the county commission of the county of incorporation and of each participating municipality adopt a resolution declaring that it is expedient that the road improvement commission be reincorporated as a road improvement authority, approving the written application, and authorizing the incorporators to proceed to reincorporate the road improvement commission by filing for record articles in accordance with this article.
(b)(1) An application shall be accompanied by the form of articles of the road improvement commission proposed to be reincorporated.
(2) The articles shall specify that the manner of appointment of the board of directors shall be the same as provided for in the general or local legislation creating or attempting to create the road improvement commission.
(c) The governing body of the county of incorporation and of each participating municipality shall review the contents of the application and the accompanying form of articles and shall adopt a resolution either to deny the application or declare that it is expedient that the proposed reincorporation occur, approving the form of articles, and authorizing the incorporators to proceed to reincorporate the road improvement commission by filing for record the articles in accordance with Section 11-81-264, except that the articles shall specify the name of the road improvement commission being reincorporated.
(d) It shall not be necessary that any resolution be published in any newspaper or posted or be offered for more than one reading.
(e)(1) Upon the filing for record of the articles of the authority with the probate judge, the commission shall be reincorporated and the existence and validity of the authority validated and ratified retroactive to the initial creation or attempted creation of the commission, with all authorities and powers granted to an authority under this article. All actions taken, policies observed, contracts, obligations, agreements and understandings entered, property owned, acquired, received, or conveyed, any civil actions pending or concluded, any employee rights or benefits granted, and all other matters with respect to the road improvement commission occurring or existing prior to the date of reincorporation shall be deemed transferred, assigned, and conveyed to, and received, accepted, and adopted by, the authority as of the date of reincorporation, and shall be deemed valid, binding, effective, legal, and constitutional with respect to the authority after the date of reincorporation if those matters would have been valid, binding, legal, effective, or constitutional if occurring after the date of reincorporation under the terms of this article.
(2) Upon the filing for record of the articles of the authority with the probate judge, the proceeds of any taxes that are directed by law to be paid to the road improvement commission, including, but not limited to, those taxes directed to be paid to the road improvement commission under Act 56 of the 1953 Regular Session, as amended, shall thereafter be paid to the reincorporated road improvement authority.
(f) Upon reincorporation, the directors of the authority shall consist of those natural persons who were members of the road improvement commission prior to reincorporation, until new appointments are made under the articles of the authority.
*(Act 2021-408, §6.)*
##### **§ 11-81-266** Further Authorization and Procedure for Reincorporation of Existing Road Improvement Commissions {#sec-11-81-266 omnilex-key=us-al-statutes--title-11--11-81-266}
A road improvement commission created or attempted to be created prior to June 1, 2021, in a county containing a Class 4 municipality incorporated under Chapter 44B of Title 11, may seek authority to reincorporate pursuant to the procedure established in Section 11-81-265 if a majority of the commission adopts a resolution determining that it would be expedient for the commission to reincorporate and a group of at least four members of the commission files an application in accordance with Section 11-81-265.
*(Act 2021-408, §7.)*
##### **§ 11-81-267** Recordation of Articles by Judge of Probate; Judge of Probate to Receive No Fees in Connection with Incorporation, Reincorporation, Dissolution, Etc., of Authority {#sec-11-81-267 omnilex-key=us-al-statutes--title-11--11-81-267}
(a) The articles shall be filed with the probate judge. The proposed authority shall constitute a de jure corporation upon acceptance of filing. The acceptance of the articles for filing by the probate judge shall be conclusive of the valid incorporation of a proposed authority or reincorporation of a road improvement commission.
(b) There shall be no fees or taxes paid to or collected by the probate judge for any service rendered or work performed in connection with an authority, its incorporation, reincorporation, amendment, dissolution, or records.
*(Act 2021-408, §8.)*
##### **§ 11-81-268** Powers of Authority Vested in Board of Directors; Officers and Directors; Recordkeeping; Admissibility of Evidence; Adoption of Bylaws; Meetings; Qualifications {#sec-11-81-268 omnilex-key=us-al-statutes--title-11--11-81-268}
(a) All powers of an authority shall be vested in its board of directors.
(b) The initial board of directors of an authority shall be specified in the articles, or as provided in Section 11-81-265.
(c) The board shall elect from its own membership a chair, vice-chair, and secretary. A majority of the directors shall constitute a quorum for the transaction of business. The officers and directors shall serve for the terms provided for in the articles. A director may not receive any salary for service rendered or for any duty performed as a director. The chair, vice-chair, and secretary shall perform the duties customarily performed by the officers and as may be prescribed by the board of directors.
(d) All proceedings by the board of directors shall be in writing by the secretary of the authority and signed by at least two directors of the authority present at the proceedings. Copies of the proceedings, when certified by the secretary of the authority under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(e) A board of directors may adopt bylaws not inconsistent with this article.
(f) Notice of any meeting of the members of the board of directors shall be as provided in the bylaws or as determined by the chair of the board of directors. Notice of any meeting may be waived by any director before, at, or after the meeting and may be communicated by letter, telegraph, telex, telecopy, internet posting, or similar means. Attendance at any meeting for any purpose other than to protest the holding of the meeting shall constitute a waiver of notice. The board of directors may conduct a meeting by teleconference; provided, the authority otherwise complies with the notice requirements of this article, and provides public access by allowing access to the teleconferencing technology.
(g) The board of directors may act by a written consent, signed by all directors, which consent shall have the same effect as unanimous action taken at a duly held meeting of the board of directors, a quorum being present.
(h) The board of directors shall create a Finance Committee and a Contract Review Committee, may create one or more additional committees, and may appoint members of the board of directors to serve on each. Each committee shall have one or more members, who serve at the pleasure of the board of directors. A committee may exercise the authority of the board of directors as specified by the board of directors, or in the articles or bylaws, but may not amend the articles or adopt, amend, or repeal bylaws. Notice of any committee meeting shall be given in the same manner as provided for meetings of the board of directors. A committee may conduct a meeting by teleconference; provided, the committee provides public access by allowing access to the teleconferencing technology.
(i) A director shall be a resident of the county of incorporation. If a director ceases to be a resident of the county of incorporation, he or she shall cease to be a director, and the position shall remain vacant until a successor is appointed in accordance with the articles and this article.
*(Act 2021-408, §9.)*
##### **§ 11-81-269** Members of the Board of Directors; Terms; Meetings; Removal from Office {#sec-11-81-269 omnilex-key=us-al-statutes--title-11--11-81-269}
(a) Except as provided in Section 11-81-265, the board of directors shall be composed of the number of directors provided for in the articles, appointed as provided in the articles for the terms designated therein.
(b) All directors shall serve until their successors are appointed or until they cease to be qualified. Vacancies on the board of directors shall be filled as provided for in the articles, but any person appointed to fill a vacancy shall serve only for the unexpired portion of the term. In the event any uncertainty arises as to the terms of office of a director, the governing body or person authorized to appoint a director to the board of directors may clarify the term by adoption of an appropriate resolution or by execution of an appropriate certificate.
(c) A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board of directors may be adjourned by a majority of the directors present, or may be adjourned by a single director if the director is the only director present at the meeting. A vacancy in the membership of the board of directors may not impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times as may be provided in the bylaws of the authority and may hold other meetings at any time upon notice as may be required by the bylaws of the authority or if the bylaws make no provision for notice as determined by the chair of the board of directors. The board of directors may hold a special meeting upon call of the chair or by a majority of the directors. Any matter on which the board of directors is authorized to act may be acted upon at any regular, special, or called meeting. At the request of a director, the vote on any question before the board of directors may be taken by yeas and nays and entered upon the record. All resolutions adopted by the board of directors shall constitute actions of the authority.
(d) A director may be impeached and removed from office only in the same manner and on the same grounds provided in 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.
*(Act 2021-408, §10.)*
##### **§ 11-81-270** Amendment of Articles {#sec-11-81-270 omnilex-key=us-al-statutes--title-11--11-81-270}
(a) The articles of an authority may be amended in the manner provided in this section. The board of directors shall adopt a resolution proposing an amendment to the articles. The amendment shall be fully set forth in the resolution and may include any matters that might have been included in the original articles.
(b) After the adoption by the board of directors of a resolution proposing an amendment to the articles, the chair and the secretary of the authority shall sign and file with the governing body of the county of incorporation and of each participating municipality a written application in the name and on behalf of the authority, under its seal, requesting the county and each participating municipality to adopt a resolution approving the proposed amendment, and accompanied by a copy of the resolution adopted by the board of directors proposing the amendment to the articles. The county and each participating municipality shall review the application and adopt a resolution either denying the application or approving and authorizing the proposed amendment. A resolution need not be published or posted or offered for more than one reading.
(c) Following the adoption of a resolution approving the proposed amendment by the county commission of the county of incorporation and of each participating municipality, the chair and the secretary of the authority shall sign and file in the office of the probate judge a certificate in the name and on behalf of the authority, under its seal, reciting the adoption of resolutions by the board and by the governing body of the county of incorporation and of each participating municipality and setting forth the proposed amendment. The probate judge shall record the certificate. The amendment shall become effective upon recordation.
*(Act 2021-408, §11.)*
##### **§ 11-81-271** Powers of Authority Generally {#sec-11-81-271 omnilex-key=us-al-statutes--title-11--11-81-271}
An authority shall have the following powers:
(1) To have succession by its corporate name until dissolved as provided in this article.
(2) To institute and defend legal proceedings in any court of competent jurisdiction and proper venue; provided further, that the officers and directors of an authority may not be sued except for acts that are willful, malicious, fraudulent, in bad faith, beyond his or her authority, or under a mistaken interpretation of law.
(3) To have and to use a corporate seal and to alter the seal at its pleasure.
(4) To establish a fiscal year.
(5) To anticipate by the issuance of its bonds the receipt of any revenues that may be appropriated by or to the authority and to pledge the proceeds of the appropriations as security for the payment of the principal of and interest on its bonds.
(6) To mortgage and pledge any or all of its property or facilities or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof as security for the payment of the principal of and interest on its bonds.
(7) To make surveys and other analyses to determine suitable locations for road improvement projects and necessary facilities.
(8) To make grants of money for road improvement purposes to other public persons and to any organization which is described in 26 U.S.C. § 501(c)(3), as in effect from time to time, or as recodified, or any corresponding provision of any future revenue law.
(9) To accept gifts, grants, bequests, or devises.
(10) To accept grants of money from public persons and to enter into binding agreements with those entities, with or without consideration.
(11) To accept donations of money or real or personal or mixed property.
(12) To invest in bank deposits, United States Treasury obligations, instruments, real, personal, or mixed property, and other investments as the board of directors may determine to be appropriate and convenient to accomplish any purpose for which an authority is organized, including works of internal improvement.
(13) To appoint, contract with, and employ officers, employees, and agents including, but not limited to, engineers, accountants, attorneys, architects, construction contractors, consultants, fiscal agents, underwriters, issuers of letters of credit, depositories, banks, trustees, paying agents, transfer agents, remarketing agents, marketing agents, rating agencies, insurers of its securities, guarantors of its securities, or providers of other forms of credit enhancement for its securities as an authority may require or deem appropriate for the carrying out of its corporate purposes and the exercise of its powers.
(14) To acquire, whether by purchase, exchange, gift, lease, or otherwise, all real and personal property that the board of directors deems necessary for the purpose of the authority; to improve roads and road maintenance facilities, including the improvement of roads by the construction of buildings, facilities, roads, curbing, gutters, drainage, sewerage, utilities, or grading.
(15) To enter into leases of real or personal property with a person.
(16) To provide for insurance as the board of directors may deem advisable.
(17) To enter into a management agreement or agreements with a person for the management of any road improvement facilities.
(18) To grant privileges, licenses, or permits for the operation of any public accommodation facilities.
(19) To assume obligations secured by a lien on, or payable out of, or secured by a pledge of, the revenues and receipts from projects, or any part thereof that may be acquired, and obligation assumed to be payable solely out of the revenues and receipts from any projects, or part thereof.
(20) To enter into contracts, agreements, options, leases, deeds, mortgages, and other instruments, and to take other actions as may be necessary or convenient to accomplish any purpose for which an authority is organized or to exercise any power expressly granted under this article.
*(Act 2021-408, §12.)*
##### **§ 11-81-272** Issuance and Sale of Bonds {#sec-11-81-272 omnilex-key=us-al-statutes--title-11--11-81-272}
An authority may sell at public or private sale and issue bonds as provided in Section 11-81-273 for the purposes authorized in Section 11-81-271.
*(Act 2021-408, §13.)*
##### **§ 11-81-273** Execution of Bonds and Interest Coupons; Form, Terms, Denominations, Etc., of Bonds; Validation of Bonds; Sale; Refunding Bonds {#sec-11-81-273 omnilex-key=us-al-statutes--title-11--11-81-273}
(a) Bonds of an authority shall be signed by the chair and attested by the secretary, the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds shall be signed by the chair; provided that a facsimile of the signature of the officers may be printed or otherwise reproduced on any bonds in lieu of being manually subscribed. A facsimile of the seal of the authority may be printed or otherwise produced on any bonds in lieu of being manually affixed thereto, and a facsimile of the chair’s signature may be printed or otherwise reproduced on any interest coupons in lieu of being manually subscribed, provided, that the bonds have been manually authenticated by a transfer agent of the bond issue. Delivery of the bonds executed shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds.
(b) Any bonds may be executed and delivered by the authority and may be in such form and denominations, of the tenor and maturities, bear rate or rates of interest, be payable at the times and evidenced in a manner, and may contain other provisions not inconsistent with this article as may be provided by the resolution or resolutions of the board of directors under which the bonds are authorized to be issued. A bond may not have a specified maturity date later than 40 years after its date of execution. A bond may be made subject to redemption at the option of an authority at such times and after notice and on conditions and at redemption price or prices as may be provided in the resolution or resolutions under which it is authorized to be issued. The bonds may bear interest at a fixed rate, at a rate that adjusts in accordance with an independent standard, such as the prime or base lending rate of a bank or published rates for other securities, or may bear interest at rates which may be adjusted to a rate sufficient, in the opinion of any remarketing agent appointed by the authority, to make the bonds have a fair market value or funding value not less than the principal amount of the bonds or other amount as may be specified in the proceedings authorizing the issuance of bonds. The authority may issue “tender” bonds or similar bonds and may enter into appropriate remarketing agreements with respect to any bonds and the determination of the rate of interest borne by the bonds.
(c) Upon the adoption by the board of directors of a resolution providing for the issuance of bonds, an authority may publish once a week for two consecutive weeks, in a newspaper of general circulation published in the county of incorporation a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the authority: “_____________________, a public corporation organized under the laws of the State of Alabama, on the ____ day of _____________, authorized the issuance of not more than $____________ principal amount of [revenue], [general obligation], or [other appropriate designation] bonds of the authority for purposes authorized in the act of the Legislature of Alabama under which the authority was organized. Any action or proceeding questioning the validity of the bonds, any pledge or mortgage to secure, any lease or sale of any project to be financed by the bonds, or the proceedings authorizing the bonds shall be commenced within 20 days after the first publication of this notice.” Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of the bonds or the validity of any pledge or mortgage made therefor shall be commenced within 20 days after the first publication of the notice. After the expiration of the period, no action, counterclaim, setoff, or defense questioning or attacking the validity of the proceeding or of the bonds shall be asserted, nor shall the validity of the proceedings of the bonds be open to question in any court on any ground whatsoever, except in an action or proceeding commenced within the period.
(d) Subject to the provisions and limitations contained in this article, an authority may sell and issue refunding bonds for the purpose of refunding any outstanding matured or unmatured bonds. Refunding bonds may be subrogated and entitled to all priorities, rights, and pledges to which the bonds refunded were entitled.
(e) An authority may pay out of the proceeds of the sale of its bonds attorneys’ fees and the other expenses of issuance which a board of directors may deem necessary and advantageous in connection with the issuance of bonds.
*(Act 2021-408, §14.)*
##### **§ 11-81-274** Security for Bonds {#sec-11-81-274 omnilex-key=us-al-statutes--title-11--11-81-274}
(a) In the discretion of the board of directors of an authority, any bonds may be secured by an indenture between an authority and a trustee, which may be a trust company or bank having trust powers, whether the trust company or bank is located within or outside of the state. In any indenture or resolution providing for the issuance of bonds, an authority may pledge, for payment of the principal of and the interest on such bonds, any of its revenues to which its rights exist or may thereafter come into existence, and may assign, as security for payment, any of its leases, franchises, permits, and contracts. In any indenture, an authority may mortgage any properties, including any that may be thereafter acquired by it, and may provide that in the event of a default in payment of the bonds secured thereby or in the event of default with respect to any agreement contained therein, the mortgage may be foreclosed either by sale at public outcry or by judicial proceedings. Any pledge of revenues shall be valid and binding from the time it is made, and the revenues pledged and thereafter received by the authority shall immediately become subject to the lien of the pledge without any physical delivery thereof or further act. The lien of such a pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have actual notice thereof, provided any indenture has been recorded in the office of the probate judge, regardless of compliance with the Alabama Uniform Commercial Code. In any indenture or resolution authorizing the issuance of bonds and pledging for the benefit thereof revenues from any one or more projects, the authority may include provisions customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection, segregation, and application of any rental or other revenue due or to become due to the authority, the terms to be incorporated in any lease agreement respecting any property of the authority, the maintenance and insurance of any building, structure, or other property owned by the authority, the creation and maintenance of special funds from any revenue of the authority, and the rights and remedies available in the event of default to the holder of the bonds or the trustee under the indenture, all as the board of directors deem advisable and which are not in conflict with this section.
(b) If an authority defaults in payment of the principal of or the interest on the bonds or in any of the agreements on the part of an authority that may properly be included in any indenture securing the bonds or in any resolution authorizing their issuance, a holder of the bonds or any of the coupons, or the trustee under any indenture if authorized in indenture, in addition to any other remedies herein provided or otherwise available, by suit, action, mandamus, or other proceedings, may enforce payment of the principal or interest and compel performance of all duties of the authority, and shall be entitled to the appointment of a receiver possessing all the powers of a receiver necessary or appropriate for the operation and maintenance of the property of the authority covered by the indenture or resolution, and the collection, segregation, and application of revenues therefrom. The indenture or any resolution may contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Act 2021-408, §15.)*
##### **§ 11-81-275** Disposition of Funds; Negotiability of Bonds; Exemption from Taxation; Security; Investment in Bonds {#sec-11-81-275 omnilex-key=us-al-statutes--title-11--11-81-275}
(a) The proceeds from the sale of any bonds shall be applied as provided in the proceedings in which the bonds are authorized to be issued, including, without limitation, the payment of all legal, fiscal, and recording fees and expenses incurred in connection with the authorization, sale, and issuance of the bonds and, if provided in the proceedings authorizing their issuance, interest on the bonds; or, if only a part of any issue of bonds is issued for acquisition purposes, interest on that portion of the bonds of that issue that is issued to pay acquisition costs, for a reasonable period prior to and during the time required for the acquisition, construction, and equipping of road improvement facilities. An authority may provide in the proceedings authorizing the issuance of bonds for the funding of a debt service reserve or a replacement and extension reserve from the proceeds of its bonds.
(b) All contracts made by an authority and all bonds shall be solely and exclusively obligations of an authority and shall not constitute or create an obligation or debt of any other public person except as provided in subsection (c).
(c) A county or municipality may pledge its full faith and credit toward the retirement of any bonds or other evidences of indebtedness issued by an authority under this article.
(d) Bonds shall be construed to be negotiable instruments even if payable solely from only a specified source.
(e) Bonds issued by an authority and the income therefrom shall be exempt from all taxation in the state.
(f) Bonds issued by an authority may be used by the holder thereof as security for any funds belonging to any public person in any instance where security for such deposits may be required by law.
(g) Unless otherwise directed by a court having jurisdiction thereof or the document that is the source of its authority, a trustee, executor, administrator, custodian, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers now or hereafter conferred by law and with the exercise of reasonable business prudence, invest trust or fiduciary funds in bonds.
(h) Neither a public hearing nor consent of any other public person may be a prerequisite to the issuance of bonds by an authority.
(i) The bonds shall be legal investments for funds of the Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund.
(j) Public persons may invest in any bond issued by an authority.
*(Act 2021-408, §16.)*
##### **§ 11-81-276** Exemption from Usury and Interest Laws {#sec-11-81-276 omnilex-key=us-al-statutes--title-11--11-81-276}
An authority shall be exempt from all laws of the state now or hereafter governing usury or prescribing or limiting interest rates, including, without limitation, Chapter 8 of Title 8.
*(Act 2021-408, §17.)*
##### **§ 11-81-277** Exemptions from Taxation {#sec-11-81-277 omnilex-key=us-al-statutes--title-11--11-81-277}
All properties of an authority, whether real, personal, or mixed, and the income therefrom, all bonds and other securities issued by an authority and the coupons applicable thereto and the income therefrom, and all indentures and other instruments executed as security therefor, all leases made pursuant to this article and all revenues derived from any such leases, and all deeds and other documents executed by or delivered to an authority shall be exempt from any and all taxation by any public person, including, without limitation, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the probate judge in connection with the amendment of its articles or the recording of any document. The gross proceeds of the sale of any property used in a road improvement project or the construction and equipping of any road improvement facility for an authority, regardless of whether or not the sale is to an authority or any contractor or agent thereof, shall be exempt from the sales tax imposed by Article 1 of Chapter 23 of Title 40, and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any such sale by a public person; and any property used in a road improvement project or the construction and equipping of any road improvement facility for an authority, regardless of whether the property has been purchased by an authority or any contractor or agent thereof, shall be exempt from the use tax imposed by Article 2 of Chapter 23 of Title 40, and all other use and similar excise taxes now or hereafter levied on or with respect to property by a public person.
*(Act 2021-408, §18.)*
##### **§ 11-81-278** Transfer of Funds and Assets to Authority {#sec-11-81-278 omnilex-key=us-al-statutes--title-11--11-81-278}
Any public person may transfer and convey to an authority, with or without consideration any properties, real, personal, or mixed, and all funds and assets, tangible or intangible, that may be owned by a public person or that may be jointly owned by any two or more thereof, and any funds owned or controlled by a public person or jointly by any two or more thereof, whether or not the property or funds are considered necessary for the conduct of the governmental or public functions, if any, of a public person. The transfer or conveyance shall be authorized by an ordinance or resolution duly adopted by the governing body of a public person. The ordinance or resolution need not be published or posted and need not be offered for more than one reading.
*(Act 2021-408, §20.)*
##### **§ 11-81-279** Dissolution of Authority; Title to Property of Authority to Vest in County of Incorporation Upon Dissolution of Authority Unless Otherwise Provided {#sec-11-81-279 omnilex-key=us-al-statutes--title-11--11-81-279}
(a) At any time when no bonds of an authority are outstanding, the authority may be dissolved by the adoption of a resolution by the board of directors recommending dissolution and by the approval of the dissolution by the governing body of the county of incorporation and each participating municipality and the adoption of a resolution to the effect that the county and each participating municipality concur. The resolution need not be published or posted and need not be offered for more than one reading. Upon the dissolution the chair and secretary of the dissolved authority shall execute articles of dissolution reciting that the resolutions have been adopted and that the authority has been dissolved. The articles of dissolution shall be filed with the probate judge, who shall record the dissolution.
(b) Upon dissolution of an authority, title to all its property shall be vested in the public persons in its articles, or if no specification exists, in the county of incorporation.
*(Act 2021-408, §21.)*
### **Chapter 81A** Issuance of Securities in Anticipation of Receipt of Grants
##### **§ 11-81A-1** Definitions {#sec-11-81a-1 omnilex-key=us-al-statutes--title-11--11-81A-1}
As used in this chapter, the following words and terms shall have the following respective meanings:
(1) CONDITIONS OF A GRANT. The terms and conditions upon which a grant is made by a donor.
(2) COUNTY. Any county in the State of Alabama.
(3) DONOR. The United States of America, or the state, or any county in the state or any municipality or any department, division, board, bureau, institution, or agency of any of the foregoing, or any person, firm or corporation, institution, foundation, or other agency or any combination of any two or more such donors.
(4) GOVERNING BODY. The council, commission, board of directors, or other group or body which governs, controls, or makes decisions for a grantee.
(5) GRANT. Any gift, grant, appropriation, donation, or advance by any donor, whether absolute or conditional, for any purpose.
(6) GRANTEE. Any municipality, or any department, board, bureau, commissioner, or agency of any municipality, whether incorporated or not, acting on behalf of the municipality, or any public corporation, to which a grant is to be made.
(7) MUNICIPALITY. Any city or town incorporated under the laws of the state.
(8) PUBLIC CORPORATION. Any board, authority, or other municipal public corporation incorporated with the approval of, or the directors of which are elected or appointed by, the governing body of a municipality. A city board of education shall be considered a public corporation within the meaning of this chapter.
(9) SECURITIES. One or more bonds, notes, warrants, or certificates of indebtedness of a municipality or public corporation.
(10) STATE. The State of Alabama.
*(Acts 1980, No. 80-697, p. 1400, §1.)*
##### **§ 11-81A-2** Power and Authority of Grantees {#sec-11-81a-2 omnilex-key=us-al-statutes--title-11--11-81A-2}
Each grantee shall have the power, and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To apply to any donor for a grant and to pay the expenses involved in making such application;
(2) To accept and receive grants from any donor;
(3) To expend or apply the proceeds of any grant for the purpose or purposes for which the same is made;
(4) To agree to comply with the conditions of the grant;
(5) To pay over or donate or loan to any board, authority, or agency of the grantee, or to any municipality, or to any public corporation, or to any county or counties in the state or to the state, or to any board, bureau, authority, institution, or agency of the grantee, or of such public corporation, or of such county or counties, or of the state or to any person, firm or corporation, any grant proceeds authorized or permitted to be so paid over, donated or loaned by the conditions of the grant.
*(Acts 1980, No. 80-697, p. 1400, §2.)*
##### **§ 11-81A-3** Power and Authority of Municipalities, Counties, and Public Corporations {#sec-11-81a-3 omnilex-key=us-al-statutes--title-11--11-81A-3}
Each municipality or county and each public corporation shall have the power and, when approved by its governing body, the authority, to do or perform any one or more of the following:
(1) To anticipate the receipt of any grant either by loan or by assignment or both; to issue securities to evidence such loan or assignment; to make such securities the general obligation indebtedness of the issuer or the obligation of the issuer limited or restricted as to source of payment and security to all or a portion of the proceeds of the grant or to any revenue, receipts, or income or any special tax or license of the issuer, or any one or more thereof.
(2) To pledge to the holders of any securities issued pursuant to this chapter the full faith and credit of the issuer and in addition to, or instead of such pledge, to pledge and grant a security interest in all or a portion of the proceeds of the grant or any revenue, receipts or income or any special tax or license of the issuer, or any one or more thereof; or to mortgage or grant a security interest in any property of the issuer as security for any such securities, as the governing body of the issuer may determine.
(3) To pledge, assign, and grant a security interest in all or any part of the proceeds of any grant to the holders of any securities issued by the municipality, county or the public corporation for any lawful purpose under the authority of any law other than this chapter.
*(Acts 1980, No. 80-697, p. 1400, §3.)*
##### **§ 11-81A-4** Limitations and Amplification of Securities Authorization {#sec-11-81a-4 omnilex-key=us-al-statutes--title-11--11-81A-4}
Securities issued under the authority of this chapter shall mature at such time or times as the governing body of the issuer shall determine, not later than the date on which the last installment of the grant is reasonably expected to be received. The total principal amount of securities which may be issued in respect of a grant shall not exceed the reasonably estimated proceeds of the grant. The determination of the governing body of the issuer of the date on which the last installment of the grant will be received and the amounts of the proceeds of any grant to be received shall be conclusive. Securities issued under the authority of this chapter shall be of such denomination and tenor, shall contain such covenants and restrictions and provisions and shall be payable at such place or places, within or without the state, as the governing body of the issuer shall determine. Such securities shall be executed in the name of the issuer by the mayor or other chief executive officer and attested by the clerk or secretary thereof, with the seal of the issuer impressed thereon, but coupons for interest, if interest is evidenced by coupons, need be signed only by the mayor or other chief executive officer. Execution by facsimile signature and seal in the manner authorized by law for bonds of a municipality or county may be authorized by the governing body.
*(Acts 1980, No. 80-697, p. 1400, §4.)*
##### **§ 11-81A-5** Exemption of Securities from Taxation {#sec-11-81a-5 omnilex-key=us-al-statutes--title-11--11-81A-5}
All securities issued by authority of this chapter and the interest thereon shall be exempt from all taxation in the state.
*(Acts 1980, No. 80-697, p. 1400, §5.)*
##### **§ 11-81A-6** Legal Investment Status of Securities {#sec-11-81a-6 omnilex-key=us-al-statutes--title-11--11-81A-6}
Securities issued under the authority of this chapter shall be securities in which the state, the grantee, all counties, and political subdivisions of this state, their officers, boards, departments or agencies, and all banks, bankers, trust companies, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies and insurance associations and other persons carrying on an insurance business, all administrators, executors, guardians, trustees, and other fiduciaries, and all other persons who now are or may hereafter be authorized to invest in securities issued by a municipality or county, may properly and legally invest any funds, including capital belonging to them or within their control.
*(Acts 1980, No. 80-697, p. 1400, §6.)*
##### **§ 11-81A-7** Effect of Chapter {#sec-11-81a-7 omnilex-key=us-al-statutes--title-11--11-81A-7}
This chapter is intended to grant additional authority to grantees, municipalities, counties, and public corporations and shall not be considered to repeal, restrict, or modify any law now in effect or hereafter enacted.
*(Acts 1980, No. 80-697, p. 1400, §7.)*
### **Chapter 82** Redemption of Securities
##### **§ 11-82-1** Definitions {#sec-11-82-1 omnilex-key=us-al-statutes--title-11--11-82-1}
As used in this chapter, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) SECURITIES. All types of bonds, warrants, certificates of indebtedness, notes and all evidences of indebtedness issued by any county or municipality in this state.
(2) OPTION TO REDEEM. Any option retained by the county or municipality in the proceedings authorizing the issuance of securities whereunder such county or municipality has the option of calling for redemption or of paying on a specified date or dates at a specified price or prices all or any part of such securities as may be provided in such proceedings.
(3) REDEMPTION DATE. The date on which securities shall be made subject to payment pursuant to the exercise by the issuing county or municipality of any option to redeem retained by such county or municipality in the proceedings whereunder such securities are authorized to be issued.
*(Acts 1945, No. 395, p. 613, §1.)*
##### **§ 11-82-2** Retention of Option to Redeem - Generally {#sec-11-82-2 omnilex-key=us-al-statutes--title-11--11-82-2}
Any county or municipality in this state which may hereafter issue securities may, if such action shall be deemed advisable by the governing body of such county or municipality, retain in the proceedings of such governing body authorizing the issuance of such securities an option to redeem all or any part thereof as may be specified in such proceedings at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of such securities.
*(Acts 1945, No. 395, p. 613, §2.)*
##### **§ 11-82-3** Retention of Option to Redeem - Securities Maturing More Than 10 Years After Date {#sec-11-82-3 omnilex-key=us-al-statutes--title-11--11-82-3}
Any county or municipality in this state which may hereafter issue securities having a stated maturity more than 10 years after the date thereof shall retain in the proceedings of its governing body authorizing the issuance of such securities an option to redeem at the expiration of the tenth year following the date of such securities and on any interest payment date subsequent thereto all or any part of such securities having stated maturities subsequent to the expiration of the tenth year after their date at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and briefly recited in the face of such securities.
*(Acts 1945, No. 395, p. 613, §3.)*
##### **§ 11-82-4** Limitation on Redemption Prices {#sec-11-82-4 omnilex-key=us-al-statutes--title-11--11-82-4}
The price or prices at which any redemption whatsoever shall be made shall not exceed the par value of the securities with respect to which such option may be exercised plus accrued interest thereon to the redemption date and plus a premium which shall not exceed 12 months’ interest on such securities, computed at the rate which such securities would bear on the redemption date as specified therein if such option had not been exercised.
*(Acts 1945, No. 395, p. 613, §4.)*
##### **§ 11-82-5** Option to Redeem to Be Provided in Proceedings for Issuance of Securities {#sec-11-82-5 omnilex-key=us-al-statutes--title-11--11-82-5}
Nothing contained in this chapter shall be construed to confer on any county or municipality any right or option to redeem any securities heretofore or hereafter issued except as is or may be provided in the proceedings under which such securities were or shall be issued.
*(Acts 1945, No. 395, p. 613, §7.)*
##### **§ 11-82-6** Applicability of Provisions of Chapter {#sec-11-82-6 omnilex-key=us-al-statutes--title-11--11-82-6}
The provisions of Sections 11-82-3 and 11-82-4 shall not apply, however, to any securities which have been authorized to be issued by any county or municipality by resolution or ordinance duly adopted by the proper governing body prior to July 7, 1945 or which have been authorized to be issued at any election held prior to July 7, 1945 at which the ballot used contained provisions for redemption different from those specified in Sections 11-82-3 and 11-82-4, and nothing contained in this chapter shall prevent the issuance of any such securities so authorized prior to July 7, 1945.
*(Acts 1945, No. 395, p. 613, §5.)*
##### **§ 11-82-7** Validation of Certain Proceedings {#sec-11-82-7 omnilex-key=us-al-statutes--title-11--11-82-7}
All proceedings heretofore taken or adopted pursuant to which securities have heretofore been issued or are authorized to be issued hereafter by any county or municipality in this state, in which proceedings an option to redeem was reserved by the issuing county or municipality on the terms and conditions set out in such proceedings, are hereby validated.
*(Acts 1945, No. 395, p. 613, §6.)*
### **Chapter 83** Apportionment of Road and Bridge Taxes Between Counties and Municipalities
##### **§ 11-83-1** Maintenance of Municipal Streets Declared County Matter {#sec-11-83-1 omnilex-key=us-al-statutes--title-11--11-83-1}
The maintenance of streets of municipalities in the State of Alabama is declared to be a county matter.
*(Acts 1909, No. 183, p. 303; Code 1923, §6773; Code 1940, T. 12, §129.)*
##### **§ 11-83-2** One Half of Road Tax, Etc., Collected in County to Be Paid to Municipalities Therein {#sec-11-83-2 omnilex-key=us-al-statutes--title-11--11-83-2}
The county commission, where there is levied a road tax, general or special, or where by the tax levy a portion of the tax is levied for or devoted to the purpose of constructing, repairing, or maintaining roads and highways of any description in the county, except the special tax authorized by Section 215 of the Constitution, shall pay over each year to each municipality therein one half of the money collected on such road tax on the property located in such municipality.
*(Acts 1909, No. 183, p. 303; Code 1923, §6774; Code 1940, T. 12, §130.)*
##### **§ 11-83-3** Taxes Paid Over to Municipalities to Be Used Exclusively for Maintenance of Streets {#sec-11-83-3 omnilex-key=us-al-statutes--title-11--11-83-3}
Such sums when paid over to the municipalities shall be used exclusively for maintaining the streets in the corporate limits of such municipality, but if the tax is levied for any particular class of roads or highways, such sums shall be used on the streets of the municipality for roads of a similar character to such roads or highways.
*(Acts 1909, No. 183, p. 303; Code 1923, §6775; Code 1940, T. 12, §131.)*
### **Chapter 84** Acquisition and Administration of Forest Lands
##### **§ 11-84-1** Authorized {#sec-11-84-1 omnilex-key=us-al-statutes--title-11--11-84-1}
Each of the several counties, cities, and towns in the State of Alabama, acting through its county commission, council, or other governing body, is hereby authorized and empowered to acquire by purchase, gift, or bequest such tracts of land suitable for the growth of trees as may be available and as such governing body may deem it wise to so acquire and to administer the same as well as any lands now owned by any such county, city, or town and suitable for the growth of trees as county, city, or town forests.
*(Acts 1945, No. 220, p. 343, §1.)*
##### **§ 11-84-2** Provision of Seedlings, Transplants, Technical Assistance, Etc {#sec-11-84-2 omnilex-key=us-al-statutes--title-11--11-84-2}
The State Forestry Commission is hereby authorized and it shall have the power to supply from its forest tree nursery or nurseries such forest tree seedlings and transplants as may be necessary and suitable for reforesting any part or all of any lands so acquired or now owned and so administered by any such county, city, or town and to furnish such technical assistance and supervision as the said State Forestry Commission may deem necessary for the proper management and administration of such lands and forest thereon free of cost to the counties, cities, and towns; provided, that the respective counties, cities, and towns shall agree to administer such lands in accordance with the practices and principles of scientific forestry as determined by said State Forestry Commission.
*(Acts 1945, No. 220, p. 343, §2.)*
### **Chapter 85** Regional Planning and Development
#### **Article 1** Regional Planning Commissions Generally
##### **§ 11-85-1** Establishment of Region and Creation of Regional Planning Commission {#sec-11-85-1 omnilex-key=us-al-statutes--title-11--11-85-1}
The planning commission of any municipality or the county commission of any county or any 100 citizens by signed petition may apply to the Governor for the establishment of a region for planning purposes and the appointment of a regional planning commission for such region. The Governor shall hold at least one public hearing upon any such application or petition, the time and place of which he shall officially proclaim. If the Governor finds that by reason of urban growth and development not corresponding to existing municipal boundary lines or by reason of other developments or trends in the growth and distribution of population, commerce and industry or by reason of topographic or other conditions two or more separate municipalities or the territory of one or more municipalities and neighboring nonmunicipal territory have overlapping and interrelated or common problems of such nature as not to be capable of intelligent, economical, and adequate solution by means of the separate planning of each separate political unit and require for such solution a general plan of the physical development of the entire area of such municipalities or territories as a whole and that, consequently, it is to the public interest that a region be established for planning purposes, he shall grant the application and shall define the boundaries of such region and appoint a regional planning commission.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §809.)*
##### **§ 11-85-2** Composition; Qualifications, Appointment, Terms of Office, Compensation, and Removal of Members; Vacancies {#sec-11-85-2 omnilex-key=us-al-statutes--title-11--11-85-2}
The regional planning commission shall consist of nine persons. Members shall be appointed for six years; except, that the respective terms of seven of the members first appointed shall be one year, two years, two years, three years, four years, four years and five years; provided, that, if at the time of his appointment the appointee is a public officer or in the public service of the state or any of its political subdivisions and his incumbency as such public officer or servant expires previous to the term for which he is appointed on the regional planning commission, then his term on the commission shall terminate with the expiration of his incumbency as such public officer or servant, unless it is extended by the Governor, in which case such extension shall be for the remainder of the term for which he was originally appointed. The members shall serve without compensation but shall be paid their necessary expenses incurred in the performance of their duties. They may, after a public hearing, be removed by the Governor for inefficiency, neglect of duty, or malfeasance in office, and he shall file a written statement of his reasons therefor. Vacancies shall be filled by the Governor for the unexpired term.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §809.)*
##### **§ 11-85-3** Organization, Staff, Procedure, Etc.; Appropriation and Expenditure of Funds {#sec-11-85-3 omnilex-key=us-al-statutes--title-11--11-85-3}
(a) Except as otherwise provided in this article, the provisions of Sections 11-52-4, 11-52-5, and 11-52-6 relative to organization, rules, staff, finances, procedure, and miscellaneous powers and duties of municipal planning commissions shall, so far as applicable, apply to regional planning commissions.
(b) The amount which a regional planning commission may expend in any year shall be such as may be determined by said regional planning commission, subject to approval by the Governor, who shall fix the proportion of such expenditure to be borne by the respective municipalities, counties, and other taxing districts and political subdivisions within the region. The council or other governing body of each such municipality, the county commission of each such county and the appropriating body of each such taxing district or political subdivision within the region are hereby authorized to appropriate their respective shares of such expenditures. The sums so appropriated shall be paid into the treasury and shall be paid out on certificate of the regional planning commission.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §810.)*
##### **§ 11-85-4** Adoption, Etc., of Master Plan for Physical Development of Region by Commission; Contents and Purpose of Plan {#sec-11-85-4 omnilex-key=us-al-statutes--title-11--11-85-4}
Any regional planning commission is hereby authorized and empowered to make, adopt, amend, extend, and add to a master regional plan for the physical development of its region. Such plan shall be based on comprehensive studies of the present and future development of the region with due regard to its relation to neighboring regions and the state as a whole and to neighboring states.
Such plan, including maps, charts, diagrams, and descriptive matter, shall show the commission’s recommendations for the physical development of the region and may include, among other things, the general location, extent and character of streets, parks and other public ways, grounds and open spaces, public buildings and properties, and public utilities (whether publicly or privately owned or operated) which affect the development of the region as a whole or which affect more than one political subdivision of the state within the region, the general location of forests, agricultural, and open development areas for purposes of conservation, food and water supply, sanitary and drainage facilities, or the protection of future urban development and a zoning plan for the control of the height and area or bulk, location, and use of buildings and premises and of the density of population.
Such master plan shall be made with the general purpose of guiding and accomplishing a coordinated, adjusted and harmonious development of the region and of public improvements and utilities which do not begin and terminate within the boundaries of any single municipality or which do not relate exclusively to the development of any single municipality and which will, in accordance with the present and future needs of the region and the state, best promote health, safety, morals, order, convenience, prosperity and general welfare, as well as efficiency and economy in the process of development.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §811.)*
##### **§ 11-85-5** Certification of Plan to Governor and to Municipalities, Counties, Etc., Within Region {#sec-11-85-5 omnilex-key=us-al-statutes--title-11--11-85-5}
The regional planning commission, after adopting the regional plan, shall certify a copy thereof to the Governor, to the planning commission of each municipality within the region, to the council of each municipality not having a planning commission, to the county commission of each county wholly or partly included in the region and to other organized taxing districts or political subdivisions wholly or partly included in the region.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §812.)*
##### **§ 11-85-6** Adoption of Plan by Municipal Planning Commission; Certification of Proposed Amendments to Adopted Plan to Regional Planning Commission for Approval, Etc {#sec-11-85-6 omnilex-key=us-al-statutes--title-11--11-85-6}
(a) Such plan may be adopted by the municipal planning commission of any municipality within the region to which it is certified by the regional planning commission. Such adoption shall be in accordance with the procedure specified in Sections 11-52-8, 11-52-9, and 11-52-10 for the adoption of plans by municipal planning commissions. When thus adopted, it shall thereupon have the same force and effect within such municipality as plans made and adopted by municipal planning commissions and shall be deemed an original municipal plan or an amendment of or addition to the municipal plan.
(b) Before adopting any amendment of the municipal plan which would constitute a violation of or departure from the regional plan certified to the municipal planning commission by the regional planning commission, the municipal planning commission shall submit such proposed amendment to the regional planning commission, which latter commission shall certify to the municipal commission its approval, disapproval, or other opinion concerning the proposed amendment.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §813.)*
##### **§ 11-85-7** Proposed Construction of Streets, Public Buildings, Utilities, Etc., to Be Submitted for Approval of Commission After Adoption of Master Plan; Overruling of Commission {#sec-11-85-7 omnilex-key=us-al-statutes--title-11--11-85-7}
After the adoption of the regional plan by the regional planning commission, no street, park, or other public way, ground or open space, public building or other public structure and public utility, whether publicly or privately owned or operated, shall be constructed or authorized in nonmunicipal territory within the region until the location, character, and extent thereof shall have been submitted to and approved by the regional planning commission of the region. This prohibition shall not be interpreted as requiring the approval by the regional planning commission of any subdivision falling within the subdivision jurisdiction of a municipal planning commission as defined in Section 11-52-30, and duly approved by such municipal planning commission as provided in Section 11-52-32. In case of disapproval by the regional planning commission, such disapproval may be overruled by the board, commission, body or officer in which or in whom the power to finally determine such location, character and extent is reposed by law by a vote, in the case of any such board, commission or body, of not less than two thirds of its membership. A statement of its or his reason for any such overruling shall be spread upon the minutes or records of the board, commission, body or officer.
*(Acts 1935, No. 534, p. 1126; Code 1940, T. 37, §814.)*
#### **Article 2** Regional Planning Commissions for Comprehensive Advisory Planning and Research
##### **§ 11-85-20** Definitions {#sec-11-85-20 omnilex-key=us-al-statutes--title-11--11-85-20}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) GOVERNMENTAL UNIT. Counties and municipalities.
(2) GOVERNING BODY. The chief legislative body of a governmental unit.
(3) MUNICIPALITY. Such term shall include cities and towns.
(4) REGION. All the geographical area contained within the aggregate territorial limits of all governmental units participating in the establishment of a region for planning as provided in this article.
(5) ADVISORY PLANNING. Continuing and systematic studies of the land economics and land policies of a region in terms of social and economic betterment of said region, together with the submission of interim and final results of said systematic and continuous studies to the governing bodies of constituent governmental units for review, adoption, rejection, or implementation thereof in whole or in part. Said term shall not be deemed, construed or held to include zoning or any other regulation of the use, disposition, alienation, ownership, improvement, or change of any land or any structures thereon within any given region, whether said regulation is sought to be accomplished by way of ordinance, resolution, rule, regulation, or any other enactment or action of whatsoever kind.
(6) COMPREHENSIVE ADVISORY PLANNING. Comprehensive studies of the present and future development of the land economics and land policies of a region, with due regard to neighboring regions and the state as a whole. Said term may include, but is not limited to:
a. Preparation, as a guide for long-range development, of advisory general physical plans with respect to the pattern and intensity of land use and the provision of public facilities, including transportation facilities, together with long-range fiscal plans for such development;
b. Advisory coordination of all related advisory plans and planned activities at both the intragovernmental and intergovernmental levels; and
c. Preparation of suggested regulatory or administrative measures in support of the foregoing for submission to the governing bodies of constituent governmental units for review, adoption, rejection,or implementation in whole or in part as said units may elect.
*(Acts 1963, No. 584, p. 1278, §1.)*
##### **§ 11-85-21** Establishment of Region for Advisory Planning and Creation of Regional Planning Commission {#sec-11-85-21 omnilex-key=us-al-statutes--title-11--11-85-21}
The governing bodies of any two or more governmental units are hereby authorized and empowered to create and establish a region for advisory planning purposes and to constitute, create, and establish a regional planning commission. Such joint creation and establishment of a region for planning purposes and of a regional planning commission shall be accomplished by ordinance or resolution separately adopted by the governing body of each governmental unit involved. Such ordinance or resolution shall be recorded in the minutes of the governing body of each such governmental unit.
*(Acts 1963, No. 584, p. 1278, §2.)*
##### **§ 11-85-22** Composition; Qualifications, Appointments, Terms of Office, and Compensation of Members; Vacancies {#sec-11-85-22 omnilex-key=us-al-statutes--title-11--11-85-22}
(a) The membership of any regional planning commission created and established under this article shall be composed of not less than three representatives of each governmental unit participating in the creation of such. In addition to said minimum representation of three, each governmental unit shall be entitled to appoint one other representative for each 50,000 people residing within the geographical and territorial limits and bounds of such governmental unit according to the most recent federal census; provided, that any commission in which any county having a population in excess of 600,000 participates shall be constituted as follows: Each governmental unit shall have only one representative, except that any city having a population of more than 300,000 shall have 20 representatives, and each county having a population of more than 600,000 shall have 10 representatives; provided further, that any commission in which any county having a population between 300,000 and 500,000 according to the most recent federal census participates shall be constituted as follows: Voting representatives from each governmental unit in such number, not less than one for each unit, as shall be agreed upon between all the governmental units forming the region and participating in the regional planning commission on a basis of representation which will give relatively equal representation to each governmental unit according to percentage of its population and its financial contribution to the cost of the commission as related to the total population of the region and the total agreed operating cost of the commission, it being understood that the assessment of operating costs to the member governmental units will be based on the population and area of each such unit as related to the whole population of the region.
(b) Each governmental unit may designate to membership ex officio, and without vote its chief planning officer or chief engineer if it has either, but not both of said officials. The voting members of each such planning commission shall be appointed by the respective governing bodies of the respective governmental units participating. No member of any regional planning commission created under this article shall receive any compensation for his or her services rendered as a member of such regional planning commission, but each such member shall be entitled to receive reimbursement for his or her actual and necessary expenses incurred in the performance of his or her duties as a member of such regional planning commission. Voting members of each regional planning commission created under this article shall be appointed for terms of four years. The terms of ex officio members shall expire with their incumbency in the offices by virtue of which they shall have been designated to membership on such regional planning commission. Vacancies occurring on any such commission shall be filled by the governing body of the governmental unit previously represented by the latest prior occupant of a particular vacant place on such commission.
*(Acts 1963, No. 584, p. 1278, §3; Acts 1969, No. 1190, p. 2226.)*
##### **§ 11-85-23** Powers and Duties {#sec-11-85-23 omnilex-key=us-al-statutes--title-11--11-85-23}
Any regional planning commission established and created under this article shall have the following powers and duties:
(1) To perform comprehensive advisory planning and research for the region for which such commission shall have been established and its urban areas or areas where rapid urbanization has occurred or is expected to occur, including those areas extending into adjoining states in instances and situations where such planning and related activities for such bi- or multi-state areas are now or hereafter may be authorized by compact or otherwise;
(2) To provide planning assistance, upon request duly evidenced by ordinance or resolution, to
a. Any city, other municipality or county;
b. Any group of adjacent communities, incorporated or unincorporated, having common or related urban planning or development problems; or,
c. Any other regional planning agency;
(3) To apply for and accept and utilize grants and assistance from the federal government or from any other public or private source which now or hereafter legally may make such grants or afford such other assistance;
(4) To contract with the federal government or with private or public sources which now or hereafter legally may contract as to such planning to receive advances or progress payments; and
(5) To adopt its own rules of procedure and order of business.
*(Acts 1963, No. 584, p. 1278, §4.)*
##### **§ 11-85-24** Article Not to Impair Right of Eminent Domain or Rights Under Franchises, Leases, Etc., of Utilities {#sec-11-85-24 omnilex-key=us-al-statutes--title-11--11-85-24}
Nothing contained in this article shall be construed to impair the right of eminent domain conferred on utilities, both public or private, or their right to exercise authority conferred by statutes, franchises, certificates of convenience and necessity, licenses, or easements.
*(Acts 1963, No. 584, p. 1278, §5.)*
#### **Article 3** Comprehensive Advisory Planning and Research by Municipal, County, Regional, Etc., Planning Commissions, Etc
##### **§ 11-85-40** Powers of Alabama Development Office and Local, Regional, and Joint Planning Commissions as to Comprehensive Advisory Planning and Research; Comprehensive Advisory Planning Defined {#sec-11-85-40 omnilex-key=us-al-statutes--title-11--11-85-40}
(a) To facilitate the solution of urban and regional planning problems and to provide for comprehensive advisory planning, including transportation planning, for the state and its cities, counties, urban areas, and regions, the Alabama Development Office, the various regional planning commissions presently authorized to be created, the various county planning commissions presently authorized to be created, the various joint planning commissions presently authorized to be created, municipalities, and the various municipal planning commissions presently authorized to be created are each and all hereby empowered and authorized, within the respective geographical areas as to which planning power has heretofore been delegated to such respective office, commissions, or other agencies to perform comprehensive advisory planning and research and other activities related thereto for urban areas and regions or areas where rapid urbanization has occurred or is expected to occur and to provide planning assistance, upon request duly evidenced by ordinance or resolution, to
(1) Any city, other municipality, or county;
(2) Any group of adjacent communities, incorporated or unincorporated, having common or related urban planning or development problems; or
(3) Any municipal, county, joint, joint county, multicounty, or regional planning agency.
(b) The Alabama Development Office, as well as each and all of the aforesaid other commissions and planning agencies, are hereby further authorized and empowered to perform comprehensive advisory planning and research and other activities related thereto for urban areas and regions or areas where rapid urbanization has occurred or is expected to occur, which said areas and regions extend into adjoining states, in instances and situations where such planning and other activities for such bistate or multistate areas is now or hereafter may be authorized by compact or otherwise.
(c) The Alabama Development Office, the various regional planning commissions presently authorized to be created, the various joint planning commissions presently authorized to be created, the various county planning commissions presently authorized to be created and the municipal planning commissions presently authorized to be created, as well as cities and other municipalities, counties, and groups of adjacent communities (incorporated or unincorporated) having common or related urban planning or development problems are authorized for the purpose of this section to perform comprehensive advisory planning, to contract with the federal government and with any public or private sources which now or hereafter legally may contract as to such planning, to receive advances or progress payments and to contract with other planning agencies, public agencies, and political subdivisions. Said office, planning commissions, and other planning agencies are also authorized and empowered to apply for and to accept and utilize grants and other assistance from the federal government or from any other public or private sources which now or hereafter legally may make such grants or afford such other assistance.
(d) The term “comprehensive advisory planning” as used in this section shall mean comprehensive studies of the present and future development of the land economics and land policies of a region, with due regard to neighboring regions and the state as a whole. Said term may include, but is not limited to:
(1) Preparation, as a guide for long-range development, of advisory general physical plans with respect to the pattern and intensity of land use and the provision of public facilities, including transportation facilities, together with long-range fiscal plans for such development;
(2) Advisory coordination of all related advisory plans and planned activities at both the intragovernmental and intergovernmental levels; and
(3) Preparation of suggested regulatory or administrative measures in support of the foregoing for submission to the governing bodies of constituent governmental units for review, adoption, rejection, or implementation in whole or part, as said units may elect.
*(Acts 1963, No. 585, p. 1281, §1.)*
#### **Article 4** Regional Planning and Development Commissions
##### **§ 11-85-50** Definitions {#sec-11-85-50 omnilex-key=us-al-statutes--title-11--11-85-50}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) GOVERNMENTAL UNIT. Counties and municipalities.
(2) GOVERNING BODY. The chief legislative body of a governmental unit.
(3) MUNICIPALITY. Cities or towns.
(4) REGION. All the geographical area contained within the aggregate territorial limits of all governmental units participating in a regional planning and development commission as provided in this article.
(5) DISTRICT. A geographical area designated by the Governor as provided in this article.
*(Acts 1969, No. 1126, p. 2084, §1.)*
##### **§ 11-85-51** Designation of State Planning and Development Districts by Governor Generally; Designation of Single County State Planning and Development Districts {#sec-11-85-51 omnilex-key=us-al-statutes--title-11--11-85-51}
(a) The Governor may, from time to time as he deems appropriate and necessary, define and designate a state planning and development district by executive order.
(b) In defining boundaries of state planning and development districts, the Governor shall consult with the governmental units concerned and shall consider such factors as community of interest and homogeneity; geographic features and natural boundaries; patterns of communication and transportation; patterns of urban development; total population and population density; similarity of social and economic problems; boundaries of existing regional planning commissions and councils of government; existing state functional planning areas and the utility of proposed boundaries for provision of governmental services. Districts should be as large as practicable consistent with the above factors and except as provided in subsection (d) of this section, shall include at least three contiguous counties and contain a population of at least 100,000. No county shall be divided in forming a district.
(c) The Governor may change boundaries of districts as required to reflect changing conditions or otherwise to fulfill the purposes of this article observing the criteria and procedures stated in subsection (b) of this section.
(d) Any provision of this section to the contrary notwithstanding, the Governor may define and designate single county state planning and development districts within any county having a population between 93,000 and 100,000 persons according to the most recent federal decennial census.
*(Acts 1969, No. 1126, p. 2084, §2; Acts 1973, No. 692, p. 1039, §1.)*
##### **§ 11-85-52** Formation of Regional Planning and Development Commissions {#sec-11-85-52 omnilex-key=us-al-statutes--title-11--11-85-52}
(a) Generally. At any time subsequent to the designation of a state planning and development district pursuant to Section 11-85-51, governmental units within the district acting through their governing bodies by ordinance or resolution may adopt a written agreement for the formation of a regional planning and development commission and may petition the Governor to certify such a commission for a region located entirely within a state planning and development district and consisting of at least three contiguous counties and containing a population of at least 100,000. Governmental units so petitioning must represent at least a majority of the population within the proposed region. No county shall be divided in forming a region. The Governor may, after consultation with the governing bodies of the governmental units involved, amend petitions to include additional counties to assure that the objectives of this article are furthered and that no county or city will be precluded from participation in a regional planning and development commission.
(b) Bistate or multistate commissions. In case two or more governmental units determine that the geographical area embraced by such units, although not meeting the minimum criteria prescribed in subsection (a) of this section, is logically, for planning and development purposes, a part of a larger area which extends into an adjoining state or states, such governmental units may adopt an agreement for the formation of a regional planning and development commission and may petition the Governor to certify such commission for the proposed region. The Governor may, after consultation with the governmental units which are parties to the petition and after approval by him of an appropriate interstate agreement or compact certify the commission. In such case the Governor may authorize such deviations from the minimum requirements for area and population prescribed in Section 11-85-51 and subsection (a) of this section and the requirements for composition of the commission prescribed in Section 11-85-53 as may be necessary to conform to the interstate agreement or compact. No county shall be divided in applying the provisions of this subsection.
(c) Single county commissions. Regional planning and development commissions may be formed in any county having a population between 93,000 and 100,000 persons according to the most recent federal decennial census in the same manner as any other state planning and development district; provided, however, that the requirements for the formation of such districts and commissions with respect to the population and numbers of contiguous counties shall not be applicable to districts and commissions formed pursuant to this subsection. Regional planning and development commissions so formed may function in conjunction with contiguous regional planning and development commissions with respect to any project, plan, program or other activity which by necessity crosses county or state planning and development district boundary lines.
*(Acts 1969, No. 1126, p. 2084, §3; Acts 1973, No. 692, p. 1039, §1.)*
##### **§ 11-85-53** Composition; Selection, Terms and Replacement of Representatives; Financing; Procedure for Addition or Withdrawal of Governmental Units, Dissolution, Etc {#sec-11-85-53 omnilex-key=us-al-statutes--title-11--11-85-53}
(a) All governmental units within the boundaries of a region which are parties to the agreement for the establishment of a regional planning and development commission shall be represented on the commission as provided in this section. The agreement may provide formulas and procedures under which smaller governmental units may select a common representative and larger units may select more than one representative, but there shall be at least one representative for each county and for each city of over 10,000 population. At least a majority of the representation of a commission shall be elected public officials of the participating governmental units. This section shall not apply to any counties which have formed any regional planning commissions.
(b) The terms and manner of selection and replacement of the commission representatives shall be specified in the agreement or, pursuant to the terms of the agreement, by ordinances or resolutions adopted by participating governmental units. Terms of representatives who are not elected officials shall be arranged to provide overlapping periods of service. The term of any representative serving in such capacity by virtue of elective public office shall expire with his incumbency in such office.
(c) The agreement shall include the formula by which participating governments will contribute to the financing of the commission and the procedure for amendment, for addition of other governmental units within the region which are not parties to the original agreement and for withdrawal from the agreement by a governmental unit and for dissolution of the commission.
(d) Any governmental unit included within the boundaries of a region but not a party to the agreement and petition shall not be represented on the commission nor be entitled as a matter of right to services provided by the commission until it joins the commission by appropriate official action as provided for in the agreement or the bylaws of the commission.
*(Acts 1969, No. 1126, p. 2084, §4.)*
##### **§ 11-85-54** Officers; Appointment of Advisory Committees {#sec-11-85-54 omnilex-key=us-al-statutes--title-11--11-85-54}
The commission shall elect a chairman and may elect an executive committee and other officers as necessary from among its membership. A commission may appoint such advisory committees as it may deem necessary.
*(Acts 1969, No. 1126, p. 2084, §6.)*
##### **§ 11-85-55** Receipt of State Financial Support {#sec-11-85-55 omnilex-key=us-al-statutes--title-11--11-85-55}
Regional planning commissions certified pursuant to this article may receive state financial support if they meet requirements for state financial assistance, for financial controls, and for reporting established by executive order.
*(Acts 1969, No. 1126, p. 2084, §8.)*
##### **§ 11-85-56** Powers and Duties Generally {#sec-11-85-56 omnilex-key=us-al-statutes--title-11--11-85-56}
A regional planning and development commission established pursuant to this article may perform the following:
(1) Carry on continuous, comprehensive planning for the region, assessing needs, resources, and development opportunities and formulating goals, objectives, policies, and standards to guide physical, economic, and human resource development.
(2) Prepare a regional plan consistent with state comprehensive planning and reflecting plans and programs of the participating governmental units which shall set forth policies for the development of the region in accordance with present and future needs and resources including policies for patterns of urbanization, for the use of land and resources for commerce, industry, recreation, transportation, forestry, and agriculture, for the development of human resources and for administrative measures in support thereof.
(3) Prepare an annual regional development program to implement the policies contained in the regional plan, which program shall contain an analysis of the current status of regional development in relation to the regional plan and prior regional development programs, a review of trends affecting regional development, schedules of major program expenditures and activities, and capital improvements together with financing plans and recommendations for new programs or elimination or change of existing programs and for changes in administrative organization or procedures.
(4) Prepare and publish studies of the region’s resources.
(5) Provide planning and technical assistance to governmental units and planning and development agencies within the region and coordinate regional planning activities with those of the state, of governmental units within the region and in neighboring regions, and with the programs of federal departments and agencies and regional commissions.
(6) Borrow money and apply for and receive grants-in-aid, contributions, and any other forms of financial or other assistance from any sources, public or private, for the purposes of this article subject to applicable provisions of state law.
(7) Review and comment on applications by governmental units within the region for state or federal loans, grants-in-aid, or other financial assistance and indicate their relationship to the regional plan and development program and provide information regarding state and federal grants and assistance programs in the region.
(8) Adopt bylaws and issue rules and regulations for the conduct of its business.
(9) Make and enter into contracts and agreements.
(10) Acquire and dispose of real and personal property subject to applicable provisions of state law.
(11) Promote industrial and economic growth for the region by means of advertisement, recruitment, or by whatever method deemed appropriate and approved by the commission.
(12) Charge fees for services provided by the commission.
(13) Employ a director and other employees and consultants, prescribe their duties, and fix their compensation.
(14) Perform other activities in furtherance of this article not inconsistent or contrary to state law.
(15) Determine the name by which the commission shall be called and certified.
*(Acts 1969, No. 1126, p. 2084, §5; Acts 1994, No. 94-574, p. 1047, §1.)*
##### **§ 11-85-57** Joint Planning Agreements, Etc., with Adjoining Counties, Municipalities, Etc., Authorized; Changes of Boundaries of Regional Planning and Development Districts to Include Adjacent Counties {#sec-11-85-57 omnilex-key=us-al-statutes--title-11--11-85-57}
(a) Commissions formed pursuant to this article shall have the authority to enter into joint planning agreements, contracts, or programs with adjacent counties, municipalities situated in adjacent counties, or adjacent regional planning and development commissions.
(b) If the Governor should determine that it is desirable to change the boundaries of regional planning and development districts which have been defined and designated pursuant to this article to include an adjacent county or counties within such district or districts, he shall have the authority to do so in the manner and form set forth in Section 11-85-51; provided, however, that the criteria or requirements set forth in subsection (b) of Section 11-85-51 with respect to population and numbers of contiguous counties shall not apply to a district designated by the Governor under the authority of this section, nor to any change in the boundaries of such district which the Governor may find to be desirable as provided in subsection (c) of Section 11-85-51.
*(Acts 1973, No. 692, p. 1039, §3.)*
##### **§ 11-85-58** Use of Planning and Development Districts and Regional Planning and Development Districts for Other Purposes and Programs {#sec-11-85-58 omnilex-key=us-al-statutes--title-11--11-85-58}
State planning and development districts designated under this article and regional planning commissions established pursuant to this article shall, to the extent possible, be used as the basis for:
(1) State planning and programming;
(2) Proposing or designating areas for the purposes of administering programs which receive aid under federal acts which require districts; and
(3) Performing areawide planning including review and comment on projects, coordination, and informational services for state and federal grant-in-aid programs.
*(Acts 1969, No. 1126, p. 2084, §7.)*
##### **§ 11-85-59** Effect of Population Changes Upon Establishment and Operation of State Planning and Development Districts or Regional Planning and Development Commissions {#sec-11-85-59 omnilex-key=us-al-statutes--title-11--11-85-59}
The establishment and operation of any state planning and development district or regional planning commission designated or formed pursuant to this article shall not be affected by any subsequent changes in population so long as the county comprising such district and in which such commission is located met the requirements of this article at the time such district was designated or such commission was formed.
*(Acts 1973, No. 692, p. 1039, §2.)*
#### **Article 5** Confirmation of Operating Regional Planning and Development Commissions
##### **§ 11-85-70** Existing Regional Planning and Development Commissions Ratified and Confirmed {#sec-11-85-70 omnilex-key=us-al-statutes--title-11--11-85-70}
Those 12 bodies, organizations, or persons respectively acting and operating as regional planning and development commissions within their respective districts on May 29, 1985, and however created or established; by formation of nonprofit corporations, by various resolutions of local governments, or by agreements and/or compacts between local governments, or otherwise; are hereby ratified and confirmed as regional planning and development commissions under Sections 11-85-50 through 11-85-59.
*(Acts 1985, No. 85-757, p. 1260, §1.)*
##### **§ 11-85-71** Procedure for Additional Governmental Units to Become Members of Regional Planning and Development Commissions {#sec-11-85-71 omnilex-key=us-al-statutes--title-11--11-85-71}
The respective regional planning and development commissions ratified and confirmed by Section 11-85-70 shall henceforth continue to act and operate as regional planning and development commissions within their respective districts, and any governmental units within a particular district desiring to become a member of, and have representation on a commission within the district in which the governmental unit is located, shall pass resolutions or ordinances as applicable to accomplish that purpose and they shall thereupon become members of the commission within their respective district and shall be granted the respective representation on the commission as is provided by Section 11-85-53, provided they agree by appropriate resolution or ordinance, as applicable, to contribute to the financing of the commission in keeping with a formula of financing on a population basis in the same proportion as current members as established by the commission.
*(Acts 1985, No. 85-757, p. 1260, §2.)*
##### **§ 11-85-72** General Powers, Rights, Obligations, Etc., of Regional Planning and Development Commissions {#sec-11-85-72 omnilex-key=us-al-statutes--title-11--11-85-72}
The regional planning and development commissions ratified and confirmed by this article as such commissions shall have such powers, rights, obligations, and privileges as heretofore accorded to, and which might be hereinafter accorded to regional planning and development commissions under the laws of Alabama.
*(Acts 1985, No. 85-757, p. 1260, §3.)*
##### **§ 11-85-73** Commissions Authorized to Enter into Contracts with Other Agencies {#sec-11-85-73 omnilex-key=us-al-statutes--title-11--11-85-73}
Regional planning commissions, business corporations, nonprofit corporations, and local entities as defined in Section 23-1-21.1, or as might be hereafter defined by amendment of such section are authorized and empowered to enter into contracts, jointly, separately, and severally with each other and/or with the State of Alabama, the federal government, and/or with their respective departments and agencies, for the purpose of receiving and disbursing state, federal and/or local governmental and private funds for programs established or which might be established as a result of federal, state, and/or local legislation, and to establish on a state or local level, operate and administer any such programs under the contract terms, provided the contract performance, the operation and administration of programs thereunder are in keeping with any such legislation and regulations thereunder. Any such contracts entered into prior to May 29, 1985, are deemed to have been executed with full power and authority.
*(Acts 1985, No. 85-757, p. 1260, §4.)*
#### **Article 6** Alabama Revolving Loan Fund Authority
##### **§ 11-85-100** Definitions {#sec-11-85-100 omnilex-key=us-al-statutes--title-11--11-85-100}
As used in this article, the following words and phrases shall have the following meanings:
(1) AUTHORITY. The public corporation organized pursuant to this article.
(2) BOARD OF DIRECTORS. The Board of Directors of the Alabama Revolving Loan Fund Authority.
(3) BONDS. The bonds issued under this article.
(4) GRANTEE. The several existing regional planning and development commissions, as provided for in Sections 11-85-50 to 11-85-73, inclusive.
(5) REVOLVING LOAN FUNDS. The monies provided by the sale of the bonds pursuant to this article. These monies may be combined with or used to facilitate access to either federal funds or foundation grants or loans, or to leverage private sector financing that may be available for initial or seed capital, long or short term fixed asset or equipment loans or working capital for local economic development projects for improving, developing, or financing new, existing, or expanding business or industry, to preserve or create employment pursuant to Section 41-23-50.
(6) STATE. The State of Alabama.
*(Act 98-195, p. 338, §1.)*
##### **§ 11-85-101** Incorporation of Authority {#sec-11-85-101 omnilex-key=us-al-statutes--title-11--11-85-101}
The Governor, or his or her designee, the Finance Director, the Lieutenant Governor, or his or her designee, the Speaker of the House of Representatives, or his or her designee, the Chairman of the Regional Revolving Loan Policy Committee, and the President of the Alabama Association of Regional Councils, or his or her designee shall become a public corporation with the powers provided for in this article by proceeding according to Section 11-85-102.
*(Act 98-195, p. 338, §2.)*
##### **§ 11-85-102** Application for Incorporation {#sec-11-85-102 omnilex-key=us-al-statutes--title-11--11-85-102}
(a) To become the public corporation authorized by this article, the Governor, the Finance Director, and the President of the Alabama Association of Regional Councils shall present to the Secretary of State of Alabama an application signed by the applicants listed in Section 11-85-101 which shall set forth all of the following:
(1) The name, official designation, and official residence of each of the applicants, together with a certified copy of the commission evidencing each applicant’s right to office.
(2) The date on which each applicant was inducted into office and the term of office of each applicant.
(3) The name of the proposed public corporation, which shall be the Alabama Revolving Loan Fund Authority.
(4) The location of the principal office of the proposed corporation.
(b) The applicants may also include in the application any other matters which are not inconsistent with this article or with any of the other laws of the state.
(c) The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of this state to take acknowledgements to deeds.
(d) The Secretary of State shall examine the application and, if he or she finds that it substantially complies with the requirements of this section, he or she shall receive and file it and record it in an appropriate book of records in his or her office.
*(Act 98-195, p. 338, §3.)*
##### **§ 11-85-103** Certificate of Incorporation; Fees {#sec-11-85-103 omnilex-key=us-al-statutes--title-11--11-85-103}
(a) When the application has been made, filed, and recorded as provided in this article, the applicants shall constitute a corporation under the name proposed in the application. The Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this article, under the Great Seal of the State, and shall record the certificate with the application.
(b) There shall be no fees paid to the Secretary of State for any service rendered or work performed in connection with the authority, its incorporation, dissolution, or records.
*(Act 98-195, p. 338, §4.)*
##### **§ 11-85-104** Members; Officers; Quorum; Vacancies; Salaries; Record of Proceedings {#sec-11-85-104 omnilex-key=us-al-statutes--title-11--11-85-104}
(a) The applicants named in the application and their respective successors in office shall constitute the members of the authority. The Governor, or his or her designee, shall be the president of the authority; the Finance Director shall be the vice-president thereof; and the President of the Alabama Association of Regional Councils, or his or her designee shall be the secretary thereof. The State Treasurer shall be the treasurer of the authority, shall act as custodian of its funds until the allocations are disbursed to the several regional planning commissions pursuant to Section 11-85-109, and shall pay the principal and the interest on the bonds of the authority out of the funds provided for in this article. The members of the authority shall constitute all the members of the board of directors of the authority, and any four members of the board of directors shall constitute a quorum for the transaction of business. Should any person holding a position named in this article cease to hold such office by reasons of death, resignation, expiration of term of office, or for any other reason, then his or her successor in office shall take his or her place as an officer and member of the board of directors of the authority. No officer or member of the board of directors shall draw any salary in addition to that now authorized by law for any service he or she may render or for any duty he or she may perform in connection with the authority.
(b) All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the authority, shall be signed by at least four members of the authority present at the proceedings, and shall be recorded in a substantially bound book and filed in the office of the Secretary of State. Copies of such proceedings, when certified by the secretary of the authority, under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
*(Act 98-195, p. 338, §5.)*
##### **§ 11-85-105** Powers of the Authority {#sec-11-85-105 omnilex-key=us-al-statutes--title-11--11-85-105}
The authority shall have the following powers:
(1) To have succession by its corporate name until dissolved as provided in this article.
(2) To institute and defend legal proceedings in any court of competent jurisdiction and proper venue; provided, that the authority may not be sued in any trial court other than the courts of the county in which is located the principal office of the authority; provided further, that the officers, directors, and agents of the authority may not be sued for action on behalf of the authority in any trial court other than the courts of the county in which is located the principal office of the authority.
(3) To have and to use a corporate seal and to alter the seal at pleasure.
(4) To establish a fiscal year.
(5) To anticipate by the issuance of its bonds the receipt of the revenues appropriated and pledged in this article.
(6) To pledge the proceeds of the appropriations and pledges provided for in this article as security for the payment of the principal of and interest on its bonds.
(7) To contract with the Alabama Department of Economic and Community Affairs to perform the administrative and recordkeeping functions necessary for the successful implementation of this article, which shall include but shall not be limited to the function delineated in Section 11-85-109.
(8) To appoint and employ such attorneys and agents as the authority may require to fulfill the corporate purposes of the authority and in exercising the foregoing powers.
*(Act 98-195, p. 338, §6.)*
##### **§ 11-85-106** Bonds - Issuance and Sale {#sec-11-85-106 omnilex-key=us-al-statutes--title-11--11-85-106}
The authority is authorized to sell and issue its bonds in the aggregate principal amount of twenty-four million dollars ($24,000,000) for the purpose of making grants to the twelve regional planning and development commissions, which shall be utilized by the grantees as revolving loan funds.
*(Act 98-195, p. 338, §7; Act 2007-279, p. 378, §1.)*
##### **§ 11-85-107** Bonds - Authentication; Redemption; Sale; Refunding; Use of Proceeds; Security; Investment of Funds {#sec-11-85-107 omnilex-key=us-al-statutes--title-11--11-85-107}
The bonds of the authority shall be signed by its president and attested by its secretary and the seal of the authority shall be affixed thereto or a facsimile of such seal shall be printed or otherwise reproduced thereon; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of being manually subscribed thereon and a facsimile of the signatures of both of the officers may be printed or otherwise reproduced on such bonds in lieu of being manually affixed thereof if the authority, in its proceedings with respect to issuance of the bonds, provides for manual authentication of such bonds. The State Treasurer shall be registrar, transfer agent, and paying agent for the bonds. The State Treasurer may designate named individuals who are employees of the state and who are assigned to the Finance Department or the State Treasurer’s office to authenticate the bonds. Any bonds of the authority may be executed and delivered by it at any time and from time to time and shall be in such form or forms and such denomination or denominations and of such tenor and maturity or maturities, shall bear such rate or rates of interest, which may be variable rates, shall be payable at such times and evidenced in such manner, and may contain such other provisions not inconsistent herewith, all as may be provided by the resolution of the board of directors of the authority under which such bonds are authorized to be issued; provided, that no bond of the authority shall have a specified maturity date later than twenty years after its date. Any bond of the authority may be made subject to redemption at the option of the authority at such times and after such notice and on such conditions and at such redemption price or prices as may be provided in the resolution under which it is authorized to be issued; provided, that those bonds of the authority having specified maturity dates more than 10 years after their date shall be made subject to redemption at the option of the authority not later than the end of the tenth year after their date, and on any interest payment date thereafter, under such terms and conditions and at such redemption price or prices as may be provided in the resolution under which such bonds are authorized to be issued. Bonds of the authority may be sold at such price or prices and at such time or times as the board of directors of the authority may consider advantageous, either at public or private sale and by negotiation or by competitive bid. Bonds of the authority sold by competitive bid must be sold, whether on sealed bids or at public auction, to the bidder whose bid reflects the lowest true interest cost to the authority for the bonds being sold, computed from their date to their respective maturities; provided, that if no bid acceptable to the authority is received, it may reject all bids. The authority may fix the terms and conditions under which each sale of bonds may be held; provided, that such terms and conditions shall not conflict with any of the requirements of this article. Subject to the provisions and limitations contained in this article, the authority may from time to time sell and issue refunding bonds for the purpose of refunding any matured or unmatured bonds of the authority then outstanding. Such refunding bonds shall be subrogated and entitled to all priorities, rights and pledges to which the bonds refunded thereby were entitled. Provided, however, that no refunding bonds shall be issued unless the present value of all debt service on the refunding bonds, computed with a discount rate equal to the true interest rate of the refunding bonds and taking into account all underwriting discount and other issuance expenses, shall not be greater than 95% of the present value of all debt service on the bonds to be refunded, computed using the same discount rate and taking into account the underwriting discount and other issuance expenses originally applicable to such bonds, determined as if such bonds to be refunded were paid and retired in accordance with the schedule of maturities, considering mandatory redemption as a scheduled maturity, provided at the time of their issuance. Provided further, that the average maturity of the refunding bonds, as measured from the date of issuance of such refunding bonds, shall not exceed by more than three years the average maturity of the bonds to be refunded, as also measured from such date of issuance, with the average maturity of any principal amount of bonds to be determined by multiplying the principal of each maturity by the number of years, including any fractional part of a year, intervening between such date of issuance and each such maturity, taking the sum of all such products, and then dividing such sum by the aggregate principal amount of bonds for which the average maturity is to be determined. The authority may pay out of the proceeds of the sale of its bonds attorneys’ fees and the expenses of issuance which the board of directors may deem necessary and advantageous in connection with the issuance of such bonds. Bonds issued by the authority shall not be general obligations of the authority but shall be payable solely out of the funds appropriated and pledged thereof in Section 11-85-108. As security for the payment of the principal of and interest on the bonds issued by it, the authority is hereby authorized and empowered to pledge for payment of such principal and interest the funds that are appropriated and pledged in Section 11-85-108 for payment of such principal and interest. All such pledges made by the authority shall take precedence in the order of the adoption of the resolutions containing such pledges; provided, that each pledge for the benefit of refunding bonds shall have the same priority as the pledge for the benefit of the bonds refunded thereby. All contracts made and all bonds issued by the authority pursuant to this article shall be solely and exclusively obligations of the authority and shall not constitute or create an obligation or debt of the State of Alabama. All bonds issued by the authority and the income therefrom shall be exempt from all taxation in the state. Any bonds issued by the authority may be used by the holder thereof as security for any funds belonging to the state, or to any political subdivision, instrumentality, or agency of the state, in any instance where security for such deposits may be required by law. Unless otherwise directed by the court having jurisdiction thereof, or the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in bonds of the authority. Neither a public hearing nor consent of the Department of Finance of the state or any other department or agency shall be a prerequisite to the issuance of the bonds by the authority. The bonds issued under this article shall be legal investments for funds of the Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund.
*(Act 98-195, p. 338, §8.)*
##### **§ 11-85-108** Appropriation and Pledge of Funds for Authority Obligations {#sec-11-85-108 omnilex-key=us-al-statutes--title-11--11-85-108}
For the purpose of providing funds to enable the authority to pay at their respective maturities the principal of and interest on any bonds issued by it under this article and to accomplish the objects of this article, there is hereby irrevocably pledged to these purposes, and hereby appropriated the amount that may be necessary for those purposes from the receipts from the privilege or license tax on providers of cellular radio telecommunication services levied in Section 40-21-121.
*(Act 98-195, p. 338, §9.)*
##### **§ 11-85-109** Administrative and Recordkeeping Functions of Authority {#sec-11-85-109 omnilex-key=us-al-statutes--title-11--11-85-109}
(a) The Alabama Department of Economic and Community Affairs (ADECA) Planning and Economic Development Division shall perform the centralized administrative and recordkeeping functions for the authority. ADECA shall ensure that grantees utilize their allocations of grant monies efficiently and effectively as revolving loan funds, pursuant to Sections 41-23-50 and 41-23-51. The grantees shall provide to ADECA all information regarding the disbursements of revolving loan funds, terms and conditions of the revolving loans that are approved, jobs created, and other information deemed necessary by the authority to assess the respective revolving loan programs of the grantees. ADECA shall cause programmatic audits to be conducted on the utilization of revolving loan funds by grantees upon the request of the authority. ADECA shall recommend to the Regional Revolving Loan Policy Committee, defined in Section 41-23-51 a formula relative to the indirect cost of the Planning and Economic Development Division, to provide for the payment of the administrative and oversight requirements of ADECA pursuant hereto. The several regions shall contract with and pay ADECA an amount, at such times as necessary established by the formula agreed upon.
(b) ADECA shall not deduct from the net bond proceeds any administrative costs, service charges, salaries, or fees for the performance of these functions on behalf of the authority.
(c) ADECA shall make grants of equal amounts to the twelve regional planning and development commissions, grantees, from the net proceeds derived from the sale of the authority’s bonds within 30 days following the sale of the bonds.
*(Act 98-195, p. 338, §11.)*
##### **§ 11-85-110** Duties of State Treasurer {#sec-11-85-110 omnilex-key=us-al-statutes--title-11--11-85-110}
Out of the revenues appropriated and pledged in Section 11-85-108, the State Treasurer is hereby authorized and directed to pay the principal of and the interest on the bonds issued by the authority under this article, as the principal and interest shall respectively mature, and the State Treasurer is further authorized and directed to set up and maintain appropriate records pertaining thereto.
*(Act 98-195, p. 338, §12.)*
##### **§ 11-85-111** Dissolution of Authority {#sec-11-85-111 omnilex-key=us-al-statutes--title-11--11-85-111}
At any time when no authority bonds or refunding bonds are outstanding, the authority may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the directors of the authority and sworn to by each director before an officer authorized to take acknowledgments to deeds. Upon the filing of the application for dissolution, the authority shall cease to exist. The Secretary of State shall file and record the application for dissolution in an appropriate book of record in his or her office, and shall make and issue, under the Great Seal of the State, a certificate that the authority is dissolved, and shall record the certificate with the application for dissolution. Title to all property held in the name of the authority shall be vested in the state upon dissolution of the authority.
*(Act 98-195, p. 338, §13.)*
### **Chapter 86** Recreation Boards
##### **§ 11-86-1** Creation {#sec-11-86-1 omnilex-key=us-al-statutes--title-11--11-86-1}
The county commission of any county or the governing body of any municipality with a population of not more than 100,000 according to the most recent federal census may, by resolution or ordinance duly recorded in its minutes, create a recreation board.
*(Acts 1945, No. 350, p. 565, §1.)*
##### **§ 11-86-2** Composition; Qualifications, Appointment, Terms of Office, and Compensation of Members; Officers; Adoption of Rules and Regulations {#sec-11-86-2 omnilex-key=us-al-statutes--title-11--11-86-2}
Each recreation board shall consist of not less than five nor more than nine members selected by the county commission or municipal governing body from residents of the county or municipality who have recognized interest in recreational activities. Members of the recreation board first shall be appointed as follows: One for a term of one year; one for a term of two years; one for a term of three years; one for a term of four years; and one for a term of five years. Any members, in excess of five, shall initially be appointed as follows: The sixth member shall be appointed for a term of one year; the seventh member shall be appointed for a term of two years; the eighth member shall be appointed for a term of three years; and the ninth member shall be appointed for a term of four years. As the terms of members expire, their successors shall be selected for terms of five years each. Vacancies in unexpired terms shall be filled in the same manner as original appointments are made. The board shall elect from its membership a chairman and secretary and such other officers as it deems necessary to serve at its pleasure. The board shall adopt rules and regulations covering the procedures of the board and the use of lands, buildings, equipment, and other facilities under its jurisdiction. Members of the board shall serve without compensation.
*(Acts 1945, No. 350, p. 565, §2; Acts 1982, No. 82-297, p. 369, §1.)*
##### **§ 11-86-3** Powers and Duties Generally {#sec-11-86-3 omnilex-key=us-al-statutes--title-11--11-86-3}
The recreation board shall be responsible for the direction, supervision and promotion of such recreation programs as will contribute to the general welfare of the residents of the county or municipality. The board shall have control over all lands, buildings, equipment, and other facilities assigned for recreational purposes to the board by the county commission or municipal governing body or purchased or leased by it from funds provided by the county commission or municipal governing body. The board shall cooperate with other local agencies and state and federal agencies for the purpose of maintaining and improving recreational services and facilities for the county or municipality. The board shall have power to accept financial and other aid and grants from any public or private agency.
*(Acts 1945, No. 350, p. 565, §4.)*
##### **§ 11-86-4** Director of Recreation and Staff {#sec-11-86-4 omnilex-key=us-al-statutes--title-11--11-86-4}
The recreation board may employ a county or municipal director of recreation to be its executive officer. The director, with the approval of the board, shall employ such staff as may be necessary to effect the recreation program determined by the board. The salaries of the director and the staff shall be fixed by the board. The tenure of the director and the staff shall be at the pleasure of the board. Traveling and other expenses of the director and the staff while in performance of their duties shall be provided for by the board.
*(Acts 1945, No. 350, p. 565, §3.)*
##### **§ 11-86-5** Appropriations; Designation, Acquisition, Improvement, Etc., of Lands or Buildings for Recreational Purposes; Joint Actions by Counties and Municipalities {#sec-11-86-5 omnilex-key=us-al-statutes--title-11--11-86-5}
The county commission of a county or governing body of a municipality may make appropriations from county or municipal general funds to the recreation board for the support and maintenance of the board, a recreational program and recreational lands, buildings, equipment, and facilities. The county commission or municipal governing body may designate for use as parks, playgrounds and recreation centers and facilities any lands or buildings owned by, leased by, or loaned to the county or municipality. The county commission or municipal governing body may improve and equip or appropriate funds to the board for improving and equipping the lands and buildings for recreational purposes. The county commission or municipal governing body may acquire lands, buildings, and facilities for recreational purposes by means of purchase, lease, loan, gift, or condemnation procedure and shall have power to accept financial and other aid and grants for recreational purposes from any public or private agency. Any county or municipality may join with one or more counties or municipalities in acquiring property for recreational purposes and, through the recreation board, join similarly in the operating and maintaining of playgrounds, parks, and recreation centers and facilities.
Any county or municipality may cooperate with another county or municipality by establishment and maintenance of a joint recreation board.
*(Acts 1945, No. 350, p. 565, §5.)*
##### **§ 11-86-6** Construction of Chapter {#sec-11-86-6 omnilex-key=us-al-statutes--title-11--11-86-6}
This chapter shall be construed liberally.
*(Acts 1945, No. 350, p. 565, §6.)*
### **Chapter 86A** Public Park and Recreation Authorities
##### **§ 11-86A-1** Definitions {#sec-11-86a-1 omnilex-key=us-al-statutes--title-11--11-86A-1}
When used in this chapter, the following terms shall have the following meanings:
(1) ARTICLES. The articles of incorporation or articles of reincorporation of an authority.
(2) AUTHORITY. A public corporation incorporated or reincorporated pursuant to the provisions of this chapter.
(3) BOARD OF DIRECTORS. The board of directors of an authority.
(4) BOND or BONDS. A bond or bonds issued under this chapter.
(5) COUNTY OF INCORPORATION. The county in which an authority has been or is proposed to be incorporated or reincorporated.
(6) DIRECTORS. The members of the board of directors.
(7) INCORPORATORS. The natural persons filing a written application for the incorporation or reincorporation of an authority pursuant to this chapter.
(8) MUNICIPALITY. Any municipal corporation wholly or partially within the county of incorporation.
(9) PARTICIPATING MUNICIPALITY. Any municipality named in the articles that elects to participate in the incorporation or reincorporation of the authority.
(10) PERSON. Unless limited to a natural person by the context in which it is used, any person, including, without limitation, a private firm, a private association, a corporation, and a public person.
(11) PROBATE JUDGE. The judge of probate of the county of incorporation of an authority.
(12) PROJECT. Any land and any buildings or other improvements thereon, and all real, personal, and mixed properties deemed by an authority to be necessary or appropriate in connection therewith, whether or not now in existence, which shall be suitable for park or recreation purposes. The determination of an authority that a proposed use is within this definition shall be conclusive.
(13) PUBLIC PERSON. The state and any county, municipal corporation, public corporation, agency, subdivision thereof, instrumentality thereof, or similar person.
*(Act 2000-106, p. 129, §1.)*
##### **§ 11-86A-2** Legislative Findings of Fact and Declaration of Intent; Construction of Chapter {#sec-11-86a-2 omnilex-key=us-al-statutes--title-11--11-86A-2}
(a) The Legislature hereby makes the following findings of fact and declares its intent to be as follows:
The Legislature acknowledges the key role of public corporations in the state in promoting public interest and participation in sports, athletics, and recreational activities through acquiring, enlarging, improving, expanding, owning, operating, leasing, and disposing of park and recreation related properties. It has come to the attention of the Legislature that questions have been raised as to the status of certain local park and recreational authorities and boards located in the state. It is the intent of the Legislature to promote the public health and general welfare by exercising its police power to authorize the formation or retroactive validation of independent public corporations created jointly by counties and municipalities, one of which is to be a Class 4 municipality, as defined by Section 11-40-12, having as their general purposes the promotion of park and recreation purposes, facilities, and activities and having the power to issue bonds.
(b) This chapter shall be liberally construed in accordance with the foregoing findings of fact and declaration of intent.
*(Act 2000-106, p. 129, §2.)*
##### **§ 11-86A-3** Authorization and Procedure for Incorporation Generally {#sec-11-86a-3 omnilex-key=us-al-statutes--title-11--11-86A-3}
Any number of natural persons, not less than three, residing in the county of incorporation may incorporate an authority as provided in this chapter. The incorporators shall file a written application in accordance with Section 11-86A-4.
*(Act 2000-106, p. 129, §3.)*
##### **§ 11-86A-4** Filing of Application for Incorporation with Probate Judge; Contents Thereof; Recordation of Application by Probate Judge; Approval or Disapproval by Governing Body of County of Incorporation and Each Participating Municipality {#sec-11-86a-4 omnilex-key=us-al-statutes--title-11--11-86A-4}
(a) The written application of the incorporators shall be filed with the probate judge, which application shall:
(1) Contain a statement that the incorporators propose to incorporate an authority pursuant to this chapter.
(2) State that each of the incorporators is a resident of the county of incorporation.
(3) Request that the governing body of the county of incorporation and each participating municipality adopt a resolution declaring that it is expedient that the proposed authority be formed, approving the written application, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with this chapter.
(b) The application shall include the form of articles of the proposed authority.
(c) The governing body of the county of incorporation and of each participating municipality shall review the contents of the application and the accompanying form of articles and shall adopt a resolution to deny the application or to declare that it is expedient that the proposed authority be formed, approving the form of the articles, and authorizing the incorporators to proceed to form the proposed authority by filing for record pursuant to subsection (c) of Section 11-86A-5.
(d) It shall not be necessary that a resolution be published in any newspaper or posted or be offered for more than one reading.
(e) One of the participating municipalities shall be a Class 4 municipality, as defined by Section 11-40-12, which has within 90 days of March 9, 2000, opted by ordinance to be a participating municipality.
(f) No authority may be formed until the application and the resolution have been adopted, and until the requirement of subsection (e) is satisfied.
*(Act 2000-106, p. 129, §4.)*
##### **§ 11-86A-5** Contents, Signing, and Filing of Articles {#sec-11-86a-5 omnilex-key=us-al-statutes--title-11--11-86A-5}
(a) The articles of an authority shall state all of the following:
(1) The names of the incorporators and that each is a resident of the county of incorporation. In addition, one of the incorporators shall also be a Class 4 municipality that has within 90 days of March 9, 2000, opted by ordinance to be a participating municipality.
(2) The name of the authority, which may be a name indicating in a general way the geographic area proposed to be served by the authority and include the words “Park and Recreation Authority” (e.g., “The ___________ Park and Recreation Authority” or “The Park and Recreation Authority of ___________,” the blank space to be filled in with a geographically descriptive word or words, but the descriptive word or words shall not preclude the authority from exercising its powers in other geographic areas).
(3) The period of the authority which may be perpetual.
(4) The location of the principal office of the authority, located within the boundaries of the county of incorporation.
(5) That the authority is organized pursuant to this chapter.
(6) The prohibitions, limitations, or conditions of the authority.
(7) A minimum of three directors and the duration of their respective terms of office which may not be in excess of six years.
(8) The manner of appointing directors. The articles may specify that the directors are to be appointed by any of the following:
a. The governing body of the county of incorporation.
b. The governing bodies of the participating municipalities.
c. The individual members of the governing bodies, based upon districts, precincts, place numbers, or another method.
d. The legislative delegation of the county of incorporation.
e. A combination of a. to d., inclusive, as the articles prescribe.
(9) Any provisions not inconsistent with this chapter relating to the dissolution of the authority and the vesting of title to its assets and properties upon dissolution.
(10) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(b) The articles shall be signed by each of the incorporators.
(c) The authority shall constitute a public corporation under the name set forth in its articles upon the filing for record of the articles with the probate judge. The recording of the articles by the probate judge shall be conclusive evidence of the due, legal, and valid incorporation of the authority. The probate judge shall record the articles in an appropriate book in his or her office. There shall be no filing fees or recording taxes due or payable on account of the filing for record of the articles.
*(Act 2000-106, p. 129, §5.)*
##### **§ 11-86A-6** Authorization and Procedure for Reincorporation of Existing Park and Recreation Authorities and Boards; Continuation in Office of Directors; Effect of Reincorporation {#sec-11-86a-6 omnilex-key=us-al-statutes--title-11--11-86A-6}
(a) In all cases where there has been an attempt to create or incorporate a park and recreation authority or park and recreation board, but the attempted creation or incorporation is or may be invalid because of an irregularity in the procedure followed or invalidity of or defect in the statute under which the attempted creation or incorporation of the authority or board was made, a minimum of three natural persons residing in the county in which the authority is to be incorporated may file a written application with the probate judge of the county in which the park and recreation authority or park and recreation board has been incorporated or attempted to be created or incorporated, which application shall:
(1) Contain a statement that the incorporators propose to reincorporate an authority pursuant to this chapter.
(2) State that each of the applicants is a resident of the county of incorporation.
(3) Request that the county commission of the county of incorporation and of each participating municipality adopt a resolution declaring that it is expedient that the park and recreation authority or park and recreation board be reincorporated, approving the written application, and authorizing the incorporators to proceed to reincorporate the park and recreation authority or park and recreation board by filing for record articles in accordance with this chapter.
(b) An application shall be accompanied by the form of articles of the park and recreation authority or park and recreation board proposed to be reincorporated.
(c) The governing body of the county of incorporation and of each participating municipality shall review the contents of the application and the accompanying form of articles and shall adopt a resolution either to deny the application or declare that it is expedient that the proposed reincorporation occur, approving the form of articles, and authorizing the incorporators to proceed to reincorporate the park and recreation authority or park and recreation board by filing for record the articles in accordance with the provisions of Section 11-86A-5, except that the articles shall specify the name of the park and recreation authority or park and recreation board being reincorporated.
(d) It shall not be necessary that any resolution be published in any newspaper or posted or be offered for more than one reading.
(e) One of the participating municipalities shall be a Class 4 municipality, as defined by Section 11-40-12, which has within 90 days of March 9, 2000, opted by ordinance to be a participating municipality.
(f) Upon the filing for record of the articles of the authority with the probate judge, the authority shall be reincorporated and the existence and validity of the authority validated and ratified retroactive to the initial incorporation or creation or attempted incorporation or creation thereof with all authorities and powers granted to an authority under this chapter. All actions taken, policies observed, contracts, agreements, and understandings entered, property owned, acquired, received, or conveyed, any civil actions pending or concluded, any employee rights or benefits granted, and all other matters with respect to the park and recreation board or park and recreation authority occurring or existing prior to the date of reincorporation shall be deemed transferred, assigned, and conveyed to, and received, accepted, and adopted by, the authority as of the date of reincorporation, and shall be deemed valid, binding, effective, legal, and constitutional with respect to the authority after the date of reincorporation if such matters would have been valid, binding, legal, effective, or constitutional if occurring after the date of reincorporation under the terms of this chapter.
(g) Upon reincorporation, the directors of the authority shall consist of those persons who were members of the board of directors of the park and recreation authority or park and recreation board prior to reincorporation. In the event that the articles specify a board of directors having fewer members than the board of directors of the park and recreation authority or park and recreation board which has been reincorporated, the members of the board of directors who were most recently appointed shall constitute the board of directors of the reincorporated authority. The members of the board of directors of the park and recreation authority or park and recreation board which has been reincorporated having the least recent appointment shall cease to be members of the board of directors of the park and recreation authority or park and recreation board. Those persons becoming members of the board of directors of the reincorporated authority shall serve for such term or terms as specified in the articles, notwithstanding that the term or terms may exceed the term or terms for which a person was originally appointed to the position.
*(Act 2000-106, p. 129, §6.)*
##### **§ 11-86A-7** Further Authorization and Procedure for Reincorporation of Existing Park and Recreation Authorities and Boards {#sec-11-86a-7 omnilex-key=us-al-statutes--title-11--11-86A-7}
A park and recreation authority or park and recreation board incorporated or created prior to or after March 9, 2000, may seek authority to reincorporate pursuant to the procedure established in Section 11-86A-6, if a majority of the board adopts a resolution determining that it would be expedient for the authority or board to reincorporate and at least three members of the authority or board files an application in accordance with Section 11-86A-6.
*(Act 2000-106, p. 129, §7.)*
##### **§ 11-86A-8** Recordation of Articles by Probate Judge; Probate Judge to Receive No Fees in Connection with Incorporation, Reincorporation, Dissolution, Etc., of Authority {#sec-11-86a-8 omnilex-key=us-al-statutes--title-11--11-86A-8}
(a) The articles shall be filed with the probate judge. The proposed authority shall constitute a de jure corporation upon acceptance of filing. The acceptance of the articles for filing by the probate judge shall be conclusive of the valid incorporation of a proposed authority or reincorporation of a park and recreation authority or a park and recreation board.
(b) There shall be no fees or taxes paid to or collected by the probate judge for any service rendered or work performed in connection with an authority, its incorporation, reincorporation, amendment, dissolution, or records.
*(Act 2000-106, p. 129, §8.)*
##### **§ 11-86A-9** Powers of Authority Vested in Board of Directors; Officers and Directors of Authority; Proceedings of Board of Directors to Be Reduced to Writing and Signed by Two Directors; Admissibility of Evidence of Proceedings of Board of Directors; Adoption of Bylaws; Notice of Meetings; Attendance at Meetings; Qualifications {#sec-11-86a-9 omnilex-key=us-al-statutes--title-11--11-86A-9}
(a) All powers of an authority shall be vested in its board of directors.
(b) The initial board of directors of an authority shall be specified in the articles, or as provided in Section 11-86A-6.
(c) Each authority shall be composed of a chair, vice chair, secretary, and treasurer elected by the board of directors. The offices of secretary and treasurer may be held by the same person. A majority of the directors shall constitute a quorum for the transaction of business. The officers and directors shall serve for the terms provided for in the articles. A director may not receive any salary for service rendered or for any duty performed as a director. The chair, vice chair, secretary, and treasurer shall perform the duties customarily performed by the officers and as may be prescribed by the board of directors.
(d) All proceedings by the board of directors shall be in writing by the secretary of the authority and signed by at least two directors of the authority present at the proceedings. Copies of the proceedings, when certified by the secretary of the authority under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(e) A board of directors may adopt bylaws not inconsistent with this chapter.
(f) Notice of any meeting of the members of the board of directors shall be as provided in the bylaws or as determined by the chair of the board of directors. Notice of any meeting may be waived by any director before, at, or after the meeting and may be communicated by letter, telegraph, telex, telecopy, or similar means. Attendance at any meeting for any purpose other than to protest the holding of the meeting shall constitute a waiver of notice.
(g) The board of directors may act by a written consent, signed by all directors, which consent shall have the same effect as unanimous action taken at a duly held meeting of the board of directors, a quorum being present.
(h) The board of directors may create one or more committees and may appoint members of the board of directors to serve on them. Each committee may have one or more members, who serve at the pleasure of the board of directors. A committee may exercise the authority of the board of directors as specified by the board of directors, or in the articles or bylaws, but may not amend the articles or adopt, amend, or repeal bylaws.
(i) A director shall be a resident of the county of incorporation. If a director ceases to be a resident of the county of incorporation, he or she shall cease to be a director, and the position shall remain vacant until a successor is appointed in accordance with the articles and this chapter.
*(Act 2000-106, p. 129, §9.)*
##### **§ 11-86A-10** Members of the Board of Directors; Terms; Meetings; Removal from Office {#sec-11-86a-10 omnilex-key=us-al-statutes--title-11--11-86A-10}
(a) Except as provided in Section 11-86A-6, the board of directors shall be composed of the number of directors provided for in the articles, appointed as provided in the articles for the terms designated therein.
(b) All directors shall serve until their successors are appointed or until they cease to be qualified. Vacancies on the board of directors shall be filled as provided for in the articles, but any person appointed to fill a vacancy shall serve only for the unexpired portion of the term. In the event any uncertainty arises as to the terms of office of a director, the governing body or person authorized to appoint a director to the board of directors may clarify the term by adoption of an appropriate resolution or by execution of an appropriate certificate.
(c) A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board of directors may be adjourned by a majority of the directors present, or may be adjourned by a single director if the director is the only director present at the meeting. A vacancy in the membership of the board of directors may not impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times as may be provided in the bylaws of the authority and may hold other meetings at any time upon notice as may be required by the bylaws of the authority, or if the bylaws make no provision for notice as determined by the chair of the board of directors. The board of directors may hold a special meeting upon call of the chair or by a majority of the directors. Any matter on which the board of directors is authorized to act may be acted upon at any regular, special, or called meeting. At the request of a director, the vote on any question before the board of directors may be taken by yeas and nays and entered upon the record. All resolutions adopted by the board of directors shall constitute actions of the authority.
(d) A director may be impeached and removed from office only in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama of 1901, and the general laws of the state for impeachment and removal of the officers mentioned in Section 175.
*(Act 2000-106; p. 129, §10.)*
##### **§ 11-86A-11** Amendment of Articles {#sec-11-86a-11 omnilex-key=us-al-statutes--title-11--11-86A-11}
(a) The articles of an authority may be amended in the manner provided in this section. The board of directors shall adopt a resolution proposing an amendment to the articles. The amendment shall be fully set forth in the resolution and may include any matters that might have been included in the original articles.
(b) After the adoption by the board of directors of a resolution proposing an amendment to the articles, the chair and the secretary of the authority shall sign and file with the governing body of the county of incorporation and of each participating municipality a written application in the name and on behalf of the authority, under its seal, requesting the county and each participating municipality to adopt a resolution approving the proposed amendment, and accompanied by a copy of the resolution adopted by the board of directors proposing the amendment to the articles. The county and each participating municipality shall therein review the application and adopt a resolution either denying the application or approving and authorizing the proposed amendment. A resolution need not be published or posted or offered for more than one reading.
(c) Following the adoption of a resolution approving the proposed amendment by the county commission of the county of incorporation and of each participating municipality, the chair and the secretary of the authority shall sign and file in the office of the probate judge a certificate in the name and on behalf of the authority, under its seal, reciting the adoption of resolutions by the board and by the governing body of the county of incorporation and of each participating municipality and setting forth the proposed amendment. The probate judge shall record the certificate. The amendment shall become effective upon recordation.
*(Act 2000-106, p. 129, §11.)*
##### **§ 11-86A-12** Powers of Authority Generally {#sec-11-86a-12 omnilex-key=us-al-statutes--title-11--11-86A-12}
An authority shall have the following powers:
(1) To have succession by its corporate name until dissolved as provided in this chapter.
(2) To institute and defend legal proceedings in any court of competent jurisdiction and proper venue; provided, however, that an authority may not be sued in any court other than the courts of the county of incorporation; provided, further, that the officers, directors, agents, and employees of an authority may not be sued for their actions on behalf of the authority except for actions that are known by a person to be unlawful or are performed with reckless disregard for the lawfulness of the actions.
(3) To have and to use a corporate seal and to alter the seal at its pleasure.
(4) To establish a fiscal year.
(5) To anticipate by the issuance of its bonds the receipt of any revenues that may be appropriated by or to the authority and to pledge the proceeds of the appropriations as security for the payment of the principal of and interest on its bonds.
(6) To mortgage and pledge any or all of its parks and recreational facilities or any part or parts thereof, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof as security for the payment of the principal of and interest on its bonds.
(7) To make surveys and other analyses to determine suitable locations for prospective park and recreation facilities.
(8) To make grants of money for park and recreation purposes to other public persons and to any organization which is described in Section 501(c)(3) of the Internal Revenue Code of 1986, as in effect from time to time, or as recodified, or any corresponding provision of any future revenue law.
(9) To accept gifts, grants, bequests, or devises.
(10) To accept grants of money from public persons and to enter into binding agreements with those entities, with or without consideration.
(11) To accept donations of money or real or personal or mixed property.
(12) To invest in bank deposits, U.S. Treasury obligations, instruments, real, personal, or mixed property, and other investments as the board of directors may determine to be appropriate and convenient to accomplish any purpose for which an authority is organized, including works of internal improvement.
(13) To appoint, contract with, and employ officers, employees, and agents including, but not limited to, engineers, accountants, attorneys, architects, construction contractors, consultants, fiscal agents, underwriters, issuers of letters of credit, depositories, banks, trustees, paying agents, transfer agents, remarketing agents, marketing agents, rating agencies, insurers of its securities, guarantors of its securities, or providers of other forms of credit enhancement for its securities as an authority may require or deem appropriate for the carrying out of its corporate purposes and the exercise of its powers.
(14) To acquire, whether by purchase, exchange, gift, lease, or otherwise, all real and personal property that the board of directors deems necessary for the purpose of establishing one or more park and recreational facility; to improve parks and recreational facilities, including the improvement of a park by the construction of buildings, athletic facilities, park facilities, roads, curbing, gutters, drainage, sewerage, utilities, or grading.
(15) To maintain, equip, furnish, own, and operate one or more than one park and recreational facility.
(16) To fix, prescribe, and collect rates, fees, tolls, charges, lease payments, or rentals for the use or lease of any of its facilities for services, facilities, and accommodations furnished by it or any of its facilities.
(17) To adopt and enforce rules and regulations relative to the use or occupancy of any of its facilities or services.
(18) To promote, sponsor, and operate tournaments, programs, shows, exhibitions, athletic events and educational, cultural, recreational, amusement, and other activities.
(19) To sell, exchange, and convey, to contract, to sell, exchange, and convey and to grant options to acquire any or all of its properties whenever its board of directors find any action to be in furtherance of the purposes for which the authority was organized.
(20) To enter into leases of real or personal property with a person.
(21) To provide for insurance as the board of directors may deem advisable.
(22) To enter into a management agreement or agreements with a person for the management of any parks and recreation facilities.
(23) To grant privileges, licenses, or permits for the operation of any public accommodation facilities.
(24) To assume obligations secured by a lien on, or payable out of, or secured by a pledge of, the revenues and receipts from projects, or any part thereof that may be acquired, and obligation assumed to be payable solely out of the revenues and receipts from any projects, or part thereof.
(25) To enter into contracts, agreements, options, leases, deeds, mortgages, and other instruments, and to take other actions as may be necessary or convenient to accomplish any purpose for which an authority is organized or to exercise any power expressly granted under this chapter.
*(Act 2000-106, p. 129, §12.)*
##### **§ 11-86A-13** Issuance and Sale of Bonds {#sec-11-86a-13 omnilex-key=us-al-statutes--title-11--11-86A-13}
An authority may sell at public or private sale and issue bonds for the purposes authorized in Section 11-86A-12.
*(Act 2000-106, p. 129, §13.)*
##### **§ 11-86A-14** Execution of Bonds and Interest Coupons; Form, Terms, Denominations, Etc., of Bonds; Validation of Bonds; Sale; Refunding Bonds {#sec-11-86a-14 omnilex-key=us-al-statutes--title-11--11-86A-14}
(a) Bonds of an authority shall be signed by the chair and attested by the secretary, the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds shall be signed by the chair; provided that a facsimile of the signature of the officers may be printed or otherwise reproduced on any bonds in lieu of being manually subscribed. A facsimile of the seal of the authority may be printed or otherwise produced on any bonds in lieu of being manually affixed thereto, and a facsimile of the chair’s signature may be printed or otherwise reproduced on any interest coupons in lieu of being manually subscribed, provided, that the bonds have been manually authenticated by a transfer agent of the bond issue. Delivery of the bonds executed shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds.
(b) Any bonds may be executed and delivered by the authority and may be in such form and denominations, of the tenor and maturities, bear rate or rates of interest, be payable at the times and evidenced in a manner, and may contain other provisions not inconsistent with this chapter as may be provided by the resolution or resolutions of the board of directors under which the bonds are authorized to be issued. A bond may not have a specified maturity date later than 40 years after its date of execution. A bond may be made subject to redemption at the option of an authority at such times and after notice and on conditions and at redemption price or prices as may be provided in the resolution or resolutions under which it is authorized to be issued. The bonds may bear interest at a fixed rate, at a rate that adjusts in accordance with an independent standard, such as the prime or base lending rate of a bank or published rates for other securities, or may bear interest at rates which may be adjusted to a rate sufficient, in the opinion of any remarketing agent appointed by the authority, to make the bonds have a fair market value or funding value not less than the principal amount of the bonds or other amount as may be specified in the proceedings authorizing the issuance of bonds. The authority may issue “tender” bonds or similar bonds and may enter into appropriate remarketing agreements with respect to any bonds and the determination of the rate of interest borne by the bonds.
(c) Upon the adoption by the board of directors of a resolution providing for the issuance of bonds, an authority may publish once a week for two consecutive weeks, in a newspaper of general circulation published in the county of incorporation a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the authority: “________________, a public corporation organized under the laws of the State of Alabama, on the ____ day of ___________, authorized the issuance of not more than $_______ principal amount of [revenue], [general obligation], or [other appropriate designation] bonds of the authority for purposes authorized in the act of the Legislature of Alabama under which the authority was organized. Any action or proceeding questioning the validity of the bonds, any pledge or mortgage to secure, any lease or sale of any project to be financed by the bonds, or the proceedings authorizing the bonds shall be commenced within 20 days after the first publication of this notice.” Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of the bonds or the validity of any pledge or mortgage made therefor shall be commenced within 20 days after the first publication of the notice. After the expiration of the period, no action, counterclaim, setoff, or defense questioning or attacking the validity of the proceeding or of the bonds shall be asserted, nor shall the validity of the proceedings of the bonds be open to question in any court on any ground whatsoever, except in an action or proceeding commenced within the period.
(d) Subject to the provisions and limitations contained in this chapter, an authority may sell and issue refunding bonds for the purpose of refunding any outstanding matured or unmatured bonds. Refunding bonds may be subrogated and entitled to all priorities, rights, and pledges to which the bonds refunded were entitled.
(e) An authority may pay out of the proceeds of the sale of its bonds attorneys’ fees and the other expenses of issuance which a board of directors may deem necessary and advantageous in connection with the issuance of bonds.
*(Act 2000-106, p. 129, §14.)*
##### **§ 11-86A-15** Security for Bonds {#sec-11-86a-15 omnilex-key=us-al-statutes--title-11--11-86A-15}
(a) In the discretion of the board of directors of an authority, any bonds may be secured by an indenture between an authority and a trustee, which may be a trust company or bank having trust powers, whether the trust company or bank is located within or outside of the state. In any indenture or resolution providing for the issuance of bonds, an authority may pledge, for payment of the principal of and the interest on such bonds, any of its revenues to which its rights exist or may thereafter come into existence, and may assign, as security for payment, any of its leases, franchises, permits, and contracts. In any indenture, an authority may mortgage any properties, including any that may be thereafter acquired by it, and may provide that in the event of a default in payment of the bonds secured thereby or in the event of default with respect to any agreement contained therein, the mortgage may be foreclosed either by sale at public outcry or by judicial proceedings. Any pledge of revenues shall be valid and binding from the time it is made, and the revenues pledged and thereafter received by the authority shall immediately become subject to the lien of the pledge without any physical delivery thereof or further act. The lien of such a pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have actual notice thereof, provided any indenture has been recorded in the office of the probate judge, regardless of compliance with the Alabama Uniform Commercial Code. In any indenture or resolution authorizing the issuance of bonds and pledging for the benefit thereof revenues from any one or more projects, the authority may include provisions customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection, segregation, and application of any rental or other revenue due or to become due to the authority, the terms to be incorporated in any lease agreement respecting any property of the authority, the maintenance and insurance of any building, structure, or other property owned by the authority, the creation and maintenance of special funds from any revenue of the authority, and the rights and remedies available in the event of default to the holder of the bonds or the trustee under the indenture, all as the board of directors deem advisable and which are not in conflict with this section.
(b) If an authority defaults in payment of the principal of or the interest on the bonds or in any of the agreements on the part of an authority that may properly be included in any indenture securing the bonds or in any resolution authorizing their issuance, a holder of the bonds or any of the coupons, or the trustee under any indenture if authorized in indenture, may, in addition to any other remedies herein provided or otherwise available, by suit, action, mandamus, or other proceedings, enforce payment of the principal or interest and compel performance of all duties of the authority, and shall be entitled to the appointment of a receiver possessing all the powers of a receiver necessary or appropriate for the operation and maintenance of the property of the authority covered by the indenture or resolution, and the collection, segregation, and application of revenues therefrom. The indenture or any resolution may contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Act 2000-106, p. 129, §15.)*
##### **§ 11-86A-16** Application of Proceeds from the Sale of Bonds; Source of Payment; Pledge of County’s or Municipality’s Credit; Negotiability; Exemption from Taxation; Pledge as Security for Funds Belonging to a Public Person; Investment in Bonds by Fiduciaries; No Public Hearing Required; Investment in Bonds by Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund; Investment in Bonds by Public Persons {#sec-11-86a-16 omnilex-key=us-al-statutes--title-11--11-86A-16}
(a) The proceeds from the sale of any bonds shall be applied as provided in the proceedings in which the bonds are authorized to be issued, including, without limitation, the payment of all legal, fiscal, and recording fees and expenses incurred in connection with the authorization, sale, and issuance of the bonds and, if provided in the proceedings authorizing their issuance, interest on the bonds (or if only a part of any issue of bonds is issued for acquisition purposes, interest on that portion of the bonds of that issue that is issued to pay acquisition costs) for a reasonable period prior to and during the time required for the acquisition, construction, and equipping of park and recreation facilities. An authority may provide in the proceedings authorizing the issuance of bonds for the funding of a debt service reserve and/or a replacement and extension reserve from the proceeds of its bonds.
(b) All contracts made by an authority and all bonds shall be solely and exclusively obligations of an authority and shall not constitute or create an obligation or debt of any other public person except as provided in subsection (c).
(c) A county or municipality may pledge its full faith and credit toward the retirement of any bonds or other evidences of indebtedness issued by an authority under this chapter.
(d) Bonds shall be construed to be negotiable instruments even if payable solely from only a specified source.
(e) Bonds issued by an authority and the income therefrom shall be exempt from all taxation in the state.
(f) Bonds issued by an authority may be used by the holder thereof as security for any funds belonging to any public person in any instance where security for such deposits may be required by law.
(g) Unless otherwise directed by a court having jurisdiction thereof or the document that is the source of its authority, a trustee, executor, administrator, custodian, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers now or hereafter conferred by law and with the exercise of reasonable business prudence, invest trust or fiduciary funds in bonds.
(h) Neither a public hearing nor consent of any other public person may be a prerequisite to the issuance of bonds by an authority.
(i) The bonds shall be legal investments for funds of the Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund.
(j) Public persons may invest in any bond issued by an authority.
*(Act 2000-106, p. 129, §16.)*
##### **§ 11-86A-17** Exemption from Usury and Interest Laws {#sec-11-86a-17 omnilex-key=us-al-statutes--title-11--11-86A-17}
An authority shall be exempt from all laws of the state now or hereafter governing usury or prescribing or limiting interest rates, including without limitation the provisions of Chapter 8 of Title 8.
*(Act 2000-106, p. 129, §17.)*
##### **§ 11-86A-18** Exemptions from Taxation {#sec-11-86a-18 omnilex-key=us-al-statutes--title-11--11-86A-18}
All properties of an authority, whether real, personal, or mixed, and the income therefrom, all bonds and other securities issued by an authority and the coupons applicable thereto and the income therefrom, and all indentures and other instruments executed as security therefor, all leases made pursuant to this chapter and all revenues derived from any such leases, and all deeds and other documents executed by or delivered to an authority shall be exempt from any and all taxation by any public person, including without limitation license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the probate judge in connection with the amendment of its articles or the recording of any document. The gross proceeds of the sale of any property used in the construction and equipping of any park and recreation facility for an authority, regardless of whether such a sale is to an authority or any contractor or agent thereof, shall be exempt from the sales tax imposed by Article 1 of Chapter 23 of Title 40, and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any such sale by a public person; and any property used in the construction and equipping of any park and recreation facility for an authority, regardless of whether the property has been purchased by an authority or any contractor or agent thereof, shall be exempt from the use tax imposed by Article 2 of Chapter 23 of Title 40, and all other use and similar excise taxes now or hereafter levied on or with respect to property by a public person.
*(Act 2000-106, p. 129, §18.)*
##### **§ 11-86A-19** Limited Liability {#sec-11-86a-19 omnilex-key=us-al-statutes--title-11--11-86A-19}
The recovery of damages under any judgment against an authority or an officer, agent, or employee acting within the line and scope of his or her duties with the authority shall be limited to one hundred thousand dollars ($100,000) for bodily injury or death for one person in any single occurrence. Recovery of damages under any judgment against an authority shall be limited to three hundred thousand dollars ($300,000) in the aggregate where more than two persons have claims or judgments on account of bodily injury or death arising out of any single occurrence. Recovery of damages under any judgment against an authority shall be limited to one hundred thousand dollars ($100,000) for damage or loss of property arising out of any single occurrence. No authority shall settle or compromise any claim for bodily injury, death, or property damage for an amount in excess of the amounts hereinabove set forth.
*(Act 2000-106, p. 129, §19.)*
##### **§ 11-86A-20** Transfer of Funds and Assets to Authority {#sec-11-86a-20 omnilex-key=us-al-statutes--title-11--11-86A-20}
Any public person may transfer and convey to an authority, with or without consideration any properties, real, personal, or mixed, and all funds and assets, tangible or intangible, that may be owned by a public person or that may be jointly owned by any two or more thereof, and any funds owned or controlled by a public person or jointly by any two or more thereof, whether or not the property or funds are considered necessary for the conduct of the governmental or public functions, if any, of a public person. The transfer or conveyance shall be authorized by an ordinance or resolution duly adopted by the governing body of a public person. Any such ordinance or resolution need not be published or posted and need not be offered for more than one reading.
*(Act 2000-106, p. 129, §20.)*
##### **§ 11-86A-21** Dissolution of Authority; Title to Property of Authority to Vest in County of Incorporation Upon Dissolution of Authority Unless Otherwise Provided {#sec-11-86a-21 omnilex-key=us-al-statutes--title-11--11-86A-21}
(a) At any time when no bonds of an authority are outstanding, the authority may be dissolved by the adoption of a resolution by the board of directors recommending dissolution and by the approval of the dissolution by the governing body of the county of incorporation and each participating municipality and the adoption of a resolution to the effect that the county and each participating municipality concur. The resolution need not be published or posted and need not be offered for more than one reading. Upon the dissolution the chair and secretary of the dissolved authority shall execute articles of dissolution reciting that the resolutions have been adopted and that the authority has been dissolved. The articles of dissolution shall be filed with the probate judge, who shall record the dissolution.
(b) Upon dissolution of an authority, title to all its property shall be vested in the public persons in its articles, or if no specification exists, in the county of incorporation.
*(Act 2000-106, p. 129, §21.)*
### **Chapter 87** Ambulance Service
##### **§ 11-87-1** Creation, Establishment, Etc., Authorized; Promulgation of Rules and Regulations; Joint Operation {#sec-11-87-1 omnilex-key=us-al-statutes--title-11--11-87-1}
The governing body of any county or the governing body of any municipality within such county is hereby authorized to create and establish, maintain and operate ambulance service within the county, or within the municipality, to promote the health, welfare, and safety of the residents of the county and municipality and of citizens and others traveling within such county and may make all needful rules and regulations for the control and management of such service.
The governing body of the county and the governing body of any municipality within the county may unite in the establishment of such ambulance service, if deemed expedient, making such service common for the use of the county and of the municipality, and may make rules and regulations for the control and management thereof, and shall jointly have the same powers and authority herein conferred upon each.
The governing body of any municipality may also unite with the governing body of any other municipality within such county, or together with the governing body of the county, in the establishment of such ambulance service, if deemed expedient, making such service common for the use of the several governments, and may make rules and regulations for the control and management thereof, and shall jointly have the same powers and authority herein conferred upon each.
*(Acts 1975, No. 878, p. 1736, §1.)*
##### **§ 11-87-2** Appropriations {#sec-11-87-2 omnilex-key=us-al-statutes--title-11--11-87-2}
The governing body of any county or the governing body of any municipality may appropriate public funds to aid in or to pay for the establishment, maintenance, and operation of such ambulance service.
*(Acts 1975, No. 878, p. 1736, §2.)*
##### **§ 11-87-3** Contracts for Services {#sec-11-87-3 omnilex-key=us-al-statutes--title-11--11-87-3}
The governing body of any county or the governing body of any municipality may enter into contracts to provide such ambulance service and may appropriate and pay public funds for such service provided under such contracts.
*(Acts 1975, No. 878, p. 1736, §3.)*
##### **§ 11-87-4** Fees {#sec-11-87-4 omnilex-key=us-al-statutes--title-11--11-87-4}
The governing body of any county and the governing body of any municipality may fix and establish fees for such ambulance service; provided, that fees and charges for such service shall be limited to an amount necessary to fund the expenses of operating and maintaining such service, which shall not be operated for profit.
*(Acts 1975, No. 878, p. 1736, §4.)*
##### **§ 11-87-5** Chapter Cumulative {#sec-11-87-5 omnilex-key=us-al-statutes--title-11--11-87-5}
The provisions of this chapter are cumulative and in addition to any authority heretofore granted or authorized to any county or any municipality or municipalities for the establishment, maintenance, or operation of ambulance service.
*(Acts 1975, No. 878, p. 1736, §5.)*
### **Chapter 88** Water, Sewer and Fire Protection Authorities
#### **Article 1** General Provisions
##### **§ 11-88-1** Definitions {#sec-11-88-1 omnilex-key=us-al-statutes--title-11--11-88-1}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) APPLICANT. A natural person who files a written application with the governing body of any county in accordance with the provisions of Section 11-88-3.
(2) AUTHORITY. A public corporation organized pursuant to the provisions of this article.
(3) BOARD. The board of directors of an authority.
(4) BONDS. Bonds, notes, and certificates representing an obligation to pay money.
(5) CONCISE LEGAL DESCRIPTION. A reasonably concise description of a particular geographic area which may be by metes and bounds or by reference to government surveys, recorded maps and plats, municipal, county, or state boundary lines, well-defined landmarks and other monuments, or any combination of the foregoing.
(6) COUNTY. Any county in the state.
(7) DETERMINING COUNTY. Any county the governing body of which shall have made findings and determinations of fact in accordance with the provisions of Section 11-88-3.
(8) DIRECTOR. A member of the board of directors of the authority.
(9) FIRE PROTECTION FACILITY. Land, plants, systems, facilities, buildings, fire engines, fire hydrants, ladders, equipment, hoses, alarm apparatus, chemicals, uniforms, supplies, or any combination of any thereof used or useful or capable of future use in furnishing fire protection service and all other property deemed necessary or desirable by the authority for use in furnishing fire protection service.
(10) FIRE PROTECTION SERVICE. All services involved in protecting property and life from fires, including but not limited to discovering, ascertaining, extinguishing, preventing the spread of or fighting fires, or inspecting property for fire hazards, or any part or combination thereof. The supplying of water for use in the rendition of fire protection service shall be deemed to constitute fire protection service. The searching for, testing for, or drilling for water, the installation of necessary access ways, electric, gas, sewer, telephone, and water lines to, from, and for, the construction of buildings and accessory structures used for, and the operation and maintenance of, and pumping water from a well, a spring, a creek, a river or tributary thereof, a reservoir, or a tank by a public corporation organized under the provisions of this chapter which has as one of its stated purposes, within its certificate of incorporation or a duly adopted amendment thereto, the rendering of fire protection services shall be deemed to constitute fire protection service. Anything herein to the contrary notwithstanding, no provision of this definition shall apply to any public corporation organized under this chapter which does not specifically have as one of its stated purposes, within its certificate of incorporation or a duly adopted amendment thereto, the rendering of fire protection services.
(11) GOVERNING BODY. The county commission of a county.
(12) INCORPORATORS. The persons forming a public corporation organized pursuant to the provisions of this article.
(13) MUNICIPALITY. An incorporated city or town of the state.
(14) NEW TERRITORY. Any territory added, by amendment to the certificate of incorporation of an authority, to the area or areas in which that authority is authorized to render water service, fire protection service, sewer service or any thereof.
(15) PERSON. Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation, a municipality, a county, or an agency, department, or instrumentality of the state or of a county or municipality.
(16) PROPERTY. Real and personal property and interests therein.
(17) PUBLIC FIRE PROTECTION FACILITY. A fire protection facility which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation organized under the laws of the state, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(18) PUBLIC SEWER SYSTEM. A sewer system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation organized under the laws of the state, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(19) PUBLIC WATER SYSTEM. A water system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation organized under the laws of the state, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(20) SERVICE AREA. The geographic area or areas 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 thereof, which area may include not only territory located outside the boundaries of any municipality but also territory located within the boundaries of one or more municipalities.
(21) SEWER SERVICE. All services involved in collecting, transporting, treating, and disposing of sanitary sewage and the performing of all functions and activities reasonably incident to the operation of a sewer system.
(22) SEWER SYSTEM. A sanitary sewer system, including mains, laterals, sewage disposal plants, and sewage treatment plants and all appurtenances to such a system and all properties, rights, easements, and franchises deemed necessary or desirable by the authority for use in rendering sewer services.
(23) STATE. The State of Alabama.
(24) WATER SERVICE. The providing, furnishing, supplying, or distributing of water and the performing of all of the functions and activities reasonably incident to the operation of a water system, including the provision of water to a fire protection authority to be used in the rendition of fire protection service. The searching for, testing for, drilling for, installation of necessary access ways, electric, gas, sewer, telephone, and water lines to, from, and for the construction, operation, and maintenance of buildings and accessory structures used for pumping from a well, a spring, a creek, a river or tributary thereof, a reservoir, or a tank by a public corporation organized under the provisions of this chapter shall be deemed to be an authorized function of water service, but shall not exclusively constitute water service.
(25) WATER SYSTEM. Land, plants, systems, facilities, buildings, and other property, or any combination of any thereof, which are used or useful or capable of future use in providing, furnishing, supplying, or distributing water, including but not limited to water supply systems, water distribution systems, reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, filtration plants, purification plants, meters, valves, and all necessary appurtenances and equipment, and all properties, rights, easements, and franchises deemed necessary or desirable by the authority for use in rendering water service.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §1; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §1; Act 2013-334, p. 1173, §1.)*
##### **§ 11-88-2** Purpose of Article {#sec-11-88-2 omnilex-key=us-al-statutes--title-11--11-88-2}
This article is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §16; Acts 1965, No. 805, p. 1507; Acts 1967, No. 410, p. 1049, §11.)*
##### **§ 11-88-3** Filing of Application for Incorporation of Authority; Adoption of Resolution Approving or Denying Application by County Governing Body {#sec-11-88-3 omnilex-key=us-al-statutes--title-11--11-88-3}
(a) In order to incorporate an authority under this chapter, any number of natural persons, not less than three, shall first file a written application with the governing body of that county in which the area or areas to be served by the proposed authority is located. Such application shall contain:
(1) A statement that the authority proposes to render water service, sewer service, and fire protection service, or any one or more thereof;
(2) A concise legal description of the area or areas in which the authority proposes to render water service, sewer service, and fire protection service, or any thereof;
(3) A statement that there is no public water system adequate to serve any area in which it is proposed that the authority will render water service, that there is no public sewer system adequate to serve any area in which it is proposed that the authority will render sewer service, and that there are no public fire protection facilities adequate to serve any area in which it is proposed that the authority will render fire protection service; provided, that in lieu of the statement required by the foregoing provisions of this subdivision, the said application may state that the board of directors or similar governing or managing body of the owner of the legal or equitable title to an existing public water system, public sewer system, or public fire protection facility, as the case may be, has adopted a resolution either (i) declaring its intention to convey to the authority its interest in such existing system or facility, or both, or a leasehold estate therein, or (ii) consenting to the incorporation of the authority and its proposed service area;
(4) A statement that the establishment of an adequate water system, adequate sewer system, and adequate fire protection facility, or any thereof, will promote the public health, convenience, and welfare;
(5) A statement, that each of the applicants is a resident of and owner of real property in the area or areas of the county in which the authority proposes to render water service, sewer service, and fire protection service, or any thereof, and that each of them is a duly qualified elector of said county; and
(6) A request that the said governing body adopt a resolution declaring that it has reviewed the contents of the application and has found and determined as a matter of fact that the statements contained in the application are true.
The proposed service area described in any such application shall lie wholly within the boundaries of the county with whose governing body the application is filed and may lie either within or without or partly within and partly without the boundaries of any municipality in the said county. Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate.
(b) As promptly as may be practicable after the filing of the application with it pursuant to the provisions of subsection (a) of this section, the governing body with which the application was filed shall review the contents of the application and shall find and determine whether the statements contained in the application are true. If said governing body finds and determines that the said statements are not true, it shall deny the application, but if it finds and determines that the said statements are true, the said governing body shall adopt a resolution declaring that it has reviewed the contents of the application and has found and determined as a matter of fact that the statements in the application are true. In determining whether the statements in the application are true, the governing body with whom such application is filed may, without any investigation or further consideration, assume that the statement therein made pursuant to the provisions of subdivision (1) of subsection (a) of this section is true and may, without any investigation or further consideration, so find and determine in such resolution.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §3; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §2; Acts 1982, 2nd Ex. Sess., No. 82-761, p. 232, §1.)*
##### **§ 11-88-4** Filing of Certificate of Incorporation, Copy of Resolution of County Governing Body, Etc., with Probate Judge; Contents and Execution of Certificate of Incorporation; Entry of Order by Probate Judge Requiring Recordation of Certificate of Incorporation, Etc.; Notification of Secretary of State of Recordation of Certificate of Incorporation {#sec-11-88-4 omnilex-key=us-al-statutes--title-11--11-88-4}
(a) Within 40 days following the adoption of a resolution in accordance with Section 11-88-3, the applicants, or not less than three of the applicants, shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the determining county a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner provided in this section.
(b) The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority, together with the residence of each, and that each of them is a resident of and an owner of real property in the area of the determining county in which the authority proposes to render water service, sewer service, and fire protection service, or any thereof, and that each of them is a duly qualified elector of said county;
(2) The name of the authority (which shall include the words “water authority,” “water and fire protection authority,” “fire protection authority,” “sewer authority,” “water and sewer authority,” “water, sewer, and fire protection authority,” “fire protection and sewer authority,” or as may be appropriate);
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-88-18, that fact shall be stated);
(4) The name of the determining county, together with the date on which the governing body thereof adopted the resolution in accordance with Section 11-88-3;
(5) The location of the principal office of the authority, which shall be in the determining county;
(6) A concise legal description of the area or areas in which the authority proposes to render water service, sewer service, and fire protection service, or any thereof; and
(7) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this article or with the laws of the state.
(c) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds.
(d) When the certificate of incorporation is filed for record, there shall be attached to it a certified copy of the resolution adopted by the governing body of the determining county in accordance with Section 11-88-3 and a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty.
(e) The judge of probate shall promptly examine all such documents and shall determine whether they are complete and regular on their face and whether the form and contents of the certificate of incorporation comply with the provisions of this article. If the judge of probate shall find that all such documents are complete and regular on their face and that the form and contents of the certificate of incorporation comply with the provisions of this article, he shall enter and sign an order setting forth his findings and requiring all such documents to be recorded, together with his order. Upon the filing for record of the said order and the documents referred to therein, the authority shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation.
(f) The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §4; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §3.)*
##### **§ 11-88-5** Authorization and Procedure for Amendment of Certificate of Incorporation {#sec-11-88-5 omnilex-key=us-al-statutes--title-11--11-88-5}
(a) The certificate of incorporation of any authority incorporated under the provisions of this article may at any time and from time to time be amended in the manner provided in this section.
(b)(1) The board of directors of the authority shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the resolution and which amendment may include:
a. A change in the name of the authority;
b. The addition to the service area of the authority of new territory lying within the determining county;
c. Provisions for the operation of a system or facility the operation of which is not then provided for in the certificate of incorporation of the authority and which the authority is authorized by this article to operate;
d. Any matters which might have been included in the original certificate of incorporation;
e. Provisions for the addition to the service area of the authority of new territory lying outside the determining county, together with the related provisions referred to in paragraphs a, b, c, and d of subdivision (2) of this subsection; and
f. With respect to an authority with a service area that lies solely within one determining county, provisions for a change in the number of directors to any odd number thereof that the board deems appropriate; provided, however, in no case shall the total number of directors be less than three or more than five which provision may also provide for staggering the terms of office of any new directors in the manner contemplated by Section 11-88-6.
(2) If any proposed amendment would add to the service area of the authority new territory any part of which lies within any county other than the determining county, such proposed amendment shall include, in addition to a concise legal description of the proposed new territory and any other matters permitted by the foregoing provisions of subdivision (1) of this subsection:
a. Provision for election of at least one director by the governing body of each county in which any part of the proposed new territory lies; notwithstanding the foregoing, the county commission of a county in which the new territory is proposed to be added may waive the appointment of any director or directors by resolution of the county governing body;
b. Provision for any change in the total number of directors that the board deems appropriate; provided, however, that in no case shall such total number of directors be less than three;
c. Provision for staggering the terms of office of the directors in the manner contemplated by Section 11-88-6; and
d. Any provision that the board deems appropriate for allocation of the assets of the authority, upon dissolution, among the counties in which the service area lies.
(3) If the proposed amendment makes provision for the operation of a system or facility not then provided for in the certificate of incorporation of the authority, such proposed amendment shall include, in addition to a concise legal description of the area or areas in which the authority proposes to render service from such system or facility (which such area or areas shall lie wholly within the boundaries of the determining county and may lie either within or without or partly within and partly without the boundaries of any municipality in the determining county), a provision for an appropriate change in the name of the authority.
(c) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the board shall file a written application with the governing body of each county in which any part of the authority’s then existing service area lies and with the governing body of each county in which any part of the proposed new territory lies. Such application shall:
(1) State, in the event that it is proposed to make provision for the operation of a system or facility not then provided for in the certificate of incorporation of the authority, that the authority proposes to render service from such a system or facility (which shall be named), contain a concise legal description of the area or areas in which the authority proposes to render the service provided for by such system or facility and state that there is no public water system, public sewer system, or public fire protection facility, as the case may be, adequate to serve any area in which it is proposed that the authority will render such service;
(2) State, in the event that it is proposed to add any new territory to the service area of the authority, that there is no public water system adequate to serve any new territory in which it is proposed that the authority will render water service, that there is no public sewer system adequate to serve any new territory in which it is proposed that the authority will render sewer service, and that there is no public fire protection facility adequate to serve any new territory in which it is proposed that the authority will render fire protection service; provided, that in lieu of the statement required by the foregoing provisions of this subdivision, the application may state that the board of directors or similar managing body of the owner of the legal or equitable title to an existing public water system, public sewer system, or public fire protection facility, as the case may be, has adopted a resolution declaring its intention to convey to the authority its interest in such existing system or facility, or both, or a leasehold estate therein;
(3) State that the amendment will promote the public health, convenience and welfare; and
(4) Request each governing body with which the application is filed to adopt a resolution declaring that it has reviewed the contents of the application and has found and determined as a matter of fact that the statements contained in the application are true.
Every such application shall be accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with such documents in support of the application as the board may consider appropriate.
(d) As promptly as may be practicable after the filing of the application with any governing body pursuant to the foregoing provisions of subsection (c), that governing body shall review the application and shall find and determine whether the statements in the application are true. In finding and determining whether the amendment would promote the public health, convenience, and welfare, the governing body may consider, in conjunction with any other factors it may deem relevant, the desirability of alternative means of furnishing any proposed new territory with water service, sewer service, and fire protection service, or any thereof. If the governing body finds and determines that the statements in the application are true, it shall adopt a resolution declaring that it has reviewed the application and has found and determined as a matter of fact that the statements in the application are true. If the governing body finds and determines that the statements in the application are not true, it shall deny the application. In the event that any such application shows that the authority proposes to make provision for the operation of a system or facility not then provided for in its certificate of incorporation, any governing body with whom such application is filed may, without any investigation or further consideration, assume that any statement therein that the authority proposes to render service from such a new system or facility is true and may, without any investigation or further consideration, so find and determine in such resolution.
(e) Within 40 days following the adoption by the governing body with which the application shall have been filed of a resolution declaring the statements in the application to be true (or, in the event the application was filed with the governing body of more than one county, within 40 days following the adoption of such a resolution by that governing body that was the last to adopt such a resolution, but if and only if the governing body of each other county with whom such application was filed has theretofore adopted such a resolution), the chairman of the board or other chief executive officer of the authority and the secretary of the authority shall sign and file for record in the office of the judge of probate of the determining county a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of the respective resolution by the board and by each of the governing bodies and setting forth the proposed amendment. If the proposed amendment provides for a change in the name of the authority, there shall be filed, together with the certificate required by the immediately preceding sentence, a certificate by the Secretary of State showing that the proposed new name of the authority is not identical to that of any other corporation then in existence and organized under the laws of this state or so nearly similar to that of any other such corporation as to lead to confusion and uncertainty.
(f) The judge of probate shall promptly examine each such certificate and shall determine whether it is complete and regular on its face and whether the proposed amendment complies with the provisions of this article. If the judge of probate shall find that each such certificate is complete and regular on its face and that the proposed amendment complies with the provisions of this article, the judge of probate shall enter and sign an order setting forth this finding and requiring each such certificate to be recorded, together with the order. Upon the filing for record of the order and each such certificate, the amendment to the certificate of incorporation shall become effective.
(g) If the proposed amendment effects a change in the name of the authority, the judge of probate shall promptly send a notice to the Secretary of State, advising the Secretary of State of such change.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §5; Acts 1967, No. 410, p. 1049, §4; Acts 1991, No. 91-599, p. 1102, §1; Act 2017-432, §1.)*
##### **§ 11-88-5.1** Ratification of Amendment {#sec-11-88-5.1 omnilex-key=us-al-statutes--title-11--11-88-5.1}
Any action heretofore taken and approved by a majority vote of the board of directors of any water, sewer, or fire protection authority, and found and determined to be true by the governing body of each county in which any part of the said authority’s then existing service area lies, providing for an amendment to the authority’s certificate of incorporation increasing the number of members of said authority’s board of directors, is hereby authorized, ratified, and confirmed regardless of any defects, mistakes, errors, or ambiguities in the authorization thereof or in the provisions of law respecting amendments to certificates of incorporation of water, sewer, and fire protection authorities.
*(Acts 1991, No. 91-599, p. 1102, §3.)*
##### **§ 11-88-6** Board of Directors {#sec-11-88-6 omnilex-key=us-al-statutes--title-11--11-88-6}
(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) 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: 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; the 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 the 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. Thereafter, 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 increase the membership of the board, the board shall thereafter consist of such number of directors, elected by such governing bodies, as may be specified in the amendment. The terms of office of any new directors added by any such 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 such new director be for a period of six years. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by that governing body which 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 such 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) 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. Directors shall be eligible for reelection. 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 dollars ($600) per meeting attended but not to exceed seven thousand two hundred dollars ($7,200) per year.
(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 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 thereof, 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 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. 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.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §6; Acts 1986, Ex. Sess., No. 86-717, p. 135; Acts 1989, Ex. Sess., No. 89-994, p. 38; Acts 1993, No. 93-681, p. 1303, §1; Act 2002-254, p. 533, §1; Act 2010-580, p. 1291, §1.)*
##### **§ 11-88-7** Powers of Authority Generally; Power of Authority to Acquire, Operate, Etc., Systems, Etc., Outside Service Area; Provisions in Schedules of Rates and Charges Generally; Powers of Authority Organized to Construct and Operate Sewer System {#sec-11-88-7 omnilex-key=us-al-statutes--title-11--11-88-7}
(a) The authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be in perpetuity, subject to the provisions of Section 11-88-18) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil actions, except as otherwise provided in this article, and to defend civil actions against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(5) To acquire, receive, and take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, real, personal or mixed, whether located in one or more counties and whether located within or outside the service area;
(6) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted under this section;
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate water systems, sewer systems, and fire protection facilities, or any part or combination of any thereof, whether located in one or more counties and whether located within or outside the service area, and to acquire real and personal property, franchises, and easements deemed necessary or desirable in connection therewith;
(8) To distribute and sell water, either at retail or for resale, within the service area or in any part thereof upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe;
(9) To furnish and provide sewer service in the service area or in any part thereof upon such reasonable terms and for such reasonable rates and considerations as the board may prescribe;
(10) To furnish and provide fire protection service in the service area or in any part thereof upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe;
(11) To sell and issue bonds of the authority in order to provide funds for any corporate function, use, or purpose, any such bonds to be payable solely out of the revenues derived from any water system, sewer system, and fire protection facility, or any thereof of the authority;
(12) To assume obligations secured by a lien on or payable out of or secured by a pledge of the revenues from any water system, sewer system, and fire protection facility, or part of any thereof, that may be acquired by the authority, any obligation so assumed to be payable by the authority solely out of the revenues derived from the operation of any water system, sewer system, and fire protection facility, or any thereof of the authority;
(13) To pledge for payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable as provided in this article;
(14) To execute and deliver, pursuant to the provisions of this section and of Sections 11-88-8 and 11-88-9, mortgages and deeds of trust and trust indentures or either;
(15) To exercise the power of eminent domain in the manner provided in and subject to the provisions of Title 18, as amended; provided, however, that this subdivision shall not be deemed to authorize the authority to acquire, without the consent of the owner or owners thereof, any water supply system or water distribution system from which water service is at the time being furnished, any sewer system from which sewer service is at the time being furnished, or any property that is at the time being used in the furnishing of fire protection service;
(16) To appoint, employ, contract with and provide for the compensation of such officers, employees, and agents, including, but without limitation to, engineers, attorneys, management consultants, and fiscal advisers, as the business of the authority may require and at its option to provide a system of disability pay, retirement compensation and pensions, or any of them without regard to any provisions of Sections 41-16-50 through 41-16-63 that might otherwise be applicable;
(17) To make and enforce reasonable rules and regulations governing the use of any water system, sewer system, or fire protection facility owned or controlled by the authority;
(18) To provide for such insurance as the board may deem advisable;
(19) To invest any funds of the authority that the board may determine are not presently needed in the operation of its properties in bonds of the United States of America, bonds of the state, bonds of any county or municipality and interest bearing bank deposits or any thereof;
(20) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any county, municipality, or other political subdivision of the state and any public corporation organized under the laws of the state and to make such contracts with them or any of them as the board may deem advisable to accomplish the purposes for which the authority was established;
(21) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any water system, sewer system, or fire protection facility of the authority;
(22) To sell and convey, with or without valuable consideration, any of its water systems, sewer systems, or fire protection facilities or any portion of any of the said systems and facilities to any one or more counties, municipalities, or public corporations organized under the laws of the state which have the corporate power to operate the system and facilities or portions thereof so conveyed and the property and income of which are not subject to taxation; provided, that any such sale and conveyance may be made only with the consent of each county in which any part of the service area of the authority is then located, such consent to be evidenced by a resolution adopted by the governing body of each consenting county, and only if any such conveyance would not constitute a breach of any then outstanding mortgage and deed of trust, trust indenture or other agreement to which the authority is a party;
(23) To enter into a management agreement or agreements with any person for the management by the authority of any water system, sewer system, or fire protection facility, or any thereof, upon such terms and conditions as may be mutually agreeable; and
(24) To fix and revise from time to time reasonable rates, fees, and other charges for water service, sewer service, and fire protection service or any thereof furnished or to be furnished by any water system, sewer system, or fire protection facility or portion of any thereof owned or operated by the authority and to collect all charges made by it.
(b) Nothing in this section shall be construed to permit an authority to acquire, receive, take, hold, establish, develop, construct, reconstruct, enlarge, improve, maintain, equip, or operate any property or water system, sewer system, and fire protection facility, or any part or combination of any thereof, located outside the service area, except as an incident to the rendering of water service, sewer service, and fire protection service, or any thereof inside the service area.
(c) Any schedule or schedules of rates and other charges adopted by the board may:
(1) Provide for the rendition by the authority to customers served by it of combined statements or bills for service furnished from its water systems, its sewer systems, and its fire protection facilities, or any one or more of any thereof;
(2) Permit the authority to decline to accept payment of charges for service from any of its said systems and facilities, without payment of charges for service at the same premises from any one or more of its other systems and facilities;
(3) Provide for a discontinuance of service from any or all of its said systems and facilities at any premises with respect to which there is a delinquency in the payment of charges for service from any system or facility of the authority;
(4) Provide for the payment of connection fees, disconnection fees, and reconnection fees; and
(5) Require, as a prerequisite to the rendition of any service, the making of a deposit as security for payment of bills, on which deposit the authority shall not be obligated to pay or allow interest.
(d) Any authority organized under this article for the purpose of constructing and operating a sewer system, either separately or in combination with a water system or fire protection facility, or both, shall have all of the powers and authority set forth in this section, either separately or in combination with any other system, service, or facility referred to in this section.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §7; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §5.)*
##### **§ 11-88-7.1** Additional Powers {#sec-11-88-7.1 omnilex-key=us-al-statutes--title-11--11-88-7.1}
(a) Any authority organized or operating pursuant to Chapter 88 of Title 11 shall, in addition to all other powers now or hereafter granted by law, have the following powers and rights:
(1) To borrow money for temporary use for any of its corporate purposes and, in evidence of such borrowing, to issue from time to time revenue bonds or notes maturing not later than 36 months from the date of issuance. Any such temporary borrowing may be made in anticipation of the sale and issuance of long-term revenue bonds, and in such event, the principal proceeds from the sale of such long-term revenue bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary revenue bonds or notes issued in anticipation of the sale and issuance of such long-term revenue bonds. Any such temporary borrowing may also be made with respect to a project simultaneously with or after the sale and issuance of long-term revenue bonds issued with respect to such project if, under the terms of the proceedings under which such long-term revenue bonds are issued, the proceeds therefrom or any part thereof may not be used or released until completion of the project with respect to which issued or other similar contingency. In such case, the principal proceeds from the long-term revenue bonds shall, when released and to the extent necessary, be applied for payment of the temporary bonds or notes. Any temporary bonds or notes issued pursuant to this paragraph may be refunded or renewed or extended for an additional period of not more than 36 months from the date of maturity of the temporary bonds or notes being refunded or renewed or extended, but otherwise pursuant to all of the terms and conditions of this paragraph, whether or not the project with respect to which the outstanding temporary revenue bonds or notes were issued has been completed.
(2) To sell, transfer, convey, grant options to purchase, or lease all or any part of its system or systems for such consideration and on such terms as it shall deem advisable and in the best interest of the authority.
(3) To consent and agree to the assignment or payment of any income received from the investment of any moneys of funds of the authority or representing the proceeds of its bonds or notes to any other public corporation or public entity, including, without limitation, the determining county (as defined in Section 11-88-1) or the State of Alabama.
(4) To loan or advance its funds, including the proceeds of its bonds, to any person (as defined in Section 11-88-1) at such, if any, interest as it shall determine, for the purpose of financing the construction of a system or any part thereof.
(5) To contract with others for the construction of all or any part of a system or systems or any part thereof.
(b) The proceeds of any bond issued by an authority and moneys held in any special fund established by an authority in connection with the issuance of any of its bonds may be invested in any direct obligations of the United States of America, the obligations of any agency of the United States of America, interest bearing bank deposits, or in any securities the payment of the principal of and interest on which is fully secured by direct obligations of the United States of America.
(c) An authority shall be under no obligation to render service to the citizens of any municipality which shall not have granted the authority and those claiming under it a franchise for any system of the authority within such municipality without payment of any fee, charge, or cost other than the cost of publication of the ordinance granting the franchise.
(d) Any transaction to which an authority or a determining county (as defined in Section 11-88-1) is a party shall be exempt from any tax levied pursuant to Article 4 of Chapter 12 of Title 40 or any tax levied in substitution therefor or in lieu thereof.
(e) Any water system, sewer system, or fire protection facility or any part thereof leased or subleased to, or operated or managed by, any determining county (as defined in Section 11-88-1), whether the lease or sublease be by the authority or any private party, including without limitation corporations or partnerships, shall be exempt from all state, county, and other taxes, including without limitation ad valorem taxes, regardless of the entity that shall hold the legal title to such system or facility or any part thereof or any remainder or reversionary interest therein.
(f) Any determining county (as defined in Section 11-88-1) may acquire by lease or sublease any property comprising all or any part of a water system, sewer system, or fire protection facility from an authority or from any vendee or lessee or sublessee of an authority, or may manage or operate the same, having all rights of an authority with respect thereto.
*(Acts 1982, 2nd Ex. Sess., No. 82-767, p. 243.)*
##### **§ 11-88-8** Bonds of Authority - Form, Terms, Denominations, Etc.; Sale; Execution and Delivery; Refunding; Liability Thereon; Security for Payment of Principal and Interest and Payment Thereof Generally; Provisions in Mortgages, Deeds of Trust or Trust Indentures Executed as Security for Payment of Bonds Generally {#sec-11-88-8 omnilex-key=us-al-statutes--title-11--11-88-8}
All bonds issued by the authority shall be signed by the chairman of its board or other chief executive officer and attested by its secretary and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman of its board or other chief executive officer; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto and a facsimile of the signature of the chairman of its board or other chief executive officer may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
Any such bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this article and shall bear such rate or rates of interest, or no interest, computed, compounded (if determined by the board to be advantageous), payable at such time or times, and evidenced in such manner, as may be provided by resolution of its board. Bonds of the authority may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds issued or obligations assumed by the authority may thereafter at any time (whether before, at or after maturity of any such principal and whether at, after or not exceeding six months prior to the maturity of any such interest) and from time to time be refunded by the issuance of refunding bonds of the authority, which may be sold by the authority at public or private sale at such price or prices as may be determined by its board to be most advantageous or which may be exchanged for the bonds or other obligations to be refunded. The authority may pay all expenses, premiums and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the authority shall be construed to be negotiable instruments although payable solely from a specified source.
All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of any county or municipality; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority.
Any bonds issued by the authority shall be limited or special obligations of the authority payable solely out of the revenues of the authority specified in the proceedings authorizing those bonds. Any such proceedings may provide that the bonds therein authorized shall be payable solely out of the revenues derived from the leasing, sale or operation of all water systems, sewer systems, and fire protection facilities owned by the authority or solely out of the revenues from the leasing, sale or operation of any one or more of such system or facilities or parts thereof, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems or facilities of the authority.
The authority may pledge for the payment of any of its bonds the revenues from which such bonds are payable and may execute and deliver a trust indenture evidencing any such pledge or a mortgage and deed of trust conveying as security for such bonds the water systems, sewer systems or the fire protection facilities or any part of any thereof, the revenues or any part of the revenues from which are so pledged. Any mortgage and deed of trust or trust indenture made by the authority may contain such agreements as the board may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage and deed of trust or affected by such trust indenture and respecting the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made; provided, that no such instrument shall be subject to foreclosure.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §9; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §7; Acts 1982, 2nd Ex. Sess., No. 82-761, p. 232, §2.)*
##### **§ 11-88-9** Bonds of Authority - Contracts to Secure Payment of Principal and Interest {#sec-11-88-9 omnilex-key=us-al-statutes--title-11--11-88-9}
As security for payment of the principal of and interest on bonds issued or obligations assumed by it, the authority may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any water system, sewer system or fire protection facility owned by it or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from such system or facility, for the disposition and application of its gross revenues or any part thereof and for any other act or series of acts not inconsistent with the provisions of this article for the protection of the bonds and other obligations being secured and the assurance that the revenues from such system or facility will be sufficient to operate such system or facility, maintain the same in good repair and in good operating condition, pay the principal of and interest on any bonds payable from such revenues and maintain such reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of such system or facility and the making of replacements thereof and capital improvements thereto.
Any contract pursuant to the provisions of this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust or trust indenture made by the authority under this article.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §10; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §8.)*
##### **§ 11-88-10** Bonds of Authority - Statutory Mortgage Lien to Secure Payment of Principal and Interest {#sec-11-88-10 omnilex-key=us-al-statutes--title-11--11-88-10}
Any resolution of the board or trust indenture under which bonds may be issued pursuant to the provisions of this article may contain provisions creating a statutory mortgage lien, in favor of the holders of such bonds and of the interest coupons applicable thereto, on the water systems, sewer systems and fire protection facilities or any thereof (including any after-acquired property) out of the revenues from which such bonds are made payable. The said resolution of the board or the said trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of such water systems, sewer systems and fire protection facilities or any thereof may be located of a notice containing a brief description of such systems and facilities or either, a brief description of such bonds and a declaration that said statutory mortgage lien has been created for the benefit of the holders of such bonds and the interest coupons applicable thereto upon such systems and facilities or either, including any additions thereto and extensions thereof. Each judge of probate shall receive, record and index any such notice filed for record in his office. The recording of such notice, as provided in this section, shall operate as constructive notice of the contents thereof.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §11; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §9.)*
##### **§ 11-88-11** Bonds of Authority - Disposition of Proceeds from Sale of Bonds {#sec-11-88-11 omnilex-key=us-al-statutes--title-11--11-88-11}
All moneys derived from the sale of any bonds issued by the authority shall be used solely for the purpose or purposes for which the same are authorized, including the funding of all or part of any reserve funds which may be required for debt service, replacement and extension or capital improvements, and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, engineering, legal and other expenses incurred in connection with the issuance of and security for the bonds, including, without limitation, the charges, premiums or fees in connection with any debt service insurance or letter of credit or other additional security given with respect to its bonds, whether such amounts are to be paid in a lump sum or over a period of time;
(2) Interest on bonds in the case of bonds issued to pay costs of construction or, if a part only of any series of bonds is issued for construction purposes, interest on that portion of the bonds of that series that is issued to pay construction costs prior to and during such construction and for not exceeding one year after completion of such construction; and
(3) Any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded in the case of bonds issued for the purpose of refunding principal and interest, or either, with respect to bonds issued or obligations assumed by the authority.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §12; Acts 1982, 2nd Ex. Sess., No. 82-761, p. 232, §3.)*
##### **§ 11-88-12** Establishment and Revision of Rates, Fees, and Charges for Services Rendered by Authority; Applicability of Provisions of Section to Authority Organized to Construct and Operate Sewer System {#sec-11-88-12 omnilex-key=us-al-statutes--title-11--11-88-12}
(a) Rates, fees, and charges for water service, sewer service, and fire protection service rendered by the authority from any of its water systems, sewer systems, or fire protection facilities shall be so fixed and from time to time revised as at all times to provide funds at least sufficient to:
(1) Pay the cost of operating, maintaining, repairing, replacing, extending and improving the systems and facilities, or either, from which such services are rendered;
(2) Pay the principal of and the interest on all bonds issued and obligations assumed by the authority that are payable out of the revenues derived from operation of those systems and facilities as the said principal and interest become due and payable;
(3) Create and maintain such reserves for the foregoing purposes or any of them as may be provided in any mortgage and deed of trust or trust indenture executed by the authority under this article or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of any such system or facility; and
(4) Make such annual payments, if any, to the United States of America or any agency or instrumentality thereof, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state and any public corporations organized under the laws of the state as the authority may have contracted to make.
(b) The provisions of subsection (a) of this section shall apply to any authority organized under this article for the purpose of constructing and operating a sewer system, either separately or in combination with a water system or fire protection facility or both.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §8; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §6.)*
##### **§ 11-88-13** Loans, Sales, Grants, Etc., of Money, Property, Etc., to Authority by Counties, Municipalities, Public Corporations, Etc {#sec-11-88-13 omnilex-key=us-al-statutes--title-11--11-88-13}
For the purpose of securing water service, sewer service, or fire protection service or aiding or cooperating with the authority in the planning, development, undertaking, construction, extension, improvement, operation, or protection of water systems, sewer systems, and fire protection facilities, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms and with or without consideration, as it may determine:
(1) Lend or donate money to or perform services for the benefit of the authority;
(2) Donate, sell, convey, transfer, lease or grant to the authority, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any water system, sewer system, or fire protection facility, any interest in any thereof and any franchise; and
(3) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, or operation of water systems, sewer systems, and fire protection facilities.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §13; Acts 1966, Ex. Sess., No. 436, p. 581; Acts 1967, No. 410, p. 1049, §10.)*
##### **§ 11-88-14** Use by Authority of Public Roads Rights-of-Way {#sec-11-88-14 omnilex-key=us-al-statutes--title-11--11-88-14}
Each authority is authorized to use the rights-of-way of all public roads in the state subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama of 1901, or the consent from the county governing body subject to uniform regulations applying to both counties and authorities authorized under this chapter established by resolution of the county governing body and delivered to each authority operating within the county or an adjoining county by registered mail within 10 days of adoption by the county governing body; provided, that nothing in this section shall be construed to exempt any authority from the requirements of Section 23-1-4 or Sections 37-15-1 to 37-15-11, inclusive; provided further, that the said authority shall have the duty to restore to pre-use condition and at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in laying pipes or performing any of its other corporate functions and post a bond in the amount required to restore to said condition as determined by the county engineer. This section shall only apply to water, sewer, and fire protection authorities governed by this article.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §17; Act 2000-152, p. 215, §1.)*
##### **§ 11-88-15** Furnishing of Fire Protection Service by Authority Declared Governmental Function; Immunity from Tort Liability of Authority {#sec-11-88-15 omnilex-key=us-al-statutes--title-11--11-88-15}
The furnishing of fire protection service by an authority is hereby declared to be a governmental function.
The authority shall not be liable for any tort, whether negligent or wilful, committed by any director, agent, servant, or employee of the authority in the furnishing of fire protection service or in the construction, maintenance, or operation of any fire protection facility.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §14.)*
##### **§ 11-88-15.1** Soliciting Contributions for Local Volunteer Fire Departments; Monthly Usage Estimates {#sec-11-88-15.1 omnilex-key=us-al-statutes--title-11--11-88-15.1}
(a) County water systems incorporated pursuant to this chapter or other portions of this title and municipal water systems incorporated pursuant to Chapter 50 or other portions of this title are expressly authorized to solicit their customers, through monthly or other periodic billings for water services, for voluntary contributions for local volunteer fire departments, provided the board of directors of the system has first adopted a resolution approving the participation in the solicitation authorized by this section, and have established a minimum amount for the checkoff. County and municipal water systems that are granted permission to participate may provide for one or more customer checkoffs on their billings as a method for soliciting such voluntary contributions. Participating county and municipal water systems shall distribute such contributions to the volunteer fire departments as indicated by the customers within 30 days of receipt of such contributions.
(b) Each volunteer fire department receiving water from a water system for firefighting and training purposes shall provide monthly estimates of the amount of water used during the previous month to the system that provides the water.
*(Act 2006-203, p. 301, §§1, 2.)*
##### **§ 11-88-16** Exemption from Taxation of Authority and Property, Leases, Bonds, Etc., Thereof; Payment of Fees, Taxes, or Costs to Probate Judge for Incorporation, Etc.; Imposition of License or Excise Tax Upon Authority {#sec-11-88-16 omnilex-key=us-al-statutes--title-11--11-88-16}
The authority, the property and income of the authority, all bonds issued by the authority, the income from such bonds, conveyances by or to the authority and leases, mortgages, and deeds of trust by or to the authority shall be exempt from all taxation in the State of Alabama.
The authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
No license or excise tax may be imposed on any authority in respect of the privilege of engaging in any of the activities authorized by this chapter.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §15.)*
##### **§ 11-88-17** Exemption of Authority from Usury Laws, Etc {#sec-11-88-17 omnilex-key=us-al-statutes--title-11--11-88-17}
Each authority now or hereafter organized under the provisions of this article is hereby exempted from the laws of the State of Alabama governing usury and prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1971, 3rd Ex. Sess., No. 169, p. 4419.)*
##### **§ 11-88-18** Authorization and Procedure for Dissolution of Authority; Vesting of Title to Properties of Authority and Apportionment Thereof Upon Dissolution of Authority {#sec-11-88-18 omnilex-key=us-al-statutes--title-11--11-88-18}
At any time when no bonds theretofore issued by the authority or obligations theretofore assumed by the authority are outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of the said resolution in the office of the judge of probate of the determining county, the authority shall thereupon stand dissolved and, in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to and be divided and apportioned among the determining county and any other county or counties in which any part of the service area may be located, all in such manner and to such extent as may be provided in the authority’s certificate of incorporation, as amended; provided, however, that in the absence of a contrary provision in the said certificate of incorporation, as amended, title to real estate and tangible personal property, other than cash, shall vest in the county in which the said real estate or tangible personal property is located and the title to cash on hand and in banks, accounts receivable, choses in action, and other intangible property, other than intangible interest in land, shall vest in all of the counties in which any part of the service area lies. Each such county shall have title to said cash and intangible items as a tenant in common thereof, the fractional interest of each such tenant in common in said items being represented by a fraction the numerator of which is an amount equal to the gross revenues derived by the authority during its then next preceding complete fiscal year from service rendered in that part of its service area within that county and the denominator of which is an amount equal to the gross revenues derived by the authority during the same period from services rendered in its entire service area.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §18.)*
##### **§ 11-88-19** Existence of Authority Not to Prevent Subsequent Incorporation, Etc., of Another Authority {#sec-11-88-19 omnilex-key=us-al-statutes--title-11--11-88-19}
The existence of one or more authorities incorporated under the provisions of this article shall not prevent the subsequent incorporation under this article of another authority or the amendment of the certificate of incorporation of another authority pursuant to determinations made by the same county or counties, even though the service area described in the certificate of incorporation, as originally filed or as amended, of any existing authority may include territory that lies within the proposed service area of an authority that is proposed to be incorporated under this article or that proposes to amend its certificate of incorporation under this article; provided, however, that the provisions of this section shall not be deemed to eliminate the requirements that the statements of fact referred to in subdivision (3) of subsection (a) of Section 11-88-3 and in subdivisions (1) and (2) of subsection (c) of Section 11-88-5 be determined to be true.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §19; Acts 1967, No. 410, p. 1049, §12.)*
##### **§ 11-88-20** Validation of Prior Defective Incorporations Under Provisions of Article {#sec-11-88-20 omnilex-key=us-al-statutes--title-11--11-88-20}
In all cases where there has heretofore been an attempt to incorporate a public corporation under the provisions of this article, and a certificate of incorporation with respect to such corporation has been filed in the office of the judge of probate of the county in which such corporation was sought to be incorporated, but the attempted incorporation is invalid because of some irregularity in the procedure followed, the attempted incorporation of such public corporation with respect to which such a certificate of incorporation has been filed shall be and hereby is validated ab initio, notwithstanding any irregularity in the procedure for incorporation of such corporation, including, without limiting the generality of the foregoing:
(1) The failure of the judge of probate in whose office such certificate of incorporation was filed to examine such certificate of incorporation or to enter an appropriate order with respect thereto;
(2) The failure of the governing body of the county to whom application was made for the incorporation of such corporation to adopt the resolution required by Section 11-88-3, as amended, or to include in such resolution the appropriate findings;
(3) The failure of the persons making such application to the county governing body to sign the certificate of incorporation so filed in the office of the judge of probate;
(4) The fact that the certificate of incorporation so filed was not signed by not less than three of the persons making such application to the county governing body;
(5) The failure to file the certificate of incorporation within the time specified by statute after adoption by the county governing body of the appropriate resolution;
(6) The failure to attach to the certificate of incorporation any one or more of the documents required to be attached thereto at the time of such incorporation; or
(7) The inclusion in the certificate of incorporation of any matter not authorized to be included therein or contrary to the statutory requirements with respect to such corporation.
*(Acts 1971, No. 610, p. 1326.)*
##### **§ 11-88-21** When Proceedings, Notice, Etc., for Incorporation of Authority, Acquisition of Property, Issuance of Bonds, Etc., Required; Exemption of Authority, Etc., from Jurisdiction and Regulation of Public Service Commission, Etc {#sec-11-88-21 omnilex-key=us-al-statutes--title-11--11-88-21}
Except as expressly otherwise provided in this article or Article 2 of this chapter no proceeding, notice, or approval shall be required for the incorporation of any authority or the amendment of its certificate of incorporation, the acquisition of any property, water system, sewer system, or fire protection facility or the issuance of any bonds, mortgage, and deed of trust or trust indenture.
The authority, every water system, sewer system, or fire protection facility owned by the authority or leased or subleased to a determining county and the rates and charges thereof shall be exempt from all jurisdiction of and all regulation and supervision by the Alabama Public Service Commission and neither a public hearing nor the consent of the State Department of Finance shall be prerequisite to the issuance of bonds by the authority or any transaction between the authority and the determining county or between the determining county and any vendor, vendee, lessor, or lessee to or from the authority.
*(Acts 1965, 1st Ex. Sess., No. 107, p. 132, §16; Acts 1965, No. 805, p. 1507; Acts 1967, No. 410, p. 1049, §11; Acts 1982, 2nd Ex. Sess., No. 82-761, p. 232, §4.)*
#### **Article 2** Construction of Sewage Treatment or Disposal Plants, Etc., in Resort Areas by Authorities
##### **§ 11-88-40** Definitions {#sec-11-88-40 omnilex-key=us-al-statutes--title-11--11-88-40}
When used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) AUTHORITY. A public corporation organized pursuant to the provisions of Article 1 of this chapter, as amended.
(2) BOARD. The board of directors of an authority.
(3) GOVERNING BODY. The county commission of a county.
(4) IMPROVEMENT. Any sanitary sewage treatment or sewage disposal plant or any sanitary sewer, including mains, laterals, trunk lines, collector lines, outfall lines, force mains, and appurtenant facilities.
(5) RESORT AREA. An area located outside the corporate limits of any municipality in which the primary use of the majority of the real property is for recreational pursuits or those associated with relaxation, avocation, or pleasure, including vacation homes and facilities and commercial amusement or recreational establishments providing such facilities or goods or services with respect thereto.
(6) PROPERTY. Only land which has been subdivided and platted.
*(Acts 1973, No. 826, p. 1293, §1.)*
##### **§ 11-88-41** Legislative Findings and Declarations; Powers Granted Authorities by Article to Be Exercised Only in Resort Areas and with the Consent of County Governing Bodies {#sec-11-88-41 omnilex-key=us-al-statutes--title-11--11-88-41}
(a) The Legislature hereby finds, determines, and declares that it is necessary and desirable that authorities whose service area includes a resort area be authorized to exercise the powers granted by this article, after proper action by a governing body or bodies, since the predominant use of improvements in such resort areas is seasonal and service use charges may not provide an adequate and feasible basis for financing such improvements.
(b) No authority shall exercise any of the powers granted in this article except in that part of its service area that is a resort area and then only if the governing body of each county in which any part of its service area is located has consented to the exercise of such powers, evidenced by the adoption of a resolution, spread upon its minutes, naming the authority, finding that its service area includes or constitutes a resort area (which shall be described in such resolution by a concise legal description), finding that no part of the resort area so described lies within the corporate limits of any municipality, and finding that it is necessary or desirable that the authority have and exercise such powers, and giving such consent. The findings so made by the governing body shall be conclusive for all purposes.
*(Acts 1973, No. 826, p. 1293, §2.)*
##### **§ 11-88-42** Powers of Authorities Generally {#sec-11-88-42 omnilex-key=us-al-statutes--title-11--11-88-42}
Any authority authorized pursuant to this article may design or cause to be designed, contract for and execute or cause to be executed the construction or reconstruction of any improvement in its service area, and may cause the cost and expense of all or any part of any such improvement to be assessed against the property abutting on or drained, served, or benefited by such improvement to the extent of the increased value of the said property by reason of the special benefits derived from the said improvement.
*(Acts 1973, No. 826, p. 1293, §3.)*
##### **§ 11-88-43** Adoption of Resolution by Board Describing Improvement, Property Benefited, Etc., and Directing Drawing, Etc., of Details, Drawings, Plans, Etc {#sec-11-88-43 omnilex-key=us-al-statutes--title-11--11-88-43}
When the board shall determine to make an improvement, the cost of which or any part thereof it is proposed to assess against the property abutting on or drained, served, or otherwise specially benefited or increased in value by the said improvement, it shall adopt a resolution to that effect, describing the property to be drained, served, or benefited by such improvement and define the same by naming the streets, avenues, alleys, or other lines by which the same is bounded or shall describe the frontage of the property abutting on, or drained, served, or benefited by such improvement. The said resolution shall also describe the nature and extent of the work and the general character of the materials to be used and shall direct that full details, drawings, plans, specifications, and surveys of the said work and estimates be prepared by a registered engineer, or the board may in such resolution adopt plans for such work already prepared. Such resolution may set out and describe certain alternative types of materials and the board may require advertisements for proposals on the various types enumerated and the final selection by the board of the type or types of the said materials from among the alternatives so enumerated shall, in that event, be postponed until the bids shall have been received.
*(Acts 1973, No. 826, p. 1293, §4.)*
##### **§ 11-88-44** Filing of Details, Drawings, Plans, Etc., for Examination by Property Owners; Appointment of Date for Hearing of Objections as to Improvement, Etc {#sec-11-88-44 omnilex-key=us-al-statutes--title-11--11-88-44}
Such details, drawings, plans, specifications, surveys, and estimates shall, when completed, be placed on file not later than two weeks prior to the date of the meeting provided for in this article in the office of the board or some other place designated in such resolution where property owners who may be affected by such improvement may see and examine the same, and the said resolution shall appoint a time when the board will meet, which shall be not less than two weeks after the date of the first publication of the said resolution, to hear any objections or remonstrances that may be made to the said improvement, the manner of making the same or the character of the material or materials to be used.
*(Acts 1973, No. 826, p. 1293, §5.)*
##### **§ 11-88-45** Publication of Resolution and Mailing of Copies Thereof to Persons Last Assessed for Taxation on Property Which May Be Assessed for Improvement {#sec-11-88-45 omnilex-key=us-al-statutes--title-11--11-88-45}
The said resolution must be published once a week for two consecutive weeks in some newspaper published in each county in which any part of the improvements will be constructed and having general circulation therein. A copy of the said resolution shall also be sent by registered or certified mail, postage prepaid, to the persons last assessed for county taxation on the property which may be assessed for the said improvement at their last known addresses, the said notices to be so mailed not less than 10 days before the meeting of the board provided for in Section 11-88-46. The failure of any official charged with the duty of sending such notice or the failure of any owners of property to receive such notice, if sent by registered or certified mail as provided in this section, shall not invalidate or in anywise affect any assessment made under the provisions of this article.
*(Acts 1973, No. 826, p. 1293, §6.)*
##### **§ 11-88-46** Hearing Upon Objections to Improvement, Etc.; Confirmation, Amendment, Rescission, Etc., of Resolution by Board; When Unanimous Vote of Board Required to Approve Resolution {#sec-11-88-46 omnilex-key=us-al-statutes--title-11--11-88-46}
At the said meeting or at a place and time to which the same may be adjourned, all persons whose property may be affected by the proposed improvement may appear in person or by attorney or by petition and object or protest against the said improvement, the materials to be used or the alternative types of materials or any of them from which selection is later to be made, if any, and the manner of making the same, and the board shall consider such objections and protests and may confirm, amend, modify, or rescind the original resolution.
If objections to the proposed improvement are made by a majority in frontage of the property owners to be affected thereby when the proposed improvement is to be assessed against the property fronting or abutting any street, avenue, or alley or by a majority in area of the property owners when the proposed improvement is to be assessed against the property within a defined area, the improvement shall not take place, unless ordered by a unanimous vote of those elected to the board.
*(Acts 1973, No. 826, p. 1293, §7.)*
##### **§ 11-88-47** Publication of Notice for Bids; Letting of Contract; Requirement of Bonds, Etc., from Bidders, Etc.; Construction of Improvement, Furnishing of Labor, Etc., by Authority {#sec-11-88-47 omnilex-key=us-al-statutes--title-11--11-88-47}
(a) If the board shall finally order the making of the proposed improvement, notice shall be given asking for bids for such work, which notice shall describe in a general way the character and approximate quantities of such work and the types of materials, including alternates, if any, to be employed and shall be published once a week for two consecutive weeks in a newspaper published in each county in which any part of the improvements will be constructed and having general circulation therein. The date for receiving bids as set out in the said notice shall be not earlier than two weeks after the date of first publication thereof.
(b) The board must let the contract to the lowest responsible bidder; provided, that if the lowest responsible bidder has not bid a satisfactory price, the board may reject all bids and readvertise for bids in the same manner as provided in this section.
(c) The board may, by order, impose further conditions upon bidders with regard to bonds and surety for the faithful completion of such work according to contract or for any other purpose mentioned in the specifications. Surety bond for the faithful completion of the said work shall be required where same or any part thereof is let out by contract in an amount not less than 50 percent of the estimated total of each contract.
(d) The authority may elect to construct the improvement or furnish labor or material or both for the same without asking for bids for that part of the improvement. In the event that the authority makes any such election, then the provisions of this section requiring the authority to ask for bids from contractors and to publish a notice with respect thereto shall not be applicable to any work of construction to be performed by the authority or to any labor and material, or either to be furnished by the authority.
*(Acts 1973, No. 826, p. 1293, §9.)*
##### **§ 11-88-48** Supervision of Work {#sec-11-88-48 omnilex-key=us-al-statutes--title-11--11-88-48}
All work done or improvements made under the provisions of this article shall be done under the supervision of the engineer or other superintendent appointed for that purpose by the board; provided, that the engineer or other superintendent so appointed shall not be related by blood or by marriage to any contractor to whom work is awarded under the terms of Section 11-88-47, or, if the said contractor is a corporation, to any stockholder thereof and the said engineer or other superintendent so appointed shall not be interested in or have any share in the proceeds of any construction contract or any contract for the sale of materials to be employed in the said work, nor be a stockholder in the company selling the said materials, nor shall the said engineer or other superintendent so appointed be employed, directly or indirectly, by any parties having an interest in the proceeds of any such construction or sales contract.
*(Acts 1973, No. 826, p. 1293, §10.)*
##### **§ 11-88-49** Acceptance or Rejection of Work {#sec-11-88-49 omnilex-key=us-al-statutes--title-11--11-88-49}
In case of any controversy of dispute, the board shall be invested with sole and exclusive power to determine whether any improvement has been completed in accordance with the terms of the contract therefor and to accept or reject such work on the part of the authority.
*(Acts 1973, No. 826, p. 1293, §11.)*
##### **§ 11-88-50** Payment of Cost of Improvement by Board; Specification of Cost of Improvement {#sec-11-88-50 omnilex-key=us-al-statutes--title-11--11-88-50}
(a) The board may pay out of the general funds of the authority or any special fund that may be provided for the purpose such portion of the cost of the proposed improvement as it may deem proper.
(b) The cost of any improvement shall include the expense of the preliminary and other surveys, the inspection and superintendence of the work, the preparation, publication and mailing of the notices and resolutions required by this article, the cost of construction, the printing of bonds, the interest on money borrowed during construction or on bonds when bonds have been issued in anticipation of the collection of assessments, the preparation of proceedings authorizing the issuance of bonds under the provisions of this article and the rendition of the approving opinions with respect thereto and any other expenses necessary for the completion of such improvement.
*(Acts 1973, No. 826, p. 1293, §8.)*
##### **§ 11-88-51** Levy of Assessments for Cost of Improvement on Abutting or Benefited Property Authorized {#sec-11-88-51 omnilex-key=us-al-statutes--title-11--11-88-51}
If any such improvement be finally ordered and constructed, the board shall have power, after the completion and acceptance thereof, to assess the cost of constructing the said improvement or any part thereof upon or against the property abutting on any street, avenue, alley, highway, or other public place so served or drained or against the property drained, served, or benefited by such improvement to the extent of the increased value of such property by reason of the special benefits derived from such improvement.
An authority shall have the power to assess for the cost of improvements any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes and where any such assessment is made against such lot or lots, parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem or sale thereof by the state shall not operate to discharge or in any manner affect the lien of such authority for such assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to such assessment.
*(Acts 1973, No. 826, p. 1293, §12.)*
##### **§ 11-88-52** Manner of Assessment Generally; Limitation as to Amount of Assessment {#sec-11-88-52 omnilex-key=us-al-statutes--title-11--11-88-52}
The cost of any part of such improvement may be assessed in fair proportion against the frontage of the property drained by the said improvement or against all the lots or parcels of land lying within the area drained, served, or benefited, but the assessment shall not exceed the increased value of such property by reason of the special benefits derived from the improvement.
*(Acts 1973, No. 826, p. 1293, §13.)*
##### **§ 11-88-53** Preparation of List of Property Owners Proposed to Be Assessed for Improvement {#sec-11-88-53 omnilex-key=us-al-statutes--title-11--11-88-53}
When any improvement is completed, the chairman or other chief executive officer of the board shall cause to be prepared a roll or list showing the names of the property owners and opposite each name a description of each lot or parcel of land proposed to be assessed for such improvement belonging to such owner or owners and the amount proposed to be assessed against each lot or parcel of land.
*(Acts 1973, No. 826, p. 1293, §14.)*
##### **§ 11-88-54** Entry of List in Assessment Book of Improvements; Contents and Status Thereof {#sec-11-88-54 omnilex-key=us-al-statutes--title-11--11-88-54}
Such list shall be entered in a well bound book or loose leaf book firmly bound, prepared for that purpose, and shall contain appropriate columns in which payments may be credited and the lien of the assessment satisfied by the proper officers of the authority. The said book shall be known as the “Assessment Book of Improvements” and shall be a public record and no error or mistake in regard to the name of the owner shall be held to invalidate any assessment. It shall be sufficient if the name of the person in whose name such property was last assessed for taxes for state taxation is shown in the said book.
*(Acts 1973, No. 826, p. 1293, §15.)*
##### **§ 11-88-55** Publication of Notice as to Assessment Book {#sec-11-88-55 omnilex-key=us-al-statutes--title-11--11-88-55}
After the completion of the proper entries of each improvement, the said book shall be delivered to the secretary of the authority, who shall thereupon give notice by publication one time in some newspaper published in each county in which any part of the improvements have been constructed and of general circulation therein that the said assessment roll or list has been delivered to him and is open for inspection in the office of the person authorized to make collection of the said assessments, whose title and address shall be listed. The notice shall also state the general character of the improvement, the terminal points thereof, and the streets, avenues, alleys, or other highways, or portions thereof, along which the improvement has been constructed and shall also describe the frontage of the property drained by the said improvement or the territory or area drained, served, or benefited by the said improvement by naming the streets, avenues, alleys, or other highways or other lines by which said area is bounded.
*(Acts 1973, No. 826, p. 1293, §16.)*
##### **§ 11-88-56** Filing of Written Objections or Defenses to Proposed Assessments; Effect of Failure to File Same {#sec-11-88-56 omnilex-key=us-al-statutes--title-11--11-88-56}
The owner or owners of any real estate or any interest therein which it is proposed to assess for the cost or any part thereof of the said improvement may appear at any time on or before the date named in the said notice or at the said meeting and file in writing with the secretary or in the office of the authority any objections or defenses to the proposed assessment against the said property or to the amount thereof and persons who do not file objections or protests in writing against such assessment shall be held to have consented to the same.
*(Acts 1973, No. 826, p. 1293, §19.)*
##### **§ 11-88-57** Hearing of Objections and Defenses to Proposed Assessments by Board Generally {#sec-11-88-57 omnilex-key=us-al-statutes--title-11--11-88-57}
At a time and place mentioned in the said published notice, not less than 20 days from the date of publication, the board shall meet to hear and determine any objections or defenses that may be filed to such assessments or the amount thereof.
*(Acts 1973, No. 826, p. 1293, §18.)*
##### **§ 11-88-58** Subpoena, Etc., of Witnesses by Board {#sec-11-88-58 omnilex-key=us-al-statutes--title-11--11-88-58}
The board, by the secretary or its executive officer, may issue subpoenas for witnesses to appear before the governing body or any committee thereof and may administer oaths to any witness to be examined.
*(Acts 1973, No. 826, p. 1293, §21.)*
##### **§ 11-88-59** Board to Hear and Pass Upon Objections to Proposed Assessments {#sec-11-88-59 omnilex-key=us-al-statutes--title-11--11-88-59}
The board shall hear and pass upon all such objections to and protests against the proposed assessments under such reasonable rules and regulations as it may adopt.
*(Acts 1973, No. 826, p. 1293, §20.)*
##### **§ 11-88-60** Fixing of Amount of Assessment by Board; Assessment to Constitute Lien on Property Against Which Levied; Reduction or Abatement of Final Assessment by Board Generally {#sec-11-88-60 omnilex-key=us-al-statutes--title-11--11-88-60}
At such meeting or any adjournment thereof, the board shall proceed by resolution to fix the amount of the assessment against each lot or tract of land described and included in the said assessment roll, and all such assessments, from the date of such order or resolution, shall be and constitute a lien on the respective lots or parcels of land upon which they are levied superior to all other liens, except those of the state and county for taxes.
The board shall have no power to reduce or abate an assessment made for an improvement after such assessment shall have been made final, unless an appeal shall have been taken from such assessment within the time prescribed by law, except as provided in Section 11-88-62, but this provision shall not affect the power of the board to split an assessment between two or more parties as provided by law.
*(Acts 1973, No. 826, p. 1293, §22.)*
##### **§ 11-88-61** Effect of Defects in Notice or Proceedings; Supplementary Proceedings for Correction of Defects {#sec-11-88-61 omnilex-key=us-al-statutes--title-11--11-88-61}
If there be any defect in the said notice or proceedings before or subsequent to the said notice with respect to one or more interested persons, the same shall not affect such notice or proceedings except insofar as it may touch the interest or property of such person or persons and shall not avail any other person concerned therein. In case of such defect, supplementary proceedings of the same general character as those prescribed in this article may be had in order to supply such defect.
*(Acts 1973, No. 826, p. 1293, §17.)*
##### **§ 11-88-62** Reduction or Abatement of Assessments by Board {#sec-11-88-62 omnilex-key=us-al-statutes--title-11--11-88-62}
The board shall have the power to reduce or abate any assessment made for improvements in cases where such assessment has been levied or attempted to be levied against property owned by the State of Alabama or by a county or owned by any church, hospital, or other charitable organization or in any case where the chief executive officer of the board, after due inquiry, has determined that such assessment has been made erroneously or in excess of the benefits derived by such property or is so great as to constitute an undue burden on such property having in view the value thereof, whether or not such assessment shall have been made final and the time to appeal therefrom expired.
*(Acts 1973, No. 826, p. 1293, §23.)*
##### **§ 11-88-63** Transfer and Assignment of Liens by Authorities {#sec-11-88-63 omnilex-key=us-al-statutes--title-11--11-88-63}
An authority may transfer and assign such liens to the contractor or contractors who made the said improvement or improvements or to any other person.
*(Acts 1973, No. 826, p. 1293, §24.)*
##### **§ 11-88-64** Enforcement of Liens by Circuit Courts; Amounts Recovered in Civil Actions to Enforce Liens {#sec-11-88-64 omnilex-key=us-al-statutes--title-11--11-88-64}
In addition to the method provided in this article for the collection of such assessments, the circuit court may enforce the said liens and, in all civil actions which may be brought to enforce the said liens, either by the authority or by its assigns, the complainant shall recover the amount of such assessment with interest thereon, together with the cost of such proceedings.
*(Acts 1973, No. 826, p. 1293, §25.)*
##### **§ 11-88-65** Enforcement of Lien on Property for State, County, Etc., Taxes Not to Discharge or Affect Lien of Authority for Assessment; Duration of Liens {#sec-11-88-65 omnilex-key=us-al-statutes--title-11--11-88-65}
The enforcement by the state, county, city, or town of its lien for taxes on any lot upon which has been levied an assessment for any improvement shall not operate to discharge or in any manner affect the lien of the authority for the assessment, but any purchaser at any tax sale by the state, county, city, or town of any lots or parcels of land upon which an assessment has been levied shall take them subject to such assessment.
All liens for improvements shall continue until they are paid or extinguished or until the expiration of 20 years from the date of default in payment of the assessment or from the date when there was a due recognition of the indebtedness after default, after which time the enforcement of the lien shall be barred and the indebtedness conclusively presumed to have been paid.
*(Acts 1973, No. 826, p. 1293, §26.)*
##### **§ 11-88-66** Effect of Enforcement of Assessment Lien Upon Other Improvement Assessment Liens on Property {#sec-11-88-66 omnilex-key=us-al-statutes--title-11--11-88-66}
The enforcement by an authority of its lien for an assessment levied for one improvement by the sale of property shall not operate to discharge or in any way affect the lien of any other assessment for a different improvement on the same property, but the purchaser at such sale shall take the property subject to the lien of all other assessments and the right of the authority to enforce the same.
*(Acts 1973, No. 826, p. 1293, §27.)*
##### **§ 11-88-67** Appeal from Assessments to Circuit Court - Authorization and Procedure Generally {#sec-11-88-67 omnilex-key=us-al-statutes--title-11--11-88-67}
Any person aggrieved by the decision in making any assessment may, within 20 days thereafter, appeal to the circuit court, upon executing a bond in double the amount of the probable cost of the appeal.
*(Acts 1973, No. 826, p. 1293, §28.)*
##### **§ 11-88-68** Appeal from Assessments to Circuit Court - Establishment of Amount of Appeal Bond and Approval of Sureties Thereon; Conditions of Bond {#sec-11-88-68 omnilex-key=us-al-statutes--title-11--11-88-68}
The amount of such bond shall be fixed and the sureties thereon shall be approved by the chief executive officer of the board, and the said bond shall be conditioned to prosecute the said appeal to effect and pay the authority any judgment that the circuit court may enter and all damages that any person may suffer by such appeal.
*(Acts 1973, No. 826, p. 1293, §29.)*
##### **§ 11-88-69** Appeal from Assessments to Circuit Court - Entry of Appeal on Trial Docket {#sec-11-88-69 omnilex-key=us-al-statutes--title-11--11-88-69}
The appeal shall be entered on the trial docket in the circuit court and shall be a preferred case therein.
*(Acts 1973, No. 826, p. 1293, §30.)*
##### **§ 11-88-70** Appeal from Assessments to Circuit Court - Transmittal to Circuit Court of Transcript of Proceedings of Authority as to Assessment; Contents Thereof {#sec-11-88-70 omnilex-key=us-al-statutes--title-11--11-88-70}
Upon the filing and the approval of the appeal bond, the secretary of the authority, upon notice thereof, shall immediately send to the clerk of the circuit court to which the appeal may be taken, a transcript of all the proceedings of the authority relating to such assessment, so far as the same concerns the property of the appellant.
Such transcript shall contain a description of the property of such party or parties, which shall be described as accurately as possible according to the map of the county in common use, if there be such map, the name of the owner or owners of such property and the amount of the assessment.
*(Acts 1973, No. 826, p. 1293, §31.)*
##### **§ 11-88-71** Appeal from Assessments to Circuit Court - Transcript Deemed Prima Facie Evidence of Correctness of Assessment, Etc {#sec-11-88-71 omnilex-key=us-al-statutes--title-11--11-88-71}
Upon the hearing of such appeal, the introduction of such transcript and papers shall be prima facie evidence of the correctness of such assessment and that the said property and persons are justly indebted to the authority for the amount of the said assessment.
*(Acts 1973, No. 826, p. 1293, §32.)*
##### **§ 11-88-72** Appeal from Assessments to Circuit Court - Conduct of Trial Generally; When Costs of Appeal and Trial Adjudged Against Authority {#sec-11-88-72 omnilex-key=us-al-statutes--title-11--11-88-72}
The said appeal may be tried on the record without other pleadings and the court shall hear all objections of the property owners to the said assessment and the amount thereof, shall determine whether or not such assessment exceeds the increased value of such property by reason of the special benefits derived from the improvement, and shall render judgment accordingly. Such appeal shall be tried by the judge without a jury, unless a jury trial is demanded at the time of filing appeal, in which event the appeal shall be tried by a jury as provided in common law cases.
In event the court or jury shall not sustain the assessment for the full amount, the costs of appeal and trial in circuit court shall be adjudged against the authority.
*(Acts 1973, No. 826, p. 1293, §33.)*
##### **§ 11-88-73** Appeal from Assessments to Circuit Court - Entry of Judgment for Amount Properly Chargeable Against Land Where Assessment Defective; Payment of Costs {#sec-11-88-73 omnilex-key=us-al-statutes--title-11--11-88-73}
If, on the hearing of such appeal, it shall appear that, by reason of any technical irregularity or defect in the proceedings, the assessment has not been properly made against the lot or parcel of land sought to be charged, the court may, nevertheless, on application of the authority, upon satisfactory proof that expense has been incurred which is a proper charge against the lot or land in question, enter judgment for the amount properly chargeable against the said lot or land.
In such case the court shall make such order for the payment of the costs as it may deem proper.
*(Acts 1973, No. 826, p. 1293, §34.)*
##### **§ 11-88-74** Appeal from Judgment of Circuit Court to Supreme Court - by Property Owner - Authorization and Procedure Generally {#sec-11-88-74 omnilex-key=us-al-statutes--title-11--11-88-74}
An appeal may be taken to the Supreme Court of Alabama by any person interested in the said property from the judgment entered by the said court within 42 days upon giving bond for costs of appeal or, if a stay of execution is desired, upon giving further bond in such sum as the judge of the said court may prescribe, payable to the authority, with sufficient sureties, to be approved by the judge of the said court, conditioned to pay such judgment or perform such judgment as the Supreme Court may render in the premises and all such costs and damages as the authority may have sustained if the judgment is affirmed.
*(Acts 1973, No. 826, p. 1293, §35.)*
##### **§ 11-88-75** Appeal from Judgment of Circuit Court to Supreme Court - by Property Owner - Appeal to Be Heard on Record {#sec-11-88-75 omnilex-key=us-al-statutes--title-11--11-88-75}
Such appeal shall be heard upon the record, which shall set out such of the evidence as may be necessary to a fair presentation of the case.
*(Acts 1973, No. 826, p. 1293, §36.)*
##### **§ 11-88-76** Appeal from Judgment of Circuit Court to Supreme Court - by Property Owner - Addition by Supreme Court of Interest and Damages to Judgment of Circuit Court Upon Affirmance {#sec-11-88-76 omnilex-key=us-al-statutes--title-11--11-88-76}
In the event a supersedeas bond has been given and the said case is affirmed by the Supreme Court, it shall add to the judgment entered by the circuit court interest thereon and 10 percent damages for delay.
*(Acts 1973, No. 826, p. 1293, §37.)*
##### **§ 11-88-77** Appeal from Judgment of Circuit Court to Supreme Court - by Authority {#sec-11-88-77 omnilex-key=us-al-statutes--title-11--11-88-77}
The authority may also appeal from any judgment of the said circuit court, without giving bond. All appeals taken pursuant to this article shall be preferred cases in the Supreme Court.
*(Acts 1973, No. 826, p. 1293, §38.)*
##### **§ 11-88-78** Issuance of Execution on Appeal Bond and Sale of Property Assessed When Final Judgment Entered in Favor of Authority {#sec-11-88-78 omnilex-key=us-al-statutes--title-11--11-88-78}
In the event the final judgment is entered in favor of the authority, execution may be issued thereon against the principal and sureties on the appeal bond, unless the amount of the judgment is paid within 30 days from the date of such judgment, and the court shall, by further order, direct that the property assessed be sold to satisfy such judgment. Nothing contained in this article shall operate to release or discharge the lien on such property, unless the assessment is fully paid.
*(Acts 1973, No. 826, p. 1293, §39.)*
##### **§ 11-88-79** Manner of Payment of Assessments Generally {#sec-11-88-79 omnilex-key=us-al-statutes--title-11--11-88-79}
The authority, in ordering any improvement the cost of which or any part thereof is to be assessed against any property in accordance with the provisions of this article, may provide that the same shall be paid in cash within 30 days after the final assessment; provided, that the cost of such improvement does not exceed $25.00. If the total cost of the said improvement is greater than such sum, any property owner may, at his election, to be expressed by notifying the official of the authority charged with the duty of collecting such assessments in writing within 30 days after the assessment is made final, pay the said assessment in 10 equal installments which shall bear interest at not exceeding eight percent per annum, payable annually; provided, however, that if the assessment against any lot or parcel of land does not exceed $25.00, the said assessment must be paid in cash within 30 days after the assessment is made final as above provided. Any person may pay the whole assessment against any lot or parcel of land within 30 days from the time the assessment is made and may at any installment period pay the assessment in full by paying the full amount of the installments, together with all accrued interest thereon. Should the property owner desire to pay off the deferred installments between the dates on which they are due, he shall pay interest on the same until the succeeding installment period. The first installment shall be payable within 30 days after the assessment is made final and all assessments or installments thereof shall be payable at the office of the secretary or treasurer of the authority, as may be prescribed, and all assessments or installments thereof shall bear interest at not exceeding eight percent per annum after the expiration of 30 days from the date on which the same is made final, which interest shall be due and payable at the time and place the assessment or installment is due and payable. In all cases where the property owner does not elect to pay in installments or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of assessment, he shall be held to have waived the right to pay in installments and the entire assessment shall at the expiration of the said 30 days become due and payable.
*(Acts 1973, No. 826, p. 1293, §40.)*
##### **§ 11-88-80** Entire Assessment Due and Payable Upon Default in Payment of Assessment or Installments Thereof; Advertisement and Sale of Property Assessed for Improvement Generally {#sec-11-88-80 omnilex-key=us-al-statutes--title-11--11-88-80}
If the property owner who has not elected to pay in installments fails to pay his assessment within 30 days or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of the assessment or makes default in the payment of any annual installment or the interest thereon, the whole of such assessment shall immediately become due and payable.
The officer designated by the authority to collect such assessments shall proceed to sell the property against which the assessment is made to the highest bidder for cash, but he shall first give notice by publication once a week for three consecutive weeks in some newspaper published in the county in which the property is located and of general circulation therein of the date and time of such sale and the purpose for which the same is made, together with a description of the property to be sold. If the said officer shall fail to advertise and sell any property on which the said payments or installments are past due, any user of the improvement or any holder of bonds of the series affected by the said failure shall have the right to apply to any court of competent jurisdiction for a writ of mandamus requiring the said official to take such action and the said court shall, on proof, issue and enforce such writ.
*(Acts 1973, No. 826, p. 1293, §41.)*
##### **§ 11-88-81** Defaulting Property Owner May Pay Assessment, Etc., Prior to Sale {#sec-11-88-81 omnilex-key=us-al-statutes--title-11--11-88-81}
Any property owner, notwithstanding his default, may pay the assessment with interest and all costs, if tendered before a sale of the property.
*(Acts 1973, No. 826, p. 1293, §42.)*
##### **§ 11-88-82** Cost of Advertisement and Sale to Constitute Charge Against Property to Be Sold {#sec-11-88-82 omnilex-key=us-al-statutes--title-11--11-88-82}
The cost of such advertisement and sale shall constitute a charge against the property to be sold and shall be retained out of the proceeds of the sale.
*(Acts 1973, No. 826, p. 1293, §43.)*
##### **§ 11-88-83** Officer Making Sale to Execute Deed to Purchaser; Rights, Title, Etc., Conveyed to Purchaser by Deed; Disposition of Surplus Proceeds from Sale; Purchase of Property by Board {#sec-11-88-83 omnilex-key=us-al-statutes--title-11--11-88-83}
The officer making such sale shall execute a deed to the purchaser, which shall convey all the right, title, and interest which the party against whose property the assessment was made had or held in the said property at the date of making such assessment or on the date of making such sale.
Any surplus arising from the said sale shall be paid to the treasurer of the authority to be kept as a separate fund by the treasurer for the owner upon the responsibility of his bond.
The board may, by its agents, purchase real estate sold as provided under this article and, in the event of such purchase, the deed for the same shall be made to the authority.
*(Acts 1973, No. 826, p. 1293, §44.)*
##### **§ 11-88-84** Effect of Mistakes in Advertisement or Sale; Supplementary Proceedings for Correction of Errors; Enforcement of Lien by Purchaser {#sec-11-88-84 omnilex-key=us-al-statutes--title-11--11-88-84}
No mistake in the publication provided for in Section 11-88-80 in the description of the property or in the name of the owner shall vitiate the assessment or the lien and, if, for any reason, the sale made by the authority is ineffectual to pass title, it shall operate as an assignment of the lien and, upon the request of the purchaser, supplementary proceedings of the same general character as required in this article may be had to correct the errors in the said proceedings for his benefit or the lien so assigned to him may be enforced by civil action.
*(Acts 1973, No. 826, p. 1293, §51.)*
##### **§ 11-88-85** Redemption of Property After Sale - Authorization and Procedure Generally {#sec-11-88-85 omnilex-key=us-al-statutes--title-11--11-88-85}
Any real property sold for the satisfaction of an assessment lien imposed thereon by the board may be redeemed by the former owner or his assigns or other person authorized to redeem property sold for taxes by the State of Alabama, within two years from the date of such sale, by paying to the purchaser at such sale or to any person deriving title under such purchaser or to the treasurer of the authority for such purchaser or person deriving title under such purchaser the amount of the purchase price for which the property was sold at such sale plus an amount equal to interest on such purchase price from the date of such sale to the date of redemption at the rate of eight percent per annum plus a fee of $2.00 to cover the expense of a conveyance. If the redemption is made from the authority, the payment may be made upon such terms, including installment payments, as the board may approve.
*(Acts 1973, No. 826, p. 1293, §45.)*
##### **§ 11-88-86** Redemption of Property After Sale - Extension of Redemption Period {#sec-11-88-86 omnilex-key=us-al-statutes--title-11--11-88-86}
The fixed two-year period of redemption allowed by Section 11-88-85 for the redemption of any property sold for the satisfaction of any such lien shall be extended to a date 60 days after the date of certificate of warning to redeem provided for in Section 11-88-87, but in no event for a longer period than six years from the date of such sale.
*(Acts 1973, No. 826, p. 1293, §46.)*
##### **§ 11-88-87** Redemption of Property After Sale - Application for Entry in Record of Deeds of Certificate of Warning to Redeem; Form of Certificate {#sec-11-88-87 omnilex-key=us-al-statutes--title-11--11-88-87}
At any time after an improvement assessment sale deed has been recorded in the office of the probate judge and after expiration of the fixed two-year period of redemption allowed by Section 11-88-85, any person may apply to such probate judge for entry in the record of deeds of a certificate of warning to redeem in substantially the following form: “I hereby certify that on or prior to the date of this certificate I mailed a compared copy of the deed recorded in Deed Book _____ at Page _____, together with notice that the same is there recorded, and a warning to redeem, to each of the one or more persons other than the grantee in said deed, to whom the property therein described was last finally assessed for ad valorem taxation, at the address of each such person as shown by said ad valorem tax assessment records. This _____ day of _____, 2__, Probate Judge.”
*(Acts 1973, No. 826, p. 1293, §47.)*
##### **§ 11-88-88** Redemption of Property After Sale - Applicant to Deliver Copies of Improvement Assessment Sale Deed to Probate Judge; Examination, Etc., of Deeds, Etc., by Probate Judge; Mailing of Copies of Deed and Warning to Redeem to Persons Last Assessed for Ad Valorem Taxation on Property; Entry in Record of Deeds of Certificate of Warning by Probate Judge; Termination of Redemption Rights {#sec-11-88-88 omnilex-key=us-al-statutes--title-11--11-88-88}
At the time of application for entry of such certificate of warning to redeem, the applicant shall deliver to the probate judge three correct copies of the said deed with a notation thereon of the deed book and page where recorded and shall pay to the said probate judge a fee of $1.00. The said copies of the deed need not include any certificate of acknowledgment. It shall thereupon be the duty of the said probate judge to promptly compare the said copies with the record of such deed and, if such copies be found to be correct copies of such record, it shall be the further duty of such probate judge to ascertain from the ad valorem tax assessment records of his county the name of the person or persons other than the grantee in the said deed to whom the property described in the said deed was last finally assessed for ad valorem taxation, together with the address of each such person as shown by the said tax assessment records, and thereupon to promptly mail to each such person at such address one of the foresaid compared copies of said deed, together with an attached warning to redeem in substantially the following form: “Take notice that there is recorded in my office in Deed Book _____ at page _____ a deed of which the attached is a correct copy. You are warned that unless you, or those claiming under you, take prompt steps to redeem from those claiming under the said deed, all rights of redemption may be lost. This _____ day of _____, 2__, Probate Judge, _____ County, Alabama.”
Promptly upon or after mailing such notice or notices and compared copy or copies of deed, it shall be the duty of the said probate judge to enter upon the record of deeds a certificate of warning substantially as prescribed by Section 11-88-87 and to sign such certificate and to date the same evenly with the date of entry. At the expiration of 60 days after the date of such certificate, all rights to redeem from the sale shown by such deed shall cease and determine.
*(Acts 1973, No. 826, p. 1293, §48.)*
##### **§ 11-88-89** Redemption of Property After Sale - Performance of Duties of Probate Judge; Liability of Probate Judge for Errors or Mistakes in Performance of Duties {#sec-11-88-89 omnilex-key=us-al-statutes--title-11--11-88-89}
The duties imposed in this article upon the probate judge may be performed in his name and stead by any person or persons thereunto authorized by him. The faithful performance of such duties may be compelled by mandamus, but the probate judge shall not be liable in damages for an error or mistake in the performance of such duties committed in good faith.
*(Acts 1973, No. 826, p. 1293, §49.)*
##### **§ 11-88-90** Redemption of Property After Sale - Redemption During Extended Redemption Period {#sec-11-88-90 omnilex-key=us-al-statutes--title-11--11-88-90}
Redemption may be effected after expiration of the fixed two-year period of redemption allowed or provided by Section 11-88-85 and before the extended period of redemption has expired in the same manner and at the same redemption price as is provided in the said Section 11-88-85; provided, that if the probate judge has made the certificate of warning to redeem as provided in Section 11-88-88, the said redemption price shall be increased by $1.00; provided further, that if the grantee in the aforesaid deed or any person deriving any title or right under him shall have placed any improvements upon the said property after expiration of the fixed two-year period of redemption allowed or provided by the said Section 11-88-85, then redemption must be effected by civil action and the redemption price shall be increased by the value of such improvements, to be ascertained by the court in such civil action.
*(Acts 1973, No. 826, p. 1293, §50.)*
##### **§ 11-88-91** Execution of Short Term Notes or Issuance of Bonds by Authority Prior to Letting of Contract or During Progress of Work on Improvement Generally {#sec-11-88-91 omnilex-key=us-al-statutes--title-11--11-88-91}
For the purpose of providing funds to pay the cost of any improvement made under the provisions of this article, the cost of which, in whole or in part, is proposed to be assessed against the property drained, served, and benefited by the improvements being provided, the authority may borrow money temporarily, executing its negotiable note therefor, which note may not run longer than a period of one year, or issue bonds. Such temporary note or issue of bonds may be made before the contract is let for the improvements or during the progress of the work, in installments as the work progresses, and the making of one loan or the issue of one series of bonds shall not exhaust the power of the authority to provide sufficient funds for the completion of the improvement. The authority may pledge as security for such loan, whether evidenced by notes or bonds, the proceeds of the assessments made or to be made against the property benefited by the improvement and may transfer and assign for the benefit of the holder of the said note or bond the lien of the authority thereon with power to enforce the same by civil action, but if notes or bonds shall be issued before the completion of the work, they shall not be issued in excess of the cost of the improvement as estimated at the time of the issue of the said notes or bonds. If money is borrowed and notes or bonds issued after the work is completed, such notes or bonds shall not exceed in the aggregate the total cost of the improvement. No irregularity or technical defect in the proceedings relating to the making of the improvement shall in any way affect the power of the authority to borrow money for the completion of the improvement.
*(Acts 1973, No. 826, p. 1293, §52.)*
##### **§ 11-88-92** Issuance of Bonds by Authority After Completion of Work on Improvement {#sec-11-88-92 omnilex-key=us-al-statutes--title-11--11-88-92}
If bonds have not been issued during the progress of the work as authorized by Section 11-88-91, the authority may, after the completion of the work, sell and issue bonds not exceeding an amount sufficient to pay the then outstanding principal of and interest on any temporary loans made pursuant to the provisions of the said Section 11-88-91 to finance all or part of the improvement, plus such portion of the cost of the improvement, computed in accordance with Section 11-88-50, as has not been financed by any such temporary loan then outstanding and unpaid. In determining the amount of bonds so to be issued, the board shall take into consideration, to the extent practicable, the amount which at the time of the authorization of the sale of such bonds has been paid by the property owners toward the cost of the improvement.
*(Acts 1973, No. 826, p. 1293, §53.)*
##### **§ 11-88-93** Consolidation of Improvements for Issuance of Bonds {#sec-11-88-93 omnilex-key=us-al-statutes--title-11--11-88-93}
Any authority desiring to issue bonds under this article shall have power to group improvements under two or more resolutions and make one issue of bonds under this article based on the combined estimated costs or combined assessments in respect of such improvements.
*(Acts 1973, No. 826, p. 1293, §66.)*
##### **§ 11-88-94** Form, Terms, Denominations, Etc., of Notes Issued Under Article; Sale, Exchange, Etc., Generally; Sale Price; Applicability of Certain Other Provisions of Law {#sec-11-88-94 omnilex-key=us-al-statutes--title-11--11-88-94}
Any notes or bonds issued under this article may be secured by a pledge of the assessments made with respect to the improvement being financed. They may be made payable at such place or places within or without the State of Alabama as the board may designate. Any such bonds shall be payable in annual installments beginning one year and ending 10 years from their date, the amount of no annual installment to exceed the amount of any other annual installment by more than $5,000.00. Such bonds may either be sold as provided in Section 11-88-95 or may be delivered at not less than par plus accrued interest to the contractor in payment or part payment for the work of the improvements. The bonds may be issued either in registered or coupon form and, if in coupon form, they may be made registrable either as to principal or as to both principal and interest. All bonds which are sold shall be sold by the board at not less than 95 percent of their par value, together with accrued interest from the date of the bonds to the date upon which they are delivered and paid for; provided, that funding and refunding bonds may be exchanged for outstanding obligations as provided in Section 11-88-95. None of the notes or bonds authorized in this article to be issued to finance improvements shall be subject to the provisions of Chapter 8 of this title.
*(Acts 1973, No. 826, p. 1293, §54.)*
##### **§ 11-88-95** Notice of and Sale or Exchange of Bonds {#sec-11-88-95 omnilex-key=us-al-statutes--title-11--11-88-95}
All bonds issued under this article, except bonds issued to the contractor and except funding and refunding bonds issued by exchange as provided in this section, shall be sold to the highest bidder at public sale; provided, that if at a duly advertised public sale in accordance with this section no legal bid acceptable to the governing body shall be received, then such bonds may be sold within 30 days thereafter at private sale to the United States of America or to the State of Alabama.
The public sale shall be either on sealed bids or at auction. The notice of a public sale shall state whether the sale is to be on sealed bids or at auction and shall also briefly recite the amount of the bonds to be sold, the maturities thereof, the amount payable at each maturity, any redemption or prepayment privileges, the frequency with which interest will be payable, either the rate or rates of interest which the bonds are to bear or that the bidders are invited to name the rate or rates in their bids and the time and place of sale or for submitting sealed bids. Such notice shall be published once in each of two consecutive weeks in a newspaper published in each county in which any part of the improvement is located, the first of such publications to be not less than 10 days before the last date for submitting bids if the sale is at auction. If there is no newspaper meeting the foregoing requirements, the notice shall be posted in three public places in the said county for at least a like period of 10 days. The board shall have the right to reject any or all bids. Nothing contained in this section shall prevent the issuance of bonds under this article to the contractor in accordance with the provisions hereof.
Funding or refunding bonds may be issued in exchange for a like or greater amount of the interest then due or accrued on and the principal of the indebtedness to be funded or refunded thereby, whether such indebtedness has then matured or shall thereafter mature, with the consent of the holders of such indebtedness to be funded or refunded thereby without the publication of notice or other advertisement of such exchange; provided, that if the principal amount of the bonds so proposed to be issued in exchange shall exceed an aggregate of $50,000.00, then no such exchange shall be effected unless the authority shall first have offered such funding or refunding bonds for sale to the highest bidder at public sale advertised in accordance with the provisions of this section and no legal bid acceptable to the board shall have been received therefor at such advertised public sale. In the event no such legal bid acceptable to the board shall have been received at such advertised public sale then such exchange may thereafter be effected without further notice or advertisement. In any such authorized exchange the authority may pay for services rendered in making or securing the making of the exchange, not more than five percent of the face value of the first $10,000.00 aggregate principal amount of the funding or refunding bonds so exchanged, plus two and one-half percent of the face value of the funding or refunding bonds so exchanged in excess of $10,000.00 principal amount. Any amount authorized by this section to be paid by the making of any exchange of bonds shall include the cost of preparing the bonds, all costs of legal work, and all other necessary expenses in connection with the making of the exchange.
*(Acts 1973, No. 826, p. 1293, §55.)*
##### **§ 11-88-96** Determination of Highest Bidder for Bonds {#sec-11-88-96 omnilex-key=us-al-statutes--title-11--11-88-96}
In determining the highest bidder for bonds offered for public sale the lowest net interest cost to the authority as determined by the board shall govern. The determination of the board as to what constitutes such lowest net interest cost shall be final and conclusive.
*(Acts 1973, No. 826, p. 1293, §56.)*
##### **§ 11-88-97** Disposition of Proceeds from Sale of Bonds {#sec-11-88-97 omnilex-key=us-al-statutes--title-11--11-88-97}
The principal proceeds received in the sale of any bonds issued under the authority of this article shall be used for the purposes for which the bonds are issued; provided, however, that if for any reason any part of such proceeds shall not be necessary for such purposes, then such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on the said bonds. All accrued interest and premium received in any such sale shall be applied to the payment of interest or principal on the bonds sold.
*(Acts 1973, No. 826, p. 1293, §57.)*
##### **§ 11-88-98** Bonds Containing Recital as to Issuance Under Article Deemed to Have Been Issued, Sold, Etc., in Conformity with Same; Limitation Period for Actions or Proceedings as to Issuance of Bonds {#sec-11-88-98 omnilex-key=us-al-statutes--title-11--11-88-98}
Any bonds reciting that they are issued pursuant to this article shall in any action or proceeding involving their validity be conclusively deemed to be fully authorized by this article and to have been issued, sold, executed, and delivered in conformity herewith and with all other provisions of statutes applicable thereto and shall be incontestable, anything in this article or in other statutes to the contrary notwithstanding, unless such action or proceeding is begun before or within 30 days after the day upon which the bonds are delivered and paid for.
*(Acts 1973, No. 826, p. 1293, §58.)*
##### **§ 11-88-99** Irregularities in Proceedings Authorizing Issuance of Bonds or Neglect, Etc., of Duties by Officers Not to Affect Validity of Bonds; Bonds to Have Properties and Protection of Commercial Paper {#sec-11-88-99 omnilex-key=us-al-statutes--title-11--11-88-99}
No irregularity in the proceedings to authorize the issue of bonds under this article nor the omission or neglect of any officer charged with the execution of any duties imposed by this article shall affect the validity of any bonds issued under this article. Such bonds shall have all the properties and protection of commercial paper.
*(Acts 1973, No. 826, p. 1293, §60.)*
##### **§ 11-88-100** Exemption from Taxation of Bonds, Notes, Etc {#sec-11-88-100 omnilex-key=us-al-statutes--title-11--11-88-100}
All notes, interest thereon, bonds and interest coupons attached to the same issued under the authority of this article, shall be exempt from state, county, and municipal taxation.
*(Acts 1973, No. 826, p. 1293, §59.)*
##### **§ 11-88-101** Replacement of Lost, Mutilated, or Destroyed Bonds {#sec-11-88-101 omnilex-key=us-al-statutes--title-11--11-88-101}
Whenever it shall be made to appear to the board by clear and satisfactory evidence that any bond issued under this article has been lost, destroyed, or mutilated so that the same is not held by any person as his property, then the authority shall issue a duplicate of such lost, destroyed, or mutilated bond in like amount, bearing like interest and executed and marked in like manner as the bond so proved to have been lost, destroyed, or mutilated. But the owner of such lost, destroyed, or mutilated bond shall first execute a penal bond in double the amount of the bond sought to be replaced, together with the amount of interest which has or might thereafter accrue thereon, with some surety company qualified to do business in the State of Alabama, to be approved by the board and payable to the authority, with condition to indemnify and save harmless such authority from any claim whatsoever because of such lost, destroyed, or mutilated bond. Such penal bond shall be filed and kept with the secretary of the authority, and shall be admissible in evidence in any court.
*(Acts 1973, No. 826, p. 1293, §61.)*
##### **§ 11-88-102** Authorization and Procedure Generally for Settlement, Adjustment, or Refunding of Bonds {#sec-11-88-102 omnilex-key=us-al-statutes--title-11--11-88-102}
The board shall have the power to settle, adjust, and refund any bonds issued under this article, whether such bonds have already become due and payable or are about to become due and payable or are callable according to their terms, when the board deems it to the best interest of the authority to call said bonds and raise funds for the payment thereof by the sale of bonds as authorized in this article; provided, that all sums derived from the payment of assessments and being in the hands of the authority at the time of such refunding shall be first applied to the payment of the outstanding bonds, and refunding bonds shall be issued only in such amount as shall be necessary to raise the difference between the amount required for the payment of the outstanding bonds and the amount held for the payment thereof.
*(Acts 1973, No. 826, p. 1293, §62.)*
##### **§ 11-88-103** Procedure Where Special Fund Used by Authority in Taking Up Bonds or Coupons Representing Principal at Maturity {#sec-11-88-103 omnilex-key=us-al-statutes--title-11--11-88-103}
Where the authority has used any part of any other special fund for the purpose of taking up at maturity bonds or coupons representing a portion of the principal of bonds which had heretofore been issued for improvements and which had fallen due, the provisions of Section 11-88-102 shall be construed to permit either the issuance of refunding bonds to the authority’s treasurer as custodian of such fund or the sale of such bonds for the purpose of replacing in such fund all moneys of such fund so used.
*(Acts 1973, No. 826, p. 1293, §63.)*
##### **§ 11-88-104** Consolidation of Outstanding Bond Issues for Refunding; Disposition of Assessments Collected for Improvements Financed by Said Outstanding Issues Generally {#sec-11-88-104 omnilex-key=us-al-statutes--title-11--11-88-104}
In exercising the powers conferred by Sections 11-88-102 and 11-88-103, it shall not be necessary to make a separate issue of refunding bonds with respect to each outstanding issue, but two or more of such outstanding issues or portions thereof may be grouped together in a single refunding issue, in which event all assessments thereafter collected with respect to any of the improvements financed by the separate issues or the proper proportionate part thereof shall be applicable to the payment of such refunding bonds.
*(Acts 1973, No. 826, p. 1293, §64.)*
##### **§ 11-88-105** Separate Sinking Fund Accounts to Be Maintained for Refunding Bond Issues; Disposition of Same {#sec-11-88-105 omnilex-key=us-al-statutes--title-11--11-88-105}
A separate sinking fund account shall be provided and kept for each refunding bond issue authorized under the provisions of Sections 11-88-102, 11-88-103, and 11-88-104 to which shall be credited all collections made on assessments levied with respect to the improvements financed by the original issues of bonds or the proper proportionate part thereof, and such sinking fund shall be used only for the purpose of paying interest and principal on such bonds in that particular group or series as they mature.
*(Acts 1973, No. 826, p. 1293, §65.)*
##### **§ 11-88-106** Maintenance of Sinking Fund Accounts by Official Charged with Duty of Collecting Assessments; Institution of Mandamus Proceedings Against Officer Failing to Maintain Separate Sinking Fund Accounts, Pay Bonds or Interest Thereon, Etc {#sec-11-88-106 omnilex-key=us-al-statutes--title-11--11-88-106}
The official charged with the duty of collecting assessments shall keep all sinking funds in some bank or banks paying interest on time deposits to be designated by the board, and shall provide and keep a separate sinking fund account for each bond issued.
If the said officer shall fail to provide and keep the said separate sinking fund account for each such bond issue in the said bank or banks or shall divert any of such funds to other uses or shall fail to pay any bond or bonds or the interest thereon properly payable from the said funds when available, any user of the improvements financed thereby or any holder of bonds of the series affected by such diversion or failure shall have the right to apply to any court of competent jurisdiction for a writ of mandamus requiring the said official to take such action and the said court shall on proof issue and enforce the said writ.
*(Acts 1973, No. 826, p. 1293, §67.)*
##### **§ 11-88-107** Bond of Official Charged with Duty of Collecting Assessments; Liability of Said Official and Board Members for Diversion or Misappropriation of Funds for Payment of Bonds and Coupons {#sec-11-88-107 omnilex-key=us-al-statutes--title-11--11-88-107}
The official charged with the duty of collecting assessments shall be required to give bond, including the amount of any official bond which may have been required of him by law, equal to not less than five percent of the total amount in the said sinking funds provided for in Section 11-88-106 and the said bond shall be increased and may be diminished from time to time in order to comply with this provision. The cost of the said increased bond shall be paid by the authority.
The said official shall be liable on his official bond to any holder of the bonds authorized to be issued under this article for any loss or injury to such holder caused by the diversion by the said officer of any fund or part thereof to the payment of any indebtedness of the authority other than the bonds and interest coupons issued under this article and indebtedness authorized by this article to be paid out of the said fund or caused by the use or misappropriation by the said officer of any part of the funds out of which the said bonds and coupons are to be paid for any other purpose than as provided for in this article or for the benefit of the authority or others. All members of the board who shall, by their vote or in any other manner, cause, aid, or encourage any such diversion, use, or misappropriation of the funds out of which the bondholders are entitled to be paid for any other purposes than those authorized and required in this article, whereby loss or injury to the bondholders or any of them is caused, shall be jointly and severally liable to such bondholders injured to the extent of such loss or injury.
Any failure by any of the above officials to keep all funds collected from assessments in sinking funds in the bank or banks as provided in this article or to retire bonds when due out of such funds when available shall be construed as a diversion or misappropriation and any bond holder of a bond in the series affected may at any time institute a civil action against the said official or officials in any court of competent jurisdiction for the satisfaction of such loss and injury.
*(Acts 1973, No. 826, p. 1293, §68.)*
##### **§ 11-88-108** Redemption of Bonds {#sec-11-88-108 omnilex-key=us-al-statutes--title-11--11-88-108}
At a time when the amount of any particular fund shall, with its accumulations, equal the amount of any one of the outstanding bonds and accrued interest entitled to payment out of such fund, the board shall have authority to redeem any and all such bonds that may be presented for redemption at such times thereafter as the holders thereof may desire to present the same for redemption.
*(Acts 1973, No. 826, p. 1293, §69.)*
##### **§ 11-88-109** Refunding of Excess Amounts Collected from Assessments Upon Demand Therefor; Limitation Period for Claims for Refunds; Disposition of Unclaimed Amounts {#sec-11-88-109 omnilex-key=us-al-statutes--title-11--11-88-109}
In the event the amounts collected from the assessments under any improvement resolution shall exceed the total cost and expense of the improvement, there shall be refunded to each of the parties affected by the said assessments a proportionate amount of the excess, upon demand made therefor by the said parties within 12 months after maturity or payment of the bonds authorized with respect to that improvement.
If such claims be not presented within 12 months from the date of the maturity or payment of the said bonds, they shall be forever barred, and such amount shall be converted to the general fund of the authority.
*(Acts 1973, No. 826, p. 1293, §70.)*
##### **§ 11-88-110** Acquisition of Lands by Authority {#sec-11-88-110 omnilex-key=us-al-statutes--title-11--11-88-110}
Whenever in the judgment of the board it may be necessary or expedient for the carrying out and full exercise of the powers granted by this article, an authority may acquire by purchase or condemnation the necessary lands or rights or easements or interests therein, thereunder, and thereover, and may proceed to condemn the same in the manner provided in Subtitle 1 of this title or by the general laws of this state governing the taking of lands or the acquiring of an interest therein for the uses for which private property may be taken, in which case such proceedings shall be governed in every respect by the general laws of the state pertaining thereto.
*(Acts 1973, No. 826, p. 1293, §71.)*
##### **§ 11-88-111** Effect of Annexation or Incorporation of Area in Which Assessments for Improvement Made Upon Assessments, Liens, Bonds, Etc {#sec-11-88-111 omnilex-key=us-al-statutes--title-11--11-88-111}
The subsequent annexation to a municipality or incorporation as a new municipality of any area with respect to which assessments have been made for an improvement pursuant to this article shall not change, alter, or invalidate in any manner any of the proceedings taken, assessments made, liens established, or notes or bonds issued under this article.
*(Acts 1973, No. 826, p. 1293, §72.)*
#### **Article 3** City Takeover of Authority’s Water System
##### **§ 11-88-130** City Prohibited from Charging Excessive Rates to County Customers; Treatment of County Customers {#sec-11-88-130 omnilex-key=us-al-statutes--title-11--11-88-130}
With respect to all customers located within the geographic area in which a water and fire protection authority (“authority”) is authorized by its certificate of incorporation to render water and fire protection service (said customers hereinafter called “county customers”), the board of water and sewer commissioners of a city (“commissioners”) is hereby prohibited from charging said county customers for water service or sanitary sewer service or both, and for the connection fee or fees for such service or services, at a rate or rates or by manner of calculation which exceeds the rate or rates or manner of calculation for the same service or services or connection fees charged by the commissioners to customers located within the city limits, and in all respects in addition to the aforesaid the commissioners shall treat said county customers as if they lived within the city limits.
*(Acts 1989, No. 89-790, p. 1578, §1.)*
##### **§ 11-88-131** Acquisition, Etc., of Water System of Water and Fire Protection Authority by City Board of Water and Sewer Commissioners - Inclusion of Governing Board of the Authority in Governing Board of Commissioners {#sec-11-88-131 omnilex-key=us-al-statutes--title-11--11-88-131}
In the event that the board of water and sewer commissioners of any city (“commissioners”) should acquire, operate, or control by virtue of assignment, conveyance, court order, operation of law, or otherwise the water system of a water and fire protection authority (“authority”), then the membership of the governing board of the commissioners shall thereupon be increased to include the members of the governing board of the authority notwithstanding any limitation or condition previously imposed by Section 11-50-342.
*(Acts 1989, No. 89-790, p. 1578, §2.)*
##### **§ 11-88-132** Acquisition, Etc., of Water System of Water and Fire Protection Authority by City Board of Water and Sewer Commissioners - Conveyance of Funds in Trust for Authority’s Fire Protection System; Governing Board of Authority as Trustees; Trustees’ Powers and Liabilities {#sec-11-88-132 omnilex-key=us-al-statutes--title-11--11-88-132}
(a) In the event that the board of water and sewer commissioners of any city (“commissioners”) should acquire, operate, or control by virtue of assignment, conveyance, court order, operation of law, or otherwise the water system of a water and fire protection authority (“authority”), then the commissioners shall thereupon convey to the authority the principal sum of $2,000,000 in irrevocable trust for the support and maintenance of the authority’s fire protection system.
(b) The trustees of the trust so established shall be the members of the governing board of the authority, as it may be comprised from time to time, who shall have all powers necessary to effect the support and maintenance of the authority’s fire protection system, including, but not limited to, the following powers:
(1) To adopt, alter, and repeal bylaws, regulations, and rules for the regulation and conduct of its affairs and business;
(2) To make, enter into, and execute contracts, agreements, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the trust was created or to exercise any power expressly or impliedly needed for the accomplishment of such purpose;
(3) To appoint, employ, and contract with such employees, agents, advisors, and consultants, including, but not limited to, attorneys, accountants, financial experts, and such other advisors, consultants, and agents as may in its judgment be necessary or desirable, and to fix their compensation;
(4) To borrow money for expenses or for any other purpose of the trust, and to pledge, mortgage, or otherwise encumber any property of the trust as security for any loans or bond issues of the authority;
(5) To deduct, retain, expend, and pay out of money belonging to the trust, any and all necessary and proper expenses in connection with the operation and conduct of the trust, and to pay all taxes, insurance premiums, and other legal assessments, debts, claims, or charges which at any time may be due and owing by, or which may exist against, the trust;
(6) To invest or reinvest the trust property in the following eligible investments:
a. Demand deposits (interest bearing) in federally insured banks and interest bearing deposits (whether or not evidenced by certificates of deposit) in federally insured banks; provided, however, that said deposits plus interest shall be fully secured by obligations described in paragraphs b. and c. hereinbelow, to the extent that said deposits plus interest exceed insurance available from the Federal Deposit Insurance Corporation or from any agency of the United States of America that may succeed to the functions of the Federal Deposit Insurance Corporation;
b. Bonds, notes, and other evidences of indebtedness that are direct obligations of the United States of America or that are unconditionally guaranteed as to both principal and interest by the United States of America;
c. Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any federal agencies or government-sponsored enterprises authorized to issue their own debt instruments, including, without limitations to the following: Federal Farm Credit Bank, Federal Intermediate Credit Banks, the Export-Import Bank of the United States, Federal Land Banks, the Federal National Mortgage Association, the Tennessee Valley Authority, the Governmental National Mortgage Association, the Federal Financing Bank, Federal Banks for Cooperatives, Federal Home Loan Banks, Federal Home and Loan Mortgage Association, or the Farmers Home Administration;
d. Repurchase agreements with federally insured banks or with government bond dealers reporting to and trading with the Federal Reserve Bank of New York, provided that such repurchase agreements are secured by obligations described in paragraphs b. and c. hereinabove;
e. Interest bearing time deposits (whether or not evidenced by certificates of deposit) in savings and loan associations (i) the deposits of which are insured to the maximum extent possible by the Federal Savings and Loan Insurance Corporation or any agency of the United States of America that may succeed to its functions and (ii) the principal office of which is located in the state; provided, however, that said deposits plus interest shall be secured by obligations described in paragraphs b. and c. hereinabove, to the extent that said deposits plus interest exceed insurance available from the Federal Savings and Loan Insurance Corporation or from any agency of the United States of America that may succeed to the functions of the Federal Savings and Loan Insurance Corporation; and
f. Any and all investments authorized under Section 19-3-120.
(7) To apply the net income of the trust property, or such additional sum or sums from or out of the principal of such trust, to expenses for the support and maintenance of the authority’s fire protection system as the trustees in their discretion shall deem necessary or appropriate for such purposes.
(8) To do all of the things hereinabove set out and to exercise any other powers and authorities which such trustees generally have, without first obtaining any order of court therefor.
(c) An individual trustee shall not in any way be personally liable for any liability, loss, or expense suffered by the trust fund unless such liability, loss, or expense arises out of or results from the willful misconduct or wrongdoing of such trustee.
*(Acts 1989, No. 89-790, p. 1578, §3.)*
##### **§ 11-88-133** Acquisition, Etc., of Water System of Water and Fire Protection Authority by City Board of Water and Sewer Commissioners - Deposit of Funds in Escrow Account for Construction of Water Service Improvements; Escrow Agent; Funding and Utilization of Account; Time Frame; Written Plan {#sec-11-88-133 omnilex-key=us-al-statutes--title-11--11-88-133}
In the event that the board of water and sewer commissioners of any city (“commissioners”) should acquire, operate, or control by virtue of assignment, conveyance, court order, operation of law, or otherwise the water system of a water and fire protection authority (“authority”), then the commissioners shall deposit, in the manner set forth below, the aggregate sum of $8,000,000 into an escrow account to be used for the purpose of constructing improvements which shall supply water service throughout the authority’s territory in those areas which do not otherwise have such service. The escrow agent shall be any national banking association with offices located in the city which shall be selected by mutual agreement of the commissioners and the authority. The escrow account shall be funded and utilized as follows: Within six months from the date that the commissioners shall first acquire, operate, or control the authority’s water system, the commissioners shall deposit the sum of $2,000,000 into said escrow account. On the same calendar day of such deposit for each of the next succeeding three years thereafter, the commissioners shall deposit the sum of $2,000,000 into said account making the aggregate amount of all deposits into said account $8,000,000. Within the one-year period after each said deposit, the commissioners shall be required to construct improvements for the expansion of water service in areas within the authority’s territory which are designated by the governing board of the authority, and as much of the $2,000,000 deposit as may be reasonably practicable shall be used for such construction, and for no other purpose, during each said one-year period. The governing board of the authority shall deliver to the escrow agent and the commissioners at the commencement of each said one-year period a written plan designating the areas within the authority’s territory where the improvements shall be constructed during that year. The escrow agent shall be authorized to release funds from the escrow account to the commissioners from time to time during the course of each such year only upon submission by the commissioners to the escrow agent of one or more sworn statements defining the areas where the water service improvements will be constructed and certifying that such areas are included in those designated on the written plan submitted by the authority and that the released funds will be expended within 20 days of release in remittance of the costs of construction of such improvements. The escrow agent shall be entitled to a reasonable fee for its services but not to exceed in the aggregate one-half of one percent of the total amount deposited in said account during the entire period of its existence.
*(Acts 1989, No. 89-790, p. 1578, §4.)*
##### **§ 11-88-134** Acquisition, Etc., of Water System of Water and Fire Protection Authority by City Board of Water and Sewer Commissioners - Sanitary Sewer Service System Plan; Time Frame {#sec-11-88-134 omnilex-key=us-al-statutes--title-11--11-88-134}
In the event that the board of water and sewer commissioners of any city (“commissioners”) should acquire, operate, or control by virtue of assignment, conveyance, court order, operation of law, or otherwise the water system of a water and fire protection authority (“authority”), then the commissioners shall conduct a study and adopt a plan within one year from the date that the commissioners shall first acquire, operate, or control the authority’s water system providing for the construction of a sanitary sewer service system throughout the authority’s territory. The said plan shall be implemented and the improvements contemplated thereby constructed by the commissioners within five years from the date that the commissioners receive all necessary approvals (whether regulatory or judicial) and permits for the implementation and construction of an outfall line or any alternative sewer treatment or discharge facility capable of servicing the authority’s territory.
*(Acts 1989, No. 89-790, p. 1578, §5.)*
##### **§ 11-88-135** Applicability of Article; Vote of Consent; Notice and Hearing {#sec-11-88-135 omnilex-key=us-al-statutes--title-11--11-88-135}
The provisions of this article shall not apply in the event the water system that is to be acquired, operated, or controlled consents to said acquisition, operation, or control by a unanimous vote of the governing board of the water and fire protection authority.
Said vote shall not be taken until notification of such a vote has been published by the governing board of the water and fire protection authority in a newspaper of general circulation in the area served by the water system for four weeks and a public hearing regarding said vote is held at the end of said publication period.
*(Acts 1989, No. 89-790, p. 1578, §6.)*
#### **Article 4** Private Sewer Laterals, Use of Public Money to Replace or Repair
##### **§ 11-88-150** Use of Public Funds to Repair or Replace Private Sewer Laterals {#sec-11-88-150 omnilex-key=us-al-statutes--title-11--11-88-150}
(a) The Legislature finds and declares all of the following:
(1) The degrading condition of private sewer laterals in many locations throughout the state has led to a rise in groundwater and stormwater intrusion into municipal sewer systems, resulting in overflow of sewage collection and treatment facilities and damage to both public and private property.
(2) Overflow of raw sewage into yards, rights-of-way, drainage ditches, streams, creeks, and rivers is a direct threat to the environment, from microscopic organisms to large animals and even to humans – especially children that like and need to play outdoors, often in those same areas vulnerable to overflow.
(3) The cost involved in repair or replacement of a sewer lateral is often unattainable by private individuals.
(4) Although the lack of repairs of private sewer laterals may be a result of neglect or insufficient funds on the part of private individuals, the effects of degradation of private sewer laterals as described above constitute a serious threat to public health.
(5) Use of public funds to remedy or combat public health issues is a primary role of government.
(6) The use of public funds to repair private sewer laterals, for the reasons described in this section, is a public purpose as that term has been defined by the Supreme Court of Alabama in Slawson v. Alabama Forestry Commission, 631 So.2d 953 (Ala. 1994), and related caselaw and opinions of the Supreme Court of Alabama; and use of public funds for this public purpose shall not be considered to be a lending of credit or a granting of public money or thing of value to or in aid of any private individual, association, company, partnership, or corporation, within the meaning of any state constitutional or statutory provision.
(b) For purposes of this section, “private sewer lateral” means a sewer line on private property that connects to a public sewer system, and does not include any portion of a sewer line within the foundation of a building.
(c)(1) Upon receipt of a written request from the owner of a property that has a private sewer lateral that is contributing to a serious threat to public health as described in this section and which the owner certifies that he or she is not financially able to repair or replace, a county, municipality, or district or authority incorporated under this title may use public funds to repair or replace the private sewer lateral upon adoption of a resolution detailing that the repair or replacement constitutes a public purpose, and shall recover the actual cost of repair or replacement by prorating the cost of repair or replacement on the utility bill of the owner of the private sewer lateral. Terms of the recovery of cost shall be detailed in the resolution and shall be as mutually agreed by both parties.
(2) A county, municipality, district, or authority shall not be obligated to replace a private sewer lateral.
(3) A county, municipality, district, or authority using public funds to repair or replace a private sewer lateral pursuant to subdivision (1) shall restore the property to the condition of the property as it existed prior to the repair or replacement.
(d) A county, municipality, district, or authority performing a repair or replacement of a private sewer lateral under subsection (c) shall not be deemed to be the owner of the private sewer lateral, nor shall the county, municipality, district, or authority be obligated to perform any other duties unless the county, municipality, district, or authority adopts a resolution accepting those duties.
*(Act 2021-347, §§1,2.)*
### **Chapter 89** Water, Sewer, Solid Waste Disposal and Fire Protection Districts
#### **Article 1** General Provisions
##### **§ 11-89-1** Definitions {#sec-11-89-1 omnilex-key=us-al-statutes--title-11--11-89-1}
When used in this chapter, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) APPLICANT. A natural person who files a written application with the governing body of any county or municipality or public corporation or cooperative in accordance with the provisions of Section 11-89-3.
(2) AUTHORIZING RESOLUTION. A resolution, adopted by a governing body in accordance with the provisions of Section 11-89-3, that authorizes the incorporation of a district.
(3) AUTHORIZING SUBDIVISION. Any county or municipality or public corporation or cooperative the governing body of which shall have adopted an authorizing resolution.
(4) BOARD. The board of directors of a district.
(5) BONDS. Bonds, notes and certificates representing an obligation to pay money.
(6) CONCISE LEGAL DESCRIPTION. A reasonably concise description of a particular geographic area which may be by metes and bounds or by reference to government surveys, recorded maps and plats, municipal, county or state boundary lines, well-defined landmarks and other monuments, or any combination of the foregoing.
(7) COOPERATIVE. Any corporation organized under Article 9 (commencing with Section 10-4-190) of Chapter 4 of Title 10, or any successor thereto, to render water service or sewer service.
(8) COUNTY. Any county in the state.
(9) DIRECTOR. A member of the board of directors of the district.
(10) DISTRICT. A public corporation organized pursuant to the provisions of this chapter.
(11) FIRE PROTECTION FACILITY. Land, plants, systems, facilities, buildings, fire engines, fire hydrants, ladders, equipment, hoses, alarm apparatus, chemicals, uniforms, supplies or any combination of any thereof used or useful or capable of future use in furnishing fire protection service and all other property deemed necessary or desirable by the district for use in furnishing fire protection service.
(12) FIRE PROTECTION SERVICE. All services involved in protecting property and life from fires, including, but not limited to, discovering, ascertaining, extinguishing, preventing the spread of or fighting fires or inspecting property for fire hazards or any part or combination thereof. The supplying of water for use in the rendition of fire protection service shall be deemed to constitute fire protection service.
(13) GOVERNING BODY. With respect to a county, its county commission, and, with respect to a municipality, its city or town council, board of commissioners or other like governing body and, with respect to a public corporation or a cooperative, its board of directors.
(14) INCORPORATORS. The persons forming a public corporation organized pursuant to the provisions of this chapter.
(15) MUNICIPALITY. An incorporated city or town of the state.
(16) NEW TERRITORY. Any territory added, by amendment to the certificate of incorporation of a district, to the area or areas in which that district is authorized to render water service, fire protection service, sewer service or any thereof.
(17) PERSON. Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation, a municipality, a county, a cooperative, or an agency, department or instrumentality of the state or of a county or municipality or cooperative.
(18) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws and the minutes of proceedings of the board of a district are kept.
(19) PROPERTY. Real and personal property and interests therein.
(20) PUBLIC CORPORATION. Any public corporation organized under the laws of the state.
(21) PUBLIC FIRE PROTECTION FACILITY. A fire protection facility which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(22) PUBLIC SEWER SYSTEM. A sewer system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, a cooperative, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(23) PUBLIC WATER SYSTEM. A water system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, a cooperative, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest.
(24) SERVICE AREA. The geographic area or areas in which a district is authorized by its certificate of incorporation or any amendment thereto to render water service, fire protection service, sewer service or any thereof, which area may include both territory located outside the boundaries of any municipality and territory located within the boundaries of one or more municipalities.
(25) SEWER SERVICE. All services involved in collecting, transporting, treating and disposing of sanitary sewage or solid wastes and the performing of all functions and activities reasonably incident to the operation of a sewer system.
(26) SEWER SYSTEM. A sanitary sewer system, including mains, laterals, sewage disposal plants and sewage treatment plants and all appurtenances to such a system and all properties, rights, easements and franchises deemed necessary or desirable by the district for use in rendering sewer services. “Sewer system” shall also mean and include land, sanitary landfills, systems, facilities, buildings, trucks, compactors, automobiles, motor vehicles, equipment, incinerators, compost plants, chemicals, uniforms, supplies, offices and office equipment, and any combination of any thereof, and such other real or personal property, rights, easements and franchises as may be deemed necessary or desirable by the district for the collection, transportation, treatment, storage or disposal of solid wastes.
(27) SOLID WASTES. All solid wastes and hazardous wastes as the same are defined in Article 1 of Chapter 27 of Title 22.
(28) STATE. The State of Alabama.
(29) SUPPLY DISTRICT. A district which renders sewer service or water service only to one or more counties, municipalities, or other public corporations, a cooperative, or to one or more customers of a county, municipality, public corporation, or a cooperative at its written request.
(30) WATER SERVICE. The providing, furnishing, supplying or distributing of water and the performing of all of the functions and activities reasonably incident to the operation of a water system.
(31) WATER SYSTEMS. Land, plants, systems, facilities, buildings and other property or any combination of any thereof which are used or useful or capable of future use in providing, furnishing, supplying or distributing water, including, but not limited to, water supply systems, water distribution systems, reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, tanks, filtration plants, purification plants, meters, valves and all necessary appurtenances and equipment and all properties, rights, easements and franchises deemed necessary or desirable by the district for use in rendering water service.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §1; Acts 1975, 4th Ex. Sess., No. 104, p. 2785, §1; Acts 1976, No. 540, p. 714; Acts 1989, No. 89-745, p. 1494, §1; Acts 1997, No. 97-668, p. 1289, §1.)*
##### **§ 11-89-2** Purpose of Chapter {#sec-11-89-2 omnilex-key=us-al-statutes--title-11--11-89-2}
This chapter is intended to aid the state in the execution of its duties by providing appropriate and independent instrumentalities of the state with full and adequate powers to fulfill their functions.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §16.)*
##### **§ 11-89-3** Filing of Application for Incorporation of District; Adoption of Resolutions Approving or Denying Application, Etc., by Governing Bodies {#sec-11-89-3 omnilex-key=us-al-statutes--title-11--11-89-3}
(a) In order to incorporate a district under this chapter, any number of natural persons, not less than three, shall first file an identical written application with the governing body of each county and municipality located in whole or in part within the boundaries of the area or areas to be served by the proposed district, or, if the district is to be a supply district, with the governing body of each county, municipality, and public corporation to be served by the proposed district. Such application shall contain:
(1) A statement that the district proposes to render water service, sewer service, and fire protection service or any one or more thereof;
(2)(i) A concise legal description of the area or areas in which the district proposes to render water service, sewer service, and fire protection service or any thereof, a designation of the type or types of service proposed to be rendered in such area or in each of such areas and the name of each county and municipality located in whole or in part within the boundaries of such area or areas, or, (ii) if the district is to be a supply district, the name of each county, municipality, and public corporation proposed to be served;
(3) A proposed total number of directors, which shall be at least equal to the total number of counties and municipalities and public corporations with the governing bodies of which such application is filed, but in no event less than three, and proposed provisions for the election of each director by one of such governing bodies and for the election of at least one director by each of said governing bodies; and, if the district will be a supply district, any proposal to give the directors proportional voting power based upon the quantity of water to be taken or paid for by the entities which will elect the directors, the percentage of indebtedness of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors;
(4) The proposed location of the principal office of the district, which shall be within a county with the governing body of which such application is filed or within a county which is served in whole or in part by a public corporation with the governing body of which such application is filed;
(5) A statement that each of the applicants is a duly qualified elector of the county or one of the counties with the governing bodies of which such application is filed or a county which is served in whole or in part by a public corporation with the governing body of which such application is filed; and
(6) A request that each of such governing bodies adopt a resolution declaring that it is wise, expedient, and necessary that the proposed district be formed and authorizing the applicants to proceed to form the proposed district by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-89-4.
Such application may also state a proposed plan for apportioning the properties of the district upon its dissolution among the public entities with the governing bodies of which such application is filed. Any proposed service area described in any such application shall lie wholly within the boundaries of the county or counties with the governing bodies of which the application is filed and no part of any proposed described service area shall lie within the boundaries of any municipality with the governing body of which the application is not filed. Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate.
(b) As promptly as may be practicable after the filing of the application in accordance with the provisions of subsection (a) of this section, each governing body with which the application was filed shall review the contents of the application, and shall adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary that the proposed district be formed and authorizing the applicants to proceed to form the proposed district by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-89-4. Each governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §3; Acts 1989, No. 89-745, p. 1494, §2.)*
##### **§ 11-89-4** Filing of Certificate of Incorporation, Copies of Resolutions of Governing Bodies, Etc., with Probate Judge; Contents and Execution of Certificate of Incorporation; Notification of Secretary of State of Recordation of Certificate of Incorporation by Probate Judge {#sec-11-89-4 omnilex-key=us-al-statutes--title-11--11-89-4}
(a) Within 40 days following the adoption of an authorizing resolution or, in the event an application was filed with more than one governing body within 40 days following the adoption of an authorizing resolution by that governing body that was the last to adopt an authorizing resolution, but if and only if each other governing body with whom such application was filed has theretofore adopted an authorizing resolution, the applicants shall proceed to incorporate a district by filing for record in the office of the judge of probate of the county in which the principal office of the district is to be located, as specified in the certificate of incorporation provided for in this section, a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner provided in this section; provided, that any district incorporated prior to November 14, 1975, and which, according to the provisions of its certificate of incorporation, is authorized to render sewer service and own and operate a sewer system, shall be authorized to own and operate a solid waste collection and disposal system in the service area in which it is authorized to render sewer service and own and operate a sewer system, without any further action or authorization and without amending its certificate of incorporation, and without changing its name to indicate the additional service it is authorized to render.
(b) The certificate of incorporation of the district shall state:
(1) The names of the persons forming the district and that each of them is a duly qualified elector of an authorizing subdivision or of a county which is served in whole or in part by an authorizing subdivision;
(2) The period for the duration of the district (if the duration is to be perpetual, subject to the provisions of Section 11-89-17, that fact shall be stated);
(3) The name of each authorizing subdivision, together with the date on which the governing body thereof adopted an authorizing resolution;
(4) The location of the principal office of the district, which shall be the same as that stated in the applications required by Section 11-89-3;
(5)(i) A concise legal description of the area or areas in which the district proposes to render water service, sewer service, and fire protection service or any thereof and a designation of the type or types of service proposed to be rendered in such area or in each of such areas, or, (ii) if the district is to be a supply district, the name of each county, municipality, and public corporation proposed to be served;
(6) The total number of directors and the number of directors which the governing body of each authorizing subdivision shall be entitled to elect; and, if the district will be a supply district, any provision to give the directors proportional voting power based upon the quantity of water to be taken or paid for by the entities which will elect the directors, the percentage of indebtedness of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors;
(7) A plan for apportioning the properties of the district upon its dissolution among the authorizing subdivisions, but only if such plan was stated in the application filed with the governing bodies of the authorizing subdivisions in accordance with the provisions of Section 11-89-3;
(8) A statement that the application filed with the governing body of each of the authorizing subdivisions in accordance with Section 11-89-3 was identical to the copy thereof attached to said certificate of incorporation; and
(9) Any other matters relating to the district that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) To the extent that any matter required by the provisions of subsection (b) of this section to be included in the certificate of incorporation of a district is also required or permitted to be included in the application theretofore filed with the authorizing subdivisions in accordance with the provisions of Section 11-89-3, including, but without limitation to, any matter relating to the type or types of service proposed to be rendered by the district, any service area, the number and method of electing directors, the location of the principal office of the district and apportioning the properties of the district upon its dissolution, the provisions of the certificate of incorporation with respect to such matter shall be in strict accordance with the corresponding provisions of such application.
(d) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it a copy of the application as filed with the governing body of each of the authorizing subdivisions in accordance with the provisions of Section 11-89-3, a certified copy of the authorizing resolution adopted by the governing body of each authorizing subdivision and a certificate by the Secretary of State that the name proposed for the district is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. Upon the filing for record of the said certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the district shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the district has been filed for record.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §4; Acts 1975, 4th Ex. Sess., No. 104, p. 2785, §1; Acts 1976, No. 540, p. 714; Acts 1979, No. 79-818, p. 1520; Acts 1989, No. 89-745, p. 1494, §3.)*
##### **§ 11-89-5** Authorization and Procedure for Amendment of Certificate of Incorporation {#sec-11-89-5 omnilex-key=us-al-statutes--title-11--11-89-5}
(a) The certificate of incorporation of any district incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section.
(b)(1) The board of directors of the district shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include:
a. A change in the name of the district;
b. The addition to the service area of the district of new territory lying within any municipality or, in the case of territory not lying within any municipality, any county in which the district’s then existing service area lies;
c. Provisions for the operation of a system or facility the operation of which is not then provided for in the certificate of incorporation of the district and which the district is authorized by this chapter to operate;
d. Any matters which might have been included in the original certificate of incorporation;
e. Provisions for the addition to the service area of the district of new territory not lying within any municipality or, in the case of territory not lying within any municipality, any county in which the district’s then existing service area lies, together with the related provisions referred to in paragraphs a, b, and c of subdivision (2) of this subsection; and
f. In the case of a supply district which proposes to cease being only a supply district, the creation of a service area for the district.
(2) If any proposed amendment would add any new territory to the service area of a district, or create a service area, such proposed amendment shall include a concise legal description of the proposed new territory or proposed service area and a designation of the type or types of service proposed to be rendered therein. If any proposed amendment would add to the service area of the district new territory or create a service area any part of which does not lie within any municipality or, in the case of territory or service area not lying within any municipality, any part of which does not lie within any county in which any then existing service area lies, such proposed amendment shall include, in addition:
a. Provisions for election of at least one director by the governing body of each county and municipality in which any part of the proposed new territory or the proposed service area lies;
b. Provisions for any change in the total number of directors that the board deems appropriate; and, if the district is a supply district, any provision to give the directors proportional voting power based upon the quantity of water to be taken or paid for by the entities which will elect the directors, the percentage of indebtedness of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors; provided, however, that the total number of directors shall be at least equal to the number of directors immediately before the amendment, plus the number added pursuant to paragraph a of this subdivision (2); and
c. Any provision that the board deems appropriate for apportioning of the properties of the district upon its dissolution among its customers, if it is a supply district, or among the counties and municipalities in which its service area will lie upon the filing for record of said proposed amendment.
(3) If the proposed amendment makes provision for the operation of a system or facility not then provided for in the certificate of incorporation of the district, such proposed amendment shall also include, in addition to a concise legal description of the area or areas in which the district proposes to render service from such system or facility provision for an appropriate change in the name of the district.
(4) It shall not be necessary for a supply district to amend its certificate of incorporation merely to add one or more additional municipalities, counties, or public corporations as customers.
(c) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the district, the chairman of the board or other chief executive officer of the district and the secretary of the district shall sign and file a written application in the name of and on behalf of the district, under its seal, with the governing body of each authorizing subdivision and each additional county and municipality in which any part of the district’s then existing service area lies and with the governing body of each county and municipality in which any part of the proposed new territory or the proposed service area lies. Such application shall request each governing body with which the application is filed to adopt a resolution approving the proposed amendment and shall be accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman or other chief executive officer may consider appropriate.
(d) As promptly as may be practicable after the filing of the said application with any governing body pursuant to the provisions of subsection (c) of this section, that governing body shall review the said application and shall adopt a resolution either denying the said application or authorizing the proposed amendment. Each governing body with which the application is filed shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon the said application is taken.
(e) Within 40 days following the adoption by the governing body with which the said application shall have been filed of a resolution approving the proposed amendment or, in the event said application was filed with the governing bodies of more than one county or public corporation or municipality, within 40 days following the adoption of such a resolution by that governing body that was the last to adopt such a resolution, but if and only if the governing body of each other county, public corporation, and municipality with whom such application was filed has theretofore adopted such a resolution, the chairman of the board or other chief executive officer of the district and the secretary of the district shall sign and file for record in the office of the judge of probate of the county where the certificate of incorporation of the district was filed a certificate in the name of and in behalf of the district, under its seal, reciting the adoption of said respective resolutions by the board and by each of the said governing bodies and setting forth the said proposed amendment. If the proposed amendment provides for a change in the name of the district, there shall be filed, together with the certificate required by the immediately preceding sentence, a certificate of the Secretary of State showing that the proposed new name of the district is not identical to that of any other corporation then in existence and organized under the laws of this state or so nearly similar to that of any other such corporation so as to lead to confusion and uncertainty. Upon the filing for record of each such certificate, the said amendment to the certificate of incorporation shall become effective. If the proposed amendment effects a change in the name of the district, the judge of probate shall promptly send a notice to the Secretary of State, advising him of such change.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §5; Acts 1989, No. 89-745, p. 1494, §4.)*
##### **§ 11-89-6** Board of Directors {#sec-11-89-6 omnilex-key=us-al-statutes--title-11--11-89-6}
Each district shall be governed by a board of directors. All powers of the district shall be exercised by the board or pursuant to its authorization. Subject to the provisions of Sections 11-89-3 and 11-89-4, the board shall consist initially of that number of directors, apportioned among and elected by the authorizing subdivisions, as shall be specified in the certificate of incorporation of the district. The initial term of office of each such director shall begin immediately upon his election and shall end at 12:01 A.M. on the fourth anniversary date of the filing for record of the certificate of incorporation of the district. Thereafter, the term of office of each such director shall be four years; provided however, each county commission may, if they desire, number the place of each director and prescribe one-, two-, three-or four-year terms for each place so as to stagger the terms of office of the directors.
If any amendment to the certificate of incorporation of the district effected in accordance with the provisions of Section 11-89-5 shall increase the membership of the board, the board shall thereafter consist of such number of directors, elected by such governing bodies, as may be specified in the said amendment. The initial term of office of each new director added by any such amendment shall begin immediately upon his election and shall end at 12:01 A.M. on the fourth anniversary date of the filing for record of such amendment. The term of office of each new director, added by amendment as aforesaid, shall, following the initial term of such new director, be for a period of four years. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by that governing body which elected the director whose unexpired term he is to fill. Each election of a director, whether for a full four-year term or to complete an unexpired term, shall be made not earlier than 30 days prior to the date on which such director is to take office as such. No officer of the state or of any county or municipality shall, during his tenure as such officer, be eligible to serve as a director.
Each director of a district, other than a supply district, elected by a county governing body must be a duly qualified elector of that county from which he was elected, or, if elected by a municipality of less than 2,000 inhabitants according to the most recent decennial census, such director must be a duly qualified elector of that county in which such municipality is located, or, if elected by a municipality of 2,000 or more inhabitants according to said census, such director must be a duly qualified elector of the municipality from which he was elected. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him in and about the performance of his duties. If the certificate of incorporation so provides, each director, except the chairman of the board, shall be compensated in an additional amount as prescribed by the governing body of each authorizing subdivision. The chairman shall, if said certificate so provides, be compensated in an additional amount as prescribed by the governing body of each authorizing subdivision.
Any director of the district 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 and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175.
If the certificate of incorporation so provides, the directors shall have proportional voting power, based on the measure or measures set out in the certificate of incorporation.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §6; Acts 1979, No. 79-818, p. 1520; Acts 1989, No. 89-745, p. 1494, §5.)*
##### **§ 11-89-7** Powers of District Generally; Power of District to Acquire, Operate, Etc., Systems, Etc., Outside Service Area; Provisions in Schedules of Rates and Charges Generally {#sec-11-89-7 omnilex-key=us-al-statutes--title-11--11-89-7}
(a) The district shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be perpetuity, subject to the provisions of Section 11-89-17) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil actions, except as otherwise provided in this chapter, and to defend civil actions against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(5) To acquire, receive, and take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, real, personal, or mixed, whether located in one or more counties or municipalities and whether located within or outside the service area;
(6) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the district was organized or to exercise any power expressly granted under this section;
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate water systems, sewer systems, and fire protection facilities or any part or combination of any thereof, whether located in one or more counties or municipalities and whether located within or outside any service area and without any requirement that such water systems, sewer systems, or fire protection facilities or all or any part of any thereof be interconnected or otherwise constitute an integrated operational unit, and to acquire real and personal property, franchises, and easements deemed necessary or desirable in connection therewith;
(8) To distribute and sell water, either at retail or for resale, within the service area or in any part thereof or to or on behalf of one or more counties, municipalities, or other public corporations upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe;
(9) To furnish and provide sewer service in the service area or in any part thereof or to or on behalf of one or more counties, municipalities, or other public corporations upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe; provided, however, that nothing in this chapter shall authorize any district to collect, transport, treat, or dispose of solid wastes or charge for the collection, transportation, treatment, or disposal of solid wastes from any industrial, manufacturing, or utility plant without consent from the owners or operators of such plant;
(10) To furnish and provide fire protection service in the service area or in any part thereof or to or on behalf of one or more counties, municipalities, or other public corporations upon such reasonable terms and for such reasonable rates and consideration as the board may prescribe;
(11) To sell and issue bonds of the district in order to provide funds for any corporate function, use, or purpose, any such bonds to be payable solely out of the revenues derived from any water system, sewer system, and fire protection facility or any thereof of the district;
(12) To assume obligations secured by a lien on or payable out of or secured by a pledge of the revenues from any water system, sewer system, and fire protection facility or any part of any thereof that may be acquired by the district, any obligation so assumed to be payable by the district solely out of the revenues derived from the operation of any water system, sewer system, and fire protection facility or any thereof of the district;
(13) To pledge for payment of any bonds issued or obligations assumed by the district any revenues from which those bonds or obligations are made payable as provided in this chapter;
(14) To execute and deliver, in accordance with the provisions of this section and of Sections 11-89-8 and 11-89-9, mortgages and deeds of trust and trust indentures or either;
(15) To exercise the power of eminent domain in the manner provided in and subject to the provisions of Title 18; provided, that this subdivision shall not be deemed to authorize the district to acquire, without the consent of the owner or owners thereof, any water supply system or water distribution system from which water service is at the time being furnished, any sewer system from which sewer service is at the time being furnished, or any property that is at the time being used in the furnishing of fire protection service; provided further, that such right of eminent domain shall not apply to real property or interests therein previously dedicated to public use; and provided further, nothing herein shall authorize any district, county, municipality, public corporation, or other authorizing subdivision to acquire any portion of or withdraw water from any hydroelectric project licensed by the Federal Energy Regulatory Commission or any predecessor or successor agency without the consent of the owner and licensee of said project and the approval of the Federal Energy Regulatory Commission or any successor agency;
(16) To appoint, employ, contract with, and provide for the compensation of such officers, employees, and agents, including, but without limitation to, engineers, attorneys, management consultants, and fiscal advisers as the business of the district may require, and, at its option, to provide a system of disability pay, retirement compensation, and pensions or any of them without regard to any provisions of Sections 41-16-50 through 41-16-63 that might otherwise be applicable;
(17) To make and enforce reasonable rules and regulations governing the use of any water system, sewer system, or fire protection facility owned or controlled by the district;
(18) To provide for such insurance as the board may deem advisable;
(19) To invest any funds of the district that the board may determine are not presently needed in the operation of its properties in bonds of the United States of America, bonds of the state, bonds of any county or municipality and interest-bearing bank deposits or any thereof;
(20) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any county, municipality, or other political subdivision of the state and any public corporation and to make such contracts with them or any of them, as the board may deem advisable to accomplish the purpose for which the district was established;
(21) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any water system, sewer system, or fire protection facility of the district;
(22) To sell and convey, with or without valuable consideration, any of its water systems, sewer systems, or fire protection facilities or any portion of any of the said systems and facilities to any one or more counties, municipalities, or public corporations which have the corporate power to operate the system and facilities or portions thereof so conveyed and the property and income of which are not subject to taxation; provided, that any such sale and conveyance may be made only with the consent of each county and municipality in which any part of any service area of the district is then located, or, with respect to a supply district, the consent of each authorizing subdivision, any such consent to be evidenced by a resolution adopted by the governing body of each consenting county and municipality, or authorizing subdivision, as the case may be, and only if any such conveyance would not constitute a breach of any then outstanding mortgage and deed of trust, trust indenture or other agreement to which the district is a party;
(23) To enter into a management agreement or agreements with any person for the management by the district of any water system, sewer system, or fire protection facility or any thereof upon such terms and conditions as may be mutually agreeable;
(24) To fix and revise from time to time reasonable rates, fees, and other charges for water service, sewer service, fire protection service, or any thereof, furnished or to be furnished by any water system, sewer system, or fire protection facility, or portion of any thereof, owned or operated by the district, and to collect all charges made by it; and
(25) To require the owner, tenant, or occupant of each lot or parcel of land who is obligated to pay rates, fees, or charges for the use of or for the services furnished by any water system, sewer system, or fire protection system owned or operated by the district under the provisions of this chapter to make a reasonable deposit with the district in advance to insure the payment of such rates, fees, or charges and to be subject to the application to the payment thereof if and when delinquent.
(b) Nothing in this section shall be construed to permit a district other than a supply district to acquire, receive, take, hold, establish, develop, construct, reconstruct, enlarge, improve, maintain, equip, or operate any property or water system, sewer system, and fire protection facility or any part or combination of any thereof located outside the service area, except as an incident to the rendering of water service, sewer service, and fire protection service or any thereof inside the service area or to render water service, sewer service, and fire protection service or any thereof unless such district is authorized so to do in its certificate of incorporation and any amendments thereto.
(c) Any schedule or schedules of rates and other charges adopted by the board may:
(1) Provide for the rendition by the district to customers served by it of combined statements or bills for service furnished from its water systems, its sewer systems, and its fire protection facilities or any one or more of any thereof;
(2) Permit the district to decline to accept payment of charges for service from any of its said systems and facilities, without payment of charges for service at the same premises from any one or more of its other systems and facilities;
(3) Provide for a discontinuance of service from any or all of its said systems and facilities at any premises with respect to which there is a delinquency in the payment of charges for service from any system or facility of the district;
(4) Provide for the payment of connection fees, disconnection fees, and reconnection fees; and
(5) Require, as a prerequisite to the rendition of any service, the making of a deposit as a security for payment of bills, on which deposit the district shall not be obligated to pay or allow interest.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §7; Acts 1976, No. 540, p. 714; Acts 1979, No. 79-818, p. 1520; Acts 1989, No. 89-745, p. 1494, §6.)*
##### **§ 11-89-8** Bonds of District - Form, Terms, Denominations, Etc.; Sale; Execution and Delivery; Refunding; Liability Thereon; Security for Payment of Principal and Interest and Payment Thereof Generally; Provisions in Mortgages, Deeds of Trust or Trust Indentures Executed as Security for Payment of Bonds Generally {#sec-11-89-8 omnilex-key=us-al-statutes--title-11--11-89-8}
All bonds issued by the district shall be signed by the chairman of its board or other chief executive officer and attested by its secretary and the seal of the district shall be affixed thereto, and any interest coupons applicable to the bonds of the district shall be signed by the chairman of its board or other chief executive officer; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the district may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto and a facsimile of the signature of the chairman of its board or other chief executive officer may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
Any such bonds may be executed and delivered by the district at any time and from time to time shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the district may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds issued or obligations assumed by the district may thereafter at any time (whether before, at or after maturity of any such principal and whether at, after or not exceeding six months prior to the maturity of any such interest) and from time to time be refunded by the issuance of refunding bonds of the district, which may be sold by the district at public or private sale at such price or prices as may be determined by its board to be most advantageous or which may be exchanged for the bonds or other obligations to be refunded. The district may pay all expenses, premiums and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the district shall be construed to be negotiable instruments although payable solely from a specified source.
All obligations created or assumed and all bonds issued or assumed by the district shall be solely and exclusively an obligation of the district and shall not create an obligation or debt of any county or municipality; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the district.
Any bonds issued by the district shall be limited or special obligations of the district payable solely out of the revenues of the district specified in the proceedings authorizing those bonds. Any such proceedings may provide that the bonds therein authorized shall be payable solely out of the revenues derived from the operation of all water systems, sewer systems and fire protection facilities owned by the district or solely out of the revenues from the operation of any one or more of such systems or facilities or parts thereof, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems or facilities of the district.
The district may pledge for the payment of any of its bonds the revenues from which such bonds are payable and may execute and deliver a trust indenture evidencing any such pledge or a mortgage and deed of trust conveying as security for such bonds the water systems, sewer systems or the fire protection facilities or any part of any thereof the revenues or any part of the revenues from which are so pledged. Any mortgage and deed of trust or trust indenture made by the district may contain such agreements as the board may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage and deed of trust or affected by such trust indenture and respecting the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made; provided, that no such instrument shall be subject to foreclosure.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §9.)*
##### **§ 11-89-9** Bonds of District - Contracts to Secure Payment of Principal and Interest {#sec-11-89-9 omnilex-key=us-al-statutes--title-11--11-89-9}
As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the district may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any water system, sewer system, or fire protection facility owned by it or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from such system or facility, for the disposition and application of its gross revenues or any part thereof and for any other act or series of acts not inconsistent with the provisions of this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from such system or facility will be sufficient to operate such system or facility, maintain the same in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from such revenues and maintain such reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of such system or facility and the making of replacements thereof and capital improvements thereto.
Any contract pursuant to the provisions of this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust or trust indenture made by the district under this chapter.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §10.)*
##### **§ 11-89-10** Bonds of District - Statutory Mortgage Lien to Secure Payment of Principal and Interest {#sec-11-89-10 omnilex-key=us-al-statutes--title-11--11-89-10}
Any resolution of the board or trust indenture under which bonds may be issued pursuant to the provisions of this chapter may contain provisions creating a statutory mortgage lien, in favor of the holders of such bonds and of the interest coupons applicable thereto, on the water systems, sewer systems, and fire protection facilities or any thereof (including any after-acquired property) out of the revenues from which such bonds are made payable. The said resolution of the board or the said trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of such water systems, sewer systems, and fire protection facilities or any thereof may be located of a notice containing a brief description of such systems and facilities or either, a brief description of such bonds and a declaration that said statutory mortgage lien has been created for the benefit of the holders of such bonds and the interest coupons applicable thereto upon such systems and facilities or either, including any additions thereto and extensions thereof. Each judge of probate shall receive, record, and index any such notice filed for record in his office. The recording of such notice, as provided in this section, shall operate as constructive notice of the contents thereof.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §11.)*
##### **§ 11-89-11** Bonds of District - Disposition of Proceeds from Sale of Bonds {#sec-11-89-11 omnilex-key=us-al-statutes--title-11--11-89-11}
All moneys derived from the sale of any bonds issued by the district shall be used solely for the purpose or purposes for which the same are authorized and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, engineering, legal, and other expenses incurred in connection with the issuance of the bonds;
(2) Interest on the bonds in the case of bonds issued to pay costs of construction or, if a part only of any series of bonds is issued for construction purposes, interest on that portion of the bonds of that series that is issued to pay construction costs prior to and during such construction and for not exceeding one year after completion of such construction; and
(3) Any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded in the case of bonds issued for the purpose of refunding principal and interest, or either, with respect to bonds issued or obligations assumed by the district.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §12.)*
##### **§ 11-89-12** Establishment and Revision of Rates, Fees, and Charges for Services Rendered by District {#sec-11-89-12 omnilex-key=us-al-statutes--title-11--11-89-12}
Rates, fees, and charges for water service, sewer service, and fire protection service rendered by the district from any of its water systems, sewer systems or fire protection facilities shall be so fixed and from time to time revised as at all times to provide funds at least sufficient to:
(1) Pay the cost of operating, maintaining, repairing, replacing, extending, and improving the systems and facilities or either from which such services are rendered;
(2) Pay the principal of and the interest on all bonds issued and obligations assumed by the district that are payable out of the revenues derived from operation of those systems and facilities as the said principal and interest become due and payable;
(3) Create and maintain such reserve for the foregoing purposes or any of them as may be provided in any mortgage and deed of trust or trust indenture executed by the district under this chapter or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation or the acquisition of any such system or facility; and
(4) Make such annual payments, if any, to the United States of America or any agency or instrumentality thereof, the state, municipalities, counties, departments, authorities, agencies. and political subdivisions of the state and any public corporations organized under the laws of the state as the district may have contracted to make.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §8.)*
##### **§ 11-89-13** Loans, Sales, Grants, Etc., of Money, Property, Etc., to District by Counties, Municipalities, Public Corporations, Etc {#sec-11-89-13 omnilex-key=us-al-statutes--title-11--11-89-13}
For the purpose of securing water service, sewer service, or fire protection service or aiding or cooperating with the district in the planning, development, undertaking, construction, extension, improvement, operation, or protection of water systems, sewer systems, and fire protection facilities, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms and with or without consideration, as it may determine:
(1) Lend or donate money to, guarantee all or any part of the indebtedness of, or perform services for the benefit of the district;
(2) Donate, sell, convey, transfer, lease, or grant to the district, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any water system, sewer system, or fire protection facility, any interest in any thereof and any franchise;
(3) Contract with the district under such terms as may be mutually agreeable, including a contract obligating it to purchase a certain quantity of water from the district in a stipulated period of time, or to pay for such quantity of water whether or not it receives it; and
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with the district in the planning, undertaking, construction, or operation of water systems, sewer systems, and fire protection facilities.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §13; Acts 1989, No. 89-745, p. 1494, §7.)*
##### **§ 11-89-14** Use of Rights-of-Way of Public Roads by District {#sec-11-89-14 omnilex-key=us-al-statutes--title-11--11-89-14}
Each district is hereby authorized to use the rights-of-way of all public roads in the state without securing the prior approval of the state or of its agencies or departments or the governing body of any county and subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama; provided, however, that nothing in this section shall be construed to exempt any district from the requirements of Section 23-1-4; provided further, that the said district shall have the duty to restore at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in laying pipes or performing any of its other corporate functions.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §17.)*
##### **§ 11-89-15** Furnishing of Fire Protection Service by District Declared Governmental Function; Immunity from Tort Liability of District {#sec-11-89-15 omnilex-key=us-al-statutes--title-11--11-89-15}
The furnishing of fire protection service by a district is hereby declared to be a governmental function.
The district shall not be liable for any tort, whether negligent or willful, committed by any director, agent, servant, or employee of the district in the furnishing of fire protection service or in the construction, maintenance, or operation of any fire protection facility.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §14.)*
##### **§ 11-89-16** Exemption from Taxation of District and Property, Leases, Bonds, Etc., Thereof; Payment of Fees, Taxes, or Costs to Probate Judge for Incorporation, Etc {#sec-11-89-16 omnilex-key=us-al-statutes--title-11--11-89-16}
The district, the property and income of the district, all bonds issued by the district, the income from such bonds, conveyances by or to the district, and leases, mortgages, and deeds of trust by or to the district shall be exempt from all taxation in the State of Alabama. The district shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities that a district may engage in.
The district shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §15; Act 2017-423, §1.)*
##### **§ 11-89-17** Authorization and Procedure for Dissolution of District; Vesting of Title to Properties of District and Apportionment Thereof Upon Dissolution of District {#sec-11-89-17 omnilex-key=us-al-statutes--title-11--11-89-17}
At any time when the district has no bonds or other obligations outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the district shall be dissolved. Upon the filing for record of a certified copy of the said resolution in the office of the judge of probate of the county in which the district’s certificate of incorporation was filed the district shall thereupon stand dissolved and, in the event it owned any property at the time of its dissolution, the title to all its property shall thereupon pass to and be divided and apportioned among the counties and municipalities in which any part of the service area may be located, or, if it is a supply district, among its authorizing subdivisions, all in such manner and to such extent as may be provided in the district’s certificate of incorporation, as amended; provided, however, that in the absence of a contrary provision in the said certificate of incorporation, as amended, title to real estate and tangible personal property, other than cash, shall vest in the county or municipality, as the case may be, in which the said real estate or tangible personal property is located and the title to cash on hand and in banks, accounts receivable, choses in action, and other intangible property, other than intangible interest in land, shall vest in all of the counties and municipalities in which any part of the service area lies. Each such county and municipality shall have title to said cash and intangible items as a tenant in common thereof, the fractional interest of each such tenant in common in said items being represented by a fraction the numerator of which is an amount equal to the gross revenues derived by the district during its then next preceding complete fiscal year from service rendered in that part of its service area within that county or municipality, as the case may be, and the denominator of which is an amount equal to the gross revenues derived by the district during the same period from services rendered in its entire service area. For the purposes of this section only, real and tangible personal property, other than cash, located and service rendered wholly within a municipality shall not be deemed to be located or rendered, as the case may be, in a county.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §18; Acts 1989, No. 89-745, p. 1494, §8.)*
##### **§ 11-89-18** Existence of District Not to Prevent Subsequent Incorporation, Etc., of Another District {#sec-11-89-18 omnilex-key=us-al-statutes--title-11--11-89-18}
The existence of one or more districts incorporated under the provisions of this chapter shall not prevent the subsequent incorporation under this chapter of another district or the amendment of the certificate of incorporation of another district pursuant to authority granted by the same county, counties, municipality or municipalities, public corporation or public corporations, or by the same combination thereof, even though the service area described in the certificate of incorporation, as originally filed or amended, of any existing district may include territory that lies within the proposed service area of a district that is proposed to be incorporated under this chapter or that proposes to amend its certificate of incorporation under this chapter.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §19; Acts 1989, No. 89-745, p. 1494, §9.)*
##### **§ 11-89-19** Provisions of Chapter as to Incorporation of District, Acquisition of Property, Issuance of Bonds, Etc., Exclusive; Jurisdiction Over and Regulation of District, Etc., by State Board of Health, Public Service Commission, Etc {#sec-11-89-19 omnilex-key=us-al-statutes--title-11--11-89-19}
Except as expressly otherwise provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of any district or the amendment of its certificate of incorporation, the acquisition of any property, water system, sewer system, or fire protection facility or the issuance of any bonds, mortgage and deed of trust or trust indenture; provided, however, that nothing contained in this section shall be construed to exempt any district from the jurisdiction of the State Board of Health.
The district, every water system, sewer system, or fire protection facility of the district and the rates and charges thereof shall be exempt from all jurisdiction of and all regulation and supervision by the Public Service Commission and neither a public hearing nor the consent of the State Department of Finance shall be prerequisite to the issuance of bonds by the district.
*(Acts 1970, Ex. Sess., No. 29, p. 2630, §16.)*
#### **Article 2** Special Corporations
##### **§ 11-89-30** Legislative Findings {#sec-11-89-30 omnilex-key=us-al-statutes--title-11--11-89-30}
The Legislature finds and determines that it is necessary and desirable to enable districts in existence to exercise their powers in a more efficient manner which does not interfere with their existing operations or confuse their management functions, accounting, and other records. The Legislature deems that special corporations may be necessary in certain areas for services to be expanded by districts to the fullest extent possible.
*(Acts 1994, No. 94-707, p. 1370, §1.)*
##### **§ 11-89-31** Definitions {#sec-11-89-31 omnilex-key=us-al-statutes--title-11--11-89-31}
All definitions in Section 11-89-1 are incorporated in this article by reference, except that “district” shall also mean in this article any district which is operating under this article. Moreover, where used in this article, the words “special corporation” shall mean any corporation organized pursuant to this article.
*(Acts 1994, No. 94-707, p. 1370, §2.)*
##### **§ 11-89-32** Procedure to Form Special Corporation {#sec-11-89-32 omnilex-key=us-al-statutes--title-11--11-89-32}
(a) In order to provide for operation and financing of one or more, but not all, of its authorized services under Chapter 89, Title 11, by following the procedures set out in this article, any district may establish a separate public corporation and grant to it the power to finance and operate any, but not all, of the authorized services of the district. If any district may, by its certificate of incorporation, provide more than one of fire protection service, sewer service, or water service in its service area, it may provide that any one or more of the services, but not all of them, may be operated and financed through a special corporation organized pursuant to this article. The procedure to organize a special corporation is as follows: The board shall adopt a resolution specifying that it is necessary or expedient that a special corporation be organized pursuant to this article to operate and finance one or more, but not all, of the services of the district in connection with a water system, sewer system, or fire protection facilities. The services to be exercised by the special corporation shall be expressly referred to in the resolution. The board shall authorize three persons who reside in the proposed service area of the special corporation to proceed to organize the special corporation. Each of these persons shall submit to the board the proposed certificate of incorporation of the special corporation, together with the certificate of the Secretary of State of the State of Alabama that the name proposed for the special corporation is not identical to that of any other corporation organized under the laws of this state or so similar thereto as to lead to confusion or uncertainty. The certificate of the Secretary of State shall be made an exhibit to the proposed certificate of incorporation and shall be recorded therewith. The board shall approve the certificate of incorporation and authorize it to be recorded. The certificate of incorporation shall be executed by each of the three persons designated as organizers and recorded in the office of the judge of probate of the county in which the certificate of incorporation of the district was recorded. The certificate of incorporation need not be recorded in any other office, even though it is proposed that the special corporation shall operate in more than one county.
(b) The certificate of incorporation of the special corporation shall state the following:
(1) The names of the persons forming the special corporation and a statement that each of them resides in the proposed service area of the special corporation.
(2) The period for the duration of the special corporation. If the duration is to be perpetual, subject to termination upon termination of the district, that fact shall be stated.
(3) The name of the district, together with the date on which the board of the district approved the certificate of incorporation.
(4) A statement of the type or types of service proposed to be rendered by the special corporation.
(5) Whether the service or services will be rendered throughout the entire service area of the district, or in a smaller service area. If the service or services will be rendered throughout the entire service area, no legal description need be set forth in the certificate of incorporation. If the service or services are to be rendered in a smaller service area, a concise legal description in the certificate of incorporation of the area or areas in which the special corporation proposes to render its service or services is required. In no event, shall the service area of a special corporation include any area not in the service area of the district.
(6) Any other matters relating to the special corporation that the incorporators may choose to insert and that have been approved by the board.
(c) If the special corporation is empowered to issue bonds, the certificate of incorporation shall contain a provision that prohibits any bonds from being issued unless the total principal amount, final maturity date, and applicable interest rate or rates of the bonds have been approved by the board.
*(Acts 1994, No. 94-707, p. 1370, §3.)*
##### **§ 11-89-33** Clarification of Powers {#sec-11-89-33 omnilex-key=us-al-statutes--title-11--11-89-33}
(a) In addition to the powers granted to the special corporation, it is provided that if the special corporation is to operate a sewer system to provide for the collection, transportation, treatment, storage, or disposal of solid wastes, such a system may include, in addition to the facilities set out in the definition of “sewer system” in Section 11-89-1, barges, boats, towboats, transfer facilities, and such licenses, grants, agreements, contracts, and franchises as may be necessary or desirable for the conduct of the system. Also, the special corporation may contract with any municipality located in whole or in part in any county in which any part of the service area of the special corporation lies, for the collection, transfer, transportation, treatment, storage, or disposal by the special corporation of solid wastes within the municipality.
(b) The certificate of incorporation may incorporate by reference and grant to the special corporation, with the necessary changes in detail, all powers of the district which are provided in Section 11-89-7, by reference to that code section without specific enumeration of the powers, and the district may delegate to the special corporation any or all of the powers of the district contained in the code section with respect to the service or services to be rendered by the special corporation, including, without limitation, the power of eminent domain.
*(Acts 1994, No. 94-707, p. 1370, §4.)*
##### **§ 11-89-34** Directors {#sec-11-89-34 omnilex-key=us-al-statutes--title-11--11-89-34}
Upon filing the certificate of incorporation and the certificate of the Secretary of State in the office of the judge of probate as provided in Section 11-89-32, the special corporation shall come into existence. The corporation shall have three directors. The directors shall be elected by the board for staggered terms so that one director shall serve an initial term of two years, one director shall serve an initial term of four years, and one director shall serve an initial term of six years. Thereafter, all directors shall serve six-year terms. Any director of the special corporation shall serve until his or her successor is elected and qualified. No director of the special corporation may be an officer of any municipality, county, or the State of Alabama, nor may any director of the special corporation be a director of the district. Each director shall reside in the service area of the special corporation as set forth in its certificate of incorporation. No director may be removed from office, except by virtue of ceasing to reside in the service area or by impeachment as provided in Section 11-89-6.
*(Acts 1994, No. 94-707, p. 1370, §5.)*
##### **§ 11-89-35** Duration {#sec-11-89-35 omnilex-key=us-al-statutes--title-11--11-89-35}
No special corporation shall have a duration longer than the duration of the district which brought it into existence and authorized its incorporation. The special corporation shall stand dissolved when the district is dissolved pursuant to Chapter 89 of Title 11.
*(Acts 1994, No. 94-707, p. 1370, §6.)*
##### **§ 11-89-36** Dissolution {#sec-11-89-36 omnilex-key=us-al-statutes--title-11--11-89-36}
Upon dissolution of a special corporation, all assets of the corporation shall be vested in the district. The dissolution may occur by expiration of the corporate life of the special corporation by the terms of its certificate of incorporation, or by adoption of a resolution to dissolve by the board of directors of the special corporation, if it has no bonds outstanding.
*(Acts 1994, No. 94-707, p. 1370, §7.)*
##### **§ 11-89-37** Acceptances {#sec-11-89-37 omnilex-key=us-al-statutes--title-11--11-89-37}
Each special corporation may accept loans, grants, gifts, and any contributions from any public or private entity.
*(Acts 1994, No. 94-707, p. 1370, §8.)*
##### **§ 11-89-38** Incorporation of Other Powers {#sec-11-89-38 omnilex-key=us-al-statutes--title-11--11-89-38}
Sections 11-89-8 to 11-89-19, inclusive, which are applicable to a district shall be applicable, with the necessary changes in detail, to a special corporation, except that no special corporation created by this article shall create another special corporation under this article.
*(Acts 1994, No. 94-707, p. 1370, §9.)*
### **Chapter 89A** Solid Waste Disposal Authorities
##### **§ 11-89A-1** Legislative Findings {#sec-11-89a-1 omnilex-key=us-al-statutes--title-11--11-89A-1}
It is hereby found and declared as follows: That the collection, disposal, and utilization of solid waste is a matter of grave concern to all citizens and is an activity thoroughly affected with the public interest; that the health, safety, and welfare of the people of this state require efficient solid waste collection and disposal service and efficient utilization of such waste; that the need exists to develop alternative energy sources for public and private consumption in order to reduce our dependence on such sources as petroleum products, natural gas, nuclear and hydroelectric generation; that solid waste represents a potential source of solid fuel, oil or gas that can be converted into energy; that technology exists to produce usable energy from solid waste; that there is a need for planning, research, development, and innovation in the design, management, and operation of facilities for solid waste management, in order to encourage continuing improvement and provide adequate incentives and processes for reducing operation and other costs in the management of solid waste; that a need exists for the demonstration of systems and techniques for materials recovery and reuse of solid waste; that long-term negotiated contracts with users of energy should be utilized as an incentive for the development of facilities for the recovery of energy from solid waste; that there is a shortage of funds available for the provision of solid waste disposal and resource recovery facilities; in order to provide for the collection and disposal of solid waste and to encourage planning of solid waste collection and disposal service and resource recovery through the development of systems for the recovery of material or energy from solid waste, it is necessary and desirable to authorize the creation by counties and municipalities (or any two or more thereof) in the state of authorities which will have the power to issue and sell bonds and notes and using the proceeds of such bonds and notes to acquire and construct such facilities.
*(Acts 1980, No. 80-278, p. 368, §1; Acts 1989, No. 89-744, p. 1476, §1.)*
##### **§ 11-89A-2** Definitions {#sec-11-89a-2 omnilex-key=us-al-statutes--title-11--11-89A-2}
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of a clear implication herein otherwise, be given the following respective interpretations herein:
(1) APPLICANT. A natural person who files a written application with the governing body of any county or municipality in accordance with the provisions of Section 11-89A-3.
(2) AUTHORITY. Any public corporation organized pursuant to the provisions of this chapter.
(3) AUTHORIZING RESOLUTION. A resolution or ordinance adopted by the governing body of any county or municipality in accordance with the provisions of Section 11-89A-3, that authorizes the incorporation of an authority.
(4) BOARD. The board of directors of an authority.
(5) BONDS. Bonds, notes, or other obligations representing an obligation to pay money.
(6) COSTS. As applied to a facility or any portion thereof, such term shall include all or any part of the cost of construction, acquisition, alteration, enlargement, extension, reconstruction, improvement, and remodeling of a facility, including all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, permits, approvals, licenses, and certificates and interests acquired or used for, in connection with or with respect to a facility, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring lands to which such buildings or structures may be moved, the cost of all machinery and equipment, financing charges, underwriters’ commissions or discounts, interest prior to, during, and for a period of six months following estimated completion of such construction and acquisition, provisions for reserves for both principal and interest and for maintenance, extensions, enlargements, additions, and improvements to any facilities then being or theretofore acquired and all other amounts authorized by any authority to be paid into any special funds from proceeds of bonds issued by the authority, the cost of architectural, engineering, financial, and legal services, plans, specifications, studies, surveys, estimates of cost and revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing a facility, and such other expenses as may be necessary or incident to the construction and acquisition of a facility, the financing of such construction and acquisition and the placing of a facility in operation.
(7) COUNTY. Any county in the state.
(8) DETERMINING COUNTY. With respect to an authority, any county the governing body of which shall have made findings and determinations of fact pertaining to the organization of such authority in accordance with the provisions of Section 11-89A-3.
(9) DETERMINING MUNICIPALITY. With respect to an authority, any municipality the governing body of which shall have made findings and determinations of fact pertaining to the organization of such authority in accordance with the provisions of Section 11-89A-3.
(10) DETERMINING SUBDIVISION. With respect to an authority, any determining county or determining municipality.
(11) FACILITY. All or any part of either or both of (i) a solid waste disposal facility, and (ii) a resource recovery facility, including all land, rights-of-way, property rights, franchise rights, machinery, equipment, vehicles, furniture, fixtures, and all other property, rights, easements, and interests necessary or desirable in connection therewith.
(12) GOVERNING BODY. With respect to a municipality, its city or town council, board of commissioners, or other like governing body exercising the legislative functions of a municipality and, with respect to a county, its county commission or other like governing body exercising the legislative functions of a county.
(13) INCORPORATORS. The persons forming a public corporation pursuant to the provisions of this chapter.
(14) MUNICIPALITY. An incorporated municipality in the state.
(15) PERSON. The state, a municipality, a county, or any political subdivision or agency of the state or county or a municipality, a public corporation, or any private corporation, individual, partnership, trust, or foundation.
(16) RESOURCE RECOVERY FACILITY. Such term shall include any land, building, plant, system, facility, equipment, or other property, or any combination of either thereof, used or useful or capable of future use in connection with the extracting, converting to energy, or otherwise separating and preparing solid waste for reuse.
(17) RECOVERED RESOURCE. Material or energy in any form whatsoever, including but not limited to steam, gas, or electricity, which are or may be collected or recovered from or with respect to solid waste.
(18) REVENUES. All rentals, receipts, income, and other charges derived or received or to be derived or received by the authority from any of the following: The operation by the authority of a facility or facilities, or part of either thereof; the sale, including installment sales or conditional sales, lease, sublease, or use or other disposition of any facility or portion thereof; the sale, lease, or other disposition of recovered resources; contracts, agreements, or franchises with respect to a facility (or portion thereof), with respect to recovered resources, or with respect to a facility (or portion thereof) and recovered resources, including but not limited to charges with respect to the disposal of solid waste received with respect to a facility, income received as a result of the sale or other disposition of recovered resources; any gift or grant received with respect thereto; proceeds of bonds to the extent of use thereof for payment of principal of, premium, if any, or interest on the bonds as authorized by the authority; proceeds from any insurance, condemnation, or guaranty pertaining to a facility or property mortgaged to secure bonds or pertaining to the financing of a facility; income and profit from the investment of the proceeds of bonds or of any revenues and the proceeds of any special tax to which it may be entitled.
(19) SOLID WASTE. Any garbage, refuse, or sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility and other discarded materials, including solid, liquid, semi-solid, or contained gaseous material resulting from industrial, commercial, mining, and agricultural operations, and from community activities.
(20) SOLID WASTE DISPOSAL FACILITY. Such term shall include any land, building, plant, system, facility, trucks, and other motor vehicles, equipment or other property, whether real, personal, or mixed, or any combination of either thereof, used or useful or capable of future use in connection with the collection, storage, treatment, utilization, recycling, processing, transporting, or disposal of solid waste, including transfer stations, incinerators, sanitary landfill facilities, or other facilities necessary or desirable in connection therewith.
(21) SPECIAL TAX. Any tax which may be levied for the benefit of an authority or any facility owned or operated by it or the proceeds of which may have been appropriated, allocated, or apportioned to such authority, or to or for the benefit of any such facility, by the Legislature or by the governing body of a county or municipality.
(22) STATE. The State of Alabama.
*(Acts 1980, No. 80-278, p. 368, §2; Acts 1989, No. 89-744, p. 1476, §2.)*
##### **§ 11-89A-3** Filing of Application for Incorporation of Authority; Denial or Authorization of Incorporation by Governing Body of County or Municipality {#sec-11-89a-3 omnilex-key=us-al-statutes--title-11--11-89A-3}
A public corporation may be organized pursuant to the provisions of this chapter in any county or municipality. In order to incorporate such a public corporation, any number of natural persons, not less than three, who are duly qualified electors of a proposed determining subdivision shall first file a written application with the governing body of any county or municipality, or any two or more thereof, which application shall:
(1) Recite the name of each county and municipality with the governing body of which such application is filed;
(2) Contain a statement that the applicants propose to incorporate an authority pursuant to the provisions of this chapter;
(3) State the proposed location of the principal office of the authority;
(4) State that each of the applicants is a duly qualified elector of the determining subdivision (or, if there is more than one, at least one thereof); and
(5) Request that the governing body of such determining subdivision adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed, approving its certificate of incorporation and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-89A-4. Every such application shall be accompanied by the form of certificate of incorporation of the proposed authority and by such other supporting documents or evidence as the applicants may consider appropriate.
As promptly as may be practicable after the filing of the application with it in accordance with the provisions of this section, the governing body of the determining subdivision with which the application was filed shall review the contents of the application, and the accompanying form of certificate of incorporation and shall adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary and that the proposed authority be formed, approving the form of its certificate of incorporation and authorizing the applicants to proceed to form the proposed authority by the filing for record of such a certificate of incorporation in accordance with the provisions of Section 11-89A-4. While it shall not be necessary that any such resolution be published in a newspaper or posted, each governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1980, No. 80-278, p. 368, §4; Acts 1989, No. 89-744, p. 1476, §3.)*
##### **§ 11-89A-4** Incorporation Procedure; Contents, Execution, and Filing of Certificate of Incorporation; Notice to Secretary of State {#sec-11-89a-4 omnilex-key=us-al-statutes--title-11--11-89A-4}
(a) Within 40 days following the adoption of an authorizing resolution (or, if there is more than one, the last adopted thereof), the applicants shall proceed to incorporate an authority by filing for record in the office of the judge of probate of the county in which the principal office of the authority is to be located a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner provided in this chapter and shall also be in the form theretofore approved by the governing body of each determining subdivision.
(b) The certificate of incorporation of the authority shall state:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector of the determining subdivision (or, if there is more than one, at least one thereof);
(2) The name of the authority (which may be a name indicating in a general way the area proposed to be served by the authority and shall include the words “_____ Solid Waste Disposal Authority,” or “The Solid Waste Disposal Authority of _____,” the blank spaces to be filled in with the name of one or more of the determining subdivisions or other geographically descriptive word or words, such descriptive word or words not, however, to preclude the authority from locating facilities or otherwise exercising its powers in other geographical areas), unless the Secretary of State shall determine that such name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case the incorporators may insert additional identifying words so as to eliminate said duplication or similarity;
(3) The period for the duration of the authority (if the duration is to be perpetual, subject to the provisions of Section 11-89A-21, that fact shall be stated);
(4) The name of each determining subdivision together with the date on which the governing body thereof adopted an authorizing resolution;
(5) The location of the principal office of the authority, which shall be within the boundaries of the determining subdivision (or, if more than one, at least one thereof);
(6) That the authority is organized pursuant to the provisions of this chapter;
(7) If the exercise by the authority of any of its powers hereunder is to be in any way prohibited, limited, or conditioned, a statement of the terms of such prohibition, limitation, or condition;
(8) The number of members of the board of directors of the authority, which shall be an odd number not less than three, the duration of their respective terms of office (which shall not be in excess of six years) and (subject to the provisions of Section 11-89A-6) the manner of their election or appointment;
(9) Any provisions, not inconsistent with Section 11-89A-21, relating to the vesting of title to its properties upon its dissolution; and
(10) Any other related matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgements to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (i) a copy of the application as filed with the governing body of each determining subdivision in accordance with the provisions of Section 11-89A-3, (ii) a certified copy of the authorizing resolution adopted by the governing body of each determining subdivision, and (iii) a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty.
(d) Upon the filing for record of the said certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Acts 1980, No. 80-278, p. 368, §5; Acts 1989, No. 89-744, p. 1476, §4.)*
##### **§ 11-89A-5** Amendments to Certificate of Incorporation {#sec-11-89a-5 omnilex-key=us-al-statutes--title-11--11-89A-5}
The certificate of incorporation of any authority incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chairman of the board and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of each determining subdivision, requesting such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of a determining subdivision pursuant to the foregoing provisions of this section, that governing body shall review the said application and shall adopt a resolution either denying the said application or authorizing the proposed amendment. While it shall not be necessary that any such resolution be published in a newspaper or posted, the governing body of each determining subdivision with which such application is filed shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon the said application is taken. The certificate of incorporation of an authority may be amended only after the filing of such an application therefor and the adoption by the governing body of each determining subdivision of an approving resolution.
Within 40 days following the adoption by the governing body of the determining subdivision of a resolution approving the proposed amendment (or, if there is more than one, the last adopted of such approving resolutions) the chairman of the board of the authority and the secretary of the authority shall sign, and file for record in the office of the judge of probate with which the certificate of incorporation of the authority was originally filed a certificate in the name of and in behalf of the authority, under its seal, reciting the adoption of said respective resolutions by the board and by the governing body of each determining subdivision and setting forth the said proposed amendment. The judge of probate for such county shall thereupon record said certificate in an appropriate book in his office. When such certificate has been so filed and recorded, such amendment shall become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of an authority shall be amended except in the manner provided in this section.
*(Acts 1980, No. 80-278, p. 368, §6; Acts 1989, No. 89-744, p. 1476, §5.)*
##### **§ 11-89A-6** Board of Directors of Authority; Election; Terms of Office; Vacancies; Qualifications; Expenses; Meetings; Notice and Waiver; Resolutions; Impeachment {#sec-11-89a-6 omnilex-key=us-al-statutes--title-11--11-89A-6}
(a) Each authority shall have a board of directors composed of the number of directors provided in the certificate of incorporation, as most recently amended; provided, however, that in the case of any authority in existence and incorporated prior to May 11, 1989, the board shall consist of three directors who shall be elected by the governing body of the determining subdivision for staggered terms in accordance with the provisions of law as it existed immediately prior to the aforesaid effective date unless such authority shall otherwise amend its certificate of incorporation pursuant to the provisions of Section 11-89A-5. Unless provided to the contrary in its certificate of incorporation, all powers of the authority shall be exercised, and the authority shall be governed, by the board or pursuant to its authorization. Subject to the provisions of the first sentence of this subsection (a) and to the provisions of subdivision (8) of subsection (b) of Section 11-89A-4, the board shall consist of directors having such qualifications, being elected or appointed by such person or persons (including, without limitation, the board itself, the governing body or bodies of one or more determining subdivisions or other counties and municipalities, and other entities or organizations) and in such manner, and serving for such terms of office, all as shall be specified in the certificate of incorporation of the authority; provided, however, that no fewer than a majority of the directors shall be elected by the governing body or bodies of one or more of the determining subdivisions and the certificate of incorporation of each authority must contain provisions having this effect. Unless provided to the contrary in the certificate of incorporation of an authority, any officer of any determining subdivision shall be eligible for appointment and may serve as a member of the board for the term for which he is appointed or during his tenure as an officer of such determining subdivision, whichever expires first.
(b) If, at the expiration of any term of office of any director, a successor thereto shall not have been elected or appointed, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected or appointed. If at any time there should be a vacancy on the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to such vacancy shall be elected or appointed by the person or persons who elected or appointed the predecessor director. Each election or appointment of a director, whether for a full term or to complete an unexpired term, shall be made not earlier than 30 days prior to the date on which such director is to take office as such. Any director, irrespective of by whom elected or appointed, shall be eligible for reelection or reappointment.
(c) Each director shall serve as such without compensation but shall be reimbursed for expenses actually incurred by him in and about the performance of his duties. A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board may be adjourned from time to time by a majority of the directors present or may be so adjourned by a single director if such director is the only director present at such meeting. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times as may be provided in the bylaws of the authority, may hold other meetings at any time and from time to time upon such notice as may be required by the bylaws of the authority, and must upon call of the chairman of the authority or a majority of the total number of directors, hold a special meeting, none of which meetings shall be subject to the provisions of Section 13A-14-2 or other similar law. Whenever any notice is required by the bylaws of the authority to be given of any meeting of the board, a waiver thereof in writing, signed (whether before or after such meeting) by the person or persons entitled to such notice, shall be the equivalent to the giving of such notice. Any matter on which the board is authorized to act may be acted upon at any regular, special or called meeting. At the request of any director, the vote on any question before the board shall be taken by yeas and nays and entered upon the record. All resolutions adopted by the board shall be reduced to writing and signed by the secretary of the authority and shall be recorded in a well-bound book. Copies of such proceedings, when certified by the secretary of the authority, under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(d) Any director may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama of 1901 and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175.
*(Acts 1980, No. 80-278, p. 368, §7; Acts 1989, No. 89-744, p. 1476, §6.)*
##### **§ 11-89A-7** Officers of Authority {#sec-11-89a-7 omnilex-key=us-al-statutes--title-11--11-89A-7}
The officers of an authority shall consist of a chairman, a vice-chairman, a secretary, a treasurer, and such other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may, but need not be, held by the same person. The chairman and vice-chairman of an authority shall be elected by the board from the membership thereof; the secretary, the treasurer, and any other officers of the authority may but need not be members of the board and shall also be elected by the board. The chairman, vice-chairman and secretary of the authority shall also be the chairman, vice-chairman and secretary of the board, respectively.
*(Acts 1980, No. 80-278, p. 368, §8.)*
##### **§ 11-89A-8** Powers of Authority; Location of Facilities of Authority {#sec-11-89a-8 omnilex-key=us-al-statutes--title-11--11-89A-8}
(a) Every authority shall have all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including (without limiting the generality of the foregoing) the following powers:
(1) To have succession in its corporate name for the duration of time (which may be in perpetuity, subject to the provisions of Section 11-89A-21 specified in its certificate of incorporation);
(2) To sue and be sued in its own name in civil suits and actions and to defend suit against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt, alter, and repeal bylaws, regulations, and rules, not inconsistent with the provisions of this chapter, for the regulation and conduct of its affairs and business;
(5) To acquire, whether by gift, purchase, transfer, foreclosure, lease, or otherwise, to construct and to expand, improve, operate, maintain, equip, and furnish one or more facilities, including all real and personal properties that its board may deem necessary in connection therewith, regardless of whether or not any such facility shall then be in existence and, if in existence, regardless of whether or not any such facility is then owned or leased by any person to which such facility may subsequently be sold or leased by such authority;
(6) To borrow money and to sell and issue bonds as hereinafter provided for any corporate use or purpose;
(7) To lease to any person or persons all or any part of any facility or facilities that are or are to be owned by it, to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof, all upon such terms and conditions as its board may deem advisable;
(8) To contract to sell, convey, or dispose of and to sell, convey, or dispose of all or any part of any recovered resource facility, and to contract to sell, convey, or dispose of all or any part of any recovered resources (including, but not limited to, the granting of options to purchase any recovered resources to any person), all for such consideration and upon such terms and conditions as its board may deem advisable;
(9) To enter into a contract or contracts with any person or persons granting to such person or persons the exclusive right to purchase or acquire from the authority any recovered resources or rights to recovered resources for such period as its board may deem advisable;
(10) To pledge for payment of any bonds issued or assumed by the authority any revenues (including proceeds of any special tax to which it may be entitled) from which such bonds are payable as provided in this chapter, and to mortgage or pledge any or all of its facilities and revenues or any part or parts thereof, whether then owned or received or thereafter acquired or received;
(11) To assume obligations secured by a lien on or secured by and payable out of or secured by a pledge of any facility or facilities or part thereof or the revenues derived from any facility or facilities that may be acquired by the authority;
(12) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which such authority was organized or to exercise any power expressly granted under this chapter;
(13) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to do any and all things not specifically prohibited by this chapter or other applicable laws of the state that may be necessary in order to avail itself of the aid and cooperation of the United States of America, the state or any agency, instrumentality, or political subdivision of either thereof in furtherance of the purposes of this chapter;
(14) To receive and accept from any source aid or contributions in the form of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this chapter, subject to any lawful condition upon which such aid or contributions may be given or made;
(15) To appoint, employ, and contract with such employees and agents, including, but not limited to, architects, engineers, attorneys, accountants, financial experts, fiscal agents, and such other advisors, consultants, and agents as may in its judgment be necessary or desirable, and to fix their compensations;
(16) To enter into a management contract or contracts with any municipality, any county, or any person or persons for the management, supervision, or operation of all or any part of its facilities as may in the judgment of such authority be necessary or desirable in order to perform more efficiently or economically any function for which it may become responsible in the exercise of the powers conferred upon it by this chapter;
(17) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as its board may deem desirable;
(18) To invest its moneys (including, without limitation, the moneys held in any special fund created pursuant to any trust indenture or agreement or resolution securing any of its bonds and proceeds from the sale of any bonds or notes) not required for immediate use in:
a. Any debt securities that are direct, general obligations of the United States of America;
b. Any debt securities, the payment of the principal of and interest on which is unconditionally guaranteed by the United States of America;
c. Any time deposit with, or any certificate of deposit issued by, any bank which is organized under the laws of the United States of America or any state thereof and deposits in which are insured by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation; and
d. Any debt obligation in which an insurance company organized under the laws of the state may legally invest its money at the time of investment by an authority;
(19) To procure or agree to the procurement of insurance or guarantees from the United States of America or any agency or instrumentality thereof, or from any private insurance company, of the payment of any bonds issued by such authority, and to pay premiums or fees for any such insurance or guarantees; and
(20) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to the provisions of this chapter.
(b) Any facility or facilities of an authority organized pursuant to determination by a determining municipality may be located within or without or partially within and partially without the determining municipality, subject to the following conditions:
(1) No such facility or part thereof shall be located more than 30 miles from the corporate limits of the determining municipality;
(2) No such facility or part thereof shall be located within the corporate limits of a municipality other than the determining municipality in this state;
(3) No such facility or part thereof shall be located within the police jurisdiction of another municipality in this state unless the governing body of such municipality has first adopted a resolution consenting to the location of such facility or part thereof in the police jurisdiction of such municipality; and
(4) No such facility or part thereof shall be located in a county other than that (or those) in which the determining municipality (or part thereof) is situated unless the governing body of such other county has first adopted a resolution consenting to the location of such facility or part thereof in such county.
(c) Any facility or facilities of an authority organized pursuant to determination by a determining county may be located within or without or partially within and partially without the determining county, subject to the following conditions:
(1) No part of a facility shall be located more than three miles outside the boundaries of the determining county;
(2) In no event shall any facility or part thereof be located within the corporate limits of a municipality unless the governing body of such municipality has first adopted a resolution consenting to the location of such facility or part thereof in such municipality; and
(3) No such project or part thereof shall be located in a county other than the determining county unless the governing body of such other county has first adopted a resolution consenting to the location of a part of such facility in such other county.
(d) Any facility or facilities of an authority jointly organized pursuant to determinations by two or more determining subdivisions may be located within or without or partially within and partially without the respective determining subdivisions, subject to the following conditions:
(1) No such facility or part thereof shall be located in a county other than (i) that (or those) in which any determining municipality (or part thereof) is situated or (ii) a county that is also a determining subdivision unless the governing body of such other county has first adopted a resolution consenting to the location of such facility or part thereof in such county; and
(2) No such facility or part thereof shall be located within the corporate limits of a municipality other than a determining municipality unless the governing body of such municipality has first adopted a resolution consenting to the location of such facility or part thereof in such municipality.
(e) Nothing herein contained shall be construed as granting to an authority the power to levy any taxes.
*(Acts 1980, No. 80-278, p. 368, §9; Acts 1989, No. 89-744, p. 1476, §7.)*
##### **§ 11-89A-9** Bonds of Authority, Generally {#sec-11-89a-9 omnilex-key=us-al-statutes--title-11--11-89A-9}
(a) Any authority shall have the power to issue, sell, and deliver at any time and from time to time its bonds in such principal amount or amounts as its board shall determine to be necessary to provide funds:
(1) To finance the costs of a facility or facilities;
(2) To refund bonds theretofore issued or assumed by the authority;
(3) To provide funds to enable it to achieve any of its other corporate purposes; or
(4) To accomplish any one or more of the objectives referred to in subdivisions (1) through (4).
(b) Any such bonds may be executed and delivered by the authority at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times, not exceeding 45 years from the date thereof, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent with this chapter as shall be provided in the proceedings of the board whereunder such bonds shall be authorized to be issued. If such action shall be deemed advisable by the board, there may be retained in the proceedings under which any of such bonds are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of such bonds, but nothing contained in this section shall be construed to confer on the authority any right or option to redeem any such bonds except as may be provided in the proceedings under which they shall be issued.
(c) All bonds issued by the authority shall be signed by the chairman of its board or other chief executive officer and attested by its secretary and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chairman of its board or other chief executive officer; provided, that a facsimile of the signature of one, but not both of said officers, may be printed or otherwise reproduced on any such bonds in lieu of a manual signature thereon, a facsimile of the seal of the authority may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chairman of its board or other chief executive officer may be printed or otherwise reproduced on any such interest coupons in lieu of a manual signature thereon.
(d) Prior to the preparation of definitive bonds, the authority may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.
(e) All obligations created or assumed and all bonds issued or assumed by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state, any determining subdivision, any county or municipality; provided, that the provisions of this subsection shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority.
*(Acts 1980, No. 80-278, p. 368, §10; Acts 1989, No. 89-744, p. 1476, §8.)*
##### **§ 11-89A-10** Security for Payment of Bonds; Contracts and Agreements to Secure {#sec-11-89a-10 omnilex-key=us-al-statutes--title-11--11-89A-10}
(a) Any bonds issued by the authority shall be revenue bonds and shall be payable solely out of such revenues of the authority as may be designated in the proceedings of the board under which they shall be authorized to be issued. Any such proceedings may provide that the bonds therein authorized shall be payable solely out of the revenues derived from the operation of any facility or facilities owned by the authority, regardless of the fact that those bonds may have been issued with respect to or for the benefit of a certain facility or facilities of the authority.
(b) As security for payment of the principal and interest on any bonds issued or assumed by it, any authority may enter into a contract or contracts, and adopt resolutions or other proceedings containing provisions constituting a part of the contract or contracts with the holders of such bonds, pertaining to, among other things, the following:
(1) Pledging all or any part of the revenues of such authority to secure the payment of such bonds;
(2) Pledging, assigning or mortgaging all or any part of the assets of such authority to secure the payment of such bonds;
(3) The creation of reserve, sinking or other funds and the regulation and disposition thereof;
(4) The issuance of additional bonds;
(5) Binding the authority to impose and collect reasonable rates for and the imposition of reasonable regulations respecting any service rendered from or with respect to any facility or facilities;
(6) The procedure, if any, by which the terms of any contract with the holders of such bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(7) Limitations on the amount of moneys to be expended by such authority for its operating expenses;
(8) Vesting in a trustee or trustees such property, rights, powers and duties as such authority may determine;
(9) Defining the acts or omissions to act that shall constitute a default in the performance of the obligations and duties of such authority to the holders of such bonds and providing for the rights and remedies of such holders in the event of such default; provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter; and
(10) Any other matters, of like or different character, which in any way affect the security or protection of the holders of such bonds.
(c) Any mortgage of property granted by any authority, any security interest in property created by it, or any assignment or pledge of revenues or contract rights made by it, in each case to secure the payment of its bonds, shall be valid and binding from the time when such mortgage is granted, such security interest created, or such assignment or pledge is made, as the case may be, and the property so mortgaged, the property with respect to which such security interest is so created, and the revenues and contract rights so assigned or pledged shall immediately (or as soon thereafter as such authority obtains any right thereto or interest therein) be subject to such mortgage, security interest, assignment or pledge, as the case may be, without physical delivery of any property, revenues or contract documents covered thereby or any further act, and the lien of any such mortgage, security interest, assignment or pledge shall be valid and binding as against all persons having claims of any kind in tort, contract or otherwise against such authority, irrespective of whether such persons have actual notice thereof, from the time notice of such mortgage, security interest, assignment or pledge is filed for record (1) in the office of the judge of probate in which the certificate of incorporation of such authority was filed for record and (2) in the case of any mortgage or security interest covering any tangible property, whether real, personal or mixed, in the office of the judge of probate of the county in which such property is or is to be located pursuant to any agreement made by such authority with any person respecting the location and use of such property. Such notice shall contain a statement of the existence of any such mortgage, security interest, assignment or pledge, as the case may be, a description of the property, revenues or contract rights subject thereto and a description of the bonds secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of any such mortgage, security interest, assignment or pledge. If the requirements of the preceding sentence are met, such notice may consist of (i) a summary statement prepared specially for the purpose of serving as such notice, (ii) an executed counterpart of any mortgage, security agreement, assignment, trust indenture or other instrument granting such mortgage, creating such security interest or making such assignment or pledge, as the case may be, or (iii) a certified copy of the resolution adopted by the board of such authority authorizing such mortgage, security interest, assignment or pledge, as the case may be.
*(Acts 1980, No. 80-278, p. 368, §11.)*
##### **§ 11-89A-11** Proceeds from Sale of Bonds {#sec-11-89a-11 omnilex-key=us-al-statutes--title-11--11-89A-11}
All moneys derived from the sale of any bonds issued by an authority shall be used solely for the purpose or purposes for which the same are authorized; provided, however, that if for any reason any part of such proceeds shall not be necessary for such purposes then such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on the said bonds. All accrued interest and premium received in any such sale shall be applied to the payment of interest or principal on the bonds sold.
*(Acts 1980, No. 80-278, p. 368, §12.)*
##### **§ 11-89A-12** Refunding Bonds {#sec-11-89a-12 omnilex-key=us-al-statutes--title-11--11-89A-12}
Any bonds issued or assumed by an authority may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different sources for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any such bonds that are to be so redeemed in connection with such refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with such refunding; provided, that unless duly called for redemption pursuant to provisions contained therein, the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding. Any refunding bonds may be sold by the authority at public or private sale at such price or prices as may be determined by its board to be most advantageous, or may be exchanged for the bonds or other obligations to be refunded. Any such refunding bonds may be executed and delivered by the authority at any time and from time to time, shall be in such form and denominations and have such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board.
Any refunding bonds issued by an authority shall be issued and may be secured in accordance with the provisions of Sections 11-89A-9 and 11-89A-10.
*(Acts 1980, No. 80-278, p. 368, §13.)*
##### **§ 11-89A-13** Freedom of Authority from Supervision and Control of State; Applicability of Article 1 of Chapter 27 of Title 22 {#sec-11-89a-13 omnilex-key=us-al-statutes--title-11--11-89A-13}
(a) This chapter is intended to aid the state through the furtherance of the purposes of the chapter by providing appropriate and independent instrumentalities with full and adequate powers to fulfill their functions. Except as expressly provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of any authority or the amendment of its certificate of incorporation, the purchase of any note or other instrument secured by a mortgage, deed of trust, note, or other security interest, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture, or the exercise of any other of its powers by an authority. Neither a public hearing nor the consent of the State Department of Finance or any other department, agency, bureau, board, or corporation of the state shall be prerequisite to the issuance of bonds by an authority.
(b) To the extent that Section 22-27-5 might in any way be applicable to the actions of the authority, the said section is hereby declared to be inapplicable, including particularly the provisions of the said section providing for the cancellation of contracts of counties and municipalities, and individuals, corporations, partnerships, or other agencies engaging in the collection and disposal of solid waste. Each authority shall, however, be subject to the provisions of Article 1 of Chapter 27 of Title 22 (other than the provisions of the said Section 22-27-5) respecting sanitary requirements in the disposal of solid waste.
*(Acts 1980, No. 80-278, p. 368, §14.)*
##### **§ 11-89A-14** Power of Eminent Domain {#sec-11-89a-14 omnilex-key=us-al-statutes--title-11--11-89A-14}
Each authority organized under the provisions of this chapter is hereby granted the power of eminent domain and may exercise such power in the manner provided by law for the purpose of obtaining real property for any facility or part thereof.
*(Acts 1980, No. 80-278, p. 368, §15.)*
##### **§ 11-89A-15** Cooperation, Aid, and Agreements from and with Other Bodies {#sec-11-89a-15 omnilex-key=us-al-statutes--title-11--11-89A-15}
(a) For the purpose of attaining the objectives of this chapter, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state, a county or municipality may, upon such terms and with or without consideration, as it may determine, do any or all of the following:
(1) Lend or donate money to any authority or perform services for the benefit thereof;
(2) Donate, sell, convey, transfer, lease, or grant to any authority, without the necessity of authorization at any election of qualified voters, any property of any kind;
(3) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with any authority in attaining the objectives of this chapter; and
(4) To pay to any authority the proceeds of any special tax appropriated, apportioned, or allocated to such authority or to or for the benefit of any facility owned or operated by such authority.
(b) Any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state, a county or municipality are each hereby specifically authorized to enter into a contract or contracts obligating any such entity to dispose of its solid waste, or any part thereof, at a facility or facilities owned or operated by such authority and obligating such county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state, a county or municipality to make payments to such authority for such disposal. The terms, provisions, and conditions of any such contract or contracts shall be such as a governing body of any such county, municipality, or political subdivision, public corporation, agency or instrumentality of the state, a county, or municipality deems appropriate. Any such contract or contracts may provide for the continuous disposal of such solid waste from year to year, but for a term not to exceed 45 years. Any costs to any such county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state, a county or municipality shall be paid annually out of the general operating funds of any such county, municipality, or other political subdivision, public corporation, agency, or instrumentality of the state or any county or municipality, and the entering into of such contract or contracts shall not constitute the incurring of a debt by such county, municipality or other political subdivision, public corporation, agency or instrumentality of the state or any county or municipality within the meaning of any constitutional or statutory limitations on debts of the state, the counties, or the municipalities.
*(Acts 1980, No. 80-278, p. 368, §16; Acts 1989, No. 89-744, p. 1476, §9.)*
##### **§ 11-89A-16** Exemption from Taxation, Etc {#sec-11-89a-16 omnilex-key=us-al-statutes--title-11--11-89A-16}
The property and income of any authority, all bonds issued by an authority, the income from such bonds, conveyances by or to an authority, and leases, mortgages, and deeds of trust or trust indentures by or to an authority shall be exempt from all taxation in the State of Alabama. Any authority shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document.
*(Acts 1980, No. 80-278, p. 368, §17.)*
##### **§ 11-89A-17** Exemption from Usury and Interest Laws {#sec-11-89a-17 omnilex-key=us-al-statutes--title-11--11-89A-17}
Each authority shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8.
*(Acts 1980, No. 80-278, p. 368, §18.)*
##### **§ 11-89A-18** Exemption from Competitive Bid Laws {#sec-11-89a-18 omnilex-key=us-al-statutes--title-11--11-89A-18}
Any authority and all contracts made by it shall be exempt from the laws of the State of Alabama requiring competitive bids for any contract to be entered into by municipalities or public corporations authorized by them, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1980, No. 80-278, p. 368, §19.)*
##### **§ 11-89A-19** Disposition of Net Earnings of Authority {#sec-11-89a-19 omnilex-key=us-al-statutes--title-11--11-89A-19}
An authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of an authority, then any portion, as determined by the board, of the net earnings of an authority thereafter accruing may, in the discretion of the board, be paid to one or more of its determining subdivisions.
*(Acts 1980, No. 80-278, p. 368, §20; Acts 1989, No. 89-744, p. 1476, §10.)*
##### **§ 11-89A-20** Bonds of Authority as Legal Investments {#sec-11-89a-20 omnilex-key=us-al-statutes--title-11--11-89A-20}
The bonds of any authority shall be legal investments in which the state and its agencies and instrumentalities, all counties, municipalities and other political subdivisions of the state and public corporations organized under the laws thereof, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions and investment companies of any kind, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whosoever are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds in their control or belonging to them.
*(Acts 1980, No. 80-278, p. 368, §21.)*
##### **§ 11-89A-21** Dissolution of Authority; Vesting of Title to Authority’s Property {#sec-11-89a-21 omnilex-key=us-al-statutes--title-11--11-89A-21}
At any time when an authority has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the judge of probate with which the authority’s certificate of incorporation is filed, the authority shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall, subject to any constitutional prohibition or inhibitions to the contrary, thereupon vest in one or more counties or municipalities in such manner and interests as may be provided in the said certificate of incorporation; provided, however, that if said certificate of incorporation contains no provision respecting the vesting of title to the properties of the authority, title to all such properties shall, subject to any constitutional provisions or inhibitions to the contrary, thereupon vest in its determining subdivision, or if such authority shall have more than one determining subdivision, in its determining subdivisions as tenants in common.
*(Acts 1980, No. 80-278, p. 368, §22; Acts 1989, No. 89-744, p. 1476, §11.)*
##### **§ 11-89A-22** Incorporation of Another Authority by Same Determining Subdivision {#sec-11-89a-22 omnilex-key=us-al-statutes--title-11--11-89A-22}
The existence of an authority incorporated under the provisions of this chapter shall not prevent the subsequent incorporation under this chapter of another authority pursuant to authority granted by the same determining subdivision.
*(Acts 1980, No. 80-278, p. 368, §23.)*
##### **§ 11-89A-23** Notice of Bond Resolution; Contest to Validity of Bonds, Etc {#sec-11-89a-23 omnilex-key=us-al-statutes--title-11--11-89A-23}
Upon the adoption by the board of any authority of any resolution providing for the issuance of bonds, such authority may, in the discretion of its board, cause a notice respecting the issuance of such bonds to be published once a week for two consecutive weeks in each county in which shall be located any facility financed or in any way assisted by the issuance of such bonds, such publication in each such county to be in a newspaper having general circulation therein. Such notice shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of such authority: “_____, a public corporation and instrumentality of the State of Alabama, on the _____ day of _____, authorized the issuance of $_____ principal amount of bonds (or notes, as the case may be) of the said public corporation for purposes authorized in the act of the Legislature of Alabama under which the said public corporation was organized. Any action or proceeding questioning or contesting the validity of the said bonds, or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before _______ (here insert date determined in accordance with the provisions of the next paragraph of this section).”
The date stated in such notice as the date on or before which any action or proceeding questioning or contesting the validity of the bonds referred to therein must be commenced shall be a date at least 30 days after the date on which occurs the last publication of such notice necessary for it to have been published at least once in all counties in which it is required to be published. Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in such notice or to contest the validity of any such bonds, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with the preceding sentence and stated in such notice as the date on or before which any such action or proceeding must be commenced. After such date no right of action or defense shall be asserted questioning or contesting the validity of such bonds, or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of such bonds or such instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before such date.
*(Acts 1980, No. 80-278, p. 368, §24.)*
##### **§ 11-89A-24** Cumulative Effect of Chapter {#sec-11-89a-24 omnilex-key=us-al-statutes--title-11--11-89A-24}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with provisions of this chapter.
*(Acts 1980, No. 80-278, p. 368, §25.)*
##### **§ 11-89A-25** Liberal Construction of Chapter {#sec-11-89a-25 omnilex-key=us-al-statutes--title-11--11-89A-25}
This chapter being remedial in nature, the provisions of this chapter shall be liberally construed to effect its purpose.
*(Acts 1980, No. 80-278, p. 368, §26.)*
### **Chapter 89B** Sale and Issuance of Bonds by Public Corporations Operating Water Systems
##### **§ 11-89B-1** Public Corporation Given Power to Sell and Issue Bonds, to Pledge for Payment Proceeds, Revenues, Etc., and to Issue Bonds or Notes for Temporary Borrowing {#sec-11-89b-1 omnilex-key=us-al-statutes--title-11--11-89B-1}
In addition to all other powers now or hereafter granted by law, each public corporation organized under the laws of the State of Alabama which is authorized by law (i) to operate a water system consisting of land, plants, systems, facilities, buildings and other property, or any combination of any thereof, which are used or useful or capable of future use in providing, furnishing, supplying or distributing water and (ii) to borrow money for use for one or more of its corporate purposes shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To sell and issue bonds of such public corporation in order to provide funds for any corporate function, use or purpose for which such public corporation is otherwise authorized by law to borrow money, any such bonds to be payable solely out of one or more of the following: (i) any or all proceeds of or receipts from any privilege, license, excise or other tax (whether such tax is levied by the State of Alabama or any county, municipality or public corporation thereof) received by such public corporation, including, without limitation, any tax proceeds or receipts which are required by law to be paid to or deposited to the credit of such public corporation and (ii) the revenues derived from any water, sewer or garbage system or other revenue-producing facility of such public corporation;
(2) To pledge for payment of any bonds issued by such public corporation any proceeds, receipts or revenues from which those bonds are made payable as provided in this chapter; and
(3) In evidence of any temporary borrowing of said public corporation, to issue from time to time revenue bonds or notes maturing not later than 36 months from the date of issuance. Any such temporary borrowing may be made in anticipation of the sale and issuance of long-term revenue bonds, and in such event, the principal proceeds from the sale of such long-term revenue bonds shall, to the extent necessary, be used for payment of the principal of and the interest on the temporary revenue bonds or notes issued in anticipation of the sale and issuance of such long-term revenue bonds. Any temporary bonds or notes issued pursuant to this paragraph may be refunded or renewed or extended for an additional period of not more than 36 months from the date of maturity of the temporary bonds or notes being refunded or renewed or extended, but otherwise pursuant to all of the terms and conditions of this paragraph, whether or not the project with respect to which the outstanding temporary bonds or notes were issued has been completed.
*(Acts 1991, No. 91-551, p. 1015, §1.)*
##### **§ 11-89B-2** Form, Terms, Denominations, Etc. of Bonds; Execution and Delivery; Interest; Sale; Issuance of Refunding Bonds; Liability on Bonds; Source of Payment; Use of Proceeds; Mortgage, Deed of Trust, Etc., Containing Certain Agreements {#sec-11-89b-2 omnilex-key=us-al-statutes--title-11--11-89B-2}
All bonds issued pursuant to the provisions of this chapter shall be signed by the chairman of the board of directors or other governing body or other chief executive officer of such public corporation and attested by its secretary and the seal of such public corporation shall be affixed thereto; provided, that a facsimile of the signatures of both of the officers whose signatures will appear on the bonds may be imprinted or otherwise reproduced thereon in lieu of being manually signed if the proceedings in which the bonds are authorized to be issued provide for the manual authentication of such bonds by a trustee, registrar or paying agent; provided further, that a facsimile of the seal of such public corporation may be imprinted or otherwise reproduced on any such bonds in lieu of being manually affixed thereto.
Any such bonds may be executed and delivered by such public corporation at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter and shall bear such rate or rates of interest, or no interest, computed, compounded (if determined by its board of directors or other governing body to be advantageous), payable at such time or times, and evidenced in such manner, as may be provided by resolution of its board of directors or other governing body. All such bonds of such public corporation may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by its board of directors or other governing body to be most advantageous. The principal of and interest on any such bonds issued or obligations assumed by such public corporation may thereafter at any time (whether before, at or after maturity of any such principal and whether at, after or not exceeding six months prior to the maturity of any such interest) and from time to time be refunded by the issuance of refunding bonds of such public corporation, which may be sold by such public corporation at public or private sale at such price or prices as may be determined by its board of directors or other governing body to be most advantageous or which may be exchanged for the bonds or other obligations to be refunded. Such public corporation may pay all expenses, premiums and commissions which its board of directors or other governing body may deem necessary and advantageous in connection with any financing done by it. All such bonds issued by such public corporation shall be construed to be negotiable instruments although payable solely from a specified source. Neither a public hearing nor consent of the State Department of Finance shall be prerequisite to the issuance of such bonds by such public corporation. All such bonds issued by such public corporation and the income therefrom shall be exempt from all taxation in the State of Alabama.
All obligations created or assumed and all such bonds issued or assumed by such public corporation shall be solely and exclusively an obligation of such public corporation and shall not create an obligation or debt of any county or municipality; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by such public corporation.
Any such bonds issued by such public corporation shall be limited or special obligations of such public corporation payable solely out of the proceeds, receipts or revenues specified in the proceedings authorizing those bonds. Any such proceedings may provide that the bonds therein authorized shall be payable solely out of one or more of the following: (i) any or all proceeds of or receipts from any privilege, license, excise or other tax (whether such tax is levied by the State of Alabama or any county, municipality or public corporation thereof) received by such public corporation, including, without limitation, any tax proceeds or receipts which are required by law to be paid to or deposited to the credit of such public corporation and (ii) the revenues derived from the leasing, sale or operation of all water, sewer and garbage systems and other revenue-producing facilities owned by such public corporation or solely out of the revenues from the leasing, sale or operation of any one or more of such systems or facilities or parts thereof, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only certain particular systems or facilities of such public corporation.
Such public corporation may pledge for the payment of any of its bonds the revenues from which such bonds are payable and may execute and deliver a trust indenture evidencing any such pledge or a mortgage and deed of trust conveying as security for such bonds the water, sewer or garbage systems or other revenue-producing facilities or any part of any thereof, the revenues or any part of the revenues from which are so pledged. Any mortgage and deed of trust or trust indenture made by such public corporation may contain such agreements as its board of directors or other governing body may deem advisable respecting the operation and maintenance of the property and the use of the revenues subject to such mortgage and deed of trust or affected by such trust indenture and respecting the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made; provided, that no such instrument shall be subject to foreclosure.
*(Acts 1991, No. 91-551, p. 1015, §2.)*
##### **§ 11-89B-3** Contracts as Security for Payment of Principal and Interest on Bonds {#sec-11-89b-3 omnilex-key=us-al-statutes--title-11--11-89B-3}
As security for payment of the principal of and interest on bonds issued or obligations assumed by it, such public corporation may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any water, sewer or garbage system or other revenue-producing facility owned by it or any part or parts thereof, for the imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from any such system or facility, for the disposition and application of its gross revenues or any part thereof and for any other act or series of acts not inconsistent with the provisions of this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from such system or facility will be sufficient to operate such system or facility, maintain the same in good repair and in good operating condition, pay the principal of and interest on any bonds payable from such revenues and maintain such reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of such system or facility and the making of replacements thereof and capital improvements thereto.
Any contract pursuant to the provisions of this section may be set forth in any resolution of its board of directors or other governing body authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust or trust indenture made by such public corporation under this chapter.
*(Acts 1991, No. 91-551, p. 1015, §3.)*
##### **§ 11-89B-4** Resolution of Board of Directors, Etc., or Trust Indenture Containing Provisions Creating Statutory Mortgage Lien {#sec-11-89b-4 omnilex-key=us-al-statutes--title-11--11-89B-4}
Any resolution of the board of directors or other governing body of such public corporation or trust indenture under which bonds may be issued pursuant to the provisions of this chapter may contain provisions creating a statutory mortgage lien, in favor of the holders of such bonds, on the water, sewer and garbage systems or other revenue-producing and facilities or any thereof (including any after-acquired property) out of the revenues from which such bonds are made payable. The said resolution of the board of directors or other governing body of such public corporation or the said trust indenture may provide for the filing for record in the office of the judge of probate of each county in which any part of such water, sewer and garbage systems or other revenue-producing facilities or any thereof may be located of a notice containing a brief description of such systems and facilities or any thereof, a brief description of such bonds and a declaration that said statutory mortgage lien has been created for the benefit of the holders of such bonds upon such systems and facilities or any thereof, including any additions thereto and extensions thereof. Each judge of probate shall receive, record and index any such notice filed for record in his office and no mortgage or deed tax shall be payable with respect to any such filing for record. The recording of such notice, as provided in this section, shall operate as constructive notice of the contents thereof.
*(Acts 1991, No. 91-551, p. 1015, §4.)*
##### **§ 11-89B-5** Use of Moneys Derived from Sale of Bonds {#sec-11-89b-5 omnilex-key=us-al-statutes--title-11--11-89B-5}
All moneys derived from the sale of any such bonds issued by such public corporation shall be used solely for the purpose or purposes for which the same are authorized, including the funding of all or part of any reserve funds which may be required for debt service, replacement and extension or capital improvements, and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, engineering, legal and other expenses incurred in connection with the issuance of and security for the bonds, including, without limitation, the charges, premiums or fees in connection with any debt service insurance or letter of credit or other additional security given with respect to its bonds, whether such amounts are to be paid in a lump sum or over a period of time;
(2) Interest on bonds in the case of bonds issued to pay costs of construction or, if a part only of any series of bonds is issued for construction purposes, interest on that portion of the bonds of that series that is issued to pay construction costs prior to and during such construction and for not exceeding one year after completion of such construction; and
(3) Any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded in the case of the bonds issued for the purpose of refunding principal and interest, or either, with respect to bonds issued or obligations assumed by such public corporation.
*(Acts 1991, No. 91-551, p. 1015, §5.)*
##### **§ 11-89B-6** Investment of Bond Proceeds {#sec-11-89b-6 omnilex-key=us-al-statutes--title-11--11-89B-6}
The proceeds of any such bonds issued by such public corporation and moneys held in any special fund established by such public corporation in connection with the issuance of any of its bonds may be invested in any direct obligations of the United States of America, the obligations of any agency of the United States of America, interest bearing bank deposits, or in any securities the payment of the principal of and interest on which is fully secured by direct obligations of the United States of America or in any obligations in which municipal or county funds are authorized to be invested pursuant to Section 11-81-21.
*(Acts 1991, No. 91-551, p. 1015, §6.)*
##### **§ 11-89B-7** Law Not to Repeal Existing Law; Construction {#sec-11-89b-7 omnilex-key=us-al-statutes--title-11--11-89B-7}
This law shall not repeal or supersede any existing law which authorizes the issuance and sale of bonds by a public corporation but no such existing law shall be construed to prohibit the issuance and sale of bonds as permitted by this chapter. This chapter shall be construed liberally to effect its purposes and neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which any public corporation might otherwise have under any laws of the State of Alabama, and the provisions of this chapter shall be cumulative to any such powers.
*(Acts 1991, No. 91-551, p. 1015, §7.)*
### **Chapter 89C** Storm Water Discharges into Separate Storm Sewers
##### **§ 11-89C-1** Legislative Findings and Intent {#sec-11-89c-1 omnilex-key=us-al-statutes--title-11--11-89C-1}
(a) The Legislature finds and declares that it is in the public interest and the health, safety, and welfare of the citizens of this state and within the police power of the state, county, and municipal governments to promote effective and efficient compliance with federal and state laws, rules, regulations, and permits relating to discharges into and from municipal separate storm sewers, and to promote and authorize the discovery, control, and elimination, wherever practicable, of that discharge at the local government level.
(b) It is the intention of the Legislature by passage of this chapter to assist the state in its implementation of the storm water laws, and to supplement the authority of the governing bodies of all counties and municipalities in the state to enable them to implement the storm water laws.
(c) It is further the intention of the Legislature to authorize and promote the intercooperation of the governing bodies in implementing the storm water laws and the purposes of this chapter.
(d) It is further the intention of the Legislature to authorize governing bodies to determine the methods and procedures they shall use to carry out the storm water laws and this chapter, to make their respective participation in a public corporation intercooperation program optional, and to adopt policies and procedures pertaining to their responsibilities in the program and the procedure for entry into and exit from the program. It is the intention of the Legislature to grant the governing bodies, whether in the program or acting individually, the enforcement authority needed in order to satisfy the requirements of storm water laws, further, to act by resolution or ordinance enforceable in their respective municipal courts or the district courts and by civil procedures in district and circuit courts, including fines, penalties, damages, and injunction as authorized and appropriate. It is the intention of the Legislature to grant governing bodies the authority to determine their financial needs to fund the administration, operations, and projects of the program, their individual needs, and the methods to generate and collect the necessary revenue and to authorize the use of the assessment, billing, and collection capabilities and authority of the respective county tax assessors and tax collectors for that purpose. It is the intention of the Legislature that any public corporations created pursuant to this chapter implement an efficient and effective storm water program that promotes the fullest public participation feasible.
(e) It is further the intention of the Legislature to limit the jurisdictional scope of local storm water management programs to include only those sites discharging into the municipal separate storm sewer system and, because this federal initiative is an unfunded mandate, to limit the substantive scope of such local programs to include only those rules, regulations, and aspects that are absolutely required to satisfy the Clean Water Act, as specifically set out in the Code of Federal Regulations. It is the intention of the Legislature to provide a funding mechanism to aid local storm water management programs in meeting the financial obligations imposed by this unfunded federal mandate provided that the expenses of such programs are restrained by the strict limitations on the scope of the programs to include only those rules, regulations, and aspects that are absolutely required to satisfy the Clean Water Act, as specifically set out in the Code of Federal Regulations.
(f) It is further the intention of the Legislature for an individual governing body or public corporation to primarily rely upon ADEM, to the fullest extent allowed by applicable state and federal laws, for the permitting and enforcement of all ADEM NPDES sites rather than subjecting such sites to double regulation.
*(Acts 1995, No. 95-775, p. 1835, §1; Act 2014-439, p. 1625, §1.)*
##### **§ 11-89C-2** Definitions {#sec-11-89c-2 omnilex-key=us-al-statutes--title-11--11-89C-2}
As used in this chapter, the following words and phrases shall have the following meanings:
(1) AGRICULTURAL LAND. Any real property classified or assessed as agricultural or forest land for property tax purposes.
(2) COMMERCIAL PROPERTY. Any real property that is not residential property, as defined in this section, or has not specifically been exempted from the fee provisions set out in Section 11-89C-9(d)(1).
(3) GOVERNING BODY. The governing body of a county or municipality in the state which is now or may hereafter be specifically designated in 40 C.F.R. Part 122, including, but not limited to, any appendices or revisions promulgated by EPA in conjunction with any expansion of the agency’s municipal separate storm sewer system program (e.g. Phase III, Phase IV, and/or equivalent expansions), or by ADEM pursuant to the authority delegated to it under the Clean Water Act, 33 U.S.C. §1251 et seq.
(4) GREENFIELD. Any real property not previously developed.
(5) ILLICIT DISCHARGE. Any discharge to a municipal separate storm sewer that is not composed entirely of storm water, except discharges pursuant to an NPDES permit (other than the NPDES permit for discharges from the municipal separate storm sewer) and discharges resulting from fire fighting and emergency management activities.
(6) MEMBER GOVERNING BODY. A governing body that joins a public corporation established pursuant to this chapter.
(7) MUNICIPAL SEPARATE STORM SEWER. A conveyance or system of conveyances, including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, manmade channels, or storm drains:
(i) Owned or operated by a city, town, county, association, or other public body;
(ii) Designed or used for collecting or conveying storm water;
(iii) Which is not a combined sewer; and
(iv) Which is not part of a publicly owned treatment works as defined in 40 C.F.R. §122.2.
(8) PUBLIC CORPORATION. Any public corporation created pursuant to this chapter.
(9) RESIDENTIAL PROPERTY. Any single-family owner-occupied residential property, historic buildings, or sites classified or assessed as Class III property, pursuant to Section 217 of Article XI of the Constitution of Alabama of 2022.
(10) RULE. Any public corporation regulation or standard of general applicability that prescribes or recommends law, procedure or policy for its member governing bodies specifically including all pro forma ordinances, regulations, resolutions, rules, procedures or remedies adopted and recommended by a public corporation.
(11) STORM WATER DISCHARGE ASSOCIATED WITH INDUSTRIAL ACTIVITY. The discharge from any conveyance which is used for collecting and conveying storm water and which is directly related to manufacturing, processing, or raw materials storage areas at an industrial plant. The term does not include discharges from facilities or activities excluded from the NPDES program under 40 C.F.R. Part 122, but shall include discharges from facilities which are included in the categories of industries listed in 40 C.F.R. §122.26(b)(14)(i) through (xi), inclusive, together with all subsequent categories of industries which may be so designated in 40 C.F.R. §122.26(b)(14) by EPA.
(12) STORM WATER LAWS. Those provisions of the Clean Water Act, 33 U.S.C. §1251 et seq., together with all other and subsequent applicable federal and state laws, rules, and regulations, as set out in applicable permits, relating specifically to the control of discharges into and from municipal separate storm sewers, but specifically excluding any EPA guidance or interpretations of those laws, rules, or regulations not promulgated in accordance with the Alabama Administrative Procedure Act or Administrative Procedure Act, 5 U.S.C. §500 et seq.
*(Acts 1995, No. 95-775, p. 1835, §2; Act 2014-439, p. 1625, §1.)*
##### **§ 11-89C-3** Public Corporation - Procedure for Incorporation {#sec-11-89c-3 omnilex-key=us-al-statutes--title-11--11-89C-3}
(a) Three or more natural persons who are either the mayor of a municipality or the chair of a county governing body of a county or counties in which a municipality is wholly or partially situated, may file with their respective governing bodies a written application to incorporate a public corporation pursuant to this chapter. If each of the governing bodies adopts a resolution declaring that the formation of a public corporation is wise, expedient, and necessary, and approves the proposed certificate of incorporation, the incorporators shall proceed to incorporate the public corporation pursuant to this chapter by executing and filing for record in either the office of the judge of probate of the participating county having the largest population according to the last federal decennial census, or, if there is not a participating county, in any county in which the municipality with the largest population according to the last federal decennial census is situated, a certificate of incorporation together with certified copies of the resolution of each approving governing body. Any governing body that fails to approve its participation in the public corporation shall be removed from the certificate of incorporation. The incorporation may proceed with the officials of the remaining three or more governing bodies. The certificate of incorporation shall include the following:
(1) The names of the incorporators and their official county or municipal office.
(2) The name of the public corporation.
(3) The duration of the public corporation which shall be perpetual.
(4) The location of the principal office of the public corporation.
(5) A statement that the corporation is organized pursuant to this chapter.
(6) Any other matters relating to the corporation that the incorporators may choose to insert and that are not inconsistent with this chapter or the laws of this state.
(b) Upon the filing for record of the certificate of incorporation and required attachments, the corporation shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation. The judge of probate shall send a notice to the Secretary of State that the certificate of incorporation of the public corporation has been filed for record. After filing, the certificate of incorporation may be amended in the manner provided by the board of directors of the public corporation.
*(Acts 1995, No. 95-775, p. 1835, §3.)*
##### **§ 11-89C-4** Powers of Public Corporation; Requirements for Development or Adoption of Rules, Procedures, Ordinances, Etc {#sec-11-89c-4 omnilex-key=us-al-statutes--title-11--11-89C-4}
(a) When expressly required to comply with storm water laws, any public corporation created pursuant to this chapter shall have the following powers:
(1) To establish, maintain, and operate an organizational structure pursuant to this chapter, its original or amended certification, and its bylaws or other rules of procedure, that will enable it to implement the storm water laws for and on behalf of any governing body that exercises the option to participate in or with a public corporation, provided that no new or greater authorities or powers other than those specifically granted to the governing bodies are conferred upon any public corporation formed pursuant to this chapter. Except for the authority provided in subdivision (20), authority to enforce the storm water laws is retained wholly and exclusively to the governing bodies and may not be further delegated to or assumed by the public corporation, its agents or employees.
(2) To establish the procedure by which a governing body may elect to join the public corporation and by which a member governing body may elect to withdraw from the public corporation.
(3) To establish a board of directors to serve as the governing body of the corporation to establish policy and procedure for the corporation. The board shall consist of one representative from each member governing body. The representative shall be the mayor, if the member governing body is a governing body of a municipality, or a county commissioner, if the member governing body is a governing body of a county. The board shall designate at least three members, and no more than five members, to serve as an executive committee to perform the executive and administrative functions of the corporation. The executive committee shall include one county commissioner from the largest county member governing body, if there is one, and at least two mayors. If there is no county member governing body, there shall be at least three mayors; or if there are no participating municipalities, there shall be at least three county commissioners, representing different counties. The board shall elect one executive committee member as chair, one as co-chair, and one as secretary. Individual board and executive committee members shall serve without compensation, but shall be entitled to reasonable actual expenses that are properly documented and authorized. All other needed organizational matters, bylaws, rules of procedure, and officers shall be determined by the board of directors.
(4) To employ individuals directly or indirectly through loaned, detailed, or assigned employees from the member governing bodies or other entities. Employees directly employed by the public corporation shall be eligible to participate in the employee benefit programs of any member governing body, including insurance and pension programs, upon approval of the executive committee and the subject member governing body.
(5) To enter into contracts with individuals, governing bodies, member governing bodies, governmental agencies, professional associations, corporations, partnerships, and other legal entities to implement the functions of this chapter.
(6) To purchase, lease, license, own, or otherwise acquire real and personal property, including easements, rights of way, and all other interests in land, including municipal separate storm sewers, buildings, and other facilities and equipment.
(7) To construct, operate, maintain, repair, and replace facilities for storm water functions.
(8) To contract with member governing bodies for the construction, improvement, renovation, management, or operation of their municipal separate storm sewer systems.
(9) To purchase or obtain insurance and other appropriate tangibles and intangibles.
(10) To apply for, solicit, and otherwise obtain and receive from any governmental, public, or private source, grants, contributions, and donations, of money, all forms of property, equipment, supplies, services, and labor.
(11) To hold and invest its moneys in all legal forms of investment for fiduciaries.
(12) To salvage, lend, lease, or sell by cash or installment, with or without interest, its lands, interest in land, facilities, equipment, and other property.
(13) To undertake or participate in studies, surveys, analyses, or investigations of storm water runoff and other functions of the storm water laws and this chapter.
(14) To adopt necessary and appropriate policies, procedures, rules, and regulations applicable to the member governing bodies to implement the storm water laws in accordance with this chapter.
(15) To develop and hold public hearings on pro forma resolutions or ordinances, or both, which may be adopted by any member governing body to implement this chapter.
(16) To develop pro forma remedies and procedures for the enforcement of resolutions or ordinances, or both, adopted to implement this chapter.
(17) To sue and be sued, except as immunized hereby, in its own name and to appear in all administrative forums.
(18) To establish the cost, charges, fees, or assessments as required of the member governing bodies for participation in the public corporation, necessary to fund the operation, activities, projects, and facilities of the corporation.
(19) In accordance with Section 11-89C-10, to establish the procedure for the assessment and collection by the tax assessor and tax collector of the respective counties or other public official performing those functions, of any fees, charges, or assessments levied by a member governing body.
(20) To authorize any officer, employee, or other agent of the public corporation to enter upon private or public property under the regulatory jurisdiction of one or more of its member governing bodies during normal business hours and upon the presentation of appropriate credentials for the purpose of performing investigations regarding the existence and source of contamination, and determining from the owner or other appropriate individual the methods they will employ to stop, neutralize, remove, or otherwise remedy the contamination. Any officer, employee, or other authorized agent who performs the duties authorized under this section in accordance with provisions hereof shall be immune from arrest and prosecution for trespass in performing any legal duty pursuant to this chapter by presenting identification issued or authorized by the public corporation.
(21) To do any and all things necessary or convenient to implement and administer this chapter.
(b) In the development of any rule or procedures for the enforcement of such, any public corporation created pursuant to this chapter shall do all of the following:
(1) Set a date and time for a public hearing and afford the public and interested parties an opportunity to offer written comments, and to present testimony and evidence in support of their respective positions as to the proposed resolutions, ordinances, remedies, or procedures and may have counsel to represent them at their own expense. The board of the corporation shall consider fully all written and oral submissions presented. At the conclusion of this hearing and any continuation thereof, the board of the corporation may modify or withdraw such proposals or may adopt such pro forma resolutions, ordinances, remedies, or procedures which are reasonable and supported by evidence from the proposal itself, the public comments submitted thereupon and the public hearing record and which shall be thereafter presented to the member municipal or county governing bodies, or both, for their consideration. Adoption of any rule shall require an affirmative vote of at least two-thirds (2/3) of the members of the board of the corporation. No later than 30 days following the adoption of a rule, the public corporation shall issue a statement reflecting the reasoning and evidence supporting adoption of the rule and an explanation for rejecting the evidence or assertions made urging modification or withdrawal of the rule.
(2) Give notice of the hearing by publishing in a newspaper of general circulation published within the county in which the corporation members exist at least 45 days prior to the date of the hearing stating the date, time, and location of the hearing, and including either the terms or the substance of the proposals to be considered or a description of the subjects and issues involved, the address of the location where copies of the proposed resolution, ordinances, remedies and procedures may be inspected or copies thereof obtained, and the manner in which interested persons may present their views thereon. Every proposed rule shall be accompanied by a thorough statement identifying and explaining the purpose and support for its adoption. The notice shall also be timely delivered by electronic means (i.e., email notification) to all persons who have made timely request of the corporation in advance for advance electronic notice of any such hearings and timely mailed to all persons who pay the cost of the mailing and who have made timely request of the corporation in advance for advance notice by mail of any such hearings.
(3) Make available for public inspection and copying, at cost, any such proposed resolutions, ordinances, remedies, and procedures at least thirty (30) days prior to the hearing.
(c) The governing bodies shall satisfy all statutory requirements applicable to the respective governing bodies for adoption of ordinances, including notice and public hearing, before adopting any such pro forma resolutions, ordinances, remedies, and procedure, however, adoption by a member governing body of any ordinance or resolution recommended by the board of the public corporation or authorized by this statute shall require an affirmative vote of at least a majority of the members of the council or commission authorized to adopt such ordinances or resolutions in the governing body.
*(Acts 1995, No. 95-775, p. 1835, §4; Act 2014-439, p. 1625, §1.)*
##### **§ 11-89C-5** Exemption of Public Corporation from Fees and Taxes {#sec-11-89c-5 omnilex-key=us-al-statutes--title-11--11-89C-5}
The property and income of any public corporation, and any conveyance, lease, mortgage, deed of trust, or trust indentures by or to the public corporation shall be exempt from all state and local taxation. The public corporation shall not be obligated to pay any fees, taxes, or costs to the judge of probate of any county for its incorporation, the amendment of its certificate of incorporation, or the recording of any document, including, but not limited to, deeds, leases, and easements.
*(Acts 1995, No. 95-775, p. 1835, §5.)*
##### **§ 11-89C-6** Member Governing Bodies Granted Power of Eminent Domain {#sec-11-89c-6 omnilex-key=us-al-statutes--title-11--11-89C-6}
Member governing bodies are granted the power of eminent domain and may exercise the power in the manner provided by law for the purpose of obtaining real property and facilities to implement this chapter.
*(Acts 1995, No. 95-775, p. 1835, §6.)*
##### **§ 11-89C-7** Public Corporation to Be Nonprofit; Dissolution {#sec-11-89c-7 omnilex-key=us-al-statutes--title-11--11-89C-7}
Any public corporation shall be a nonprofit corporation, and no part of its net earnings shall inure to the benefit of any individual, firm, or corporation. In the event of dissolution of a public corporation, if the board of directors of the public corporation determines that sufficient provision has been made for the full payment of the expenses and other obligations, then any net earnings thereafter existing shall be paid to the member governing bodies of the public corporation provided, such amounts so paid out shall only be used by the member governing bodies for storm water purposes and no other purpose.
*(Acts 1995, No. 95-775, p. 1835, §7.)*
##### **§ 11-89C-8** Immunity of Corporation, Board Members, and Employees {#sec-11-89c-8 omnilex-key=us-al-statutes--title-11--11-89C-8}
(a) Any public corporation shall be immune from civil suit for damages to the same extent as a department of state government.
(b) No board member, executive committee member, or individual employee, whether employed directly by a public corporation or on loan, detail, or other form of assignment to a public corporation, shall incur any personal, civil, or criminal liability for the performance of any official duty pursuant to this chapter, except for an act involving willful misconduct, illegal activity, gross or wanton negligence, or bad faith.
(c) While in the performance of any employment, duty, or responsibility for and on behalf of the public corporation, no individual employee, board member, or committee member shall be deemed an agent or employee for purposes of civil liability for claims and damages of any county, municipality, or member governing body.
(d) Official acts of public corporations and individuals pursuant to this chapter shall be deemed a governmental function of the state imposed by federal and state laws for the benefit of the public generally, for which the corporations and individuals are immune, and no member governing body shall be legally responsible for any of their official actions, except for an act involving willful misconduct, willful illegal activity, gross or wanton negligence, or bad faith.
*(Acts 1995, No. 95-775, p. 1835, §8.)*
##### **§ 11-89C-9** Powers of Governing Bodies {#sec-11-89c-9 omnilex-key=us-al-statutes--title-11--11-89C-9}
(a) A governing body shall proceed under this chapter as a participant in the public corporation or individually, to adopt upon reasonable public notice and following public hearing all necessary rules and regulations by resolution or ordinance to implement this chapter and to specifically regulate and control storm water discharges and eliminate the discharge of pollutants to its municipal separate storm sewers. Provided, however, that all discharges originating from any lands or facilities owned or operated by one or more entities under the jurisdiction and supervision of the Alabama Public Service Commission are exempted from regulation under any local storm water management program and shall be regulated exclusively by ADEM. Further, any commission non-jurisdictional electric supplier, as defined by Section 37-4-140, whose service area extends beyond the boundaries of a single municipal or county jurisdiction shall be exempted from the regulation of electrical transmission-related construction activities under any local storm water management program and shall be regulated exclusively by ADEM. The rules and regulations adopted pursuant to this chapter shall be limited to include only those rules, regulations, or aspects that are absolutely required to satisfy the storm water laws. In establishing these rules and regulations, an individual governing body or public corporation shall, to the fullest extent allowed by applicable storm water laws, primarily rely upon ADEM for the enforcement and permitting of discharges to its municipal separate storm sewers from sites required to have an ADEM NPDES permit, rather than subjecting these sites to double enforcement or permitting. Consistent with and in furtherance of these objectives, the governing bodies may do all of the following:
(1) Control by resolution, ordinance, contract, order, or similar means the discharge of pollutants to its municipal separate storm sewers by storm water discharges associated with industrial activity and the quality of storm water discharged from sites of industrial activity.
(2) Prohibit by resolution, ordinance, order, or similar means illicit discharges to its municipal separate storm sewers.
(3) Control by resolution, ordinance, order, or similar means the discharge to its municipal separate storm sewers of spills, dumping, or disposal of materials other than storm water.
(4) Control by interagency or intercooperation agreements among the governing bodies and other entities the discharge of pollutants from one portion of its municipal storm water system to another portion.
(5) Require compliance with conditions in resolutions, ordinances, contracts, or orders.
(6) Enter upon private property under its regulatory jurisdiction upon reasonable notice to the owner and the person in possession thereof and during normal business hours and upon the presentation of appropriate credentials for the purpose of performing investigations regarding the existence and source of contamination and determining from the owner or other appropriate individual the methods which they will employ to stop, neutralize, remove, or otherwise remedy the contamination, and as needed to determine compliance or non-compliance with permit conditions, including any prohibition of illicit discharges to its municipal separate storm sewers. Any officer, employee, or other authorized agent who performs the duties authorized under this section in accordance with provisions hereof shall be immune from arrest and prosecution for trespass while performing any legal duty pursuant to this chapter by presenting identification issued from the county or municipality authorized by the governing bodies.
(b) The governing bodies may develop and adopt common and uniform or partly common and partly uniform resolutions, ordinances, contracts, orders, or similar means in their respective actions and procedures to implement this chapter.
(c) Any governing body may join with any other governing body to establish or participate in or with a public corporation, or with any other public corporation, authority, or district authorized by the Legislature to implement this chapter. In furtherance of this objective, any governing body may perform any of the functions and powers provided in Section 11-89C-4 for public corporations, and any function or eligibility requirement provided or required for joining and participating, and to transfer and convey to the public corporation, with or without consideration, any facilities, real or personal property, money, or thing of value, including the services of employees through loan, detail, or assignment.
(d) Any governing body may establish, levy, and impose by resolution or ordinance, any revenue-raising measure within its jurisdiction, including, but not limited to, fees, charges, or assessments, without any referendum unless required by the Constitution of Alabama of 2022, deemed necessary to implement this chapter or to comply with all provisions of storm water laws, subject to the following:
(1) A governing body shall not establish, levy, or impose fees, charges, or assessments from or against owners or operators of lands or facilities exempted from regulation under any local storm water management program, as set out in Section 11-89C-9(a), owners of greenfields, or owners of agricultural land, pursuant to this subsection.
(2) A governing body may only establish, levy, or impose an annual flat fee, charge, or assessment of no more than ten dollars ($10) from or against owners of residential property, pursuant to this subsection.
(3) A governing body may only establish, levy, or impose an annual fee, charge, or assessment from or against owners of commercial property of no more than one-half of one cent ($0.005) per square foot of commercial space on or within the property, pursuant to this subsection, provided that, regardless of actual square footage of commercial space on or within the property, no such annual fee, charge, or assessment shall exceed three thousand dollars ($3,000). Any such fee, charge, or assessment may be levied and collected in any manner permissible by law. Any governing body may call upon and enter into agreements with the respective tax assessor and tax collector or other public official performing the function of the tax assessor and tax collector to assess and collect any such fees, charges, or assessments.
(e) Any governing body may establish by resolution or ordinance necessary enforcement measures and procedures for the enforcement of rules, regulations, resolutions, ordinances, or orders through actions before a municipal, district or circuit court of competent jurisdiction, including penalties for violations in accordance with Section 11-45-9.
(f) Any governing body may institute a civil suit for damages or injunctive relief, except as limited by Section 11-89C-11 and Section 11-89C-12, in any district or circuit court having jurisdiction for a violation of this chapter. Damages may include all costs, expenses, or other losses resulting directly or indirectly from a violation of any rule, regulation, resolution, ordinance, order, or other provision authorized by this chapter, and may include attorney’s fees, court costs, and trial expenses.
(g) A governing body may do any and all things, whether or not specifically or expressly authorized in this section or chapter, not otherwise prohibited by law, that are necessary and convenient to do individually, and to aid and cooperate with the public corporation or other entity in carrying out the storm water laws and the purposes and intent of this chapter.
*(Acts 1995, No. 95-775, p. 1835, §9; Act 2014-439, p. 1625, §1.)*
##### **§ 11-89C-10** Assessment, Collection, Etc., of Fees, Charges, or Assessments {#sec-11-89c-10 omnilex-key=us-al-statutes--title-11--11-89C-10}
(a) The tax assessor and the tax collector, or other public official performing the functions of the tax assessor and tax collector, of every county in this state shall, upon request, implement procedures necessary and appropriate in order to assess and collect the fees, charges, or assessments levied in accordance with Section 11-89C-9(d) by any governing body or member governing body.
(b) The fees, charges, or assessments shall be a lien upon any land to which it may be levied, and shall be assessed, collected, and enforced as are other ad valorem taxes. Each county collecting such fee, charge, or assessment shall receive a one percent commission on all amounts collected which shall be deposited to the county general fund.
(c) On a quarterly basis not later than the 20th day of January, April, July, and October, every governing body shall remit five percent (5%) of all fees collected pursuant to Section 11-89C-9(d) to the Department of Revenue. The Department of Revenue shall timely transfer ninety-five percent (95%) of the fees it receives to the State Treasury to the credit of ADEM to be used exclusively to pay the costs of performing its duties to carry out applicable programs pursuant to the storm water laws. The Department of Revenue shall retain the remaining five percent (5%) of the fees it receives as an administrative collection allowance.
*(Acts 1995, No. 95-775, p. 1835, §10; Act 2014-439, p. 1625, §1.)*
##### **§ 11-89C-11** Compliance with Conditions and Limitations in NPDES Permit Deemed to Be Compliance with Chapter {#sec-11-89c-11 omnilex-key=us-al-statutes--title-11--11-89C-11}
Notwithstanding any provision to the contrary set forth in this chapter or in any local ordinance or resolution, compliance with the conditions, limitations, and restrictions set forth in an NPDES permit issued by the ADEM or EPA shall be deemed to be compliance for purposes of this chapter and any ordinance or resolution adopted hereunder, and such compliance shall preclude the initiation, commencement, or continuation of any enforcement action authorized under this chapter or any ordinance or resolution.
*(Acts 1995, No. 95-775, p. 1835, §11.)*
##### **§ 11-89C-12** No Enforcement Action by Governing Body Where ADEM Has Taken Certain Actions {#sec-11-89c-12 omnilex-key=us-al-statutes--title-11--11-89C-12}
(a) In no event shall any enforcement action be taken by any governing body against any person for an alleged violation of a local ordinance or resolution pertaining to storm water discharges into a separate storm sewer if any of the following occur:
(1) ADEM has issued a notice of violation with respect to the same alleged violation, and is proceeding with enforcement action;
(2) ADEM has issued an administrative order with respect to the same alleged violation, and is proceeding with enforcement action; or
(3) ADEM has commenced and is proceeding with enforcement action or has completed any other type of administrative or civil action with respect to the same alleged violation.
(b) Any determination or resolution with respect to an alleged violation made by ADEM shall be final, and such alleged violation shall not be the subject of any additional enforcement action by a governing body pursuant to this chapter or any ordinance or resolution adopted thereunder, provided that enforcement action may be pursued for continued or continuing violations.
*(Acts 1995, No. 95-775, p. 1835, §12.)*
##### **§ 11-89C-13** Liberal Construction {#sec-11-89c-13 omnilex-key=us-al-statutes--title-11--11-89C-13}
The purpose of this chapter being remedial in nature, it shall be liberally construed to effect its purpose.
*(Acts 1995, No. 95-775, p. 1835, §13.)*
##### **§ 11-89C-14** Effect of Chapter on State Entities {#sec-11-89c-14 omnilex-key=us-al-statutes--title-11--11-89C-14}
Nothing in this chapter shall be interpreted as negating, destroying, impairing, preempting, superseding, or conflicting with any statutory or common law, or other legal right, duty, power, or authority of ADEM, the Alabama Department of Conservation and Natural Resources, the Alabama Department of Public Health, or any other agency or department or commission of the State of Alabama. This chapter shall be cumulative to and in furtherance of any statutory or common law or other legal right, duty, power, or authority of any governing body.
*(Acts 1995, No. 95-775, p. 1835, §14.)*
##### **§ 11-89C-15** Revision of Regulations and Permits; Compliance with 2014 Amendments {#sec-11-89c-15 omnilex-key=us-al-statutes--title-11--11-89C-15}
(a) No later than April 10, 2015, ADEM shall initiate all actions necessary to revise its applicable regulations to comply with or adhere to the 2014 amendments to this chapter. As soon as practicable following the promulgation of any necessary revisions to its applicable regulations, ADEM shall bring its NPDES permits into conformity with the revised regulatory provisions. ADEM shall timely notify the governing bodies and any existing public corporations formed pursuant to this chapter of the date upon which the agency completed its obligations pursuant to this subsection.
(b) All governing bodies and any existing public corporations formed pursuant to the provisions of this chapter shall complete all actions necessary to comply with or adhere to the 2014 amendments no later than 90 days after the date upon which ADEM fulfilled its obligations pursuant to subsection (a), regardless of when the notice required by subsection (a) is actually received by any governing body or existing public corporation.
*(Act 2014-439, p. 1625, §2.)*
### **Chapter 90** Free Public Libraries
##### **§ 11-90-1** Powers of Counties and Municipalities as to Establishment and Maintenance of Free Public Libraries Generally {#sec-11-90-1 omnilex-key=us-al-statutes--title-11--11-90-1}
The county commissions of the counties of this state and municipalities, through their governing bodies, may establish and maintain or aid in establishing and maintaining free public libraries for the use of the citizens of the respective counties or municipalities, either separately or in connection with public schools, and to that end may accept gifts, donations, and bequests of land, buildings or money therefor and may make appropriations from the county or municipal treasury in support thereof in such sums as they may deem proper.
*(Acts 1920, Ex. Sess., No. 93, p. 146; Code 1923, §1545; Acts 1939, No. 198, p. 350; Code 1940, T. 55, §285.)*
##### **§ 11-90-2** Library Boards - Composition; Appointment and Terms of Members; Vacancies in Office {#sec-11-90-2 omnilex-key=us-al-statutes--title-11--11-90-2}
The government and supervision of such libraries shall be vested in a library board consisting of five members who shall be appointed by the county commission or the governing body of the municipality. The terms of membership on the library board, as first appointed, for one member shall be for one year, for the second member shall be for two years, for the third member shall be for three years, and for the remaining two members the terms shall be for four years. After the first term, all appointments shall be for four years. The county commission or governing body shall fill all vacancies including expired and unexpired terms. Members of the library board shall serve without compensation.
*(Acts 1919, No. 763, p. 1124; Code 1923, §1546; Acts 1939, No. 199, p. 351; Code 1940, T. 55, §286.)*
##### **§ 11-90-2.1** Library Boards - Membership in Class 2 Municipalities {#sec-11-90-2.1 omnilex-key=us-al-statutes--title-11--11-90-2.1}
In any Class 2 municipality, any law to the contrary notwithstanding, the number of members on a public library board organized under state law whose members are appointed by the governing body of the Class 2 municipality shall be the same as the number of members of the governing body of the Class 2 municipality.
*(Act 2010-267, p. 488, §1.)*
##### **§ 11-90-3** Library Boards - Powers and Duties {#sec-11-90-3 omnilex-key=us-al-statutes--title-11--11-90-3}
(a) The library board shall have full power and authority to:
(1) Control the expenditure of all funds received or appropriated for such libraries;
(2) Erect or rent buildings to cost not in excess of the funds available to it;
(3) Purchase books and equipment;
(4) Provide a system of library service to be made easily available to all citizens of the county or municipality through central library, branches, stations, book truck service, or other appropriate means;
(5) Elect a librarian and other employees; and
(6) Manage and control the said library in order to carry out the full intent and purpose of this chapter.
(b) A careful and complete record and set of books shall be kept by the library board, showing the proceedings of their several meetings and the receipts and disbursements in detail of all funds.
(c) In counties where a city having a population of not less than 65,000 already maintains a free public library, a separate county library board need not be appointed, and the county libraries and the appropriations authorized shall be administered by the governing board of such free public library on such terms as may be agreed upon between the county commission and the said governing board.
*(Acts 1919, No. 763, p. 1124; Code 1923, §1547; Acts 1939, No. 200, p. 351; Code 1940, T. 55, §287.)*
##### **§ 11-90-4** Establishment and Maintenance of Joint Library Service {#sec-11-90-4 omnilex-key=us-al-statutes--title-11--11-90-4}
In lieu of establishing or maintaining free public libraries exclusively for a single county or municipality in the manner provided in this chapter, the library board of any county or municipality free public library may contract, in behalf of the political unit represented by such local library board, to and with the library board of another political unit or governmental agency or instrumentality with respect to the establishment or maintenance of joint library service upon such terms as may be agreed upon by the several contracting parties. Where there is no existing public library, the power thus to contract shall vest in the county commission of the county or the governing body of the municipality. Included in the power conferred is the determination of the basis and personnel of representation of the local political units on the joint library board administering the joint library service established under this section. Such board, when appointed, shall have the powers and duties granted by this chapter to county or municipal library boards. County and municipal library boards or joint library boards shall have the power to cooperate with all state and federal agencies and institutions in furtherance of the purpose of this chapter, and all municipal, county and joint library boards shall from time to time submit such records and reports as may be required by the public library service; provided, that nothing in this section shall be so construed as to infringe upon any municipal charter provisions governing the administration of existing free public libraries.
*(Acts 1919, No. 763, p. 1124; Code 1923, §1548; Acts 1939, No. 201, p. 352; Code 1940, T. 55, §288.)*
### **Chapter 91** Group Life, Health, Accident, Etc., Insurance, Etc., for Officers and Employees of Municipalities and Counties
##### **§ 11-91-1** Provision by Governing Bodies of Counties and Municipalities for Group Life, Health, Accident, Etc., Insurance, Etc., for Officers and Employees Authorized {#sec-11-91-1 omnilex-key=us-al-statutes--title-11--11-91-1}
(a) The council, commission, or similar governing body of each municipal corporation, the board of directors of each incorporated municipal board, the county commission of each county, the board of education of each city and the board of education of each county, now existing or established after August 16, 1947, shall have power and authority to contract for and obtain and maintain policies of group life, health, accident, and hospitalization insurance or any one or more of them and shall have power and authority to contract for and obtain and maintain individual annuity contracts, retirement income policies or group annuity contracts to provide a retirement plan for the benefit of such of the officers and employees of such municipality, incorporated municipal board, county, or board as may be determined by such governing body and as shall or may elect to accept the same and who have authorized in writing such governing body to make deductions from their compensation to pay premiums on any such policy or policies if such premiums are payable in whole or in part by such officer or employee.
(b) The term “insurance” as used in this chapter includes the term “annuity,” and the term “policy” includes the term “contract.”
*(Acts 1947, No. 376, p. 267, §1; Acts 1956, 1st Ex. Sess., No. 146, p. 210; Acts 1959, No. 34, p. 439; Acts 1959, No. 171, p. 696; Acts 1961, No. 925, p. 1484.)*
##### **§ 11-91-2** Contracting for and Purchase of Insurance Policies Generally; Requirements as to Amounts of Insurance Under Policies and Coverage of Policies {#sec-11-91-2 omnilex-key=us-al-statutes--title-11--11-91-2}
(a) All such governing bodies shall have authority to contract for and purchase any or all such policies of insurance from any insurer or insurers admitted to transact the business of such insurance in the State of Alabama, and the governing bodies of all state colleges and universities shall have, in addition to powers previously granted, the authority to contract for and purchase any or all such policies of insurance from any nonprofit corporation organized and operated without profit to any private shareholder or individual exclusively for the purpose of aiding or strengthening educational institutions by issuing insurance and annuity contracts only to or for the benefit of such institutions and individuals engaged in the services of such institutions.
(b) The amounts of insurance under any such policy must be based upon some plan precluding individual selection either by such officers and employees or by the governing body.
(c) The coverage of any such policy may be limited to specified classes of officers and employees determined by conditions pertaining to employment, but there shall be no discrimination within any such specified class.
*(Acts 1947, No. 376, p. 267, §2; Acts 1965, 1st Ex. Sess., No. 254, p. 368.)*
##### **§ 11-91-3** Determination of Persons to Be Insured, Amount, Nature, and Kind of Insurance and Manner of Paying Premiums {#sec-11-91-3 omnilex-key=us-al-statutes--title-11--11-91-3}
It is hereby declared to be the intent of the Legislature that any such governing bodies shall have the power and authority to determine in their sole discretion the class or classes of officers or employees who are to be insured under any such policy or policies, the amount, nature, and kind of insurance upon each such officer and employee and class thereof and whether the premium therefor shall be paid in whole or in part by such governing bodies and, if in part, the amount thereof that will be so paid.
*(Acts 1947, No. 376, p. 267, §4.)*
##### **§ 11-91-4** Payment of Premiums {#sec-11-91-4 omnilex-key=us-al-statutes--title-11--11-91-4}
Such governing bodies shall have authority to pay all or such part of the premium for such insurance as such governing bodies shall determine out of any available funds and to deduct that part of the premium, if any, which is to be paid by such officer or employee from the salary or wage of such officer or employee as may be authorized by him and to pay such deductions together with the remainder due of such premium to the insurer issuing such policy in full payment of the premium.
*(Acts 1947, No. 376, p. 267, §3.)*
##### **§ 11-91-5** Return of Premiums {#sec-11-91-5 omnilex-key=us-al-statutes--title-11--11-91-5}
In the event there is a return of premium by any insurance company under any such insurance contract, such return shall be made to the governing body paying such premium.
*(Acts 1947, No. 376, p. 267, §5.)*
##### **§ 11-91-6** Appropriation of Funds for Implementation of Provisions of Chapter {#sec-11-91-6 omnilex-key=us-al-statutes--title-11--11-91-6}
Any such governing bodies may appropriate sufficient funds to carry out the provisions of this chapter.
*(Acts 1947, No. 376, p. 267, §6.)*
##### **§ 11-91-7** Validation, Etc., of Policies Issued Prior to August 16, 1947, and Acts Done and Premiums Paid in Accordance Therewith {#sec-11-91-7 omnilex-key=us-al-statutes--title-11--11-91-7}
All contracts and policies of group life, health, accident, and hospitalization insurance or any one or more of them which have been issued prior to August 16, 1947, to any municipal corporation, county, city or county board of education or any state agency or institution of education, learning, training or correction, or for the delinquent, insane, sick, deaf, dumb, blind, needy, juvenile, or aged for the benefit of its officers and employees or any portion of them are hereby ratified, confirmed, approved, and validated.
All acts done and all premiums paid by any such municipal corporation, county, board, agency or institution in accordance with the terms of any such contract or policy are hereby ratified, confirmed, approved and validated.
*(Acts 1947, No. 377, p. 269, §§1, 2.)*
##### **§ 11-91-8** Health Insurance, Etc., Programs for Retired Employees {#sec-11-91-8 omnilex-key=us-al-statutes--title-11--11-91-8}
The governing body of any county, municipality, or a public agency which is an employer participating in the Employees’ Retirement System pursuant to Section 36-27-6, or in the local government health insurance program of the State Employees’ Insurance Board may, upon a majority vote of its members, elect to allow the retired employees of such a county, municipality, or public agency to participate in any health, hospitalization, surgical, or medical insurance program made available to regular employees, or any related health program for retirees selected by the governing body including the local government health program offered by the State Employees’ Insurance Board. Such a county, municipality, or public agency may pay all, or any part, or none of the cost thereof or the premiums thereon for current or future retirees from any funds in the county, municipal, or public agency treasury not otherwise appropriated.
*(Acts 1986, No. 86-541, p. 1053; Act 99-383, p. 610, §1.)*
### **Chapter 91A** Local Government Health Insurance Program
##### **§ 11-91A-1** Definitions {#sec-11-91a-1 omnilex-key=us-al-statutes--title-11--11-91A-1}
For the purpose of this chapter, the following words have the following meanings:
(1) BOARD. The Local Government Health Insurance Board established in this chapter.
(2) PROGRAM. The Local Government Health Insurance Program as provided by the State Employees’ Insurance Board prior to April 9, 2014, and as transferred and further provided for pursuant to this chapter.
*(Act 2014-401, p. 1473, §1.)*
##### **§ 11-91A-2** Local Government Health Insurance Board; Governance and Administration of Program {#sec-11-91a-2 omnilex-key=us-al-statutes--title-11--11-91A-2}
(a) The Local Government Health Insurance Board shall govern and administer the Local Government Health Insurance Program currently governed and administered by the State Employees’ Insurance Board (SEIB) pursuant to Chapter 29 of Title 36. The transfer of the governance and administration to the board shall take effect at 12:01 a.m. on January 1, 2015, and thereafter the board shall take all control and responsibility for the program under procedures and authority set out in this chapter.
(b) The program governed and administered by the board shall provide a reasonable relationship between the health care benefits to be included and the expected health care expenses to be incurred by affected employees, retirees, and their dependents. The board may establish a fully insured or self-insured health care plan for employees and retirees as defined in this chapter and may adopt rules for the administration of the program. The program shall include appropriate controls to provide reasonable assurance of its stability in future years, which may include, but are not limited to, deductibles, copayments, coinsurance, and other cost containment measures, such as medical management, utilization review, wellness initiatives, and case management, for the purpose of making the benefit plan more cost effective.
(c) Except as otherwise provided herein, the program shall be funded solely from contributions of the employer participants of the program and shall not receive any funding from the state. The governing bodies of entities participating in the program, hereinafter “employer participants,” are authorized to make appropriations to the board as necessary for the proper administration of the program including the payment of premiums as provided in this chapter or under rules adopted by the board.
(d) Notwithstanding Section 36-29-14, the following entities and organizations shall be employer participants in the program:
(1) All entities and organizations which are active participants in good standing in the Local Government Health Insurance Program governed and administered by SEIB immediately prior to 12:01 a.m. on January 1, 2015.
(2) Subject to acceptance by the board, any of the following entities or organizations not already employer participants in the program pursuant to subdivision (1) which by resolution legally conforming to rules prescribed by the board elects to have its elected officials, full-time employees, and retired employees become eligible for health care coverage under the program: Any county, any municipality, any municipal foundation, any fire or water district, authority, or cooperative, any regional planning and development commission established pursuant to Sections 11-85-50 through 11-85-73; the Association of County Commissions of Alabama; the Alabama League of Municipalities; the Alabama Retired State Employees’ Association; the Alabama State Employees Credit Union; Easter Seals Alabama; Alabama State University; the Alabama Rural Water Association; Rainbow Omega, Incorporated; The Arc of Alabama, Incorporated, and any of the affiliated local chapters of The Arc of Alabama, Incorporated; United Ways of Alabama and its member United Ways; the Alabama Network of Children’s Advocacy Centers; and its member Children’s Advocacy Centers; the Care Assurance System for the Aging and Homebound and its affiliated local centers; any railroad authority organized pursuant to Chapter 13 of Title 37; or any solid waste disposal authority organized pursuant to Chapter 89A of Title 11.
(e) The agreement of an employer participant to have its full-time employees, elected officials, retirees, and dependents covered under the program may be revoked only if the employer participant, by resolution of its governing body, signifies its intention and desire to withdraw from the program. Any resolution to withdraw shall be delivered to the board by certified mail no later than six months prior to the effective date of withdrawal. Any employer participant that withdraws from participation in the program shall be responsible for paying any claims incurred prior to the date of withdrawal that are not reported and paid by the date of withdrawal and, on and after the date of withdrawal, shall be liable for interest accrued at a rate of one and one-half percent per month on any monies due the board which are over 30 days past due.
(f) Any organization that provides or administers health care benefits through or on behalf of the board shall not provide or administer health care benefits to any entity that withdraws from the program for a period of two years from the effective date of withdrawal.
(g) Any entities or organizations added to the Local Government Health Insurance Program on or after June 1, 2018, which were not identified as employer participants eligible for participation in the Local Government Health Insurance Program pursuant to subdivisions (1) and (2) of subsection (d) prior to June 1, 2018, shall be treated as separate entities and their premiums shall be established independently from employer participants that entered the program prior to this date.
(h) The board shall adopt rules as may be necessary for the effective administration of this section.
*(Act 2014-401, p. 1473, §2; Act 2016-348, p. 851, §1; Act 2018-124, §1.)*
##### **§ 11-91A-3** Employee, Retiree, and Dependent Coverage; Premiums; Summary Documents {#sec-11-91a-3 omnilex-key=us-al-statutes--title-11--11-91A-3}
(a) All full-time employees, elected officials, and retirees of employer participants who are eligible for health care benefits for themselves or their dependents under the provisions of the program shall be entitled to coverage and benefits as designated by the board.
(b) Each employee and retiree shall be entitled to have his or her spouse and dependent children, as those persons are defined by the board, included in the coverage under rules and regulations promulgated by the board upon agreeing to pay the employee’s contribution of the health care premium for the dependents. The board shall adopt rules and regulations governing the discontinuance and resumption of coverage for dependents by the employees and retirees. The board shall adopt rules governing the discontinuance and resumption of coverage for dependents by the employees and retirees.
(c) The board shall establish premiums required for employee, retiree, and dependent coverage to be paid by each employer participant in the program pursuant to rules adopted by the board. Employer participants shall provide to the board any information deemed necessary by the board for the determination of premium or other program matters. Employer participants shall submit all premium payments and any other information required pursuant to rules adopted by the board. Any portion of the premium to be paid for the full-time employees, elected officials, and retirees and their dependents pursuant to this section may be paid by the employer participant.
(d) During any period in which an employee or an employee’s dependents are covered under this chapter, the employee’s contribution to the health care premium may be deducted from payroll by his or her employer on a pretax basis as permitted under Section 125 of the federal Internal Revenue Code or its successor.
(e) Each employee and retiree who is covered under the program shall be provided a summary document setting forth the benefits to which the employee, retiree, and dependents are entitled, to whom such benefits shall be payable, to whom claims shall be submitted, and a summary of the provisions of the program as they affect the employee, retiree, and dependents. The summary document may be provided in electronic format at the discretion of the board.
*(Act 2014-401, p. 1473, §3.)*
##### **§ 11-91A-4** Transfer of Responsibility and Control of Program; Membership of Board {#sec-11-91a-4 omnilex-key=us-al-statutes--title-11--11-91A-4}
(a) Notwithstanding the provisions of Section 36-29-14, the board shall have exclusive responsibility and control over the program as of 12:01 a.m. on January 1, 2015. In order to make proper preparation to assume all responsibility and control for the program effective at 12:01 a.m. on January 1, 2015, the board shall be in place no later than September 1, 2014, and shall hold its organizational meeting no later than October 1, 2014. The SEIB shall be responsible for setting and conducting the initial board elections required under subsection (c) and for ensuring that all appointing authorities for board appointments as set out in subsection (c) are notified of appointments to be made pursuant to this chapter. In order to ensure that all board members are appointed or elected no later than September 1, 2014, all appointments shall be made and all elections conducted no later than August 15, 2014. All elections held after January 1, 2015, shall be conducted by the chief executive officer of the board under rules promulgated by the board.
(b) The board shall consist of members appointed or elected as set out in subsection (c) who shall serve a three-year term expiring on December 31 of the third year; provided that, in order to establish staggered terms for board members, the initial terms of office for board members shall be as set out in subsection (c). All members of the board may be re-elected or re-appointed to successive terms.
(c) The membership of the board shall consist of the following:
(1) Three members who are representatives of municipal government from municipal employer participants appointed by the Alabama League of Municipalities. Initial appointments shall be for staggered terms with one member appointed to an initial term expiring on December 31, 2015; one member appointed to an initial term expiring on December 31, 2016; and one member appointed to an initial term expiring on December 31, 2017.
(2) Three members who are representatives of county government from county employer participants appointed by the Association of County Commissions of Alabama. Initial appointments shall be for staggered terms with one member appointed to an initial term expiring on December 31, 2015; one member appointed to an initial term expiring on December 31, 2016; and one member appointed to an initial term expiring on December 31, 2017.
(3) One member who is a retired employee participating in the program appointed by the Alabama Retired Employees’ Association. The member appointed pursuant to this subdivision shall serve a three-year term, provided that the retiree first appointed shall serve an initial term expiring on December 31, 2015.
(4) One member who is an active full-time employee of municipal or county government with at least 10 years of creditable coverage in the program who is elected by the full-time employees of municipalities and counties participating in the program pursuant to procedures set out in subsection (a). The member elected pursuant to this subdivision shall serve a three-year term, provided that the member first elected shall serve an initial term expiring on December 31, 2016.
(5) One member who is either an active full-time employee of an employer participant that is not a county or municipality with at least 10 years of creditable coverage in the program or a retiree participating in the program. This member shall be elected by active full-time employees of an employer participant that is not a county or municipality and retirees participating in the program pursuant to procedures set out in subsection (a). The member elected pursuant to this subdivision shall serve a three-year term, with the initial term of the member first elected expiring on December 31, 2017.
(d) Any vacancy of an elected board member prior to the expiration of his or her term shall be filled for the remainder of the term by special election provided there are at least 12 months remaining in the term. The special election shall be conducted by the chief executive officer of the board under rules and regulations promulgated by the board. Any vacancy of an appointed board member shall be filled by the original appointing authority for the remainder of the unexpired term.
*(Act 2014-401, p. 1473, §4.)*
##### **§ 11-91A-5** Meetings; Quorum; Reimbursement of Expenses; Board as Body Corporate {#sec-11-91a-5 omnilex-key=us-al-statutes--title-11--11-91A-5}
(a) The organizational meeting of the board shall be set no later than October 1, 2014, by the Chief Executive Officer of the SEIB. The first order of business at the organizational meeting shall be the election of a chair and vice chair by majority vote of the membership of the board. The Chief Executive Officer of the SEIB shall call the meeting to order and preside only until the chair and vice chair are elected. Thereafter, the board shall annually elect a chair and vice chair by majority vote of the membership of the board, provided that any chair or vice chair may be re-elected and serve successive terms as chair or vice chair.
(b) A majority of the members of the board shall constitute a quorum for the transaction of business and each member shall be entitled to one vote on all matters. Except where otherwise provided, a majority vote of the board members present shall be necessary for a decision by the board. The board shall keep a record of all of its proceedings which shall be open to public inspection and shall at all times comply with Alabama’s Open Meetings Law, Chapter 25A of Title 36.
(c) Board members shall serve without compensation for their services, but shall be reimbursed from the program for all necessary expenses that they may incur through service on the board.
(d) The board shall be a state agency and shall constitute a body corporate for the purpose of providing for and participating in the management of the program. The board shall have all powers and privileges of a corporation and may enforce all existing rights and claims, and hold its cash and securities and other property in trust for the purpose for which received; provided, however, the board, its officers, and its employees shall be immune from suit to the same extent as the state, its agencies, officers, and employees.
(e) The board shall be exempt from payment of all fees and all taxes levied by the State of Alabama or any of its subdivisions.
*(Act 2014-401, p. 1473, §5.)*
##### **§ 11-91A-6** Property Rights and Contractual Obligations of Board; Costs of Software and Property; Assignment of Contracts {#sec-11-91a-6 omnilex-key=us-al-statutes--title-11--11-91A-6}
(a) Except as otherwise provided in this chapter, the SEIB shall provide for the administration of the program as provided in Chapter 29 of Title 36, until the transfer of the governance and administration of the program takes place as provided herein. Effective at 12:01 a.m. on January 1, 2015, all property rights and contractual obligations of the SEIB related to the administration and governance of the program shall be transferred to the board. The SEIB and its employees shall fully cooperate with the board in the transfer of the governance and administration of the program both prior to and after January 1, 2015, including, but not limited to, providing the board with all the software necessary to properly administer the program beginning on January 1, 2015. Additionally, in order to affect an orderly transfer, the administrator of the SEIB shall serve as the chief executive officer of the board for a period of not less than 18 months beginning on January 1, 2015, and may thereafter be retained as chief executive officer as provided in subsection (h) of Section 11-91A-7.
(b) The board shall compensate the SEIB for the cost of any software or other property transferred from the SEIB based upon the fair market value of such software or other property at the time of transfer determined by mutual agreement.
(c) Any contracts executed between the SEIB and a contractor may be assigned to the board upon mutual consent of all parties.
*(Act 2014-401, p. 1473, §6.)*
##### **§ 11-91A-7** Jurisdiction of Board; Funding; Powers of Board {#sec-11-91a-7 omnilex-key=us-al-statutes--title-11--11-91A-7}
The board shall have full, complete, and exclusive jurisdiction over the program and shall allocate funds from its treasury for the fulfillment and accomplishment of its duties and responsibilities in a manner as may be necessary and appropriate to carry out the purposes of this chapter. The board shall have the general powers and authority granted under the laws of this state for health insurers, and in addition thereto, the specific authority to do all of the following:
(a) Subject to compliance with Section 11-91A-8 where applicable, execute a contract or contracts to provide for the administration of the program in accordance with this chapter. The contract or contracts may be executed with one or more agencies or corporations licensed to transact or administer group health care business in this state with similar plans of the state for the joint performance of common administrative functions.
(b) Establish, and modify from time to time as appropriate, rates, rate schedules, rate adjustments, expense allowances, claim reserve formulas, and any other actuarial function necessary and appropriate for the operation of the program. Rates and rate schedules may be adjusted for appropriate factors such as age, family size, smokers and users of tobacco products, preventive care and wellness care participation, and any such other categories of risk that the board shall approve.
(c) Appoint appropriate legal, actuarial, and other committees as necessary to provide technical or program assistance to the board.
(d) Establish and maintain at a lawful depository or depositories in the State of Alabama as it shall select a Local Government Health Insurance Fund, composed of the money or moneys which may come into its hands from premiums, fees, assessments, grants, loans, or other sources, either public or private. The funds shall be used by the board to pay the administrative expenses of the board, pay medical claims costs of the program, and maintain a reserve fund. No moneys received or held by the board shall be co-mingled with any other funds of the state or any governmental entity.
(e) Borrow money to effect the purposes of this chapter as determined appropriate by the board.
(f) Take legal action as necessary, including, but not limited to, bringing action to do any of the following:
(1) Recover premiums, fees, assessments, and penalties due the board.
(2) Avoid the payment of improper claims against the board or the coverage provided by or through the board.
(3) Recover any amounts erroneously or improperly paid by the board.
(4) Recover any amounts paid by the board as a result of mistake of fact or law.
(5) Recover other amounts due the board.
(g) Promulgate rules concerning the selection of benefits offered and any other matters which in the opinion of the board may be required for the effective administration of this chapter.
(h) Subject to subsection (a) of Section 11-91A-6, employ or otherwise appoint a chief executive officer to serve as manager of the program under the direction and supervision of the board and as required under this chapter. The board may appoint the chief executive officer of the SEIB to continue as chief executive officer after the initial 18 months of service as provided in subsection (a) of Section 11-91A-6 upon mutual consent of the board and the SEIB.
(i) Employ and fix the compensation of employees, consultants, actuaries, and other personnel as may be necessary for carrying out the purposes and provisions of this chapter. All compensation shall be paid from the funds of the board. Employees of the board shall not be subject to the state Merit System Act; provided, however, the board shall offer its employees benefits equivalent to those offered to employees of the State of Alabama, including retirement, medical and dental care, and workers’ compensation plans. The employees of the board are eligible and may elect to participate in the state health care plan under Chapter 29 of Title 36, and in the State Employees’ Retirement System under Chapter 27 of Title 36.
(j) Acquire property by purchase or lease.
(k) Provide for reinsurance of risks incurred by the program.
(l)(1) Provide additional types of optional health care coverages or services including, but not limited to, providing for the administration of the payment of health care services on behalf of employer participants whose eligible employees or officials suffer on-the-job injury, under such terms and conditions as the board shall determine.
(2) Participation in any service established for the administration of the payment of health care services on behalf of an employer participant relating to on-the-job injury shall be at the sole option of the employer participant. Refusal to participate by an employer participant shall not affect eligibility for the program or factor into the establishment of rates as authorized in subsection (b).
(m) Adopt bylaws, policies, and procedures as may be necessary or convenient for the implementation of this chapter and the operations of the program.
*(Act 2014-401, p. 1473, §7; Act 2018-471, §1.)*
##### **§ 11-91A-8** Awarding of Contracts {#sec-11-91a-8 omnilex-key=us-al-statutes--title-11--11-91A-8}
(a) Before entering into any contract or contracts for a carrier or third party administrator, the board shall solicit competitive proposals from companies or agencies qualified to administer or offer plans for group health care coverage. The board shall carefully evaluate all proposals received and award the contract or contracts to the most qualified company or agency taking into consideration all relevant factors, including, but not limited to, the following: The benefits offered; the proposed administrative costs and the costs to be incurred by the employer participant and its employees, retirees, and dependents; and the experience of the companies or agencies submitting proposals. In evaluating these factors, the board may employ the services of impartial professional insurance analysts or actuaries. The contract or contracts executed by the board with the selected carrier or third party administrator shall be a contract to offer coverage to all employees and retirees of employer participants subject to this chapter.
(b) The board may at the end of any contract period discontinue any contract or contracts it has executed with any carrier or third party administrator and replace the carrier or administrator with a contract or contracts with any other carrier or third party administrator meeting the requirements of this chapter.
*(Act 2014-401, p. 1473, §8.)*
##### **§ 11-91A-9** Discretion of Board; Review of Claims; Appeals {#sec-11-91a-9 omnilex-key=us-al-statutes--title-11--11-91A-9}
The board shall have complete discretion and final authority to interpret the terms and conditions of the program. The program shall require adequate notice in writing to any participant whose claim for benefits under the program has been denied, setting forth the specific reasons for such denial. Any participant whose claim for benefits has been denied shall be afforded a reasonable opportunity for a full and fair review by the claims administrator upon the written request made within 60 days of the date of denial and setting forth the specific reasons the participant believes the claim should be approved. The claims administrator shall provide a written final determination of the claim upon completion of the review. Appeal of a final decision made by the claims administrator shall be by legal action filed in the Circuit Court of Montgomery County.
*(Act 2014-401, p. 1473, §9.)*
##### **§ 11-91A-10** Recordkeeping; Audits {#sec-11-91a-10 omnilex-key=us-al-statutes--title-11--11-91A-10}
The board shall maintain books of account covering revenues derived by it from all sources, together with accounts of all expenses incurred in connection with the carrying out by the board of its purposes as established by and under the terms of this chapter. The board may obtain the services of a certified public accountant for annual audits in lieu of audits conducted by the Department of Examiners of Public Accounts. All such audits shall be filed with the Department of Examiners of Public Accounts and open for public inspection.
*(Act 2014-401, p. 1473, §10.)*
### **Chapter 92** Industrial Parks
##### **§ 11-92-1** Definitions {#sec-11-92-1 omnilex-key=us-al-statutes--title-11--11-92-1}
(a) The following definitions shall be applicable to this chapter, unless a different meaning clearly appears from the context:
(1) COUNTY. Each county in the state.
(2) GOVERNING BODY. The county commission or the board of commissioners, council, or other governing body of a municipality.
(3) INDUSTRIAL PARK. Land, with such improvements as are authorized by this chapter, which has been determined by a governing body to be suitable for use by more than one industrial or commercial enterprise for industrial or commercial purposes and has been acquired or is proposed to be acquired by a county or a municipality or any combination of counties and municipalities and held for the purpose of transferring it to one or more persons for use for industrial or commercial purposes.
(4) MUNICIPALITY. A municipal corporation in the state.
(5) PARTICIPANT. With respect to the acquisition and development of an industrial park, a county or municipality which has financed or by resolution has declared its intention to finance the acquisition and development of such industrial park.
(6) PERSON. Any individual, firm, partnership, public or private corporation or any other entity having the power to acquire title to land.
(7) STATE. The State of Alabama.
(8) WARRANTS. Warrants which have been or are proposed to be issued by a county or a municipality pursuant to the provisions of this chapter.
(b) In construing this chapter, the use of the singular shall be read to include the plural and the plural to include the singular, except where a contrary intent is clearly manifested.
*(Acts 1977, No. 694, p. 1223, §2.)*
##### **§ 11-92-2** Legislative Intent; Construction of Chapter Generally {#sec-11-92-2 omnilex-key=us-al-statutes--title-11--11-92-2}
(a) It is the intention of the Legislature by the passage of this chapter to authorize each county and each municipality in the state, acting separately or jointly, within the restrictions of this chapter, to acquire, by purchase or otherwise, one or more industrial or commercial parks, as defined in Section 11-92-1, to develop such parks, to finance such acquisition and development by the sale and issuance of interest-bearing general obligation warrants of such counties or municipalities, and to sell such parks.
(b) This chapter shall be liberally construed in conformity with this intention.
*(Acts 1977, No. 694, p. 1223, §1.)*
##### **§ 11-92-3** Powers of Counties and Municipalities as to Acquisition, Development, Etc., of Parks Generally {#sec-11-92-3 omnilex-key=us-al-statutes--title-11--11-92-3}
(a) In addition to all existing powers, a county or municipality shall have the power, by itself or together with other participants, to acquire, by purchase, gift, exchange, lease or otherwise, and to develop and dispose of one or more parcels of land as an industrial park upon compliance with the procedure set out in Section 11-92-4.
(b) This power shall be subject to the following restrictions:
(1) No county or municipality may acquire real property for an industrial park any part of which is located in another county which is not a participant or which is within the corporate limits of a municipality which is not a participant unless the governing body of that other county or municipality shall have adopted a resolution consenting to the acquisition of the industrial park therein;
(2) No real property may be acquired or developed by a municipality as an industrial park if any part of it is located more than 25 miles from the corporate limits of that municipality;
(3) No real property may be acquired or developed by a county any part of which is located more than three miles from the boundary of the county; and
(4) The development of one or more parcels of land as a site for an industrial park shall include the provision for water, sanitary sewage disposal, drainage, electric power, gas, communications, access, and other similar facilities which are incidental to the use of the land as an industrial park. Development shall not include the provision of structures or buildings except those related to the above described facilities.
*(Acts 1977, No. 694, p. 1223, §3.)*
##### **§ 11-92-4** Requirements as to Acquisition and Development of Parks {#sec-11-92-4 omnilex-key=us-al-statutes--title-11--11-92-4}
The following procedure shall be followed in acquiring and developing an industrial park:
(1) The governing body of any county or municipality shall determine by the adoption of a resolution duly entered on its minutes that it shall become a participant or act alone in the acquisition and development of an industrial park;
(2) Any other county or municipality proposing to join as a participant must adopt a similar resolution so stating within 90 days of the adoption of the resolution referred to in subdivision (1) of this section;
(3) Such resolutions must contain the following:
a. A legal description of the land proposed to be acquired, having sufficient specificity to satisfy the requirements for a deed, and a finding that it is suitable for an industrial park;
b. The price, if any, for which the land will be acquired;
c. The estimated cost of developing the land as an industrial park and an outline of the plans for accomplishing such development;
d. The portion of the total of the amounts stated pursuant to paragraphs b and c of this subdivision that the county or municipality adopting such resolution is willing to contribute;
e. A finding that the economy and the public welfare of the area served by the county or municipality adopting the resolution will be benefitted by the acquisition and development of the industrial park and that it is wise, expedient, necessary, or advisable to acquire and develop such industrial park;
f. A finding that there are sufficient moneys available, whether or not by the issuance of warrants, to finance the county’s or municipality’s share of the cost of the industrial park; and
g. The designation of a person to act for the governing body in the acquisition and development of the industrial park and authorization for such person to approve and sign for the county or municipality any contracts necessary within the scope of the aforesaid plans for such acquisition and development.
(4) Such resolution shall be published in a newspaper of general circulation in the county affected for three successive weeks and posted in a publicly accessible place for three successive weeks prior to the execution of said resolution;
(5) Any contracts relating to acquisition or development of an industrial park shall be signed on behalf of all participants; and
(6) Title to each parcel of land acquired shall be taken by all participants in common and may be in equal shares or in shares proportional to the financial contribution of each participant or in shares determined pursuant to some other formula determined by the participants.
*(Acts 1977, No. 694, p. 1223, §4.)*
##### **§ 11-92-5** Sale, Etc., by Municipalities or Counties of Property or Interests in Property; Ownership of Parks by Municipalities or Counties {#sec-11-92-5 omnilex-key=us-al-statutes--title-11--11-92-5}
(a) Any municipality or county shall have the power to sell and grant options to acquire any property or interest in property acquired under the provisions of this chapter.
(b) The sales price of any part of an industrial park shall be no less than the greater of the consideration for purchase paid by the participants plus the cost of all improvements made in the development of the property and the costs of financing the acquisition and development, other than interest on any warrants, prorated on the basis of the acreage involved, or the then fair market value of the property to be sold as determined by an appraisal filed with each participant by a real estate appraiser whose appraisals are accepted by local lending institutions.
(c) It is not the intention of this chapter to authorize any county or municipality to take permanent title to an industrial park, but only for the purpose of eventual transfer to a private industrial or commercial enterprise or a public entity involved in industrial or commercial development.
*(Acts 1977, No. 694, p. 1223, §5.)*
##### **§ 11-92-6** Warrants - Form, Terms, Denominations, Etc.; Liability of Counties or Municipalities Upon Warrants; Disposition of Proceeds from Sale {#sec-11-92-6 omnilex-key=us-al-statutes--title-11--11-92-6}
(a) Each participant shall have the power to sell and issue interest-bearing warrants for the purpose of paying the cost or its share of the costs of acquiring and developing industrial parks. Any warrants issued under the provisions of this chapter may be in such denominations, may have such maturity or maturities, not exceeding 30 years from their date, may bear interest from their date at such rate or rates, payable at such times, may be payable at such places within or without the state, may be sold at such times and in such manner and may contain such terms not in conflict with the provisions of this chapter, all as the governing body of the participant may provide in the proceedings wherein the warrants are authorized to be issued.
(b) All such warrants shall evidence general obligation indebtedness of the county or municipality by which they are issued and the full faith and credit of the county or municipality shall be irrevocably pledged for the payment of the principal of and interest on the warrants.
(c) The proceeds of the sale of any such warrants shall be used solely for the purpose for which they are authorized to be issued, including the payment of any expenses incurred in connection with their issuance. The proceeds from the sale of any land in an industrial park financed by the sale of warrants issued under this chapter shall be distributed to the participants according to the share of the title held by each as determined pursuant to subdivision (6) of Section 11-92-4 and shall be pledged and applied to the payment of such warrants.
*(Acts 1977, No. 694, p. 1223, §6.)*
##### **§ 11-92-7** Warrants - Security for Payment of Principal and Interest {#sec-11-92-7 omnilex-key=us-al-statutes--title-11--11-92-7}
(a) The governing body of any participant may assign and specially pledge any tax or any part thereof for the payment of the principal of and interest on warrants.
(b) To the extent necessary to make the payment of the principal of and interest on the warrants, any tax or sales proceeds so pledged shall constitute a trust fund which shall be impressed with a lien in favor of the holders of such warrants. If, pursuant to this section, more than one pledge is made of any tax, then the pledges shall take precedence in the order that they are made, unless the proceedings making the pledge shall provide that it shall be on a parity or subordinate to a subsequent pledge. All warrants benefitting from a pledge shall constitute preferred claims against the tax or sales proceeds pledged, subject to any prior pledges existing at the time of issuance of the warrants, and shall have preference over claims incurred by the county or municipality for any other purpose.
*(Acts 1977, No. 694, p. 1223, §8.)*
##### **§ 11-92-8** Refunding Warrants {#sec-11-92-8 omnilex-key=us-al-statutes--title-11--11-92-8}
Each participant may issue refunding warrants, either by sale or by exchange, for the purpose of refunding a like or greater principal amount of warrants then outstanding and paying any premium and expenses necessary to be paid to redeem the outstanding warrants. The provisions of this chapter applicable to warrants shall also be applicable to any such refunding warrants.
*(Acts 1977, No. 694, p. 1223, §7.)*
##### **§ 11-92-9** Investment in Warrants by Trustees, Executors, Etc {#sec-11-92-9 omnilex-key=us-al-statutes--title-11--11-92-9}
A trustee, executor, administrator, guardian, or other fiduciary may invest trust funds in warrants issued under the provisions of this chapter unless otherwise directed by a court having jurisdiction or by the document that is the source of authority.
*(Acts 1977, No. 694, p. 1223, §9.)*
##### **§ 11-92-10** Issuance of Warrants and Interest Coupons Deemed Audit and Allowance of Claims by Counties; Effect Thereof {#sec-11-92-10 omnilex-key=us-al-statutes--title-11--11-92-10}
The issuance by a county of warrants and the interest coupons applicable thereto pursuant to the provisions of this chapter shall be deemed to constitute an audit and allowance by the county of a claim in the aggregate principal amount of such warrants and interest coupons against the county and against any tax proceeds and the sales proceeds or either thereof pledged for the payment of such warrants pursuant to the provisions of this chapter. No proof of registration or other audit or allowance of such claim shall be required and such warrants and interest coupons shall, from the date of their lawful issuance, be deemed to be allowed claims against the county by which they were issued and against any tax proceeds and the sales proceeds or either so pledged therefor.
*(Acts 1977, No. 694, p. 1223, §10.)*
##### **§ 11-92-11** Applicability and Effect of Other Provisions of Law {#sec-11-92-11 omnilex-key=us-al-statutes--title-11--11-92-11}
Insofar as the provisions of this chapter may be inconsistent with the provisions of any other law, the provisions of this chapter shall control, it being specifically declared that the provisions of Section 11-8-10 shall not be applicable to the warrants issued under the provisions of this chapter.
*(Acts 1977, No. 694, p. 1223, §11.)*
### **Chapter 92A** County Industrial Development Authorities
##### **§ 11-92A-1** Definitions {#sec-11-92a-1 omnilex-key=us-al-statutes--title-11--11-92A-1}
When used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) ARTICLES. The articles of incorporation or articles of reincorporation of an authority.
(2) AUTHORITY. A public corporation incorporated and reincorporated pursuant to the provisions of this chapter.
(3) AUTHORIZED OPERATIONAL AREA. The county or counties in which the authority has been or is proposed to be authorized to operate, as designated in its articles of incorporation in accordance with the provisions of this chapter. If an authority does not designate an authorized operational area, then such authority’s authorized operational area shall be deemed for all purposes to be solely the county of incorporation of the authority.
(4) BOARD OF DIRECTORS. The board of directors of an authority.
(5) BOND OR BONDS. A bond or bonds issued under the provisions of this chapter.
(6) COUNTY OF INCORPORATION. The county of the state in which an authority has been or is proposed to be incorporated or reincorporated.
(7) DIRECTORS. The members of the board of directors.
(8) INCORPORATORS. The natural persons filing a written application for the incorporation or reincorporation of an authority pursuant to the provisions of this chapter.
(9) PERSON. Unless limited to a natural person by the context in which it is used, any person, including, without limitation, a private firm, a private association, a corporation, and a public person.
(10) PROBATE JUDGE. The judge of probate of the county of incorporation of an authority.
(11) PROJECT. Any land and any buildings or other improvements thereon, and all real, personal, and mixed properties deemed by an authority to be necessary or appropriate in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more thereof:
a. Any industry for the manufacturing, processing, cultivating, or assembling of any agricultural or manufactured products;
b. Any commercial enterprise involved in storing, warehousing, distributing, or selling products of agriculture, mining, or industry (but not including facilities designed for the sale or distribution to the public of electricity, gas, water, or telephone or other services commonly classified as public utilities);
c. Any facility classified as “industrial” within the Standard Industrial Classification (SIC) codes now or hereafter in effect;
d. Any enterprise for the purpose of research in connection with:
1. Any of the foregoing;
2. The development of new products or new processes;
3. The improvement of existing products or known processes;
4. The development of facilities for the exploration of outer space or promotion of the national defense;
e. Office facilities for any of the foregoing, regardless of whether such facilities are adjacent to or on a site contiguous to land used for any of the foregoing purposes, including national, regional, or divisional offices for the management or supervision of any of the operations described in this subparagraph; or
f. Facilities of any type for or useful in the control, reduction, abatement or prevention of air, noise, water, or general environmental pollution, including, but not limited to, any air pollution control facility, noise abatement or reduction facility, water management facility, water purification facility, waste water collection system, waste water treatment works or solid waste disposal facility.
The determination of an authority that a proposed use is within this definition shall be conclusive.
(12) PUBLIC PERSON. The state and any county, city, town, public corporation, agency, subdivision thereof, instrumentality thereof, or similar person.
(13) STATE. The State of Alabama.
*(Acts 1989, No. 89-404, p. 802, §1; Act 99-350, p. 513, §1.)*
##### **§ 11-92A-2** Legislative Findings of Fact and Declaration of Intent; Construction of Article {#sec-11-92a-2 omnilex-key=us-al-statutes--title-11--11-92A-2}
(a) The Legislature hereby makes the following findings of fact and declares its intent to be as follows: In recent years changes have taken place in the economy of the state that have had a far-reaching effect on the welfare of its citizens. The agrarian economy that once prevailed in the state and provided the principal means of livelihood for most of its citizens has proven inadequate to provide employment for the state’s growing population. The advent of mechanized and scientific farming methods has reduced greatly the number of persons required to obtain increased yields of agricultural products from land under cultivation. There has been a correspondingly greater dependency upon industrial development as the bulwark of the economy of the state. It is therefore appropriate and necessary that measures be taken to secure to the citizens of the state the benefits of a strengthening economy resulting from increased industrial development. Among these benefits are diversification of available job opportunities, higher salaries, better working conditions, lower consumer prices for industrial products, conservation and efficient use of natural resources, and maximum utilization of technical skills possessed by the citizens of the state. The police power of the state casts upon the Legislature the peculiar function of ascertaining and determining when the welfare of the people needs its exercise. The public interest lies in the promotion of industry, and the welfare of the people is so inextricably intertwined with industry and industrial development as to make its well-being a matter of governmental concern. The solicitation of industries and other concerns producing additional jobs and strengthening the economy of the state has become increasingly competitive, with the state being required to compete not only with other states, but with nations other than the United States of America. Therefore, it is imperative that public corporations be incorporated or reincorporated with authorities and powers sufficient, to the greatest extent possible, to permit the inducement of such enterprises to locate, expand, improve their operations, or remain in the state. It is the further intention of the Legislature that the public corporations authorized by this chapter shall have discretion as to the manner of expending funds at their disposal for the purpose of promoting industrial development, subject to the limitations detailed in this chapter.
(b) Questions have been raised as to the status of certain local industrial development authorities and boards located in the state. It is the intention of the Legislature by the passage of this chapter to exercise its police power to authorize the formation or retroactive validation of independent public corporations having as their general purposes the promotion of industrial development and having the power to issue bonds.
(c) This chapter shall be liberally construed in accordance with the foregoing findings of fact and declaration of intent.
*(Acts 1989, No. 89-404, p. 802, §2.)*
##### **§ 11-92A-3** Incorporation of Authority {#sec-11-92a-3 omnilex-key=us-al-statutes--title-11--11-92A-3}
(a) Any number of natural persons, not less than three, residing in any county or counties within the proposed authority’s authorized operational area may incorporate an authority as provided in this chapter. To do so, the incorporators shall first file a written application in accordance with the provisions of this section and Section 11-92A-4.
(b) The authorized operational area of an authority may include any portion of one but not more than five counties. If more than one county is included in an authority’s authorized operational area, each county, or portion thereof, included therein shall be contiguous with at least one other county, or portion thereof, included therein so that the authority’s authorized operational area encompasses a unified territory.
*(Acts 1989, No. 89-404, p. 802, §3; Act 99-350, p. 513, §2.)*
##### **§ 11-92A-4** Application for Incorporation {#sec-11-92a-4 omnilex-key=us-al-statutes--title-11--11-92A-4}
(a) The written application of the incorporators shall be filed with the probate judge, which application shall:
(1) Contain a statement that the incorporators propose to incorporate an authority pursuant to the provisions of this chapter;
(2) State the authorized operational area of the proposed authority;
(3) State that each of the incorporators is a resident of a county within the authorized operational area of the proposed authority; and
(4) Request that each governing body of each county within the authorized operational area of the proposed authority adopt a resolution declaring that it is expedient that the proposed authority be formed, approving the written application, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with the provisions of this chapter.
(b) Such application shall be accompanied by the form of articles of incorporation of the proposed authority.
(c) As promptly as may be practicable after the filing of the application with the judge of probate, the governing body of each county within the authorized operational area of the proposed authority shall review the contents of the application and the accompanying form of articles and shall adopt a resolution either:
(1) Denying the application, or
(2) Declaring that it is expedient that the proposed authority be formed, approving the form of its articles, and authorizing the incorporators to proceed to form the proposed authority by filing for record pursuant to subsection (c) of Section 11-92A-5 such articles of incorporation in accordance with the provisions of this chapter.
(d) It shall not be necessary that any such resolution be published in any newspaper or posted or be offered for more than one reading.
(e) The failure of any governing body of a county within the authorized operational area of a proposed authority to approve the written application of the incorporators shall invalidate the application to incorporate an authority, and the resolution denying the application of the incorporators shall be filed with the judge of probate of the county where the application of the incorporators was filed, whether within or without the county whose governing body denied the application. Nothing contained herein shall prevent the incorporators of the proposed authority from filing a new application to form an authority excluding the county or counties whose governing body or bodies failed to approve the incorporation of the proposed authority.
*(Acts 1989, No. 89-404, p. 802, §4; Act 99-350, p. 513, §3.)*
##### **§ 11-92A-5** Articles of Incorporation {#sec-11-92a-5 omnilex-key=us-al-statutes--title-11--11-92A-5}
(a) The articles of incorporation of an authority shall state all of the following:
(1) A designation of the authorized operational area of the authority, including the name or names of each county within such authorized operational area.
(2) The names of the incorporators of the authority and that each of them is a resident of a county within the authorized operational area of the authority.
(3) The name of the authority, which may be a name indicating in a general way the geographic area proposed to be served by the authority and shall include the words “Industrial Development Authority” (e.g., “The _______ Industrial Development Authority” or “The Industrial Development Authority of _______,” the blank space to be filled in with a geographically descriptive word or words, but the descriptive word or words shall not preclude the authority from exercising its powers in other geographic areas). If more than one county is included in an authority’s authorized operational area, then the name of the authority should also include either the name of each county included in the authority’s authorized operational area (e.g., “The Industrial Development Authority of _________ and _________ Counties”) or any other word or words reasonably descriptive of the authority’s authorized operational area.
(4) The period of the authority, which may be perpetual.
(5) The location of the principal office of the authority, which shall be within the boundaries of a county within the authorized operational area of the authority.
(6) That the authority is organized pursuant to this chapter.
(7) If the exercise by the authority of any of its powers hereunder is to be in any way prohibited, limited, or conditioned, a statement of the terms of the prohibition, limitation, or condition.
(8) The number of directors (which shall be a number not less than three times the number of counties included in the authority’s authorized operational area) and the duration of their respective terms of office (which shall not be in excess of six years).
(9) The manner of appointing directors, which may be by any of the following methods:
a. By the governing body of the county or counties within the authorized operational area of the authority;
b. By the governing bodies of municipalities located in the authorized operational area of the authority;
c. By the individual members of the governing bodies of municipalities or counties within the authorized operational area of the authority, based upon districts, precincts, place numbers, or the like;
d. By the legislative delegation or delegations for the authorized operational area of the authority;
e. Jointly by a combination of any of the above as the articles prescribe.
(10) Any provisions not inconsistent with this chapter relating to the dissolution of the authority and the vesting of title to its assets and properties upon its dissolution.
(11) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(b) The articles shall be signed by each of the incorporators.
(c) Upon the filing for record of the articles with the probate judge, the authority shall come into existence and shall constitute a public corporation under the name set forth in its articles of incorporation. The acceptance of articles for recording by the probate judge shall be conclusive evidence of the due, legal, and valid incorporation of the authority in all courts. The probate judge shall record the articles in an appropriate book in his office. There shall be no filing fees or recording taxes due or payable on account of the filing for record of the articles.
(d) Notwithstanding any other provision of this chapter, the articles of incorporation or legal existence of an authority shall not be deemed invalid for the sole reason that the articles of incorporation of such authority fail to specify an authorized operational area, and every such authority whose articles of incorporation fail to specify an authorized operational area, but are otherwise formed in accordance with the provisions of this chapter, may do all things contemplated by this chapter as if such authority had designated as its authorized operational area the county of incorporation.
*(Acts 1989, No. 89-404, p. 802, §5; Acts 1995, No. 95-577, p. 1213, §1; Act 99-350, p. 513, §4.)*
##### **§ 11-92A-6** Reincorporation {#sec-11-92a-6 omnilex-key=us-al-statutes--title-11--11-92A-6}
(a) In all cases where there has heretofore been an attempt to create or incorporate an industrial development authority or industrial development board, but the attempted creation or incorporation is or may be invalid because of some irregularity in the procedure followed or some invalidity of or defects in the statute under which the attempted creation or incorporation of the authority or board was made, any number of natural persons, not less than three, residing in the county in which the board or authority was incorporated or purported to be incorporated may file a written application with the probate judge of the county in which the industrial development authority or industrial development board has been incorporated or attempted to be created or incorporated, which application shall:
(1) Contain a statement that the incorporators propose to reincorporate an authority pursuant to the provisions of this chapter;
(2) State the authorized operational area of the proposed reincorporated authority;
(3) State that each of the applicants is a resident of the county of incorporation;
(4) Describe the manner of appointing directors of the reincorporated authority, which may be any of the methods described in Section 11-92A-5 with respect to newly incorporated authorities; and
(5) Request that the governing body of the county of incorporation and each county in the authorized operational area of the proposed reincorporated authority adopt a resolution declaring that it is expedient that the industrial development authority or industrial development board be reincorporated, approving the written application, approving the authorized operational area of the proposed reincorporated authority, and authorizing the incorporators to proceed to reincorporate the industrial development authority or industrial development board by filing for record articles in accordance with the provisions of this chapter.
(b) Such application shall be accompanied by the form of articles of the industrial development authority or industrial development board proposed to be reincorporated, which shall comply with the requirements of Section 11-92A-5.
(c) As promptly as may be practicable after the filing of the application with the probate judge, the governing body of the county of incorporation and each county within the authorized operational area of the proposed authority shall review the contents of the application and the accompanying form of articles and shall adopt a resolution either:
(1) Denying the application or
(2) Declaring that it is expedient that the proposed reincorporation occur, approving the form of articles, and authorizing the incorporators to proceed to reincorporate the industrial development authority or industrial development board by filing for record the articles in accordance with the provisions of Section 11-92A-5, except that the articles shall further specify the name of the industrial development authority or industrial development board being reincorporated.
(d) It shall not be necessary that any such resolution be published in any newspaper or posted or be offered for more than one reading.
(e) Upon the filing for record of the articles of reincorporation of the authority with the probate judge, the authority shall be reincorporated and the existence and the validity of the authority shall be validated and ratified retroactive to the initial incorporation or creation or attempted incorporation or creation thereof, with all authorities and powers granted to an authority by this chapter, notwithstanding the fact that the industrial development authority or industrial development board that was reincorporated might not have had such authorities or powers prior to its reincorporation. Actions taken, contracts entered into, property received or conveyed, and other matters with respect to the industrial development board or industrial development authority occurring prior to its reincorporation shall be deemed valid, binding, effective, legal, and constitutional if such matters would have been valid, binding, legal, effective, or constitutional if occurring after the date of reincorporation under the terms of this chapter, notwithstanding any defects or irregularity in the procedure for the original creation or incorporation of such industrial development authority or industrial development board or the invalidity of or defects in the statute under which the attempted creation or incorporation of such authority or board was made or attempted.
(f) Upon such reincorporation, the directors of the board or authority which has been reincorporated shall cease to be directors of the reincorporated board or authority, provided that any and all directors previously serving may be appointed or reappointed to the board of directors in accordance with the provisions of the application filed pursuant to this section and the requirements of this chapter.
*(Acts 1989, No. 89-404, p. 802, §6; Act 99-350, p. 513, §5.)*
##### **§ 11-92A-7** Further Authorization and Procedure for Reincorporation of Existing Industrial Development Authorities and Boards {#sec-11-92a-7 omnilex-key=us-al-statutes--title-11--11-92A-7}
In all cases where an industrial development authority or industrial development board has been incorporated or created prior to or after the enactment of this chapter, and a majority of the members of the board of directors of such authority or board adopts a resolution determining that it would be expedient for such authority or board to reincorporate under the terms of this chapter, the authority or board may authorize three or more of its members to file an application in accordance with Section 11-92A-6 (notwithstanding the fact that there may be no invalidity of the attempted creation or incorporation of such board or authority or irregularity in the procedure followed or some invalidity of or defects in the statute under which the attempted creation or incorporation of the authority or board was made) and proceed to reincorporate the authority or board under this chapter in accordance with Section 11-92A-6.
*(Acts 1989, No. 89-404, p. 802, §7.)*
##### **§ 11-92A-8** Recordation of Articles by Probate Judge; Probate Judge to Receive No Fees in Connection with Incorporation, Reincorporation, Dissolution, Etc., of Authority {#sec-11-92a-8 omnilex-key=us-al-statutes--title-11--11-92A-8}
(a) The articles shall be filed with the probate judge. Upon acceptance of such articles for filing, the proposed authority shall constitute a de jure corporation. The acceptance of such articles for filing by the probate judge shall be conclusive of the valid incorporation of a proposed authority or reincorporation of an industrial development authority or industrial development board.
(b) There shall be no fees or taxes paid to or collected by the probate judge for any service rendered or work performed in connection with an authority, its incorporation, reincorporation, amendment, dissolution, or records.
*(Acts 1989, No. 89-404, p. 802, §8.)*
##### **§ 11-92A-9** Board of Directors {#sec-11-92a-9 omnilex-key=us-al-statutes--title-11--11-92A-9}
(a) The board of directors of an authority shall be as specified in the articles, or as provided in Sections 11-92A-5 and 11-92A-6, provided that each county within the authorized operational area of an authority shall be represented by at least three directors.
(b) Each authority shall have a chairman, vice-chairman, secretary, and treasurer, to be elected by the board of directors. The offices of secretary and treasurer may, but need not, be held by the same person. A majority of the directors shall constitute a quorum for the transaction of business. The officers and directors shall serve for the terms provided for in the articles. No director shall draw any salary for any service rendered or for any duty performed as director. The duties of the chairman, vice-chairman, secretary, and treasurer shall be such as are customarily performed by such officers and as may be prescribed by the board of directors from time to time.
(c) All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the authority and shall be signed by at least two directors of the authority present at the proceedings. Copies of such proceedings, when certified by the secretary of the authority under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(d) A board of directors may adopt bylaws making provision for its actions not inconsistent with this chapter.
(e) Notice of any meeting of the members of the board of directors shall be as provided in the bylaws or, if the bylaws make no provision for such notice, then as determined in the discretion of the chairman of the board of directors. Notice of any meeting may be waived by any director before, at, or after the meeting and may be communicated by letter, telegraph, telex, telecopy, or similar means. Attendance at any meeting for any purpose other than to protest the holding of the meeting shall constitute waiver of notice.
(f) The board of directors may act by a written consent, signed by all directors, which consent shall have the same effect as unanimous action taken at a duly held meeting of the board of directors, a quorum being present. Directors may also meet by telephone conference or may attend a meeting by any two-way telephonic communication system or the like.
(g) Directors must be residents of a county within the authorized operational area of the authority. If any director ceases to be a resident of a county within the authorized operational area of the authority, such person shall cease to be a director, and such position shall remain vacant until a successor is appointed in accordance with the articles and this chapter. If any director ceases to be a resident of the county from which such director was appointed and becomes a resident of another county within the authorized operational area of the authority, such person shall cease to be a director, and such position shall remain vacant until a successor is appointed in accordance with the articles and this chapter, provided that any such person disqualified under the provisions of this sentence may be reappointed to the board of directors of the authority, if otherwise qualified.
*(Acts 1989, No. 89-404, p. 802, §9; Act 99-350, p. 513, §6.)*
##### **§ 11-92A-10** Directors {#sec-11-92a-10 omnilex-key=us-al-statutes--title-11--11-92A-10}
(a) Except as provided in Section 11-92A-5, the board of directors shall be composed of the number of directors provided for in the articles, appointed as provided in the articles for the terms designated therein.
(b) All directors shall serve until their successors are duly appointed or until they cease to be qualified. Vacancies on the board of directors shall be filled as provided for in the articles, but any person appointed to fill a vacancy shall serve only for the unexpired portion of the term. In the event any uncertainty arises as to the terms of office of the directors, the governing body or person authorized to appoint such directors to the board of directors may clarify such term by adoption of an appropriate resolution or by execution of an appropriate certificate, and such term of office shall be as so clarified.
(c) A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board of directors may be adjourned from time to time by a majority of the directors present, or may be so adjourned by a single director if such director is the only director present at such meeting. No vacancy in the membership of the board of directors shall impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times as may be provided in the bylaws of the authority, may hold other meetings at any time and from time to time upon such notice as may be required by the bylaws of the authority or, if the bylaws make no provision for such notice, then as determined in the discretion of the chairman of the board of directors, and must, upon call of the chairman of the authority or a majority of the total number of directors, hold a special meeting. Any matter on which the board of directors is authorized to act may be acted upon at any regular, special, or called meeting. At the request of any director, the vote on any question before the board of directors shall be taken by yeas and nays and entered upon the record. All resolutions adopted by the board of directors shall constitute actions of the authority.
(d) Any director may be impeached and removed from office only in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama of 1901 and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175.
*(Acts 1989, No. 89-404, p. 802, §10; Act 99-350, p. 513, §7.)*
##### **§ 11-92A-11** Amendment of Articles {#sec-11-92a-11 omnilex-key=us-al-statutes--title-11--11-92A-11}
(a) The articles of any authority may at any time and from time to time be amended in the manner provided in this section. The board of directors shall first adopt a resolution proposing an amendment to the articles, which amendment shall be set forth in full in the said resolution and which may include any matters that might have been included in the original articles. Such amendment may be made for the sole purpose of altering, in accordance with the provisions of this chapter, the authorized operational area of the authority.
(b) After the adoption by the board of directors of a resolution proposing an amendment to the articles, the chairman and the secretary of the authority shall sign and file with the governing body of each county within the existing authorized operational area of the authority, and with the governing body of each county proposed to be added to the authorized operational area of the authority, if any, a written application in the name and on behalf of the authority, under its seal, requesting that such governing body or bodies adopt a resolution approving the proposed amendment, and accompanied by a copy of the resolution adopted by the board of directors proposing the amendment to the articles. As promptly as may be practicable after the filing of the application, the governing bodies shall review the application and shall adopt a resolution either denying the application or approving and authorizing the proposed amendment. Such resolution need not be published or posted and need not be offered for more than one reading.
(c) Following the adoption of a resolution approving the proposed amendment by the governing body of each county with which such application was filed pursuant to this section, the chairman and the secretary of the authority shall sign and file for record in the office of the probate judge a certificate in the name and on behalf of the authority, under its seal, reciting the adoption of resolutions by the board and by the governing body of the county of incorporation and setting forth the proposed amendment. The probate judge shall thereupon record such certificate in an appropriate book in his office. When such certificate has been so filed and recorded, such amendment shall become effective, and the articles shall thereupon be amended to the extent provided in such amendment.
(d) The failure of any one governing body of a county receiving an application filed pursuant to this section to approve an application made pursuant to this section shall invalidate such application.
*(Acts 1989, No. 89-404, p. 802, §1; Act 99-350, §8.)*
##### **§ 11-92A-12** Powers of Authority {#sec-11-92a-12 omnilex-key=us-al-statutes--title-11--11-92A-12}
An authority shall have the following powers, which it may exercise in any county within such authority’s authorized operational area:
(1) To have succession by its corporate name until dissolved as provided in this chapter;
(2) To institute and defend legal proceedings in any court of competent jurisdiction and proper venue; provided, however, that an authority may not be sued in any trial court other than the courts of a county within the authorized operational area of the authority; provided, further, that the officers, directors, agents, and employees of an authority may not be sued for their actions in behalf of the authority except for actions that are known by such person to be unlawful or are performed with reckless disregard for the lawfulness of such actions;
(3) To have and to use a corporate seal and to alter the seal at its pleasure;
(4) To establish a fiscal year;
(5) To anticipate by the issuance of its bonds the receipt of any revenues or grants of money that may be appropriated by or to the authority;
(6) To pledge the proceeds of such receipts, revenues, or grants of money as security for the payment of the principal of and interest on its bonds;
(7) To make surveys and other analyses to determine suitable locations for prospective industries;
(8) To make surveys and other analyses to determine the availability of labor and to classify such labor in terms of skills and educational levels;
(9) To assist other public or private persons in the survey and analyses of their industrial resources and needs;
(10) To make grants of money to other public or private persons and to any organization which is described in Section 501(c)(3) of the Internal Revenue Code of 1986, as in effect from time to time, or as recodified, or any corresponding provision of any future revenue law;
(11) To accept gifts, grants, bequests, or devises;
(12) To accept pledges of revenues or grants of money from public persons and to enter into binding agreements with those entities, with or without consideration;
(13) To enter into deeds, mortgages, leases, loan agreements, or other agreements with any person;
(14) To require and/or accept lease payments, loan repayments, or other compensation to or for the authority or other public persons in lieu of sales, use, mortgage, lease, ad valorem, and/or other taxes;
(15) To accept donations of money or real or personal or mixed property from any person;
(16) To invest in bank deposits, U.S. Treasury bills, projects, instruments, real, personal, or mixed property, and such other investments as the board of directors may from time to time determine to be appropriate and convenient to accomplish any purpose for which an authority is organized, including works of internal improvement, interests in private or corporate enterprises, loans of money or credit to individuals, associations, or corporations, or the lending of the authority’s credit, granting of public money or things of value in aid of or to any individual, association, or corporation whatsoever, or becoming a stockholder in any such corporation, association, or company by issuing bonds or otherwise even though such might be in violation of Section 93 or Section 94 of the Constitution of Alabama of 1901 if done by the state, a county, city, town, or other subdivision of the state, notwithstanding the fact that any such investment or action may involve the expenditure or appropriation of funds received from a public person. In particular, but not by way of limitation, an authority may invest its funds (from whatever source) in the stock, bonds, debentures, notes, or other securities issued by any person locating a project in the authority’s authorized operational area, may enter into contracts or options (including contracts or options for the conveyance, sale or lease of property) to any such person at less than arms’ length and at bargain rates, purchase prices, rents, or the like, or for nominal consideration, and make direct grants of money, property, or services (from whatever source) to any such person for the purpose of inducing any such person to locate a project in the authority’s authorized operational area;
(17) To appoint and employ such attorneys, agents, fiscal agents, underwriters, issuers of letters of credit, depositories, banks, trustees, paying agents, transfer agents, remarketing agents, marketing agents, rating agencies, insurers of its securities, guarantors of its securities, providers of other forms of credit enhancement for its securities, and the like as an authority may require or deem appropriate for the carrying out of its corporate purposes and the exercise of its powers;
(18) To acquire real property for the purpose of establishing one or more than one industrial parks or industrial sites; to improve industrial parks or industrial sites, whether owned by the authority or by any other person, including the improvement of such parks or sites by the construction of roads, curbing, gutters, drainage, sewerage, utilities, railroad spurs, docks, harbors, ports, grading, and the like; to construct, for its own account or the account of others, improvements thereon, including any project, for the purpose of conveying, leasing or selling the same to any person, including the power to convey, lease or sell the same for its own account at a profit or loss, or to construct the same to constitute an inducement for any person to locate and operate a project in such industrial park or at such industrial site, even though such person may not have been identified at the time such improvement may be constructed;
(19) To exercise all powers granted hereunder in such manner as it may determine to be consistent with the purposes of this chapter, notwithstanding that as a consequence of the exercise of such powers it engages in activities that may be deemed “anticompetitive” within the contemplation of the antitrust laws of the state or of the United States; and
(20) To enter into such contracts, agreements, options, leases, loan agreements, deeds, and other instruments, and to take such other actions as may be necessary or convenient to accomplish any purpose for which an authority is organized or to exercise any power expressly granted hereunder.
*(Acts 1989, No. 89-404, p. 802, §12; Act 99-350, p. 513, §9.)*
##### **§ 11-92A-13** Issuance and Sale of Bonds {#sec-11-92a-13 omnilex-key=us-al-statutes--title-11--11-92A-13}
An authority is hereby authorized from time to time to sell and issue its bonds for the purposes authorized in Section 11-92A-12.
*(Acts 1989, No. 89-404, p. 802, §13.)*
##### **§ 11-92A-14** Bonds of Authority {#sec-11-92a-14 omnilex-key=us-al-statutes--title-11--11-92A-14}
(a) Bonds of an authority shall be signed by its chairman and attested by its secretary, the seal of the authority shall be affixed thereto, and any interest coupons applicable to said bonds shall be signed by the chairman; provided that a facsimile of the signature of said officers may be printed or otherwise reproduced on any such bonds in lieu of being manually subscribed thereon, a facsimile of the seal of the authority may be printed or otherwise produced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the chairman’s signature may be printed or otherwise reproduced on any such interest coupons in lieu of being manually subscribed thereon, provided that the bonds have been manually authenticated by a transfer agent of the bond issue. Delivery of the bonds so executed shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds.
(b) Any bonds may be executed and delivered by the authority at any time and from time to time and shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest, shall be payable at such times and evidenced in such manner, and may contain such other provisions not inconsistent with this chapter as may be provided by the resolution or resolutions of the board of directors under which such bonds are authorized to be issued; provided, however, that no bond shall have a specified maturity date later than 30 years after its date of execution. A bond may be made subject to redemption at the option of an authority at such times and after such notice and on such conditions and at such redemption price or prices as may be provided in the resolution or resolutions under which it is authorized to be issued. Such bonds may bear interest at a fixed rate, at a rate that adjusts in accordance with some independent standard, such as the prime or base lending rate of a bank or published rates for other securities, or may bear interest at rates which may be from time to time adjusted to a rate sufficient, in the opinion of any remarketing agent appointed by the authority, to cause the bonds to have a fair market value or funding value not less than the principal amount of such bonds or such other amount as may be specified in the proceedings authorizing the issuance of such bonds. In particular, it is intended that the authority shall be authorized to issue “tender” bonds or similar bonds and to enter into appropriate remarketing agreements with respect to any of its bonds and the determination of the rate of interest borne by such bonds.
(c) Upon the adoption by the board of directors of any resolution providing for the issuance of bonds, an authority may, in its discretion, cause to be published once a week for two consecutive weeks, in a newspaper or newspapers of general circulation published in each county within its authorized operational area a notice in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chairman or secretary of the authority: ” _____, a public corporation organized under the laws of the State of Alabama, on the _____ day of _____, authorized the issuance of not more than $_____ principal amount of [revenue, general obligation, or other appropriate designation] bonds of the said authority for purposes authorized in the act of the Legislature of Alabama under which the said authority was organized. Any action or proceeding questioning the validity of the said bonds, any pledge or mortgage to secure the same, any lease or sale of any project to be financed by said bonds, or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.” Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in said notice or to contest the validity of such bonds or the validity of any pledge or mortgage made therefor or any lease or sale of any project to be financed by said bonds must be commenced within 20 days after the first publication of such notice. After the expiration of the said period, no cause of action, counterclaim, setoff, or defense questioning or attacking the validity of the said proceeding or of the said bonds or the said pledge or mortgage or the lease or sale of the project to be financed by said bonds shall be asserted, nor shall the validity of the said proceedings or of the said bonds or the said pledge or mortgage or the lease or sale of the project to be financed by said bonds be open to question in any court on any ground whatsoever except in an action or proceeding commenced within such period.
(d) Subject to the provisions and limitations contained in this chapter, an authority may from time to time sell and issue refunding bonds for the purpose of refunding any bonds then outstanding. Such refunding bonds may be subrogated and entitled to all priorities, rights, and pledges to which the bonds refunded thereby were entitled.
(e) An authority may pay out of the proceeds of the sale of its bonds attorneys’ fees and the other expenses of issuance which its board of directors may deem necessary and advantageous in connection with the issuance of such bonds.
*(Acts 1989, No. 89-404, p. 802, §14; Act 99-350, p. 513, §10.)*
##### **§ 11-92A-15** Security for Bonds {#sec-11-92a-15 omnilex-key=us-al-statutes--title-11--11-92A-15}
(a) In the discretion of the board of directors of an authority, any bonds may be secured by an indenture between an authority and a trustee, which may be any trust company or bank having trust powers, whether such trust company or bank is located within or without the state. In any such indenture or resolution providing for the issuance of bonds an authority may pledge, for payment of the principal of and the interest on such bonds, any of its revenues to which its right then exists or may thereafter come into existence, including, but not limited to, revenues or other money or property pledged to it by any public or private person, and may assign, as security for such payment, any of its leases, loan agreements, franchises, permits, and contracts. In any such indenture, an authority may mortgage any of its properties, including any that may be thereafter acquired by it, and may provide that in the event of a default in payment of the bonds secured thereby or in the event of default with respect to any agreement contained therein, such mortgage may be foreclosed either by sale at public outcry or by judicial proceedings. Any such pledge of revenues shall be valid and binding from the time it is made, and the revenues so pledged and thereafter received by the authority shall immediately become subject to the lien of such pledge without any physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have actual notice thereof, provided any indenture has been recorded in the office of the probate judge, regardless of compliance with the Alabama Uniform Commercial Code as in effect from time to time. In any indenture or resolution authorizing the issuance of bonds and pledging for the benefit thereof revenues from any one or more of its projects, the authority shall have the power to include provisions customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection, segregation, and application of any rental, loan payment, or other revenue due or to become due to the authority, the terms to be incorporated in any lease agreement respecting any property of the authority, the terms to be included in any loan agreement, the maintenance and insurance of any building, structure, or other property owned by the authority, the creation and maintenance of special funds from any revenue of the authority, and the rights and remedies available in the event of default to the holder of the bonds or the trustee under the indenture, all as its board of directors shall deem advisable and as shall not be in conflict with the provisions of this section.
(b) If there occurs any default by an authority in payment of the principal of or the interest on the bonds or in any of the agreements on the part of an authority that may properly be included in any indenture securing the bonds or in any resolution authorizing their issuance, any holder of any of the bonds or any of the coupons, or the trustee under any indenture if so authorized in such indenture, may, in addition to any other remedies herein provided or otherwise available, by suit, action, mandamus, or other proceedings, enforce payment of such principal or interest and compel performance of all duties of the authority, and shall be entitled as a matter of right and regardless of the sufficiency of any such security to the appointment of a receiver possessing all the powers of such receiver necessary or appropriate for the operation and maintenance of the property of the authority covered by such indenture or resolution, and the collection, segregation, and application of revenues therefrom. The indenture or any resolution may also contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Acts 1989, No. 89-404, p. 802, §15; Act 99-350, p. 513, §11.)*
##### **§ 11-92A-16** Use of Bonds, Proceeds, Etc {#sec-11-92a-16 omnilex-key=us-al-statutes--title-11--11-92A-16}
(a) The proceeds from the sale of any bonds shall be applied as provided in the proceedings in which the bonds are authorized to be issued, including without limitation, the payment of all legal, fiscal, and recording fees and expenses incurred in connection with the authorization, sale, and issuance of the bonds and, if so provided in the proceedings authorizing their issuance, interest on said bonds (or if only a part of any issue of bonds is issued for acquisition purposes, interest on that portion of the bonds of that issue that is issued to pay acquisition costs) for a reasonable period prior to and during the time required for the acquisition, construction, and equipping of the project. An authority may provide in the proceedings authorizing the issuance of bonds for the funding of a debt service reserve and/or a replacement and extension reserve from the proceeds of its bonds.
(b) All contracts made by an authority and all bonds shall be solely and exclusively obligations of an authority and shall not constitute or create an obligation or debt of any other public person, except as may be provided in subsection (c).
(c) Any public person may pledge its full faith and credit to the extent permitted by the Constitution of Alabama of 1901 or any assets or revenues at its disposal toward the retirement of any bonds or other evidences of indebtedness issued by an authority under the provisions of this chapter.
(d) Bonds shall be construed to be negotiable instruments even if payable solely from only a specified source.
(e) Bonds issued by an authority and the income therefrom shall be exempt from all taxation in the state.
(f) Bonds issued by an authority may be used by the holder thereof as security for any funds belonging to any public person in any instance where security for such deposits may be required by law.
(g) Unless otherwise directed by the court having jurisdiction thereof or the document that is the source of its authority, a trustee, executor, administrator, custodian, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers now or hereafter conferred by law and with the exercise of reasonable business prudence, invest trust or fiduciary funds in bonds.
(h) Neither a public hearing nor consent of any other public person shall be a prerequisite to the issuance of bonds by an authority.
(i) The bonds shall be legal investments for funds of the Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund.
(j) Public persons may invest in any bond issued by an authority.
*(Acts 1989, No. 89-404, p. 802, §16; Act 99-350, p. 513, §12.)*
##### **§ 11-92A-17** Exemption from Usury and Interest Laws {#sec-11-92a-17 omnilex-key=us-al-statutes--title-11--11-92A-17}
An authority shall be exempt from all laws of the state now or hereafter governing usury or prescribing or limiting interest rates, including without limitation the provisions of Chapter 8 of Title 8.
*(Acts 1989, No. 89-404, p. 802, §17.)*
##### **§ 11-92A-18** Exemptions from Taxation {#sec-11-92a-18 omnilex-key=us-al-statutes--title-11--11-92A-18}
All properties of an authority, whether real, personal, or mixed, and the income therefrom, all bonds and other securities issued by an authority and the coupons applicable thereto and the income therefrom, and all indentures and other instruments executed as security therefor, all leases and loan agreements made pursuant to the provisions of this chapter and all revenues derived from any such leases or loan agreements, and all deeds and other documents executed by or delivered to an authority shall be exempt from any and all taxation by any public person, including without limitation license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the probate judge in connection with the amendment of its articles or the recording of any document. Further, the gross proceeds of the sale of any property used in the construction and equipment of any project for an authority, regardless of whether such sale is to such authority or any contractor or agent thereof, shall be exempt from the sales tax imposed by Article 1 of Chapter 23 of Title 40 and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any such sale by any public person; and any property used in the construction and equipment of any project for an authority, regardless of whether such property has been purchased by an authority or any contractor or agent thereof, shall be exempt from the use tax imposed by Article 2 of Chapter 23 of Title 40 and all other use and similar excise taxes now or hereafter levied on or with respect to any such property by any public person.
*(Acts 1989, No. 89-404, p. 802, §18; Act 99-350, p. 513, §13.)*
##### **§ 11-92A-19** Nonapplicability of Competitive Bid Laws {#sec-11-92a-19 omnilex-key=us-al-statutes--title-11--11-92A-19}
The provisions of Articles 2 and 3 of Chapter 16 of Title 41 or other similar laws shall not apply to an authority, its directors, or any of its officers, agents, or employees in their capacities as such.
*(Acts 1989, No. 89-404, p. 802, §19.)*
##### **§ 11-92A-20** Limited Liability {#sec-11-92a-20 omnilex-key=us-al-statutes--title-11--11-92A-20}
The recovery of damages under any judgment or judgments against an authority shall be limited to $100,000 for bodily injury or death for one person in any single occurrence. Recovery of damages under any judgment or judgments against art authority shall be limited to $300,000 in the aggregate where more than two persons have claims or judgments on account of bodily injury or death arising out of any single occurrence. Recovery of damages under any judgment or judgments against an authority shall be limited to $100,000 for damage or loss of property arising out of any single occurrence. No authority shall settle or compromise any claim for bodily injury, death, or property damage for an amount in excess of the amounts hereinabove set forth.
*(Acts 1989, No. 89-404, p. 802, §20.)*
##### **§ 11-92A-21** Transfer of Funds and Assets to Authority {#sec-11-92a-21 omnilex-key=us-al-statutes--title-11--11-92A-21}
Any public person is hereby authorized to transfer and convey to an authority, with or without consideration, (a) any properties, real, personal, or mixed, and all funds and assets, tangible or intangible, that may be owned by such public person or that may be jointly owned by any two or more thereof, and (b) any funds owned or controlled by any public person or jointly by any two or more thereof; whether or not such property or funds are considered necessary for the conduct of the governmental or public functions (if any) of such public person. Such transfer or conveyance shall be authorized by an ordinance or resolution duly adopted by the governing body of such public person. Any such ordinance or resolution need not be published or posted and need not be offered for more than one reading.
*(Acts 1989, No. 89-404, p. 802, §21.)*
##### **§ 11-92A-22** Dissolution of Authority {#sec-11-92a-22 omnilex-key=us-al-statutes--title-11--11-92A-22}
(a) At any time when no bonds of an authority are outstanding, an authority may be dissolved by the adoption by its board of directors of a resolution recommending its dissolution and the approval of such dissolution and the proposed articles of dissolution by the governing body of each county within an authority’s authorized operational area by the adoption of a resolution to the effect that the governing body of such county concurs with the proposed dissolution of the authority. All counties within the authorized operational area of an authority must approve the articles of dissolution of an authority, or such articles of dissolution shall be invalid. Such resolution need not be published or posted and need not be offered for more than one reading. Upon receiving necessary approval under this section, the chairman and secretary of the dissolved authority shall execute articles of dissolution reciting that such resolutions have been adopted and that such authority has been dissolved. Such articles of dissolution shall be filed with the probate judge, who shall record them in an appropriate book.
(b) Upon dissolution of an authority, title to all its property shall be vested in such persons as shall be specified or in its articles of incorporation, or if no such specification exists, in its articles of dissolution, or if no such specification exists, in each county within the authority’s authorized operational area at the time of dissolution to have and hold equally as tenants in common.
*(Acts 1989, No. 89-404, p. 802, §22; Act 99-350, §14.)*
##### **§ 11-92A-22.1** Dissolution Requirements {#sec-11-92a-22.1 omnilex-key=us-al-statutes--title-11--11-92A-22.1}
In addition to the requirements for dissolution under Section 11-92A-22, prior to the dissolution of an authority organized under Chapter 92A of this title, the authority shall provide notice to the Legislature of the authority’s intent to dissolve, as adopted by its board of directors in accordance with Section 11-92A-22. The articles of dissolution, as required by Section 11-92A-22, may not be effective prior to the 15th legislative day of the regular session of the Legislature that commences no sooner than six weeks after the notice of dissolution is provided to the Legislature as required in this section.
*(Act 2020-72, §24.)*
##### **§ 11-92A-23** Special Reserve Funds and Applications for Appropriations {#sec-11-92a-23 omnilex-key=us-al-statutes--title-11--11-92A-23}
(a) In addition to all other powers at any time conferred upon an authority by law, an authority may, in connection with the issuance of any bonds hereunder, create and establish one or more special debt service reserve funds (a “debt service reserve fund”), and may pay or cause to be paid into each debt service reserve fund (i) proceeds from bonds issued pursuant hereto to the extent provided by the authority authorizing the issuance thereof; (ii) any moneys appropriated and made available by the Legislature for the purpose of such fund; and (iii) any other moneys that may be made available to the authority from any other source for the purpose of such fund. All moneys held in a debt service reserve fund shall be used solely for the payment of the principal of, premium, if any, and interest on bonds secured, in whole or in part, by that fund when and as the same become due and payable as provided in the proceedings pursuant to which such bonds are issued.
(b) Any authority may, prior to the issuance of any bonds hereunder to be secured by a debt service reserve fund, apply in writing to the Legislature, or the Governor and Director of Finance, for designation of such fund as a “special benefit project fund” for purposes of this section, and in connection therewith may provide such information as such authority shall deem appropriate to demonstrate the expected economic benefit to accrue to the state as a result of the project to be financed by the bonds secured by such fund. The Legislature, or the Governor and the Director of Finance, as the case may be, shall, as soon as practicable after such application shall have been made, determine and inform such authority in writing whether any such fund shall be so designated hereunder. The determination of the Legislature, or the Governor and the Director of Finance, as the case may be, in such matters shall be made in the sole discretion thereof, shall be conclusive and final, and shall not be subject to review or appeal. The Legislature does hereby, upon due consideration of such economic and other factors as the Legislature considers appropriate, designate as a special benefit project fund for all purposes hereof any debt service reserve fund created hereunder by the East Central Alabama Industrial Development Authority in connection with the issuance of bonds hereunder to finance improvements to and services for certain real estate in Talladega County, Alabama, upon which American Honda Motor Co., Inc., or any affiliate, successor or assign thereof, will construct and operate an automobile assembly plant.
(c) At any time the chairman of any authority which has a special benefit project fund may deliver to the Governor and Director of Finance a certificate (i) stating the difference, if any, between the minimum reserve requirement, as hereinafter defined, for such fund and the balance on deposit in such fund, and the dates on which, and the amounts in which, payments are required from such fund during the period ending on the first anniversary of the date of such certificate, and (ii) requesting the Legislature to appropriate and pay to or for such authority such amounts by such dates as shall provide the minimum reserve requirement in such fund and enable such authority to pay therefrom the amounts on the dates required therefor during said period. As soon as possible thereafter, the Governor and Director of Finance shall submit each such certificate to the Legislature prior to or during each legislative session, regular or special. The Legislature may, in its sole discretion, appropriate and pay for the benefit of any authority amounts sufficient to provide the minimum reserve requirement in any such special benefit project fund for such authority by such dates as shall be stated in the certificate of such authority. The Legislature may, in its sole discretion, appropriate funds for any special benefit project fund of any authority without appropriating any funds for any other such special benefit project fund of the same or any other authority. All sums, if any, appropriated by the Legislature and paid to an authority for the purposes hereof shall be forthwith deposited by such authority in the applicable special benefit project fund of the authority. The “minimum reserve requirement” as used herein shall mean, for each special benefit project fund for each authority, an amount not exceeding the lesser of (i) the maximum amount of principal of, premium, if any, and interest on the bonds of an authority secured, in whole or in part, by such fund which are scheduled to be paid, by maturity or redemption, in any year or (ii) the maximum amount permitted by contract or law to be on deposit in any such fund.
(d) All amounts paid to or for the benefit of an authority by the state pursuant to the provisions of this section shall constitute and be accounted for as advances by the state to such authority and, subject to the rights of the holders of any bonds or obligation of such authority, shall be repaid to the state without interest from all available operating revenues of such authority in excess of amounts required, by law or contract, for the payment of bonds or other obligations of the authority, the amounts required to be deposited in any funds of such authority, and amounts required for the payment of operating expenses.
(e) Any authority may create and establish any other fund or funds as may be necessary or desirable for its purposes.
(f) Any authority may from time to time issue bonds to carry out the purposes of this chapter without establishing a debt service reserve fund pursuant to this section for such bonds.
(g) The Legislature shall have no obligation or liability for the appropriation or payment of any funds for any authority pursuant to this chapter. The provisions hereof, the creation and establishment of any debt service reserve fund by any authority, the designation of any such fund by the Legislature, or the Governor and Director of Finance, as a special benefit project fund, and the submission of any certificate under subsection (c), shall never operate or be construed to constitute or create (1) an obligation of the Legislature to make any appropriation therefor or (2) an indebtness, pecuniary liability, or charge against the general credit or taxing powers of the state.
(h) If this section or any subsection or the application thereof to any authority or person shall be determined by any court of competent jurisdiction to be invalid, unenforceable, or unconstitutional to any extent, the remainder of this section or the application of such section or subsection to any person other than that which is determined to be invalid or unenforceable, shall not be affected thereby.
(i) The provisions of this section shall apply only to debt service reserve funds created after May 25, 2000.
*(Act 2000-769, p. 1763, §1.)*
### **Chapter 92B** Developmnet of Former Federal Military Installations
##### **§ 11-92B-1** Definitions {#sec-11-92b-1 omnilex-key=us-al-statutes--title-11--11-92B-1}
When used in this chapter, the following words and terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) ARTICLES. The articles of incorporation of an authority.
(2) AUTHORITY. A public corporation incorporated pursuant to this chapter.
(3) BOARD. The board of directors of an authority.
(4) BOND or BONDS. A bond or bonds issued under this chapter.
(5) COUNTY OF INCORPORATION. The county in which an authority has been or is proposed to be incorporated.
(6) DIRECTORS. The members of the board of directors.
(7) INCORPORATORS. The natural persons filing a written application for the incorporation of an authority pursuant to this chapter.
(8) JUDGE OF PROBATE. The judge of probate of the county of incorporation of an authority.
(9) MILITARY INSTALLATION. A federal military fort, base, camp, post, station, yard, depot, arsenal, armory, or installation.
(10) OPERATIONAL AREA. The parcels of realty within a county, previously conveyed to the United States of America, which formerly comprised a military installation, and all property in adjacent areas of close proximity to the military installation within the corporate limits of any municipality whose corporate limits lie in whole or in part within the operational area of the authority that is necessary or convenient to carry out the purposes of the authority.
(11) PERSON. Unless limited to a natural person by the context in which it is used, any person, including, without limitation, a private firm, a private association, a corporation, and a public person.
(12) PROJECT. Any land and any buildings or other improvements thereon, and all real, personal, and mixed properties, within the operational area of an authority, deemed by an authority to be necessary or appropriate in connection therewith, whether or not now in existence, and which shall be suitable for the promotion of the purposes of the authority.
(13) PUBLIC PERSON. The state and any county, city, town, public corporation, agency, subdivision thereof, instrumentality thereof, or similar person.
(14) PURPOSE. The authorized purposes of an authority, which include acquiring, holding, improving, installing, constructing, owning, leasing, developing, performing environmental restoration and remediation, selling, and otherwise disposing of the real and personal property within its operational area for any use, subject to governmental land use restrictions or authority. Permissible uses of the property shall include, without limitation, industrial, commercial, business, office, parking, educational, cultural, artistic, retail, research and development, recreational, and residential uses and may include the construction of homes, apartments, town houses, condominiums, hotels, and motels, and other structures, which the authority deems appropriate for promoting industry, trade, and economic development within the operational area and the State of Alabama.
(15) STATE. The State of Alabama.
*(Act 2009-337, p. 577, §1.)*
##### **§ 11-92B-2** Legislative Findings {#sec-11-92b-2 omnilex-key=us-al-statutes--title-11--11-92B-2}
The Legislature makes the following findings:
(1) That the economic development of property comprising a former military installation is of vital importance to the life, health, and welfare of the citizens of local cities and counties affected by the base closure and the state.
(2) That it is desirable to allow for the establishment of local reuse authorities capable of managing and promoting the reuse and economic development of military installations after the closure of the military installations.
(3) That an Alabama court has ruled that a city and county lack legislative authority to join in any entity for the purposes provided for in this chapter. The Legislature finds that the purpose of this chapter is to provide such authority.
(4) That in consideration of the critical need for valid and fully authorized public entities, with community involvement and notice, to develop closed military installations, and perform environmental restoration and remediation activities under existing and future agreements, contracts, and orders, and the need for a local reuse authority or successor to any entity or group previously acting as a local reuse authority at a closed military installation, the Legislature has authorized the creation of public corporations empowered to assist counties and cities to develop former military installations for the purpose of promoting industry, trade, and economic development.
(5) That the Legislature intends that this chapter be liberally construed to promote the purposes of an authority.
*(Act 2009-337, p. 569, §2.)*
##### **§ 11-92B-3** Incorporation of an Authority {#sec-11-92b-3 omnilex-key=us-al-statutes--title-11--11-92B-3}
Any number of natural persons, not less than three, each residing in the county of incorporation or a municipality whose corporate limits lie in whole or in part within the operational area of the proposed authority, may incorporate an authority as provided in this chapter. To do so, the incorporators shall first file a written application in accordance with Section 11-92B-4.
*(Act 2009-337, p. 569, §3.)*
##### **§ 11-92B-4** Application of Incorporation {#sec-11-92b-4 omnilex-key=us-al-statutes--title-11--11-92B-4}
(a) The written application of the incorporators shall be filed with the judge of probate, which application shall do all of the following:
(1) Contain a statement that the incorporators propose to incorporate an authority pursuant to this chapter.
(2) State the operational area of the proposed authority.
(3) State that each of the incorporators is a resident of the county of incorporation or a municipality whose corporate limits lie in whole or in part within the operational area of the proposed authority.
(4) Request that the governing body of the county of incorporation adopt a resolution declaring that it is expedient that the proposed authority be formed, approving the written application, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with this chapter.
(5) Request that the governing body of each municipality whose corporate limits lie in whole or in part within the operational area of the proposed authority adopt a resolution declaring that it is expedient that the proposed authority be formed, approving the written application, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with this chapter.
(b) Such application shall be accompanied by the form of articles of incorporation of the proposed authority.
(c) As promptly as may be practicable after the filing of the application with the judge of probate, the governing body of the county of incorporation and each municipality whose corporate limits lie in whole or in part within the operational area of the proposed authority shall review the contents of the application and the accompanying form of articles and shall adopt a resolution that does either of the following:
(1) Denies the application.
(2) Declares that it is expedient that the proposed authority be formed, approving the form of its articles, and authorizing the incorporators to proceed to form the proposed authority by filing for record articles in accordance with this chapter.
(d) It is not necessary that any such resolution be published in any newspaper or posted or be offered for more than one reading.
(e) The failure of the governing body of the county of incorporation or any municipality whose corporate limits lie in whole or in part within the operational area of a proposed authority to approve the written application of the incorporators shall invalidate the application to incorporate an authority, and the resolution denying the application of the incorporators shall be filed with the judge of probate of the county where the application of the incorporators was filed.
*(Act 2009-337, p. 569, §4.)*
##### **§ 11-92B-5** Articles of Incorporation {#sec-11-92b-5 omnilex-key=us-al-statutes--title-11--11-92B-5}
(a) The articles of incorporation of an authority shall state all of the following:
(1) The names of the incorporators of the authority and that each of them is a resident of the county of incorporation or a municipality whose corporate limits lie in whole or in part within the operational area of the authority.
(2) The name of the authority, which may be a name indicating in a general way the name of the former military installation or a geographically descriptive word or words, and shall include the words “Development Authority” (e.g., “The _______ Development Authority” or “The Development Authority of _______,” the blank space to be filled in with a name indicating in a general way the name of the former military installation or geographically descriptive word or words, but the descriptive word or words shall not preclude the authority from exercising its powers in its operational area).
(3) A designation of the operational area of the authority, including the name or names of each municipality whose corporate limits include the operational area of the authority.
(4) The period of the authority, which may be perpetual.
(5) The location of the principal office of the authority, which shall be within the boundaries of the operational area of the authority.
(6) That the authority is organized pursuant to this chapter.
(7) If the exercise by the authority of any of its powers is to be in any way prohibited, limited, or conditioned, a statement of the terms of the prohibition, limitation, or condition.
(8) The number of initial directors appointed in accordance with this chapter and the duration of their respective terms of office.
(9) A plan of distribution of all remaining assets, properties, debts, and obligations of the authority upon dissolution of the authority and any other provisions not inconsistent with this chapter relating to the dissolution of the authority.
(10) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(b) The articles shall be signed by each of the incorporators.
*(Act 2009-337, p. 569, §5.)*
##### **§ 11-92B-6** Filing of Articles {#sec-11-92b-6 omnilex-key=us-al-statutes--title-11--11-92B-6}
(a) The articles shall be filed with the judge of probate. The acceptance of such articles for filing by the judge of probate shall be conclusive of the due, legal, and valid incorporation of the authority as a public corporation.
(b) There shall be no fees or taxes paid to or collected by the judge of probate for any service rendered or work performed in connection with an authority, its incorporation, amendment, dissolution, or records.
*(Act 2009-337, p. 569, §6.)*
##### **§ 11-92B-7** Board of Directors {#sec-11-92b-7 omnilex-key=us-al-statutes--title-11--11-92B-7}
(a) The authority shall operate under the direction of a board of directors which shall consist of voting members selected as follows:
(1) One member appointed by the Governor.
(2) Five members appointed by the governing body of each municipality whose corporate limits lie in whole or in part within the operational area of the authority.
(3) Five members appointed by the governing body of the county of incorporation.
(b) A vacancy occurring on the board for any reason shall be filled within 30 days of the vacancy by the appointing authority making the initial appointment. If the appointing authority that made the initial appointment does not fill the vacancy within 30 days, the remaining appointing authorities shall make the appointment.
(c) Initial appointments to the board shall be made within 30 days following the effective date of the incorporation. The Governor’s initial appointee shall serve a three-year term. Each governing body of a municipality shall designate two of its initial appointees to serve three-year terms, two of its initial appointees to serve two-year terms, and one initial appointee to serve a one-year term. The governing body of the county of incorporation shall designate two of its initial appointees to serve three-year terms, two initial appointees to serve two-year terms, and one initial appointee to serve a one-year term. Thereafter, each successor board member shall serve a term of three years. Each board member shall serve until a successor is appointed, qualified, and assumes office, or until the board member ceases to serve as a director pursuant to subsection (h). All successor appointments shall be made by the appointing authority entitled to make the initial appointment. A board member may be reappointed at the end of his or her term.
(d) Each director shall fulfill all of the following requirements:
(1) Reside within the county of incorporation or within the corporate limits of any municipality whose corporate limits lie in whole or in part within the county of incorporation.
(2) Not hold any elective office.
(3) Be a duly qualified elector of the county of incorporation or the municipality in which he or she resides.
(e) The first organizational meeting of the board shall be held within 14 days following the initial appointment of all of the directors. At the organizational meeting, the board shall elect officers from among its members, including a chair, vice chair, treasurer, secretary, and such other officers as the board deems necessary or desirable. The board may prescribe in its bylaws the terms, powers, and duties of the officers. At the initial meeting the board shall determine its meeting schedule. Board members shall serve without compensation and shall be entitled to expense reimbursement only upon prior approval of a majority of the board. The board may approve reimbursement only of the actual, reasonable, and necessary expenses incurred in the performance of duties.
(f) A majority of the members of the board shall constitute a quorum for the transaction of business. The members may act only upon a majority vote of the members making up the quorum. If a quorum is present when a meeting is convened and the subsequent withdrawal of members during the meeting leaves less than a quorum, the remaining members present may not take action except to continue the meeting for the purpose of engaging in debate and discussion and to adjourn the meeting by a vote of the majority of the remaining members present.
(g) The board or any committee thereof may meet by telephone conference or other electronic means to the extent allowed by law and the bylaws of the authority.
(h) A member of the board shall cease to be a member immediately upon the occurrence of any of the following:
(1) If, for any reason, other than an illness which is documented in writing to the authority by a physician, the board member is absent for more than 25 percent of the scheduled board meetings in any consecutive 12-month period. The board member shall cease to be a member on the last day of the month following the month in which he or she missed more than 25 percent of the scheduled board meetings, except for illness as described above.
(2) The board member is found guilty by a court of competent jurisdiction of willful or wanton misconduct or fraud in connection with the discharge of his or her duties, intentional civil or criminal fraud, or the board member is convicted of a felony.
(3) The board member ceases to reside within the county of incorporation or within the corporate limits of any municipality whose corporate limits lie in whole or in part within the county of incorporation.
(4) The board member is elected to any public office.
(5) The board member ceases to be a qualified elector of the county of incorporation or the municipality in which he or she resides on the date of the appointment.
(i) Any vacancy on the board occurring pursuant to subsection (h) shall be filled as provided in subsection (b).
*(Act 2009-337, p. 569, §7.)*
##### **§ 11-92B-8** Amendment of Articles {#sec-11-92b-8 omnilex-key=us-al-statutes--title-11--11-92B-8}
(a) The articles of an authority may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the articles, which amendment shall be set forth in full in the resolution and which may include any matters that might have been included in the original articles.
(b) After the adoption by the board of a resolution proposing an amendment to the articles, the chair and the secretary of the authority shall sign and file with the governing bodies of the county of incorporation, and each municipality whose corporate limits lie in whole or in part within the operational area of the authority, a written application in the name and on behalf of the authority, under its seal, requesting that such governing body or bodies adopt a resolution approving the proposed amendment, and accompanied by a copy of the resolution adopted by the board proposing the amendment to the articles. As promptly as may be practicable after the filing of the application, the governing body or bodies shall review the application and shall adopt a resolution either denying the application or approving and authorizing the proposed amendment. Such resolution need not be published or posted and need not be offered for more than one reading.
(c) Following the adoption of a resolution approving the proposed amendment by the governing body or bodies with which an application was filed pursuant to this section, the chair and the secretary of the authority shall sign and file for record in the office of the judge of probate of the county of incorporation a certificate in the name and on behalf of the authority, under its seal, reciting the adoption of resolutions by the board and by the governing body or bodies setting forth the proposed amendment. The judge of probate shall thereupon record the certificate in an appropriate book in his or her office. When the certificate has been so filed and recorded, the amendment shall become effective, and the articles shall thereupon be amended to the extent provided in the amendment.
(d) The failure of the governing body of the county of incorporation or any municipality whose corporate limits lie in whole or in part within the operational area of the authority receiving an application filed pursuant to this section to approve an application made pursuant to this section shall invalidate such application.
*(Act 2009-337, p. 569, §8.)*
##### **§ 11-92B-9** Ethical Standards {#sec-11-92b-9 omnilex-key=us-al-statutes--title-11--11-92B-9}
All board members, officers, and employees of an authority shall be subject to and comply with the ethics laws of the state. The board may adopt additional, more stringent, ethics policies and procedures for defining and addressing possible and actual conflicts of interest among the organization and its board members, officers, and employees with respect to transactions in which an authority is or may be interested.
*(Act 2009-337, p. 569, §9.)*
##### **§ 11-92B-10** Powers and Duties of Authority {#sec-11-92b-10 omnilex-key=us-al-statutes--title-11--11-92B-10}
An authority shall have the following powers and duties together with all powers and duties incidental thereto or necessary to the discharge thereof:
(1) To sue or be sued and to prosecute and defend in any court of competent jurisdiction.
(2) To adopt and to use a corporate seal and to alter the seal at pleasure.
(3) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(4) With respect to property within the operational area of the authority, to acquire, receive, and take title to by purchase, gift, lease, devise, or otherwise, to hold, keep, improve, maintain, and impose restrictive covenants and land use controls, to engage in environmental remediation and restoration efforts as required under applicable agreements with the United States Department of Defense, to equip, furnish, develop, and to transfer, convey, donate, sell, lease, grant options to, assign, encumber with easements and mortgages and other security agreements, or otherwise convey or dispose of property of every kind and character, real, personal, mixed, tangible, and intangible, and any interest therein, to any person, with the authority receiving adequate consideration, as solely determined by the authority upon the authority’s consideration of tangible and intangible factors in determining if adequate consideration is to be received by the authority.
(5) To make, enter into, and execute such contracts, agreements, cooperative agreements, leases, loan agreements, orders, mortgages, deeds, and other legal arrangements and to take such actions as may be necessary or convenient in the furtherance of any purpose of the authority or in the exercise of any power granted to the authority. Neither the county of incorporation nor any municipality whose corporate limits lie in whole or in part within the operational area of the authority, nor any member of the governing body of or any officer of the county of incorporation or any such municipality, shall be liable for the repayment of any indebtedness of the authority incurred pursuant to this subdivision.
(6) To borrow money for any authority purpose, function, or use and to issue in evidence of the borrowing, bonds, notes, warrants, or other debt obligations, hereinafter referred to in this chapter as bonds, including, without limitation, refunding bonds.
(7) To pledge for the payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable and to execute and deliver security for the bonds and obligations, mortgages, deeds of trust, trust indentures, and pledge indentures as provided for by law.
(8) To provide for such insurance as the authority may deem advisable.
(9) To invest any of its funds deemed by the authority not to be needed presently in the operation of its properties and undertakings in bonds, bills, notes, or other obligations of the United States of America or any agency thereof, bonds of the state, bonds of any county or municipality within the state, interest bearing deposits in banks and savings and loan institutions, any obligations in which a state chartered savings and loan association may invest its funds, any agreement to repurchase any of the foregoing, or any combination thereof.
(10) To contract, cooperate, or both, with the United States of America or any agency or instrumentality thereof, or any state and any agency, instrumentality, or political subdivision thereof, or any other authority or authorities.
(11) To accept gifts, grants, bequests, or devises of money and tangible and intangible property consistent with the purposes and powers of the authority.
(12) To convey property for public purposes including, but not limited to, recreational, artistic, and cultural endeavors, with or without consideration, to the state and its agencies and instrumentalities, the United States of America and its agencies and instrumentalities, the county of incorporation, municipalities whose corporate limits lie in whole or in part within the operational area, or other public corporations, or their successors, and to dedicate roadways, parks, easements, and other public facilities.
(13) To apply for and accept from any federal, state, county, or municipal government or agency or any other public or private source, loans, grants, guarantees, or other financial assistance in furtherance of the authority’s purposes under such conditions as may be provided by the source.
(14) To enter into agreements with the federal government or any agency thereof to use its facilities or its services in order to carry out the public purposes of the authority.
(15) To contract with the state, its agencies or institutions, or any county or local government for the use by the authority of any facilities or services or to contract or to provide any facilities or services to the state, its agencies or institutions, or any county or local government entity.
(16) To extend credit or make loans to any person, corporation, partnership, or other entity for all or part of the costs of any project which substantially advances or enhances the development and reuse of the former military installation property. The credit or loans extended may be secured by a loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument, or by a rental, or by revenues, fees, or charges, upon such terms and conditions as the authority shall determine to be reasonable. The agreement may include a provision for the establishment and maintenance of reserve funds. In the exercise of powers granted herein, the authority may include in any such loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument requirements for guaranty of any obligations, insurance, construction, use, operation, maintenance, and financing of the project, and such other terms and conditions as the authority may deem necessary or desirable.
(17) To appoint, employ, contract with, and compensate such employees, agents, engineers, auditors, attorneys, underwriters, issuers of letters of credit, depositories, banks, trustees, remarketing agents, rating agencies, insurers, and guarantors of its debt obligations, providers of other forms of credit enhancement for its debt obligations, contractors, consultants, and fiscal advisors, as the board shall deem necessary for the conduct of the business of the authority.
(18) To make or contract for long-range plans or proposals for economic development or environmental restoration.
(19) To make surveys and other economic analyses.
(20) To plan, undertake, and complete environmental restoration and to engage in environmental remediation of property.
(21) To grant and receive indemnities.
(22) To require by lease, contract, or agreement the payment of fees in lieu of ad valorem taxes designated for educational and other purposes to be levied by the county of incorporation and municipalities whose corporate limits lie in whole or in part within the operational area, for distribution to such public persons, respectively, as if these payments are ad valorem taxes.
(23) To exercise any power granted by the laws of this state to a public or private corporation which is not in conflict with the purposes of the authority.
(24) To do all things necessary or convenient to carry out the purposes and powers conferred by this chapter.
*(Act 2009-337, p. 569, §10.)*
##### **§ 11-92B-11** Accounting {#sec-11-92b-11 omnilex-key=us-al-statutes--title-11--11-92B-11}
An authority shall hire an independent certified public accounting firm to examine its books and records and render a written audit report annually.
*(Act 2009-337, p. 569, §11.)*
##### **§ 11-92B-12** Bonds of the Authority {#sec-11-92b-12 omnilex-key=us-al-statutes--title-11--11-92B-12}
(a) Bonds of an authority shall be signed by the chair or vice chair and attested to by the secretary or assistant secretary. The seal of an authority shall be affixed thereto. A facsimile of the signature of the officers may be printed or otherwise reproduced on any such bonds in lieu of being manually subscribed thereon, and a facsimile of the seal of an authority may be printed or otherwise produced on any such bonds in lieu of being manually affixed thereto, provided that the bonds have been manually authenticated by a transfer agent of the bonds issued. Delivery of the bonds so executed shall be valid notwithstanding any subsequent changes in officers or in the seal of an authority.
(b) Bonds may be executed and delivered by an authority at any time. The bonds shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest or no interest, shall be payable at such times, and shall be payable and secured by such revenues, funds, assets, pledges, agreements, or other property, and evidenced in such manner, and may contain such other provisions not inconsistent with this chapter as may be provided by resolution of the board. The bonds may bear interest at a fixed or variable rate. An authority may issue tender bonds or similar bonds and enter into appropriate remarketing agreements with respect to any of its bonds and the determination of the rate of interest borne by the bonds. The bonds of an authority may be sold at either public or private sale in the manner, at the price, and at the time as determined by the board to be most advantageous.
(c) The proceeds from the sale of any bonds shall be applied as provided in the proceedings of an authority or agreement authorizing the bonds to be issued, including, without limitation, the payment of all legal, fiscal, recording, and other fees and expenses incurred in connection with the authorization, sale, and issuance of the bonds and, if provided in the proceedings or agreement, interest on the bonds. An authority may provide for the funding of a debt service reserve, a replacement and reserve, or both, and for letters of credit, bond insurance, guaranties, and other forms of credit enhancement from the proceeds of its bonds or from other funds.
(d) The bonds shall be legal investments for funds of the Teachers’ Retirement System of Alabama, the Employees’ Retirement System of Alabama, and the State Insurance Fund.
(e) Public persons other than members of an authority or its appointing bodies may invest in any bond issued by the authority.
(f) Upon the adoption by the board of any resolution providing for the issuance of bonds, the board shall cause to be published once a week for two consecutive weeks in a newspaper of general circulation published in the county of incorporation a notice in substantially the following form at the end of which shall be printed the name and title of the chair, vice chair, secretary, or assistant secretary of the authority: “____________ Development Authority, a public corporation under the laws of the State of Alabama, on the ____ day of _______, authorized the issuance of not more than $ ___ principal amount of [insert the appropriate designation describing the bonds, notes, warrants, or other debt obligations] of the authority for purposes authorized in Chapter 92B, Subtitle 3, Title 11, Code of Alabama 1975. Any action or proceeding questioning the validity of the bonds, any pledge or mortgage to secure the same, any lease or sale of any project to be financed by the bonds, or the proceedings authorizing the same must be commenced within 20 days after the first publication of this notice.” Any action in any court to set aside or question the issuance of the bonds notice, or to contest the validity of the bonds or of any pledge or mortgage made therefor or of any lease or sale of any project to be financed by the bonds must be commenced within 20 days after the first publication of the notice. After the expiration of the 20 days, no cause of action, counterclaim, setoff, or defense questioning the validity of the bonds, or of the pledge, mortgage, lease, or sale of the project to be financed by the bonds shall be asserted, nor shall the validity of the bonds, or of the pledge, mortgage, lease, or sale of the project to be financed by the bonds be open to question in any court on any ground whatsoever except in an action that was commenced within the 20-day period.
*(Act 2009-337, p. 569, §12.)*
##### **§ 11-92B-13** Liability for Indebtedness {#sec-11-92b-13 omnilex-key=us-al-statutes--title-11--11-92B-13}
Neither the county of incorporation nor any municipality whose corporate limits lie in whole or in part within the operational area of the authority, nor any member or officer of the county of incorporation or any such municipality, shall be liable for the payment of any indebtedness of the authority or for the performance of any pledge, mortgage, obligation, bond, or agreement of any kind whatsoever which may be undertaken by the authority. No indebtedness of an authority, pursuant to any of its agreements or obligations shall be construed to constitute an indebtedness of the county of incorporation or any municipality within the meaning of any law whatsoever, unless the county of incorporation or municipality shall expressly obligate itself thereto.
*(Act 2009-337, p. 569, §13.)*
##### **§ 11-92B-14** Liability for Injuries {#sec-11-92b-14 omnilex-key=us-al-statutes--title-11--11-92B-14}
An authority shall not be liable for damages for injury done to any person or corporation, unless the injury was done due to the negligence or wantonness of an agent, officer, or employee of the authority while engaged in work for the authority and while acting in the line and scope of his or her duty, or unless the injury was done due to the neglect, carelessness, or failure to remedy a defect in the streets, alleys, drainage systems, or buildings of the authority after the authority had been given notice of the defect or after the defect had existed for such an unreasonable length of time as to raise a presumption of knowledge of the defect on the part of the authority. Whenever an authority shall be made liable for damages by reason of the unauthorized or wrongful acts or negligence or carelessness of any person or corporation, then the person or corporation shall be liable to an action on the same account by the party so injured.
*(Act 2009-337, p. 569, §14.)*
##### **§ 11-92B-15** Liability of Board Members {#sec-11-92b-15 omnilex-key=us-al-statutes--title-11--11-92B-15}
Members of the board shall not be subject to civil liability arising from the conduct of the affairs of an authority except when the act or omission of the member of the board amounts to willful or wanton misconduct, fraud, or gross negligence. Members of the board shall be entitled to all defenses available under the doctrines of substantive immunity and discretionary function immunity. It is the intent of this section to grant members of the board the full immunity provided noncompensated officers by Section 10-11-3.
*(Act 2009-337, p. 569, §15.)*
##### **§ 11-92B-16** Disposition of Funds {#sec-11-92b-16 omnilex-key=us-al-statutes--title-11--11-92B-16}
No part of the net earnings of an authority remaining after payment of its expenses shall inure to the benefit of any private entity or person.
*(Act 2009-337, p. 569, §16.)*
##### **§ 11-92B-17** Participation in Employees’ Retirement System {#sec-11-92b-17 omnilex-key=us-al-statutes--title-11--11-92B-17}
An authority, by resolution legally adopted to conform to rules prescribed by the Board of Control of the Employees’ Retirement System, may elect to have its officers and employees become eligible to participate in the Employees’ Retirement System.
*(Act 2009-337, p. 569, §17.)*
##### **§ 11-92B-18** Oversight Committee {#sec-11-92b-18 omnilex-key=us-al-statutes--title-11--11-92B-18}
The affairs and operations of an authority shall be supervised and monitored by an oversight committee. The committee shall be composed of all the members of the legislative delegation from the county of incorporation, as well as the members of the governing bodies of the county of incorporation and all municipalities whose corporate limits lie in whole or in part within the operational area of the authority. The chair of the oversight committee shall be a member of the legislative delegation elected by the oversight committee. The oversight committee shall meet not less often than semiannually, and otherwise at the call of its chair or a majority of its membership. The approval of the oversight committee shall not be essential to the validity of any action taken by the board in the exercise of any of the powers granted an authority in this chapter. The oversight committee shall be dissolved upon the dissolution of the authority.
*(Act 2009-337, p. 569, §18.)*
##### **§ 11-92B-19** Conveyances to and from Predecessor Entities {#sec-11-92b-19 omnilex-key=us-al-statutes--title-11--11-92B-19}
All conveyances to and from any predecessor entity of an authority, which entity has been or is ruled invalid by any Alabama court, before April 30, 2009, are approved, ratified, validated, and confirmed, and shall be deemed fully effective for all purposes according to the terms of the instruments of conveyance. As April 30, 2009, all real property held of record in the name of any predecessor entity of an authority, which has been or is ruled invalid by any Alabama court, shall be transferred and conveyed to the authority, if the authority’s operational area includes the location of the real property, and all personal property, both tangible and intangible, if any, held in the name of such predecessor entity shall likewise be transferred and conveyed to the authority. All conveyances and transfers of property pursuant to this section are subject to all terms, provisions, and conditions in contracts, agreements, and instruments applicable to the property, and concerning the property and its use. All conveyances, transfers, instruments, and acts of any successor to the predecessor entity of an authority, pursuant to this section, are hereby approved, ratified, validated, and confirmed.
*(Act 2009-337, p. 569, §19.)*
##### **§ 11-92B-20** Dissolution of Authority {#sec-11-92b-20 omnilex-key=us-al-statutes--title-11--11-92B-20}
(a) If it is determined that it is not possible for an authority to achieve all of the purposes for which the authority was formed, the authority may be dissolved by adoption by the board of a resolution that does all of the following:
(1) Determines that it is not possible to achieve all of the purposes for which the authority was formed.
(2) Determines that either all debts and obligations of the authority have been fully paid or extinguished or that adequate provision has been made for one or more successors to accept or assume all remaining debts and obligations of the authority, if any, pursuant to a plan of distribution provided for in its articles of incorporation.
(3) Recommends its dissolution.
(b) If it is determined that an authority has achieved all the purposes for which the authority was formed, the authority shall be dissolved by adoption by the board of a resolution that does all of the following:
(1) Determines that it has achieved all of the purposes for which the authority was formed.
(2) Determines that either all debts and obligations of the authority have been fully paid or extinguished or that adequate provision has been made for one or more successors to accept or assume all remaining debts and obligations of the authority, if any, pursuant to a plan of distribution provided for in its articles of incorporation.
(3) Recommends its dissolution.
(c) A dissolution under subsection (a) or (b) is only effective upon approval by the county of incorporation and all municipalities whose corporate limits lie in whole or in part within the operational area of an authority.
(d) Upon receiving the necessary approvals from the county of incorporation and all municipalities, the chair and secretary of the authority shall execute a certificate of dissolution reciting that resolutions have been adopted and that the authority has been dissolved. The certificate of dissolution shall be filed with the office of the judge of probate, who shall record the certificate in an appropriate book. In the event that the authority owns any assets or property at the time of dissolution, whether voluntary or involuntary, title to all its assets and property shall thereupon vest as provided in the articles.
*(Act 2009-337, p. 569, §20.)*
##### **§ 11-92B-21** Exemption from Taxation {#sec-11-92b-21 omnilex-key=us-al-statutes--title-11--11-92B-21}
An authority, including, without limitation, its property, its income, the bonds and other securities issued by the authority, the interest applicable thereto, and the income therefrom, and all mortgages, indentures, and other instruments executed as security therefor, and all deeds and other documents delivered to or by the authority shall be exempt from all state and local taxation, except sales and use tax, but including, without limitation, any license or excise taxes imposed on the authority for the privilege of engaging in any of the activities in which the authority may engage. An authority shall not be obligated to pay any fees, taxes, or costs to the judge of probate in connection with the recording or filing of any deed or document. Except as provided in this section, nothing in this chapter shall be construed to:
(1) Exempt any person, individual, corporation, association, or entity from otherwise applicable state, county, and municipal taxes, including, without limitation, city and county ad valorem taxes and sales and use taxes.
(2) Limit or impair the taxing authority of the state, the county of incorporation, or any municipality therein, including, without limitation, the application of existing taxes such as city and county sales and use taxes levied on retail sales within the authorized operational area of the authority, or any taxes that may be levied in the future.
*(Act 2009-337, p. 569, §21.)*
##### **§ 11-92B-22** Conveyance of Property by County or Municipality {#sec-11-92b-22 omnilex-key=us-al-statutes--title-11--11-92B-22}
Subject to acceptance by an authority, the county of incorporation and any municipality therein may convey to an authority, with or without consideration, any real, personal, mixed, tangible, or intangible property or assets that comprised all or part of the property of a closed military installation.
*(Act 2009-337, p. 569, §22.)*
##### **§ 11-92B-23** Exemption from Usury Laws {#sec-11-92b-23 omnilex-key=us-al-statutes--title-11--11-92B-23}
An authority shall be exempt from all general laws of the state governing usury or prescribing or limiting interest rates, including, without limitation, Chapter 8 of Title 8, as amended or replaced.
*(Act 2009-337, p. 569, §23.)*
##### **§ 11-92B-24** Exemptions from Competitive Bidding {#sec-11-92b-24 omnilex-key=us-al-statutes--title-11--11-92B-24}
An authority and all contracts made by it shall be exempt from the provisions and requirements of Sections 41-16-50 to 41-16-63, inclusive, as amended or replaced, requiring competitive bids in connection with certain contracts.
*(Act 2009-337, p. 577, §24; Act 2014-342, p. 1279, §1.)*
##### **§ 11-92B-25** Sale or Lease of Certain Real Property by State {#sec-11-92b-25 omnilex-key=us-al-statutes--title-11--11-92B-25}
Notwithstanding any provision of law to the contrary, an authority shall not be subject to Article 3, commencing with Section 9-15-70, of Chapter 15 of Title 9, as amended or replaced, regardless of the prior ownership of any property or interest therein to be disposed of in any fashion by the authority.
*(Act 2009-337, p. 569, §25.)*
##### **§ 11-92B-26** Awarding Authority {#sec-11-92b-26 omnilex-key=us-al-statutes--title-11--11-92B-26}
An authority shall be considered an awarding authority within the meaning of Title 39, as amended or replaced, and shall comply with all public works bid laws and other requirements applicable to an awarding authority.
*(Act 2009-337, p. 569, §26.)*
##### **§ 11-92B-27** Open Meetings {#sec-11-92b-27 omnilex-key=us-al-statutes--title-11--11-92B-27}
An authority shall be subject to the Open Meetings Act, Chapter 25A of Title 36, as amended or replaced, and all public records requirements of the state, including those of Chapter 12 of Title 36, as amended or replaced.
*(Act 2009-337, p. 569, §27.)*
##### **§ 11-92B-28** Diversity Requirements {#sec-11-92b-28 omnilex-key=us-al-statutes--title-11--11-92B-28}
Notwithstanding any other provisions of this chapter, the members of the board, all employees, and any contracts entered into by an authority and any personnel hired for issuance of bonds by an authority shall reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.
*(Act 2009-337, p. 569, §28.)*
### **Chapter 92C** Local Redevelopment Authorities
##### **§ 11-92C-1** Legislative Intent {#sec-11-92c-1 omnilex-key=us-al-statutes--title-11--11-92C-1}
The redevelopment, revitalization, and redevelopment of land contiguous with a U.S. Air Force military installation operating within any municipality or county in this state, whether operational or formerly operational, promotes the public good by encouraging the initial development, redevelopment, and revitalization of the land, and the retention of U.S. Air Force military installations within the state. It is therefore in the public interest and is vital to the public welfare of the people of Alabama, and it is declared to be the public purpose of this chapter, to develop, revitalize, and redevelop land contiguous with United States military installations throughout the State of Alabama.
*(Act 2020-72, §1.)*
##### **§ 11-92C-2** Definitions {#sec-11-92c-2 omnilex-key=us-al-statutes--title-11--11-92C-2}
For the purposes of this chapter, the following words have the following meanings:
(1) APPLICANT. A natural person who files a written application with the governing body of any authorizing subdivision in accordance with Section 11-92C-3.
(2) AUTHORITY. Any local redevelopment authority organized pursuant to this chapter.
(3) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of any authorizing subdivision in accordance with Section 11-92C-3, which authorizes the incorporation of the authority.
(4) AUTHORIZING SUBDIVISION. Any county or municipality that has adopted an authorizing resolution.
(5) BOARD. The board of directors of an authority.
(6) BONDS. Any bonds, notes, certificates, or any other form of indebtedness representing an obligation to pay money.
(7) CONTIGUOUS. Two or more tracts of land if touching for a continuous distance of not less than 200 feet. The term shall include tracts of land divided by bodies of water, streets, railroads, or utility rights-of-way, or by land owned by a governmental entity. In determining whether land is contiguous with a U.S. Air Force military installation, either of the following is contiguous:
a. Land that is separated by bodies of water, streets, railroads, or utility rights-of-way shall be deemed to be contiguous even though the bodies of water, streets, railroads, or utility rights-of-way are outside of the geographical area of the applicable U.S. Air Force military installation.
b. Land that is separated by other land that is owned by a governmental entity.
(8) COOPERATIVE DISTRICT. An incorporated capital improvement cooperative district formed in accordance with and for the purposes set forth in Chapter 99B of Article 2 of Title 11.
(9) COUNTY. Any county in the state.
(10) DIRECTOR. A member of the board of an authority.
(11) GOVERNING BODY. With respect to any municipality, its city council or other governing body; with respect to any county, its county commission or other governing body.
(12) INCORPORATORS. The persons forming a public corporation organized pursuant to this chapter.
(13) LOCAL REDEVELOPMENT AREA. Land contiguous with an active U.S. Air Force military installation located and operating within this state, totaling not more than 150 square acres in geographical size, all as set forth in the application required to be filed in accordance with Section 11-92C-3.
(14) MILITARY INSTALLATION. A federal military installation active on March 31, 2020, that is funded in whole or in part by the United States Department of Defense and operated by the U.S. Air Force. The term does not include any and all armories, buildings, target ranges, and other necessary facilities for the proper housing, instruction, training, and administration of all units and headquarters of the National Guard and Naval Militia of Alabama.
(15) MUNICIPALITY. Any incorporated city or town within this state.
(16) PERSON. Unless limited to a natural person by the context in which it is used, the term includes a public or private corporation, a municipality, a county, the state, or an agency, department, or instrumentality of the state, a county, or a municipality.
(17) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of the proceedings of the board of an authority are kept.
(18) PRIVATE USER. A lessee, manager, non-governmental user, or any person relating to the planning, development, construction, operation, management, or maintenance of a project.
(19) PROJECT. Interests in land, buildings, structures, facilities, or other improvements located or to be located within the local redevelopment area, and any fixtures, machinery, equipment, furniture, or other property of any nature whatsoever used on, in, or in connection with the land, interest in land, building, structure, facility, or other improvement, all for the essential public purpose of the development of trade, entertainment, amusement, commerce, industry, or employment opportunities in the local redevelopment area. The term includes projects in the local redevelopment area for any industrial, commercial, entertainment or amusement, business, office, parking, utility, residential, including, without limitation, homes, apartments, town houses, condominiums, hotels, motels, or assisted living facilities, or other use; provided both of the following are met:
a. Capital expenditures for development of the project within the local redevelopment area equal or exceed twenty-five million dollars ($25,000,000).
b. A majority of the members of the authority determine, by a resolution duly adopted, that the project and use thereof would facilitate the retention, development, or redevelopment of an active U.S. Air Force military installation or the area contiguous to the military installation, as well as further the public purpose of this chapter.
(20) STATE. The State of Alabama.
*(Act 2020-72, §2.)*
##### **§ 11-92C-3** Filing of Application; Authorization of Incorporation by Governing Body of an Authorizing Subdivision {#sec-11-92c-3 omnilex-key=us-al-statutes--title-11--11-92C-3}
(a) An authority may be organized pursuant to this chapter. In order to incorporate a public corporation, any number of natural persons, not less than three, who are duly qualified electors of the authorizing subdivision, shall first file a written application with the governing body of the authorizing subdivision, which shall contain all of the following:
(1) A statement that the applicants propose to incorporate the authority pursuant to this chapter.
(2) A statement of the proposed location of the principal office of the authority, which shall be within the corporate limits of a municipality or geographical limits of a county.
(3) A general description of the proposed project.
(4) A map or legal description or other description of the proposed local redevelopment area.
(5) A statement that each of the applicants is a duly qualified elector residing in the authorizing subdivision.
(6) A request that the governing body of the authorizing subdivision adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-92C-4.
(7) A signed letter of authorization from the Governor and the Chair of the Alabama Job Creation and Military Stability Commission designating the project as a project eligible for the benefits of this chapter.
(b)(1) Every application shall be accompanied by supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application in accordance with this section, the governing body of the authorizing subdivision shall review the contents of the application, and shall adopt a resolution either:
a. Denying the application.
b. Declaring that its approval of the application will benefit the authorizing subdivision, as applicable, and will facilitate the retention, development, or redevelopment of an existing military installation or area contiguous to the military installation, and that the proposed authority be formed and authorizing the applicants to proceed to form the proposed authority by filing for record of a certificate of incorporation in accordance with Section 11-92C-4.
(2) The governing body with which the application is filed shall also include a copy of the application in the minutes of the meeting of the governing body at which final action upon the application is taken.
*(Act 2020-72, §3.)*
##### **§ 11-92C-4** Procedure to Incorporate; Contents and Execution of Certificate of Incorporation {#sec-11-92c-4 omnilex-key=us-al-statutes--title-11--11-92C-4}
(a) Within 40 days following the adoption of the authorizing resolution, the applicants shall proceed to incorporate the authority by filing for record in the office of the judge of probate of the county in which the proposed local redevelopment area is located a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner provided in this section.
(b) The certificate of incorporation of an authority shall state all of the following:
(1) The names of the persons forming the authority, and that each of them is a duly qualified elector residing in the authorizing subdivision.
(2) The name of the authority, which shall include the local redevelopment authority.
(3) A general description of the proposed project.
(4) The period for the duration of the authority; subject to Section 11-92C-20, if the duration is to be perpetual, that fact shall be stated.
(5) The name of the authorizing subdivision, together with the date on which the governing body thereof adopted the authorizing resolution.
(6) The location of the principal office of the authority, which shall be within the corporate limits of the municipality or within the geographical limits of the county, as applicable.
(7) That the authority is organized pursuant to the provisions of this chapter.
(8) A map, legal description, or other description describing the geographical area of the local redevelopment area.
(9) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of this state.
(c) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of this state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it all of the following:
(1) A copy of the application as filed with the governing body of the authorizing subdivision in accordance with Section 11-92C-3.
(2) A certified copy of the authorizing resolution adopted by the governing body of the authorizing subdivision.
(3) A certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of this state or so nearly similar thereto as to lead to confusion and uncertainty.
(d) Upon the filing for record of the certificate of incorporation and the documents required by subsection (c), the authority shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation. The judge of probate shall send notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Act 2020-72, §4.)*
##### **§ 11-92C-5** Amendments to Certificate of Incorporation {#sec-11-92c-5 omnilex-key=us-al-statutes--title-11--11-92C-5}
(a) The certificate of incorporation of an authority incorporated under this chapter may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall set forth in full in the resolution. The amendment may include any matters which might have been included in the original certificate of incorporation.
(b) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of an authority, the chair of the board and the secretary of the authority shall sign and file a written application in the name of and on behalf of the authority, under its seal, with the governing body of the authorizing subdivision, requesting the governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with documents in support of the application as the chair may consider appropriate. As promptly as may be practicable after the filing of the application with the governing body of the authorizing subdivision pursuant to this subsection, the governing body shall review the application and shall adopt a resolution either denying the application or authorizing the proposed amendment. The governing body shall also cause to be made a part of the minutes of the meeting of the governing body at which final action upon the application is taken.
(c) Within 40 days following the adoption by the governing body of the authorizing subdivision of a resolution approving the proposed amendment, the chair of the board of the authority and the secretary of the authority shall sign and file a certificate for record in the office of the judge of probate of the county of incorporation in the name of and on behalf of the authority under its seal reciting the adoption of the respective resolutions by the board and by the governing body and setting forth the proposed amendment. The judge of probate for the county shall record the certificate in an appropriate book in his or her office. When the certificate has been filed and recorded, the amendment shall become effective and the certificate of incorporation shall be amended to the extent provided in the amendment. No certificate of incorporation of the authority shall be amended except in the manner provided in this section.
*(Act 2020-72, §5.)*
##### **§ 11-92C-6** Board of Directors to Govern Each Authority {#sec-11-92c-6 omnilex-key=us-al-statutes--title-11--11-92C-6}
(a) All powers of an authority shall be exercised by the board or pursuant to its authorization. The board shall consist of three or more directors, who shall be elected by the governing body of the authorizing subdivision for staggered terms as provided in this section.
(b) At the time of the election of the first board, the governing body of the authorizing subdivision shall divide the directors into three groups containing as nearly equal whole numbers as may be possible. The governing body of the authorizing subdivision shall specify for which term each director is elected. The initial term of office of the first group shall be two years. The initial term of office of the second group shall be four years. The initial term of office of the third group shall be six years.
(c) Thereafter, the term of office of each director shall be six years. If at the expiration of any term of office of any director a successor has not been elected, the director whose term of office has expired shall continue to hold office until his or her successor has been elected. If at any time there is a vacancy on the board, a successor director shall be elected by the governing body of the authorizing subdivision to serve for the unexpired term applicable to the vacancy.
(d) Each director shall be a duly qualified elector residing in the authorizing subdivision. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him or her in and about the performance of his or her duties. Except as provided in the preceding sentence, no director shall be compensated for serving as a director of the authority.
(e) Any director of an authority may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama of 2022, and the general laws of the state for impeachment and removal of the officers.
*(Act 2020-72, §6.)*
##### **§ 11-92C-7** Officers of Authority {#sec-11-92c-7 omnilex-key=us-al-statutes--title-11--11-92C-7}
The officers of an authority shall consist of a chair, vice chair, secretary, treasurer, and other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may, but need not, be held by the same person. The chair and vice chair of an authority shall be elected by the board from the membership thereof; the secretary, the treasurer, and any other officers of the authority may be members of the board and shall also be elected by the board. The chair, vice chair, secretary, and treasurer of an authority shall also be the chair, vice chair, secretary, and treasurer of the board, respectively.
*(Act 2020-72, §7.)*
##### **§ 11-92C-8** Powers of Authority; Annual Report of Certain Payments in Lieu of Taxes {#sec-11-92c-8 omnilex-key=us-al-statutes--title-11--11-92C-8}
(a) The authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time, which may be in perpetuity, subject to Section 11-92C-20, specified in its certificate of incorporation.
(2) To sue and be sued in its own name and to prosecute and defend civil actions in any court having jurisdiction of the subject matter and of the parties; provided, that the authority shall be deemed to be a governmental entity as defined in Chapter 93 of this title for the purpose of limiting the damages for which the authority may be liable.
(3) To adopt and make use of a corporate seal and to alter the seal at its pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise, and to refinance existing indebtedness on, improve, maintain, equip, and furnish one or more projects, including all real and personal properties which the board of the authority may deem necessary in connection therewith, regardless of whether or not the projects shall then be in existence.
(6) To lease to others any or all of its projects and to share and collect rent thereof, and to terminate any lease upon the failure of the lessee to comply with any of the obligations thereof.
(7) To sell, exchange, donate, or convey and to grant options to any lessee to acquire any of its projects and any or all of its properties if the board finds that action is in furtherance of the purposes for which the authority was organized.
(8) To issue its bonds for the purpose of carrying out any of its powers.
(9) To mortgage and pledge any or all of its projects, or any part or parts thereof, as security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof.
(10) To execute and deliver, in accordance with this section and Section 11-92C-9, mortgages and deeds of trust and trust indentures, or either.
(11) To finance, by loan, bond, grant, lease, or otherwise, construct, erect, assemble, purchase, acquire, own, repair, remodel, renovate, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage projects and to pay the costs of any project from the proceeds of bonds, or any other funds of the authority, or from any contributions or loans by persons, corporations, partnerships, either general or limited, or other entities, all of which the authority is hereby authorized to receive, accept, and use.
(12) To issue and use the proceeds of any bonds or other indebtedness thereof for the purpose of paying or loaning the proceeds thereof to pay all or any part of the cost of any project and otherwise to further or carry out the public purpose of the authority and to pay all costs of the authority incident to, or necessary and appropriate to, furthering or carrying out such purpose.
(13) To make application directly or indirectly to any federal, state, county, or municipal government or agency or to any other source, public or private, for loans, grants, guarantees, or other financial assistance in furtherance of the authority’s public purpose and to accept and use the same upon the terms and conditions as are prescribed by the federal, state, county, or municipal government or agency or other source.
(14) To enter into agreements with the federal government or any agency thereof to use facilities or the services of the federal government or any agency thereof in order to further carry out the purposes of the authority.
(15) To contract for any period with this state, state institutions, or any city, town, municipality, or county of the state for the use by the authority of any facilities or services of the state or any state institution, city, town, municipality, or county, or for the use by any state institution or any city, town, municipality, or county of any facilities or services of the authority, provided the contracts deal with activities and transactions as the authority and any political subdivision with which the authority contracts are by law authorized to undertake.
(16) To extend credit or make loans to any person, corporation, partnership, either general or limited, or other entity for the costs of any project or any part of the costs of any project, which credit or loans may be evidenced or secured by loan agreements, notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or other instruments, or by rentals, revenues, fees, or charges, upon the terms and conditions as the authority shall determine to be reasonable in connection with the extension of credit or loans, including provision for the establishment and maintenance of reserve funds, and, in the exercise of powers granted hereby in connection with any project, the authority may require the inclusion in any loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument of the provisions or requirements for guaranty of any obligations, insurance, construction, use, operation, maintenance, and financing of a project, and other terms and conditions, as the authority may deem necessary or desirable.
(17) To acquire, accept, or retain equitable interests, security interests, or other interests in any real property, personal property, or fixtures by loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance, contract, lien, loan agreement, or other consensual transfer in order to secure the repayment of any monies loaned or credit extended by the authority.
(18) To appoint, employ, contract with, and provide for the compensation of officers, employees, and agents, including, without limitation, engineers, attorneys, contractors, consultants, and fiscal advisors, as the board shall deem necessary for the conduct of the business of the authority.
(19) To provide the insurance as the board may deem advisable.
(20) To make, enter into, and execute contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted in this chapter.
(21) To require payments in lieu of tax, to be administered in a parallel manner to state transient occupancy, ad valorem, sales, and use taxes, to be made by any private user of the project to the authority, a cooperative district of which the authority is a member, any municipality, or any county, as the case may be, and to enter into any agreements requiring any person to make a payment in lieu of taxes and to enforce the payment in lieu of taxes with all rights of a tax assessor or tax collector within this state collecting transient occupancy, ad valorem taxes, or sales taxes due to the governing body establishing the authority.
(22) To receive and use, or cause any cooperative district of which the authority is a member to receive and use, the proceeds of any tax, fee, charge, or payment in lieu of tax to pay the costs of any project or for any other purpose for which the authority may use its own funds pursuant to this chapter.
(23) To encourage and promote the retention, development, and redevelopment of any military installation or the improvement and revitalization of the local redevelopment area and to make, contract for, or otherwise cause to be made long-range plans or proposals for the local redevelopment area in cooperation with the authorizing subdivision.
(24) To exercise any power granted by the laws of this state to public or private corporations, not to include the power of eminent domain, which is not in conflict with the public purpose of the authority.
(25) To do all things necessary or convenient to carry out the powers conferred by this chapter. Nothing in this chapter shall affect any right, title, or interest in real or personal property, whether recorded or unrecorded, that is held by any person or entity engaged in providing utility services.
(26) To enter into agreements with a private user.
(27) To pursue any tax liens relating to the failure of any person to make any payments in lieu of tax.
(28) To acquire, receive, and take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, whether located in one or more counties or municipalities.
(29) To make, enter into, and execute licenses, contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted under this section.
(30) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate a project or projects or any part or combination of any thereof, whether located in one or more counties or municipalities, and to acquire franchises and easements deemed necessary or desirable in connection therewith.
(31) To assume obligations secured by a lien on or payable out of or secured by a pledge of the revenues from any project or any part thereof that may be acquired by the authority, any obligation so assumed to be payable by the authority solely out of the revenues derived from the operation of any project or any thereof of the authority, or any other sources of revenue, taxes, fees, or payments in lieu of tax.
(32) To pledge for payment of any bonds issued or obligations assumed by the authority any revenues from which those bonds or obligations are made payable as provided in this chapter.
(33) To execute and deliver trust indentures in accordance with this chapter.
(34) To appoint, employ, contract with, and provide for the compensation of officers, employees, and agents, including, but not limited to, engineers, attorneys, accountants, architects, management consultants, and fiscal advisers as the business of the authority may require.
(35) To make and enforce reasonable rules governing the use of any project managed, leased, owned, or controlled by the authority, a cooperative district of which the authority is a member, or any private users.
(36) To cooperate with the United States of America, any agency or instrumentality thereof, this state, any county, municipality, or other political subdivision of the state and any public corporation, and to make contracts with them or any of them, as the board may deem advisable to accomplish the purpose for which the authority was established.
(37) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any project of the authority.
(38) To sell and convey, with or without valuable consideration, any of its projects or any portion thereof to any one or more counties, municipalities, or public corporations which have the corporate power to operate the project or portions thereof so conveyed and the property and income of which are not subject to taxation.
(39) To enter into a management agreement or agreements with any person for the management by the authority of any project or any part thereof upon the terms and conditions as may be mutually agreeable.
(40) To fix and revise from time to time reasonable rentals, licenses, rates, fees, and other charges for the use of any project or portion thereof owned, managed, leased, or operated by the authority, a cooperative district of which the authority is a member, or any private users, and to collect all charges imposed by the foregoing.
(41) To require any users of any of its projects or any part thereof to make a reasonable deposit with the authority in advance to ensure the payment of rentals, licenses, rates, fees or charges, or costs of repair to any damage to the project and to be subject to the application to the payment thereof if and when delinquent.
(b) All projects of the authority shall be located wholly within the local redevelopment area.
(c)(1) An authority, as defined in Section 11-92C-2, shall annually report any payments received pursuant to subdivisions (a)(21) or (22) of this section to the Department of Revenue, as provided by rule of the department.
(2) The Department of Revenue shall compile and publish a summary of this information each year on its website.
(3) The Department of Revenue may adopt rules for the implementation and administration of this section.
*(Act 2020-72, §8; Act 2025-323, §§1-3.)*
##### **§ 11-92C-9** Bonds of Authority {#sec-11-92c-9 omnilex-key=us-al-statutes--title-11--11-92C-9}
(a) Source of payment. All bonds issued by an authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the board of its projects, or from any other source as may be designated in the proceedings of the board under which the bonds are authorized to be issued.
(b) Pledge of revenues, receipts, and other security. The principal and interest on any bonds issued by an authority shall be secured by a pledge of the revenues and receipts out of which the principal and interest may be payable and may be secured by a mortgage and deed of trust or trust indenture conveying as security for the bonds all or any part of the property of the authority from which the revenues or receipts so pledged may be derived.
(c) Resolutions. The resolution under which the bonds of an authority are authorized to be issued and any mortgage and deed of trust or trust indenture may contain any agreements and provisions respecting the operation, maintenance, and insurance of the property covered by the mortgage and deed of trust or trust indenture, the use of the revenues and receipts subject to the mortgage and deed of trust or trust indenture, the creation and maintenance of special funds from the revenues and receipts, the rights, duties, and remedies of the parties to any instrument and the parties for the benefit of whom the instrument is made and the rights and remedies available in the event of default as the board shall deem advisable and which are not in conflict with this chapter. Each pledge, agreement, mortgage, and deed of trust or trust indenture made for the benefit or security of any of the bonds of an authority shall continue until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.
(d) Defaults. In the event of default in payment or in any agreements of an authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust or trust indenture executed as security therefor, the rights of any holder of the bonds may be enforced by mandamus, the appointment of a receiver, or either of the remedies, and, if provided in the instrument, the mortgage, and the deed of trust, or trust indenture, may be foreclosed.
(e) Execution. All bonds issued by an authority shall be signed by the chair of the board and attested by the secretary, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chair of the board; provided, that as long as the registrar of the bonds has manually signed an authentication certificate for the bonds, facsimile signatures of both of the officers may be printed or otherwise reproduced on any bonds in lieu of each manually signing the bonds, a facsimile of the seal of the authority may be printed or otherwise reproduced on any bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chair of the board may be printed or otherwise reproduced on any interest coupons in lieu of manually signing the coupons.
(f) General provisions respecting form, interest rate, maturities, sale, and negotiability. Any bonds may be executed and delivered by an authority at any time and from time to time, shall be in the form and denominations and of the tenor and maturities, shall contain provisions not inconsistent with the provisions of this chapter, and shall bear the rate or rates of interest, payable and evidenced in the manner, as may be provided by resolution of the board. Bonds of an authority may be sold at either public or private sale in the manner and at the price or prices and at the time or times as may be determined by the board to be most advantageous. An authority may pay all expenses, premiums, and commissions in connection with any financing performed by the board. All bonds, except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by an authority shall be construed to be negotiable instruments although payable solely from a specified source.
(g) Nature of obligation and source of payment.
(1) All obligations created or assumed and all bonds issued or assumed by an authority shall be solely an obligation of the authority and shall not create an obligation or debt of the state or of any county or of any city. This subdivision shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority.
(2) Any bonds issued by an authority shall be limited or special obligations of the authority payable solely out of its revenues and receipts of the authority specified in the proceedings authorizing those bonds.
(h) Eligibility for investment. Bonds of an authority are legal investments for executors, administrators, trustees, and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority, and for savings banks and insurance companies organized under the laws of the state.
(i) Contracts to secure payment of principal and interest. As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may enter into a contract or contracts binding the authority for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any project owned by the authority or any part or parts thereof, for the imposition and collection of reasonable rates, licenses, rentals, fees, and charges for and the adoption of reasonable regulations respecting any project, for the disposition and application of the authority’s gross revenues or any part thereof, and for any other act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from the project will be sufficient to operate the project, maintain the same in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from the revenues and maintain the reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of the project, and the making of replacements thereof and capital improvements thereto. Any contract pursuant to this subsection may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any trust indenture made by the authority under this chapter.
*(Act 2020-72, §9.)*
##### **§ 11-92C-10** Proceeds from the Sale of Bonds {#sec-11-92c-10 omnilex-key=us-al-statutes--title-11--11-92C-10}
All moneys derived from the sale of any bonds issued by an authority shall be used solely for the purpose or purposes for which the same are authorized, including, but not limited to, the use of bond proceeds to establish reserve funds as security for the payment of the principal, premium, as applicable, and interest on the bonds, and any costs and expenses incidental thereto. The costs and expenses may include, but shall not be limited to the following:
(1) The underwriting, fiscal, engineering, legal, and other expenses incurred in connection with the issuance of the bonds.
(2) Except in the case of refunding bonds, interest to accrue on the bonds for a period ending not later than two years from their date.
*(Act 2020-72, §10.)*
##### **§ 11-92C-11** Refunding Bonds {#sec-11-92c-11 omnilex-key=us-al-statutes--title-11--11-92C-11}
Any bonds issued by an authority may from time to time be refunded by the issuance, sale, or exchange of refunding bonds payable from the same or different sources for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any bonds that are to be so redeemed in connection with refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with refunding. Unless duly called for redemption pursuant to provisions contained therein, the holders of any bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for refunding. Any refunding bonds may be sold by the authority at public or private sale at the price or prices as may be determined by its board to be most advantageous, or may be exchanged for the bonds or other obligations to be refunded. Any refunding bonds may be executed and delivered by the authority at any time and from time to time, shall be in the form and denominations and have the tenor and maturities, shall contain provisions not inconsistent with this chapter, and shall bear the rate or rates of interest, payable and evidenced in the manner as may be provided by resolution of its board. Any refunding bonds issued by an authority shall be issued and may be secured in accordance with Section 11-92C-9.
*(Act 2020-72, §11.)*
##### **§ 11-92C-12** Notice of Bond Resolution {#sec-11-92c-12 omnilex-key=us-al-statutes--title-11--11-92C-12}
(a) Upon the adoption by the board of an authority of any resolution providing for the issuance of bonds, the authority may publish once a week for two consecutive weeks, in a newspaper published and having general circulation in the geographical area of the authorizing subdivision, a notice in substantially the following form, the blanks properly filled in, at the end of which shall be printed the name and title of either the chair or secretary of the authority.
“The _____ Local Redevelopment Authority, a public corporation under the laws of the State of Alabama, on the _____ day of _____ authorized the issuance of $_____ principal amount of bonds of the public corporation for purposes authorized by the state law under which the public corporation was organized. Any action or proceeding questioning the validity of the bonds, or the pledge and the mortgage and deed of trust or trust indenture to secure the same, or the proceedings authorizing the same, must be commenced within 30 days after the first publication of this notice.”
(b) A newspaper shall be deemed to be published in the geographical area of the authorizing subdivision, within the meaning of this section, if its principal editorial office is located in the geographical area of the authorizing subdivision.
(c) Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in the notice or to contest the validity of any bonds, or the validity of any agreements relating to any payment in lieu of taxes, fees, charges, and any pledge and mortgage and deed of trust or trust indenture made therefor, must be commenced within 30 days after the first publication of the notice. After the expiration of that period, no right of action or defense questioning or attacking the validity of the proceedings or of the bonds or the pledge or mortgage and deed of trust or trust indenture shall be asserted, nor shall the validity of the proceedings, bonds, pledge, mortgage, and deed of trust or trust indenture be open to question in any court on any ground whatsoever except in an action commenced within that period.
*(Act 2020-72, §12.)*
##### **§ 11-92C-13** Exemption from Taxation {#sec-11-92c-13 omnilex-key=us-al-statutes--title-11--11-92C-13}
(a) Any authority formed under this chapter, a cooperative district of which the authority is a constituent member, the sales, property, and income of the authority or cooperative district, whether used by it or leased to others, all bonds issued by the authority or cooperative district, the income from the bonds or from other sources, the interest and other profits from the bonds inuring to and received by the holders thereof, conveyances by and to the authority or cooperative district of which the authority is a member, and leases, mortgages, and deeds of trust by and to the authority or the cooperative district are exempt from all taxation in the state, inclusive of any ad valorem taxes or lodgings taxes imposed by the State of Alabama, a municipality, or county. The authority is exempt from the payment of any fees, taxes, or costs to the judge of probate of any county in connection with its incorporation or with any amendment to its certificate of incorporation or otherwise or to any judge of probate of any county in connection with the recording by it of any document or otherwise. No license or excise tax may be imposed by any authority with respect to the privilege of engaging in any of the activities authorized by this chapter.
(b) An authority, any cooperative district of which an authority is a member, and any private user is exempt from the payment of all state, county, and municipal sales and use taxes relating in any way to the construction, operation, and maintenance of the project. The exemption set forth in this section may be conditioned (1) by the authorizing subdivision on a payment by the exempt party of a payment in lieu of tax; or (2) by the authority on a payment by the private user of a payment in lieu of tax pursuant to subdivision (21) of Section 11-92C-8, or by both subdivisions (1) and (2) which shall be subject to enforcement and collection like any sales and use taxes and which shall constitute a first lien on the project and shall be foreclosable in the same manner as a past due assessment pursuant to Section 11-92C-15. The exemption provided in this subsection shall apply to any cooperative district of which the authority is a constituent member, and any private user which leases, operates, or manages a project owned by the authority or cooperative district of which the authority is a member.
(c) Notwithstanding subsections (a) and (b), an authority or a cooperative district of which an authority is a member shall be subject to sales and use taxes, income tax, and ad valorem tax upon the first day of the third calendar month following 20 years after the date of the incorporation of the authority.
(d) Any payments in lieu of taxes received by an authority, as set forth in this section, shall be dedicated to the payment of bonds financing or refinancing the projects of the authority, including, but not limited to, accelerated payments and reserve payments. Any funds from the in-lieu-of tax payments remaining with the authority after all bonds financing or refinancing the projects are fully paid, in excess of the amounts necessary to fully repay the bonds, shall be transferred to the governmental entity or entities that would have received the tax revenue if not for the tax exemption and corresponding payment in lieu of tax.
*(Act 2020-72, §13.)*
##### **§ 11-92C-14** Liability of Authorizing Subdivision {#sec-11-92c-14 omnilex-key=us-al-statutes--title-11--11-92C-14}
An authorizing subdivision shall not in any event be liable for the payment of the principal of, or interest on, any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by an authority, and none of the bonds of the authority or any of its agreements or obligations shall be construed to constitute indebtedness of the authorizing subdivision within the meaning of any constitutional or statutory provision.
*(Act 2020-72, §14.)*
##### **§ 11-92C-15** Failure to Pay Past Due Assessments {#sec-11-92c-15 omnilex-key=us-al-statutes--title-11--11-92C-15}
If any user, lessee, or owner of the project fails to pay when due, with time being of the essence, any assessments or fees due under this chapter, including, but without limitation, any payments in lieu of taxes, collectively “past due assessment,” then the authorizing subdivision or authority, or their designated agents, collectively the “fee collector,” may commence proceedings to foreclose on the land and improvements of the user, lessee, or owner of the project having land within the State of Alabama, subject to the terms of any executed agreement between the fee collector and the user, lessee, or owner of the project, as follows:
(1) A fee collector shall send a letter by means of United States certified mail, return receipt requested, to the last known address of the user, owner, or lessee of the project. The address of the user, owner, or lessee as shown in the tax assessment records of the tax assessor or revenue commissioner for the county in which land of the user, owner, or lessee is located shall be sufficient.
(2) The letter shall specify that if payment of the past due assessment is not made within 10 days of the date of the letter, foreclosure proceedings may be commenced against the land of the user, owner, or lessee.
(3) Any late payment received within the 10-day period will accrue a late fee of the greater of five percent of the payment or fifty dollars ($50).
(4)a. If payment is not made within the 10-day period, the entire past due assessment shall become immediately due and payable, and the fee collector may do either of the following:
1. File a complaint in the circuit court for the county in which the property of the user, owner, or lessee is located requesting that the property be foreclosed. Thirty days following service of process, unless the past due assessment is paid in the meantime, the court shall enter a decree declaring that the property shall be sold to the highest bidder.
2. Proceed to sell the property of the user, owner, or lessee against which the past due assessment is made to the highest bidder for cash.
b. In either case, the property of the user, owner, or lessee shall be sold in the same manner and upon the same notice as provided by law for the sale of lands or property by foreclosure by power of sale for mortgages. The proceeds from the sale shall first be applied to the amount of the past due assessment and all accrued interest thereon, plus penalties specified in subdivision (3), plus the attorneys’ fees and other expenses incurred by the fee collector in the foreclosure and suit.
(5) If the fee collector concludes that no bidders are present or that all bids are insufficient, the fee collector may announce that the sale shall be continued to a later date to be announced by public notice.
(6) Upon declaring the highest bidder and receipt of the purchase price, the fee collector shall deliver a foreclosure deed to the highest bidder which shall vest therein legal title to the property sold by the foreclosure, subject to easement or other rights in the property of persons other than the user, owner, or lessee that has failed to pay the past due assessment. The user, owner, or lessee of the property shall have no right of redemption unless otherwise provided in the certificate of incorporation of the authority with respect to the past due assessment.
(7) The purchase price shall be used first for the payment of the past due assessment, then for the cost of collection, suit, foreclosure, and deed preparation, then for penalties, then for accrued interest and interest until the next principal payment date of bonds as provided in any agreement relating to the payments in lieu of taxes or as set forth in this chapter with respect to prepayments of potentially past due assessments, and then as a reserve fund until any bonds are fully paid, and only then any remaining portion shall be paid to the user, owner, or lessee of the land at the user’s, owner’s, or lessee’s last known address as shown in the records of the tax assessor or revenue commissioner with respect to the tract of land.
(8) The fee collector may bid on any sale the same as any other person, and may credit any portion of the past due assessment and other costs as a part of its bid.
(9) If the highest amount bid and accepted is insufficient to pay the entire past due assessment and to fund a reserve to fully pay any bonds of the authority, the fee collector and holders of the bonds shall have no further claim against the user, owner, or lessee of the land assessed by virtue of the past due assessment.
(10) Any foreclosure deed shall make no warranty with respect to the title to the land other than as expressly stated therein.
(11) At any point in the foreclosure proceedings, until a bid is accepted, the fee collector may waive the default on the past due assessment on terms as the fee collector may consider proper and reinstate the past due assessment, subject to any contrary terms of the fee collector’s proceedings with respect to any bonds.
(12) No suit may be brought or maintained to enjoin the collection of any past due assessments under this chapter.
*(Act 2020-72, §15.)*
##### **§ 11-92C-16** Exemption from Usury Laws {#sec-11-92c-16 omnilex-key=us-al-statutes--title-11--11-92C-16}
An authority shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, Chapter 8 of Title 8 as it may at any time be amended.
*(Act 2020-72, §16.)*
##### **§ 11-92C-17** Exemption from Competitive Bid Laws {#sec-11-92c-17 omnilex-key=us-al-statutes--title-11--11-92C-17}
An authority, a cooperative district of which the authority is a member, and any private user, and all contracts made by them are exempt from the laws of the State of Alabama requiring competitive bids for any contract to be entered into by municipalities or public corporations authorized by them or any public works, including, but without limitation to, Article 3, commencing with Section 41-16-50, of Chapter 16 of Title 41, as amended from time to time, and Chapter 2 of Title 39, as amended from time to time.
*(Act 2020-72, §17.)*
##### **§ 11-92C-18** Freedom of Authority from State Supervision and Control {#sec-11-92c-18 omnilex-key=us-al-statutes--title-11--11-92C-18}
This chapter is intended to aid the state through the furtherance of the purposes of this chapter by providing an appropriate and independent instrumentality of the state with full and adequate powers to fulfill its functions. Except as expressly provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of the authority or the amendment of its certificate of incorporation, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture, or the exercise of any other of its powers. Neither a public hearing nor the consent of Alabama State Department of Finance shall be a prerequisite to the issuance of bonds by the authority.
*(Act 2020-72, §18.)*
##### **§ 11-92C-19** Earnings of Authority {#sec-11-92c-19 omnilex-key=us-al-statutes--title-11--11-92C-19}
An authority shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event the board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of the authority, then any net earnings of the authority thereafter accruing shall be paid to the authorizing subdivision or private user for the creation and maintenance of the project.
*(Act 2020-72, §19.)*
##### **§ 11-92C-20** Dissolution of Authority and Vesting of Title to Property {#sec-11-92c-20 omnilex-key=us-al-statutes--title-11--11-92C-20}
At any time when an authority has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon filing for record of a certified copy of the resolution in the office of the judge of probate of the county in which the authority was formed pursuant to Section 11-92C-4, the authority shall stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to the authorizing subdivision or private user as required by any agreement with any private user.
*(Act 2020-72, §20.)*
##### **§ 11-92C-21** Existence of Authority Not to Prevent Subsequent Incorporation of Another Authority {#sec-11-92c-21 omnilex-key=us-al-statutes--title-11--11-92C-21}
The existence of one or more authorities incorporated under this chapter shall not prevent the subsequent incorporation under this chapter of another authority or the amendment of the certificate of incorporation of another authority pursuant to authority granted by the same county, counties, municipality or municipalities, public corporation or public corporations, or by the same combination thereof, even though the project described in the certificate of incorporation, as originally filed or amended, of any existing authority may include a project proposed by an authority that is proposed to be incorporated under this chapter or that proposes to amend its certificate of incorporation under this chapter.
*(Act 2020-72, §21.)*
##### **§ 11-92C-22** Establishment and Revision of Rentals, Licenses, Rates, Fees, and Charges for Services or Facilities Rendered by Authority {#sec-11-92c-22 omnilex-key=us-al-statutes--title-11--11-92C-22}
Rates, fees, charges, rentals, and licenses for services rendered by an authority, a cooperative district of which the authority is a member, or a private user or facilities provided by the authority, a cooperative district of which the authority is a member, or a private user from any of their projects shall be so fixed and, from time to time, revised as at all times to provide funds at least sufficient, taking into account other sources for the payment thereof, to:
(1) Pay the cost of operating, maintaining, repairing, replacing, extending, and improving the project or projects of the authority, a cooperative district of which the authority is a member, or any private user.
(2) Pay the principal of and the interest on all bonds issued and obligations assumed by the authority, a cooperative district of which the authority is a member, or any private user that are payable out of the revenues derived from operation of the project or projects of the authority, a cooperative district of which the authority is a member, or any private user as the principal and interest become due and payable.
(3) Create and maintain reserves for the purposes of subdivision (1) or (2) or any purpose as may be provided in any trust indenture executed by the authority, a cooperative district of which the authority is a member, or any private user under this chapter or in any resolutions or agreements of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of the project.
(4) Make annual payments, if any, to the United States of America or any agency or instrumentality thereof, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state, and any public corporations organized under the laws of the state as the authority, a cooperative district of which the authority is a member, or any private user may have contracted to make.
*(Act 2020-72, §22.)*
##### **§ 11-92C-23** Loans, Sales, Grants, Guarantees, and Contractual or Lease Obligations of Money or Property {#sec-11-92c-23 omnilex-key=us-al-statutes--title-11--11-92C-23}
(a) For the purpose of securing services of or the right to use or the use by its citizens or customers of one or more projects of an authority, a cooperative district of which the authority is a member, or any private user, or aiding or cooperating with the authority, a cooperative district of which the authority is a member, or any private user in the planning, development, undertaking, acquisition, construction, extension, improvement, financing, operation, or protection of a project, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state, upon such terms and with or without consideration, as it determines, may do all of the following:
(1) Lend or donate money to, guarantee all or any part of the indebtedness or operating expense of, or perform services for the benefit of, the authority, a cooperative district of which the authority is a member, or any private user.
(2) Donate, sell, convey, transfer, lease, or grant to the authority, a cooperative district of which the authority is a member, or any private user, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any project, any interest in any thereof, and any franchise.
(3) Contract with the authority, a cooperative district of which the authority is a member, or any private user, or enter into a lease or management agreement under terms as may be mutually agreeable, including a contract obligating it to purchase a certain service or product from the authority, a cooperative district of which the authority is a member, or any private user for a stipulated price in a stipulated period of time, to pay for the service or product whether or not it receives it, to lease all or a part of a project for a stipulated rental for a stipulated period of time, to pay the rental whether or not the leased facilities are available to it, or to make a management fee payment.
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with the authority, a cooperative district of which the authority is a member, or any private user in the planning, undertaking, acquisition, construction, financing, or operation of its projects.
(5) Pay, or provide for the payment of, the principal of or interest on any then outstanding bonds theretofore issued by the authority, a cooperative district of which the authority is a member, or any private user, whether or not the principal and interest shall have then matured or become due, and any premium that may be payable upon redemption prior to maturity.
(6) Issue its bonds, warrants, or other evidences of indebtedness in order to provide moneys to make any loan, donation, or payment authorized in this subsection.
(7) Provide for payment of the bonds of the authority, a cooperative district of which the authority is a member, or any private user by an irrevocable trust fund created by agreement with a bank or trust company.
(b) Any bonds, warrants, or other evidences of indebtedness issued by an authorizing subdivision pursuant to authorization in this section may be either general obligations or special obligations payable solely from a specified source or sources, which source or sources may include any public revenues, or portions thereof, which the authorizing subdivision may lawfully use for the purpose. The county or municipality may pledge for payment of the principal of and interest on any bonds that are general obligations any public revenues that may lawfully be used for that purpose and may pledge for the benefit of any special obligations issued by it so much as may be necessary for the payment of the public revenues from which the special obligations are made payable.
(c) The proceeds of any bonds issued by an authorizing subdivision for the purpose referred to in this section may be applied for payment of principal, interest, and redemption premium with respect to the authority’s bonds to be paid from the proceeds and the expenses of issuing the bonds of the authorizing subdivision.
*(Act 2020-72, §23.)*
### **Chapter 93** Tort Claims and Judgments Against Local Governmental Entities
##### **§ 11-93-1** Definitions {#sec-11-93-1 omnilex-key=us-al-statutes--title-11--11-93-1}
For the purposes of this chapter, the following terms shall have the meanings ascribed to them by this section:
(1) GOVERNMENTAL ENTITY. Any incorporated municipality, any county, and any department, agency, board, or commission of any municipality or county, municipal or county public corporations, and any such instrumentality or instrumentalities acting jointly. “Governmental entity” shall also include county public school boards, municipal public school boards and city-county school boards when such boards do not operate as functions of the State of Alabama. “Governmental entity” shall also mean county or city hospital boards when such boards are instrumentalities of the municipality or county or organized pursuant to authority from a municipality or county.
(2) EMPLOYEE. An officer, official, employee, or servant of a governmental entity, including elected or appointed officials, and persons acting on behalf of any governmental entity in any official capacity, temporarily or permanently, in the service of the governmental entity, whether with or without compensation, but the term “employee” shall not mean a person or other legal entity while acting in the capacity of an independent contractor under contract to the governmental entity to which this chapter applies in the event of a claim.
(3) BODILY INJURY. Any bodily injury, sickness, disease, or death sustained by any person or caused by an occurrence.
(4) PROPERTY DAMAGE. Injury or destruction to tangible property caused by an occurrence.
(5) CLAIM. Any claim against a governmental entity, for money damages only, which any person is legally entitled to recover as damages caused by bodily injury or property damage caused by a negligent or wrongful act or omission committed by any employee of the governmental entity while acting within the scope of his employment, under circumstances where the governmental entity, if a private person, would be liable to the claimant for such damages under the laws of the State of Alabama.
*(Acts 1977, No. 673, p. 1161, §1.)*
##### **§ 11-93-2** Maximum Amount of Damages Recoverable Against Governmental Entities; Settlement or Compromise of Claims Not to Exceed Maximum Amounts {#sec-11-93-2 omnilex-key=us-al-statutes--title-11--11-93-2}
The recovery of damages under any judgment against a governmental entity shall be limited to $100,000.00 for bodily injury or death for one person in any single occurrence. Recovery of damages under any judgment or judgments against a governmental entity shall be limited to $300,000.00 in the aggregate where more than two persons have claims or judgments on account of bodily injury or death arising out of any single occurrence. Recovery of damages under any judgment against a governmental entity shall be limited to $100,000.00 for damage or loss of property arising out of any single occurrence. No governmental entity shall settle or compromise any claim for bodily injury, death or property damage in excess of the amounts hereinabove set forth.
*(Acts 1977, No. 673, p. 1161, §2.)*
##### **§ 11-93-3** Liability of Governmental Units Not Extended {#sec-11-93-3 omnilex-key=us-al-statutes--title-11--11-93-3}
This chapter is not intended and shall not be construed to subject any governmental entity to liability for tort claims where liability therefor does not already exist by law. It shall not authorize any governmental entity to be sued where such authorization does not already exist by law.
*(Acts 1977, No. 673, p. 1161, §3.)*
### **Chapter 94** Port Authorities
##### **§ 11-94-1** Definitions {#sec-11-94-1 omnilex-key=us-al-statutes--title-11--11-94-1}
Whenever used in this chapter, unless the context plainly indicates otherwise, the present term shall include the future term, the singular shall include the plural, the plural shall include the singular, the masculine shall include the feminine, and the following words and phrases shall have the following meanings respectively ascribed to them by this section:
(1) AUTHORITY. A nonprofit public corporation organized pursuant to the provisions of this chapter.
(2) AUTHORIZING SUBDIVISION. Any county or municipality to which application has been made for authority to incorporate an authority under this chapter.
(3) BOARD. The board of directors of an authority.
(4) DIRECTOR. A member of the board of directors of an authority.
(5) COUNTY. Any county in this state that abuts on a navigable river or through which a navigable river runs.
(6) GOVERNING BODY. With respect to a county, the county commission and, with respect to a municipality, the council, commission or other governing body of such municipality.
(7) MUNICIPALITY. Any incorporated city or town in this state.
(8) INDENTURE. Any mortgage, indenture of mortgage, deed of trust, trust agreement or trust indenture executed by an authority as security for its bonds.
(9) PROJECT.
a. Any land, any interest in land, any building, structure, or improvement thereon, any machinery, equipment, furniture, furnishings, facility or personal property, or any of them, which, in the judgment of the board of an authority is suitable for use by the authority in carrying out its powers and the functions authorized by this chapter, including, without limitation, ports, docks, and all kinds of dock facilities, water and rail terminals and facilities, wharves, piers, berths, quays, loading and unloading facilities and other related facilities, marinas, boating facilities, facilities for aquatic entertainment and sports, facilities for fishing, pavilions, auditoriums, motels, restaurants, coffee shops, stores, warehouses, factories, manufacturing plants, industrial plants, office and other commercial buildings and facilities, or any of them.
b. Any land and any building or other improvement thereon and all real and personal properties deemed necessary in connection therewith, including without limitation office facilities and any other necessary or appropriate facilities, whether or not now in existence, which shall be suitable for use as:
1. Office facilities or headquarters in connection with the administrative, managerial or operational activities of an authority in carrying out its powers and the functions authorized by this chapter, and
2. To the extent deemed advisable by the board of such authority, as office facilities or headquarters of any of the following or any combination of two or more thereof:
(i) Any local or regional chamber of commerce, industrial development association, board of trade, or other similar association or organization, one of the purposes or objects of which is the promotion of trade, business, professional or economic conditions;
(ii) Any convention, visitors or other similar bureau or organization, one of the purposes or objects of which is the promotion of tourism or of conventions or meetings of business, civic or trade association groups;
(iii) Any municipal or county industrial development board, commercial development authority or other similar public corporation;
(iv) Any community chest or similar charitable or civic organization; and
(v) Any nonprofit educational foundation, one of the purposes or objects of which is the acquisition, development and sale of land for industrial development purposes and whose net earnings inure to the benefit of one or more institutions of higher education operated by the State of Alabama; provided, that no such land, buildings, improvements, properties or facilities shall constitute a “project,” within the scope of this paragraph b., unless used, at least in part, by an authority for the purposes hereinabove prescribed.
(10) WATERFRONT PROPERTY. Any property on or near any navigable river in this state.
*(Acts 1980, No. 80-647, p. 1220, §1; Acts 1986, No. 86-562, p. 1143, §1; Act 2007-285, p. 512, §1.)*
##### **§ 11-94-2** Legislative Intent; Liberal Construction of Chapter {#sec-11-94-2 omnilex-key=us-al-statutes--title-11--11-94-2}
(a) It is the intention of the Legislature by the passage of this chapter to authorize the incorporation of authorities as nonprofit public corporations to develop waterfront property for recreational, transportational, agricultural, industrial and commercial purposes by financing, acquiring, enlarging, improving, replacing, owning, operating, selling, leasing, and disposing of a project or projects or any part thereof. It is the further intent of the Legislature by the passage of this chapter to vest an authority with all powers that may be necessary to enable it to accomplish such purposes.
(b) This chapter shall be liberally construed in conformity with the said intention.
*(Acts 1980, No. 80-647, p. 1220, §2.)*
##### **§ 11-94-3** Application for Incorporation of Authority; Approval by Local Governing Bodies and State Docks Department {#sec-11-94-3 omnilex-key=us-al-statutes--title-11--11-94-3}
Whenever any number of natural persons not less than three shall file with the governing body of a county and with the governing body of any municipality located, in whole or in part, in such county, an application in writing for authority to incorporate a public corporation under the provisions of this chapter and shall attach to such application a proposed form of certificate of incorporation for such corporation, said governing bodies shall each proceed to consider such application. If said governing bodies shall each by appropriate resolution duly adopted, find and determine that each applicant was a duly qualified elector of and taxpayer in the county in which the application was filed and that it is wise, expedient, necessary or advisable that the authority be formed, shall authorize the persons making such application to proceed to form such authority and shall approve the form of certificate of incorporation proposed to be used in organizing such authority, then the persons making such application shall execute, acknowledge and file a certificate of incorporation for the authority as provided in Section 11-94-4.
No authority shall be formed unless such application shall have first been filed as hereinabove provided and the governing bodies of the authorizing subdivisions shall each have adopted resolutions as provided in this section. Provided, however, said authority must also be approved by the Alabama State Docks Department.
*(Acts 1980, No. 80-647, p. 1220, §3.)*
##### **§ 11-94-4** Certificate of Incorporation - Contents; Execution and Acknowledgment {#sec-11-94-4 omnilex-key=us-al-statutes--title-11--11-94-4}
(a) The certificate of incorporation shall set forth:
(1) The names and resident addresses of the applicants together with a recital that each of them is a duly qualified elector of and taxpayer in the county;
(2) The name of the authority which shall be _____ Port Authority (the blank spaces to be filled in with the names of the authorizing subdivisions if such names shall be available for use by the authority, and if not available then the incorporators shall designate some other similar name that is available);
(3) A recital that permission to organize the authority has been granted by resolution duly adopted by the governing body of each authorizing subdivision and the Alabama State Docks Department and the respective dates of adoption of said resolutions;
(4) The location of the principal office of the authority (which shall be in the municipality) and its post office address;
(5) A statement that the authority is organized for the purposes set forth in this chapter with all the powers and authorities specified in this chapter;
(6) The geographical boundaries of the authority’s jurisdiction, which shall be the boundaries of the county that is the authorizing subdivision or, if the authorizing subdivision is a municipality, the county in which such municipality is located;
(7) The period, if any, for the duration of the authority (if the duration is to be perpetual that fact shall be so stated); and
(8) Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this chapter or with the laws of the State of Alabama.
(b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer or officers authorized by the laws of the State of Alabama to take acknowledgments to deeds.
*(Acts 1980, No. 80-647, p. 1220, §4; Act 2007-285, p. 512, §1.)*
##### **§ 11-94-5** Certificate of Incorporation - Filing with Probate Judge; Examination, Approval, and Recordation by Probate Judge; Recordation as Conclusive Evidence {#sec-11-94-5 omnilex-key=us-al-statutes--title-11--11-94-5}
When executed and acknowledged in conformity with Section 11-94-4, the certificate of incorporation shall be filed with the judge of probate of the county which is an authorizing subdivision. The judge of probate shall thereupon examine the certificate of incorporation and, if he finds that the recitals contained therein are correct, that the requirements of Section 11-94-4 have been complied with, and that the name is not identical with or so nearly similar to that of another corporation already in existence in this state so as to lead to confusion and uncertainty, he shall approve the certificate of incorporation and record it in an appropriate book or record in his office. The recording of the certificate of incorporation shall be conclusive evidence that the required findings and approvals have been made.
When such certificate has been so made, approved and filed, the applicants shall constitute a public corporation under the name set forth in the certificate of incorporation.
*(Acts 1980, No. 80-647, p. 1220, §5.)*
##### **§ 11-94-6** Certificate of Incorporation - Amendment Procedure; Recordation of Amendment as Conclusive Evidence {#sec-11-94-6 omnilex-key=us-al-statutes--title-11--11-94-6}
The certificate of incorporation may at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance.
Such an amendment shall be effected in the following manner: The board of the authority shall file with the governing body of each authorizing subdivision a resolution seeking permission to amend the certificate of incorporation, specifying in such resolution the amendment proposed to be made. The governing body of each authorizing subdivision shall consider such resolution and, if each of them shall by appropriate resolution duly find and determine that it is wise, expedient, necessary, or advisable that the proposed amendment be made and shall authorize the same to be made and shall approve the form of the proposed amendment, then the authority shall cause to be executed an instrument embodying the proposed amendment and shall file the same with the judge of probate of the county in which the certificate of incorporation was originally filed. The proposed amendment shall be subscribed and acknowledged by its president or vice president before an officer authorized by the laws of Alabama to take acknowledgments to deeds. Such judge of probate shall thereupon examine the proposed amendment and, if he finds that the requirements of this section have been complied with and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, he shall approve the amendment and record it in an appropriate book in his office. When such amendment has been so made, approved, and filed, it shall thereupon become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section. The recording of the amendment shall be conclusive evidence that the requisite findings and approvals have been made.
*(Acts 1980, No. 80-647, p. 1220, §6.)*
##### **§ 11-94-7** Board of Directors of Authority; Election; Terms of Office; Qualifications; Vacancies; Quorum; Proceedings and Record Thereof; Certified Copies as Evidence; Expenses; Impeachment; Annual Report {#sec-11-94-7 omnilex-key=us-al-statutes--title-11--11-94-7}
(a) An authority shall have a board of directors in which all of the powers of the authority shall be vested, and which shall consist of five members. Two directors shall be elected by the governing body of the county which is an authorizing subdivision, two directors shall be elected by the governing body of the municipality which is an authorizing subdivision, and one director shall be elected jointly by the governing bodies of both such county and such municipality. The directors shall be so elected that they shall hold office for staggered terms. The first term of office of one of the two directors elected by the governing body of the county shall be for two years and the first term of office of the other director elected by said governing body shall be for four years. The first term of office of one of the two directors elected by the governing body of the municipality shall be for one year and the first term of office of the other director elected by said governing body shall be for three years. The first term of office of the director elected jointly by the governing bodies of the county and the municipality shall be for five years. Thereafter, the term of office of each director shall be five years. If at the expiration of any term of office of any director a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until a successor shall be so elected. Each director elected by the governing body of one of the authorizing subdivisions shall be a resident of the authorizing subdivision by whose governing body he was elected, but the director elected jointly by the governing body of both authorizing subdivisions need only be a resident of the county. If a director resigns, dies, or becomes incapable or ineligible to act as director, a successor to serve the unexpired period of his term shall be elected by the governing body or bodies by which the director whose unexpired term he is to fill was elected. Directors shall be eligible for reelection by the governing body or bodies by which they were initially elected. No director shall be an officer or employee of the state or of an authorizing subdivision.
(b) A majority of the members of the board shall constitute a quorum for the transaction of business, but any meeting of such board may be adjourned from time to time by a majority of the directors present or may be so adjourned by a single director if such director is the only director present at such meeting. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and duties of the authority. Any matter in which the board is authorized to act may be acted upon at a regular, special or called meeting. At the request of any director, the vote on any question before the board shall be taken by ayes and nays entered upon the record. All proceedings of the board shall be reduced to writing by the secretary of the authority and recorded in a well-bound book which shall be open for inspection by each director and the public at all reasonable times. Copies of such proceedings when certified by the secretary of an authority under its seal shall be received in all courts as evidence of the matters and things therein certified. Directors and officers of an authority shall serve without compensation, except that they may be reimbursed for actual expenses incurred in the performance of their duties. Any director may be impeached and removed from office in the manner and on the same grounds provided for in Section 175 of the Constitution of Alabama of 1901, and the general laws of the state for impeachment and removal of officers mentioned in said Section 175. An authority shall make to its authorizing subdivisions an annual report of its activities and of its plans for the future, which report shall include a financial operating statement and balance sheet prepared and certified by the examiner of public accounts for the State of Alabama or by a certified public accountant.
*(Acts 1980, No. 80-647, p. 1220, §7.)*
##### **§ 11-94-8** Officers of Authority {#sec-11-94-8 omnilex-key=us-al-statutes--title-11--11-94-8}
The officers of an authority shall consist of a president, a vice president, a secretary, a treasurer, and such other officers as the board may determine. The office of secretary and treasurer may be held by the same person. All officers shall be elected by the board and shall be members of the board.
*(Acts 1980, No. 80-647, p. 1220, §8.)*
##### **§ 11-94-9** Powers of Authority; Location of Projects {#sec-11-94-9 omnilex-key=us-al-statutes--title-11--11-94-9}
(a) An authority organized and existing under this chapter shall have the following powers, together with all powers incident thereto or necessary for the performance of those stated herein:
(1) To adopt bylaws for the regulation of its affairs and the conduct of its business;
(2) To adopt an official seal and alter the same at pleasure;
(3) To maintain a principal office in the municipality which is an authorizing subdivision and sub-offices at such other place or places within the county which is an authorizing subdivision as its board may designate;
(4) To sue and be sued in its own name, excepting actions in tort against the authority;
(5) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise and to improve, equip, and furnish and to own and maintain one or more projects or parts thereof, including all real and personal properties and interests therein which its board may deem necessary in connection therewith, regardless of whether or not any such project or projects shall then be in existence;
(6) To acquire, whether by purchase, construction, exchange, gift, or otherwise and to improve rights-of-way, streets, approaches, roads, railroad lines, interests in land, including the fee simple title to real property and riparian rights necessary or useful and convenient in gaining access, entry, or approach to waterways, whether or not such easements, rights-of-way, streams, approaches, roads, railroad lines, interests in land, and riparian rights lead to property owned or controlled by the authority;
(7) To acquire, receive, take, hold, whether by purchase, gift, lease, devise, or otherwise, property of every description, whether real, personal, or mixed, and to manage the same and to develop any undeveloped property owned, leased, or controlled by it;
(8) To sell and convey, or grant options for such purpose, any or all of its projects or properties, whenever its board shall find such action to be in furtherance of the purposes for which the authority was organized;
(9) To exchange or donate any or all of its projects or properties whenever its board shall find such action to be in furtherance of the purposes for which an authority was organized;
(10) To execute such contracts or instruments and to take such action as may be necessary or convenient to carry out the purposes of this chapter or to exercise any power or authority granted herein;
(11) To lease or let any project or any part thereof to such tenant or tenants for such term or terms at such compensation or rentals and subject to such provisions, limitations, and conditions as its board may approve;
(12) To operate a project or projects or parts thereof other than factories, manufacturing plants, and industrial plants;
(13) To furnish food, lodging, shelter, lawful drinks, confections, reading matter, oil, gas, motor fuels, watercraft, motor and watercraft parts, equipment and the services of mechanics, instructors, and repairmen for reward or compensation;
(14) To charge fees for admission to any of its properties;
(15) To borrow money for the purpose of carrying out any of its powers and to issue its bonds or other securities in evidence thereof, including bond anticipation notes;
(16) To assign and pledge any revenues received by an authority from the lease, sale, or operation of any or all of its projects or any part or parts thereof as security for the payment of the principal of and interest and premium, if any, on any bonds or other securities and the performance of any agreements made in connection therewith, whether then owned or thereafter acquired;
(17) To appoint, employ, contract with and provide for compensation for such employees and agents, including engineers, architects, attorneys, consultants, fiscal advisors, and such other employees or agents as the business of the corporation may require, including the power to fix working conditions by general rules and other conditions of employment, and at its option to provide a system of disability payments, retirement compensation and pension, or any of them and to hire and fire servants, agents, and employees at will;
(18) To make and execute contracts and other instruments necessary to exercise the powers of the authority;
(19) To fix, establish, collect, and alter landing fees, docking fees, tolls, rents, and other charges for the use of any project or projects or parts thereof owned or controlled by an authority;
(20) To make and enforce rules and regulations governing the use of any project, property, or facilities owned or controlled by an authority;
(21) To provide such insurance, including use and occupancy insurance, as its board may deem advisable;
(22) To cooperate with the state, any department or agency of the state, any county, municipality or other political subdivision of the state or with the United States of America or any of its departments or agencies or any corporation or authority organized or controlled by the United States of America, and to make such contracts therewith as its board may deem advisable;
(23) To receive and accept grants for and in aid of construction, extension, improvement, maintenance, or operation of any of its facilities or properties from the United States of America or any agency or department thereof or any corporation or authority organized or controlled thereby, from the state or any agency or department thereof, any political subdivision thereof or any municipality or county, and to receive and accept money, property, labor, or other things of value from any source whatsoever.
(b) Any project or projects of an authority may be located at any place or places within the geographical boundaries of the authority’s jurisdiction as set forth in its certificate of incorporation or any amendment; provided however, no project or part thereof shall be located within the corporate limits or police jurisdiction of a municipality which is not an authorizing subdivision unless the governing body of such municipality has first adopted a resolution consenting to the location of such project or part thereof within its corporate limits or police jurisdiction, as the case may be.
*(Acts 1980, No. 80-647, p. 1220, §9.)*
##### **§ 11-94-10** Bonds of Authority - from What Source Payable; Form; Denominations; Terms; Redemption; Sale; Subsequent Issues; Negotiability {#sec-11-94-10 omnilex-key=us-al-statutes--title-11--11-94-10}
(a) All bonds and securities issued by an authority shall be payable solely out of the revenues derived by the authority from the leasing, sale or operation of any or all of its projects as may be designated in the proceedings of its board under which the same shall be authorized to be issued. None of the bonds, securities or notes of an authority shall ever constitute an obligation or debt of the state, of any authorizing subdivision, or of any county or municipality of the state or a charge against the credit or taxing powers of any of them.
(b) Bonds of any authority may be executed and delivered by the authority at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in registered or bearer form, either as to principal or interest or both, may be payable at such time or times not exceeding forty years from their date, may be made subject to redemption, may be payable at such place or places whether within or without the State of Alabama, may bear interest at such rate or rates (including variable rates), payable at such time or times and at such place or places and evidenced in such manner, and may contain such other provisions not inconsistent with this chapter, all as shall be provided in the proceedings of its board whereunder the bonds shall be authorized to be issued. Any bond having a stated maturity more than 10 years after its date shall state that it is subject to redemption at the option of the authority at the expiration of ten years from its date and on any interest payment date thereafter at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in the proceedings wherein such bond is authorized to be issued.
(c) Any bonds of an authority may be sold at public or private sale in such manner and from time to time as may be determined by its board to be most advantageous and the authority may pay all expenses, premiums, fees and commissions that its board may deem necessary or advantageous in connection with the issuance thereof.
(d) The issuance by an authority of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or other projects, but the proceedings whereunder any subsequent bonds may be issued shall recognize and protect any prior assignment, lien or indenture for any prior issue of bonds unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
(e) All bonds shall contain a recital that they are issued pursuant to the provisions of this chapter, which recitals shall be conclusive that they have been duly authorized pursuant to the provisions of this chapter.
(f) All bonds issued hereunder and any interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
*(Acts 1980, No. 80-647, p. 1220, §10.)*
##### **§ 11-94-11** Bonds of Authority - Execution {#sec-11-94-11 omnilex-key=us-al-statutes--title-11--11-94-11}
All bonds shall be signed by the president or vice president and the secretary or treasurer of the authority and the seal of the authority shall be affixed thereto; provided that a facsimile of the signature of one, but not both, of the officers whose signatures will appear on the bonds may be imprinted thereon in lieu of his manually signing the same; and provided further, that a facsimile of the seal of the authority may be imprinted or otherwise reproduced on the bonds in lieu of being manually affixed thereto. Coupons shall be signed by the president or vice president and the secretary or treasurer of the authority, but a facsimile of the signature of such president or vice president and such secretary or treasurer may be imprinted on any such interest coupons in lieu of their manually signing the same. Delivery of bonds so executed shall be valid notwithstanding any changes in officers or in the seal of the authority after the signing and sealing of the bonds.
*(Acts 1980, No. 80-647, p. 1220, §11.)*
##### **§ 11-94-12** Bonds of Authority - Indenture; Lien; Remedies of Bondholders {#sec-11-94-12 omnilex-key=us-al-statutes--title-11--11-94-12}
In the discretion of its board, any bonds issued by an authority may be secured by an indenture between an authority and a trustee, which may be any trust company or bank having trust powers, whether such bank or trust company is located within or without the state. In any such indenture or resolution providing for the issuance of bonds an authority may pledge, for payment of the principal of and the interest on such bonds, any of its revenues to which its right then exists or may thereafter come into existence and may assign, as security for such payment, any of its leases, franchises, permits and contracts; and in any such indenture, an authority may mortgage any of its properties, including any that may be thereafter acquired by it, and may provide that in the event of a default in payment of the bonds secured thereby or in the event of default with respect to any agreement contained therein, such mortgage may be foreclosed either by sale at public outcry or by judicial proceedings. Any such pledge of revenues shall be valid and binding from the time it is made, and the revenues so pledged and thereafter received by the authority shall immediately become subject to the lien of such pledge without any physical delivery thereof or further act. The lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise, against the authority, irrespective of whether the parties have actual notice thereof, from the time a statement is filed in the office of the judge of probate of the county and any other county in which any part of the property, the revenues from which are so pledged, is located. Such notice need state only the date on which the resolution authorizing the issuance of the bonds was adopted by the board, the principal amount of bonds issued, a brief description of the revenues so pledged and a brief description of any property the revenues from which are so pledged. In any indenture or resolution authorizing the issuance of bonds and pledging for the benefit thereof revenues from any one or more of its facilities, the authority shall have the power to include provisions customarily contained in instruments securing evidence of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection, segregation and application of any rental or other revenue due to or to become due to the authority, the terms to be incorporated in any lease agreement respecting any property of the authority, the maintenance and insurance of any building, structure or other property owned by the authority, the creation and maintenance of special funds from any revenue of the authority and the rights and remedies available in the event of default to the holder of the bonds or the trustee under the indenture, all as its board shall deem advisable and as shall not be in conflict with the provisions of this chapter. If there be any default by an authority in payment of the principal of or the interest on the bonds or in any of the agreements on the part of an authority that may properly be included in any indenture securing the bonds or in any resolution authorizing their issuance, any holder of any of the bonds or any of the coupons, or the trustee under any indenture if so authorized in such indenture, may (in addition to any other remedies herein provided or otherwise available) by suit, action, mandamus or other proceedings, enforce payment of such principal or interest and compel performance of all duties of the board and officers of the authority, and shall be entitled as a matter of right and regardless of the sufficiency of any such security to the appointment of a receiver with all the powers of such receiver for the operation and maintenance of the property of the authority covered by such indenture or resolution and the collection, segregation and application of revenues therefrom. The indenture or any resolution may also contain provisions restricting the individual rights of action of the holders of the bonds and coupons.
*(Acts 1980, No. 80-647, p. 1220, §12.)*
##### **§ 11-94-13** Bonds of Authority - Application of Proceeds {#sec-11-94-13 omnilex-key=us-al-statutes--title-11--11-94-13}
The proceeds derived from the sale of any bonds shall be applied as provided in the proceedings in which the bonds are authorized to be issued, including without limitation, the payment of all legal, fiscal and recording fees and expenses incurred in connection with the authorization, sale and issuance of the bonds and if so provided in the proceedings authorizing their issuance, interest on said bonds (or, if a part only of any issue of bonds is issued for acquisition purposes, interest on that portion of the bonds of that issue that is issued to pay acquisition costs) for a reasonable period prior to and during the time required for the acquisition, construction and equipping of the project and for a period not exceeding 18 months after the completion thereof. An authority may provide in the proceedings authorizing the issuance of bonds for the capitalization of a debt service reserve and/or a replacement and extension reserve from the proceeds of its bonds.
*(Acts 1980, No. 80-647, p. 1220, §13.)*
##### **§ 11-94-14** Refunding Bonds {#sec-11-94-14 omnilex-key=us-al-statutes--title-11--11-94-14}
An authority may at any time and from time to time issue refunding bonds for the purpose of refunding the principal of and the interest on any bonds of the authority theretofore issued hereunder and then outstanding, whether or not such principal and interest shall have matured at the time of such refunding, and for the payment of any expenses incurred in connection with such refunding and any premium necessary to be paid in order to redeem, retire or purchase for retirement the bonds to be refunded. The proceeds derived from the sale of any refunding bonds shall be used only for the purposes for which the refunding bonds were authorized to be issued. Any such refunding may be effected either by sale of the refunding bonds and the application of the proceeds thereof, or by exchange of the refunding bonds for the bonds or interest coupons to be refunded thereby; provided that the holders of any bonds or coupons so to be refunded shall not be compelled without their consent to surrender their bonds or coupons for payment or exchange prior to the date on which they may be paid or redeemed by call of the authority under their respective provisions. All provisions of this chapter pertaining to bonds of an authority that are not inconsistent with the provisions of this section shall, to the extent applicable, also apply to refunding bonds issued by such authority. An authority may at any time and from time to time issue bonds both for the purpose of so refunding the principal of and the interest on any of its bonds and for any other purpose for which it is authorized to issue bonds, in which event the provisions hereof respecting refunding bonds shall apply only to that portion of such combined issue authorized for refunding purposes and the provisions thereof respecting other financing shall apply to the remaining portion of such combined issue.
*(Acts 1980, No. 80-647, p. 1220, §14.)*
##### **§ 11-94-15** Liability of Authorizing Subdivisions Upon Bonds, Obligations and Agreements of Authority; Other Actions by Authorizing Subdivisions to Attain Objectives of Chapter {#sec-11-94-15 omnilex-key=us-al-statutes--title-11--11-94-15}
(a) Neither of the authorizing subdivisions of an authority shall in any event be liable for the payment of the principal of, interest and premium, if any, on any bonds of an authority or for the performance of any pledge, assignment, indenture, obligation or agreement of any kind whatsoever which may be undertaken by an authority and none of the bonds of an authority or any of its agreements or obligations shall be construed to constitute an indebtedness of any authorizing subdivision within the meaning of any constitutional or statutory provision whatsoever.
(b) For the purpose of attaining the objectives of this chapter, either of the authorizing subdivisions, any other county or municipality of the state, and any other political subdivision, public corporation, agency or instrumentality of the state or of a county or municipality may, upon such terms and with or without consideration, as it may determine, do any or all of the following:
(1) Lend or donate money to any authority or perform services for the benefit thereof;
(2) Donate, sell, convey, transfer, lease or grant to any authority, without the necessity of authorization at any election of qualified voters, any property of any kind; and
(3) Do any and all things, whether or not specifically authorized in this section, not prohibited by this chapter and not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with any authority in attaining the objectives of this chapter.
(c) Also for the purpose of attaining the objectives of this chapter, any of the authorizing subdivisions, any other counties or municipalities of the state, and any other political subdivisions, public corporations, agencies or instrumentalities of the state or of a county or municipality may
(1) Borrow money (on its or their general credit or otherwise) for the purpose of lending or donating all or any portion of such money to an authority or for the purpose of otherwise assisting an authority in any other way contemplated by this chapter, which borrowing may be evidenced by interest-bearing bonds, warrants, notes or other securities, and
(2) Enter into contracts or agreements between or among themselves whereby
a. One such contracting party will agree to borrow money for any such purpose or purposes, and
b. The other contracting party or parties will obligate itself or themselves to pay to or for the account of the party agreeing so to borrow money, any specified portion of the amount borrowed, including interest thereon.
*(Acts 1980, No. 80-647, p. 1220, §15; Acts 1986, No. 86-562, p. 1143, §3.)*
##### **§ 11-94-16** Disposition of Net Earnings {#sec-11-94-16 omnilex-key=us-al-statutes--title-11--11-94-16}
Each authority organized hereunder shall be a nonprofit public corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation, except that in the event its board shall determine that sufficient provision has been made for the full payment of the expenses, bonds and other obligations of the authority, then any net earnings of an authority thereafter accruing shall be paid in equal amounts to its authorizing subdivisions.
*(Acts 1980, No. 80-647, p. 1220, §16.)*
##### **§ 11-94-17** Bonds of Authority as Legal Investments {#sec-11-94-17 omnilex-key=us-al-statutes--title-11--11-94-17}
Bonds issued under this chapter are hereby made legal investments for executors, administrators, trustees and other fiduciaries and for savings banks and insurance companies organized under the laws of the State of Alabama.
*(Acts 1980, No. 80-647, p. 1220, §17.)*
##### **§ 11-94-18** Dissolution of Authority; Vesting of Title to Funds and Property of Authority {#sec-11-94-18 omnilex-key=us-al-statutes--title-11--11-94-18}
Whenever the board of any authority shall by resolution determine that the purposes for which the authority was formed have been substantially complied with and any bonds theretofore issued and all obligations theretofore incurred by the authority have been paid, the authority shall thereupon execute and file for record in the office of the judge of probate of the county in which its certificate of incorporation was filed a certificate of dissolution reciting such facts and declaring the authority to be dissolved. Such certificate of dissolution shall be signed by the president or vice president of the authority under its corporate seal.
Upon the filing of such certificate of dissolution the authority shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in equal shares in its authorizing subdivisions and the possession of such funds and properties shall forthwith be delivered to such authorizing subdivisions.
*(Acts 1980, No. 80-647, p. 1220, §18.)*
##### **§ 11-94-19** Exemption from Taxation and Fees {#sec-11-94-19 omnilex-key=us-al-statutes--title-11--11-94-19}
Each authority incorporated under this chapter and all properties at any time owned by it and the income therefrom and all bonds issued by it and the income therefrom shall be exempt from all taxation in the State of Alabama, including, without limitation, ad valorem, sales, excise, license, and privilege taxes. The certificate of incorporation of each authority, the certificate of dissolution of each authority, all deeds or other documents whereby properties are conveyed to an authority and all deeds, indentures, or leases executed by an authority may be filed for record in the office of the judge of probate of the county in which the authority is organized without the payment of any tax or fees other than such fees as may be authorized by law for the recording of such instrument.
*(Acts 1980, No. 80-647, p. 1220, §19.)*
##### **§ 11-94-20** Exemption from Usury and Interest Laws {#sec-11-94-20 omnilex-key=us-al-statutes--title-11--11-94-20}
Each authority incorporated under this chapter shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Acts 1980, No. 80-647, p. 1220, §20.)*
##### **§ 11-94-21** Construction of Chapter {#sec-11-94-21 omnilex-key=us-al-statutes--title-11--11-94-21}
(a) Neither this chapter nor anything contained in this chapter shall be construed as a restriction or limitation upon any powers which an authority may otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.
(b) No proceedings, notice or approval shall be required for the organization of an authority or the issuance of any bond or any indentures or instruments as security therefor, except as provided in this chapter, any other law to the contrary notwithstanding; provided, that nothing in this chapter shall be construed to deprive the state or its governmental subdivisions of their respective police powers over any properties of the authority or to impair any power thereover of any official or agency of the state or its governmental subdivisions which might be otherwise provided by law.
*(Acts 1980, No. 80-647, p. 1220, §21.)*
##### **§ 11-94-22** Applicability of Article 5 of Chapter 6 of Title 8 {#sec-11-94-22 omnilex-key=us-al-statutes--title-11--11-94-22}
An authority proposing to issue any bonds under the authority of this chapter shall comply with and be entitled to the benefits of the preissuance procedures specified in Article 5 of Chapter 6 of Title 8.
*(Acts 1980, No. 80-647, p. 1220, §22.)*
##### **§ 11-94-23** Correction of Errors or Omissions in Incorporation {#sec-11-94-23 omnilex-key=us-al-statutes--title-11--11-94-23}
If an authority formed under this chapter has failed to comply with the requirements of this chapter in its organization, such omission or defect may be corrected as follows:
(1) Its board shall file with the governing body of each authorizing subdivision of the authority a resolution seeking permission to correct the defect or omissions, specifying such defect or omission in the resolution.
(2) The governing body of each such authorizing subdivision shall consider such resolution and if each shall by appropriate resolution duly find and determine that it is advisable that the proposed correction be made and shall authorize the same to be made, then the president or vice president of the authority shall execute an instrument in the name of the authority embodying the corrections and shall file the same with the judge of probate of the county in which the certificate of incorporation was originally filed. Such filing shall relate back to the organization of the authority except as to rights of third parties which have intervened.
*(Acts 1980, No. 80-647, p. 1220, §23.)*
##### **§ 11-94-24** Validation of Incorporation of Certain Port Authorities {#sec-11-94-24 omnilex-key=us-al-statutes--title-11--11-94-24}
In all cases where there has heretofore been an attempt to incorporate a port authority under the provisions of this chapter, and the incorporation of such authority was approved by the Director of State Docks and a certificate of incorporation with respect to such authority has been filed in the offices of the judge of probate of the county in which such authority was sought to be incorporated, but the attempted incorporation is invalid because of some irregularity in the procedure followed, the attempted incorporation of such port authority with respect to which such certificate of incorporation has been filed shall be and hereby is validated ab initio, notwithstanding any irregularity in the procedure for the incorporation of such port authority including, without limiting the generality of the foregoing, (1) the failure of the State Docks Advisory Committee to take any action or to adopt any resolution with respect to such incorporation, (2) the failure of the certificate of incorporation to state that the State Docks Department had adopted a resolution granting permission to organize such authority or the date of adoption of such resolution, or (3) the failure of such judge of probate to approve such certificate of incorporation and make an order so approving it.
*(Acts 1982, No. 82-422, p. 664.)*
##### **§ 11-94-25** Revenues to Be Used for Paying Bonds of Authorities {#sec-11-94-25 omnilex-key=us-al-statutes--title-11--11-94-25}
Any provision of Chapter 94 of Title 11, to the contrary notwithstanding, any bonds issued by an authority in connection with any project described in paragraph b. of Section 11-94-1(9) need not be payable solely out of the revenues derived from the leasing, sale or operation of such project or any other project or projects of such authority but shall be payable solely out of such revenues as may be designated in the proceedings of the board of directors of such authority under which such bonds shall be authorized to be issued. In addition, an authority may, in such proceedings or in any indenture or resolution providing for the issuance of such bonds, assign and pledge any such revenues as security for the payment of the principal of and interest and premium, if any, on such bonds and the performance of any agreements made in connection therewith.
*(Acts 1986, No. 86-562, p. 1143, §2.)*
### **Chapter 95** Public Hospitals
##### **§ 11-95-1** Legislative Intent; Liberal Construction of Chapter {#sec-11-95-1 omnilex-key=us-al-statutes--title-11--11-95-1}
It is the intent of the Legislature by the passage of this chapter to promote the public health of the people of the State of Alabama by authorizing each county and any municipality located in such county to act jointly in authorizing the incorporation of one or more public corporations for the purpose of providing public hospital facilities in such county and to invest each corporation so organized with all powers that may be necessary to enable it to accomplish such purpose. This chapter shall be liberally construed in conformity with said intent.
*(Acts 1981, No. 81-338, p. 480, §1.)*
##### **§ 11-95-2** Definitions {#sec-11-95-2 omnilex-key=us-al-statutes--title-11--11-95-2}
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of clear implication herein otherwise, be given the following respective interpretations herein and shall, except where the context otherwise requires, be deemed to cover both singular and plural:
(1) ALTERNATING DIRECTOR. The director initially elected by the governing body of the authorizing municipality and thereafter alternately by the governing bodies of the authorizing county and the authorizing municipality.
(2) APPLICANT. A natural person who files a written application with the governing body of any county and with the governing body of any municipality located wholly or partially within such county in accordance with the provisions of Section 11-95-3.
(3) AUTHORIZING COUNTY. Any county the governing body of which shall have adopted an authorizing resolution.
(4) AUTHORIZING MUNICIPALITY. Any municipality the governing body of which shall have adopted an authorizing resolution.
(5) AUTHORIZING RESOLUTIONS. The resolutions, adopted by the governing bodies of any county and municipality in accordance with the provisions of Section 11-95-3, that authorize the incorporation of a corporation.
(6) AUTHORIZING SUBDIVISIONS. The authorizing county and the authorizing municipality with respect to a single corporation.
(7) BOARD. The board of directors of a corporation.
(8) BONDS. Bonds, notes, and certificates representing an obligation to pay money.
(9) CORPORATION. Any public corporation organized pursuant to the provisions of this chapter.
(10) COUNTY. Any county in the state.
(11) DESIGNATED REVENUES. Hospital taxes and other revenues from which any particular bonds of a corporation may be payable, as designated in the proceeding of the board of such corporation authorizing the issuance of such bonds.
(12) DIRECTOR. A member of the board of a corporation.
(13) FEDERAL SECURITIES. Direct obligations of the United States for the payment of which the full faith and credit of the United States is pledged, or obligations issued by a person controlled or supervised by and acting as an instrumentality of the United States, the payment of the principal of, premium, if any, and interest on which is fully and unconditionally guaranteed as a full faith and credit obligation by the United States.
(14) GOVERNING BODY. With respect to a county, its county commission or other like governing body, and with respect to a municipality, its city or town council, board of commissioners, or other like governing body.
(15) HOSPITAL FACILITIES. a. Public hospitals of all types, public clinics, public health centers, and related public health facilities, such as laboratories, out-patient departments, nurses homes and nurses training facilities, and central service facilities operated in connection with public hospitals;
b. Appurtenant buildings and other facilities to provide offices for persons engaged in the diagnosis, treatment, or care of diseased, sick, or injured persons and to house or service equipment used for the diagnosis, treatment, or care of diseased, sick, or injured persons or the records of such diagnosis, treatment, or care, or research with respect to any of the foregoing; and
c. Parking areas, parking decks, facilities, buildings, and structures appurtenant to any of the foregoing.
(16) HOSPITAL TAX. Any taxes which may be levied for the benefit of a corporation or the proceeds of which may have been appropriated to a corporation by the Legislature of the state or by the governing body of an authorizing subdivision.
(17) INCORPORATORS. The persons forming a public corporation organized pursuant to the provisions of this chapter.
(18) MUNICIPALITY. An incorporated city or town of the state.
(19) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of the proceedings of the board of a corporation are kept.
(20) STATE. The State of Alabama.
*(Acts 1981, No. 81-338, p. 480, §2.)*
##### **§ 11-95-3** Application for Incorporation of Public Corporation; Approval by Local Governing Bodies {#sec-11-95-3 omnilex-key=us-al-statutes--title-11--11-95-3}
A public corporation may be organized pursuant to the provisions of this chapter in any county. In order to incorporate such a public corporation, any number of natural persons, not less than three, who are duly qualified electors of a county, shall first file a written application with the governing body of such county and with the governing body of any single municipality located wholly within such county, which application shall:
(1) Recite the names of the county and the municipality with the governing bodies of which such application is being filed;
(2) Contain a statement that the applicants propose to incorporate a corporation pursuant to the provisions of this chapter;
(3) State the proposed location of the principal office of the corporation, which shall be within the county with whose governing body such application is filed;
(4) State that each of the applicants is a duly qualified elector of the county with whose governing body such application is filed; and
(5) Request that the governing body of such county and the governing body of such municipality each adopt a resolution declaring that it is wise, expedient, and necessary that the proposed corporation be formed and authorizing the applicants to proceed to form the proposed corporation by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-95-4.
Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application with them, in accordance with the provisions of this section, the governing bodies of the municipality and the county with which the application was filed shall each review the contents of the application, and shall each adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary that the proposed corporation be formed and authorizing the applicants to proceed to form the proposed corporation by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-95-4. Each governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1981, No. 81-338, p. 480, §3.)*
##### **§ 11-95-4** Certificate of Incorporation - Contents; Execution, Acknowledgment, Attachments, Recordation by Probate Judge {#sec-11-95-4 omnilex-key=us-al-statutes--title-11--11-95-4}
(a) Within 80 days following the adoption of the first adopted of the two authorizing resolutions required by the provisions of Section 11-95-3 and within 40 days following the adoption of the last adopted of the said two authorizing resolutions, the applicants may proceed to incorporate a corporation by filing for record in the office of the judge of probate of the authorizing county a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided.
(b) The certificate of incorporation of the corporation shall state:
(1) The names of the persons forming the corporation, and that each of them is a duly qualified elector of the authorizing county;
(2) The name of the corporation (which shall be _____ county-city (town) of _____ joint hospital board, with the insertion of the names of the authorizing county and the authorizing municipality, unless the Secretary of State shall determine that such name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case the incorporators may insert additional identifying words so as to eliminate said duplication or similarity);
(3) The period for the duration of the corporation (if the duration is to be perpetual, subject to the provisions of Section 11-95-19, that fact shall be stated);
(4) The name of the authorizing county together with the date on which the governing body thereof adopted an authorizing resolution;
(5) The name of the authorizing municipality together with the date on which the governing body thereof adopted an authorizing resolution;
(6) The location of the principal office of the corporation, which shall be within the authorizing county;
(7) That the corporation is organized pursuant to the provisions of this chapter; and
(8) Any other matters relating to the corporation that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds.
(d) When the certificate of incorporation is filed for record, there shall be attached to it:
(1) A copy of the application as filed with the governing bodies of the authorizing subdivisions in accordance with the provisions of Section 11-95-3;
(2) A certified copy of each of the authorizing resolutions adopted by the governing bodies of the authorizing subdivisions; and
(3) A certificate by the Secretary of State that the name proposed for the corporation is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty.
(e) Upon the filing for record of the said certificate of incorporation and the documents required by subsection (d) of this section to be attached thereto, the corporation shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon record said certificate of incorporation in an appropriate book in his office and send a notice to the Secretary of State that said certificate of incorporation of the corporation has been filed for record.
*(Acts 1981, No. 81-338, p. 480, §4.)*
##### **§ 11-95-5** Certificate of Incorporation - Amendment Procedure {#sec-11-95-5 omnilex-key=us-al-statutes--title-11--11-95-5}
The certificate of incorporation of any corporation incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section.
The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters that might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the corporation, the chairman of the board and the secretary of the corporation shall sign and file a written application in the name of and on behalf of the corporation, under its seal, with the governing body of each of the authorizing subdivisions, requesting each such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of each of the authorizing subdivisions pursuant to the foregoing provisions of this section, each such governing body shall review the said application and shall adopt a resolution either denying the said application or authorizing the proposed amendment. Each such governing body shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon the said application is taken.
Within 80 days following the adoption of the first adopted of the two resolutions of the governing bodies of the authorizing subdivisions approving the proposed amendment and within 40 days following the adoption of the last adopted of the said two resolutions, the chairman of the board of the corporation and the secretary of the corporation shall sign and file for record in the office of the judge of probate with which the certificate of incorporation of the corporation was originally filed a certificate in the name of and in behalf of the corporation, under its seal, reciting the adoption of said respective resolutions by the directors and by the said governing bodies of the authorizing subdivisions and setting forth the said proposed amendment. The judge of probate for such county shall thereupon record said certificate in an appropriate book in his office. When such certificate has been so filed and recorded, such amendment shall become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of a corporation shall be amended except in the manner provided in this section.
*(Acts 1981, No. 81-338, p. 480, §5.)*
##### **§ 11-95-6** Board of Directors of Corporation; Election; Terms of Office; Qualifications; Vacancies; Expenses; Impeachment {#sec-11-95-6 omnilex-key=us-al-statutes--title-11--11-95-6}
Each corporation shall be governed by a board of directors. All powers of the corporation shall be exercised by the board or pursuant to its authorization. The board shall consist of five directors. One director, the alternating director, shall be elected initially by the governing body of the authorizing municipality and thereafter alternately by the governing bodies of the authorizing county and the authorizing municipality. Two directors shall be elected by the governing body of the authorizing county and two directors shall be elected by the governing body of the authorizing municipality. The initial term of office of the alternating director shall begin immediately upon his election and shall end at 12:01 o’clock, A.M., on the third January 1 following the date of filing of the certificate of incorporation of the corporation. Thereafter, the term of office of the alternating director shall be three years. The initial terms of office of one director elected by the governing body of the authorizing county and one director elected by the governing body of the authorizing municipality shall begin immediately upon their respective elections and shall end at 12:01 o’clock, A.M., on the third January 1 following the date of filing of the certificate of incorporation of the corporation. The initial terms of office of one director elected by the governing body of the authorizing county and one director elected by the governing body of the authorizing municipality shall begin immediately upon their respective elections and shall end at 12:01 o’clock, A.M., on the sixth January 1 following the date of filing of the certificate of incorporation of the corporation. Thereafter, the term of office of each such director, excluding the alternating director, shall be six years. The governing body of each of the authorizing subdivisions shall specify for which term each director it elects is elected. If at the expiration of any term of office of any director, a successor thereto shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until his successor shall be so elected. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by the governing body of that one of the authorizing subdivisions that elected the predecessor director. 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 such director is to take office as such.
No officer of the state or of any county or municipality shall, during his tenure as such officer, be eligible to serve as a director. Each director elected by the authorizing county must be, at the time of his election, a duly qualified elector of the authorizing county. Each director elected by the authorizing municipality must be, at the time of his election, a duly qualified elector of the authorizing municipality. The alternating director must also be, at the time of his election, a physician duly licensed to practice medicine in the state. Directors shall be eligible for re-election. Each director shall serve as such without compensation but shall be reimbursed for expenses actually incurred by him in and about the performance of his duties. Any director of the corporation may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution and the general laws of the state for impeachment and removal of the officers mentioned in Section 175.
*(Acts 1981, No. 81-338, p. 480, §6.)*
##### **§ 11-95-7** Powers of Corporation {#sec-11-95-7 omnilex-key=us-al-statutes--title-11--11-95-7}
In addition to all other powers granted elsewhere in this chapter, a corporation shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time (which may be perpetuity, subject to the provisions of Section 11-95-19) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil suits and actions, and to defend suits against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business;
(5) To acquire, construct, equip, enlarge, improve, maintain, and operate hospital facilities in the authorizing county and to do all things necessary to that end;
(6) To receive, acquire, take and hold, whether by purchase, gift, lease, devise, or otherwise, real and personal property of every description and to manage and dispose of the same by any form of legal conveyance or transfer; provided, however, that the corporation shall not, without the prior approval of the governing bodies of the authorizing subdivisions, have the power to dispose of substantially all of its assets or of any hospital facilities the disposition of which would materially reduce or impair the level of hospital or health care services rendered by the corporation;
(7) To provide instruction for, and to contract for the instruction of, nurses and other technical, professional and paramedical personnel;
(8) To select and appoint medical staff and dental staff members and others licensed to practice the healing arts and to delineate and define the privileges granted each such individual;
(9) To affiliate with, and contract to provide training and clinical experience for, students of other institutions;
(10) To rent, lease, or contract for the operation of any department, section, equipment, or holdings of the corporation;
(11) To establish, collect, and alter charges for services rendered and supplies furnished by it;
(12) To make all needful or appropriate rules and regulations for the conduct of any hospital facilities owned or operated by it and to alter such rules and regulations;
(13) To provide for such insurance as the business of the corporation may require;
(14) To cooperate with the State Board of Health and the State Department of Mental Health and Mental Retardation and to make contracts with either of said agencies respecting the operation of any hospital facilities owned or operated by it;
(15) To receive and accept grants from the United States, the state and any county or municipality, and from any agency or instrumentality of any of the foregoing, and to give such assurances, contractual or otherwise, to or for the benefit of any such grantor as may be required in connection with, or as a precedent to, the receipt of any such grant;
(16) To give such assurances, contractual or otherwise, and to make such commitments and agreements as may be necessary or desirable to preclude the exercise of any rights of recovery with respect to, or the forfeiture of title to, any of its hospital facilities or other property or any hospital facilities or other property proposed to be acquired by it;
(17) To make and alter rules and regulations for the treatment of indigent patients;
(18) To assume any obligations of any entity that conveys and transfers to the corporation any hospital facilities or other property, or interest therein, provided that such obligations appertain to the hospital facilities, property or interest so conveyed and transferred to the corporation;
(19) To assume, establish, fund, and maintain retirement, pension, or other employee benefit plans for its employees;
(20) To borrow money in order to provide funds for any lawful corporate function, use, or purpose and, in evidence of such borrowing, to issue and secure bonds in the manner provided and subject to the limitations set forth in Sections 11-95-8 and 11-95-15;
(21) To appoint, employ, contract with, and provide for the compensation of, such officers, employees, agents, attorneys, consultants, and fiscal advisers as the business of the corporation may require;
(22) To invest or cause to be invested any funds of the corporation (including, without limitation, funds held in any trust created by the corporation) in federal securities, bonds, or other obligations of the state, any county or any municipality, and interest-bearing bank and savings and loan association deposits, or any thereof, and to enter into, or cause to be entered into, repurchase agreements with respect to any of the foregoing;
(23) To enter into management agreements with any person, firm, or corporation for the management by said person, firm, or corporation on behalf of the corporation of any of its properties;
(24) To expend its funds for the recruitment of physicians and employees and for the promotion of employee morale and well-being; and
(25) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the corporation was organized or to exercise any power expressly granted hereunder.
*(Acts 1981, No. 81-338, p. 480, §7.)*
##### **§ 11-95-8** Bonds of Corporation - from What Source Payable; Pledge of Revenues; Execution; Form, Interest Rate, Maturity, Sale, and Negotiability; Nature of Obligation and Source of Payment; Investment Eligibility {#sec-11-95-8 omnilex-key=us-al-statutes--title-11--11-95-8}
(a) All bonds issued by a corporation shall be payable solely from one or more of the following sources as may be designated in the proceedings of the board under which such bonds shall be authorized to be issued:
(1) Hospital taxes; and
(2) Revenues from any hospital facilities owned or operated by it.
(b) The principal of and interest on any bonds issued by a corporation shall be secured by a pledge of the designated revenues and may be secured by a trust indenture evidencing such pledge or by a non-foreclosable mortgage and deed of trust conveying as security for such bonds all or any part of the property of the corporation from which any part of the designated revenues so pledged may be derived. The resolution of the board under which the bonds are authorized to be issued or any such trust indenture or mortgage may contain agreements and provisions respecting the application of the proceeds of such bonds, the maintenance and insuring of properties of the corporation, the application of the designated revenues, the creation and maintenance of special funds from the designated revenues, the maintenance of rates and charges for services and goods provided through any of the hospital facilities of the corporation, the rights, duties and remedies of the parties to any such instrument and the parties for the benefit of whom such resolution or instrument is adopted or made, the rights and remedies available in the event of default and such other agreements and provisions as the board shall deem advisable and which are not in conflict with the provisions of this chapter.
(c) All bonds issued by a corporation shall be signed by the chairman of its board and attested by its secretary, and the seal of the corporation shall be affixed thereto, and any interest coupons applicable to the bonds of the corporation shall be signed by the chairman of its board; provided, that a facsimile of the signature of one, but not both, of said officers may be printed or otherwise reproduced on any such bonds in lieu of his manually signing the same, a facsimile of the seal of the corporation may be printed or otherwise reproduced on any such bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chairman of the board may be printed or otherwise reproduced on any such interest coupons in lieu of his manually signing the same.
(d) Any such bonds may be executed and delivered by the corporation at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the corporation may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The corporation may pay all expenses, premiums and commissions in connection with any financing done by it. All bonds, except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by the corporation shall be construed to be negotiable instruments although payable solely from a specified source.
(e) All obligations created and all bonds issued by the corporation shall be solely and exclusively an obligation of the corporation and shall not create an obligation or debt of the state or of any county or municipality. Any bonds issued by the corporation shall be limited or special obligations of the corporation payable solely out of the designated revenues specified in the proceedings authorizing those bonds.
(f) The governing body of any county or municipality is authorized in its discretion to invest in bonds of the corporation any idle or surplus money held in its treasury. Such bonds are hereby made legal investments for executors, administrators, trustees and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary’s authority, and for savings banks and insurance companies organized under the laws of the state.
*(Acts 1981, No. 81-338, p. 480, §8.)*
##### **§ 11-95-9** Bonds of Corporation - Proceeds from Sale {#sec-11-95-9 omnilex-key=us-al-statutes--title-11--11-95-9}
All moneys derived from the sale of any bonds issued by a corporation shall be used solely for the purpose or purposes for which the same are authorized, including, but without limitation to, the establishment of reserve funds as security for the payment of the principal of (and premium, if any) and interest on such bonds and funds for the maintenance, repair, replacement, improvement and enlargement of any of its hospital facilities or other properties, and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to the fiscal, consulting, legal and other expenses incurred in connection with the issuance of the bonds, and interest to accrue on such bonds for a period ending not later than three years from their date.
*(Acts 1981, No. 81-338, p. 480, §9.)*
##### **§ 11-95-10** Refunding Bonds {#sec-11-95-10 omnilex-key=us-al-statutes--title-11--11-95-10}
Any bonds issued by a corporation may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different designated revenues for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any such bonds that are to be so redeemed in connection with such refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with such refunding; provided, that unless duly called for redemption pursuant to provisions contained therein, the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding. Any refunding bonds may be sold by the corporation at public or private sale at such price or prices as may be determined by its board to be most advantageous, or may be exchanged for the bonds to be refunded. Any such refunding bonds may be executed and delivered by the corporation at any time and from time to time, shall be in such form and denominations and have such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, payable and evidenced in such manner, as may be provided by resolution of its board. Any refunding bonds issued by a corporation shall be issued and may be secured in accordance with the provisions of Section 11-95-8.
*(Acts 1981, No. 81-338, p. 480, §10.)*
##### **§ 11-95-11** Exemption from Taxation and Fees {#sec-11-95-11 omnilex-key=us-al-statutes--title-11--11-95-11}
The property and income of a corporation, all bonds issued by a corporation, the income from such bonds, conveyances by or to a corporation, and leases, mortgages and deeds of trust or trust indentures by or to a corporation shall be exempt from all taxation in the State of Alabama. A corporation shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which a corporation may engage. A corporation shall not be obligated to pay or allow any fees, taxes or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation or the recording of any document.
*(Acts 1981, No. 81-338, p. 480, §11.)*
##### **§ 11-95-12** Liability of Authorizing Subdivisions {#sec-11-95-12 omnilex-key=us-al-statutes--title-11--11-95-12}
Neither of the authorizing subdivisions shall be liable in any manner for the payment of the principal of or interest on any bonds of a corporation or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever that may be undertaken by a corporation, and neither the bonds of a corporation nor any of its agreements or obligations shall be construed to constitute an indebtedness of either of the authorizing subdivisions within the meaning of any constitutional or statutory provision whatsoever.
*(Acts 1981, No. 81-338, p. 480, §12.)*
##### **§ 11-95-13** Exemption from Usury and Interest Laws {#sec-11-95-13 omnilex-key=us-al-statutes--title-11--11-95-13}
A corporation shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8 as it may at any time be amended.
*(Acts 1981, No. 81-338, p. 480, §13.)*
##### **§ 11-95-14** Power of Eminent Domain {#sec-11-95-14 omnilex-key=us-al-statutes--title-11--11-95-14}
A corporation shall have the same power of eminent domain as is vested by law in its authorizing county, which power shall be exercised in the same manner and under the same conditions as are provided by law for the exercise of the power of eminent domain by such authorizing county.
*(Acts 1981, No. 81-338, p. 480, §14.)*
##### **§ 11-95-15** Applicability of Division 2 of Article 4 of Chapter 21 of Title 22 {#sec-11-95-15 omnilex-key=us-al-statutes--title-11--11-95-15}
A corporation shall constitute a hospital corporation as that term is used in Sections 22-21-101, 22-21-102, and 22-21-106 as now or hereafter amended. Without limiting the generality of the foregoing, any corporation may be designated by its authorizing county as the agency of such county to acquire, construct, equip, operate, and maintain public hospital facilities in such county, in the manner and with the consequences specified in said Section 22-21-101, shall, if so designated, receive hospital taxes referred to in said Section 22-21-102 to the extent and in the manner provided in said section, and shall be entitled to anticipate the proceeds of any special county tax in the manner and to the extent specified in said Section 22-21-106. Nothing in this section shall be construed in any manner to limit any rights or powers otherwise conferred upon a corporation pursuant to any other provision of this chapter, and the provisions of Sections 22-21-107, 22-21-108, 22-21-109, and 22-21-110 shall not apply to a corporation.
*(Acts 1981, No. 81-338, p. 480, §15.)*
##### **§ 11-95-16** Applicability of Section 11-93-2 {#sec-11-95-16 omnilex-key=us-al-statutes--title-11--11-95-16}
A corporation shall constitute a governmental entity as that term is used in Section 11-93-2, as now or hereafter amended, and any damages recoverable against, and any settlement or compromise made by, a corporation shall be limited as provided in said Section 11-93-2.
*(Acts 1981, No. 81-338, p. 480, §16.)*
##### **§ 11-95-17** Transfer of Funds, Assets, Etc. to Corporation {#sec-11-95-17 omnilex-key=us-al-statutes--title-11--11-95-17}
The authorizing county, any municipality located, in whole or in part, within such county, whether or not the authorizing municipality, and any public corporation in such county and any other public agency, authority or body, whether or not incorporated, located or having its principal office in such county are hereby authorized to transfer and convey to the corporation, with or without consideration, any hospital facilities and other properties, real or personal, and all funds and assets, tangible or intangible, relative to the ownership or operation of any hospital facilities that may be owned by such county, municipality, public corporation or public agency, authority or body, as the case may be, or that may be jointly owned by any one or more thereof, and any funds owned or controlled by such county, municipality, public corporation or public agency, authority or body, as the case may be, or jointly by any one or more thereof, that may have been raised or allocated for any of the purposes for which the corporation shall have been organized; provided, that such transfer or conveyance shall be authorized by an ordinance or a resolution duly adopted by the governing body of such county or municipality or by the governing board of such public corporation or public agency, authority or body, as the case may be. In the event of the transfer of any hospital facilities to the corporation, any taxes, tax proceeds, and other revenues that are apportioned or allocated to or for the benefit of the prior owner or operator of such hospital facilities or for patient care at such hospital facilities shall thereafter be paid to the corporation.
*(Acts 1981, No. 81-338, p. 480, §17.)*
##### **§ 11-95-18** Earnings of Corporation {#sec-11-95-18 omnilex-key=us-al-statutes--title-11--11-95-18}
A corporation shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event its board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of a corporation, then any portion, as determined by its board, of the net earnings of a corporation thereafter accruing may be paid to its authorizing subdivisions in equal shares.
*(Acts 1981, No. 81-338, p. 480, §18.)*
##### **§ 11-95-19** Dissolution of Corporation; Passage of Title to Property of Corporation {#sec-11-95-19 omnilex-key=us-al-statutes--title-11--11-95-19}
At any time when a corporation has no bonds or other obligations outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the corporation shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the judge of probate with which the corporation’s certificate of incorporation is filed, the corporation shall thereupon stand dissolved and in the event it owned any property at the time of its dissolution, the title to all its properties shall thereupon pass to the authorizing subdivisions as tenants in common.
*(Acts 1981, No. 81-338, p. 480, §19.)*
##### **§ 11-95-20** Multiple Corporations Permitted {#sec-11-95-20 omnilex-key=us-al-statutes--title-11--11-95-20}
The existence of a corporation incorporated under the provisions of this chapter shall not prevent the subsequent incorporation hereunder of another corporation pursuant to authority granted by the same county and municipality or by the same county and a different municipality.
*(Acts 1981, No. 81-338, p. 480, §20.)*
##### **§ 11-95-21** Cumulative Effect of Chapter {#sec-11-95-21 omnilex-key=us-al-statutes--title-11--11-95-21}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with provisions of this chapter.
*(Acts 1981, No. 81-338, p. 480, §21.)*
### **Chapter 96** Community Action Agencies
##### **§ 11-96-1** Appropriation of Funds {#sec-11-96-1 omnilex-key=us-al-statutes--title-11--11-96-1}
Ninety-five percent of all moneys received by the State of Alabama through the Community Services Block Grant Act, Section 671 of the Omnibus Budget Reconciliation Act of 1981 shall be appropriated to community action agencies and certain other agencies as defined in Section 11-96-3 to carry out programs under Section 11-96-4 herein. The Legislature is authorized to appropriate any other funds that might become available for the purposes as described in this chapter.
*(Acts 1982, No. 82-494, p. 818, §1.)*
##### **§ 11-96-2** Allocation of Appropriated Funds in Proportion to Size of Poverty Level Population Served {#sec-11-96-2 omnilex-key=us-al-statutes--title-11--11-96-2}
Funds appropriated for the purpose of Section 11-96-1 shall be allocated annually to community action agencies in proportion to the size of the poverty level population served by the agency when compared to the size of the poverty level population and available resources in the state. “Poverty level population” means the number of people whose household income is below the official poverty line established by the United States Director of the Office of Management and Budget.
*(Acts 1982, No. 82-494, p. 818, §2.)*
##### **§ 11-96-3** Community Action Agency; Defined; Governing Board; Biannual Audit; Delegation of Responsibility; Service Area; Consultation with Neighborhood-Based Organizations; Powers and Duties {#sec-11-96-3 omnilex-key=us-al-statutes--title-11--11-96-3}
(a) A “community action agency” for the purposes of this chapter shall include the following:
(1) A county, a municipality or a combination thereof;
(2) A private nonprofit agency which has been designated as an “eligible entity” under Section 673(1) of the Community Services Block Grant Act; or
(3) A private nonprofit agency newly established by local ordinance in compliance with subsection (b) of this section.
(b) Each community action agency shall administer its programs through a governing board consisting of 15 to 51 members.
(1) One-third of the members of the board shall be elected or appointed public officials, currently holding office or their representatives. These members shall be designated or approved by the chief elected local government official or officials of the jurisdiction which they represent.
(2) At least one-third of the members shall be persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served by the agency.
(3) The other members shall be officials or members of business, industry, labor, religious, welfare, education, housing, or other major groups and interests in the community. Each member of the board selected to represent a specific geographic area within an appointed community must reside in the area represented.
Procedures for selection of board members shall be submitted to county commissions within the community action agency service area for their review. This procedure may be set out in the bylaws governing the community action agency.
(c) Each community action agency receiving funds under this chapter shall prepare a biannual audit to be made available to the public, to state and local government.
(d) If a community action agency delegates responsibility for major policy determinations with respect to the character, funding, extent, and administration of the budgeting for programs to be carried on in a particular geographic poverty or low-income area within the community in a subsidiary board, council, or similar agency, that board, council, or agency shall be broadly representative of the area.
(e) The specific service area of any community action agency must be specific in its charter. No community action agency service areas shall overlap; nor shall any new service area include less than 50,000 total population. This population requirement shall not affect existing community action agencies, nor affect the authority of an existing agency to expand into an area not already served by a community action program.
(f) Each community action agency shall consult neighborhood-based organizations composed of residents of the area of members of the groups served to assist the agency in planning, conduct, and evaluation of components of the community action program.
(g) A community action agency shall:
(1) Plan systematically for an effective community action program;
(2) Encourage agencies engaged in activities related to the community action program to administer assistance on a common or cooperative basis;
(3) Initiate and sponsor projects responsive to needs of the poor which are not otherwise being met, with particular emphasis on providing central or common services that can be drawn upon by a variety of related programs;
(4) Establish effective procedures by which the poor and area residents concerned will be enabled to influence the character of programs affecting their interests;
(5) Join with and encourage business, labor, and other private groups and organizations to undertake activities which will result in the additional use of private resources and capabilities, and otherwise carry out its purposes as approved by its governing board.
*(Acts 1982, No. 82-494, p. 818, §3.)*
##### **§ 11-96-4** Limited Purpose Agencies; Defined; Governing Board; Bi-Annual Audit; Delegation of Responsibility; Service Area; Consultation and Planning {#sec-11-96-4 omnilex-key=us-al-statutes--title-11--11-96-4}
(a) A limited purpose agency qualifying for funds from the community services administration block grant is a community-based and -operated program which:
(1) Was designated as an eligible entity to receive funds from the community services block grant program under Public Law 97-115, the “Older Americans Act Amendments of 1981” or administer a head start program.
(2) Performs the functions of community action agencies, but which is not technically a community action agency.
(3) Received funds in fiscal year 1981 under Section 221 and Section 222(a) or under Title IV of the Economic Opportunity Act of 1964.
(b) Each limited purpose agency shall administer its programs through a governing board consisting of 15 to 50 members.
This board shall be representative of the population of its service area, and representative of the poor, as well as representatives from the business community and other agencies.
(c) Each limited purpose agency receiving funds under this chapter shall prepare a biannual audit to be made available to the public, and to state and local government.
(d) If a limited purpose agency delegates responsibility for major policy determinations with respect to the character, funding, extent, and administration of the budgeting for programs to be carried on in a particular geographic poverty or low-income area within the community in a subsidiary board, council, or similar agency, that board, council, or agency shall be broadly representative of the area.
(e) The specific area of any limited purpose agency must be specified in its charter. No limited purpose agency may service any area that overlaps with the service areas of a community action agency unless the limited purpose agency is operating a program that is clearly statewide in its scope.
(f) Each limited purpose agency shall adhere to the principles of consultation and planning as defined for community action agencies and defined under Section 11-96-3.
*(Acts 1982, No. 82-494, p. 818, §4.)*
##### **§ 11-96-5** Community Action Program Defined; Components of Program; Administration {#sec-11-96-5 omnilex-key=us-al-statutes--title-11--11-96-5}
(a) A community action program is a community-based and -operated program which:
(1) Includes or is designated to include a sufficient number of projects of components to provide, in sum, a range of services and activities having a measurable and potentially major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem;
(2) Has been developed, and which organizes and combines its component projects and activities, in a manner appropriate to carry out all the purposes of Sections 11-96-2 and 11-96-4; and
(3) Conforms to any other supplementary criteria as may be prescribed by federal or state laws or regulations.
(b) The components of a community action program may include programs designated to assist participants, including the elderly poor, to:
(1) Secure and retain meaningful employment;
(2) Attain an adequate education;
(3) Make better use of available income;
(4) Obtain and maintain adequate housing and a suitable living environment;
(5) Obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services, nutritious food, housing, employment, and energy related assistance;
(6) Remove obstacles and solve problems which block the achievement of self-sufficiency;
(7) Achieve greater participation in the affairs of the community; and,
(8) Make more frequent and effective use of other programs related to the purposes of Sections 11-96-2 and 11-96-4.
(c) Components of a community action program may be administered by the community action agency when consistent with sound and efficient management and applicable law, or by other agencies. There may be projects eligible for assistance under Section 11-96-2, or projects assisted from other public or private sources; and they may be either specially designed to meet local needs or designed pursuant to the eligibility standards of a state or federal program providing assistance to a particular kind of activity which will help in meeting those needs.
*(Acts 1982, No. 82-494, p. 818, §5.)*
##### **§ 11-96-6** Continuation of Certain Community Action Agencies {#sec-11-96-6 omnilex-key=us-al-statutes--title-11--11-96-6}
Any community action agency, whether public or private which has been designated as such at the time of passage of this chapter and which has received funding as an “eligible entity” under Section 673(1) of the Community Services Block Grant Act shall maintain such designation and shall continue to receive any funds designated for community action programs as long as those agencies comply with the provisions of this chapter and all other applicable state or federal laws or regulations.
Provided, however, that this section shall not be construed to affect the eligibility of newly established community action agencies designated to serve areas not already served by a community action program to receive funding under the community action programs.
*(Acts 1982, No. 82-494, p. 818, §6.)*
### **Chapter 96A** Shelters, Halfway Houses, Etc., and Affordable Single and Multi-Family Dwellings
##### **§ 11-96A-1** Legislative Declarations {#sec-11-96a-1 omnilex-key=us-al-statutes--title-11--11-96A-1}
It is hereby declared that a lack of sanitary, safe, and affordable dwelling accommodations for persons of moderate and low income and shelters, halfway houses and emergency housing for persons who would otherwise be homeless exists in various municipalities and rural areas of the state. Consequently, persons of low and moderate income are forced to reside in and use unsafe and unsanitary dwellings and certain other persons are unable to afford any dwelling accommodations at all. These conditions which cause an increase in and spread of disease and crime constitute a menace to the health, safety, morals, and welfare of the citizens of the state. It is a matter of public interest to provide safe and sanitary housing for the low and moderate income citizens and shelter for homeless persons, to alleviate such conditions and to encourage economic development, to increase employment in housing construction and related businesses and to create and foster conditions suitable for the welfare and prosperity of all of the people of the state by making available a more adequate supply of funds and increase the availability of safe and sanitary shelters, halfway houses, and emergency housing for the homeless and single and multi-family dwelling accommodations for citizens of low and moderate income within such municipalities and rural areas. The necessity for the provision of such homeless shelters, halfway houses, and emergency housing and such single and multi-family dwelling accommodations for low and moderate income persons and the taking of related actions provided for in this chapter is hereby declared as a matter of legislative determination to be in the public interest.
*(Acts 1991, No. 91-675, p. 1315, §1.)*
##### **§ 11-96A-2** Definition of “Low or Moderate Income Person or Family.” {#sec-11-96a-2 omnilex-key=us-al-statutes--title-11--11-96A-2}
For purposes of this chapter, a low or moderate income person or family shall mean those persons or families with incomes that do not exceed the level of 100 percent of the median income for the applicable area, as provided for under existing regulations promulgated by the United States Department of Housing and Urban Development currently contained within the provisions of 24 Code of Federal Regulations at Parts 813 and 913, and such successor federal laws and regulations as may exist from time to time. If no such regulations or successor regulations exist, median income will be determined by each municipality taking into account all relevant factors.
*(Acts 1991, No. 91-675, p. 1315, §2; Acts 1994, No. 94-676, §1.)*
##### **§ 11-96A-3** Municipalities or Counties Empowered to Take Certain Actions to Carry Out Purpose of Chapter {#sec-11-96a-3 omnilex-key=us-al-statutes--title-11--11-96A-3}
The council or other governing body of any municipality, or governing body of a county in furtherance of the legislative purpose stated above, is empowered to take the following actions and to the extent necessary or desirable in its judgment to expend its moneys to accomplish such purpose:
(1) To acquire sites for, purchase, construct, own, develop, operate, survey, subdivide, establish, maintain, refurbish, remodel, or improve single or multi-family dwellings;
(2) To receive designated funds from whatever source, federal, state, private, or otherwise and to apply such funds for the uses and purposes described in this chapter;
(3) To sell and issue bonds or warrants in order to provide funds for any low or moderate income single or multi-family housing purpose or to provide funds for any shelter for the homeless purpose;
(4) To purchase mortgage loans from mortgage lenders;
(5) To contract with mortgage lenders for the origination of, or the servicing of mortgage loans to be made by such mortgage lenders and the servicing of the mortgages securing such mortgage loans;
(6) To make loans to mortgage lenders provided that the proceeds of such loans shall be required to be used by such mortgage lenders for the making of mortgage loans within the municipalities or counties and provided further, that the mortgages in connection with the mortgage loans so made, together with any additional security required by the municipality, shall be mortgaged, pledged, assigned, or otherwise provided as security for such loans to mortgage lenders;
(7) To exercise any and all rights according to the owner and holder of a mortgage under and in accordance with the terms of said instruments and the applicable laws of the state with respect to the mortgaged property, directly or through mortgage lenders or others acting on behalf of the municipality or county or on behalf of the holder of its bonds or warrants, including, but without limitation, the power to foreclose, to sell the equity of redemption, to purchase the equity of redemption and otherwise to sell and dispose of the mortgaged property, all as shall seem in the best interests of the municipalities and the holders of its bonds or warrants;
(8) To execute and deliver in furtherance of the provisions of this chapter, mortgages, deeds of trusts or trust indentures;
(9) To sell at public or private sale, exchange, lease, and convey any or all of its properties whenever such action is in furtherance of the purposes stated in this chapter;
(10) To establish such reserves from the proceeds of any issue of bonds, warrants, or from revenues of the municipality or county as its governing body shall determine to be necessary and desirable in connection with the payment and retirement of the bonds or warrants;
(11) To make, enter into, and execute such contracts, agreements, leases, and other instruments and to take such other actions as may be necessary or desirable to accomplish any purpose granted by this chapter;
(12) To appropriate, lend, or donate funds or properties to any political subdivision, public corporation, or nonprofit corporation or agency to be used for the purpose of funding or providing low or moderate income housing or homeless shelter, halfway houses, or emergency housing;
(13) To provide for such insurance as the governing body may deem advisable, including, but without limitation, casualty insurance, mortgage payment guaranty insurance, and bond insurance;
(14) To enter into a management agreement or agreements with any person, firm, or corporation for the performance by said person, firm, or corporation of any of the functions or powers granted to the municipality or county in this chapter with respect to the provision of single or multi-family dwellings upon such terms and conditions as may be mutually agreeable and in the public interest;
(15) To sell or lease to persons of low or moderate income or to other persons who will themselves sell or lease the same, or otherwise make the same available for occupancy by persons of low or moderate income any single or multi-family dwelling units acquired by the municipality or county, all upon such terms and conditions as it shall determine to be in the public interest and necessary or desirable to carry out the purposes of this chapter;
(16) To acquire sites for, purchase, construct, own, develop, establish, maintain, operate, refurbish, remodel, or improve shelters for homeless persons including, without limitation, day shelters, night shelters, or respite shelters, halfway houses including, without limitation, rooming houses and emergency shelters of any kind. Soup kitchens, health clinics, social service programs, and educational programs may be operated in any of the foregoing facilities. Persons served by such facilities may be charged for the services provided therein if the council or governing body determines that such charges are in the public interest. Any of the foregoing facilities may be operated on behalf of the municipality or county by a nonprofit organization designated by the municipality or county; and
(17) To do any and all things necessary or convenient to carry out the purposes described in this chapter and to exercise its powers pursuant to the provisions of this chapter.
*(Acts 1991, No. 91-675, p. 1315, §3.)*
##### **§ 11-96A-4** Cooperation with Other Municipalities, Counties, Etc., in Exercise of Powers {#sec-11-96a-4 omnilex-key=us-al-statutes--title-11--11-96A-4}
Any two or more municipalities or counties may join or cooperate with one another or with an unincorporated area in the exercise, either jointly or otherwise, of any or all of their powers for the financing, planning, undertaking, owning, constructing, operating, contracting, or disposing of any dwelling, shelter, halfway house, or other housing located within the boundaries of any one or more of said municipalities or counties. For such purpose any municipality or county may authorize any other so joining or cooperating with it to act on its behalf with respect to any or all of such powers. Any municipalities or counties joining or cooperating with one another may by resolution appoint from among the members of the governing bodies an executive committee with full power to act on behalf of such municipalities or counties with respect to all their powers. Furthermore, any municipality may join or cooperate with an unincorporated rural area in the exercise of such powers, above, with the permission and concurrence of the governing body of the county wherein the unincorporated area is located. For such purpose, any municipality or county may authorize any other so joining or cooperating with it to act on its behalf with respect to any or all of such powers.
*(Acts 1991, No. 91-675, p. 1315, §4.)*
##### **§ 11-96A-5** Powers Conferred Cumulative and Supplemental {#sec-11-96a-5 omnilex-key=us-al-statutes--title-11--11-96A-5}
Except as may be otherwise expressly provided, all powers and authorities conferred shall be cumulative and supplemental and not in derogation of any powers and authorities otherwise existing.
*(Acts 1991, No. 91-675, p. 1315, §5.)*
##### **§ 11-96A-6** Construction Required to Be Performed by Licensed Contractor; Construction Subject to State Competitive Bid Laws {#sec-11-96a-6 omnilex-key=us-al-statutes--title-11--11-96A-6}
All construction authorized pursuant to the provisions of this chapter shall be performed by a licensed contractor as provided in Chapter 8 of Title 34. All construction authorized pursuant to the provisions of this chapter shall be subject to the state competitive bid laws as provided in Chapter 16 of Title 41, or as provided by any other provision of general law.
*(Acts 1991, No. 91-675, p. 1315, §6.)*
### **Chapter 97** Construction and Improvement of Utility Services Facilities
##### **§ 11-97-1** Legislative Declarations and Findings {#sec-11-97-1 omnilex-key=us-al-statutes--title-11--11-97-1}
It is hereby found and declared as follows:
(1) That the health, safety, and welfare of the people of this state require the provision of certain utility services, including water and sewer services;
(2) That it is necessary for the Legislature to provide additional methods by which the cities and counties in the state may provide new and improve existing utility services facilities;
(3) That historically a significant portion of the funding of the costs of construction of such utility services facilities has been provided through grants from the United States of America;
(4) That, in recent years, funds available to cities and counties from the United States of America for payment of costs of construction of utility services facilities has been substantially reduced, and it is anticipated that, in coming years, such funds may be further reduced or eliminated;
(5) That the result of the elimination of funding from the United States of America will be to place the entire burden of payment of costs of constructing and improving utility services facilities solely upon the cities and counties in the state;
(6) That the users of utility services facilities will be forced to pay increased charges in amounts sufficient to enable the cities and counties to provide funds to pay costs of constructing new and improved utility services facilities;
(7) That it may be impossible for cities and counties to raise rates with respect to the use of such utility services facilities to such levels as will provide funds sufficient to enable such cities and counties to pay substantially all of the costs of constructing and improving such utility services facilities;
(8) That the legislatures in other states of the United States of America, including surrounding states, have enacted or are considering legislation making available to cities and counties new and different methods of financing the costs of such utility services facilities, to the end that the entire burden of the loss of funds from the United States of America will not be placed directly on the users of such utility services in the form of substantially increased charges;
(9) That among the alternatives available to cities and counties in the construction of new and improved utility services facilities is the encouragement of private investment in the construction, ownership, and operation of utility services facilities;
(10) That to the extent that the provision of utility services facilities in connection with private ownership and operation reduces the cost of service, the people of this state are greatly benefited by lower cost to the users of such utility services facilities;
(11) That to the extent that utility services charges in this state are substantially higher than in surrounding states, the industrial development of the state is adversely affected and the improvement of the quality of the environment of the state impeded.The
Legislature, therefore, finds and declares that it is necessary, desirable, and in the public interest that additional and alternative methods of providing for the construction and improvement of certain utility services facilities be provided; and that the provisions of this chapter are in the public interest and promote the health, welfare, and safety of the citizens of this state.
*(Acts 1984, No. 84-314, p. 695, §1.)*
##### **§ 11-97-2** Definitions {#sec-11-97-2 omnilex-key=us-al-statutes--title-11--11-97-2}
The following words and phrases used in this chapter, and others evidently intended as the equivalent thereof, shall, in the absence of a clear implication herein otherwise, be given the following respective interpretations herein:
(1) APPLICANT. A natural person who files a written application with the governing body of any county or municipality in accordance with the provisions of Section 11-97-3 hereof.
(2) AUTHORIZING RESOLUTION. A resolution of ordinance adopted by the governing body of any county or municipality in accordance with the provisions of Section 11-97-3 hereof, that authorizes the incorporation of a corporation.
(3) BOARD. The board of directors of a corporation.
(4) BONDS. Bonds, notes, or other obligations representing an obligation to pay money.
(5) CORPORATION. Any public corporation organized pursuant to the provisions of this chapter.
(6) COSTS. As applied to a facility or any portion thereof, shall include all or any part of the cost of construction, acquisition, alteration, enlargement, extension, reconstruction, improvement, and remodeling of a facility, including all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, permits, approvals, licenses, and certificates and interests acquired or used for, in connection with or with respect to a facility, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring lands to which such buildings or structures may be moved, the cost of all machinery and equipment, financing charges, underwriters’ commissions or discounts, interest prior to, during, and following completion of such construction and acquisition, provisions for reserves for both principal and interest and for maintenance, extensions, enlargements, additions, and improvements to any facilities then being or theretofore acquired and all other amounts authorized by any corporation to be paid into any special funds from proceeds of bonds issued by the corporation, the cost of architectural, engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing a facility, and such other expenses as may be necessary or incident to the construction and acquisition of a facility, the financing of such construction and acquisition, and the placing of a facility in operation.
(7) COUNTY. Any county in the state.
(8) DETERMINING COUNTY. With respect to a corporation, any county the governing body of which shall have made findings and determinations of fact pertaining to the organization of such corporation in accordance with the provisions of Section 11-97-3.
(9) DETERMINING MUNICIPALITY. With respect to a corporation, any municipality the governing body of which shall have made findings and determinations of fact pertaining to the organization of such corporation, in accordance with the provisions of Section 11-97-3.
(10) DETERMINING SUBDIVISION. With respect to a corporation, any determining county or determining municipality and, with respect to an instrumentality, the county or municipality or combination thereof whose governing body is empowered to incorporate or otherwise establish such instrumentality.
(11) DIRECTOR. A member of the board of a corporation.
(12) ELIGIBLE INVESTMENT. Includes:
a. Any time deposit with, or any certificate of deposit issued by, (i) any bank which is organized under the laws of the United States of America or any state thereof and deposits in which are insured by the Federal Deposit Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation or (ii) any savings and loan association which is organized under the laws of the United States of America or any state thereof and deposits in which are insured by the Federal Savings and Loan Insurance Corporation or any department, agency, or instrumentality of the United States of America that may succeed to the functions of such corporation;
b. Any debt securities that are direct, general obligations of the United States of America;
c. Any debt securities the payment of the principal of and interest on which is unconditionally guaranteed by the United States of America;
d. Any debt securities that are direct, general obligations of any agencies or instrumentalities of the United States of America, including the following: The Export-Import Banks of the United States, the Federal Farm Credit Banks, the Federal Land Banks, the Federal Intermediate Credit Banks, the Banks for Cooperatives, the Federal Home Loan Banks (including any joint obligations of any two or more of the foregoing agencies), the Federal Home Loan Mortgage Corporation (including participation certificates of the last named agency), the Government National Mortgage Association (including participation certificates of the last named agency), the Tennessee Valley Authority, the Federal Reimbursement Bank, and the Farmers Home Administration;
e. Any debt securities that are direct, general obligations of the Federal National Mortgage Association;
f. Prime commercial paper or finance company paper which is rated not less than prime one or the equivalent thereof by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation, or their successors;
g. Units of investment in any money market fund which is rated not less favorably than A (or the equivalent thereof) by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation, or their successors; and
h. Any debt obligation in which an insurance company organized under the laws of the state may legally invest its money at the time of investment by an authority.
(13) FACILITY. Property or collections of property used to provide utility services, including all land, rights-of-way, property rights, franchise rights, buildings and other structures, machinery, equipment, vehicles, furniture, fixtures, reservoirs, wells, intakes, mains, laterals, pipes, aqueducts, and all other property, rights, easements, and interests necessary or desirable in connection therewith.
(14) GOVERNING BODY. With respect to a municipality, its city or town council, board of commissioners, or other like governing body exercising the legislative functions of a municipality and, with respect to a county, its county commission or other like governing body exercising the legislative functions of a county and, with respect to an instrumentality or Tannehill Furnace and Foundry Commission, its board of directors or other like governing body duly constituted to exercise the ultimate decision-making functions of such instrumentality or said Tannehill Furnace and Foundry Commission, as the case may be.
(15) GOVERNMENTAL USER. Any county or municipality, or any instrumentality of either thereof (including, without limitation to, any corporation incorporated hereunder) or Tannehill Furnace and Foundry Commission, that receives, participates in, or otherwise partakes of utility services pursuant to a utility services agreement.
(16) INCORPORATORS. The persons forming a public corporation pursuant to the provisions of this chapter.
(17) INSTRUMENTALITY. With respect to any county or municipality, any public corporation, public authority, board, commission or other similar body that is incorporated, established, or controlled by such county or municipality.
(18) MUNICIPALITY. An incorporated municipality in the state.
(19) PERSON. Any natural person, public or private corporation (including, without limitation to, any corporation incorporated hereunder), partnership, trust, foundation, government or governmental body, political subdivision, or other legal entity.
(20) PROVIDER. Any person that provides utility services to any user pursuant to a utility services agreement.
(21) REVENUES. All rentals, receipts, income, and other charges derived or received or to be derived or received by the corporation, from any of the following: The operation by the corporation of a facility or facilities, or part of either thereof; the sale, including installment sales or conditional sales, lease, sublease, or use or other disposition of any facility or portion thereof; repayment of any loan with respect to any facility or the operation thereof; contracts, agreements, or franchises with respect to a facility (or portion thereof); any gift or grant; proceeds of bonds to the extent of use thereof for payment of principal of, interest or premium, if any, on the bonds is authorized by the corporation; proceeds from any insurance, condemnation or guaranty pertaining to a facility or property mortgaged to secure bonds or pertaining to the financing of a facility; and income and profit from the investment of the proceeds of bonds or of any revenues.
(22) STATE. The State of Alabama.
(23) TANNEHILL FURNACE AND FOUNDRY COMMISSION. The “Tannehill Furnace and Foundry Commission” created under Article 10 of Chapter 9 of Title 41.
(24) UTILITY SERVICES. Any services for (i) the collection, treatment, and delivery of water, whether such water is used for human consumption or industrial use, and (ii) the collection, treatment, and disposal of sewage, wastewater, industrial effluent, or other fluid waste.
(25) UTILITY SERVICES AGREEMENT. Any agreement between or among one or more users and one or more providers, whether such agreement is in the form of a lease, a service contract, a contract of sale, or in any other form, pursuant to which a provider or providers shall agree to provide one or more utility services to, or for the benefit of, such user or users under circumstances in which the facilities for the provision of such utility services are financed, in whole or in part, by a corporation.
(26) USER. Any person that receives, participates in, or otherwise partakes of utility services pursuant to a utility services agreement, and includes any governmental user.
*(Acts 1984, No. 84-314, p. 695, §2.)*
##### **§ 11-97-3** Filing of Application for Incorporation of Corporation; Authorization of Incorporation by Governing Body of County or Municipality {#sec-11-97-3 omnilex-key=us-al-statutes--title-11--11-97-3}
A public corporation may be organized pursuant to the provisions of this chapter in any county or municipality. In order to incorporate such a public corporation, any number of natural persons, not less than three, who are duly qualified electors of the determining county or the determining municipality, as in the case may be applicable, shall first file a written application with the governing body of such county or municipality, which application shall:
Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate. As promptly as may be practicable after the filing of the application with it in accordance with the provisions of this section, the governing body of the county or the municipality with which the application was filed shall review the contents of the application, and shall adopt a resolution either denying the application or declaring that it is wise, expedient, necessary, or advisable that the proposed corporation be formed and authorizing the applicants to proceed to form the proposed corporation by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-97-4. The governing body with which the application is filed shall also cause a copy of the application to be spread upon or otherwise made a part of the minutes of the meeting of such governing body at which final action upon said application is taken.
*(Acts 1984, No. 84-314, p. 695, §3.)*
##### **§ 11-97-4** Incorporation Procedure; Contents, Execution, and Filing of Certificate of Incorporation {#sec-11-97-4 omnilex-key=us-al-statutes--title-11--11-97-4}
(a) Within 40 days following the adoption of an authorizing resolution the applicants shall proceed to incorporate a corporation by filing for record in the office of the judge of probate of the county or one of the counties in which the determining subdivision is located a certificate of incorporation which shall comply in form and substance with the requirements of this section and which shall be in the form and executed in the manner herein provided.
(b) The certificate of incorporation of the corporation shall state:
(1) The names of the persons forming the corporation, and that each of them is a duly qualified elector of the determining subdivision;
(2) The name of the corporation [which shall be “The Governmental Utility Services Corporation of ___________,” with the insertion of the name of the determining subdivision (which name may include additional wording identifying the region served by the facility), unless the Secretary of State shall determine that such name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case the incorporators may insert additional identifying words so as to eliminate said duplication or similarity];
(3) The period for the duration of the corporation (if the duration is to be perpetual, subject to the provisions of Section 11-97-23 hereof, that fact shall be stated);
(4) The name of the determining subdivision together with the date on which the governing body thereof adopted the authorizing resolution;
(5) The location of the principal office of the corporation, which shall be within the boundaries of the determining subdivision;
(6) That the corporation is organized pursuant to the provisions of this chapter; and
(7) Any other matters relating to the corporation that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (1) a copy of the application as filed with the governing body of the determining subdivision in accordance with the provisions of Section 11-97-3, (2) a certified copy of the authorizing resolution adopted by the governing body of the determining subdivision, and (3) a certificate by the Secretary of State that the name proposed for the corporation is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty.
(d) Upon the filing for record of the said certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the corporation shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the corporation has been filed for record.
(e) The authorization of the incorporation of one corporation shall not preclude the authorization by the governing body of any determining subdivision of the incorporation of other such authorities; provided, that such other corporations shall be required to adopt names or designations sufficient to distinguish them from any corporation theretofore incorporated.
*(Acts 1984, No. 84-314, p. 695, §4.)*
##### **§ 11-97-5** Amendments to Certificate of Incorporation {#sec-11-97-5 omnilex-key=us-al-statutes--title-11--11-97-5}
The certificate of incorporation of any corporation incorporated under the provisions of this chapter may at any time and from time to time be amended in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the said resolution and which amendment may include any matters which might have been included in the original certificate of incorporation.
After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the corporation, the chairman of the board and the secretary of the corporation shall sign and file a written application in the name of and on behalf of the corporation, under its seal, with the governing body of the determining subdivision, requesting such governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the said resolution adopted by the board proposing the said amendment to the certificate of incorporation, together with such documents in support of the application as the said chairman may consider appropriate. As promptly as may be practicable after the filing of the said application with the governing body of the determining subdivision pursuant to the foregoing provisions of this section, that governing body shall review the said application and shall find and determine whether it is wise, expedient, necessary or advisable for the said amendment to be made. In finding and determining whether it is wise, expedient, necessary or advisable for the said amendment to be made, the said governing body may consider, in conjunction with any other factors it may deem relevant, alternative means of accomplishing any lawful objective or purpose of the said amendment affecting the public interest. If the said governing body finds and determines that it is wise, expedient, necessary or advisable for the said amendment to be made, it shall adopt a resolution declaring that it has reviewed the said application and has found and determined as a matter of fact that it is wise, expedient, necessary or advisable for the said amendment to be made; if the said governing body finds and determines that it is not wise, expedient, necessary or advisable for the said amendment to be made, it shall deny the application. Such governing body shall also cause a copy of the said application and all accompanying documents to be spread upon or otherwise made a part of the minutes of the meeting of said governing body at which final action upon the said application is taken.
Within 40 days following the adoption by the governing body of the determining subdivision of a resolution finding and determining as a matter of fact that it is wise, expedient, necessary or advisable for said amendment to be made, the chairman of the board of the corporation and the secretary of the corporation shall sign, and file for record in the office of the judge of probate with which the certificate of incorporation of the corporation was originally filed a certificate in the name of and in behalf of the corporation, under its seal, reciting the adoption of said respective resolutions by the board and by the said governing body and setting forth the said proposed amendment. If the proposed amendment provides for a change in the name of the corporation, there shall be filed, together with the certificate required by the immediately preceding sentence, a certificate by the Secretary of State showing that the proposed new name of the corporation is not identical to that of any other corporation then in existence and organized under the laws of the state or so nearly similar to that of any other such corporation as to lead to confusion and uncertainty. The judge of probate shall promptly examine each such certificate and shall determine whether it is complete and regular on its face and whether the proposed amendment complies with the provisions of this chapter. If the judge of probate shall find that each such certificate is complete and regular on its face and that the proposed amendment complies with the provisions of this chapter, he shall require each such certificate to be recorded in the permanent records maintained in his office. Upon the filing of the aforesaid certificates, the said amendment to the certificate of incorporation shall become effective. If the proposed amendment effects a change in the name of the corporation, the judge of probate shall promptly send a notice to the Secretary of State, advising him of such change. No certificate of incorporation of a corporation shall be amended except in the manner provided in this section.
*(Acts 1984, No. 84-314, p. 695, §5.)*
##### **§ 11-97-6** Board of Directors of Corporation; Election; Terms of Office; Vacancies; Qualifications; Expenses; Impeachment {#sec-11-97-6 omnilex-key=us-al-statutes--title-11--11-97-6}
(a) Each corporation shall be governed by a board of directors. All powers of the corporation shall be exercised by the board or pursuant to its authorization. The board shall consist of three directors who shall be elected by the governing body of the determining subdivision for staggered terms as hereinafter provided. The governing body of the determining subdivision shall specify for which term each director is elected. The initial term of office of one director shall begin immediately upon his election and shall end at 12:01 o’clock, A.M., on January 1 of the first succeeding odd-numbered calendar year following his election. The initial term of office of another director shall begin immediately upon his election and shall end at 12:01 o’clock, A.M., on January 1 of the second succeeding odd-numbered calendar year following his election. The initial term of the remaining director shall begin immediately upon his election and shall end at 12:01 o’clock, A.M., on January 1 of the third succeeding odd-numbered calendar year following his election. Thereafter, the term of office of each such director shall be six years. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by the governing body of the determining subdivision. If the term of office being served by any director shall expire prior to the election of such director for a new term or prior to the election of his successor by the governing body of the determining subdivision, such director shall continue to serve until his successor is elected and qualified, and if such director is elected for a new term after the expiration of the immediately preceding term which he has been serving, his new term of office shall be deemed to have commenced as of the expiration of such immediately preceding term.
(b) Any officer of the determining subdivision shall be eligible for appointment and may serve as a member of the board for the term for which he is appointed or during his tenure as an officer of the determining subdivision, whichever expires first, but he shall not receive a fee for his services; provided, however, that at no time shall the board consist of more than one officer of the determining subdivision. Each director must be a duly qualified elector of the determining subdivision. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him in and about the performance of his duties. No director shall vote on or participate in the discussion or consideration of any matter coming before the board in which he, his immediate family or any business enterprise with which he is associated has any direct or indirect pecuniary interest; provided, however, that when any such matter is brought before the board, any director having an interest therein which may be in conflict with his obligations as a director shall immediately make a complete disclosure to the board of any direct or indirect pecuniary interest he may have in such matter prior to removing himself and withdrawing from the board’s deliberations and vote on the matter presented.
(c) A majority of the directors shall constitute a quorum for the transaction of business. No vacancy in the membership of the board or the voluntary disqualification or abstention of any member thereof shall impair the right of a quorum to exercise all of the powers and duties of the corporation.
(d) Any director of the corporation may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama, or successor provision thereof, and the general laws of the state for impeachment and removal of the officers mentioned in Section 175, or successor provision thereof.
(e) All proceedings of the board shall be reduced to writing by the secretary of the corporation and maintained in the permanent records of the corporation. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as evidence of the matters therein certified.
*(Acts 1984, No. 84-314, p. 695, §6.)*
##### **§ 11-97-7** Officers of Corporation {#sec-11-97-7 omnilex-key=us-al-statutes--title-11--11-97-7}
The officers of a corporation shall consist of a chairman, a vice-chairman, a secretary, a treasurer, and such other officers as its board shall deem necessary or appropriate. The offices of secretary and treasurer may but need not be held by the same person. The chairman and vice-chairman of a corporation shall be elected by the board from the membership thereof; the secretary, the treasurer, and any other officers of the corporation may but need not be members of the board and shall also be elected by the board. The chairman, vice-chairman, secretary, and treasurer of the corporation shall also be the chairman, vice-chairman, secretary, and treasurer of the board, respectively.
*(Acts 1984, No. 84-314, p. 695, §7.)*
##### **§ 11-97-8** Powers of Corporation; Location of Facilities of Corporation {#sec-11-97-8 omnilex-key=us-al-statutes--title-11--11-97-8}
(a) Every corporation shall have all of the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter, including (without limiting the generality of the foregoing) the following powers:
(1) To have succession in its corporate name for the duration of time (which may be in perpetuity, subject to the provisions of Section 11-97-22 hereof) specified in its certificate of incorporation;
(2) To sue and be sued in its own name in civil suits and actions and to defend suits against it;
(3) To adopt and make use of a corporate seal and to alter the same at pleasure;
(4) To adopt, alter, and repeal bylaws, regulations, and rules, not inconsistent with the provisions of this chapter, for the regulation and conduct of its affairs and business;
(5) To acquire, whether by gift, purchase, transfer, foreclosure, lease, or otherwise, to construct and to expand, improve, operate, maintain, equip, and furnish one or more facilities, including all real and personal properties that its board may deem necessary in connection therewith, regardless of whether or not any such facility shall then be in existence and, if in existence, regardless of whether or not any such facility is then owned or leased by any person to which such facility may subsequently be sold or leased by such corporation;
(6) To borrow money and to sell and issue bonds as hereinafter provided for any corporate use or purpose;
(7) To lease to any person or persons all or any part of any facility or facilities that are or are to be owned by it, to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof, all upon such terms and conditions as its board may deem advisable;
(8) To contract to sell, convey, or dispose of and to sell, convey, or dispose of all or any part of a facility (including but not limited to the granting of options to purchase a facility to any person), all for such consideration and upon such terms and conditions as its board may deem advisable;
(9) In connection with the financing of the acquisition, construction, or operation of one or more facilities, to lend, upon such terms and conditions as its board may deem advisable, all or any portion of the proceeds derived from the issuance of its bonds for one or more or any combination of the following purposes:
a. To enable such person to borrow an amount not substantially in excess of the equity (determined on any basis not resulting in a higher value for any facility in question than the estimated replacement cost or the appraised market value thereof, whichever may be greater) which such person may then have in any facility or facilities;
b. To enable such person to refinance any outstanding indebtedness incurred or assumed in connection with the acquisition, improvement, or operation of any existing facility or facilities;
c. To enable such person to finance the costs of acquiring, by purchase, construction, or otherwise, one or more facilities and/or the costs of expanding or improving one or more facilities, regardless of whether any such facility has theretofore been owned or leased by such person or is to be acquired or leased by such person; and
d. To enable such person to borrow working capital for use in the operation of one or more facilities.
(10) To pledge for payment of any bonds issued or assumed by the corporation any revenues from which such bonds are payable as herein provided, and to mortgage or pledge any or all of its facilities or any part or parts thereof, whether then owned or received or thereafter acquired or received, and to pledge any revenues from which such bonds are payable as herein provided as security for the payment of the principal of and the interest and premium, if any, on any bonds so issued and any agreements (including, without limitation, any utility service agreements) made in connection therewith;
(11) To assume obligations secured by a lien on or secured by and payable out of or secured by a pledge of any facility or facilities or part thereof or the revenues derived from any facility or facilities that may be acquired by the corporation;
(12) To make, enter into, and execute such contracts, agreements, leases and other instruments (including, without limitation to, utility service agreements) and to take such other actions as may be necessary or convenient to accomplish any purpose for which such corporation was organized or to exercise any power expressly granted hereunder;
(13) To enter into contracts with, to accept aid, loans and grants from, to cooperate with and to do any and all things not specifically prohibited by this chapter or the constitution or other applicable laws of the state that may be necessary in order to avail itself to the aid and cooperation of the United States of America, the state or any agency, instrumentality, or political subdivision of either thereof in furtherance of the purposes of this chapter;
(14) To receive and accept from any source aid or contributions in the form of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this chapter, subject to any lawful condition upon which such aid or contributions may be given or made;
(15) To appoint, employ, and contract with such employees and agents, including but not limited to, architects, engineers, attorneys, accountants, financial experts, fiscal agents, and such other advisors, consultants, and agents as may in its judgment be necessary or desirable, and to fix their compensation;
(16) To enter into a management contract or contracts with any municipality, any county, or any person or persons for the management, supervision, or operation of all or any part of its facilities as may in the judgment of such corporation be necessary or desirable in order to perform more efficiently or economically any function for which it may become responsible in the exercise of the powers conferred upon it by this chapter;
(17) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as its board may deem desirable;
(18) To the extent permitted by the contracts of such corporation with the holders of its bonds and if not otherwise specifically prohibited by any other provision of this chapter, to invest its moneys (including, without limitation, the moneys held in any special fund created pursuant to any trust indenture or agreement or resolution securing any of its bonds and proceeds from the sale of any bonds) not required for immediate use in eligible investments;
(19) To include in any borrowing by such corporation such amounts as may be deemed necessary by its board to pay bond discount, commissions, or other financing charges, interest on the obligations issued in evidence of such borrowing for such period as its board shall deem advisable, fees and expenses of financial advisors and planning and management consultants, all legal, accounting, publishing, printing, recording, and filing fees and expenses and such other expenses as shall be necessary or incident to such borrowing;
(20) To the extent permitted by its contracts with the holders of its bonds, to purchase bonds of such corporation out of any of its funds or moneys available therefor and to hold, cancel, or resell such bonds;
(21) To secure payment of bonds or other obligations of such corporation, including performance obligations relating to processes and facilities involved in providing utility services, by procuring or agreeing to procure (i) insurance or guarantees from the United States of America or any agency or instrumentality thereof, or (ii) insurance, guarantees, letters of credit, and other sureties from banks, insurance companies, and other financial institutions, and to pay premiums, commissions, and fees necessary to procure such insurance, guarantees, letters of credit, or other sureties;
(22) To establish and maintain one or more special debt service reserve funds and such other special fund or funds as may be necessary or desirable for its corporate purposes and to pay into each such fund any moneys contributed or granted to such corporation for the purpose of such fund by any governmental or public entity or any private party, any proceeds from the sale of bonds to the extent provided in the resolution adopted by the board of such corporation authorizing the issuance of such bonds and any other moneys which may be made available to such corporation for the purpose of such fund from any other source or sources;
(23) To require payments in lieu of taxes with respect to any facilities to be made by a provider to the state, a county, or a municipality, or any two or more thereof; and
(24) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to the provisions of this chapter.
(b) Any facility or facilities of a corporation organized pursuant to determination by a determining municipality may be located within or without or partially within and partially without the determining municipality, subject to the following conditions:
(1) No such facility or part thereof shall be located more than 30 miles from the corporate limits of the determining municipality;
(2) No such facility or part thereof shall be located within the corporate limits of a municipality other than the determining municipality in this state unless the governing body of such other municipality has first adopted a resolution consenting to the location of such facility or part thereof in such municipality; and
(3) No such facility or part thereof shall be located in a county other than that (or those) in which the determining municipality (or part thereof) is situated unless the governing body of such other county has first adopted a resolution consenting to the location of such facility or part thereof in such county.
(c) Any facility or facilities of a corporation organized pursuant to determination by a determining county may be located within or without or partially within and partially without the determining county, subject to the following conditions:
(1) No part of a facility shall be located more than three miles outside the boundaries of the determining county;
(2) In no event shall any facility or part thereof be located within the corporate limits of a municipality unless the governing body of such municipality has first adopted a resolution consenting to the location of such facility or part thereof in such municipality; and
(3) No such project or part thereof shall be located in a county other than the determining county unless the governing body of such other county has first adopted a resolution consenting to the location of a part of such facility in such other county.
*(Acts 1984, No. 84-314, p. 695, §8; Acts 1984, 2nd Ex. Sess., No. 85-45, §1.)*
##### **§ 11-97-9** Bonds of Corporation Generally {#sec-11-97-9 omnilex-key=us-al-statutes--title-11--11-97-9}
(a) Any corporation shall have the power to issue, sell and deliver at any time and from time to time its bonds in such principal amount or amounts as its board shall determine to be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on any of its bonds, the establishment of reserves to secure any such bonds and all other expenditures of such corporation incident to and necessary or convenient to carry out its corporate purposes and powers. Any corporation shall also have the power to issue from time to time bonds to renew bonds and bonds to pay bonds, including interest thereon and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other of its corporate purposes.
(b) The bonds issued by any corporation shall be authorized by resolution or resolutions adopted by its board, shall bear such date or dates and shall mature at such time or times as such resolution or resolutions may provide, except that no bond shall mature more than 40 years from date of its issue. The bonds of any corporation may be issued as serial bonds or as term bonds or as a combination thereof. The bonds of any corporation shall bear interest at such rate or rates, be in such form and denominations, either coupon or registered, carry such registration privileges, be executed by such officers of such corporation and in such manner, be payable in such medium of payment, at such place or places within or without the state and be subject to such terms of redemption as may be provided in the resolution or resolutions by which they are authorized to be issued. The bonds of any corporation may be sold by such corporation at public or private sale at such price or prices as such corporation shall determine. If such action shall be deemed advisable by the board, there may be retained in the proceedings under which any of such bonds are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be recited in summary form on the face of such bonds; provided that any bond of any corporation having a specified maturity more than 15 years after its date shall be made subject to redemption at the option of such corporation at the expiration of 15 years from its date and on any interest payment date thereafter at such price or prices and after such notice or notices and on such terms and in such manner as may be provided in the resolution adopted by the board of such corporation authorizing the issuance of such bond. Any corporation may pay all expenses, premiums and commissions which its board may deem necessary and advantageous in connection with the issuance of any of its bonds. Issuance by any corporation of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds, but the resolutions whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for the benefit of any prior issue of bonds, unless in the proceedings authorizing such prior issue the right was reserved to issue subsequent bonds on a parity with such prior issue.
(c) Prior to the preparation of definitive bonds, the corporation may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The corporation may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.
(d) All obligations created or assumed and all bonds issued or assumed by any corporation shall be solely and exclusively an obligation of such corporation and shall not create an obligation or debt of the state, the determining subdivision, any other county or municipality or any other political subdivision of the state or any instrumentality or governmental agency existing under the laws thereof; provided, that the provisions of this subsection shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the corporation.
*(Acts 1984, No. 84-314, p. 695, §9.)*
##### **§ 11-97-10** Security for Payment of Bonds; Contracts and Agreements to Secure {#sec-11-97-10 omnilex-key=us-al-statutes--title-11--11-97-10}
(a) Bonds issued by any corporation may, as its board may deem advisable, be either general obligations of such corporation or limited obligations payable only out of certain specified revenues or assets of such corporation; provided, that any corporation may enter into contracts with the holders of any of its bonds preventing such corporation from thereafter issuing general obligation bonds or limiting the amount of such bonds that may thereafter be issued. To the extent permitted by any contracts with the holders of outstanding bonds and any other contractual obligations or requirements, any corporation may pledge any of its revenues or mortgage or assign any of its assets, whether real or personal and whether tangible or intangible, to secure the payment of any of its bonds.
(b) As security for payment of the principal of and the interest and premium, if any, on any bonds issued or assumed by it, any corporation may enter into a contract or contracts, and adopt resolutions or other proceedings containing provisions constituting a part of the contract or contracts with the holders of such bonds, pertaining to, among other things, the following matters:
(1) Pledging all or any part of the revenues of such corporation to secure the payment of such bonds, subject to contracts with the holders of its then outstanding bonds;
(2) Pledging, assigning or mortgaging all or any part of the assets of such corporation to secure the payment of such bonds, subject to contracts with the holders of its then outstanding bonds;
(3) The creation of reserves, sinking funds or other funds and the regulation and disposition thereof;
(4) Limitations on the purpose to which the proceeds of sale of such bonds may be applied and pledging such proceeds to secure the payment of such bonds;
(5) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured and the refunding of outstanding bonds;
(6) Binding the corporation to impose and collect reasonable rates for and the imposition of reasonable regulations respecting any service rendered from or with respect to any facility or facilities;
(7) The procedure, if any, by which the terms of any contract with the holders of such bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(8) Limitations on the amount of moneys to be expended by such corporation for its operating expenses;
(9) Vesting in a trustee or trustees such property, rights, powers and duties as such corporation may determine;
(10) Defining the acts or omissions to act that shall constitute a default in the performance of the obligations and duties of such corporation to the holders of such bonds and providing for the rights and remedies of such holders in the event of such default; provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this chapter; and
(11) Any other matters of like or different character which in any way affect the security or protection of the holders of such bonds.
(c) Any mortgage of property granted by any corporation, any security interest in property created by it or any assignment or pledge of revenues or contract rights made by it, in each case to secure the payment of its bonds, shall be valid and binding from the time when such mortgage is granted, such security interest is created or such assignment or pledge is made, as the case may be, and the property so mortgaged, the property with respect to which such security interest is so created and the revenues and contract rights so assigned or pledged shall immediately (or as soon thereafter as such corporation obtains any right thereto or interest therein) be subject to such mortgage, security interest, assignment or pledge, as the case may be, without physical delivery of any property, revenues or contract documents covered thereby or any further act, and the lien of any such mortgage, security interest, assignment or pledge shall be valid and binding as against all persons having claims of any kind in tort, contract or otherwise against such corporation, irrespective of whether such persons have actual notice thereof, from the time notice of such mortgage, security interest, assignment or pledge is filed for record (i) in the office of the judge of probate in which the certificate of incorporation of such corporation was filed for record and (ii) in the case of any mortgage or security interest covering any tangible property, whether real, personal or mixed, in the office of the judge of probate of the county in which such property is or is to be located pursuant to any agreement made by such corporation with any person respecting the location and use of such property. Such notice shall contain a statement of the existence of any such mortgage, security interest, assignment or pledge, as the case may be, a description of the property, revenues or contract rights subject thereto and a description of the bonds secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of any such mortgage, security interest, assignment or pledge. If the requirements of the preceding sentence are met, such notice may consist of (i) a summary statement prepared specially for the purpose of serving as such notice, (ii) an executed counterpart of any mortgage, security agreement, assignment, trust indenture or any other instrument granting such mortgage, creating such security interest or making such assignment or pledge, as the case may be, or (iii) a certified copy of the resolution adopted by the board of such corporation authorizing such mortgage, security interest, assignment or pledge, as the case may be.
(d) Any corporation shall have power, subject to contracts with the holders of its then outstanding bonds, to purchase for retirement and cancellation any of its bonds and to use any of its available funds for such purpose, provided that, if such bonds are then redeemable, the purchase price thereof shall not exceed the redemption price then applicable, plus accrued interest thereon to the date of purchase, and if such bonds are not then redeemable, the purchase price thereof shall not exceed the redemption price applicable on the earliest date after such purchase upon which such bonds become subject to redemption, plus accrued interest thereon to the date of purchase.
(e) The bonds of any corporation may, at the discretion of such corporation, be issued under and secured by a trust indenture or trust indentures by and between such corporation and a corporate trustee, which may be any trust company or bank having the power of a trust company within or without the state. Any such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of such corporation in relation to the exercise of its corporate powers and the custody, safeguarding and application of all moneys. Such authority may provide by any such trust indenture for the payment to the trustee thereunder or other depository of the proceeds of any bonds issued thereunder and any revenues pledged for the security of such proceeds and revenues, with such safeguards and restrictions as it may determine. All expenses incurred in connection with such trust indenture may be treated as part of the operating expenses of such corporation.
(f) Whether or not the bonds of any corporation are of such form and character as to be negotiable instruments under the terms of the Alabama Uniform Commercial Code, such bonds are hereby made negotiable instruments within the meaning of the Alabama Uniform Commercial Code and for all purposes thereof, subject only to any registration provisions of such bonds. In case any of the directors or officers of any corporation whose signatures appear on any bonds or coupons appertaining to any bond shall cease to be such directors or officers before the delivery of such bonds or coupons, such signatures shall, nevertheless, be valid and sufficient for all purposes to the same extent as if such directors or officers had remained in office until such delivery.
(g) The directors and officers of any corporation shall not be subject to any personal liability by reason of the issuance of any bonds of such corporation.
*(Acts 1984, No. 84-314, p. 695, §10.)*
##### **§ 11-97-11** Proceeds from Sale of Bonds {#sec-11-97-11 omnilex-key=us-al-statutes--title-11--11-97-11}
All moneys derived from the sale of any bonds issued by a corporation shall be used solely for the purpose or purposes for which the same are authorized; provided, however, that if for any reason any part of such proceeds shall not be necessary for such purposes, then such unexpended part of such proceeds shall be applied to the payment of the principal or of interest on the said bonds. All accrued interest and premium received in any such sale shall be applied to the payment of interest or principal on the bonds sold.
*(Acts 1984, No. 84-314, p. 695, §11.)*
##### **§ 11-97-12** Refunding Bonds {#sec-11-97-12 omnilex-key=us-al-statutes--title-11--11-97-12}
(a) Any bonds issued or assumed by a corporation may from time to time be refunded by the issuance, by sale or exchange, of refunding bonds payable from the same or different sources for the purpose of paying all or any part of the principal of the bonds to be refunded, any redemption premium required to be paid as a condition to the redemption prior to maturity of any such bonds that are to be so redeemed in connection with such refunding, any accrued and unpaid interest on the bonds to be refunded, any interest to accrue on each bond to be refunded to the date on which it is to be paid, whether at maturity or by redemption prior to maturity, and the expenses incurred in connection with such refunding including, without limitation to, attorneys’ fees, costs of printing the refunding bonds, financial advisors’ fees and accountants’ fees; provided, that unless such bonds are duly called for redemption pursuant to provisions contained therein, the holders of any such bonds then outstanding and proposed to be refunded shall not be compelled without their consent to surrender their outstanding bonds for such refunding. The issuance of such refunding bonds, the maturities and other details thereof, the rights of the holders thereof and the rights, duties, and obligations of such corporation in respect thereof shall be governed by the provisions of this chapter relating to the issuance of bonds generally, to the extent that such provisions may be appropriate therefor.
(b) Refunding bonds issued by any corporation may be sold or exchanged for outstanding bonds issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding bonds. Pending the application of the proceeds of any such refunding bonds for any of the purposes provided in this section, such proceeds may be invested in any eligible investments pursuant to an escrow agreement providing for the future application of such proceeds in accordance with such purposes.
*(Acts 1984, No. 84-314, p. 695, §12.)*
##### **§ 11-97-13** Freedom of Corporation from Supervision and Control of State; Applicability of Certain Laws Regarding Operation of Facilities {#sec-11-97-13 omnilex-key=us-al-statutes--title-11--11-97-13}
(a) This chapter is intended to aid the state through the furtherance of the purposes of the chapter by providing appropriate and independent instrumentalities with full and adequate powers to fulfill their functions. Except as expressly provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of any corporation or the amendment of its certificate of incorporation, the purchase of any note or other instrument secured by a mortgage, deed of trust, note or other security interest, the issuance of any bonds, the execution of any mortgage and deed of trust or trust indenture, or the exercise of any other of its powers by a corporation. Neither a public hearing nor the consent of the State Department of Finance or any other department, agency, bureau, board, or corporation of the state shall be prerequisite to the issuance of bonds by a corporation.
(b) Each corporation shall, however, be subject to the provisions of the laws of this state respecting the operation of facilities of the corporation, including particularly the provisions of Chapters 23, 25, and 26 of Title 22.
*(Acts 1984, No. 84-314, p. 695, §13.)*
##### **§ 11-97-14** Power of Eminent Domain {#sec-11-97-14 omnilex-key=us-al-statutes--title-11--11-97-14}
Each corporation organized under the provisions of this chapter is hereby granted the power of eminent domain and may exercise such power in the manner provided by law for the purpose of obtaining real property for any facility or part thereof.
*(Acts 1984, No. 84-314, p. 695, §14.)*
##### **§ 11-97-15** Contacts; Cooperation; Aid and Agreements from Other Bodies {#sec-11-97-15 omnilex-key=us-al-statutes--title-11--11-97-15}
(a) For the purpose of attaining the objectives of this chapter, any county, municipality, or other political subdivision, public corporation, agency or instrumentality of the state, a county or municipality may, upon such terms and with or without consideration, as it may determine, do any or all of the following:
(1) Lend or donate money to any corporation or perform services for the benefit thereof;
(2) Donate, sell, convey, transfer, lease, or grant to any corporation, without the necessity of authorization at any election of qualified voters, any property of any kind; and
(3) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with any corporation in attaining the objectives of this chapter.
(b) Without in any way limiting the generality of the foregoing, any municipality, county, or any political subdivision or agency of the state or of a county or municipality, a public corporation or any other entity is authorized to convey to the corporation, and the corporation in turn is authorized to convey to any person, any existing facility, it being hereby specifically declared that the agreement of any person to whom such conveyance is made to provide a facility or facilities that are in full compliance with all such applicable federal and state laws and regulations shall be deemed to be adequate consideration for any such transfer.
*(Acts 1984, No. 84-314, p. 695, §15.)*
##### **§ 11-97-16** Utility Services Agreements; Incurring Indebtedness by Governmental Users; Enforceability of Utility Services Agreements {#sec-11-97-16 omnilex-key=us-al-statutes--title-11--11-97-16}
(a) Any county or municipality, or any instrumentality of either thereof, if authorized by resolution or ordinance of its governing body, may enter into one or more utility services agreements with a provider or providers pursuant to which such provider or providers shall provide one or more utility services for, or for the benefit of, any such governmental user that is a party to such utility services agreement. Any such utility services agreement may provide for the purchase by the governmental user thereunder of all or any part of the capacity, capability, or output of the facilities used to provide the applicable utility services. Since the receipt of utility services by a governmental user pursuant to a utility services agreement affords such governmental user the benefits of such utility services without the burdens of ownership and operation of the facilities for the provision of such utility services, and since the payments by such governmental user under such utility services agreement will constitute, in whole or in part, the source of repayment for any financing of the facilities for the provision of such utility services, any utility services agreement may provide (i) that the governmental user thereunder shall be obligated to make the payments required of it by such utility services agreement whether or not the applicable facilities are completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction, or curtailment of the capacity, capability, or output, as in the case may be applicable, of such facilities or the utility services contracted for, the nonperformance or nondelivery of the utility services contracted for, or the inability, for any reason, of the governmental user to receive or partake of the utility services so contracted for, and (ii) that the payments by the governmental user under such utility services agreement shall not be subject to any reduction, whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance by the provider or providers under such utility services agreement. Any utility services agreement pursuant to which utility services are to be provided to more than one governmental user may also provide that if one or more of such governmental users shall default in the payment of its or their obligations thereunder, then in such event the other governmental user or users that are parties to such utility services agreement shall be required to accept and pay for, and shall be entitled proportionately to and may use or otherwise dispose of, the utility services (or the capacity, capability, or output thereof) which was to be received by the defaulting governmental user. Any utility services agreement may provide that the obligation of any governmental user to make payments thereunder in respect of utility services shall be as absolute and unconditional as the obligation of such governmental user to repay money that it borrowed directly on its own credit for the purpose of financing the acquisition of facilities that would be used to provide utility services equivalent to those proposed to be provided pursuant to such utility services agreement. Any utility services agreement may extend for a period not exceeding 40 years from the date that such utility services agreement is entered into.
(b) It is hereby recognized that this chapter confers upon any governmental user the right to incur payment obligations under a utility services agreement that may constitute debt within the meaning of constitutional limitations and other applicable laws of the state, but, that fact notwithstanding, nothing contained in this chapter shall be construed
(1) To cause any such debt to lose any exemption from any constitutional debt limit to which, absent any claimed effect of any provision of this chapter, it would be entitled by virtue of the fact that it was incurred for the purpose of providing waterworks, sewers, or sewerage, or
(2) To prevent any governmental user from entering into a utility services agreement which provides that payments thereunder due in any fiscal year shall be payable only out of the revenues received by such governmental user during such fiscal year.
(c) In the event of any failure or refusal on the part of any governmental user to perform punctually any covenant or obligation contained in any utility services agreement, the provider under such utility services agreement shall have the right (1) to recover damages from such governmental user through an action at law or (2) to enforce performance by such governmental user of such covenant or obligation through any legal or equitable process, including mandamus or specific performance.
*(Acts 1984, No. 84-314, p. 695, §16.)*
##### **§ 11-97-17** Prior Approval of Utility Services Agreements and Related Agreements with Governmental Users; Notice and Public Hearing {#sec-11-97-17 omnilex-key=us-al-statutes--title-11--11-97-17}
(a) No utility services agreement or related agreements in connection with the acquisition, construction, equipment, or operation of any facilities may be entered into by any governmental user pursuant to the provisions of this chapter unless the entering into of such utility services agreement and related agreements by such governmental user is approved by resolution adopted by the governing body of such governmental user in accordance with the provisions of this chapter; and any utility services agreement or related agreements entered into without prior compliance with the provisions of this section shall be void; provided, however, that no public hearing pursuant to the provisions of this section shall be required in connection with the entering into of any utility services agreement by Tannehill Furnace and Foundry Commission.
(b) No approval of any utility services agreement or related agreements by the governing body of any governmental user shall be effective for purposes of this chapter unless such approval is obtained in compliance with the provisions of this section. Prior to entering into any utility services agreement or related agreements, the governing body of any governmental user shall designate a place, date, and time at which such governing body shall meet to consider all views expressed by the general public, whether in support or opposition, with respect to such utility services agreement, the utility services to be provided thereunder or any related agreements for the acquisition, construction, equipment, or operation of facilities for provision of such utility services. The date of such meeting to hear the views of the general public shall be not less than three weeks after the date on which notice thereof is first published as hereinafter provided. Notice of such meeting shall be published once a week for three consecutive weeks in some newspaper published within the territorial boundaries of such governmental user in the event that the governmental user is a county or municipality, or within the territorial limits of the pertinent determining subdivision or subdivisions in the event that the governmental user is an instrumentality; provided, however, that if no newspaper is at the time being published within the territorial boundaries of such governmental user, or such determining subdivision or subdivisions, as in the case may be applicable, such notice shall be published in a newspaper which the governing body of such governmental user determines to have general circulation within the territorial boundaries of such governmental user or such determining subdivision or subdivisions, as in the case may be applicable; provided further that if no newspaper is at the time being published within the territorial boundaries of such governmental user or such determining subdivision or subdivisions, as in the case may be applicable, and if the governing body of such governmental user determines that there is no newspaper at the time having general circulation within the territorial boundaries of such governmental user or such determining subdivision or subdivisions, as in the case may be applicable, then such notice may be published by posting for three weeks in three public places within such territorial boundaries. Such notice shall be deemed to comply with the requirements of this chapter if it contains (1) a statement of the intention of the governing body of such governmental user to meet at the designated place, date, and time for the purpose of hearing and considering the views of the general public with respect to the approval by such governing body of the entering into of the utility services agreement and related agreements in question, (2) a brief description of such utility services agreement and related agreements and (3) the proposed street address of the facilities for the provision of the utility services in question or such other description of the proposed location thereof as will be intelligible to the general public.
At the meeting with respect to which such notice is published, the governing body of the governmental user shall hear and consider the views of all persons desiring to be heard and may thereafter at the same meeting adopt a resolution expressing its final approval or disapproval of the entering into such utility services agreement and related agreements. Instead of taking final action with respect to such utility services agreement and related agreements at the first meeting held to hear the views of the general public, such governing body may defer such action to a subsequent meeting, and it may also continue to hear the views of the general public with respect to such utility services agreement and related agreements during one or more subsequent meetings until it takes such final action, but it may not take any final action with respect to the approval or disapproval of such utility services agreement and related agreements, or conduct other hearings with respect thereto, at any subsequent meeting unless (1) such subsequent meeting is a regular meeting of such governing body or a valid adjournment thereof and (2) at the preceding meeting at which such utility services agreement and related agreements were last considered, such subsequent meeting was publicly designated by such governing body as the place, date and time to which further consideration of such utility services agreement and related agreements was to be continued.
The decision of the governing body of any governmental user to grant or refuse any approval of the entering into of any utility services agreement or related agreements required by the provisions of this chapter shall be within the sole discretion of such governing body, and, except to the extent affected by fraud, bribery, or other unlawful conduct, the reasonableness or fairness of such governing body in approving or refusing to approve the entering into of any such utility services agreement and related agreements shall not be the subject of any case, controversy, or inquiry brought before any court of the state.
*(Acts 1984, No. 84-314, p. 695, §17; Acts 1984, 2nd Ex. Sess., No. 85-45, §1.)*
##### **§ 11-97-18** Exemption from Taxation {#sec-11-97-18 omnilex-key=us-al-statutes--title-11--11-97-18}
(a) Every corporation shall exercise its powers in all respects for the benefit of the people of the state, for their well being, and for the improvement of their health, welfare, and social condition, and the exemptions from taxation hereinafter described are hereby granted in order to promote the more effective and economical exercise of such powers.
(b) No income, sales, use, or other excise or license tax shall be levied upon or collected in the state with respect to any corporate activities of a corporation or any of its revenues, income, or profit. No ad valorem tax or assessment for any public improvement shall be levied upon or collected in the state with respect to any property during any time that title to such property is held by a corporation, including, without limiting the generality of the foregoing, any time that such property is leased to a provider by a corporation pursuant to a lease which provides that title to such property shall automatically pass to such provider upon expiration of the lease term or which gives such provider the right to purchase such property from such authority for a nominal consideration and any time that title to such property is retained by a corporation pursuant to a contract of sale with a provider which provides that title to such property shall not pass to such provider until the purchase price thereof has been paid in full; provided that any corporation may require any provider to pay to such corporation or to any county, municipality, or the state payments in lieu of any such ad valorem taxes that would be payable with respect to such property but for the application of the provisions of this section.
(c) No privilege or license taxes payable in respect of the recording or filing for record of any mortgage, deed, or other instrument, including, without limitation, the privilege taxes now imposed by Chapter 22 of Title 40, shall be levied, charged, or collected in connection with the recording or filing for record of any mortgage, deed, or other instrument evidencing a conveyance to or the creation of any property interest in a corporation, any agreement or instrument to which a corporation is a party, and any mortgage, deed, or other instrument evidencing a conveyance from a corporation to another party or the creation by a corporation of any property interest in another party.
(d) If, pursuant to any contractual agreement between a corporation and a provider, any facility has been or is to be acquired by such corporation and leased or sold to such provider or has been or is to be financed by a loan from such corporation, then in such case the gross proceeds of the sale of any property used in the construction and equipment of such facility, regardless of whether such sale is to such corporation, such provider or any contractor or agent of either thereof, shall be exempt from the sales tax imposed by Article 1 of Chapter 23 of Title 40 and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any such sale by the state or any county, municipality, or other political subdivision or instrumentality of any thereof. Further, if, pursuant to any contractual arrangement between a corporation and a provider, any facility has been or is to be acquired by such corporation and leased or sold to such provider or has been or is to be financed by a loan from such corporation, then in such case any property used in the construction and equipment of such facility, regardless of whether such property has been purchased by such corporation, such provider or any contractor or agent of either thereof, shall be exempt from the use tax imposed by Article 2 of Chapter 23 of Title 40 and all other use and similar excise taxes now or hereafter levied on or with respect to any such property by the state or any county, municipality, or other political subdivision or instrumentality of any thereof.
(e) All bonds issued by any corporation, their transfer, and the income therefrom, including the interest income thereon and any profits made on the sale thereof, shall at all times be free from taxation by the state or any county, municipality, or other political subdivision or instrumentality of the state, excepting inheritance, estate, and gift taxes.
*(Acts 1984, No. 84-314, p. 695, §18.)*
##### **§ 11-97-19** Exemption from Usury and Interest Laws {#sec-11-97-19 omnilex-key=us-al-statutes--title-11--11-97-19}
Any corporation and all contracts made by it shall be exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8. Further, any payment payable directly or indirectly by any provider pursuant to any lease, installment sale contract, loan agreement, or other contract to which a corporation is a party, any payment pursuant to any utility service agreement or any payment pursuant to any other obligation constituting the source of payment for any obligation of a corporation which, in any such case under the laws of the state in effect at the time, constitutes interest, or a payment in the nature of interest, shall be exempt from all such laws of the state governing usury or prescribing or limiting interest rates.
*(Acts 1984, No. 84-314, p. 695, §19.)*
##### **§ 11-97-20** Exemption from Competitive Bid Laws {#sec-11-97-20 omnilex-key=us-al-statutes--title-11--11-97-20}
Any corporation and all contracts made by it shall be exempt from the laws of the state requiring competitive bids for any contract to be entered into by counties, municipalities, public corporations, or other instrumentalities authorized by them, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41. Further, all contracts, whether or not involving any corporation as a party thereto, which relate to the design, construction, acquisition, financing, or operation of any facilities that are financed, in whole or in part, by any corporation pursuant to the provisions of this chapter (including, without limitation, utility services agreements and contracts for the design, construction, and equipment of such facilities) shall be exempt from (1) such laws requiring competitive bids for any contract to be entered into by counties, municipalities, public corporations, or other instrumentalities authorized by them, including, but without limitation to, the provisions of Article 3 of Chapter 16 of Title 41, and (2) the laws of the state limiting the duration of any contracts for the purchase of personal property or contractual services by counties, municipalities, public corporations, or other instrumentalities authorized by them, including, without limitation to, the provisions of Article 3 of Chapter 16 of Title 41.
*(Acts 1984, No. 84-314, p. 695, §20.)*
##### **§ 11-97-21** Disposition of Net Earnings of Corporation {#sec-11-97-21 omnilex-key=us-al-statutes--title-11--11-97-21}
Every corporation shall be a nonprofit public corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any private person, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of a corporation, then any net earnings of a corporation thereafter accruing shall be paid to its determining subdivision.
*(Acts 1984, No. 84-314, p. 695, §21.)*
##### **§ 11-97-22** Bonds of Corporation as Legal Investments {#sec-11-97-22 omnilex-key=us-al-statutes--title-11--11-97-22}
The bonds of any corporation shall be legal investments in which the state and its agencies and instrumentalities, all counties, municipalities, and other political subdivisions of the state and public corporations organized under the laws thereof, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whatsoever are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds in their control or belonging to them.
*(Acts 1984, No. 84-314, p. 695, §22.)*
##### **§ 11-97-23** Dissolution of Corporation; Vesting of Title to Corporation’s Property in Determining Subdivision {#sec-11-97-23 omnilex-key=us-al-statutes--title-11--11-97-23}
At any time when any corporation has no bonds or other obligations outstanding and when there shall be no other obligations assumed by such corporation that are then outstanding, the board of such corporation may adopt a resolution, which shall be duly entered upon its minutes, declaring that the corporation shall be dissolved. Upon filing for record of a certified copy of the said resolution in the office of the judge of probate with which the corporation’s certificate of incorporation was filed, the corporation shall thereupon stand dissolved and, in the event it owned any assets or property at the time of its dissolution, the title to all such assets or property shall thereupon vest in the determining subdivision.
*(Acts 1984, No. 84-314, p. 695, §23.)*
##### **§ 11-97-24** Incorporation of Another Corporation by Same Determining Subdivision {#sec-11-97-24 omnilex-key=us-al-statutes--title-11--11-97-24}
The formation or dissolution of one or more corporations incorporated under the provisions of this chapter shall not prevent the subsequent incorporation hereunder of other corporations pursuant to authorization by the same determining subdivision.
*(Acts 1984, No. 84-314, p. 695, §24.)*
##### **§ 11-97-25** Notice of Bond Resolution; Contest to Validity of Bonds, Etc {#sec-11-97-25 omnilex-key=us-al-statutes--title-11--11-97-25}
(a) Upon the adoption by the board of any corporation of any resolution providing for the issuance of bonds, such corporation may, in the discretion of its board, cause a notice respecting the issuance of such bonds to be published once a week for two consecutive weeks in each county in which shall be located any facility financed or in any way assisted by the issuance of such bonds, such publication in each such county to be in a newspaper having general circulation therein. Such notice shall be in substantially the following form (the blanks being properly filled in), at the end of which shall be printed the name and title of either the chairman or secretary of such corporation:
“_______, a public corporation and instrumentality of the State of Alabama, on the ______ day of _____, authorized the issuance of $_____ principal amount of bonds (or notes or other obligations, as the case may be) of the said public corporation for purposes authorized in the act of the Legislature of Alabama under which the said public corporation was organized. Any action or proceeding questioning or contesting the validity of the said bonds (or notes or other obligations), or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before _____ (here insert date determined in accordance with the provisions of subsection (b) of this section).”
(b) The date stated in such notice as the date on or before which any action or proceeding questioning or contesting the validity of the bonds referred to therein must be commenced shall be a date at least 30 days after the date on which occurs the last publication of such notice necessary for it to have been published at least once in all counties in which it is required to be published. Any action or proceeding in any court to set aside or question the proceedings for the issuance of the bonds referred to in such notice or to contest the validity of any such bonds, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with the preceding sentence and stated in such notice as the date on or before which any such action or proceeding must be commenced. After such date no right of action or defense shall be asserted questioning or contesting the validity of such bonds, or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of such bonds or such instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before such date.
*(Acts 1984, No. 84-314, p. 695, §25.)*
##### **§ 11-97-26** Provisions Cumulative {#sec-11-97-26 omnilex-key=us-al-statutes--title-11--11-97-26}
The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent such laws are clearly inconsistent with provisions of this chapter.
*(Acts 1984, No. 84-314, p. 695, §26.)*
##### **§ 11-97-27** Liberal Construction {#sec-11-97-27 omnilex-key=us-al-statutes--title-11--11-97-27}
This chapter shall be construed liberally to effect its purposes and neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which any corporation might otherwise have under any laws of the state, and the provisions of this chapter are cumulative to any such powers.
This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to other laws. However, the issuance of bonds of any corporation under the provisions of this chapter need not comply with the requirements of any other law of the state generally applicable to the issuance of bonds, notes, and other obligations by other public corporations organized under the laws of the state.
*(Acts 1984, No. 84-314, p. 695, §27.)*
### **Chapter 98** Emergency Telephone Service
##### **§ 11-98-1** Definitions {#sec-11-98-1 omnilex-key=us-al-statutes--title-11--11-98-1}
(a) As used in this chapter, the following words and terms have the following meanings, unless the context clearly indicates otherwise:
(1) AUTOMATIC NUMBER IDENTIFICATION. An enhanced 911 service capability that enables the automatic display of the 10-digit telephone number used to place a 911 call. The term includes pseudo-automatic number identification, which means an enhanced 911 service capability that enables identification of the subscriber.
(2) CALL or 911 CALL. Any request for public safety assistance that the PSAP is equipped to receive, without regard to the media used to make that request; provided, however, that the term may appear in conjunction with specific media, including voice call, video call, text call, or data-only call, when the specific media is of importance.
(3) CMRS. Commercial mobile radio service under Sections 3(27) and 332(d) of the Federal Telecommunications Act of 1996, 47 U.S.C. § 151 et seq., and Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66, Aug. 10, 1993, 107 Stat. 312. The term includes the term wireless and service provider by any wireless real time two-way voice communication device, including radio-telephone communications used in cellular telephone service, personal communication service, or the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communication service, or a network radio access line. The term does not include service whose customers do not have access to 911 or to an enhanced 911-like service, to a communications channel suitable only for data transmission, to a wireless roaming service or other non-local radio access line service, or to a private telecommunications system.
(4) CMRS CONNECTION. Each mobile telephone number assigned to a CMRS subscriber with a place of primary use in Alabama.
(5) CMRS PROVIDER. An individual or entity that provides CMRS.
(6) CREATING AUTHORITY. The municipal governing body of any municipality or the governing body of any county which, by passage of a resolution or ordinance, creates a district within its respective jurisdiction in accordance with this chapter.
(7) DISTRIBUTION FORMULA. The percentage of the total state population residing in a district, compared to the total state population residing in all districts statewide, based upon the latest census data or estimates compiled by or for the Alabama Department of Economic and Community Affairs.
(8) DISTRICT. A communication district created pursuant to this chapter.
(9) EMERGENCY SERVICE PROVIDER. An agency of the State of Alabama, or a political subdivision thereof, that provides fire fighting, rescue, natural or man-caused disaster, or major emergency response, public safety telecommunication and dispatch, law enforcement, ambulance, or emergency medical services. The term also includes private ambulance services.
(10) ENHANCED 911, E-911, or E-911 SYSTEM. An emergency telephone system that directs 911 calls to appropriate public safety answering points by selective routing based on the geographical location from which the call originated, which provides the capability for automatic number identification, and the features that the Federal Communications Commission may require in the future. Such system may include lines, facilities, and equipment necessary for answering, transferring, and dispatching public emergency telephone calls originated by persons within the service area who dial 911, but does not include dial tone first which may be made available by the service provider based on the ability to recover the costs associated with its implementation and, to the extent required by law, consistent with tariffs with and approved by the Alabama Public Service Commission.
(11) FCC ORDER. The order of the Federal Communications Commission, FCC Docket No. 94-102, adopted on June 12, 1996, and released on July 26, 1996.
(12) FIRST RESPONDER. An individual who rapidly receives and responds to emergency situations to protect life and property. The term includes law enforcement officers, fire fighters, rescue squads, emergency medical service providers, public safety telecommunicators, and any other emergency management providers responding to an emergency situation.
(13) OTHER ORIGINATING SERVICE PROVIDER. An entity other than a voice communication service provider that delivers real-time communication between a person needing assistance and an E-911 system.
(14) PHASE II ENHANCED 911. An enhanced 911 system that identifies the location of all 911 calls by longitude and latitude in conformance with accuracy requirements established by the Federal Communications Commission.
(15) PLACE OF PRIMARY USE. The street address representative of where the customer’s use of the mobile telecommunications service primarily occurs, which must be:
a. The residential street address or the primary business street address of the customer.
b. Within the licensed service areas of the CMRS provider.
(16) PUBLIC SAFETY ANSWERING POINT or PSAP. An entity responsible for receiving 911 calls and processing those calls according to a specific operational policy.
(17) PUBLIC SAFETY TELECOMMUNICATOR. An individual employed by a public safety answering point or emergency service provider as a public safety dispatcher or 911 operator whose duties and responsibilities include both of the following:
a. Answering, receiving, transferring, and dispatching functions related to 911 calls and texts.
b. Dispatching first responders to the scene of an emergency.
(18) STATEWIDE 911 BOARD or 911 BOARD. The statewide 911 Board established pursuant to Section 11-98-4.1.
(19) STATEWIDE 911 CHARGE. The statewide 911 charge created pursuant to Section 11-98-5.
(20) SUBSCRIBER. A person who purchases or subscribes to a voice communications service and is able to receive it or use it periodically over time; provided, however, that for purposes of the imposition and collection of the statewide 911 charge the term “subscriber” shall not include the State of Alabama, the counties within the state, incorporated municipalities of the State of Alabama, county and city school boards, independent school boards, and all educational institutions and agencies of the State of Alabama, the counties within the state, or any incorporated municipalities of the State of Alabama.
(21) TECHNICAL PROPRIETARY INFORMATION. Technology descriptions, technical information, or trade secrets, including the term “trade secrets” as defined by the Alabama Trade Secrets Act of 1987, Chapter 27 of Title 8, and the actual or developmental costs thereof which are developed, produced, or received internally by a voice communications service provider or by its employees, directors, officers, or agents.
(22) VOICE COMMUNICATIONS SERVICE. Any of the following:
a. The transmission, conveyance, or routing of real-time, two-way voice communications to a point or between or among points by or through any electronic, radio, satellite, cable, optical, microwave, wireline, wireless, or other medium or method, regardless of the protocol used.
b. The ability to receive and terminate voice calls to and from the public switched telephone network.
c. Interconnected VoIP service, as that term is defined by 47 C.F.R. § 9.3.
d. Such other services to which the statewide 911 charge is applied pursuant to Section 11-98-4.1(e)(8).
(23) VOICE COMMUNICATIONS SERVICE PROVIDER. An entity that provides voice communications service to a subscriber in the State of Alabama.
(b) The terms “department,” “prepaid retail transaction,” “prepaid wireless telephone service,” and “prepaid wireless consumer” shall have those meanings ascribed to them in Section 11-98-5.3.
*(Acts 1984, No. 84-369, p. 854, §3; Acts 1992, No. 92-562, p. 1165, §1; Acts 1992, 2nd Ex. Sess., No. 92-706, p. 181, §1; Act 2000-693, p. 1411, §1; Act 2012-293, p. 592, §1; Act 2014-431, p. 1582, §1; Act 2022-387, §1.)*
##### **§ 11-98-2** Districts; Creation; Composition; Powers and Duties {#sec-11-98-2 omnilex-key=us-al-statutes--title-11--11-98-2}
The creating authority may by ordinance or resolution, as may be appropriate, create within its respective jurisdiction districts composed of the territory lying wholly within the municipality or of any part or all of the territory lying wholly within the county. The districts shall be political and legal subdivisions of the state, with power to sue and be sued in their corporate names and to incur debt and issue bonds. The bonds shall be negotiable instruments and shall be solely the obligations of the district and not the State of Alabama. The bonds and the income thereof shall be exempt from all taxation in the State of Alabama. The bonds shall be payable out of the income, revenues, and receipts of the district. The bonds shall be authorized and issued by resolution or ordinance of the creating authority of the district and shall be of such series, bear such date or dates, mature at such time or times, not to exceed 30 years from issuance, bear interest at such rate or rates, be in such denominations, be in such form, without coupon or fully registered without coupon, carry such registration and exchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption, and be entitled to the priorities on the income, revenues, and receipts of the district as the resolution or ordinance may provide.
All bonds shall contain a recital that they are issued pursuant to this chapter, which recitals shall be conclusive that they have been duly authorized pursuant to this chapter.
*(Acts 1984, No. 84-369, p. 854, §1; Acts 1992, No. 92-562, p. 1165, §1; Act 2000-693, p. 1411, §1; Act 2012-293, p. 592, §1.)*
##### **§ 11-98-3** The Digits 911 Established as Primary Emergency Telephone Number {#sec-11-98-3 omnilex-key=us-al-statutes--title-11--11-98-3}
It has been shown to be in the public interest to shorten the time required for a citizen to request and receive emergency aid. The provision of a single, primary three-digit emergency number through which emergency services can be quickly and efficiently obtained will provide a significant contribution to law enforcement and other public service efforts by simplifying the notification of public service personnel. Such a simplified means of procuring emergency services will result in the saving of life, a reduction in the destruction of property, quicker apprehension of criminals, and ultimately the saving of moneys. Establishment of a uniform emergency number is a matter of concern and interest to all citizens. It is the purpose of this chapter to establish the number 911 as the primary emergency telephone number for use in communications districts created in municipalities or counties as herein provided.
*(Acts 1984, No. 84-369, p. 854, §2.)*
##### **§ 11-98-4** Board of Commissioners {#sec-11-98-4 omnilex-key=us-al-statutes--title-11--11-98-4}
(a) When any district is created, the creating authority may appoint a board of commissioners composed of seven members to govern its affairs, and shall fix the domicile of the board of commissioners at any point within the district. In the case of county districts, after the expiration of the terms of the members of the board of commissioners holding office on May 23, 2000, there may be at least one member of the board of commissioners from each county commission district if the number of the county commission does not exceed seven, unless a resolution dated before January 1, 2000, was passed by a county commission establishing an appointment process different from this section or as otherwise provided by the enactment of a local act after May 23, 2000. The members of the board of commissioners shall be qualified electors of the district, two of whom shall be appointed for terms of two years, three for terms of three years, and two for terms of four years, dating from the date of the adoption of the resolution or ordinance creating the district. Thereafter, all appointments of the members shall be for terms of four years.
(b) The board of commissioners shall have sole authority to appoint a chair and any other officers it may deem necessary from among the membership of the board of commissioners.
(c) A majority of the board of commissioners membership shall constitute a quorum and all official action of the board of commissioners shall require a quorum.
(d) The board of commissioners may employ employees, experts, and consultants as it deems necessary to assist the board of commissioners in the discharge of its responsibilities to the extent that funds are made available.
(e) In lieu of appointing a board of commissioners, the governing body of the creating authority may serve as the board of commissioners of the district, in which case it shall assume all the powers and duties of the board of commissioners as provided in this chapter.
(f) In addition to other authority and powers necessary to establish, operate, maintain, and replace an emergency communication system, the board of commissioners may do any of the following:
(1) Sue and be sued, prosecute, and defend civil actions in any court having jurisdiction of the subject matter and of the parties.
(2) Acquire or dispose of, whether by purchase, sale, gift, lease, devise, or otherwise, property of every description that the board may deem necessary, consistent with this section, and hold title to such property.
(3) Construct, enlarge, equip, improve, maintain, and operate all aspects of an emergency communication system consistent with Section 11-98-6(a).
(4) Borrow money for any of its purposes.
(5) Provide liability and hazard insurance as the board of commissioners may deem advisable to include inclusion and continuation, or both, of district employees in state, county, municipal, or self-funded liability insurance programs.
(6) Enter into contracts or agreements with public or private safety agencies for dispatch services when the terms, conditions, and charges are mutually agreed upon, unless otherwise provided by local law.
(7) Make grants to municipalities for dispatching equipment and services.
(g) The board of commissioners may elect to form a nonprofit public corporation with all of the powers and authority vested in the political and legal entities. The certificate of incorporation shall recite, in part:
(1) That the nonprofit public corporation is a political and legal subdivision of the State of Alabama as defined in this chapter;
(2) The location of its principal office;
(3) The name of the corporation; and
(4) That the governing body is the board of commissioners.
(h) Any other provisions of this chapter notwithstanding, the board of commissioners shall present to the creating authority for approval the acquisition, disposition, or improvements to real property.
(i) In addition to the requirement of subdivision (f)(5), each member of the board of commissioners and each director of an emergency communication district shall be bonded in an amount equal to one-half of one percent of the total funds received by the district in the prior fiscal year except the amount of the bond for any persons required to be bonded, shall not be less than ten thousand dollars ($10,000) nor exceed fifty thousand dollars ($50,000). The board of commissioners may require other employees to be bonded in an amount set by the board and made payable to the district. The bonds shall be paid for by the district, and a copy shall be on file at the offices of the district and at the office of the judge of probate of the county in which the district is incorporated. In the event the governing body of the creating authority serves as the board of commissioners of the district, each member of the board may combine the bond required by this section with the bond required for service on the creating authority, provided both the creating authority and the emergency communication district are adequately protected in the event of forfeiture and the portion of the bond payment required pursuant to this section is paid by the district.
(j) Two or more boards of commissioners of districts that exist on October 1, 2025, by adopting identical resolutions, may contract for the districts they govern to jointly exercise any power or service that each of the districts is authorized to exercise individually.
(1)a. It is sufficient that each of the contracting districts is lawfully authorized to exercise the power or service that is the subject of the contract regardless of the manner in which the power or service shall be exercised if at least one of the districts is authorized to exercise the power or service in the agreed upon manner.
b. The power or service that is the subject of the contract may be exercised by each contracting district or may be exercised by one or more districts on behalf of all of the contracting districts.
(2) Before adopting the resolution under this subsection, each district board of commissioners must give notice pursuant to Section 36-25A-3 of a hearing on the proposed contract at which the public may request information concerning, or present arguments for or against, the same.
(3)a. The contract must: (i) state the intent of each district to cooperate with the joint exercise of the power or service; (ii) describe the power or service that the districts will jointly exercise; and (iii) provide a termination date for the contract no later than three years from the date of the contract.
b. Notwithstanding a termination date for the contract, any district may terminate the contract by giving at least 180 days’ notice to the other district or districts.
(4)a. The existence of a district as an individual political and legal subdivision of the state under this chapter is not modified or impaired when the district enters a contract provided under this subsection, neither are the lawful powers of the district in any way modified or impaired except to the extent necessary for the district to jointly exercise the power or service that is the subject of the contract.
b. Nothing in this subsection shall restrict the powers of a district nor modify or impair the legal rights and duties under a contract that is in existence on October 1, 2025 between or among districts.
(5) 911 services may not be jointly provided pursuant to this subsection until the Statewide 911 Board certifies to the contracting districts that, pursuant to Section 11-98-4.1(e)(8), joint operations are ready to occur without service interruption.
*(Acts 1984, No. 84-369, p. 854, §4; Acts 1992, No. 92-562, p. 1165, §1; Act 2000-693, p. 1411, §1; Act 2010-503, p. 808, §1; Act 2012-293, p. 592, §1; Act 2015-53, p. 192, §1; Act 2025-373, §1.)*
##### **§ 11-98-4.1** Board Created; Composition; Powers and Duties {#sec-11-98-4.1 omnilex-key=us-al-statutes--title-11--11-98-4.1}
(a) There is created a statewide 911 Board. The board shall be comprised of 13 members. All appointing authorities shall coordinate their appointments to assure the board membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state. The 911 Board shall be created effective July 1, 2012, and until the effective date of the statewide 911 charge pursuant to Section 11-98-5, with cooperation of the CMRS Board, shall plan for the implementation of the statewide 911 charge and the distribution of the revenues as provided herein. The reasonable administrative expenses incurred by the 911 Board prior to the implementation of the statewide 911 charge may be deducted from the existing CMRS Fund. Upon the effective date of the new statewide 911 charge, the 911 Board shall replace and supersede the CMRS Board formerly created pursuant to this chapter, and the CMRS Fund shall be incorporated into, and considered part of, the 911 Fund.
(b) The 13 members of the 911 Board, each of whom shall serve for a term of four years, shall be appointed by the Governor as follows:
(1) Seven members recommended by the Alabama Association of 911 Districts, one from each of the seven congressional districts, with each district representative recommended selected by vote of the Alabama Association of 911 Districts members from that congressional district. The initial appointments shall include the three district representatives on the CMRS Board who shall serve through March 31, 2014, and a member from the first, third, fifth, and seventh congressional districts as provided herein. Following the March 31, 2014, expiration of the terms of the district representatives drawn from the CMRS Board, the Governor shall appoint a member recommended by the Association of 911 Districts from each of the second, fourth, and sixth congressional districts, it being the intent of this section that each of the seven district representatives on the board be from a different congressional district, as such districts exist on May 8, 2012.
(2) Two members recommended by CMRS providers licensed to do business in Alabama.
(3) Two members recommended by incumbent local exchange carriers operating in Alabama, who shall not be from the same local exchange carrier.
(4) Two members recommended by cable companies that provide interconnected VoIP services in Alabama, who shall not be from the same cable company.
(c) For purposes of the initial board appointments: (i) five members of the board shall be appointed for a four-year term; (ii) four members for a three-year term; (iii) the three members of the CMRS Board who are appointed pursuant to subdivision (b)(1) to terms ending on March 31, 2014; and (iv) the remaining member for a two-year term. Thereafter, board members shall serve staggered terms of four years. In the event of a vacancy, the vacancy shall be filled for the balance of the unexpired term in the same manner as the original appointment. Any vacancy occurring on the 911 Board, whether for an expired or unexpired term, shall be filled by appointment as soon as practicable after the vacancy occurs, whether for an expired or unexpired term.
(d) The governmental entities or industry groups identified in subsection (b) shall recommend at least two different individuals for each board position for which they are charged with making a recommendation, with the Governor appointing a member from among the recommended candidates.
(e)(1) All appointees shall serve their appointed terms unless the Senate elects to consider and then rejects their appointment.
(2) The entire Senate or the Senate Committee on Confirmations may elect to consider an appointment. The rejection of an appointment by the Senate Committee on Confirmations shall be considered a rejection by the entire Senate.
(f) The statewide 911 Board shall have the following powers and duties:
(1) To develop and publish a 911 Annual Report. In fulfilling this duty, the 911 Board shall monitor trends in voice communications service technology and in enhanced 911 service technology, investigate, and incorporate Geographical Information Systems (GIS) mapping and other resources into the report, and include recommended strategies for the efficient and effective delivery of enhanced 911 service. In addition, the board shall study the rates charged for 911 services and make adjustments to the rates as provided in this chapter; recommend any statutory changes necessary to ensure the most efficient and effective delivery of 911 services in Alabama over both the long-term and short-term; and provide a copy of its 911 Annual Report to members of the boards of the districts in the state through the Alabama Association of 911 Districts.
(2) To administer the 911 Fund and the monthly statewide 911 charge authorized by Section 11-98-5.
(3) To distribute revenue in the 911 Fund in accordance with this chapter.
(4) To establish policies and procedures, adopted in accordance with the Alabama Administrative Procedure Act, to fund advisory services, grants, and training for districts and to provide funds in accordance with these policies and procedures to the extent funds are available.
(5) To make and enter into contracts and agreements necessary or incidental to the performance of its powers and duties under this chapter and to use revenue available to the 911 Board under Section 11-98-5 for administrative expenses to pay its obligations under the contracts and agreements.
(6) To accept gifts, grants, or other money for the 911 Fund.
(7) To undertake its duties in a manner that is competitively and technologically neutral as to all voice communications service providers.
(8) To administer the deployment and operation of a statewide 911 voice and data system that utilizes emerging communication technologies that are capable of connecting to a 911 system and delivering 911 and emergency information to districts. The board shall use its available revenue to pay obligations under the contracts and agreements for a statewide 911 voice and data system.
(9) To establish a certification program to train and certify public safety telecommunicators employed by a primary PSAP receiving 911 calls, including establishing minimum core competency topics and minimum number of training hours, deciding whether a written examination is required, and establishing any necessary certification requirements, to the extent funds are available to cover all costs for the training established by the board. The board may establish rules for enforcement of those PSAPs that fail to participate in the certification program. Notwithstanding the foregoing, the training and certification requirements of this section shall not apply to any public safety telecommunicator employed by the state or an agency or department thereof.
(10) To adopt rules in accordance with the Administrative Procedure Act to implement this chapter; to establish the statewide 911 charge; and, in response to technological changes, apply, collect, and remit the statewide 911 charge, without duplication, to the active service connections of other originating service providers that are technically capable of accessing a 911 system, subject to the provisions applicable to voice communications service providers under this chapter.
(11) To take other necessary and proper action to implement this chapter.
*(Act 2012-293, p. 592, §2; Act 2014-431, p. 1582, §1; Act 2019-70, §1; Act 2022-387, §1; Act 2026-156, §3.)*
##### **§ 11-98-4.2** Annual Report {#sec-11-98-4.2 omnilex-key=us-al-statutes--title-11--11-98-4.2}
The Executive Director of the statewide 911 Board shall prepare an annual report detailing the training provided and administered by the 911 Board for 911 dispatchers. The report shall be submitted to the President Pro Tempore of the Senate and the Speaker of the House of Representatives by February 1, 2020, and by February 1 each year thereafter.
*(Act 2019-70, §2.)*
##### **§ 11-98-4.3** Emergency Response and Readiness of Local Communication Districts; Audit and Report; Remediation Plan {#sec-11-98-4.3 omnilex-key=us-al-statutes--title-11--11-98-4.3}
(a) For the purposes of this section, the term “readiness” refers to the capability of a district, including a public safety answering point, to expedite the answering, receiving, and transferring of 911 calls and texts to efficiently dispatch the appropriate emergency service provider as soon as possible to a correct location where property or life may be in jeopardy.
(b) The 911 Board shall establish a system that is based upon best practices as adopted by nationally recognized associations such as the National Emergency Number Association and the Association of Public Safety Communications Officials to measure the readiness of district public safety services through the collection of data related to a district’s answering, receiving, transferring, and dispatching functions relating to 911 calls, including voice, text messages, photos, and videos.
(c) The 911 Board may collect data including, but not limited to, all of the following for each district in the state:
(1) 911 call volume.
(2) Time to answer 911 calls.
(3) Time to process emergency calls in accordance with Section 11-98-11.
(4) Number of answered emergency calls versus unanswered emergency calls.
(5) Number of dropped calls.
(6) Number of calls reporting a crime.
(d) Compliance by the 911 Board with this section may be funded as an advisory service pursuant to Section 11-98-5.2(b)(7)b. or from any outside source of funding received by the 911 Board.
(e)(1) The Attorney General, based upon a complaint received concerning the performance of a local communication district, may refer the matter to the 911 Board, which shall conduct a performance audit to review and evaluate the readiness of the district.
(2) A performance audit of a district by the 911 Board may include any of the following:
a. Interviewing any individual who may have knowledge concerning district performance, including members of the district board of commissioners, the director of the PSAP, public safety telecommunicators, heads of local emergency service providers, first responders, and residents who have submitted a complaint.
b. On-site inspection of a PSAP, inspection of PSAP equipment or technical functionality, and monitoring of PSAP operations in real time.
(3)a. Upon completion of a performance audit or no later than 60 days from commencement of the audit, the 911 Board shall approve and submit a formal written report to the Attorney General which contains: (i) an evaluation of the district’s readiness; and (ii) findings of specific operational deficiencies confirmed or disclosed by the audit.
b. If operational deficiencies are confirmed, the audit report required under paragraph a. shall include a remediation plan that prescribes measures to bring the district to an acceptable level of readiness, including, but not limited to, any of the following:
1. Training requirements for public safety telecommunicators.
2. Hiring additional public safety telecommunicators.
3. Upgrade of technology, including replacement or acquisition of PSAP communications hardware or software.
4. Amendment of PSAP operating protocols, scripts, and recordkeeping.
c. The audit report shall be made public and may be posted on the website of the Attorney General or the 911 Board.
(4) Pursuant to the performance audit, the 911 Board is authorized to supervise the implementation of a remediation plan in the district.
(f) The 911 Board shall adopt rules in accordance with the Alabama Administrative Procedure Act which are necessary to implement the system described in this section.
*(Act 2026-371, §1.)*
##### **§ 11-98-5** Monthly Statewide 911 Charge {#sec-11-98-5 omnilex-key=us-al-statutes--title-11--11-98-5}
(a) A single, monthly statewide 911 charge shall be imposed on each active voice communications service connection in Alabama that is technically capable of accessing a 911 system. For each digital transmission link, including primary rate interface service or Digital Signal-1 (DS-1) level service, or equivalent, that can be channelized and split into 23 or 24 voice-grade or data-grade channels for voice communications, a subscriber shall be assessed on the number of channels configured for or capable of accessing a 911 system. If the number of such channels so configured is not readily determinable, the service charge per DS-1, or equivalent, shall be assessed on 23 voice communications service connections. The 911 Board shall also establish a maximum number of wireline 911 charges to be imposed at a single subscriber location for bills rendered on or after January 1, 2015, following the same procedures and deadlines provided in this subsection for a subsequent adjustment to the initial statewide 911 charge, which shall not be counted against the number of permitted rate adjustments during such fiscal year. For CMRS providers, the statewide 911 charge shall be levied on each CMRS connection with a primary place of use in the State of Alabama. The statewide 911 charge is payable by the subscriber to the voice communications service provider. Except as otherwise provided in this chapter, the voice communications service provider shall list the statewide 911 charge separately from other charges on the bill and the charge shall be collected according to the regular billing practice of the voice communications service provider. The statewide 911 charge collected under this section shall not be subject to taxes or charges levied on or by the voice communications service provider nor shall the charges and fees be considered revenue of the voice communications service provider for any purposes. Partial payments made by a subscriber are applied first to the amount owed for voice communications service. The 911 Board shall collect from each voice communications service provider the monthly statewide 911 charges prescribed herein. The initial statewide 911 charge shall be developed by the 911 Board at an amount calculated to produce, after deduction of administrative fees specified in this chapter, annual total revenues equal to the annual 911 fees collected by or on behalf of, or owed to, districts and governmental bodies, as calculated for purposes of the base distribution amount under subdivision (3) of subsection (b) of Section 11-98-5.2, plus, without duplication, (1) the amount of CMRS service charges collected by the CMRS Board for the 12 months ending September 30, 2011, and (2) an amount equal to any other taxpayer funding of E-911 systems by counties or municipalities in areas where no separate 911 fee is imposed. The revenues and other funds used to determine the initial statewide 911 charge shall be hereafter referred to as the baseline 911 revenues. The statewide 911 charge shall be uniformly applied and shall be imposed throughout the state, and shall replace all other 911 fees or 911 taxes. The 911 Board shall certify that the initial statewide 911 charge adopted herein is reasonably calculated so as not to exceed the funding requirements of this chapter. The board shall submit the recommended statewide 911 charge to the Permanent Oversight Commission for review and approval no later than March 1, 2013. The Permanent Oversight Commission may reject the recommended statewide 911 charge and specify an alternative charge, calculated in accordance with this chapter, by an affirmative vote of six of its members; provided, however, in no case may the Permanent Oversight Commission establish a rate which reduces funding below that necessary to produce the baseline 911 revenues as established under this chapter. Failure of the Permanent Oversight Commission to reject the recommended statewide charge and specify an alternative charge within 30 days of submission shall result in the charge being deemed approved for implementation on October 1, 2013, without the need for further action. Should the Permanent Oversight Commission reject the recommended statewide 911 charge and specify an alternative rate, it shall specify the basis for its action to the board, which may, by a supermajority of 60 percent of a quorum of its members, reject the alternative charge in favor of its original recommended charge or a lower charge. The statewide 911 charge established by the 911 Board following such second review shall not be subject to further review by the Permanent Oversight Commission and shall take effect automatically on October 1, 2013. Failure of the 911 Board to reject or modify the alternative charge submitted by the Permanent Oversight Commission within 30 days of submission shall result in the alternative charge being deemed approved for implementation on October 1, 2013, without the need for further action.
(b) A voice communications service provider shall remit the statewide 911 charge collected by it under this section to the 911 Board, utilizing such electronic or paper reporting forms that may be adopted by the 911 Board by rule. The provider shall remit the collected charges by the end of the calendar month following the month the provider received the charges from its subscribers. A voice communications service provider may deduct and retain from the statewide 911 charges it receives from its subscribers and remits to the 911 Board an administrative allowance in an amount equal to one percent. The voice communications service provider shall maintain records of the amount of the statewide 911 fees collected for a period of at least two years from the date of collection. Good faith compliance by the voice communications service supplier with this chapter shall constitute a complete defense to any legal action or claim that may result from the voice communications service provider’s determination of nonpayment or the identification of service users, or both.
(c) Subject to succeeding provisions of this subsection:
(1) The 911 Board, from time to time but in no event more than once every fiscal year, shall increase or decrease the rate of the statewide 911 charge by an amount reasonably calculated to produce the baseline 911 revenues, plus any additional revenues necessary to meet the requirements of subdivision (6) of subsection (b) of Section 11-98-5.2.
(2) The 911 Board, not later than October 1 in the year 2018 and each fifth year thereafter, shall adjust the 911 charge to produce an increase in the baseline 911 revenues sufficient to increase the amount distributed to each district under this chapter during the immediately preceding fiscal year by an amount equal to the rate of growth, determined as a percentage, in the Consumer Price Index for Urban Consumers (CPI-U) for such five-year period. Once adjusted as provided in this section, the resulting revenues shall become the baseline 911 revenues until amended or adjusted under the procedures established in this chapter.
(3) Any adjustments to the statewide 911 charge pursuant to this subsection shall follow the same procedures, standards, and deadlines provided in subsection (a) for review of the initial statewide 911 charge, with the exception that the adjustment shall be effective at a date set by the board at least 90 days after, as applicable, the expiration of the time period for action by the Permanent Oversight Committee on the adjustment or the 911 Board’s action in adopting a final adjustment following action by the Permanent Oversight Committee. In addition, the 911 Board, not less than 90 days prior to the effective date of any such increase or decrease in the rate of the statewide 911 charge, shall notify each voice communications service provider and CMRS provider of such increase or decrease, as the case may be. Notwithstanding any provision of this subsection to the contrary, in no event shall the revenues produced by the statewide 911 charge exceed the amounts deemed by the 911 Board to be necessary to satisfy the requirements of this chapter.
(d) A voice communications service provider has no obligation to take any legal action to enforce the collection of the statewide 911 charge billed to a subscriber. The 911 Board may initiate a collection action, and reasonable costs and attorney’s fees associated with that collection may be assessed against the subscriber. A voice communications service provider shall quarterly report to the 911 Board the amount of the provider’s uncollected service charges. The 911 Board may request, to the extent permitted by federal and state privacy laws, the name, address, and telephone number of a subscriber who refuses to pay the statewide 911 charge.
(e) No district may impose a service charge or other fee on a subscriber to support a 911 system.
(f) At any time after October 1, 2013, should the 911 Board determine that the revenues allocated to CMRS providers under subdivision (7) of subsection (b) of Section 11-98-5.2 for reimbursement to CMRS providers exceed those necessary to meet funding requirements, it may distribute any excess revenues in accordance with subdivision (1) of subsection (b) of Section 11-98-5.2.
*(Acts 1984, No. 84-369, p. 854, §3; Acts 1992, No. 92-562, p. 1165, §1; Acts 1992, 2nd Ex. Sess., No. 92-706, p. 181, §1; Acts 1995, No. 95-667, p. 1378, §1; Acts 1996, 1st Ex. Sess., No. 96-47, p. 62, §3; Act 2012-293, p. 592, §1; Act 2014-431, p. 1582, §1.)*
##### **§ 11-98-5.1** (Repealed Effective October 1, 2013) Maximum Tariff Rates {#sec-11-98-5.1 omnilex-key=us-al-statutes--title-11--11-98-5.1}
*[Repealed]*
Repealed by Act 2012-293, §3, effective October 1, 2012.
*(Act 2005-111, p. 177, §1.)*
##### **§ 11-98-5.2** 911 Fund {#sec-11-98-5.2 omnilex-key=us-al-statutes--title-11--11-98-5.2}
(a) Effective October 1, 2013, the 911 Fund shall be created as an insured interest-bearing account into which the 911 Board shall deposit all revenues derived from the service charge levied on voice communications service providers under this chapter and all prepaid wireless 911 charges received from the department. The revenues deposited into the 911 Fund shall not be monies or property of the state and shall not be subject to appropriation by the Legislature. The 911 Board shall administer the fund and shall credit the 911 Fund all revenues received. The fund and revenues generated by the fund may only be used as provided in this chapter.
(b) Effective October 1, 2013, there shall first be deducted, no more than once during each calendar month, from the total amount of the statewide 911 charges paid over to the 911 Board during the month, a sum not to exceed one percent of the total amount, to be applied by the 911 Board exclusively for payment of administrative expenses incurred by it and, at the board’s discretion, the awarding of additional operational grants to districts outside of the other distribution criteria in this subsection upon a showing of hardship. The balance of the total amount of the statewide 911 charges paid over to the 911 Board during each calendar month shall be deposited into the 911 Fund and shall be apportioned and distributed in accordance with this subsection.
(1) There shall be distributed each month among all districts, from the monies deposited in the 911 Fund, an aggregate amount equal to 80 percent of all statewide 911 charges remitted to the 911 Board with respect to the month or an amount sufficient to satisfy the base distribution amount as defined in subdivisions (3) and (4), whichever is larger.
(2) There shall be paid each month to each district, out of the amount described in subdivision (1), one-twelfth of the sum of the base distribution amount defined, as applicable, in subdivisions (3) and (4), plus the per capita distribution amount defined in subdivision (5).
(3) The term “base distribution amount,” as used in this section with respect to any district with a functioning 911 system as of September 30, 2011, and except as otherwise provided in this subdivision and subdivision (4), means the highest dollar amount per year of emergency telephone service charges, excluding any fees received from the CMRS Fund, if any, received by the district during the five prior consecutive fiscal years ending on September 30, 2011; provided, that, if the district first levied any such service charge, or if the district by vote of the commissioners of the district, during the fiscal year ending on September 30, 2011, or seven months thereafter, increased the rate of the charge effective on or before January 1, 2013, then the total dollar amount of the emergency telephone service charges with respect to the fiscal year ending September 30, 2011, shall be the amount that would have been collected had the increased rate been in effect for the entire fiscal year ending September 30, 2011. Any vote of the commissioners authorizing an increase in fees under the preceding sentence may be contingent upon the enactment of Act 2012-293. No adjustment shall be made under the preceding sentence to take into account any increase in an emergency service charge adopted by a district after January 1, 2012, if such district shall have otherwise increased its emergency service charge since January 1, 2011. For any district established prior to September 30, 2011, but which initiated 911 service between September 30, 2011, and June 1, 2012, the base distribution amount shall be the amount that would have been collected if the 911 charge imposed by the district on August 1, 2012, had been in effect for the entire fiscal year. For any county or municipal district that was funding an E-911 system on September 30, 2011, without a separate 911 fee, the base distribution amount shall be the product of: That amount determined by the board to be the county or municipality’s total funding of its E-911 system for purposes of calculation of the initial statewide rate under Section 11-98-5(a), multiplied by a fraction, the numerator of which is the total wireline 911 fees paid to all districts as of September 30, 2011, and the denominator of which is the total wireline and wireless 911 fees determined by the board to have been paid to all districts and the CMRS Board for the same period. Within 90 days of the effective date of any adjustment in the statewide 911 charge to increase the baseline 911 revenues under Section 11-98-5(c)(2), the base distribution amount shall be increased by an amount equal to the product of: a. the total amount distributed to the district in the immediately preceding fiscal year, multiplied by b. the rate of growth, determined as a percentage, in the CPI-U utilized by the 911 Board for the prior five-year period pursuant to Section 11-98-5(c)(2).
(4)a. Any district that has, prior to March 1, 2011, entered into one or more contracts, including, without limitation, any lease, lease-purchase, or purchase agreement or contract, to acquire equipment utilized or to be utilized as part of a single, comprehensive, countywide radio system to be operated within the boundaries of the district, no later than December 31, 2012, may provide the 911 Board a copy of a pro forma financial statement setting forth revenue and expense projections demonstrating the ability of the district to pay all principal and interest maturing or coming due with respect to any contracts, and any bonds or other obligations issued or incurred by the district to evidence the borrowing of money by the district in connection with the planning, acquisition, construction, and equipment of the countywide radio system, and other system costs. The revenue projections shall set forth the district’s annualized revenues that would be included in the base distribution amount as calculated in subdivision (3), for the fiscal year of the district ending on September 30, 2011, or any fiscal year thereafter during which the contracts, bonds, or other obligations are expected to be outstanding and unpaid, and the amount received by the district during the fiscal year ending September 30, 2011, from the CMRS Fund. The pro forma statement shall be accompanied by such supporting information as may be reasonably requested by the 911 Board, whose review shall be limited to the accuracy and reasonableness of the revenue and expense projections contained therein solely for the purposes of this subsection and which shall not extend to the approval or disapproval of any projects authorized by the district under existing law.
b. For a district meeting the requirements of this subdivision, the base distribution amount for the district, during any fiscal year or years in which the contracts, bonds, or other obligations outstanding and unpaid, shall be increased by the difference, if any, between the revenue projections shown in the pro forma financial statement and the base distribution amount as calculated under subdivision (3), and the district’s per capita distribution amount, as defined in subdivision (5), shall be reduced by an amount equal to the difference, with the amount of the reduction added to the amount available for payment to other districts under subdivision (5).
(5) The term “per capita distribution amount,” as used in this section with respect to any district, means the district’s pro rata share, computed according to the distribution formula, of the amount described in subdivision (1) that remains after payment in full of the aggregate base distribution amounts required to be paid to all districts.
(6) Notwithstanding the preceding provisions of this subsection, there shall never be paid to any district, during any fiscal year, from the monies deposited into the 911 Fund, an amount less than the sum of the total dollar amount of the initial base distribution amount received by the district as calculated under subdivision (3) plus, without duplication, the amount received by the district from the CMRS Fund during the fiscal year ending September 30, 2011. For any county or municipal district that was funding an E-911 system on September 30, 2011, without a separate 911 fee, there shall never be paid from the monies deposited into the 911 Fund, during any fiscal year, an amount less than the sum of that amount determined by the board to be the county or municipality’s funding of its E-911 system for purposes of calculation of the initial statewide rate under this section.
(7)a. Except as otherwise provided in subdivision (6), there shall be set aside and deposited each month, into a separate account, which may, but need not, form a part of the 911 Fund, an amount equal to the remaining balance of the statewide 911 charges remitted to the 911 Board with respect to the month. All monies in the separate account shall be used for the costs related to administering a statewide 911 voice and data system in compliance with the technological requirements established by the FCC order and as provided in Section 11-98-4.1(e)(8); and for the payment of actual and direct costs incurred by CMRS providers in complying with wireless E-911 service requirements established by the FCC Order and complying with any rules or regulations adopted at any time by the FCC pursuant to the FCC Order; and the costs may include, without limitation, costs and expenses incurred in connection with designing, upgrading, purchasing, leasing, programming, installing, testing, or maintaining all necessary data, hardware, and software required in order to provide Phase II Enhanced 911, and the incremental costs of operating Phase II Enhanced 911.
b. After the requirements in paragraph a. are fulfilled, the remaining funds shall be allocated for one or more of the following purposes: (i) to fund the costs of all required training and certification of public safety telecommunicators; (ii) to fund the costs of advisory services provided to the districts; (iii) to fund a grant program for districts demonstrating financial hardship; or (iv) equally among the districts as determined by majority vote of the board. The board, by rule, shall establish the maximum balance to be carried over in the separate account at the conclusion of each fiscal year.
(c) Each CMRS provider wishing to participate in the payments provided in subdivision (b)(7) for expenses related to providing Phase II Enhanced 911 shall certify to the 911 Board that the provider does not then collect a cost-recovery or other similar separate charge from its customers. CMRS providers failing to provide the certification by October 1 are ineligible to receive any payments until such certificate is provided to the 911 Board. Any CMRS provider electing to collect cost-recovery or other similar separate charges at any time following its October 1 certification shall immediately notify the 911 Board and is ineligible to participate in the payments established in this subsection until ceasing the collection from its customers and providing the notice required herein. This requirement shall only apply to payments for expenses related to providing Phase II Enhanced 911.
(d) Any CMRS provider wishing to receive reimbursement of costs under the guidelines established by subsection (c) shall also comply with Section 11-98-7.
(e) In the event that there are wireless emergency telephone services that cannot be efficiently performed at the district level or there are expenses that cannot be properly allocated at the district level, the 911 Board may determine the smallest practical unit basis for joint implementation and provide reimbursements in accordance with this section.
*(Act 2012-293, p. 592, §2; Act 2025-376, §1.)*
##### **§ 11-98-5.3** Prepaid Wireless Telephone Service {#sec-11-98-5.3 omnilex-key=us-al-statutes--title-11--11-98-5.3}
(a) As used in this section, the following words and terms shall have the following meanings unless the context clearly indicates otherwise:
(1) DEPARTMENT. The Department of Revenue for the State of Alabama.
(2) PREPAID RETAIL TRANSACTION. The purchase of prepaid wireless telecommunications service from a seller for any purpose other than resale.
(3) PREPAID WIRELESS CONSUMER. A person who purchases prepaid wireless telecommunications service in a retail transaction.
(4) PREPAID WIRELESS TELEPHONE SERVICE. A service that meets all of the following requirements:
a. Authorizes the purchase of CMRS, either exclusively or in conjunction with other services.
b. Must be paid for in advance.
c. Is sold in units or dollars whose number or dollar value declines with use and is known on a continuous basis.
(b) Notwithstanding any other provision of this chapter, the current CMRS emergency telephone service charge established under subdivision (1) of subsection (b) of Section 11-98-7 and, upon its implementation, the replacement, statewide 911 charge to be established under subsection (a) of Section 11-98-5 shall be collected on prepaid wireless telephone service on each retail transaction as follows:
(1) The prepaid wireless statewide 911 charge shall be collected on prepaid wireless by the seller from the prepaid wireless consumer with respect to each retail transaction occurring in this state. The amount of the prepaid wireless 911 charge shall be either separately stated on an invoice, receipt, or other similar document that is provided to the prepaid wireless consumer by the seller, or otherwise disclosed to the prepaid wireless consumer. If a minimal amount of prepaid wireless telephone service is sold for a single, non-itemized price as part of the purchase of a wireless communications device, the seller may elect not to apply the prepaid communications charge to the initial transaction. For these purposes, a service allotment denominated as 10 minutes or less, or five dollars ($5) or less, is a minimal amount. If the seller elects to collect such charge, it shall be treated as all other prepaid communications charges under this chapter.
(2) For purposes of subdivision (1), a retail transaction that is effected in person by a prepaid wireless consumer at a business location of the seller shall be treated as occurring in this state if that business location is in this state, and any other retail transaction shall be treated as occurring in this state if the retail transaction is treated as occurring in this state for purposes of Chapter 23 of Title 40.
(3) The prepaid wireless 911 charge is the liability of the prepaid wireless consumer and not of the seller or of any provider, except that the seller shall be liable to remit all prepaid wireless 911 charges that the seller collects from prepaid wireless consumers as provided in subdivisions (6) and (7) of this subsection, including all charges that the seller is deemed to collect where the amount of the charge has not been separately stated on an invoice, receipt, or other similar document provided to the prepaid wireless consumer by the seller.
(4) The amount of the prepaid wireless 911 charge that is collected by a seller from a prepaid wireless consumer, if the amount is separately stated on an invoice, receipt, or other similar document provided to the prepaid wireless consumer by the seller, shall not be included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this state, any political subdivision of this state, or any intergovernmental agency.
(5) The prepaid wireless 911 charge shall be increased or decreased, as applicable, upon any change to the rate specified in subdivision (1) of subsection (b) of Section 11-98-7 or, upon its implementation, the statewide 911 charge. The increase or decrease shall be effective on the effective date of the change to the postpaid charge or, if later, the first day of the first calendar month to occur at least 60 days after the enactment of the change to the rate specified in subdivision (1) of subsection (b) of Section 11-98-7 or, upon its implementation, the statewide 911 charge. The department shall provide not less than 30 days of advance notice of the increase or decrease on the department’s website.
(6) Prepaid wireless 911 charges collected by sellers shall be remitted to the department at the times and in the manner provided by Chapter 23 of Title 40. The department shall establish registration and payment procedures that substantially coincide with the registration and payment procedures that apply to Chapter 23, Title 40.
(7) A seller shall be permitted to deduct and retain four percent of prepaid wireless 911 charges that are collected by the seller from prepaid wireless consumers.
(8) The audit and appeal procedures applicable to Chapter 23 of Title 40 shall apply to prepaid wireless 911 charges.
(9) The department shall establish procedures by which a seller of prepaid wireless telecommunications service may document that a sale is not a retail transaction, which procedures shall substantially coincide with the procedures for documenting sales for resale transactions for sales and use tax purposes under Chapter 23 of Title 40.
(10) The department shall pay all remitted prepaid wireless 911 charges over to the Commercial Mobile Radio Services Board and, upon the effective date of the statewide 911 charge, to the statewide 911 Board, within 30 days of receipt, for use by the board in accordance with the purposes permitted by this chapter, after deducting an amount, not to exceed two percent of collected charges, that shall be retained by the department to reimburse its direct costs of administering the collection and remittance of prepaid wireless 911 charges.
(c) The enactment of this section does not constitute an expression as to the application of the CMRS service charge to prepaid service before the adoption of Act 2012-293.
*(Act 2012-293, p. 592, §2.)*
##### **§ 11-98-6** Disposition of Funds {#sec-11-98-6 omnilex-key=us-al-statutes--title-11--11-98-6}
(a) Funds received by a district pursuant to Section 11-98-5.2 shall be used to establish, operate, maintain, and replace an emergency communication system that, without limitation, may consist of the following:
(1) Telephone communications equipment to be used in answering, transferring, and dispatching public emergency telephone calls originated by persons within the service area who dial 911.
(2) Emergency radio communications equipment and facilities necessary to transmit and receive dispatch calls.
(3) The engineering, installation, and recurring costs necessary to implement, operate, and maintain an emergency communication system.
(4) Facilities to house E-911 operators and related services as defined in this chapter, with the approval of the creating authority, and for necessary emergency and uninterruptable power supplies for the systems.
(5) Administrative and other costs related to subdivisions (1) to (4), inclusive.
(b) A district or county or municipal governing body may receive federal, state, county, or municipal real or personal property and funds, as well as real or personal property and funds from private sources, and may expend the funds or use the property for the purposes of this chapter.
(c) Subject to the remaining provisions of this chapter and the approval of the 911 Board and the creating authority, two or more districts, cities, or counties, or a city and a county in another district may agree to cooperate, to the extent practicable, to provide funding and service to their respective areas, and a single board of commissioners of not more than seven members may be appointed to conduct the affairs of the entities involved. In the event that two or more districts are consolidated for purposes of this chapter, the base distribution amount as defined in Section 11-98-5.2 (b)(3) shall include the combined base distribution amounts that would have been calculated for the individual districts.
(d) Subject to rules that may be adopted by the 911 Board, a district may expend available funds to establish a common address and location identification program and to establish the emergency service number data base to facilitate efficient operation of the system. The governing body and the E-911 Board of each county or city affected shall be jointly responsible for purchasing and installing the necessary signs to properly identify all roads and streets in the district.
(e) Beginning with fiscal year 2013, the Department of Examiners of Public Accounts shall audit each district on a biennial basis to ensure compliance with the requirements of this chapter regarding both revenues and expenditures.
*(Acts 1984, No. 84-369, p. 854, §5; Acts 1992, No. 92-562, p. 1165, §1; Act 98-338, p. 584, §1; Act 2007-459, p. 950, §1; Act 2012-293, p. 592, §1.)*
##### **§ 11-98-7** Reimbursement of CMRS Providers from 911 Fund {#sec-11-98-7 omnilex-key=us-al-statutes--title-11--11-98-7}
(a) CMRS providers are eligible for reimbursement from the 911 Fund as set forth in subsections (b) and (c) of Section 11-98-5.2. To obtain reimbursement, a CMRS provider shall comply with all of the following:
(1) Invoices shall be sworn.
(2) All costs and expenses must be commercially reasonable.
(3) All invoices for reimbursement shall be directly related to compliance with the requirements of enhanced 911 service.
(4) The board shall adopt rules providing for prior approval of any expenditures for which the CMRS provider intends to seek reimbursement in excess of a threshold amount.
(5) All invoices shall be supported by such reasonable supporting documents as required by the board and shall be subject to audit.
(b) If the total amount of invoices submitted to the 911 Board and approved for payment in a month exceeds the amount available from the 911 Fund for reimbursements to CMRS providers, the amount payable to each CMRS provider shall be reduced proportionately so that the amount paid does not exceed the amount available for payment. The balance of the payment is deferred to the following month. A deferred payment accrues interest at a rate equal to the rate earned by the 911 Fund until it is paid.
*(Acts 1984, No. 84-369, p. 854, §6; Act 98-338, p. 584, §1; Act 2007-459, p. 950, §1; Act 2008-146, p. 233, §3; Act 2012-293, p. 592, §1.)*
##### **§ 11-98-7.1** (Repealed Effective October 1, 2013) Phase II Enhanced 911 Implementation Fund; Reimbursement of Costs; Disposition of Funds {#sec-11-98-7.1 omnilex-key=us-al-statutes--title-11--11-98-7.1}
*[Repealed]*
Repealed by Act 2012-293, §3, effective October 1, 2012.
*(Act 2007-459, p. 950, §2.)*
##### **§ 11-98-7.2** Alabama Emergency Communication District Long-Range Study Commission {#sec-11-98-7.2 omnilex-key=us-al-statutes--title-11--11-98-7.2}
*[Repealed]*
Repealed by Act 2007-459, §3(g) effective June 1, 2008.
*(Act 2007-459, p. 950, §3.)*
##### **§ 11-98-8** (Repealed Effective October 1, 2013) Commercial Mobile Radio Service - Duties of Providers; Service Charges {#sec-11-98-8 omnilex-key=us-al-statutes--title-11--11-98-8}
*[Repealed]*
Repealed by Act 2012-293, §3, effective October 1, 2012.
*(Act 98-338, p. 584, §2; Act 2007-459, p. 950, §1.)*
##### **§ 11-98-9** Technical Proprietary Information {#sec-11-98-9 omnilex-key=us-al-statutes--title-11--11-98-9}
All technical proprietary information submitted to the board or to the independent third-party auditor as provided by Section 11-98-13 shall be retained by the board and the auditor in confidence and shall be subject to review only by the Examiners of Public Accounts. Notwithstanding any other provision of the law, no technical proprietary information submitted shall be subject to subpoena or otherwise released to any person other than to the submitting voice communication provider, the board, and the independent third-party auditor without the express permission of the administrator and the submitting voice communication provider. General information collected by the independent third-party auditor shall only be released or published in aggregate amounts which do not identify or allow identification of numbers of subscribers or revenues attributable to an individual voice communication provider. Notwithstanding any other provision of the law, no district, political subdivision, voice communication provider, or its employees, directors, officers, or agents shall be liable for any damages in a civil action or subject to criminal prosecution resulting from death, injury, or loss to persons or property incurred by any person in connection with establishing, developing, implementing, maintaining, operating, and otherwise providing 911 service in compliance with the requirements established by the FCC or other state or federal requirement, except in the case of willful or wanton misconduct.
*(Act 98-338, p. 584, §2; Act 2012-293, p. 592, §1.)*
##### **§ 11-98-10** Restrictions on 911 Use; Secondary Backup Emergency Number Authorized; Certain Automatic Alerting Devices Connected to Network Prohibited; Possible Penalties for Misuse {#sec-11-98-10 omnilex-key=us-al-statutes--title-11--11-98-10}
(a) The telephone number 911 is restricted to emergency calls that may result in dispatch of the appropriate response for: fire suppression and rescue, emergency medical services or ambulances, hazardous material, disaster, or major emergency occurrences, and law enforcement activities.
(b) The digits 911 shall be the primary emergency telephone number, but the involved agencies may maintain a separate secondary backup number and shall maintain a separate number for non-emergency telephone calls.
(c) No person shall connect to a service supplier’s network or to a CMRS provider’s network any automatic alarm, or other automatic alerting device that automatically dials, without human initiation, and provides a pre-recorded message in order to directly access the services that may be obtained through dialing 911.
(d) The making of a false alarm, complaint, or knowingly reporting false information using the E-911 system, may subject the caller to penalties as provided by law.
*(Act 98-338, p. 584, §2.)*
##### **§ 11-98-11** Methods of Response to Emergency Calls {#sec-11-98-11 omnilex-key=us-al-statutes--title-11--11-98-11}
(a) The enhanced 911 system shall be designed to have the capability of utilizing at least one of the following methods in response to emergency calls:
(1) Direct dispatch method, which is a service to a centralized dispatch center providing for the dispatch of an appropriate emergency service unit upon receipt of a request for services and a decision as to the proper action to be taken.
(2) Relay method, which is a service whereby pertinent information is noted by the recipient of a request for emergency services, and is relayed to the appropriate emergency service providers or other providers of emergency services for dispatch of an emergency service unit.
(3) Transfer method, which is a service that receives requests for emergency services and directly transfers the requests to an appropriate emergency service provider or other provider of emergency services.
(4) Referral method, which is a service that, upon the receipt of a request for emergency services, provides the requesting party with the telephone number or other contact information of the appropriate emergency service provider or other provider of emergency services.
(b)(1) The board of commissioners of each district shall select the method or methods that it determines to be the most feasible for the county or municipality.
(2) In addition to the method selected under subdivision (1), the board of commissioners of each district shall select one or more reasonable alternative methods to respond to emergency calls in the district in the event the primary method under subdivision (1) fails or is otherwise rendered temporarily unavailable. The reasonable alternative method authorized under this subdivision may include a method not specifically enumerated under subsection (a).
(c) Notwithstanding any other law to the contrary, regardless of the method of response selected by the board of commissioners pursuant to subsection (b), a PSAP shall require a 911 operator who answers a 911 call at the PSAP to remain on the call with the individual until the PSAP has connected the individual with the appropriate provider of emergency services.
(d) Nothing in this chapter shall expand the obligations of any CMRS, voice communications, or other originating service provider to transmit, convey, or route a voice call, video call, text call, data-only call, or any other request for assistance to an emergency service provider beyond the requirements set forth under federal law and valid regulations of the Federal Communications Commission.
*(Act 98-338, p. 584, §2; Act 2022-387, §1.)*
##### **§ 11-98-12** Release of Audio Recording; Public Records; Transcript, Retention of Recordings {#sec-11-98-12 omnilex-key=us-al-statutes--title-11--11-98-12}
(a) An emergency communications district may not release the audio recording of a 911 telephone call or the name of a victim except pursuant to a court order finding that the right of the public to the release of the recording outweighs the privacy interests of the individual who made the 911 call, the victim, or any person involved in the facts or circumstances relating to the 911 call. This section shall not apply to law enforcement personnel conducting an investigation where the 911 telephone call is or may be relevant to the investigation.
(b) An audio recording may be released without a court order to the caller whose voice is on the 911 audio recording or, in the event that the caller is deceased or incapacitated, to the legal representative of the caller or the caller’s estate, provided the person seeking the 911 audio recording submits a sworn affidavit to include sufficient information so that the emergency communications district director may verify the statements which attest to the following facts:
(1) That the individual signing the affidavit is the caller or that the caller is deceased or incapacitated and the individual signing the affidavit is the legal representative of the caller or the caller’s estate.
(2) That release of the 911 audio recording is pertinent to the investigation of a legal matter resulting from the events necessitating the making of the 911 call at issue.
(c) Notwithstanding subsections (a) and (b), any written or electronic record detailing the circumstances, response, or other events related to a 911 call, other than the audio recording of the 911 call, which is kept by the emergency communications district in its regular course of business shall be deemed a public writing under Section 36-12-40, and subject to public inspection as otherwise provided by law.
(d)(1) Notwithstanding subsections (a) and (b), upon request by a person or individual granted access to public writing under Section 36-12-40 and payment of a reasonable fee not to exceed the actual cost of transcription, an emergency communications district shall provide to the requestor a transcript of a specific 911 telephone call which is kept by the emergency communications district in its regular course of business.
(2) A request for a 911 transcript pursuant to this subsection shall identify the 911 transcript with a degree of specificity that allows the emergency communication district to identify the individual call from others that may have been received during the same time period as the call to which the requested transcript relates or from others involving similar circumstances.
(3) Before providing the transcript, the emergency communications district may redact the name, address, and telephone number of the caller or any individual involved in the facts or circumstances relating to the 911 call, as well as any other personal identifying or sensitive information.
(4) A person who has requested a transcript pursuant to this subsection shall be responsible for that transcript following receipt of the transcript.
(e) An emergency communications district shall retain a recording of each 911 telephone call received by the district for two years following the date of the call. At the request of any agency conducting a criminal investigation or any attorney conducting a civil investigation, the district shall retain a recording for an additional two years.
*(Act 2010-502, p. 806, §1; Act 2022-363, §1.)*
##### **§ 11-98-13** Biennial Audit {#sec-11-98-13 omnilex-key=us-al-statutes--title-11--11-98-13}
On a biennial basis, if not more frequently, the 911 Board shall retain an independent, third-party auditor for the purposes of receiving, maintaining, and verifying the accuracy of any and all information, including all proprietary information, that is required to be collected, or that may have been submitted to the board by voice communication providers and districts, and the accuracy of the collection of the 911 service charge required to be collected.
*(Act 2012-293, p. 592, §2.)*
##### **§ 11-98-13.1** Permanent Oversight Commission on 911 {#sec-11-98-13.1 omnilex-key=us-al-statutes--title-11--11-98-13.1}
(a) The Permanent Oversight Commission on 911 is established. The commission shall do the following:
(1) Study the operational and financial condition of the current 911 systems within the State of Alabama and publish a report detailing the same.
(2) Study the rate charged for 911 services and make recommendations to the board regarding adjustments to the rate.
(3) Develop recommendations for the most efficient and effective delivery of 911 services in Alabama over both the long- and short-term.
(4) Study the charges levied by each telecommunications provider to each communications district for both data base and network charges.
(5) Develop legislation necessary to implement its long-term 911 plan.
(6) Report its findings, recommendations, and proposed legislation to the Legislature prior to the last day of the 2014 Regular Session.
(b) The commission shall remain in place until the later of the end of the 2014 Regular Session or the time necessary to complete any pending review of a proposed adjustment to the statewide 911 charge adjustment under Section 11-98-5 after which the duties, responsibilities, and powers of the Permanent Oversight Committee under this chapter shall be assumed by the Joint Committee on Administrative Regulation Review. Any action under this chapter requiring an affirmative vote of six of the members of the Permanent Oversight Committee, following its termination, may be taken by a vote of a majority of the members of the Joint Committee on Administrative Regulation Review, and any requirement for prior submission of a proposed rule to the Permanent Oversight Committee under Section 11-98-4.1(e)(8), shall be replaced in its entirety by the normal procedure for adoption and legislative review of an agency rule under the Alabama Administrative Procedure Act.
(c) The commission shall be comprised of the following members:
(1) Three members of the House of Representatives, to be appointed by the Speaker of the House of Representatives.
(2) Three members of the Senate, to be appointed by the President Pro Tempore of the Senate.
(3) Three members to be appointed by the Governor, who shall include a representative of the districts and the State 911 Coordinator.
(d) The membership of the commission shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.
(e) The chair and vice chair of the commission shall be elected at the first meeting by the members of the commission.
(f) Upon request of the chair, the Secretary of the Senate and the Clerk of the House of Representatives shall provide necessary clerical assistance for the work of the commission.
(g) Each legislative member of the commission shall be entitled to his or her regular legislative compensation, his or her per diem, and travel expenses for each day he or she attends a meeting of the commission. Upon requisitions signed by the chair of the commission, these payments shall be paid out of any funds appropriated to the use of the Legislature by means of warrants drawn by the Comptroller on the State Treasury. Notwithstanding the foregoing, no member shall receive additional legislative compensation or per diem when the Legislature is in session or if a member is being paid any other payments on the same dates for attendance on other state business.
(h) The Department of Examiners of Public Accounts shall gather and report to the Permanent Oversight Commission the information necessary to evaluate 911 emergency communications funding across the State of Alabama. Each communications district established pursuant to Section 11-98-2 and the Commercial Mobile Radio Service Emergency Telephone Services Board and the statewide 911 Board, unless exempted by the Department of Examiners of Public Accounts for good cause, shall provide at least the information specified following to the Department of Examiners of Public Accounts no later than 180 days after May 8, 2012.
(1) For wireline 911 and for fiscal years ending 2009, 2010, and 2011, the information provided by communications districts shall include:
a. 911 rates in effect for residence telephone service and for business telephone service in the communications district for each fiscal year.
b. 911 revenues collected by the communications district by month for each fiscal year.
c. The amount of any funding provided to the communications district by a county or municipality in which the communications district resides by month for each fiscal year.
d. The amount of revenues received by the communications district from the Commercial Mobile Radio Service Emergency Telephone Services Board by month for each fiscal year.
e. The amount of any direct grants from federal or state government and any state matches for federal, state, local, or private grants for each fiscal year.
f. Gifts or other amounts not otherwise reported in this section.
g. Amounts held in any savings or investment accounts or reserve or escrow accounts by fiscal year.
h. Identification and specification in detail how the 911 funds were spent in each fiscal year. The Department of Examiners of Public Accounts shall identify any areas of noncompliance with this chapter.
i. Monthly charges paid to each telecommunications service provider for both data base and network charges.
(2) Each communications district that fails to provide the information required by this section to the Department of Examiners of Public Accounts by the deadline specified in this subsection, unless exempted by the Department of Examiners of Public Accounts for good cause, shall not be eligible to receive distributions from the Commercial Mobile Radio Service Emergency Telephone Services Board after the deadline.
(3) For wireless 911 and for fiscal years ending 2009, 2010, and 2011, the information provided by the Commercial Mobile Radio Service Emergency Telephone Services Board shall include:
a. 911 revenues received by month for each fiscal year segregated between postpaid wireless service and prepaid wireless service.
b. 911 revenues disbursed to each communications district by month by fiscal year.
c. Amounts of any direct grants from federal or state government and any state matches for federal, state, local, or private grants for each fiscal year.
d. Gifts or other amounts not otherwise reported in this section.
e. Amounts held in any savings or investment accounts or reserve or escrow accounts by fiscal year.
f. The amount of funds retained by the board for operation of the board and identify how the funds retained were spent in each fiscal year.
g. The amount of funds that were escrowed for the purpose of reimbursing wireless carriers for cost recovery or implementation for Phase I and Phase II 911 implementation costs and the amounts paid to the wireless carriers for cost recovery in each fiscal year segregated by Phase I and Phase II.
(i) The Commercial Mobile Radio Service Emergency Telephone Services Board and the statewide 911 Board shall track monthly wireless 911 prepaid revenue following implementation of the prepaid 911 point-of-sale mechanism specified in Section 11-98-5.3 and shall file a monthly report with the Permanent Oversight Commission detailing and comparing prepaid 911 revenues received in the 2012 fiscal year to the prepaid revenues received in the 2011 fiscal year. The first monthly report shall be filed with the commission no later than 60 days following implementation of the point-of-sale system and on a monthly basis thereafter.
(j) The Department of Examiners of Public Accounts shall promulgate rules and a common financial reporting format to establish annual reporting requirements applicable to all communications districts and the Commercial Mobile Radio Service Emergency Telephone Services Board or statewide 911 Board that the committee shall need to monitor 911 surcharge rates, 911 revenues, and the use of 911 funds on an ongoing annual basis. The Department of Examiners of Public Accounts shall gather and report to the commission the information necessary to evaluate 911 emergency communications funding across the State of Alabama on an ongoing basis.
(k) The annual reports of the communications districts and the Commercial Mobile Radio Service Emergency Telephone Services Board and any reports developed by the commission shall be posted no later than 60 days following the end of the fiscal year on a website to be determined by the Department of Examiners of Public Accounts.
(l) To assist in the development of the long-term plan for 911 in the state, the statewide 911 Board and Permanent Oversight Commission may solicit input from members of the 911 districts in the state, from members of the communications industry operating in the state, and, if deemed necessary, from 911 experts outside the state.
*(Act 2012-293, p. 592, §2.)*
##### **§ 11-98-14** Sunset Provision {#sec-11-98-14 omnilex-key=us-al-statutes--title-11--11-98-14}
The 911 Board shall be subject to the Alabama Sunset Law, Chapter 20, Title 41, as an enumerated agency as provided in Section 41-20-3, and shall have a termination date of October 1, 2016, and every four years thereafter, unless continued pursuant to the Alabama Sunset Law.
*(Act 2012-293, p. 592, §2.)*
##### **§ 11-98-15** Reimbursement for Unused Funds Retained for 911 Board Administrative Expenses; Annual Costs {#sec-11-98-15 omnilex-key=us-al-statutes--title-11--11-98-15}
The 911 Board shall reimburse the Department of Examiners of Public Accounts to the extent of any unused funds retained for administrative expenses under this section or Section 11-98-5.2(b) for the amount of actual costs incurred in carrying out the requirements placed upon the Department of Examiners of Public Accounts by this chapter, as evidenced by invoice presented to the board. By January 1, 2013, the Department of Examiners of Public Accounts shall provide the 911 Board with a projection of its annual costs in meeting the requirements of this chapter, which shall be treated and retained by the 911 Board as an administrative fee in addition to the administrative allowance specified in Section 11-98-5.2(b). The invoiced amount shall be due and payable within 30 days of presentment.
*(Act 2012-293, p. 592, §2.)*
##### **§ 11-98-16** Certification Requirements for Public Safety Telecommunicators {#sec-11-98-16 omnilex-key=us-al-statutes--title-11--11-98-16}
On or after July 1, 2022, an individual performing the duties of a public safety telecommunicator, as defined in Section 11-98-1, and employed by a primary PSAP receiving 911 calls, shall be certified under rules established by the Statewide 911 Board. Individuals hired on or after July 1, 2022, shall have 180 days to be enrolled in the certification process, but shall be allowed to perform the duties of a public safety telecommunicator without certification until the expiration of the 180-day period. Any individual performing the duties of public safety telecommunicator for a primary PSAP receiving 911 calls on or before June 30, 2022, shall not be required to complete the coursework to be certified under rules established by the board.
*(Act 2022-387, §2.)*
### **Chapter 99** Tax Increment Districts
##### **§ 11-99-1** Legislative Findings and Declarations {#sec-11-99-1 omnilex-key=us-al-statutes--title-11--11-99-1}
(a) Act 2013-51 shall be known and may be cited as the Major 21st Century Manufacturing Zone Act.
(b)(1) It is hereby found and declared that there exist in municipalities and counties of the state blighted or economically distressed areas which constitute a serious and growing problem, injurious to the public health, safety, morals, and welfare of the residents of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability imposing onerous burdens which decrease the tax base and reduce tax revenues, substantially impairs or arrests sound growth, retards the provision of housing accommodations, aggravates traffic problems, and substantially hampers the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blighted areas and economically distressed areas is a matter of state policy and state concern in order that the state and its municipalities and counties shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of public revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities.
(2) It is further found and declared that certain blighted and economically distressed areas or portions thereof may require acquisition, clearance, and disposition subject to use restrictions, as provided in this chapter, since the prevailing condition of blight and economic distress may make impracticable the reclamation of the area by conservation or rehabilitation; that other areas or portions thereof may, through the means provided in this chapter, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils enumerated may be eliminated, remedied, or prevented; and that salvageable blighted and economically distressed areas can be conserved and rehabilitated through appropriate public action as herein authorized and the cooperation and voluntary action of the owners and tenants of property in such areas.
(3) It is further found and declared that there exist in municipalities and counties of the state underutilized real and personal property in enhanced use lease areas which, when leased by a secretary of a military department for cash or in-kind consideration, enhances the public benefit and welfare by, among other things, promoting local economic development and the stimulation of the local economy, increasing job opportunities, creating additional tax revenues, and enhancing the public’s overall quality of life.
(4) It is further found and declared that there exist in municipalities and counties of the state underutilized large tracts of real property suitable for the location of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities which, when serving as the site therefor, enhances the public benefit and welfare by, among other things, facilitating the creation of skilled manufacturing jobs, promoting local economic development and the stimulation of the local economy, creating additional tax revenues, and enhancing the public’s overall quality of life.
(5) It is further found and declared that the powers conferred by this chapter are for public and, in the case of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities, private uses and purposes imbued with a public interest and for which public money may be expended, either directly or indirectly, in the case of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities, and police power exercised, and the necessity in the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination.
(c) The Legislature makes the following findings:
(1) It is in the best interest of the state to ensure the location and expansion of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities in this state.
(2) The presence and expansion of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities in this state is of substantial benefit to and enhances the public welfare of the state by, among other things, promoting local economic development and the stimulus of local economies, increasing skilled job opportunities, creating additional tax revenues, and enhancing the public’s overall quality of life.
(3) The growth and enhanced prosperity of municipalities and counties of the state, as well as of the state at large, as a result of the presence and expansion of automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities in this state often requires the infusion of capital, improved, and expanded public infrastructure dedicated to such facilities, and the provision, for the benefit thereof, of capital improvements to existing facilities as well as the provision of buildings and structures suitable for use as part of or in connection with automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities.
(4) The provision of such capital, public infrastructure improvements, and capital improvements constitutes an important public purpose vital to the welfare and prosperity of the citizens of this state.
*(Acts 1987, No. 87-824, p. 1660, §1; Act 2010-184, p. 262, §3; Act 2013-51, p. 80, §§1-3; Act 2013-424, p. 1694, §1.)*
##### **§ 11-99-2** Definitions {#sec-11-99-2 omnilex-key=us-al-statutes--title-11--11-99-2}
As used in this chapter, the following terms have the following meanings:
(1) BLIGHTED OR ECONOMICALLY DISTRESSED AREA. Any of the following:
a. Any area in which the structures, buildings, or improvements, by reason of dilapidation, deterioration, age, or obsolescence; inadequate provision for ventilation, light, air, sanitation, or open spaces; high density of population and overcrowding; or the existence of conditions that endanger life or property by fire and other causes; or any combination of such factors, are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime and are detrimental to the public health, safety, morals, or welfare.
b. Any area that by reason of the presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership; tax or special assessment delinquencies exceeding the fair value of the land; defective or unusual conditions of title; or the existence of conditions that endanger life or property by fire and other causes; or any combination of the foregoing, substantially impairs or arrests the sound economic growth of an area, hinders the provision of housing accommodations, or constitutes an economic or social liability and is a detriment to the public health, safety, morals, or welfare in its present condition and use.
c. Any area that is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound economic growth of an area.
d. Any area that the local governing body: (i) Determines is in need of redevelopment, rehabilitation, or revitalization to provide for the economic growth and development of the area; or (ii) certifies is in need of redevelopment or rehabilitation as a result of flood, fire, hurricane, tornado, earthquake, storm, or other catastrophe which the Governor of the state has certified the need for disaster assistance under federal law.
e. Any area containing excessive vacant land on which structures were previously located; on which are located abandoned or vacant buildings or old buildings; where excessive vacancies exist in existing buildings; which contains substandard structures; or with respect to which there exist delinquencies in payment of real property taxes.
(2) DEFERRED TAX RECIPIENT. Each taxing authority that receives ad valorem taxes with respect to property located in a proposed tax increment district.
(3) ENHANCED USE LEASE AREA. Any area of a military installation which contains underutilized real or personal property, or both, that is leased by a secretary of a military department to a lessee pursuant to the authority provided in 10 U.S.C. § 2667.
(4) LOCAL FINANCE OFFICER. The legally authorized officer or agent responsible for receipt and disbursement of the revenues of a taxing authority.
(5) LOCAL GOVERNING BODY. The governing body of a county or municipality which proposes to create or has created a tax increment district.
(6) MAJOR 21ST CENTURY MANUFACTURING ZONE. Any area aggregating not less than 250 contiguous acres of real property determined by a local governing body to meet all of the following criteria:
a. Is located, in whole or part, within its boundaries or corporate limits.
b. Is suitable for the site of an automotive, automotive-industry related, aviation, aviation-industry related, ship building-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, or biomedical industry manufacturing facility or facilities.
c. Is an area within which not less than one hundred million dollars ($100,000,000) of capital expenditure in connection with the establishment, expansion, construction, equipping, development, rehabilitation, or redevelopment of the facility or facilities is anticipated to be made based upon representations and information provided by the anticipated user or users of the facility or facilities and other information as the local governing body shall have available to it and deems appropriate.
(7) MUNICIPALITY. Any incorporated municipality in this state.
(8) PROJECT. Undertakings and activities of a public entity in a tax increment district for any one or more of the following:
a. As determined by the local governing body, the elimination and prevention of the development or spread of blight in, or the redevelopment or revitalization of, a blighted or economically distressed area, including, but not limited to, property acquisition, property clearance, development, preservation, redevelopment, rehabilitation, renovation, or conservation, or a combination or part thereof, in accordance with a project plan.
b. The utilization of underutilized real or personal property, or both, in an enhanced use lease area, including, but not limited to, property acquisition, property clearance, development, redevelopment, rehabilitation, or conservation, or a combination or part thereof, in accordance with a project plan.
c. The utilization of underutilized real property in an area determined by a local governing body to be a Major 21st Century Manufacturing Zone, including, but not limited to, property acquisition; property clearance; development, including, without limitation, public infrastructure improvements and any other improvements for the construction and equipping of automotive, automotive-industry related, aviation, aviation-industry related, ship building-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, or biomedical industry manufacturing facilities; or the redevelopment, rehabilitation, or conservation, or a combination or part thereof, in accordance with a project plan.
(9) PROJECT COSTS. Any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a public entity, which in the case of expenditures for or within a Major 21st Century Manufacturing Zone may be incurred directly by the public entity or by a private entity with funds granted by, or otherwise made available from, a public entity, which are listed in a project plan as costs of public works or improvements or, in the case of improvements within a Major 21st Century Manufacturing Zone, public works or improvements or private improvements, within a tax increment district, plus any costs incidental thereto, diminished by any special assessments, received or reasonably expected to be received by the public entity in connection with the implementation of the project plan. Project costs include, but are not limited to, all of the following:
a. Capital costs, including the costs of the acquisition, installation, or construction of public works or improvements, new buildings, facilities or improvements, structures, and fixtures; the preservation and renovation of properties of historic significance and facades of properties; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, facilities, and fixtures; the improvement, maintenance, repair, renovation, and replacement of property pursuant to a project plan; the acquisition of equipment; the acquisition, clearing, and grading of land; environmental remediation of real property; and the acquisition of interests in land.
b. Financing costs, including all interest paid to holders of tax increment obligations during the period of implementation of the project plan, the costs of any form of credit enhancement, printing and trustee costs, and any premium paid in excess of the principal amount thereof because of the redemption of the obligations prior to maturity.
c. Real property assembly costs, meaning any deficit resulting from the sale or lease as lessor by the public entity of real or personal property within a tax increment district for consideration which is less than its cost to the public entity.
d. Professional service costs, including those costs incurred for architectural, planning, engineering, fiscal, underwriting, legal advice and services, and consulting and management services.
e. Imputed administrative costs, including reasonable charges for the time spent by officers and employees of the public entity in connection with the implementation of a project plan.
f. Relocation costs, including those relocation payments made following condemnation under Chapter 1A of Title 18.
g. Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax increment districts and the implementation of project plans.
h. The amount of any contributions made in connection with the implementation of the project plan which are within limits prescribed by law.
i. Payments made, at the discretion of the local governing body, which are to be necessary or convenient to the creation of tax increment districts or the implementation and management of project plans.
j. For purposes of any tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area, all costs described in this subdivision which are expended by a public entity or a developer within three years immediately preceding the date of the creation of the tax increment district.
k. For purposes of any tax increment district that includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone, the costs incurred by a public entity to acquire land or interests in land forming all or part of the Major 21st Century Manufacturing Zone prior to the date of creation of the tax increment district, provided, prior to incurring such costs the local governing body of the public entity has recited its intent to reimburse the costs from ad valorem taxes collected within a future tax increment district.
(10) PROJECT PLAN. The properly approved plan by the public entity creating a tax increment district for the development, redevelopment, or revitalization of a tax increment district, including all properly approved amendments thereto.
(11) PUBLIC ENTITY. Any municipality or county in the state.
(12) TAX INCREMENT. That amount obtained by multiplying the total revenue derived from ad valorem taxes levied by all local taxing authorities on all taxable property within a tax increment district in any tax year by a fraction having a numerator equal to that tax year’s market value of all taxable property in the district minus the tax increment base and a denominator equal to that tax year’s equalized value of all taxable property in the district. In any tax year, a tax increment is positive if the tax increment base is less than the aggregate value of taxable property as equalized by the Department of Revenue; it is negative if the base exceeds that value.
(13) TAX INCREMENT BASE. The aggregate value, as equalized by the Department of Revenue, of all taxable property located within a tax increment district on the date the district is created, determined as provided in Section 11-99-5.
(14) TAX INCREMENT DISTRICT. A contiguous geographic area within the boundaries of a public entity defined and created by resolution of the local governing body.
(15) TAX INCREMENT FUND. A fund into which all tax increments not retained by a taxing authority as provided by Section 11-99-10(a) are paid, and from which money is disbursed to satisfy claims of holders of tax increment obligations issued for the tax increment district.
(16) TAX INCREMENT OBLIGATIONS. Bonds, warrants, notes, or other evidences of indebtedness issued by a public entity to fund all or any project costs.
(17) TAXABLE PROPERTY. All real and personal property located in a tax increment district which is subject to ad valorem taxation on the date of adoption of the resolution creating the tax increment district.
(18) TAXING AUTHORITY.
a. For tax increment districts in which not less than 50 percent, by area, of the real property within the tax increment district is a blighted or economically distressed area, the term means any municipality, county, or other taxing authority that has the power to levy taxes on property within the tax increment districts.
b. For tax increment districts in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area, the term means the state or any municipality, county, or other taxing authority that has the power to levy taxes on property within the tax increment district.
c. For tax increment districts which include an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone, the term means the state or any municipality, county, or other taxing authority that has the power to levy taxes on property within the tax increment district.
*(Acts 1987, No. 87-824, p. 1660, §2; Act 2010-184, p. 262, §3; Act 2013-51, p. 80, §3; Act 2013-424, p. 1694, §1; Act 2022-422, §1; Act 2026-547, §1.)*
##### **§ 11-99-3** Powers of Municipalities and Counties {#sec-11-99-3 omnilex-key=us-al-statutes--title-11--11-99-3}
In addition to any other powers conferred by law, each municipality and county in the state shall have and may exercise any powers necessary and convenient to carry out the purposes of this chapter, including the power to:
(1) Create tax increment districts and to define the boundaries thereof;
(2) Cause project plans to be prepared, to approve plans, and to implement the provisions and effectuate the purposes of project plans;
(3) Issue tax increment obligations;
(4) Deposit moneys into the tax increment fund for any tax increment district; and
(5) Enter into any covenants, contracts, or agreements, including conditions, restrictions, or covenants which either run with the land or otherwise regulate the use of the land and any covenants, contracts, and agreements with or for the benefit of holders of tax increment obligations, determined by the local governing body to be necessary or convenient to implement the provisions and effectuate the purposes of project plans.
*(Acts 1987, No. 87-824, p. 1660, §3.)*
##### **§ 11-99-4** Creation of Tax Increment Districts and Approval of Project Plans {#sec-11-99-4 omnilex-key=us-al-statutes--title-11--11-99-4}
(a) In order to exercise its powers under this chapter, a public entity shall take the following steps:
(1) The local governing body shall hold a public hearing at which all interested parties are afforded a reasonable opportunity to express their views on: (i) the concept of tax increment financing; (ii) the proposed creation of a tax increment district and its proposed boundaries; and (iii) its benefits to the public entity. Notice of the hearing shall be published in a newspaper of general circulation in either the county or in the city, as the case may be, in which the proposed tax increment district is to be located with notice to be published at least twice in the 15-day period immediately preceding the date of the hearing. Prior to publication, a copy of the notice shall be sent by first class mail to the chief executive officer of each deferred tax recipient.
(2)a. In addition to the notice required by subdivision (1), and either before or after the public hearing, the local governing body shall make a written submission to the governing body of each deferred tax recipient. The submission shall include a description of the proposed boundaries of the tax increment district, the tentative plans for the development, redevelopment, or revitalization of the tax increment district, and an estimate of the general impact of the proposed project plan on property values and tax revenues.
b. Not later than the 15th day after the date on which the notice required by subdivision (1) is mailed, each deferred tax recipient shall designate a representative empowered to meet with the local governing body to discuss the project plan and the tax increment financing and shall notify the local governing body of its designation. Failure of any deferred tax recipient to designate a representative within the 15-day period, or to notify the local governing body of its designation, shall not prevent the local governing body from proceeding hereunder. If a deferred tax recipient who has failed to so designate a representative thereafter designates a representative and notifies the local governing body of the designation, the representative shall be entitled to notice of any meetings held thereafter pursuant to this section, and shall be entitled to attend the meetings, but shall have no right to have matters discussed again which have already been discussed.
c. The local governing body shall call a meeting, or meetings, of the representatives of the deferred tax recipients to be held at any time after 20 days from the mailing notice referred to in subdivision (1). Each representative shall be notified of each meeting at least three days before the meeting is to be held, but notice may be waived. At the meetings, the local governing body and the representatives of the deferred tax recipients may discuss the boundaries of the tax increment district, development within the tax increment district, the exclusion of particular parcels of property from the district, and tax collection for the district. On the motion of the local governing body, any other matter relevant to the proposed tax increment district may be discussed.
(3) The local governing body shall adopt a resolution, which need not be published, which does all of the following:
a. Describes the boundaries of the tax increment district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included. The description shall include only those whole units of property, other than publicly owned property such as streets, easements, and rights-of-way, assessed for general property tax purposes. If the public entity is a county, the description shall include only those areas that lie outside the corporate limits of any municipality, unless the governing body of a municipality has consented to the inclusion of land within its corporate limits within a tax increment district formed by a county.
b. Creates the tax increment district as of a given date after the date of adoption of the resolution. The date of creation of the tax increment district may be a date subsequent to the date of expiration of the period of duration of an existing tax increment district of the public entity.
c. Fixes the period for the duration of the tax increment district.
1. The duration may be for a period not to exceed 30 years from the date of creation of the tax increment district in the case of a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is a blighted or economically distressed area.
2. The duration may be for a period not to exceed 35 years from the date of creation of the tax increment district in the case of a district in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area or which includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone, unless an amendment is made to the project plan under subdivision (7).
d. Assigns a name to the tax increment district for identification purposes, such as “tax increment district number one.”
e. Contains findings, which shall not be subject to judicial review except after a showing of fraud, corruption, or undue influence, that:
1.(A) Not less than 50 percent, by area, of the real property within the tax increment district is: (i) In need of rehabilitation, redevelopment, revitalization, or conservation work, or (ii) an enhanced use lease area; or
(B) the tax increment district includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone; and
2. The aggregate value of equalized taxable property in the tax increment district plus all existing tax increment districts created by the public entity does not exceed 10 percent of the total value of equalized taxable property within the public entity or 50 percent if the public entity is a Class 2 or Class 3 municipality. Provided, however, that equalized taxable property located within the boundaries of a military reservation, jurisdiction over which has been ceded to the United States pursuant to Section 42-3-1, shall be excluded from aggregated value.
(4)a. The local governmental body shall prepare and adopt a project plan for each tax increment district. The plan shall include all of the following:
1. A statement listing the proposed projects, including, without limitation and if applicable, the kind, number, and location of all proposed public works or improvements or, in the case of a Major 21st Century Manufacturing Zone, public works or improvements or private improvements, within the district.
2. A detailed list of estimated project costs.
3. A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred.
4. A map showing existing uses and conditions of real property in the district.
5. A map or description showing proposed improvements and uses therein.
6. Proposed changes of zoning, master map plan, building code, and other ordinances or resolutions affecting the district.
7. A list of estimated nonproject costs.
8. A proposed plan for the relocation of any families, individuals, and businesses to be temporarily or permanently displaced from housing or commercial facilities in the district by implementation of the plan.
b. For purposes of this chapter, any work or improvement for a military installation and located within an enhanced use lease area shall be deemed to be for public uses and purposes.
(5) The local governing body shall certify all of the following before approving the project plan:
a. That a feasible method exists for the relocation and compensation of any individuals, families, and businesses that will be displaced by the project in decent, safe, and sanitary accommodations within their means and without undue hardship to such individuals, families, and businesses.
b. That the project plan conforms to the applicable master plan of the local entity, if there is one.
c. That the project plan will afford maximum opportunity, consistent with the sound needs of the public entity as a whole, for the rehabilitation, redevelopment, or revitalization of the tax increment district by private enterprise.
(6) A copy of the project plan shall be mailed to the governing body of each deferred tax recipient, before approval of the project plan.
(7) The local governing body may at any time adopt an amendment to a project plan by complying with the procedures for the original adoption of a project plan.
(8) The public entity that created the tax increment district, and each deferred tax recipient with respect to the tax increment district, notwithstanding any provision in this chapter to the contrary, by written mutual agreement duly authorized, executed, and delivered thereby, may establish an advisory board for the tax increment district composed of the mayor or the chair of the county commission of the public entity, as appropriate, a member of the governing body of the public entity that represents the largest area in the tax increment district, and other members as the respective governing body, or its designee, of each deferred tax recipient may appoint, provided a majority of the members of an advisory board must be members of the governing body of the public entity.
(b) Judicial review of a decision of a public entity related to a tax increment district shall be as provided by law.
*(Acts 1987, No. 87-824, p. 1660, §4; Acts 1988, 1st Ex. Sess., No. 88-918, p. 512, §1; Act 2005-112, p. 178, §1; Act 2007-204, p. 246, §1; Act 2008-482, p. 1055, §1; Act 2010-184, p. 262, §3; Act 2013-51, p. 80, §3; Act 2022-422, §1; Act 2026-104, §1; Act 2026-547, §1.)*
##### **§ 11-99-5** Determination of Tax Increment Base; Notice {#sec-11-99-5 omnilex-key=us-al-statutes--title-11--11-99-5}
(a) The tax increment base shall be determined as provided in this section.
(b) Upon application in writing by the local finance officer, the tax assessor, or the officer of the county performing the duties of a tax assessor, for each county in which any part of the district is located shall determine, according to his or her best judgment from all sources available to him or her, the full aggregate value of the taxable property in the district located in that county as of the date of creation of the tax increment district. The aggregate valuation from all such tax assessors or other such public officials, upon certification to the local finance officer, shall constitute the tax increment base of the district, provided, if a public entity creates a district that is to succeed and continue the programs and project plans for redevelopment and revitalization of property in an existing tax increment district upon its expiration, the public entity and each deferred tax recipient with respect to the successor tax increment district, notwithstanding any provision in this chapter to the contrary, by written mutual agreement duly authorized, executed, and delivered thereby, may agree that the aggregate value of all taxable property included in both the expiring district and the successor district shall be the aggregate value of the taxable property as originally determined for the tax increment base of the expiring district as of the date of creation of the expiring district and without redetermination of the value of the taxable property as of the date of creation of the successor district or some other date.
(c) If the public entity that created a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is a blighted or economically distressed area adopts an amendment to the original project plan for the tax increment district which includes additional project costs for which tax increments may be received by the public entity, the tax increment base for the district shall not be redetermined.
(d) If the public entity that created a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area or which includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone adopts an amendment to the original project plan for the tax increment district which includes additional project costs for which tax increments may be received by the public entity or an expansion of the tax increment district, the tax increment base for the district shall not be redetermined.
(e) There shall be a rebuttable presumption that any property within a tax increment district, acquired or leased as lessee by the public entity or any agency or instrumentality thereof within one year immediately preceding the date of the creation of the district, was so acquired or leased in contemplation of the creation of the district. The presumption may be rebutted by the public entity with proof that the property was so leased or acquired primarily for a purpose other than to reduce the tax increment base. If the presumption is not rebutted, in determining the tax increment base of the district, but for no other purpose, the taxable status of the property shall be determined as though the lease or acquisition had not occurred.
(f) The local tax assessor or individual performing his or her duties shall identify upon the tax records prepared by him or her under Chapter 7 of Title 40 those parcels of property which are within each existing tax increment district, specifying the name of each district. A similar notation shall also appear on the tax records made by the local finance officer.
(g) The Department of Revenue shall annually give notice to the designated finance officer of all taxing authorities levying taxes on property within each district as to both the assessed and equalized value of the property and the assessed and equalized value of the tax increment base. The notice shall state that the taxes collected in excess of the base will be paid to the public entity.
*(Acts 1987, No. 87-824, p. 1660, §5; Act 2010-184, p. 262, §3; Act 2013-51, p. 80, §3; Act 2022-422, §1; Act 2026-547, §1.)*
##### **§ 11-99-6** Allocation of Positive Tax Increments; Payment to Local Finance Officer; Tax Increment Fund {#sec-11-99-6 omnilex-key=us-al-statutes--title-11--11-99-6}
(a) Positive tax increments of a tax increment district shall be allocated and paid over to the public entity that created the district for each year commencing on the October 1 following the date when the district is created until the earlier of:
(1) That time, after: (i) The period of duration of the tax increment district, as established pursuant to this chapter, has expired, and (ii) the completion of all projects and public improvements specified in, or purposes of, the project plan or amendments thereto, when the public entity has received aggregate tax increments from the district in an amount equal to the aggregate of all expenditures previously made or monetary obligations previously incurred for project costs for the district; or
(2) Thirty-five years after the last expenditure identified in the project plan is made. No expenditure may be provided for in the project plan to be made more than five years after the district is created, except as may be provided in an amendment to the project plan, and except in Class 3 municipalities where the expenditures may be made not more than 10 years thereafter if so provided and in tax increment districts in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area where the expenditures may be made not more than 15 years thereafter if so provided, unless an amendment is adopted by the local governing body under Section 11-99-4(7).
(b) Notwithstanding any other provision of law, every officer charged by law to collect and pay over or retain local general property taxes in the case of a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is a blighted or economically distressed area, or state and local general property taxes in the case of a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area or which includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone, shall first, on the next settlement date provided by law, pay over to the local finance officer out of all the taxes that have been collected, that portion that represents a tax increment allocable to a tax increment district, identifying the amount for each district.
(c) All tax increments received for a tax increment district, upon receipt by the local finance officer, shall be deposited into the tax increment fund for that district. The local finance officer may deposit additional monies into the fund pursuant to an appropriation by the local governing body. Monies shall be paid out of the fund only for direct payment of, or to reimburse the public entity for payments theretofore made by it for principal of or interest on tax increment obligations for that district if the obligations are general obligations of the public entity, or to satisfy claims of holders of tax increment obligations issued for that district, or for direct payment of, or to reimburse the public entity for payments theretofore made by the public entity that are used to pay project costs. Subject to any agreement with security holders, monies in the fund may be temporarily invested in the same manner as other surplus funds of the public entity. After the principal of and interest on all tax increment obligations of the district have been paid or provided for, subject to any agreement with security holders, if there remains in the fund any monies, they shall be paid over to the chief finance officer of the state, each county, each municipality, each school district, and to the general fund of the public entity in amounts as are due to each respectively, having due regard for what portion of these monies, if any, represents tax increments not allocated to the public entity and what portion thereof, if any, represents voluntary deposits of the public entity into the fund.
*(Acts 1987, No. 87-824, p. 1660, §6; Act 2007-205, p. 250, §1; Act 2010-184, p. 262, §3; Act 2013-51, p. 80, §3; Act 2022-422, §1; Act 2026-547, §1.)*
##### **§ 11-99-7** Termination of Tax Increment Districts {#sec-11-99-7 omnilex-key=us-al-statutes--title-11--11-99-7}
The existence of a tax increment district shall terminate when:
(1) Positive tax increments are no longer allocable to a district under Section 11-99-6(a) hereof; or
(2) The local governing body, by resolution, dissolves the district.
*(Acts 1987, No. 87-824, p. 1660, §7.)*
##### **§ 11-99-8** Financing of Project Costs {#sec-11-99-8 omnilex-key=us-al-statutes--title-11--11-99-8}
(a) Payment of project costs may be made by any of the following methods or any combination thereof:
(1) Payment from the tax increment fund of the tax increment district if the purpose of the payment is one provided for in Section 11-99-6.
(2) Payment out of the general funds of the public entity creating a tax increment district, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(3) Payment out of the proceeds of the sale of warrants, bonds, or notes (whether public improvement bonds, warrants, or notes; mortgage bonds, warrants, or notes; or certificates, revenue bonds, warrants, or notes; or otherwise) issued by the public entity creating a tax increment district, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(4) Payment out of the proceeds of the sale of tax increment obligations issued by the public entity creating a tax increment district under this chapter, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(5) Payment as otherwise provided by law.
(b) For the purposes of paying project costs or of refunding obligations issued pursuant to the authority of this chapter or other applicable law, the local governing body may issue tax increment obligations payable out of positive tax increments. The tax increment obligations shall not be included in the computation of the constitutional debt limitation of the public entity unless they are also secured by a pledge of the full faith and credit of the public entity.
(c) Tax increment obligations may be authorized by resolution of the local governing body without the necessity of a referendum or any approval by the electorate. The resolution shall state the name of the tax increment district, the amount of obligations authorized, and the interest rate or rates to be borne thereby or the method of computing the same. The resolution may prescribe the terms, form, and content of the obligations and such other matters as the local governing body deems useful.
(d) Tax increment obligations may not be issued in an amount exceeding the aggregate project costs of a project or projects specified in a project plan, as such plan may be amended. The tax increment obligations shall mature not more than 30 years from the date thereof. The tax increment obligations may: (i) Contain provisions authorizing the redemption thereof, in whole or in part, at stipulated prices, at the option of the public entity creating the district, on any dates named therein and provide the method of selecting the obligations to be redeemed, (ii) be payable at any time or times and at any place, (iii) be payable to bearer or registered as to principal or principal and interest, (iv) be in any denominations, and (v) be sold at public or private sale.
(e) Tax increment obligations shall be payable only out of a stipulated tax increment fund created pursuant to Section 11-99-6, except as provided in subsection (f). The public entity creating the district shall irrevocably pledge all or a part of the tax increment fund to the payment of the tax increment obligations. The amounts in the tax increment fund may thereafter be used only for the payment of the principal of and interest on the tax increment obligations payable therefrom until the principal and interest have been fully paid, provided the amounts, if any, in the tax increment fund in excess of the amount required to pay the principal of and interest on the tax increment obligations becoming due and payable in any fiscal year of the local governing body may be used for the payment of project costs.
(f) To increase the security and marketability of tax increment obligations, the public entity may do any of the following:
(1) To the extent permitted by the Constitution of Alabama of 1901, as amended, create a non-foreclosable lien for the benefit of the security holders upon any public improvements or public works financed thereby.
(2) Pledge the full faith and credit of the public entity to the payment thereof.
(3) Make covenants and do any and all acts as may be necessary, convenient, or desirable in the judgment of the local governing body in order additionally to secure the obligations or make the obligations more marketable.
(g) For the purpose of paying project costs, the public entity creating the tax increment district may also allow payments to be made in full at the time the project costs accrue, thus allowing a project to be all or partially funded on a pay-as-you-go basis.
*(Acts 1987, No. 87-824, p. 1660, §8; Act 2013-51, p. 80, §3; Act 2022-422, §1.)*
##### **§ 11-99-9** Overlapping Tax Increment Districts {#sec-11-99-9 omnilex-key=us-al-statutes--title-11--11-99-9}
(a) Subject to any agreement with security holders, a tax increment district may be created, the boundaries of which overlap one or more existing tax increment districts. Districts created on the same date, however, may not have overlapping boundaries.
(b) If the boundaries of two or more tax increment districts overlap, in determining how positive tax increments generated by that area which is within two or more districts are allocated among the districts, but for no other purpose, the aggregate value of the taxable property in the area as equalized by the Department of Revenue in any year as to each earlier created district is deemed to be that portion of the tax increment base of the district next created which is attributable to such overlapped area.
*(Acts 1987, No. 87-824, p. 1660, §9.)*
##### **§ 11-99-10** Equalized Valuation for Apportionment of Property Taxes {#sec-11-99-10 omnilex-key=us-al-statutes--title-11--11-99-10}
(a) If it can be shown that losing tax increments would be harmful to any given taxing authority or cause a taxing authority not to honor a prior binding commitment, by contract executed with the public entity creating a tax increment district prior to the designation of the tax increment district, and if an agreement has been made for such allowances through a process of negotiation at the time of the creation of the tax increment district, a taxing authority may make payments into the tax increment fund, less the sum of:
(1) Any property taxes produced from the tax increments which are required to be paid by the taxing authority to another political subdivision; and
(2) A portion, not to exceed 20 percent or a one-time payment mutually agreed upon at the time of the creation of the tax increment district, of the tax increment produced in the district by the taxes levied on behalf of that taxing authority.
(b) All tax increments that have accrued with respect to school districts under this chapter shall be determined and the amounts shall be paid on February 1 of each year out of the taxes of all school districts that have territory in a tax increment district.
(c) The use of the increased valuations in the tax increment district before the completion of the project in calculating any general state school aid formula is prohibited.
(d) A taxing authority may, but shall not be required to, pay a tax increment into the tax increment fund for a district beyond five years from the date the district was created unless one or more of the following conditions exist or have been met:
(1) Tax increment obligations have been issued for the district.
(2) The public entity that created the tax increment district has acquired an interest in any property within the district pursuant to the project plan.
(3) Construction of improvements pursuant to the project plan has commenced in the district.
*(Acts 1987, No. 87-824, p. 1660, §10; Act 2010-184, p. 262, §3; Act 2022-422, §1.)*
##### **§ 11-99-11** Construction {#sec-11-99-11 omnilex-key=us-al-statutes--title-11--11-99-11}
(a) Any reference to the Major 21st Century Manufacturing Zone Act contained in this chapter shall not be construed to expand the scope, authority, or powers of a public entity beyond what is expressly permitted in this chapter when utilizing a tax increment district.
(b) Nothing in this chapter shall be construed to do any of the following:
(1) Authorize any municipality or county to lend its credit or to grant public money or things of value in aid of any individual, association, or corporation in violation of Section 94 of the Constitution of Alabama of 2022, as amended, except to the extent otherwise permitted by other provisions of or amendments to the Constitution.
(2) Expand the scope, authority, or powers of a public entity to acquire real property beyond what is otherwise provided by state law or to narrow or restrict the private property rights of owners of real property within or near a tax increment district.
(3) To expand the scope, authority, or powers of a public entity to categorize real property as blighted for purposes of creating or expanding a tax increment district.
*(Act 2013-51, p. 80, §5; Act 2022-422, §1.)*
### **Chapter 99A** Alabama Improvement Districts
##### **§ 11-99A-1** Name {#sec-11-99a-1 omnilex-key=us-al-statutes--title-11--11-99A-1}
This chapter shall be known and may be referred to as the “Alabama Improvement District Act.”
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-2** Definitions {#sec-11-99a-2 omnilex-key=us-al-statutes--title-11--11-99A-2}
In this chapter the following words shall have the following meanings:
(1) APPOINTING GOVERNMENT. The municipality or county that approves the creation of a district and appoints members to the board.
(2) BOARD. The board of directors of a district.
(3) CONTIGUOUS. Two tracts of land if touching for a continuous distance of not less than 200 feet. The term includes tracts of land divided by bodies of water, streets, railroad, or utility rights-of-way, or by land owned by any public person. In determining whether land is contiguous with a municipality, (i) land separated by bodies of water, streets, or railroad, or utility rights-of-way is contiguous even though the bodies of water, streets, or rights-of-way are within the city limits of another municipality and (ii) land separated by land owned by a public person is not contiguous if the land owned by the public person is within the city limits of another municipality.
(4) COUNCIL. The governing body of a county or municipality.
(5) DISTRICT. A body corporate formed in accordance with this chapter, having the powers granted under this chapter.
(6) IMPROVEMENTS. Any improvement to land within a district, or outside a district providing benefit to land within the district, including, without limitation, any of the following:
a. Any system for providing water to the occupants of land within the district, and extensions of any existing water system for providing water, including, without limitation, wells, water treatment facilities, water transportation and distribution lines, water mains, water tanks, pumps, and any other water storage, treatment, purification, and distribution facilities or systems.
b. Sanitary sewer systems and extensions to existing sewer systems, including, without limitation, sewer treatment facilities and sanitary sewer lines pump stations.
c. Storm sewer systems, including extensions to existing storm sewer systems, including drains, aboveground drainage systems, underground drainage systems, sewer lines and mains, and culverts.
d. Utilities providing benefit to property within the district, including, without limitation, customer-owned electrical substations, gas lines, garbage and solid waste disposal plants, and any other utilities and facilities for providing such utilities.
e. Streets, bridges, curbs, gutters, drainage, both above and below ground, grading, on or off street parking, sidewalks, street lighting, lighting for any public place, traffic control systems, traffic lights, signage, guardrails, any and all other improvements for providing transportation within and into or out of or otherwise benefiting the land within the district.
f. Public parks, public lakes, dams, public recreational facilities, including, without limitation, facilities for athletics, golf, and boating, and driving ranges, ballfields, tennis courts, swimming pools, concession stands, and any associated or useful facilities in connection therewith.
g. Flood control dams, dikes, levies, rip rap, embankments, berms, and other improvements to control flooding or erosion.
h. Fire protection facilities, including fire hydrants, fire stations, and fire monitoring equipment.
i. Railroad lines and spurs.
j. Docks, harbors, wharves, and any related facilities for transferring goods to or from boats, barges, and other forms of water transport.
k. Facilities for providing police protection, police or sheriff stations, police or sheriff substations, and security monitoring equipment.
l. Schools, school grounds, playgrounds, athletic fields, and cafeterias.
m. Landscaping.
n. Fountains, distinctive lighting, and signs.
o. Acquiring, constructing, improving, widening, narrowing, closing, or rerouting of sidewalks, streets, or their rights-of-way.
p. Acquisition, construction, installation, or improvement of pedestrian malls.
q. Acquisition and installation of pieces of art.
r. Acquisition, construction, or improvement of public libraries.
s. Acquisition, construction, or improvement or rerouting of mass transportation facilities.
t. Airports, air traffic control, and other air transportation facilities.
u. Any improvements benefiting the general public or residents or anticipated residents of the district, including provision of utilities, improving their health and sanitation, hospitals and other medical facilities, public safety, security, facilitating business recruitment, industrial recruitment, cultural enhancement, or otherwise improving the quality of life, whether or not otherwise described in this definition or this chapter and whether or not sui generis with the remaining provisions of this definition.
v. Payment of expenses incurred in the establishment, administration, and operation of the district, including reasonable reserves and replacement funds and the cost of issuance of bonds, whether or not incurred before the establishment of the district, including reimbursement of costs paid by private persons to the extent approved by the board.
w. The maintenance, repair, or replacement, extension, extension reconstruction, improvements, capital or otherwise, modification, razing, or other modification of any improvement.
x. Any or all of the above within the territorial boundaries of the district or, to the extent providing benefit to land within the district, outside the district, whether or not within the corporate limits of the municipality or the boundaries of the county creating the district.
Nothing in this chapter shall authorize the use of bonds, assessments, or tax exemptions for the acquisition, equipping, or construction of property to be owned by any person other than a utility company, the district, or another public person. By way of example and not limitation, “improvements” shall not include gambling or gaming establishments.
(7) MUNICIPALITY. An incorporated city or town in the state.
(8) OWNER. The person or persons in whose name property within a district is assessed for ad valorem property tax purposes. Notwithstanding the preceding sentence, in the case of a trust, the owner of the property is the trustee; in the case of an estate, the owner of the property is the executor or administrator; in the case of a minor, the owner of the property is the guardian, or other personal representative. “Owner” only includes the holders of present interests, and not the holders of future interests in property. In the case of land with respect to which a person owns an option to purchase or a contract to purchase, the holder of the option or purchase contract shall be considered the owner, rather than the person holding legal title to the real estate, provided that the person owning an option or real estate contract certifies under oath that the person will purchase real estate in accordance with the option or purchase contract within 30 days after formation of the district and demonstrates to the reasonable satisfaction of the municipality or county that the person is capable of making a purchase.
(9) PUBLIC NOTICE. Notice published in a newspaper of general circulation within the appointing government. If there is no newspaper, at the option of the board or council giving public notice, as appropriate, public notice in a newspaper of general circulation in the appointing government or by posting in three prominent locations within the municipality or county, at least one of which shall be in the city or town hall of the municipality or county courthouse of the county, as applicable. Public notice shall be published in two consecutive weeks commencing at least eight days before the meeting for which public notice is being given.
(10) PUBLIC PERSON. The United States of America, the state, any county, any municipality, and any public corporation a majority of the members of which are appointed by any public person, and any agency or political subdivision of any public person.
(11) STATE. The State of Alabama.
(12) STREET. Any road, highway, alleyway, street, or other public right-of-way.
(13) BONDS. Bonds, warrants, negotiable instruments, and any other evidences of indebtedness, whether or not negotiable.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-3** Conduct of Hearings {#sec-11-99a-3 omnilex-key=us-al-statutes--title-11--11-99A-3}
A hearing described in this chapter may be held only after giving public notice. However, public notice of regularly scheduled meetings of a council is not required. A hearing may be adjourned from time to time until the board or council makes findings by resolution as to the expedience of the matter being considered. Where this chapter requires written personal notice of a hearing, notice may be given by deposit in the United States mail, first class postage prepaid, no later than the eighth day before the date of the hearing.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-4** Establishment of Districts {#sec-11-99a-4 omnilex-key=us-al-statutes--title-11--11-99A-4}
(a) One or more owners of land wishing to form a district in a municipality or a county may petition the municipality or county to form a district as follows:
(1) The owners shall prepare a written petition executed by the owners of all land proposed to be included within the district.
(2) The petition shall include a description of the tract or tracts of land proposed to be included within the district, which may include less than all of any individual tract of land. The description shall be sufficient if it refers to tax assessment tracts in accordance with the tax assessor’s numbering or other reference system, by metes and bounds, by subdivision lot, by reference to recorded deeds, or by other reasonable reference method.
(3) The petition shall include a map or plat of the proposed district, showing that, if the district is created, (i) with respect to a petition being submitted to a municipality, the land will be contiguous with land presently within the city or town limits of the municipality, whether or not all the land is presently within the corporate limits of the municipality and (ii) with respect to a petition being submitted to a county, the land will be contiguous.
(4) The petition shall designate no more than three persons to act as agents in representing the owners before the municipality or county. The persons need not be owners of the subject land.
(b) Any land proposed to be included within a district formed by a municipality may not be within the municipal limits of any municipality other than the municipality to which the petition is being made. Any land proposed to be included within a district formed by a county may not be within the municipal limits or the territorial jurisdiction under subsection (a) of Section 11-52-30, of any municipal planning commission of any municipality except with the consent of that municipality. Any land proposed to be included within a district formed by a county may not be within another county except with the consent of that county.
(c) A petition shall contain a proposed form of articles of incorporation for the proposed district, which shall include the following information:
(1) The name of the district and that the district is organized pursuant to the provisions of this chapter.
(2) The names and mailing addresses of the incorporators.
(3) The name of the appointing government.
(4) The names and addresses of the members of the initial board of directors of the district and their initial terms of office.
(5) The period of duration of the district, which may be perpetual.
(6) The location of the principal office of the district.
(7) Any other provisions not inconsistent with this chapter, including any limitations on the power of the district.
(d) A petition shall contain a proposed name for the district substantially in the form of “__________ Improvement District,” which name shall be sufficient to distinguish the district from other districts of the same appointing government.
(e) Upon receipt of a petition, the municipality or county shall confirm that the persons executing the petition are the owners of all land proposed to be included within the district.
(f) If the council considers the formation of a district expedient, the council may, by resolution, approve the formation of the district and the articles of incorporation therefor, and appoint three persons as the initial board of directors of the district.
(g) The three or fewer persons designated by the owners to represent them shall execute and cause to be recorded in the office of judge of probate in the county in which the district exists, and if in more than one county, in all such counties, the articles of incorporation as approved by the appointing government. Upon recordation, the district shall be formed as a body corporate, having the powers stated in this chapter. The acceptance of articles of incorporation for recording by the judge of probate shall be conclusive evidence of the due, legal, and valid incorporation of the district in all courts.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-5** Validity of Petition to Form or Amend District {#sec-11-99a-5 omnilex-key=us-al-statutes--title-11--11-99A-5}
No petition for the formation of a district with the requisite signatures shall be declared void on account of defects. The council of the appointing government, at any time, may permit the petition to be amended to conform to the facts or this chapter by correcting any errors in the description of the territory or in any other particular.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-6** Powers of a District {#sec-11-99a-6 omnilex-key=us-al-statutes--title-11--11-99A-6}
Any district shall have the following powers, in addition to those stated elsewhere in this chapter:
(1) To have perpetual existence, subject to termination as herein provided.
(2) To have and use a corporate seal, but the use of a corporate seal on any document shall not be required for the validity of a document or the due execution and delivery thereof.
(3) To sue and to be sued and to be a party to suits, actions, and proceedings, but subject to the limitations on liability and the immunity granted in this chapter.
(4) To enter into contracts and agreements affecting the affairs of the district, including contracts with the United States of America and any other public person.
(5) To borrow money and to incur indebtedness and to evidence the same by bonds, all without an election.
(6) To acquire and dispose of land, real property, personal property, and interests therein of any nature.
(7) To acquire, construct, install, and operate improvements and all property, rights, or interests incidental or pertinent thereto, and to dispose of real and personal property and any interest therein, including leases and easements and options to purchase in connection therewith; provided, however, that nothing in this chapter shall authorize a district to construct, own, or operate a system for the generation, transmission, or distribution of electric power, cable television, or Internet system, or telecommunications utility or to be in the business of providing electric energy, cable television, Internet, or telecommunications services.
(8) To refund any bonds of the district without an election.
(9) To have the management, control, and supervision of all the business and affairs of the district, and of the acquisition, construction, installation, and operation of improvements therein.
(10) To enter into contracts with one or more owners of property within the district relating to the acquisition, construction, or installation of improvements. Without limitation, contracts may require owners to connect their properties with gas, water, or sewer mains or other utilities in the streets in front of, at the rear of, or otherwise adjacent or near to their properties prior to the paving or final paving of roads on which their properties front. In addition, to the extent not subject to a bid law, contracts may specify the improvements to be made in general or particular terms, the choice of construction companies or other contractors, consultants, or professionals, choice of underwriter, trustee, fiscal agent, attorneys, engineers, and all other matters relating to the acquisition, construction, and installation of the improvements, the levying of assessments, or the issuance of bonds.
(11) To contract with any public person for the purpose of providing any materials or any work with respect to the acquisition, installation, or construction of improvements, and any contracting with any public person shall be exempt from any laws relating to the advertising and award of construction contracts and purchase contracts, including, without limitation, Article 3 of Chapter 16 of Title 41.
(12) To purchase liability and other forms of insurance.
(13) To hire and compensate employees and contractors, to provide retirement and other forms of deferred compensation, to provide fringe benefits, and to otherwise contract with employees and contractors.
(14) Except to the extent limited in the district’s articles of incorporation, to have and exercise the power of eminent domain in the manner provided by law to obtain private property for the purposes of the district including, without limitation, proceedings under Chapter 1A of Title 18, as a condemner. However, a district may not exercise the power of eminent domain without the consent of the council of the appointing government.
(15) To adopt and amend bylaws not in conflict with the articles of incorporation and the laws of this state.
(16) To enter into contracts and agreements with any landowner, owner, or any other person concerning the installation, construction, or acquisition of improvements, assessment of the costs thereof, the waiver or limitation of legal rights, or any other matter concerning the district or the improvements.
(17) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter. A specific power shall not be considered as a limitation upon any power necessary, useful, or appropriate to carry out the purposes and intent of this chapter.
(18) To allow utilities or similar entities to use any rights-of-way on which the district is developing any improvements or has developed any improvements.
(19) To take official action with respect to the reimbursement of costs with bond proceeds.
(20) To enter into contracts, agreements, options, leases, deeds, and other instruments, and to take other actions as may be necessary or convenient to accomplish any purpose for which a district is organized or to exercise any power expressly granted hereunder.
(21) To dedicate or grant streets, sidewalks, parks, any other improvements, easements, rights-of-way, and other interests in property to the public, to a public person, or to a utility provided that nothing herein shall require a public person to accept the dedication without an affirmative act of acceptance by the public person.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-7** Immunity {#sec-11-99a-7 omnilex-key=us-al-statutes--title-11--11-99A-7}
Districts, the members of the board, its officers, and agents shall have the same immunity from liability as a municipality and its officers. No civil action shall be brought or maintained against the district or any director thereof for or on account of the negligence of a district or director or its or his or her agents, servants, or employees in or about the construction, acquisition, installation, maintenance, operation, superintendence, or management of any facility or other improvement owned, controlled, maintained, or managed by the district.
No civil action may be maintained against an appointing government, its officers, servants, employees, or agents relating to any facility or other improvement owned, controlled, maintained, or managed by the district.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-8** Internal Operations of a District {#sec-11-99a-8 omnilex-key=us-al-statutes--title-11--11-99A-8}
(a) Each board shall have a chair, a secretary, and a treasurer or a secretary-treasurer, and may have a vice-chair and other officers as the board may determine from time to time.
(b) All proceedings of a board and of all committees of the board shall be recorded in minutes, which shall be maintained and available for inspection by the appointing government.
(c) All funds of a district shall be deposited or invested as directed by the board. However, funds received by the district from a public person and not from assessments shall be deposited or invested only in a manner as a public person may invest or deposit funds.
(d) Any member of a board and any officer may call a special meeting of the board as may be permitted by the bylaws or resolutions of the board. Personal notice may be waived by any members of the board before, at, or after a meeting by waiver in writing signed by the person giving the waiver. The attendance of any member of the board at any meeting of the board shall constitute a waiver of notice unless attendance is made exclusively for the purpose of protesting the means of calling the meeting, and the person otherwise does not participate in the meeting.
(e) Any meeting that is called at which a quorum is not present may be adjourned by announcement at the meeting of the date to which it is adjourned, and may be reconvened at a time as a quorum shall become available.
(f) A quorum of a board shall consist of a majority of the members of the board. Actions of the board shall be taken by a majority of those present, if a quorum is present, unless a higher percentage is provided for in the articles of incorporation or bylaws.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-9** Appointment of Board Members {#sec-11-99a-9 omnilex-key=us-al-statutes--title-11--11-99A-9}
(a) The district shall have a board of directors in which all powers of the district shall be vested and which shall consist of the number of members specified in the articles of incorporation, but not less than three nor more than 11. Members of the board shall be appointed by the appointing government. The articles of incorporation shall specify that the members of the board serve for staggered terms, with one-third, or as near to one-third as is practical, of the initial members serving for four years, with one-third, or as near to one-third as is practical, of the initial members to serve for five years, and with one-third, or as near to one-third as is practical, of the initial members to serve for six years. Thereafter, the successors to members of the board of directors shall serve for six-year terms. The proceedings of the appointing government by which members of the board are appointed shall specify the term for which the appointment is made. Upon the expiration of the term of office of any member of the board, the person whose term shall have expired shall remain a member of the board until his or her successor shall have been duly appointed by the appointing government. Members of the board need not be owners, residents, electors, or taxpayers of the appointing government or the state.
(b) No vacancy in the membership of the board of directors or the voluntary disqualification or abstention of any member thereof shall impair the right of a quorum to exercise all of the powers and duties of the board.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-10** Annexation Incidental to Formation of District {#sec-11-99a-10 omnilex-key=us-al-statutes--title-11--11-99A-10}
The petition for the formation of a district by a municipality may include land that is not within the corporate limits of the municipality provided that the land is, taken as a whole, contiguous with land within the corporate limits of the municipality. In such a case, upon the formation of the district, all land within the districts shall become automatically annexed into and a part of the municipality.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-11** Assessment of District Land {#sec-11-99a-11 omnilex-key=us-al-statutes--title-11--11-99A-11}
For the payment of all or any part of the costs of improvements and the costs referenced in Sections 11-99A-2(6)(v) and (w) and 11-99A-15(c), a district may petition the appointing government for the assessment of all or any part of that land within the district which is specifically benefited or increased in value by such improvements in accordance with the following procedure:
(1) The board shall prepare plans for the acquisition, construction, or installation of the improvements. The plans shall include:
a. A reasonable description of the nature and location of the improvements.
b. An estimate of the costs of the improvements, which may include the costs referenced in Section 11-99A-2(6)(v) and (w) and Section 11-99A-15(c).
c. A description or designation of the land upon which the assessment shall be levied, which may be made in a manner provided in Section 11-99A-4(a)(2).
d. The manner in which, or the methodology by which, the assessments shall be made.
(2) The proposed assessment of each tract in the district, based on the estimated increase in value of each tract resulting from the special benefits derived from the proposed improvements, and consistent with Section 223 of the Constitution of Alabama of 2022.
(3) The petition shall further include either a document executed by each owner of land within the district that will be subject to the assessment setting forth the written consent thereof to such assessment and approving the petition, or a certification that an election has been held within the district, and that the owners of 51 percent or more of the land within the district that will be subject to such assessment have voted in favor of the assessment.
(4) Except as provided in Section 11-99A-47, the district must comply with all state, county, and municipal laws, rules, and regulations and the district must obtain all approvals that may be required by the appointing government or the government within which the district is located.
Upon receipt of the petition by the council, the council shall determine what approvals may be required by the appointing government in addition to the approval of the council, including, but not limited to, approval of zoning, subdivision, fire regulations, and other ordinances, rules, codes, and regulations of the appointing government, and if other approvals are required, the appointing government shall forward the petition, or applicable portions thereof, to the appropriate boards and agencies to consider whether to grant the petition and to notify the district of the necessity of obtaining approvals. The petition shall be held by the appointing government in abeyance until all approvals as may be required have been received, or variances or exceptions granted.
Failure to notify the district of any required approval shall not relieve the district from complying with the required approval. No cause of action may be maintained against the appointing government, its officers, employees, servants, or agents for failure to notify the district of any required approval.
(5) In the event that the board determines that it is necessary to amend its petition to the appointing government in order to conform to its rules, regulations, and ordinances, or to obtain variances and exceptions as may be appropriate, or to obtain approval of the petition by the council, the board may do so.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-12** Contracting for Improvements {#sec-11-99a-12 omnilex-key=us-al-statutes--title-11--11-99A-12}
Upon the making of the preliminary assessment, the board shall prepare contracts and bid specifications, and shall bid or otherwise contract for the acquisition, construction, or installation of all the improvements as specified in the petition. In general, all contracts shall be bid in accordance with applicable state law. However, if an improvement or a portion of an improvement is to be paid for exclusively with funds provided through assessments under this chapter or by the owners or on behalf of the owners, and not from any revenues, taxes, or funds of the appointing government, the contracting for the acquisition, construction, or installation of the improvement or portion thereof shall be exempt from all laws relating to the advertising and award of construction contracts and purchase contracts, including, without limitation, Title 39 and Article 3 of Chapter 16 of Title 41, and shall be performed in the sole discretion of the board. All contracts and bids shall be contingent upon the issuance of a final assessment by the appointing government as hereinafter provided.
Notwithstanding the foregoing, the board may contract for and commence the acquisition, construction, or installation of one or more improvements or a portion of one or more improvements in advance of a preliminary or final assessment, provided that the contract for the acquisition, construction, or installation is exempt from laws relating to the advertising and award of construction contracts and purchase contracts under this section.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-13** Final Assessment {#sec-11-99a-13 omnilex-key=us-al-statutes--title-11--11-99A-13}
As soon as possible after receipt by the appointing government of the petition and all required approvals, variances, or exceptions, the council shall conduct a hearing with respect to the petition, and, if considered expedient by the council, the council shall confirm and make final the assessment or the methodology by which the assessments shall be made, as provided in the petition, whereupon the assessments and methodology therefor shall stand confirmed and be and remain legal, valid, and binding liens upon the property upon which the assessments are made, as provided in this chapter. The final assessment of each tract in the district shall be based on the estimated increase in value of each tract resulting from the special benefits derived from the improvements, and consistent with Section 223 of the Constitution of Alabama of 2022, but shall not be made against any land owned or used by a utility in connection with the distribution, transmission, or generation of electric power. If the council considers the recommendation inexpedient, the council shall advise the board of the reasons for its determination, and the board may submit a revised recommendation to the appointing government.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-14** Payment of Assessments {#sec-11-99a-14 omnilex-key=us-al-statutes--title-11--11-99A-14}
(a) Each assessment shall constitute a lien on the property assessed in the amount of the assessment with respect to that parcel of land, as provided in the final assessment, forecloseable as provided in this chapter. The assessment shall be payable either within 30 days after the final assessment or over such term as may be determined by the board. If the assessment is to be paid over a term, the assessment shall accrue interest and be payable periodically, monthly, quarterly, semiannually, annually, or as otherwise provided by the board, with interest at a rate as may be considered reasonable by the board. In particular, the assessment may bear interest at the same rate or yield borne by the bonds issued to obtain funds to acquire, construct, or install the improvements, but interest may be at a higher rate in the discretion of the board. Once the amount of a final assessment allocated with respect to a tract is paid in full, with all interest and penalties and costs of collection, if any, such tract shall be released from the lien of the assessment.
(b) The proceedings by which an assessment is levied may provide for an increased interest rate with respect to any interest accruing on any payment after the due date thereof.
(c) In its proceedings, the board may specify that assessments may be prepaid at any time or circumstance. The board may specify that assessments be prepaid upon the sale of the tract of land, or a portion thereof, being assessed. If the obligation to pay is accelerated, the assessment shall include all principal of the assessment then unpaid, plus interest until the next date provided for the payment of principal on any bonds secured by a pledge of the assessments, unless otherwise provided in the proceedings pursuant to which the bonds are issued.
(d) Unless otherwise provided in the proceedings of the board with respect to the assessment, any assessment may be voluntarily prepaid by the owner of the land assessed. In that case, the amount prepaid shall be applied first to interest until the first following date on which principal may be paid under the bond, and then to principal. However, if provided in the proceedings of the board with respect to the assessment, prepayments, whether voluntary or mandatory, the amount prepaid may be applied only to interest accrued to the date of the prepayment, and then to principal.
(e) Alternatively, the proceedings of the board with respect to the assessment may provide that prepayment shall be applied first to accrued interest, and then to the difference between: (1) interest that will accrue from the date of prepayment until the next principal payment on the bonds, and (2) the rate of interest at which the principal paid may be invested by the board to earn interest from the date of prepayment until the principal payment date, with any remaining balance to be applied to principal.
(f) The proceedings of the board with respect to the assessment may provide that any mandatory prepayment may be waived by the board on the terms as may be provided in a proceeding.
(g) If bonds are issued with respect to the final assessment, the assessments shall either (1) total the principal amount of the bonds to be issued with respect to the assessments or (2) total such principal amount multiplied by a coverage ratio (e.g., 1.2 to 1) providing debt service coverage for the bonds in the ratio desired by the board.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-15** Issuance of Bonds by Districts; Terms and Assessments {#sec-11-99a-15 omnilex-key=us-al-statutes--title-11--11-99A-15}
(a) A district may borrow money by the issuance of bonds, which bonds shall be revenue obligations, payable exclusively out of assessments levied on land within the district, and the bonds shall not be supported by the full faith and credit of the appointing government. However, the bonds may be secured by additional revenues, guarantees, pledges, letters of credit, or other credit enhancements as may be provided by the district, the owner of any property within the district, or any other person, to the extent provided in the proceedings of the board with respect to the issuance of the bonds.
(b) Bonds of a district shall be signed by its chair and attested by its secretary, the seal of the district may be affixed thereto, and any interest coupons applicable to the bonds shall be signed by the chair; provided that: (1) a facsimile of the signature of the officers may be printed or otherwise reproduced on any bonds in lieu of being manually subscribed thereon, (2) a facsimile of the seal of the district may be printed or otherwise produced on any bonds in lieu of being manually affixed thereto, and (3) a facsimile of the chair’s signature may be printed or otherwise reproduced on any interest coupons in lieu of being manually subscribed thereon; provided that the bonds have been manually authenticated by a transfer agent of the bond issue. Delivery of the bonds executed shall be valid notwithstanding any changes in officers or in the seal of the district after the signing and sealing of the bonds.
(c) Bonds may be issued for the cost of acquiring, installing, and constructing the improvements, any reasonable reserve funds for contingencies or for debt service, for interest accruing during the construction period and for up to five years thereafter, for the costs of issuance, the costs of levying the assessments, the costs of forming the district, the costs of designing and planning the improvements, and for all other incidental costs even though incurred before the formation of the district or before the issuance of the bonds.
(d) Bonds issued by a district shall not be indebtedness of the appointing government or any public person other than the district, and shall not be counted against the debt limit of any county or municipality, except to the extent guaranteed by the appointing government or other public person.
(e) The appointing government and any other public person may guarantee or pledge revenues to the payment of any bonds on such terms as it considers appropriate, including a pledge of its full faith and credit. A revenue pledge may, without limitations, include a pledge of revenue increases deemed to have resulted from the construction, acquisition, or installation of the improvements as determined by resolution or ordinance of the public person making the pledge.
(f) Upon the adoption by a board of any resolution providing for or anticipating the issuance of bonds, the district may, either before, upon, or after issuance of bonds, publish once a week for two consecutive weeks in a newspaper of general circulation in the appointing government, a notice in substantially the following form, the blanks being properly filled in, at the end of which shall be printed the name and title of either the chair or secretary of the district: “_____, a municipal improvement district organized under the laws of the State of Alabama, on the ____ day of ______, ____, adopted a resolution with respect to the issuance of not more than $ _____ principal amount of [revenue or other appropriate designation] bonds of the district for purposes authorized in the act of the Legislature of Alabama under which the district was organized. Any action or proceeding questioning the validity of the bonds, any pledge or mortgage to secure the same, the assessments made with respect to the bonds, or the proceedings authorizing the same shall be commenced within 20 days after the first publication of this notice.” Any action or proceeding in any court questioning the validity of the bonds, any pledge or mortgage to secure the same, the assessments made with respect to the bonds, or the proceedings authorizing the same shall be commenced within 20 days after the first publication of a notice. After the expiration of the period, no cause of action, counterclaim, setoff, or defense questioning any of the foregoing may be asserted in any court on any ground whatsoever except in an action or proceeding commenced within the period for such purpose.
(g) Bonds issued by a district shall be for a term approximately coextensive with the term provided for payment of the assessments.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-16** Exemptions of District - Usury and Interest Laws {#sec-11-99a-16 omnilex-key=us-al-statutes--title-11--11-99A-16}
The rate of interest borne by the assessments shall be exempt from all usury laws or laws prescribing or restricting the rate of interest. Each district organized under this chapter is exempt from the laws of the State of Alabama governing usury or prescribing or limiting interest rates, including, without limitation, the provisions of Chapter 8 of Title 8.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-17** Pledge of Assessments {#sec-11-99a-17 omnilex-key=us-al-statutes--title-11--11-99A-17}
If bonds are issued with respect to all or part of an assessment, all proceeds of the assessment allocable to the payment of such bonds shall be pledged to secure payment of the bonds and shall be paid directly by the property owners to the board or to a trustee or other holder of funds as may be appointed by the board for the benefit of the holders of the bonds.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-18** Refundings {#sec-11-99a-18 omnilex-key=us-al-statutes--title-11--11-99A-18}
Any bonds issued by a district may be refunded by the district, and upon refunding, by current or advance refunding, the term for payment of the assessments shall be modified to the term of the newly issued bonds. If the refunding results in a lower interest rate from that borne by the refunded bonds, the board may adjust the interest rate borne by the assessments accordingly.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-19** Excess Funds {#sec-11-99a-19 omnilex-key=us-al-statutes--title-11--11-99A-19}
Following the completion of the acquisition, construction, or installation of the improvements, if there are excess funds, either from bond proceeds or from assessments, after fully funding all reserves, contingency funds, or the like, the excess funds, either from bond proceeds or from assessments, shall be used to prepay the bonds at the earliest date on which the bonds may be prepaid or redeemed at a penalty or premium of two percent or less, and the amount of the outstanding assessments may be proportionately reduced to reflect prepayment of principal. Upon payment of the bonds in full, other than by refunding, all unpaid assessments may be terminated and cancelled or may be continued, as determined by the board. Any proceeds of assessments remaining or received after payment of the bonds in full shall be disposed of or used to construct, install, or acquire additional improvements, to refund assessments in a manner determined equitable by the board, or as otherwise provided in the board’s proceedings with respect to issuance of the bonds.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-20** Exemption from Taxation {#sec-11-99a-20 omnilex-key=us-al-statutes--title-11--11-99A-20}
(a) Each district, and the bonds and interest and income on the bonds of the district, shall be exempt from all taxation by the state or any other public person and all of its property, purchases, sales, and usage, and the recordation of its mortgages, indentures, deeds, or other instruments to which the district is a party or which reflect the securing of any bonds of the district shall be exempt from all taxation and recording fees. The income of a district shall be exempt from all taxation.
(b) The purchase, acquisition, and installation of materials for improvements by a district shall be exempt from all sales and use taxes, gross receipts taxes in the nature of a sales or use tax, or taxes measured by the amount of the purchase, whether levied on the vendor, contractor, subcontractor, or the district. The Department of Revenue shall issue regulations to provide a simple procedure to allow contractors and subcontractors to make purchases of materials for use in acquiring, constructing, or installing improvements for a district free of sales and use taxes or gross receipts taxes in the nature of a sales tax. Nothing in this chapter shall allow the exemption of sales or use taxes on purchases, acquisitions, or installations that would not be exempt if purchased, acquired, or installed directly by the appointing government.
(c) Notwithstanding the foregoing, the appointing government may at or prior to making a preliminary assessment: (1) Require the payment of fees in lieu of taxes or (2) Limit or restrict or rescind one or more of the tax exemptions provided in this section.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-21** Failure to Pay Assessments {#sec-11-99a-21 omnilex-key=us-al-statutes--title-11--11-99A-21}
If the owner of any land within the district fails to pay an assessment when due, time being of the essence, the board may commence proceedings to foreclose on the land as follows:
(1) The board shall send a letter, certified mail, return receipt requested, United States first class mail to the last known address of the owner. The address of the owner as shown in the tax assessment records of the tax assessor or revenue commissioner for the county in which the property is located shall be sufficient.
(2) The letter shall specify that if payment is not made within 10 days of the date of the letter, foreclosure proceedings may be commenced.
(3) Any late payment received within the 10-day period will accrue a late fee of the greater of five percent of the payment or fifty dollars ($50).
(4) If payment is not made within the 10-day period, the entire assessment shall become immediately due and payable, and the board may do either of the following:
a. File a complaint in the circuit court for the county in which the property is located requesting that the property be foreclosed. Thirty days following service of process, unless the entire assessment is paid in the meantime, the court shall enter a decree declaring that the property shall be sold to the highest bidder.
b. Proceed to sell the property against which the assessment is made to the highest bidder for cash.
c. In either case, the property shall be sold in the same manner and upon the same notice as provided by law for the sale of lands or property by foreclosure by power of sale for mortgages. The proceeds from the sale shall first be applied to the amount of the assessment and all accrued interest thereon, plus penalties specified in subdivision (3), plus the attorneys’ fees and other expenses incurred by the board in the foreclosure and suit.
(5) If the board concludes that no bidders are present or that all bids are insufficient, the board may announce that the sale shall be continued to a later date to be announced by public notice.
(6) Upon declaring the highest bidder and receipt of the purchase price, the board shall deliver a foreclosure deed to the highest bidder which shall vest therein legal title to the property sold by foreclosure, subject to easement or other rights in such property of persons other than the owner that has failed to pay the assessment. The owner of the property shall have no right of redemption unless otherwise provided in the board’s proceedings with respect to the assessment.
(7) The purchase price shall be used first for the payment of the assessment, then for the cost of collection, suit, foreclosure, and deed preparation, then for penalties, then for accrued interest and interest until the next principal payment date of bonds as provided in this chapter with respect to prepayments of assessments, and then for the unpaid principal amount of the assessment, and any remaining portion shall be paid to the owner of the land at the owner’s last known address as shown in the records of the tax assessor or revenue commissioner with respect to such tract of land.
(8) The board may bid on any sale the same as any other person, and may credit any portion of the assessment and other costs as a part of its bid.
(9) If the highest amount bid and accepted is insufficient to pay the entire assessment, the board and holders of the bonds shall have no further claim against the owner of the land assessed by virtue of the assessment.
(10) Any foreclosure deed shall make no warranty with respect to the title to the land other than as expressly stated therein.
(11) At any point in the foreclosure proceedings, until a bid is accepted, the board may waive the default on terms as it may consider proper and reinstate the assessment, subject to any contrary terms of the board’s proceedings with respect to the bonds.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-22** Amendments of District {#sec-11-99a-22 omnilex-key=us-al-statutes--title-11--11-99A-22}
A board may submit to the appointing government a petition for amendment of the district, to alter its boundary lines, to add additional property contiguous to the municipality (in the case of a district formed by that municipality) or to the district, or to make an amendment in the articles of incorporation as the board may consider expedient. The council may approve changes, and upon approval, changes shall become effective. To the extent the articles of incorporation are to be amended, the board shall, following a hearing, make an amendment to the articles of incorporation to be forthwith recorded in the office of judge of probate of the county or counties in which the district is located, reflecting the approved amendment. If the amendment adds additional land to a district formed by a municipality, upon the recording of such amendment, such additional land shall be deemed annexed into the municipality. However, no land shall be added to a district by amendment except with the written consent of the owners of such land.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-23** Conduct of Elections {#sec-11-99a-23 omnilex-key=us-al-statutes--title-11--11-99A-23}
(a) In any instance where this chapter requires or authorizes the conduct of an election or a vote of owners of land within or electors of a district, public notice of the election shall be given not less than 30 days in advance of an election.
(b) An election under this chapter shall be held at a location convenient to the district selected by the board or appointing government.
(c) An election under this chapter shall otherwise be conducted by the appointing government or board by secret ballot. All costs associated with the election shall be borne by the district.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-24** Dispute as to Ownership {#sec-11-99a-24 omnilex-key=us-al-statutes--title-11--11-99A-24}
If there is a dispute as to the true owner of any property within a district, the board shall resolve a dispute in accordance with this chapter, and the determination may not be overturned by any court unless the determination is found to be arbitrary and capricious.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-25** Failure to Provide Notice {#sec-11-99a-25 omnilex-key=us-al-statutes--title-11--11-99A-25}
In any case where notice is provided for in this chapter, if the board or appointing government finds for any reason that due notice was not given, the board or appointing government shall not thereby lose jurisdiction and the proceedings shall not be voided, but if the proceeding is continuing, the board shall hold the proceedings in abeyance until due notice is given, and shall continue the proceeding as though notice had been properly given in the first instance. If the proceedings are not continuing, the board or appointing government shall provide an opportunity for the person or persons failing to receive notice to be heard, and after having heard the person, the board or appointing government may make modifications in the assessments, plans, improvements, or bond issue as it may deem appropriate.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-26** Multiple Assessments {#sec-11-99a-26 omnilex-key=us-al-statutes--title-11--11-99A-26}
A board, by the proceedings described in this chapter, may request the appointing government to levy one or more than one assessments, on some or all of the property in the district, and no property shall be exempt from assessment due to the fact that it is presently subject to another assessment. If the board determines that certain property within the district is not benefited by any particular improvement, the board shall not request the appointing authority to levy an assessment on property for the improvement.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-27** Dissolution and Liquidation {#sec-11-99a-27 omnilex-key=us-al-statutes--title-11--11-99A-27}
If at any time a district has no assessments outstanding, and has paid all its indebtedness, the board may adopt a resolution recommending to the appointing government that the district be dissolved and liquidated. Upon delivery of a copy of the resolution to the council, the council, if it considers it expedient, may adopt a resolution declaring the district dissolved. Upon the adoption of a resolution, the board shall proceed to distribute all property in the district to the appointing government, or to other public persons as may be directed by the council or as otherwise provided in the district’s articles of incorporation. Upon distribution, the district shall cease to exist.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-28** Reimbursement of Appointing Government Costs {#sec-11-99a-28 omnilex-key=us-al-statutes--title-11--11-99A-28}
If the council of an appointing government considers it expedient, the council may require the district to reimburse it for its reasonable costs in reviewing the district’s plans and proposals, including the cost of legal counsel, engineers, and other consultants or professionals assisting the appointing government in considering proposals of the district, and the amount shall be paid by the district to the appointing government and may be paid by the district out of the proceeds of an issue of bonds.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-29** Resolutions Not Permanent {#sec-11-99a-29 omnilex-key=us-al-statutes--title-11--11-99A-29}
All resolutions to be adopted by an appointing government under this chapter shall be deemed not to be permanent or of a continuing nature and shall not require two readings and shall not require publication. All resolutions shall be immediately effective upon adoption.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-30** Methods of Allocating Assessments {#sec-11-99a-30 omnilex-key=us-al-statutes--title-11--11-99A-30}
Subject to Section 223 of the Constitution of Alabama of 2022, if considered appropriate by a council, the cost of an assessment may be levied on property in proportion to, or based upon, front feet, or square footage of each parcel, acreage, its estimate of the increase in value of the property resulting from the improvements for which the assessment was made, or in accordance with the methodology determined by the district and approved by the appointing government therefor.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-31** Recordation of Notice of Lien {#sec-11-99a-31 omnilex-key=us-al-statutes--title-11--11-99A-31}
(a) All preliminary and final assessments shall constitute liens upon the property assessed. The council shall provide a copy of the preliminary and final assessment to the municipal or town clerk of the appointing government, either of which shall constitute notice to all of the existence of the preliminary or final assessment and their priority, the same as though recorded in the records of the office of the judge of probate, and all purchasers of property, whether bona fide purchasers or not, shall take subject to the assessment, whether or not having actual knowledge of the assessment. Moreover, in the discretion of the council or board, notice of the presence of a preliminary or final assessment may be recorded in the office of the judge of probate for the county or counties in which a district is located. Any such recordation shall be free of mortgage or other recording taxes.
(b) All assessments made pursuant to this chapter, together with all interest thereon and penalties for default and payment thereof, and all costs of collecting, suing for, or foreclosing shall constitute from the date of the preliminary assessment a lien against each lot or tract of land as provided in the assessment and shall have priority over all other liens, other than liens for ad valorem taxes.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-32** Apportionment of Liens {#sec-11-99a-32 omnilex-key=us-al-statutes--title-11--11-99A-32}
Upon the subdivision of any assessed tract of land, the board may, but shall not be required to, apportion the lien and the assessment among the subdivided lots in a manner as the board may consider expedient.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-33** Non-effect of Errors {#sec-11-99a-33 omnilex-key=us-al-statutes--title-11--11-99A-33}
No delays, mistakes, errors, or irregularities in any act or proceeding authorized or required by this chapter shall prejudice or invalidate any preliminary or final assessment, but may be remedied by subsequent filings, amending acts, or municipal, county, or board proceedings, as the case may require. When remedied, the preliminary or final assessment shall take effect retroactively as of the date of the original filing, act, or proceeding. If any final assessment made is set aside by any court or if for any reason the board determines it to be expedient to alter any final assessment, the appointing government may make a new assessment in accordance with this chapter.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-34** Irregularly Shaped Lots {#sec-11-99a-34 omnilex-key=us-al-statutes--title-11--11-99A-34}
In assessing lots based on front footage, special assessments may be made for irregularly shaped lots having unusually high or low front footage in proportion to the size of the lot.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-35** Enjoining of Assessments {#sec-11-99a-35 omnilex-key=us-al-statutes--title-11--11-99A-35}
No suit may be brought or maintained to enjoin the collection of assessments levied under this chapter except upon the ground that public notice of a hearing upon the amount of the assessment with respect to property owned by the person bringing the suit was not given as required in this chapter and that the failure materially infringed the rights of the person bringing suit. However, any person presenting objections to the board at or before the hearing on assessment shall be deemed to have waived this ground.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-36** Pledge of Assessments to Bonds {#sec-11-99a-36 omnilex-key=us-al-statutes--title-11--11-99A-36}
Assessments may be pledged to an issue of bonds, and if pledged, the pledge shall be deemed a perfected, first claim by the bondholders, or trustee on behalf of the bondholders, against the assessments, regardless of compliance with the terms of Article 9 of Title 7, the Alabama Uniform Commercial Code, or any other public notice or filing. However, nothing herein shall prevent the filing of a financing statement under Article 9 of Title 7, the Alabama Uniform Commercial Code, and a filing shall not constitute an election to perfect only in accordance with Article 9 of Title 7.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-37** Appropriations by Public Persons {#sec-11-99a-37 omnilex-key=us-al-statutes--title-11--11-99A-37}
A public person may contribute funds or property of any kind to a district by appropriation, grant, donation of services of municipal employees or contractors, lease, deed, or other means considered appropriate, for the purpose of paying in whole or in part any bonds, to pay the costs of acquiring, installing, or constructing improvements in whole or in part, or to fund in whole or in part any other costs or expenses of the district, all without an election of any kind. A public person may issue bonds for the purpose of financing the costs of any funds or property provided to a district. If a public person provides funds to pay debt service on any bond issue in whole, the public person shall, if it elects, be subrogated to the rights of the district to the proceeds of the unpaid assessments to the extent of the funds provided. The district and the public person may contract for the granting of subrogation with respect to any partial or whole prepayment with respect to particular lots or parcels.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-38** Merger of Improvement Districts {#sec-11-99a-38 omnilex-key=us-al-statutes--title-11--11-99A-38}
Two or more districts having a single appointing government may, by joint petition filed with the appointing government, request that the districts be merged. If the petition is approved by the appointing government, the districts shall be merged into a single district. No merger shall alter any existing assessments or bonds nor shall a merger result in any existing assessments being pledged to bonds to which assessments were not pledged prior to the merger. No merger shall impair the security of any outstanding bonds of the district.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-39** Feasibility as a Condition {#sec-11-99a-39 omnilex-key=us-al-statutes--title-11--11-99A-39}
The appointing government, as a condition to approving the establishment of a district or the levying of a preliminary or final assessment, may require that the petitioners or the board, as appropriate, demonstrate the feasibility of the proposed improvements, by providing a feasibility report, such as evidence that the bonds will be purchased by an underwriter or other purchaser, a recommendation by the appropriate officials within the appointing government, or other means as may be required by the appointing government.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-40** Land Owned by Public Persons {#sec-11-99a-40 omnilex-key=us-al-statutes--title-11--11-99A-40}
Land owned by a public person shall be exempt from assessments regardless of whether the public person consented to the formation of the district.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-41** Use of Improvements by Persons Not Assessed {#sec-11-99a-41 omnilex-key=us-al-statutes--title-11--11-99A-41}
(a) For use of improvements constructed, acquired, or installed by the district with proceeds of assessments, the board may require the payment of a connection, tap fee, or increased tap fee by persons owning property not assessed to pay for improvements, even though the utilities may be provided by some public person or utility other than the board. The tap fee shall be reasonable and may not exceed 150 percent of the assessment that otherwise would have been paid by the person.
(b) If the owner of any property that fronts on any street built with proceeds of an assessment, whether or not within the district, wishes to connect a driveway or street or otherwise to have access to the street, the owner shall obtain consent of the board to connect to the street, to any cut in the curb, to the establishment of any cut in the median, if any, and otherwise to ingress and egress on the street. The board shall exercise its discretion in order to provide for public safety in the use of the street, and may further condition approval on the payment of a “curb cut fee” in an amount not in excess of 150 percent of the assessments that the owner of the fronting property would have paid had the owner’s property been included within the district and the board shall require any owner to pay or reimburse the district for any costs of the district in making a curb cut, median cut, or otherwise permitting ingress and egress. The district may further condition use of the street on the adjacent land being annexed into the municipality that formed the district, on the owner of the land agreeing to restrict the use or to regulate the appearance of the land, or otherwise as the board may determine to be in the interest of the district. The district may enjoin by appropriate proceedings any ingress or egress to a street contrary to this section and any violation of any agreement restricting the use or regulating the appearance of the fronting land, without posting bond, and the person enjoined shall be obligated to pay all costs and legal fees in connection with the obtaining and enforcing of such injunctive relief.
(c) All tap fees and curb cut fees shall be applied to the payment of any bond issue outstanding that financed the cost of the improvements to which the owner is obtaining access. If no bonds are outstanding or fees exceed the amount of the bonds, the excess amount shall either be used to build additional improvements or to refund assessments paid with respect to improvements.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-42** Reassessments {#sec-11-99a-42 omnilex-key=us-al-statutes--title-11--11-99A-42}
The council may make a reassessment or new assessment of a parcel if:
(1) A court of competent jurisdiction sets aside an assessment against the parcel.
(2) On the written advice of legal counsel, the council determines that the original assessment is invalid.
(3) Requested in writing by a district to correct an error or omission in an existing assessment, or to comply with the methodology for the assessments as approved by the council as provided in this chapter, or to conform an assessment or assessments to the provisions and limitations thereupon of this chapter.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-43** Assessment Revenue Anticipation Bonds, Notes Etc {#sec-11-99a-43 omnilex-key=us-al-statutes--title-11--11-99A-43}
The district at any time may obtain loans, in the amounts, on the terms and conditions, and payable from and secured by a pledge of such funds, revenues, assessments, and property, all as the board may determine, for the purpose of paying any costs of the district referenced in Section 11-99A-2(6)(v) and (w) and Section 11-99A-15(c), and in evidence thereof the district may issue assessment revenue anticipation bonds, notes, or other evidences of debt. The provisions of Section 11-99A-15(f) shall apply to any such debt.
*(Act 99-446, p. 1013, §1; Act 2013-373, p. 1364, §1.)*
##### **§ 11-99A-44** Bonds in Series {#sec-11-99a-44 omnilex-key=us-al-statutes--title-11--11-99A-44}
Bonds of a district may be issued in series, and, for example, one series may be issued as tax-exempt under the United States Internal Revenue Code, while another series may be issued as taxable. A separate series may also have different assessments pledged as security or may have its proceeds designated for the acquisition, construction, and installation of different improvements.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-45** Parity Bonds {#sec-11-99a-45 omnilex-key=us-al-statutes--title-11--11-99A-45}
A district may make provisions for the subsequent issue of additional parity bonds or subordinate lien bonds on terms and conditions specified in the proceedings of the board with respect to the bond issue.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-46** Assumption of Municipal or County Actions {#sec-11-99a-46 omnilex-key=us-al-statutes--title-11--11-99A-46}
Where an appointing government has taken official action with respect to the construction, acquisition, or installation of improvements, whether before or after June 12, 1999, such as by adoption of a resolution or ordinance respecting the same, a district previously or thereafter formed may assume the official action and may undertake the construction, acquisition, or installation of improvements and may pay or reimburse all costs incurred with respect to the improvements by or on behalf of the appointing government from bond issue proceeds.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-47** Limited Exception from Regulations {#sec-11-99a-47 omnilex-key=us-al-statutes--title-11--11-99A-47}
The appointing government and any other public person may determine that improvements may be built by the district, paid for with proceeds of bonds, and may otherwise be subject to the terms of this chapter even though the subdivision, zoning, or other ordinances, rules, codes, and regulations of the appointing government or other public person would, but for this chapter, require the owners of the land, developers, or other private persons to pay for the costs of improvements, and to the extent paid for from the proceeds from a bond issue or assessments under this chapter, the private person shall be relieved of the obligation to pay for costs.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-48** Additional Security for Bonds {#sec-11-99a-48 omnilex-key=us-al-statutes--title-11--11-99A-48}
(a) A board may pledge out of bond proceeds or other sources reserve funds for the repayment of bonds. In addition, the district, any other public person, or any other person may mortgage, subject to foreclosure, for the benefit of bonds, any improvements constructed, acquired, or installed with proceeds of the bonds.
(b) A board, the appointing government, any other public person, or any other person may pledge to the payment of bonds all or part of a grant, donation, revenue, or income received or to be received from the government of the United States or any other public or private source, whether or not it is received pursuant to an agreement or otherwise.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-49** Investments in Bonds {#sec-11-99a-49 omnilex-key=us-al-statutes--title-11--11-99A-49}
Bonds issued under this chapter are legal and authorized investments for banks, trust companies, savings and loan associations, savings banks, insurance companies, fiduciaries, trustees, guardians, and any public person. Bonds issued under this chapter may be security for deposits of public funds of any public person.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-50** Provisions Cumulative {#sec-11-99a-50 omnilex-key=us-al-statutes--title-11--11-99A-50}
The provisions of this chapter shall be cumulative with any other act of the Legislature permitting municipalities or other public persons to assess property for the acquisition, construction, or installation of improvements.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-51** Disposition of Net Earnings {#sec-11-99a-51 omnilex-key=us-al-statutes--title-11--11-99A-51}
The district shall be a nonprofit, public corporation, and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation; except, that in the event the board of directors of the board shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of the district, any net earnings of the corporation thereafter accruing shall be paid to the appointing government or as otherwise provided in the articles of incorporation or proceedings with respect to the bonds.
*(Act 99-446, p. 1013, §1.)*
##### **§ 11-99A-52** Formation and Incorporation of Districts Validated and Confirmed; Validity of Certain Districts {#sec-11-99a-52 omnilex-key=us-al-statutes--title-11--11-99A-52}
(a) The formation and incorporation of each district heretofore formed and incorporated pursuant to this chapter by any county or municipality is hereby validated and confirmed from the date of such formation and incorporation, notwithstanding any noncompliance with any provisions of Section 11-99A-4 or other provision of this chapter with respect thereto; provided, however, that the validation and confirmation effected by this section shall not be applicable to any district the validity of which is being directly challenged in appropriate judicial proceedings in any proper court on May 24, 2013.
(b) In the event that, subsequent to June 12, 1999, land within the corporate limits of a municipality is removed from, or deannexed from, or otherwise determined not to be within, the corporate limits of such municipality, such that land within a district formed and incorporated pursuant to a petition approved by such municipality under Section 11-99A-4, which land is therefore within the corporate limits of such municipality, is no longer contiguous at any point with land within the corporate limits of such municipality, then the district shall be valid in all respects from the date of formation and incorporation thereof, the land within such district shall be and remain within the corporate limits, and a part, of such municipality, and such municipality shall remain the appointing government with respect to such district.
*(Act 2013-373, p. 1364, §2.)*
### **Chapter 99B** Capital Improvement Cooperative Districts
##### **§ 11-99B-1** Definitions {#sec-11-99b-1 omnilex-key=us-al-statutes--title-11--11-99B-1}
When used in this chapter the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) APPLICANT. A natural person who files a written application with the governing body of any county or municipality or public corporation in accordance with the provisions of Section 11-99B-3.
(2) AUTHORIZING RESOLUTION. A resolution, adopted by a governing body in accordance with the provisions of Section 11-99B-3, that authorizes the incorporation of a district.
(3) AUTHORIZING SUBDIVISION. Any county or municipality or public corporation the governing body of which shall have adopted an authorizing resolution.
(4) BOARD. The board of directors of a district.
(5) BONDS. Bonds, notes, and certificates representing an obligation to pay money.
(6) COUNTY. Any county in the state.
(7) DIRECTOR. A member of the board of directors of the district.
(8) DISTRICT. A public corporation organized pursuant to the provisions of this chapter.
(9) GOVERNING BODY. With respect to a county, its county commission, and, with respect to a municipality, its city or town council, board of commissioners, or other like governing body and, with respect to a public corporation, its board of directors.
(10) INCORPORATORS. The persons forming a public corporation organized pursuant to the provisions of this chapter.
(11) MEMBER. Any county, municipality, or public corporation which elects one or more directors to the board of a district.
(12) MUNICIPALITY. Any incorporated city or town of the state.
(13) PERSON. Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation, a municipality, a county or an agency, department or instrumentality of the state, or of a county or municipality.
(14) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of proceedings of the board of a district are kept.
(15) PROPERTY. Real and personal property and interests therein.
(16) PROJECT. Any capital improvement, facility, structure, building, property, or appurtenances thereto of any nature, type, or description which any member is authorized by any law of the state to own, acquire, construct, or finance.
(17) PUBLIC CORPORATION. Any public corporation organized under the laws of the state.
(18) PUBLIC REVENUES. Any one or more of the items of tax proceeds and other revenues that a municipality or county is authorized to pledge for its bonds under the provisions of Section 11-81-16.
(19) STATE. The State of Alabama.
*(Act 2000-781, p. 1825, §1.)*
##### **§ 11-99B-2** Intent {#sec-11-99b-2 omnilex-key=us-al-statutes--title-11--11-99B-2}
This chapter is intended to encourage and facilitate cooperative efforts by public entities to provide projects for their own use and for the use and benefit of their citizens and users.
*(Act 2000-781, p. 1825, §2.)*
##### **§ 11-99B-3** Filing of Application for Incorporation of District; Adoption of Resolutions Approving or Denying Application by Governing Bodies {#sec-11-99b-3 omnilex-key=us-al-statutes--title-11--11-99B-3}
(a) In order to incorporate a district under this chapter, any number of natural persons, not less than three, shall first file an identical written application with the governing body of each county, municipality, and public corporation proposed to be a member of the proposed district. Such application shall contain:
(1) A statement of each project that the district proposes to acquire or construct.
(2) A general description of the area or areas in which the district proposes to acquire or construct such project or projects, and the name of each county, municipality, and public corporation proposed to be a member of the district.
(3) A proposed total number of directors, which shall be at least equal to the total number of counties and municipalities, and public corporations with the governing bodies of which such application is filed, but in no event less than three, and proposed provisions for the election of each director by one of such governing bodies and for the election of at least one director by each of said governing bodies; and any proposal to give the directors proportional voting power based upon the percentage of indebtedness and operating expenses of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors.
(4) The proposed location of the principal office of the district, which shall be within a county with the governing body of which such application is filed or within a county in which is located a municipality or a public corporation with the governing body of which such application is filed.
(5) A statement that each of the applicants is a duly qualified elector of the county or one of the counties with the governing bodies of which such application is filed or a county in which is located a municipality or a public corporation with the governing body of which such application is filed.
(6) A request that each of such governing bodies adopt a resolution declaring that it is wise, expedient, and necessary that the proposed district be formed and authorizing the applicants to proceed to form the proposed district by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-99B-4.
Such application may also state a proposed plan for apportioning the properties of the district upon its dissolution among its members. Every such application shall be accompanied by such supporting documents or evidence as the applicants may consider appropriate.
(b) As promptly as may be practicable after the filing of the application in accordance with the provisions of subsection (a) each governing body with which the application was filed shall review the contents of the application, and shall adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary that the proposed district be formed and authorizing the applicants to proceed to form the proposed district by the filing for record of a certificate of incorporation in accordance with the provisions of Section 11-99B-4.
*(Act 2000-781, p. 1825, §3.)*
##### **§ 11-99B-4** Filing of Certificate of Incorporation and Copies of Resolutions of Governing Bodies with Judge of Probate; Contents and Execution of Certificate of Incorporation; Notification of Secretary of State of Recordation of Certificate of Incorporation by Judge of Probate {#sec-11-99b-4 omnilex-key=us-al-statutes--title-11--11-99B-4}
(a) Following the adoption of an authorizing resolution by that governing body that was the last to adopt an authorizing resolution, but if and only if each other governing body with whom such application was filed has theretofore adopted an authorizing resolution, the applicants shall proceed to incorporate a district by filing for record in the office of the judge of probate of the county in which the principal office of the district is to be located, as specified in the certificate of incorporation provided for in this section, a certificate of incorporation which shall comply with the requirements of this section and which shall be in the form and executed in the manner provided in this section.
(b) The certificate of incorporation of the district shall state:
(1) The names of the persons forming the district and the statement required by Section 11-99B-3(a)(5).
(2) The period for the duration of the district. If the duration is to be perpetual, subject to the provisions of Section 11-99B-15, that fact shall be stated.
(3) The name of each authorizing subdivision, together with the date on which the governing body thereof adopted an authorizing resolution.
(4) The name of the district, and the location of the principal office of the district, which shall be the same as that stated in the application required by Section 11-99B-3.
(5) A general description of the project or projects proposed to be acquired or constructed by the district, and a general description of the proposed location thereof.
(6) The total number of directors and the number of directors which the governing body of each authorizing subdivision shall be entitled to elect; and any provision to give the directors proportional voting power based upon the percentage of indebtedness and operating expenses of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors.
(7) The proposed name of the district, which shall include the words “cooperative district.”
(8) A plan for apportioning the properties of the district upon its dissolution among its members, but only if such plan was stated in the application filed with the governing bodies of the authorizing subdivisions in accordance with the provisions of Section 11-99B-3.
(9) A statement that the application filed with the governing body of each of the authorizing subdivisions in accordance with Section 11-99B-3 was identical to the copy thereof attached to said certificate of incorporation.
(10) Any other matters relating to the district that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) To the extent that any matter required by the provisions of subsection (b) to be included in the certificate of incorporation of a district is also required or permitted to be included in the application theretofore filed with the authorizing subdivisions in accordance with the provisions of Section 11-99B-3; the provisions of the certificate of incorporation with respect to such matter shall be in strict accordance with the corresponding provisions of such application.
(d) The certificate of incorporation shall be signed and acknowledged by the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it (i) a copy of the application as filed with the governing body of each of the authorizing subdivisions in accordance with the provisions of Section 11-99B-3, (ii) a certified copy of the authorizing resolution adopted by the governing body of each authorizing subdivision; and (iii) a certificate by the Secretary of State that the name proposed for the district is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. Upon the filing for record of the said certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the district shall come into existence and shall constitute a public corporation under the name set forth in said certificate of incorporation. The judge of probate shall thereupon send a notice to the Secretary of State that the certificate of incorporation of the district has been filed for record.
*(Act 2000-781, p. 1825, §4.)*
##### **§ 11-99B-5** Authorization and Procedure for Amendment of Certificate of Incorporation {#sec-11-99b-5 omnilex-key=us-al-statutes--title-11--11-99B-5}
(a) The certificate of incorporation of any district may at any time be amended in the manner provided in this section.
(b)(1) The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which shall be set forth in full in the resolution and the amendment may include, without limitation:
a. A change in the name of the district.
b. The addition to the project or projects of the district of a new project or projects and the proposed location thereof.
c. A change in the general description of the area or areas in which the district proposes to acquire each project or projects, including, but not limited to, the addition of new or additional areas or property with the consent of the owner or owners of the new or additional property.
d. Any matters that might have been included in the original certificate of incorporation, or any change in any such matters.
(2) If any proposed amendment would add any new county, municipality, or public corporation as a member of a district, the proposed amendment shall include, in addition:
a. Provisions for election of at least one director by the governing body of each new county, municipality, or public corporation.
b. Provisions for any change in the total number of directors that the board deems appropriate and any provision to give the directors proportional voting power based upon the percentage of indebtedness and operating expenses of the district for which the entities electing the directors will be guarantors, or any other measure for establishing proportional voting power of directors; provided, however, that the total number of directors shall be at least equal to the number of directors immediately before the amendment, plus the number added pursuant to paragraph a.
c. Any provision that the board deems appropriate for apportioning of the properties of the district upon its dissolution among its members.
(c) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the district, the chair of the board or other chief executive officer of the district and the secretary of the district shall sign and file a written application in the name of and on behalf of the district, under its seal, with the governing body of each member and each additional county, municipality, or public corporation proposed to be added as a member of the district. The application shall request each governing body with which the application is filed to adopt a resolution approving the proposed amendment and shall be accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with any documents in support of the application as the chair or other chief executive officer may consider appropriate.
(d) As promptly as may be practicable after the filing of the application with any governing body pursuant to subsection (c), that governing body shall review the application and shall adopt a resolution either denying the application or authorizing the proposed amendment.
(e) Following the adoption of a resolution by that governing body that was the last to adopt such a resolution, but only if the governing body of each other county, public corporation, and municipality with whom the application was filed has theretofore adopted a resolution, the chair of the board or other chief executive officer of the district and the secretary of the district shall sign and file for record in the office of the judge of probate of the county where the certificate of incorporation of the district was filed a certificate in the name of and on behalf of the district, under its seal, reciting the adoption of the respective resolutions by the board and by each of the governing bodies and setting forth the proposed amendment. If the proposed amendment provides for a change in the name of the district, there shall be filed, together with the certificate required by the immediately preceding sentence, a certificate of the Secretary of State showing that the proposed new name of the district is not identical to that of any other corporation then in existence and organized under the laws of this state or so nearly similar to that of any other corporation so as to lead to confusion and uncertainty. Upon the filing for record of each certificate, the amendment to the certificate of incorporation shall become effective. If the proposed amendment effects a change in the name of the district, the judge of probate shall promptly send a notice to the Secretary of State advising him or her of the change.
*(Act 2000-781, p. 1825, §5; Act 2024-452, §1.)*
##### **§ 11-99B-6** Board of Directors {#sec-11-99b-6 omnilex-key=us-al-statutes--title-11--11-99B-6}
(a) Each district shall be governed by a board of directors. All powers of the district shall be exercised by the board or pursuant to its authorization. Subject to the provisions of Sections 11-99B-4 and 11-99B-5, the board shall consist initially of that number of directors, apportioned among and elected by the authorizing subdivisions, as shall be specified in the certificate of incorporation of the district. The initial term of office of each such director shall begin immediately upon his or her election and shall end at 12:01 A.M. on the fourth anniversary date of the filing for record of the certificate of incorporation of the district. Thereafter, the term of office of each such director shall be four years.
(b) If any amendment to the certificate of incorporation of the district shall increase the membership of the board, the board shall thereafter consist of such number of directors, elected by such governing bodies, as may be specified in the said amendment. The initial term of office of each new director added by any such amendment shall begin immediately upon his election after the effective date of the amendment and shall end at 12:01 A.M. on the fourth anniversary date of the filing for record of such amendment. The term of office of each new director added by amendment as aforesaid shall, following the initial term of such new director, be for a period of four years. If at any time there should be a vacancy on the board, a successor director to serve for the unexpired term applicable to such vacancy shall be elected by that governing body which elected the director whose unexpired term he or she is to fill.
(c) Each director of a district elected by a county governing body must be a duly qualified elector of that county from which he or she was elected, and, if elected by a municipality of less than 2,000 inhabitants according to the most recent decennial census, such director must be a duly qualified elector of that county in which such municipality is located, or, if elected by a municipality of 2,000 or more inhabitants according to said census, such director must be a duly qualified elector of the municipality from which he or she was elected. Directors shall be eligible for reelection. Each director shall be reimbursed for expenses actually incurred by him or her in and about the performance of his or her duties. If the certificate of incorporation so provides, directors shall be compensated in such an additional amount as may be prescribed by the governing body of each member, but no officer of any county or municipality shall receive any such additional amount.
(d) Any director 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 1901, and the general laws of the state for impeachment and removal of the officers mentioned in said Section 175.
(e) If the certificate of incorporation so provides, the directors shall have proportional voting power, based on the measure or measures set out in the certificate of incorporation.
*(Act 2000-781, p. 1825, §6.)*
##### **§ 11-99B-7** Powers of District {#sec-11-99b-7 omnilex-key=us-al-statutes--title-11--11-99B-7}
Each district shall have the following powers, together with all powers incidental or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time, which may be in perpetuity, subject to Section 11-99B-15, specified in its certificate of incorporation.
(2) To sue and to be sued in its own name in civil actions and to defend civil actions against it; provided, that the district shall be deemed to be a “governmental entity” as defined in Chapter 93 for the purposes of limiting the damages for which the district and its members may be liable.
(3) To adopt and make use of a corporate seal and to alter the same at its pleasure.
(4) To adopt and alter bylaws for the regulation and conduct of its affairs and business.
(5) To acquire, receive, take, by purchase, gift, lease, devise, or otherwise, and to hold property of every description, whether located in one or more counties or municipalities.
(6) To make, enter into, and execute licenses, contracts, agreements, leases, and other instruments and to take other actions as may be necessary or convenient to accomplish any purpose for which the district was organized or to exercise any power expressly granted under this section.
(7) To plan, establish, develop, acquire, purchase, lease, construct, reconstruct, enlarge, improve, maintain, equip, and operate a project or projects or any part or combination of any thereof, whether located in one or more counties or municipalities, and to acquire franchises and easements deemed necessary or desirable in connection therewith.
(8) To sell and issue bonds of the district in order to provide funds for any corporate function, use, or purpose, any bonds to be payable solely out of the revenues derived from any project or projects of the district, or pursuant to any guarantees by any of its members.
(9) To assume obligations secured by a lien on or payable out of or secured by a pledge of the revenues from any project or any part of any thereof that may be acquired by the district, any obligation so assumed to be payable by the district solely out of the revenues derived from the operation of any project or any thereof of the district.
(10) To pledge for payment of any bonds issued or obligations assumed by the district any revenues from which those bonds or obligations are made payable as provided in this chapter.
(11) To execute and deliver trust indentures in accordance with this chapter.
(12) To exercise the power of eminent domain in the manner provided in and subject to Title 18; provided, that this subdivision shall not be deemed to authorize the district to acquire, without the consent of the owner or owners thereof, any property or interests therein at the time dedicated to public use.
(13) To appoint, employ, contract with, and provide for the compensation of officers, employees, and agents, including, but without limitation, engineers, attorneys, accountants, architects, management consultants, and fiscal advisers as the business of the district may require.
(14) To make and enforce reasonable rules and regulations governing the use of any project owned or controlled by the district.
(15) To provide for insurance as the board may deem advisable.
(16) To invest any funds of the district that the board may determine are not presently needed in the operation of its properties in any investment which may be made by any of its members.
(17) To cooperate with the United States of America, any agency or instrumentality thereof, the state, any county, municipality, or other political subdivision of the state, and any public corporation and to make such contracts with them as the board may deem advisable to accomplish the purpose for which the district was established.
(18) To sell and convey any of its properties that may have become obsolete or worn out or that may no longer be needed or useful as a part of any project of the district.
(19) To sell and convey, with or without valuable consideration, any of its projects or any portion thereof to any one or more counties, municipalities, or public corporations which have the corporate power to operate the project or portions thereof so conveyed and the property and income of which are not subject to taxation; provided, that any sale and conveyance may be made only with the consent of each member of the district, any consent to be evidenced by a resolution adopted by the governing body of each member and only if any conveyance would not constitute a breach of any then outstanding trust indenture or other agreement to which the district is a party.
(20) To enter into a management agreement or agreements with any person for the management by the district of any project or any part thereof upon terms and conditions as may be mutually agreeable.
(21) To fix and revise, from time to time, reasonable rentals, licenses, rates, fees, and other charges for the use of any project or portion thereof, owned or operated by the district, from the users of the project or projects, or from the businesses or property owners within the district, which shall be approved by each governing body that is a member of the district to the extent required by its certificate of incorporation, and to collect all charges made by it.
(22) To require any user of any of its projects or any part thereof to make a reasonable deposit with the district in advance to ensure the payment of rentals, licenses, rates, fees, or charges, or costs of repair to any damage to the project and to be subject to the application to the payment thereof if and when delinquent.
*(Act 2000-781, p. 1825, §7; Act 2024-452, §1.)*
##### **§ 11-99B-8** Bonds of District - Form, Terms, Denominations; Sale; Execution and Delivery; Refunding; Liability Thereon; Security for Payment of Principal and Interest and Payment Thereof Generally; Provisions in Trust Indentures Executed as Security for Payment of Bonds Generally {#sec-11-99b-8 omnilex-key=us-al-statutes--title-11--11-99B-8}
All bonds issued by the district shall be signed by the chairman of its board or other chief executive officer and attested by its secretary and the seal of the district shall be affixed thereto, and any interest coupons applicable to the bonds of the district shall be signed by the chairman of its board or other chief executive officer.
Any such bonds may be executed and delivered by the district at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall contain such provisions not inconsistent with the provisions of this chapter, and shall bear such rate or rates of interest, or no interest, payable and evidenced in such manner, as may be provided by resolution of its board. Bonds of the district may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board to be most advantageous. The principal of and interest on any bonds issued or obligations assumed by the district may thereafter at any time, whether before, at, or after maturity of any such principal and whether at, after, or not exceeding six months prior to the maturity of any such interest, and from time to time be refunded by the issuance of refunding bonds of the district, which may be sold by the district at public or private sale at such price or prices as may be determined by its board to be most advantageous or which may be exchanged for the bonds or other obligations to be refunded. The district may pay all expenses, premiums, and commissions which its board may deem necessary and advantageous in connection with any financing done by it. All bonds issued by the district shall be construed to be negotiable instruments although payable solely from a specified source.
All obligations created or assumed and all bonds issued or assumed by the district shall be solely and exclusively an obligation of the district and shall not create an obligation or debt of any member of the district; provided, that the provisions of this sentence shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the district.
Any bonds issued by the district shall be limited or special obligations of the district payable solely out of the revenues of the district specified in the proceedings authorizing those bonds or from any guarantees of such bonds. Any such proceedings may provide that the bonds therein authorized shall be payable solely out of the revenues derived from the operation or leasing of all projects owned by the district or solely out of the revenues from the operation or leasing of any one or more of such projects or parts thereof, regardless of the fact that those bonds may have been issued with respect to or for the benefit of only one project of the district.
The district may pledge for the payment of any of its bonds the revenues from which such bonds are payable and may execute and deliver a trust indenture evidencing any such pledge conveying as security for such bonds the revenues which are so pledged. Any trust indenture made by the district may contain such agreements as the board may deem advisable respecting the operation and maintenance of the project and the use of the revenues subject to such trust indenture and respecting the rights, duties, and remedies of the parties to any such instrument and the parties for the benefit of whom such instrument is made; provided, that no such instrument shall be subject to foreclosure.
*(Act 2000-781, p. 1825, §8.)*
##### **§ 11-99B-9** Contracts to Secure Payment of Principal and Interest {#sec-11-99b-9 omnilex-key=us-al-statutes--title-11--11-99B-9}
(a) As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the district may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any project owned by it or any part or parts thereof, for the imposition and collection of reasonable rates, licenses, rentals, fees, and charges for and the adoption of reasonable regulations respecting any such project, for the disposition and application of its gross revenues or any part thereof, and for any other act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from the project will be sufficient to operate the project, maintain the same in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from the revenues, and maintain reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of the project, and the making of replacements thereof and capital improvements thereto.
(b) Any contract pursuant to this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any trust indenture made by the district under this chapter.
*(Act 2000-781, p. 1825, §9; Act 2024-452, §1.)*
##### **§ 11-99B-10** Disposition of Proceeds from Sale of Bonds {#sec-11-99b-10 omnilex-key=us-al-statutes--title-11--11-99B-10}
All moneys derived from the sale of any bonds issued by the district shall be used solely for the purpose or purposes for which the same are authorized and any costs and expenses incidental thereto. Such costs and expenses may include but shall not be limited to:
(1) The fiscal, accounting, engineering, legal, and other expenses incurred in connection with the issuance of the bonds.
(2) Interest on the bonds in the case of bonds issued to pay costs of construction or, if a part only of any series of bonds is issued for construction purposes, interest on that portion of the bonds of that series that is issued to pay construction costs prior to and during such construction and for not exceeding one year after completion of such construction.
(3) Any premium that it may be necessary to pay in order to redeem or retire the bonds or other obligations to be refunded in the case of bonds issued for the purpose of refunding principal and interest, or either, with respect to bonds issued or obligations assumed by the district.
*(Act 2000-781, p. 1825, §10.)*
##### **§ 11-99B-11** Rates, Fees, Charges, Etc., for Services or Facilities Provided by District; Use of Funds {#sec-11-99b-11 omnilex-key=us-al-statutes--title-11--11-99B-11}
Rates, fees, charges, rentals, and licenses for services rendered by the district or facilities provided by the district from any of its projects shall be so fixed and, from time to time, revised as at all times to provide funds at least sufficient, taking into account other sources for the payment thereof, to:
(1) Pay the cost of constructing, operating, maintaining, repairing, replacing, extending, and improving the project or projects of the district and to pay the cost of any new or additional projects.
(2) Pay the principal of and the interest on all bonds issued and obligations assumed by the district that are payable out of the revenues derived from operation of the project or projects of the district as the principal and interest become due and payable.
(3) Create and maintain reserves for the foregoing purposes as may be provided in any trust indenture executed by the district under this chapter or in any resolutions of the board authorizing the issuance of bonds, the assumption of any obligation, or the acquisition of any project.
(4) Make annual payments, if any, to the United States of America or any agency or instrumentality thereof, the state, municipalities, counties, departments, authorities, agencies, and political subdivisions of the state, and any public corporations organized under the laws of the state as the district may have contracted to make.
*(Act 2000-781, p. 1825, §11; Act 2024-452, §1.)*
##### **§ 11-99B-12** Loans, Sales, Grants, Guarantees, Contractual or Lease Obligations of Money or Property, to District by Counties, Municipalities, and Public Corporations {#sec-11-99b-12 omnilex-key=us-al-statutes--title-11--11-99B-12}
(a) For the purpose of securing services of or the right to use or the use by its citizens or customers of one or more projects of a district, or aiding or cooperating with the district in the planning, development, undertaking, acquisition, construction, extension, improvement, financing, operation, or protection of a project, any county, municipality, or other political subdivision, public corporation, agency, or instrumentality of this state may, upon such terms and with or without consideration, as it may determine:
(1) Lend or donate money to, guarantee all or any part of the indebtedness or operating expense of, or perform services for the benefit of, the district.
(2) Donate, sell, convey, transfer, lease, or grant to the district, without the necessity of authorization at any election of qualified voters, any property of any kind, including, but without limitation, any project, any interest in any thereof, and any franchise.
(3) Contract with the district or enter into a lease under such terms as may be mutually agreeable, including a contract obligating it to purchase a certain service or product from the district for a stipulated price in a stipulated period of time, or to pay for such service or product whether or not it receives it, or lease all or a part of a project for a stipulated rental for a stipulated period of time, or to pay such rental whether or not the leased facilities are available to it.
(4) Do any and all things, whether or not specifically authorized in this section, not otherwise prohibited by law, that are necessary or convenient to aid and cooperate with the district in the planning, undertaking, acquisition, construction, financing, or operation of its projects.
(5) Pay, or provide for the payment of, the principal of or interest on any then outstanding bonds theretofore issued by the district, whether or not such principal and interest shall have then matured or become due, and any premium that may be payable upon redemption prior to maturity.
(6) Issue its bonds in order to provide moneys to make any loan, donation, or payment authorized in this subsection.
(7) Provide for payment of such bonds of the district by irrevocable trust fund created by agreement with a bank or trust company.
(b) Any bonds issued by a county or a municipality pursuant to authorization in this section may be either general obligations or special obligations payable solely from a specified source or sources, which source or sources may include any public revenues, or portions thereof, which the county or municipality may lawfully use for such purpose. Such county or municipality may pledge for payment of the principal of and interest on any such bonds that are general obligations any public revenues that may lawfully be used for such purpose and may pledge for the benefit of any such special obligations issued by it so much as may be necessary for said payment of the public revenues from which the said special obligations are made payable.
(c) Any such county or municipal bonds shall be in such form or forms and denomination or denominations, may bear no interest or such rate or rates of interest payable and evidenced in such manner and may have such maturities of principal all as may be provided by ordinance or resolution adopted by the governing body of the issuing county or municipality; provided, that:
(1) Any such bonds that are payable solely from public revenues of the character referred to in subdivision (4) of Section 11-81-16, shall not have a maturity date later than 50 years after their date.
(2) Any such bonds other than those described in subdivision (1) shall not have a maturity later than 30 years after their date. Any bonds issued pursuant to this section shall be made subject to redemption prior to maturity to the extent required by the provisions of Chapter 82 of this title, and any such bonds shall also be subject to, and shall be issued in accordance with, the applicable provisions of Articles 1 and 2 of Chapter 81 of this title, except that the maturities of any bonds issued under this section, the sources of the payment thereof and the pledges that may be made therefor shall be as herein specifically provided.
(d) The proceeds of any bonds issued by a county or a municipality for the purpose referred to in this section may be applied for payment of principal, interest, and redemption premium with respect to the district’s bonds to be paid from such proceeds and the expenses of issuing such municipal or county bonds.
*(Act 2000-781, p. 1825, §12.)*
##### **§ 11-99B-13** Use of Rights-of-Way of Public Roads by District {#sec-11-99b-13 omnilex-key=us-al-statutes--title-11--11-99B-13}
Each district is hereby authorized to use the rights-of-way of all public roads in the state without securing the prior approval of the state or of its agencies or departments or the governing body of any county and subject only to the necessity of obtaining the municipal consent required by Section 220 of the Constitution of Alabama of 1901; provided, however, that nothing in this section shall be construed to exempt any district from the requirements of Section 23-1-4; provided further, that the said district shall have the duty to restore at its expense all roads, highways, and public rights-of-way in which it may have made excavations or done other work in performing any of its other corporate functions.
*(Act 2000-781, p. 1825, §13.)*
##### **§ 11-99B-14** Exemption from Taxation of District and the Property, Leases, and Bonds Thereof; Payment of Fees, Taxes, or Costs to Judge of Probate for Incorporation {#sec-11-99b-14 omnilex-key=us-al-statutes--title-11--11-99B-14}
The property and income of the district, all bonds issued by the district, the income, and profits from such bonds, conveyances by or to the district and leases, mortgages, and deeds of trust by or to the district shall be exempt from all taxation in the state. The district shall be exempt from all taxes levied by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities that a district may engage in.
The district shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation or the recording of any document.
*(Act 2000-781, p. 1825, §14.)*
##### **§ 11-99B-15** Authorization and Procedure for Dissolution of District; Vesting of Title to Properties of District and Apportionment Thereof Upon Dissolution of District {#sec-11-99b-15 omnilex-key=us-al-statutes--title-11--11-99B-15}
At any time when the district has no bonds or other obligations outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the district shall be dissolved. Upon the filing for record of a certified copy of the said resolution in the office of the judge of probate of the county in which the district’s certificate of incorporation was filed, the district shall thereupon stand dissolved and, in the event it owned any property at the time of its dissolution, the title to all its property shall thereupon pass to and be divided and apportioned among its members, all in such manner and to such extent as may be provided in the district’s certificate of incorporation, as last amended; provided, however, that in the absence of a contrary provision in the said certificate of incorporation, as last amended, title to real estate and tangible personal property, other than cash, shall vest in the county or municipality, as the case may be, in which the said real estate or tangible personal property is located and the title to cash on hand and in banks, accounts receivable, choses in action, and other intangible property, other than intangible interest in land, shall vest in all of the counties and municipalities in which any part of a project lies. Each such county and municipality shall have title to said cash and intangible items as a tenant in common thereof, the fractional interest of each such tenant in common in said items being represented by a fraction the numerator of which is an amount equal to the gross revenues derived by the district during its then next preceding complete fiscal year from projects within that county or municipality, as the case may be, and the denominator of which is an amount equal to the gross revenues derived by the district during the same period from all of its projects. For the purposes of this section only, real and tangible personal property, other than cash, located and service rendered wholly within a municipality shall not be deemed to be located or rendered, as the case may be, in a county.
*(Act 2000-781, p. 1825, §15.)*
##### **§ 11-99B-16** Existence of District Not to Prevent Subsequent Incorporation of Another District {#sec-11-99b-16 omnilex-key=us-al-statutes--title-11--11-99B-16}
The existence of one or more districts incorporated under the provisions of this chapter shall not prevent the subsequent incorporation under this chapter of another district or the amendment of the certificate of incorporation of another district pursuant to authority granted by the same county, counties, municipality or municipalities, public corporation or public corporations, or by the same combination thereof, even though the project described in the certificate of incorporation, as originally filed or amended, of any existing district may include a project proposed by a district that is proposed to be incorporated under this chapter or that proposes to amend its certificate of incorporation under this chapter.
*(Act 2000-781, p. 1825, §16.)*
##### **§ 11-99B-17** Provisions of Chapter as to Incorporation of District, Acquisition of Property, Issuance of Bonds, Exclusive; Jurisdiction Over and Regulation of District, by State Board of Health, Public Service Commission {#sec-11-99b-17 omnilex-key=us-al-statutes--title-11--11-99B-17}
Except as expressly otherwise provided in this chapter, no proceeding, notice, or approval shall be required for the incorporation of any district or the amendment of its certificate of incorporation, the acquisition of any property or project, or the issuance of any bonds, or trust indenture; provided, however, that nothing contained in this section shall be construed to exempt any district from the jurisdiction of the State Board of Health.
The district, every project of the district, and the rates, rentals, fees, licenses, and charges thereof shall be exempt from all jurisdiction of and all regulation and supervision by the Public Service Commission and neither a public hearing nor the consent of the State Department of Finance shall be prerequisite to the issuance of bonds by the district.
*(Act 2000-781, p. 1825, §17.)*
##### **§ 11-99B-18** This Chapter Is Cumulative {#sec-11-99b-18 omnilex-key=us-al-statutes--title-11--11-99B-18}
This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to other laws. However, the issuance of bonds of any district under the provisions of this chapter need not comply with the requirements of any other law of the state generally applicable to the issuance of bonds, notes, and other obligations by other public corporations organized under the laws of the state.
*(Act 2000-781, p. 1825, §18.)*
### **Chapter 100** Alabama Convention Facilities Act
##### **§ 11-100-1** Short Title {#sec-11-100-1 omnilex-key=us-al-statutes--title-11--11-100-1}
This chapter may be cited as the “Alabama Convention Facilities Act.”
*(Acts 1989, No. 89-651, p. 1287, §1.)*
##### **§ 11-100-2** Legislative Findings {#sec-11-100-2 omnilex-key=us-al-statutes--title-11--11-100-2}
The Legislature hereby finds and determines that:
(1) The convention industry is a vital and beneficial industry for the State of Alabama and promotes the health, welfare, progress, and physical and economic well-being of the people of this state.
(2) Adequate facilities are essential to the proper development of the meeting and entertainment industries. Adequate convention facilities are often not self-supporting so as to permit their financing with revenue bonds, but generate economic activity and stimulate business and commerce in the affected locality, and throughout the state, through increased demand for goods and services furnished by restaurants, hotels, places of entertainment, as well as stores, shops and other establishments, and, as a consequence, they generate additional state and local tax revenues.
(3) It is in the interest of the state and its cities and counties, for the state to assist any city, county, and entities or authorities thereof in financing convention facilities by remitting to the city, county, or entities or authorities thereof a portion of the additional state transient occupancy tax proceeds paid by delegates.
*(Acts 1989, No. 89-651, p. 1287, §2.)*
##### **§ 11-100-3** Definitions {#sec-11-100-3 omnilex-key=us-al-statutes--title-11--11-100-3}
As used in this chapter, the following words and phrases shall have the following meanings respectively ascribed to them unless the context clearly indicates otherwise:
(1) BONDS. Either general obligation bonds, limited obligation, or revenue bonds, or a combination thereof, issued after the effective date of this act by a city, county, or entities or authorities thereof in connection with the financing, in whole or in part, of eligible facilities. The term “bonds” shall also refer to any bonds, warrants, or other certificates of indebtedness authorized under the laws of the State of Alabama.
(2) CITY. Any city in this state.
(3) COUNTY. Any county in this state.
(4) AUTHORITY. Any authority created pursuant to Act No. 547, H. 1176, 1965 Regular Session.
(5) DELEGATE. A person attending a national or regional convention or meeting in this state.
(6) ELIGIBLE FACILITIES. Any convention facilities owned by a city, county, or entities or authorities thereof in which the bonds for the facilities are issued after the effective date hereof, or such facilities for which the construction, or substantial expansion, reconstruction, or renovation is completed after May 11, 1989.
(7) ESTIMATED INVESTMENT MULTIPLIER. The number of times initial expenditures by delegates will be respent on additional goods and services in this state, as determined in Section 11-100-4(h).
(8) NATIONAL OR REGIONAL MEETING. A meeting, convention, show, or other function which is intended primarily for delegates from outside the state. For a meeting to qualify as a regional or national meeting, it must meet the criteria as determined for regional or national meetings by the International Association of Convention and Visitor Bureaus or as set by the State Director of Finance.
(9) REVENUE BONDS. Bonds issued by a city, county or authority which are limited or special, rather than general obligations of the issuer and which are not payable from the proceeds of an ad valorem tax.
(10) STATE ASSISTANCE PAYMENTS. Payments to a city, county or entities or authorities thereof, under this chapter.
(11) CONVENTION FACILITIES. Any property, real, personal or mixed, which is necessary or desirable in connection with a convention or meeting center, or similar facility, including without limitation, auditoriums, exhibition halls, facilities for food preparation and serving, parking facilities, and administrative offices in connection therewith.
(12) STATE LODGING TAX or STATE TRANSIENT OCCUPANCY TAX. The tax levied and collected pursuant to Section 40-26-1.
*(Acts 1989, No. 89-651, p. 1287, §3.)*
##### **§ 11-100-4** State Assistance Payments; Application; Procedures; Determination of Base Number of Convention Delegates; Appropriations; Quarterly Requests; Amount of Payments {#sec-11-100-4 omnilex-key=us-al-statutes--title-11--11-100-4}
(a) Any city, county, or entities or authorities thereof may apply to the State Director of Finance for state assistance payments for any eligible facilities. The city, county, or entities or authorities thereof shall file an initial application with the Director of Finance, which shall be in writing and shall describe: (i) the eligible facilities; (ii) the need for said facilities or the benefit therefrom; and (iii) the financing thereof, including the principal and interest payments for the bonds.
(b) The Director of Finance shall promptly review such initial application and shall notify the applicant of any additional information that may be necessary.
(c) After reviewing the initial application and upon reasonable notice to the applicant, the Director of Finance shall hold a public hearing on the application and maintain an official record of such hearing. He shall give notice of the time, place and purpose of the public hearing by publication one time in a newspaper of general circulation within the boundaries of the applicant, not less than 10 days prior to the hearing.
(d) Within 90 days after such public hearing, the Director of Finance shall: (i) determine whether the facilities described in the initial application are eligible facilities; (ii) notify the applicant of its determination; and (iii) if said facilities are determined to be eligible, approve such application and immediately certify the same to the Governor and Joint Legislative Council of the Alabama Legislature.
(e) After the initial application has been approved, the city, county, or entities or authorities thereof must establish a base number of convention delegates which shall be computed by taking an annual average number of convention delegates attending national and regional meetings in said city, county, or the entity’s or authority’s region over the previous five-year period. For purposes of determining such base number, each county, city, or entity or authority thereof is hereby authorized to require each hotel or motel to report quarterly to it the total number of convention delegates in attendance for any national or regional convention or meeting which utilizes 50 or more room nights per meeting. The city, county, or entity or authority thereof shall then file an annual application with the Director of Finance, which shall estimate: (i) the number of additional delegates, over and above the base average number, who will patronize the eligible facilities during the year; (ii) their estimated expenditures; (iii) the estimated additional state lodging tax revenues to be derived as a result of the expenditures (taking into consideration the investment multiplier); (iv) the expected additional expense, if any, to the state; and (v) any other matters prescribed by the Director of Finance. The descriptions required by (i), (ii), and (iii) shall be supported by statistical surveys satisfactory to the Director of Finance.
(f) The Director of Finance shall review all such annual applications, determine the amount of state assistance payments that would be required under such estimates, as determined in paragraph (i) of this section, and shall include in the proposed budget to the Governor, a line item appropriation in such amount, and certify such amount to the State Legislature; provided, however, that in no fiscal year shall the entire amount budgeted for all eligible facilities exceed $3,000,000.
(g) From the net proceeds of the state transient occupancy tax proceeds levied pursuant to Section 40-26-1, the provisions of Section 40-26-20 to the contrary notwithstanding, the Legislature shall appropriate annually such amount as it deems necessary and desirable to satisfy all such projected state assistance payments for the next fiscal year. In the first full fiscal year after May 11, 1989, this amount shall not exceed $500,000; in the second fiscal year after May 11, 1989, this amount shall not exceed $1,000,000; in the third fiscal year after May 11, 1989, this amount shall not exceed $2,000,000; in the fourth fiscal year after May 11, 1989, this amount shall not exceed $3,000,000; and in no subsequent fiscal year shall the amount budgeted ever exceed $3,000,000. Such amounts shall be credited to the Convention Facilities Fund established pursuant to Section 11-100-5.
(h) Each city, county, or entity or authority thereof that has filed an annual application for assistance payments for the current fiscal year shall file a request for state assistance payments with the State Department of Finance within 30 days after the end of each quarter during said fiscal year. The quarterly request shall include the actual number of delegates that patronized eligible facilities during the preceding quarter, the average number of days attendance for such delegates, and signed documentation from an executive of each group or association attesting to the number of delegates and the average number of days attendance. The quarterly request shall also include the delegates’ average expenditures, the delegates’ total estimated expenditures, taking into consideration the investment multiplier, the total estimated additional state lodging tax revenues generated and the amount of state assistance payments requested by the city, county or entity or authority thereof for such quarter. The investment multiplier for each city, county or entity or authority thereof shall be determined by the Director of Finance with due consideration given to the opinion of the International Association of Convention and Visitor Bureaus as to what the investment multiplier should be for such city, county, or entity or authority thereof. The investment multiplier, as determined by the Director of Finance, shall be not greater than five.
(i) The amount of any state assistance payments to which each city, county, or entity or authority thereof having filed an annual application hereunder shall be entitled, shall be an amount equal to two-thirds of the total sum of additional state transient occupancy tax revenue, if any, generated in connection with such city, county, or entity’s or authority’s eligible facility for the preceding quarter, as determined in paragraph (h) of this section. The maximum amount of any city, county, or entity’s or authority’s state assistance payments for any quarter shall be limited to 50 percent of the bond debt service requirements, including principal and interest, for the quarter for which such state assistance payments have been requested.
(j) In any fiscal year in which approved state assistance payments exceed the maximum allowed under Section 11-100-4(g), all participating cities, counties, and entities or authorities thereof shall receive a pro rata share of the amount they would be due to receive otherwise hereunder. In the event state assistance payments are set aside in the Convention Facilities Fund and are unclaimed at the end of the fiscal year, such remaining funds shall revert to the fund to which the taxes would have otherwise been originally deposited.
*(Acts 1989, No. 89-651, p. 1287, §4.)*
##### **§ 11-100-5** Alabama Convention Facilities Fund {#sec-11-100-5 omnilex-key=us-al-statutes--title-11--11-100-5}
(a) There is hereby established in the State General Fund a fund to be known as the Alabama Convention Facilities Fund.
(b) State assistance payments authorized by this chapter shall be made to the participating city, county or entity or authority thereof by the state Comptroller within 30 days after the Director of Finance approves said city, county, or entity or authority quarterly request.
*(Acts 1989, No. 89-651, p. 1287, §5.)*
##### **§ 11-100-6** Termination of State Assistance Payments; Return of Moneys Held {#sec-11-100-6 omnilex-key=us-al-statutes--title-11--11-100-6}
State assistance payments to cities, counties, and entities or authorities thereof, authorized by this chapter, shall be terminated when the bonds issued to finance said city, county, or entity’s or authority’s eligible facilities are fully retired or when, in the instance the bonds are refinanced, at the date the original issue of such bonds would have reached its final maturity. Any moneys then held by the cities or counties or entities or authorities thereof, derived from state assistance payments, shall be returned to the state and deposited into the account in the State Treasury to which such funds would have otherwise originally been deposited.
*(Acts 1989, No. 89-651, p. 1287, §6.)*
##### **§ 11-100-7** Faith and Credit of State Not Pledged; Appropriations to Be Made Only from Additional State Lodging Tax Generated by Eligible Facilities {#sec-11-100-7 omnilex-key=us-al-statutes--title-11--11-100-7}
Nothing in this chapter shall be construed as authorizing the pledging of the faith and credit of the State of Alabama or any of its revenues, either for the performance of the obligations of the state under this chapter or for the payment of any bonds. Nothing herein, or in any agreement entered into pursuant to this chapter, shall be construed to require the Legislature to make any appropriation pursuant to this chapter. It is the intent of the Legislature that any appropriation made pursuant to this chapter shall only be made from additional state lodging tax generated by eligible convention facilities as provided herein and that nothing herein, or in any agreement entered into pursuant to this chapter, shall be construed to unearmark any funds currently being collected and deposited in the General Fund pursuant to Section 40-26-20.
*(Acts 1989, No. 89-651, p. 1287, §7.)*
##### **§ 11-100-8** Application of Payments and Credits; Refunding or Refinancing of Bonds {#sec-11-100-8 omnilex-key=us-al-statutes--title-11--11-100-8}
The payments provided for in this chapter shall apply only to debt service incurred pursuant to the provisions of this chapter. No payments or credits shall be allowed for any past debt service payments nor for any debt service payments beyond the date of the final interest and principal payment of the original issue of such bonds. Nothing herein shall restrict any city or county or entities or authorities thereof from refunding or refinancing such bonds within the original maturity schedule to take advantage of savings arising from such refunding or refinancing.
*(Acts 1989, No. 89-651, p. 1287, §8.)*
### **Chapter 101** Acquisition of Real and Personal Property for Lease to United States.(for Termination Date - See Note.)
##### **§ 11-101-1** Purpose {#sec-11-101-1 omnilex-key=us-al-statutes--title-11--11-101-1}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §1.)*
##### **§ 11-101-2** Definitions {#sec-11-101-2 omnilex-key=us-al-statutes--title-11--11-101-2}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §2.)*
##### **§ 11-101-3** Application to Incorporate Authority {#sec-11-101-3 omnilex-key=us-al-statutes--title-11--11-101-3}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §3.)*
##### **§ 11-101-4** Incorporation of Authority {#sec-11-101-4 omnilex-key=us-al-statutes--title-11--11-101-4}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §4.)*
##### **§ 11-101-5** Amendment to Certificate of Incorporation {#sec-11-101-5 omnilex-key=us-al-statutes--title-11--11-101-5}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §5.)*
##### **§ 11-101-6** Board of Directors {#sec-11-101-6 omnilex-key=us-al-statutes--title-11--11-101-6}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §6.)*
##### **§ 11-101-7** Officers {#sec-11-101-7 omnilex-key=us-al-statutes--title-11--11-101-7}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §7.)*
##### **§ 11-101-8** Powers of Authority {#sec-11-101-8 omnilex-key=us-al-statutes--title-11--11-101-8}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §8.)*
##### **§ 11-101-9** Eminent Domain {#sec-11-101-9 omnilex-key=us-al-statutes--title-11--11-101-9}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §9.)*
##### **§ 11-101-10** Powers of Authorizing Subdivision {#sec-11-101-10 omnilex-key=us-al-statutes--title-11--11-101-10}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §10.)*
##### **§ 11-101-11** Sale of Securities {#sec-11-101-11 omnilex-key=us-al-statutes--title-11--11-101-11}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §11.)*
##### **§ 11-101-12** Refunding Securities; Limitations {#sec-11-101-12 omnilex-key=us-al-statutes--title-11--11-101-12}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §12.)*
##### **§ 11-101-13** Signature and Seal {#sec-11-101-13 omnilex-key=us-al-statutes--title-11--11-101-13}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §13.)*
##### **§ 11-101-14** Securities Payable Out of Revenues from Projects, Properties, Etc.; Indenture May Contain Agreements; Liens {#sec-11-101-14 omnilex-key=us-al-statutes--title-11--11-101-14}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §14.)*
##### **§ 11-101-15** Use of Proceeds {#sec-11-101-15 omnilex-key=us-al-statutes--title-11--11-101-15}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §15.)*
##### **§ 11-101-16** Obligations Rest with Authority {#sec-11-101-16 omnilex-key=us-al-statutes--title-11--11-101-16}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §16.)*
##### **§ 11-101-17** Securities Are Legal Investments {#sec-11-101-17 omnilex-key=us-al-statutes--title-11--11-101-17}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §17.)*
##### **§ 11-101-18** Exemption from Usury Laws {#sec-11-101-18 omnilex-key=us-al-statutes--title-11--11-101-18}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §18.)*
##### **§ 11-101-19** Authorization of Securities {#sec-11-101-19 omnilex-key=us-al-statutes--title-11--11-101-19}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §19.)*
##### **§ 11-101-20** Investments {#sec-11-101-20 omnilex-key=us-al-statutes--title-11--11-101-20}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §20.)*
##### **§ 11-101-21** Exemption from Taxation {#sec-11-101-21 omnilex-key=us-al-statutes--title-11--11-101-21}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §21.)*
##### **§ 11-101-22** Exemption from Provisions of Articles 2 and 3 of Chapter 16, Title 41 {#sec-11-101-22 omnilex-key=us-al-statutes--title-11--11-101-22}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §22.)*
##### **§ 11-101-23** Public Corporation {#sec-11-101-23 omnilex-key=us-al-statutes--title-11--11-101-23}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §23.)*
##### **§ 11-101-24** Dissolution {#sec-11-101-24 omnilex-key=us-al-statutes--title-11--11-101-24}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §24.)*
##### **§ 11-101-25** Effect of Formation or Dissolution on Incorporation of Another Authority {#sec-11-101-25 omnilex-key=us-al-statutes--title-11--11-101-25}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §25.)*
##### **§ 11-101-26** Authorities Governed Exclusively by Chapter {#sec-11-101-26 omnilex-key=us-al-statutes--title-11--11-101-26}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §26.)*
##### **§ 11-101-27** Construction of Chapter {#sec-11-101-27 omnilex-key=us-al-statutes--title-11--11-101-27}
*[Repealed]*
Repealed by Act 2001-642, p. 1317, § 2, effective May 20, 2001.
*(Acts 1993, No. 93-1, p. 15, §27.)*
### **Chapter 101A** Acquisition of Real and Personal Property for Lease to United States
##### **§ 11-101A-1** Legislative Intent {#sec-11-101a-1 omnilex-key=us-al-statutes--title-11--11-101A-1}
It is the intent of the Legislature to authorize the several counties and municipalities in the state effectively to form public corporations whose corporate purpose shall be to provide buildings, facilities, and other property for lease to and use by the United States of America, its departments, agencies, and instrumentalities, to invest those public corporations with all powers that may be necessary to enable them to accomplish that purpose, and to authorize each county and municipality forming each public corporation to provide financial support and to take other action as may be necessary to enable the public corporation to carry out the purposes of this chapter. This chapter shall be liberally construed in conformity with this intent.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-2** Definitions {#sec-11-101a-2 omnilex-key=us-al-statutes--title-11--11-101A-2}
As used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) APPLICANT. A natural person who files a written application with the governing body of a county or municipality, or two or more thereof, in accordance with Section 11-101A-3.
(2) AUTHORITY. A public corporation organized pursuant to this chapter.
(3) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of an authorizing subdivision in accordance with Section 11-101A-3, that authorizes the incorporation of an authority under this chapter.
(4) AUTHORIZING SUBDIVISION. Each county and municipality with the governing body of which an application for the incorporation of an authority under this chapter is filed.
(5) BOARD. The board of directors of an authority.
(6) BONDS. Any bonds authorized to be issued by an authority hereunder, including refunding bonds.
(7) CODE. The Code of Alabama 1975.
(8) COUNTY. Any county in the state.
(9) DIRECTOR. A member of the board of an authority.
(10) FEDERAL SECURITIES. Direct obligations of the United States of America for the payment of which the full faith and credit of the United States of America is pledged, or obligations issued by a person controlled or supervised by and acting as an instrumentality of the United States of America, the payment of the principal of, premium, if any, and interest on which is fully and unconditionally guaranteed as a full faith and credit obligation by the United States of America.
(11) FISCAL YEAR. A fiscal year of an authorizing subdivision.
(12) GOVERNING BODY. With respect to a county, its county commission or other like governing body, and with respect to a municipality, its city or town council, board of commissioners, or other like governing body.
(13) INCORPORATORS. The persons forming a public corporation organized pursuant to this chapter.
(14) INDENTURE. A mortgage, mortgage indenture, mortgage and trust indenture, or trust indenture executed by an authority as security for any of its securities.
(15) LEGISLATURE. The Legislature of the state.
(16) MUNICIPALITY. An incorporated city or town of the state.
(17) PRINCIPAL OFFICE. The place at which the certificate of incorporation and amendments thereto, the bylaws, and the minutes of the proceedings of the board of an authority are kept.
(18) PROJECT. Any land and any buildings or other improvements thereon and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the United States.
(19) SECURITIES. Bonds, notes, warrants, certificates of indebtedness, or other evidences of indebtedness, including, without limiting the generality of the foregoing, notes issued in anticipation of the sale of any of the foregoing.
(20) STATE. The State of Alabama.
(21) UNITED STATES. The United States of America or any of its departments, agencies, or instrumentalities.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-3** Application to Incorporate Authority {#sec-11-101a-3 omnilex-key=us-al-statutes--title-11--11-101A-3}
(a) In order to incorporate an authority pursuant to this chapter, any number of natural persons, not less than three, each of whom is a duly qualified elector of the county or municipality with the governing body of which an application is filed, or if there is more than one, at least one thereof, shall first file a written application with the governing body of any county or municipality, or any two or more thereof, which application shall:
(1) Recite the name of each county and municipality with the governing body of which the application is being filed.
(2) Contain a statement that the applicants propose to incorporate an authority pursuant to this chapter.
(3) State the proposed location of the principal office of the authority, which shall be within the boundaries of the county or municipality with the governing body of which the application is filed, or, if there is more than one, at least one thereof.
(4) State that each of the applicants is a duly qualified elector of the county or municipality with the governing body of which the application is filed, or, if there is more than one, at least one thereof.
(5) Request that the governing body of the county or municipality adopt a resolution declaring that it is wise, expedient, and necessary that the proposed authority be formed, approving its certificate of incorporation, and authorizing the applicants to proceed to form the proposed authority by the filing for record of a certificate of incorporation in accordance with Section 11-101A-4. Every application shall be accompanied by the form of certificate of incorporation of the proposed authority and by other supporting documents or evidence the applicants may consider appropriate.
(b) As promptly as may be practicable after the filing of the application in accordance with this section, the governing body of each county and municipality with which the application was filed shall review the contents of the application and the accompanying form of certificate of incorporation, and shall adopt a resolution either denying the application or declaring that it is wise, expedient, and necessary that the proposed authority be formed, approving the form of its certificate of incorporation, and authorizing the applicants to proceed to form the proposed authority by the filing for record of the certificate of incorporation in accordance with Section 11-101A-4. The governing body of each county and municipality with which the application is filed shall also cause a copy of the application, and accompanying documents, to be included in the resolution or otherwise spread upon or made a part of the minutes of the meeting of the governing body at which final action upon the application is taken. No authority shall be formed unless the application required by this section is made and unless an authorizing resolution for which provision is made in this section is adopted by each authorizing subdivision.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-4** Incorporation of Authority {#sec-11-101a-4 omnilex-key=us-al-statutes--title-11--11-101A-4}
(a) Within 60 days following the adoption of the authorizing resolution, or, if there is more than one, the last adopted thereof, the applicants shall proceed to incorporate an authority by filing for record, in the office of the judge of probate of the county in which the principal office of the authority is to be located, a certificate of incorporation complying in form and substance with this action, being in the form and executed in the manner herein provided and being in the form approved by the governing body of each authorizing subdivision.
(b) In addition to any other provisions required by this chapter to be included therein, the certificate of incorporation of an authority shall state:
(1) The names of the incorporators, together with the address of the residence of each thereof, and that each of them is a duly qualified elector of the authorizing subdivision, or, if there is more than one, at least one thereof.
(2) The name of the authority, which shall be “The ______ Federal Building Authority,” with the insertion of the name of one or more of the authorizing subdivisions, unless the Secretary of State determines that the name is identical to the name of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty, in which case the incorporators may insert additional identifying words to eliminate the duplication or similarity or adopt some other similar name that is available.
(3) The period for the duration of the authority. If the duration is to be perpetual, subject to Section 11-101A-24, that fact shall be stated.
(4) The name of each authorizing subdivision together with the date on which the governing body thereof adopted an authorizing resolution.
(5) The location of the principal office of the authority, which shall be within the boundaries of the authorizing subdivision, or, if there is more than one, at least one thereon.
(6) That the authority is organized pursuant to this chapter.
(7) If the exercise by the authority of its powers is to be in any way prohibited, limited, or conditioned, a statement of that prohibition, limitation, or condition.
(8) The number of directors, which shall be an odd number not less than three, the duration of their respective terms of office, which shall not be in excess of six years, and, subject to Section 11-101A-6, the manner of their election or appointment.
(9) Any provisions, not inconsistent with Section 11-101A-24, relating to the vesting of title to its assets and properties upon its dissolution.
(10) Any other matters relating to the authority that the incorporators may choose to insert and that are not inconsistent with this chapter or with the laws of the state.
(c) The certificate of incorporation shall be signed and acknowledged by each of the incorporators before an officer authorized by the laws of the state to take acknowledgments to deeds. When the certificate of incorporation is filed for record, there shall be attached to it a certified copy of each authorizing resolution and a certificate by the Secretary of State that the name proposed for the authority is not identical to that of any other corporation organized under the laws of the state or so nearly similar thereto as to lead to confusion and uncertainty. Upon the filing for record of the certificate of incorporation and the documents required by the preceding sentence to be attached thereto, the authority shall come into existence and shall constitute a public corporation under the name set forth in its certificate of incorporation. The judge of probate shall record the certificate of incorporation in an appropriate book in his or her office and send a notice to the Secretary of State that the certificate of incorporation of the authority has been filed for record.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-5** Amendment to Certificate of Incorporation {#sec-11-101a-5 omnilex-key=us-al-statutes--title-11--11-101A-5}
(a) The certificate of incorporation of any authority incorporated under this chapter may at any time, and from time to time, be amended, but only in the manner provided in this section. The board shall first adopt a resolution proposing an amendment to the certificate of incorporation of the authority, which amendment shall be set forth in full in the resolution and which amendment may include any matters that might have been included in the original certificate of incorporation.
(b) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the authority, the chair of the board and the secretary of the authority shall sign and file, with the governing body of each authorizing subdivision, a written application in the name and on behalf of the authority, requesting the governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with such documents in support of the application as the chair may consider appropriate. As promptly as may be practicable after the filing of the application with the governing body of an authorizing subdivision, the governing body shall review the application and shall adopt a resolution either denying the application or approving and authorizing the proposed amendment. The governing body of each authorizing subdivision with which any application is filed shall also cause a copy of the application and all accompanying documents to be included in the resolution or otherwise spread upon or made a part of the minutes of the meeting of the governing body at which final action upon the application is taken.
(c) Within 60 days following the adoption of a resolution approving the proposed amendment by the governing body of the authorizing subdivision, or, if there is more than one, the last adopted of the approving resolutions, the chair of the board and the secretary of the authority shall sign and file for record in the office of the judge of probate of the county in which the certificate of incorporation of the authority was originally filed a certificate in the name and on behalf of the authority reciting the adoption of the respective resolutions by the board and by the governing body of each authorizing subdivision and setting forth the proposed amendment. The judge of probate shall thereupon record the certificate in an appropriate book in his or her office. When the certificate has been filed and recorded, the amendment shall become effective, and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-6** Board of Directors {#sec-11-101a-6 omnilex-key=us-al-statutes--title-11--11-101A-6}
(a) Each corporation shall be governed by a board of directors composed of the number of directors provided in the certificate of incorporation as most recently amended. Unless provided to the contrary in its certificate of incorporation, all powers of the authority shall be exercised by the board or pursuant to this authorization. Subject to the provisions of subdivision (8) of subsection (b) of Section 11-101A-4, the board shall consist of directors having those qualifications, being elected or appointed by that person or persons, including, without limitation, the board itself, one or more authorizing subdivisions, or other counties and municipalities, and other entities or organizations and in the manner, and serving for the terms of office, all as shall be specified in the certificate of incorporation of the authority. Notwithstanding the foregoing, no fewer than a majority of the directors shall be elected by the governing body or bodies of one or more of the authorizing subdivisions and the certificate of incorporation of each authority shall contain provisions having this effect. Directors elected or appointed by a municipality shall be nominated by the mayor and confirmed by the governing body of the municipality. Directors elected or appointed by a county shall be nominated by the chair of the county commission and confirmed by the governing body of the county. No elected official may serve as a director.
(b) If, at the expiration of any term of office of any director, a successor has not been elected or appointed, then the director whose term of office has expired shall continue to hold office until a successor has been elected or appointed. If at any time there is a vacancy on the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to the vacancy shall be elected or appointed by the person or persons who elected or appointed the predecessor director. Any director, irrespective of by whom elected or appointed, shall be eligible for reelection or reappointment.
(c) Each director shall serve without compensation but shall be reimbursed for expenses actually incurred in and about the performance of his or her duties. A majority of the directors shall constitute a quorum for the transaction of business, but any meeting of the board may be adjourned from time to time by a majority of the directors present. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the powers and perform all the duties of the board. The board shall hold regular meetings at such times, if any, as may be provided in the bylaws of the authority, may hold other meetings at any time and from time to time upon such notice as may be required by the bylaws of the authority, and shall upon call of the chair of the board, or a majority of the total number of directors, hold a special meeting. Any matter on which the board is authorized to act may be acted upon at any regular, special, or called meeting. At the request of any director, the vote on any question before the board shall be taken by yeas and nays and entered upon the record. All resolutions adopted by the board shall constitute actions of the authority, and all proceedings of the board shall be reduced to writing, signed by the secretary of the authority, and recorded in a well-bound book. Copies of proceedings, when certified by the secretary of the authority, under the seal of the authority, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(d) Any director may be impeached and removed from office in the same manner and on the same grounds provided in Section 175 of the Constitution of Alabama of 1901 and the general laws of the state for impeachment and removal of the officers mentioned in Section 175.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-7** Officers {#sec-11-101a-7 omnilex-key=us-al-statutes--title-11--11-101A-7}
The officers of an authority shall consist of a chair of the board, a vice-chair of the board, a secretary, a treasurer, and such other officers as the board deems necessary or desirable. The chair and the vice-chair of the board shall be elected by the board from its membership but neither the secretary, the treasurer, nor any of the other officers of the authority need be a director. The offices of secretary and treasurer may be, but need not be, held by the same person. The officers of the authority shall be elected by the board for such terms as it deems advisable. The duties of the chair of the board, the vice-chair of the board, the secretary, and the treasurer shall be those that are customarily performed by those officers and as may be prescribed by the board. The duties of any other officers of the authority shall be those that are from time to time prescribed by the board.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-8** Powers of Authority {#sec-11-101a-8 omnilex-key=us-al-statutes--title-11--11-101A-8}
(a) In addition to all other powers granted elsewhere in this chapter, and subject to the express provisions of its certificate of incorporation, an authority shall have the following powers, together with all powers incidental thereto or necessary to the discharge thereof in corporate form:
(1) To have succession by its corporate name for the duration of time, which may be in perpetuity, specified in its certificate of incorporation, or until dissolved as provided in Section 11-101A-24.
(2) To sue and be sued in its own name in civil suits and actions, and to defend suits and actions against it, subject, however, to Chapter 93 of this title, which chapter is hereby made applicable to the authority.
(3) To adopt, alter, amend, and repeal bylaws, regulations, and rules for the regulation and conduct of its affairs and business.
(4) To adopt and make use of a corporate seal and to alter the same at pleasure.
(5) To acquire, whether by purchase, construction, exchange, gift, lease, or otherwise and to improve, maintain, equip, and furnish one or more projects, including all real and personal properties which the board deems necessary in connection therewith, regardless of whether any projects are then in existence, at such place or places, within and without the boundaries of its authorizing subdivisions, as it considers necessary or advisable.
(6) To lease or otherwise make available its projects or other of its properties or assets, with or without charge, to the United States or to one or more of its authorizing subdivisions, for sublease to the United States, on such terms as the board deems appropriate, to charge and collect rent or other fees or charges therefor, if any, and to terminate any lease or other agreement upon the failure of the lessee or other party to comply with any of its obligations thereunder.
(7) To receive, acquire, take, and hold, whether by purchase, gift, transfer, foreclosure, lease, devise, option, or otherwise, real and personal property of every description, or any interest therein, and to manage, improve, and dispose of the same by any form of legal conveyance or transfer. Notwithstanding the foregoing, the authority shall not, without the prior approval of the governing body of each authorizing subdivision, dispose of all or substantially all its assets. The foregoing provision shall not be construed to require the prior approval of any governing body for the mortgage or pledge of all or substantially all its assets or for the foreclosure of any mortgage or sale or for any sale or other disposition thereunder.
(8) To mortgage, pledge, or otherwise convey its property and its revenues from any source, including, without limitation, any amounts payable to the authority by an authorizing subdivision in accordance with an agreement entered into pursuant to Section 11-101A-10.
(9) To borrow money in order to provide funds for any lawful corporate function, use, or purpose and, in evidence of such borrowing, to sell and issue interest-bearing securities in the manner provided and subject to the limitations set forth in this chapter.
(10) To pledge for payment of any of its securities its revenues from any source, including, without limitation, any amounts payable to the authority by an authorizing subdivision in accordance with an agreement entered into pursuant to Section 11-101A-10, and to mortgage or pledge any or all of its projects or other assets or properties or any part or parts thereof, whether then owned or thereafter acquired, as security for the payment of the principal of and the interest and premium, if any, on any securities so issued and any agreements made in connection therewith.
(11) To enter into agreements with any person, firm, or corporation for the management by the person, firm, or corporation on behalf of the authority of any of its projects or other properties or for the more efficient or economical performance of clerical, accounting, administrative, and other functions relating to its projects or other properties.
(12) To make all needful or appropriate rules and regulations for the conduct of any properties owned or operated by it and to alter those rules and regulations.
(13) To provide for any insurance the business of the authority requires.
(14) To receive and accept from any source aid or contributions in the form of money, property, labor, or other things of value, to be held, used, and applied to carry out the purposes of this chapter, subject to any lawful condition upon which any aid or contributions may be given or made.
(15) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to do any and all things not specifically prohibited by this chapter or the Constitution of Alabama of 2022, that may be necessary to avail itself of the aid and cooperation of the United States of America, the state, any county or municipality, or any agency, instrumentality, or political subdivision of any of the foregoing in furtherance of the purposes of this chapter; to give such assurances, contractual or otherwise, to or for the benefit of any of the foregoing as may be required in connection with, or as conditions precedent to the receipt of, any such aid, loan, or grant; and to take other action not in violation of law necessary to qualify the authority to receive funds appropriated by any of the foregoing.
(16) To give assurances, contractual or otherwise, and to make commitments and agreements necessary or desirable to preclude the exercise of any rights of recovery with respect to, or the forfeiture of title to, any of its projects or other property or any project or other property proposed to be acquired by it.
(17) To assume any obligations of any entity that conveys and transfers to the authority any project or other property, or interest therein, provided that those obligations appertain to the project, property, or interest so conveyed and transferred to the authority.
(18) To appoint, employ, contract with, and provide for the compensation of, such employees and agents, including, but not limited to, architects, attorneys, consultants, engineers, accountants, financial experts, fiscal agents, and other advisers, consultants, and agents as the business of the authority may require.
(19) To invest, in any trust fund established under and subject to the general laws of the state for investment or self-insurance purposes with investment authority as may be authorized by law for such trusts, any funds of the authority available therefor.
(20) To the extent permitted by its contracts with the holders of its securities, to purchase securities out of any of its funds or moneys available therefor and to hold, cancel, or resell those securities.
(21) To make any expenditure of any moneys under its control that would, if the authority were generally subject to state corporate income taxation, be considered an ordinary and necessary expense of the authority within the meaning of Section 40-18-35, and applicable regulations promulgated thereunder.
(22) To enter into such contracts, agreements, leases, and other instruments, and to take such other actions, as may be necessary or convenient to accomplish any purpose for which the authority was organized or to exercise any power expressly granted hereunder.
(23) To expend funds in support of federal facilities located in Alabama including support for the promotion of such facilities and support for the growth of such facilities and the activities performed at those facilities.
(b) The Legislature declares that no expenditure permitted by subdivision (21) of subsection (a) to be made by or on behalf of an authority shall be considered to be a lending of credit or a granting of public money or thing of value to or in aid of any individual, association, or corporation within the meaning of any constitutional or statutory provision. Nothing herein contained shall be construed as prohibiting or rendering unlawful any otherwise lawful expenditure made by or on behalf of an authority, solely because that expenditure is not expressly permitted by the terms of subdivision (21) of subsection (a).
*(Act 2001-642, p. 1317, §1; Act 2013-78, p. 161, §1.)*
##### **§ 11-101A-9** Eminent Domain {#sec-11-101a-9 omnilex-key=us-al-statutes--title-11--11-101A-9}
An authority shall have, in addition to all other powers granted elsewhere in this chapter, the same power of eminent domain as is vested by law in any authorizing subdivision, in the same manner, and under the same conditions as are provided by law for the exercise of the power of eminent domain by the authorizing subdivision.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-10** Powers of Authorizing Subdivision {#sec-11-101a-10 omnilex-key=us-al-statutes--title-11--11-101A-10}
(a) In addition to all other powers that an authorizing subdivision may have with respect to an authority, any authorizing subdivision may, with or without consideration and on such terms as its governing body may deem advisable:
(1) Lend, donate, or otherwise contribute money to, or perform services for the benefit of, an authority.
(2) Donate, convey, transfer, lease, or grant to an authority any property of any kind.
(3) Enter into contractual agreements with an authority and with other authorizing subdivisions obligating the authorizing subdivision to lend, donate, or otherwise contribute money to, perform services for the benefit of, and to otherwise provide financial support for an authority.
(4) Issue securities of the authorizing subdivision to provide moneys to make any loan, donation, or contribution provided for in subdivisions (1), (2), and (3).
(b) The obligation of an authorizing subdivision to lend, donate, or otherwise contribute money to an authority in accordance with an agreement entered into pursuant to the power granted in subdivision (3) of subsection (a) shall constitute a general obligation of the authorizing subdivision, which may pledge its full faith and credit for the performance of the obligation. The amounts to be paid and the agreements to be performed by the authorizing subdivision under the agreement during any fiscal year during which the agreement is in effect shall be payable solely out of the current revenues of the authorizing subdivision for that fiscal year.
(c) Any securities issued by an authorizing subdivision pursuant to subdivision (4) of subsection (a) may be either general obligations of the authorizing subdivision or special obligations payable solely from a specified source or sources, which source or sources may include any revenues, or portions thereof, which the authorizing subdivision may lawfully use for that purpose. The authorizing subdivision may pledge for payment of the principal of and interest on any securities that are general obligations any revenues that may lawfully be used for that purpose and may pledge for the benefit of any special obligations issued by it so much as may be necessary for the payment of the revenues from which the special obligations are made payable. Any securities shall be in the form or forms and denomination or denominations, may bear such rate or rates of interest payable and evidenced in such manner, and may have such maturities of principal all as may be provided by ordinance or resolution adopted by the governing body of the issuing authorizing subdivision. Any securities issued by a municipality shall also be subject to and shall be issued in accordance with such provisions of Articles 1 and 2 of Chapter 81 of this title as may be applicable to the securities. Any securities issued by a county shall also be subject to and shall be issued in accordance with such provisions of Chapter 28 of this title as may be applicable to the securities.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-11** Sale of Securities {#sec-11-101a-11 omnilex-key=us-al-statutes--title-11--11-101A-11}
Securities of an authority may be executed and delivered by it at any time and from time to time, shall be in such form and denominations and of such tenor and maturity or maturities not exceeding 40 years from their date, shall bear such rate or rates of interest, which may be fixed or which may float or vary based on some index or other standard deemed appropriate by the board, shall be payable and evidenced in such manner, may contain provisions for redemption prior to maturity and may contain other provisions not inconsistent with this chapter, all as may be provided by the resolution of the board authorizing the same or by the indenture under which those securities are authorized to be issued. Any borrowing may be effected by the issuance and sale of securities at either public or private sale in such manner, at such price or prices, at such time or times, and on such other terms and conditions as may be determined by the board to be most advantageous to the authority.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-12** Refunding Securities; Limitations {#sec-11-101a-12 omnilex-key=us-al-statutes--title-11--11-101A-12}
(a) An authority may at any time, and from time to time, sell and issue its refunding securities for the purpose of refunding the principal of and interest on any then outstanding securities of the authority, whether or not the securities shall have matured or be redeemable at the option of the authority at the time of the refunding, and for the payment of any expenses incurred in connection with the refunding and any premium or other sum necessary to be paid to redeem or retire the securities so to be refunded. The principal amount of securities that the authority may at any time issue for refunding purposes shall not exceed the sum of the following:
(1) The outstanding principal or face amount of the securities refunded thereby.
(2) The unpaid interest accrued or to accrue thereon to their respective maturities, or, in the event the securities to be refunded, or any part thereof, are to be retired prior to their respective maturities, the interest accrued or to accrue thereon to the date or dates on which they are to be retired.
(3) Any premium or other sum necessary to be paid to redeem or retire the securities to be refunded, but only if the securities are in fact to be redeemed or retired prior to their respective maturities.
(4) The expenses estimated to be incurred in connection with the refunding.
The authority may also at any time, and from time to time, sell and issue its securities for the combined purpose of refunding any of its securities and of obtaining funds for any other purpose for which it is authorized by this chapter to sell and issue securities, in which event the provisions of this chapter relating to refunding securities shall apply only to those securities issued for refunding purposes.
(b) The principal proceeds derived by the authority from the sale of any refunding securities shall be used only for the payment of the principal of and the interest and premium on the securities being refunded and for payment of the expenses referred to in the preceding subdivision (4) of subsection (a). Notwithstanding the foregoing, if, in the judgment of the board, it is necessary or desirable to effect an advantageous refunding, a portion of the proceeds may be used for payment of principal of and interest on the refunding securities themselves and the remainder of the proceeds for payment of the securities being refunded and of the expenses. Any portion of the proceeds that shall at the time not be needed therefor, may be invested in those investments specified in Section 11-101A-20.
(c) Any refunding may be effected either by sale of refunding securities and the application of the proceeds thereof as provided in subsection (b), or by exchange of the refunding securities for the securities to be refunded thereby, or by any combination thereof. Notwithstanding the foregoing, the holders of any securities to be refunded shall not be compelled without their consent to surrender their securities for payment or exchange prior to the date on which they may be paid or redeemed by call of the authority under their respective provisions. All provisions of this chapter pertaining to securities of the authority that are not inconsistent with this section shall, to the extent applicable, also apply to refunding securities issued by the authority and to securities issued by the authority for both refunding and other purposes.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-13** Signature and Seal {#sec-11-101a-13 omnilex-key=us-al-statutes--title-11--11-101A-13}
All securities of an authority shall be signed in the name and on behalf of the authority by the chair or vice-chair of the board, and the seal of the authority shall be affixed thereto and attested by its secretary or an assistant secretary. Notwithstanding the foregoing, a facsimile of the signature of one or both of the officers whose signature will appear on the securities may be imprinted or otherwise reproduced on any thereof in lieu of manually signing the same, but in the event both signatures are imprinted or otherwise reproduced thereon in facsimile, the securities shall be authenticated on behalf of the registrar therefor by a manual signature. A facsimile of the seal of the authority may be imprinted, or otherwise reproduced, on any securities in lieu of being manually affixed thereto. If after any securities shall be so signed, whether manually or by facsimile, and any officer shall, for any reason, vacate office, the securities so signed may nevertheless be delivered at any time thereafter as the act and deed of the authority.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-14** Securities Payable Out of Revenues from Projects, Properties, Etc., Indenture May Contain Agreements; Liens {#sec-11-101a-14 omnilex-key=us-al-statutes--title-11--11-101A-14}
(a) Securities issued by an authority shall not be general obligations of the authority but shall be payable solely out of the revenues from any project or other properties or assets, including, without limitation, proceeds from the securities, investment income and insurance, and condemnation proceeds, owned by it, all as may be provided or specified in the resolution of the board authorizing the securities or the indenture under which issued. The principal of and interest, and premium, if any, on any securities issued by the authority shall be secured by a pledge of the revenues out of which the same are payable and may be secured by an indenture conveying as security for the securities all or any part of its property, which indenture may be subject to foreclosure.
(b) Any indenture executed on behalf of the authority and any resolution of the board authorizing the issuance of securities may contain such agreements as the board may deem advisable respecting the operation and maintenance of the properties of the authority, the application and use of any revenues out of which any securities are payable, the rights or duties of the parties to the instrument or the parties for the benefit of whom the instrument is made, and the rights and remedies of the parties in the event of default. It may also contain provisions restricting the individual rights of action of the holders of any securities. Any indenture may be filed in the office of the judge of probate of any county in which any of the property, real, personal, or mixed, subject to the lien thereof is, or is anticipated to be, located, and the lien of the indenture shall, with respect to all personal property and fixtures subject thereto, including after-acquired property, and notwithstanding any contrary provisions of, and without compliance with, the Alabama Uniform Commercial Code, Title 7, be valid and binding against all parties having claims of any kind against the authority, irrespective of whether the parties have actual notice thereof, from the time the indenture is so filed. Any pledge of any revenues shall be valid and binding from the time it is made, and the revenues so pledged and thereafter received by the authority shall immediately become subject to the lien of the pledge without any physical delivery thereof or further act. The lien of that pledge shall, notwithstanding any contrary provisions of the Alabama Uniform Commercial Code, Title 7, and without compliance with the provisions thereof, be valid and binding against all parties having claims of any kind against the authority, irrespective of whether the parties have actual notice thereof, from the time there is filed in the office of the judge of probate of the county in which the principal office of the authority is located a notice stating the date on which the resolution authorizing the issuance of the securities was adopted by the board, the principal amount of the securities issued, a brief description of the revenues so pledged, and a brief description of any property the revenues from which are so pledged. Issuance by any authority of one or more series of securities for one or more purposes shall not preclude it from issuing other securities, but the resolution or indenture under which any subsequent securities may be issued shall recognize and protect any prior pledge or mortgage made for the benefit of any prior issue of securities unless in the proceedings authorizing the prior issue the right was reserved to issue subsequent securities on a parity with that prior issue. The trustee under any indenture may be a trust company or bank having trust powers, whether located within or without the state, and may be selected by the board without regard to Chapter 25, Title 36.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-15** Use of Proceeds {#sec-11-101a-15 omnilex-key=us-al-statutes--title-11--11-101A-15}
(a) The principal proceeds derived from any borrowing made by an authority shall be used solely for the purpose or purposes for which the borrowing was authorized to be made. If any securities are issued for the purpose of financing costs of acquiring, constructing, improving, enlarging, and equipping a project, those costs shall be deemed to include the following:
(1) The cost of any land forming a part of the project.
(2) The cost of the labor, materials, and supplies used in any construction, improvement, or enlargement, including architectural and engineering fees and the cost of preparing contract documents advertising for bids.
(3) The purchase price of, and the cost of installing, equipment for the project.
(4) The cost of landscaping the lands forming a part of the project and of constructing and installing roads, sidewalks, curbs, gutters, utilities, and parking facilities in connection therewith.
(5) Legal, accounting, publishing, printing, fiscal and recording fees, and expenses incurred in connection with the authorization, sale, and issuance of the securities issued in connection with the project; bond discount, commission, or other financing charges; fees and expenses of financial advisers and planning and management consultants; the cost of any feasibility studies deemed necessary or advisable in connection with the issuance and sale of the securities; the amount of any debt service reserve that the board deems necessary or advisable to be funded out of the proceeds from the sale of the securities; and any other expenses as shall be necessary or incident to the borrowing.
(6) Interest on the securities for a reasonable period prior to the commencement of the construction and equipment of the project, or of any improvements or additions being financed, in whole or in part, out of the proceeds from the sale of the securities, and during the period estimated to be required for the construction and equipment and for a period of not more than two years after the completion of the construction and equipment.
(7) The reimbursement to itself, or to its general fund or any one or more of its other funds, to any authorizing subdivision or other county or municipality, and to any other public agency, authority, or body, of any funds advanced, to, or for the benefit of, the authority or any projects owned by it, in anticipation of the issuance of securities by the authority, including the amount of any interest paid or incurred on any borrowings made for the purpose of obtaining funds to advance to, or for the benefit of, the authority or the project.
(8) The amount of such reserves for the payment of debt service on any securities and for the maintenance, repair, replacement, improvement, and enlargement of any of its projects and other properties as the board deems advisable.
(b) Any portion of the principal proceeds derived from any borrowing not needed for any of the purposes for which the borrowing was authorized to be made shall be applied and used:
(1) For retirement of the securities issued in evidence of the borrowing.
(2) For payment of the interest thereon.
(3) For payment into one or more special funds created for payment of principal or interest, or both, or for the creation of reserves for the payment of debt service, or for maintenance, repair, replacement, improvement, or enlargement of the project with respect to which the securities were issued.
(4) For any combination thereof, all as shall be specified in the indenture under which the securities are issued or in the resolution of the board authorizing any borrowing.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-16** Obligations Rest with Authority {#sec-11-101a-16 omnilex-key=us-al-statutes--title-11--11-101A-16}
All agreements and obligations undertaken, and all securities issued, by an authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state, any authorizing subdivision, or any other county or municipality within the meaning of any constitutional or statutory provision. The faith and credit of the state, any authorizing subdivision, or any other county or municipality shall never be pledged for the payment of any securities issued by an authority. The state, any authorizing subdivision, or any other county or municipality shall not be liable in any manner for the payment of the principal of, or interest on, any securities of an authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever that may be undertaken by an authority.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-17** Securities Are Legal Investments {#sec-11-101a-17 omnilex-key=us-al-statutes--title-11--11-101A-17}
Securities issued under this chapter are hereby made legal investments for savings banks and insurance companies organized under the laws of the state. Unless otherwise directed by the court having jurisdiction thereof or the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in securities of an authority. The governing body of any authorizing subdivision, or any county or municipality in which any project of an authority may be situated, may, in its discretion, invest in securities of the authority any idle or surplus money held in its treasury which is not otherwise earmarked or pledged.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-18** Exemption from Usury Laws {#sec-11-101a-18 omnilex-key=us-al-statutes--title-11--11-101A-18}
An authority shall be exempt from all laws of the state governing usury or prescribing or limiting interest rates, including, but without limitation to, Chapter 8 (commencing with Section 8-8-1) of Title 8.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-19** Authorization of Securities {#sec-11-101a-19 omnilex-key=us-al-statutes--title-11--11-101A-19}
(a) Any resolution authorizing any securities under this chapter may contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence that the securities have been duly authorized pursuant to this chapter, notwithstanding any other law now in force or hereafter enacted or amended. Upon the adoption by the board of any resolution providing for the issuance of securities, the authority may cause to be published once a week for two consecutive weeks in a newspaper published in the county in which the principal office of the authority is located, or, if there is no newspaper, then in a daily newspaper published in the state, a notice in substantially the following form, with any appropriate changes, to the extent applicable and with the blanks being properly filled in:
” ______________________, a public corporation and instrumentality under the laws of the State of Alabama, has authorized the issuance of $ _____ principal amount of securities of the said authority to be dated _____ for purposes authorized in Chapter 101A of Title 11 of the Code of Alabama 1975. Any action or proceeding questioning the validity of the securities, or the pledge [and any indenture] to secure the same, must be commenced within 20 days after the first publication of this notice.
“By [here insert name of the authority]
“Chair of its Board of Directors”
(b) Any action or proceeding in any court to set aside or question the validity of the proceedings for the issuance of the securities referred to in the notice or to contest the validity of any securities, the validity of any pledge made therefor, or the validity of any indenture with respect thereto shall be commenced within 20 days after the first publication of the notice. After the expiration of that period, no right of action or defense questioning or attacking the validity of the proceedings, the securities, any pledge herein authorized, or any indenture shall be asserted, nor shall the validity of the proceedings, securities, pledge, or indenture be open to question in any court on any ground whatsoever except in an action commenced within that period.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-20** Investments {#sec-11-101a-20 omnilex-key=us-al-statutes--title-11--11-101A-20}
(a) To the extent permitted by the contracts of the authority with the holders of its securities and if not otherwise specifically prohibited by any other provision of this chapter, the authority may invest any portion of the principal proceeds derived from the sale of any of its securities which is not then needed for any of the purposes for which the securities were authorized to be issued, the moneys held in any special fund created pursuant to any resolution or indenture authorizing or securing any of its securities, and any other moneys of the authority not then needed by it, in any of the following:
(1) Federal securities.
(2) Any debt securities that are direct obligations of any agency of the United States of America.
(3) Interest-bearing bank time deposits and interest-bearing bank certificates of deposit.
(4) Money market funds whose investments are restricted to federal securities.
(5) Repurchase agreements with respect to federal securities.
(b) Any securities, time deposits, or certificates of deposit in which any investment is made may, at any time, and from time to time, be sold or otherwise converted into cash. The income derived from those investments shall be disbursed on order of the board for any purpose for which the authority may lawfully expend funds.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-21** Exemption from Taxation {#sec-11-101a-21 omnilex-key=us-al-statutes--title-11--11-101A-21}
All properties of an authority, whether real, personal, or mixed, and the income therefrom, all securities issued by an authority and the income therefrom, and all indentures and other instruments executed as security therefor, all leases made pursuant to this chapter and all revenues derived from such leases, and all deeds and other documents executed by or delivered to an authority shall be exempt from any and all taxation by the state, or by any county, municipality, or other political subdivision of the state, including, but without limitation to, license and excise taxes imposed in respect of the privilege of engaging in any of the activities in which an authority may engage. An authority shall not be obligated to pay or allow any fees, taxes, or costs to the judge of probate of any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document. The gross proceeds of the sale of any property used in the construction and equipment of any project for an authority, regardless of whether the sale is to the authority or any contractor or agent thereof, shall be exempt from the sales tax imposed by Article 1 (commencing with Section 40-23-1), Chapter 23, Title 40, and from all other sales and similar excise taxes now or hereafter levied on or with respect to the gross proceeds of any sale by the state or any county, municipality, or other political subdivision or instrumentality thereof. Any property used in the construction and equipment of any project for an authority, regardless of whether the property has been purchased by the authority or any contractor or agent thereof, shall be exempt from the use tax imposed by Article 2 (commencing with Section 40-23-60), Chapter 23, Title 40, and all other use and similar excise taxes now or hereafter levied on or with respect to any property by the state or any county, municipality, or other political subdivision or instrumentality thereof.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-22** Applicability of Certain Competitive Bidding Provisions {#sec-11-101a-22 omnilex-key=us-al-statutes--title-11--11-101A-22}
Articles 2 (commencing with Section 41-16-20) and 3 (commencing with Section 41-16-50), Chapter 16, Title 41, shall not apply to any authority, the members of its board, or any of its officers or employees.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-23** Public Corporation {#sec-11-101a-23 omnilex-key=us-al-statutes--title-11--11-101A-23}
An authority shall be a public corporation or authority and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event the board shall determine that sufficient provision has been made for the full payment of the expenses, securities, and other obligations of the authority, then any portion, as determined by the board, of the net earnings of the authority thereafter accruing may, in the discretion of the board, be paid to one or more of its authorizing subdivisions.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-24** Dissolution {#sec-11-101a-24 omnilex-key=us-al-statutes--title-11--11-101A-24}
At any time when the authority does not have any securities outstanding, and when there shall be no other obligations assumed by the authority that are then outstanding, the board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the authority shall be dissolved. Upon the filing for record of a certified copy of the resolution in the office of the judge of probate of the county in which the certificate of incorporation of the authority was filed, the authority shall thereupon stand dissolved. In the event that the authority owned any assets or property at the time of its dissolution, the title to all its assets and property shall, subject to any constitutional provision to the contrary, vest in one or more counties or municipalities in such manner and interests as may be provided in the certificate of incorporation. If the certificate of incorporation contains no provision respecting the vesting of title to the assets and property of the authority, title to all assets and property shall, subject to any constitutional provision to the contrary, vest in its authorizing subdivisions as tenants in common.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-25** Effect of Formation or Dissolution on Incorporation of Another Authority {#sec-11-101a-25 omnilex-key=us-al-statutes--title-11--11-101A-25}
The formation or dissolution of one authority shall not prevent the subsequent incorporation of another authority pursuant to the authority granted by one or more of the same authorizing subdivisions.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-26** Authorities Governed Exclusively by Chapter {#sec-11-101a-26 omnilex-key=us-al-statutes--title-11--11-101A-26}
Any authority organized under this chapter shall, insofar as the subject matter of this chapter is concerned, be governed exclusively by this chapter, which shall not be construed in pari materia with any other statute.
*(Act 2001-642, p. 1317, §1.)*
##### **§ 11-101A-27** Construction of Chapter {#sec-11-101a-27 omnilex-key=us-al-statutes--title-11--11-101A-27}
This chapter shall not be construed as a restriction or limitation upon any power, right, or remedy which any county, municipality, or public corporation now in existence or hereafter formed may have in the absence of this chapter. The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws, except to the extent those laws are clearly inconsistent with this chapter.
*(Act 2001-642, p. 1317, §1.)*
### **Chapter 102** Common Service Contracts by Counties and Municipalties
##### **§ 11-102-1** Joint Exercise of Powers or Services Authorized {#sec-11-102-1 omnilex-key=us-al-statutes--title-11--11-102-1}
Except as otherwise provided in this chapter or as otherwise prohibited by law, any county or incorporated municipality of the State of Alabama may enter into a written contract with any one or more counties or incorporated municipalities for the joint exercise of any power or service that state or local law authorizes each of the contracting entities to exercise individually. For purposes of this chapter, it is sufficient if each of the contracting entities has the authority to exercise or perform the power or service which is the subject of the contract regardless of the manner in which the power or service shall be exercised or performed, provided that at least one of the contracting parties has the authority to exercise the power or service in the manner agreed upon by the parties. The joint contract may provide for the power or service to be exercised by one or more entities on behalf of the others or jointly by the entities.
*(Act 98-471, p. 911, §1.)*
##### **§ 11-102-2** Contract Specifications {#sec-11-102-2 omnilex-key=us-al-statutes--title-11--11-102-2}
Any contract entered into pursuant to this chapter shall be in writing. The contract shall specify the duration of the contract, which shall not exceed three years. The parties may renew the contract for another term of not more than three years on the same or amended terms by the same method by which the original contract was adopted. Any party to the contract shall have the power to refuse to renew the contract. The refusal shall not affect the authority of the remaining parties to enter into a contract with each other with the same or similar terms of the original contract as provided in this chapter. The contract shall also specify the purpose of the contract; the method to be used to partially or completely terminate the contract; the method to be used to dispose of any property belonging to the parties as a result of the contract upon termination of the contract; the manner of financing the joint undertaking and of establishing and creating a budget for the undertaking, except that no party to the contract shall have any power to incur any debt which shall become the responsibility of any other contracting party; and any other matter necessary and proper to jointly exercise the contract.
*(Act 98-471, p. 911, §2.)*
##### **§ 11-102-3** Approval of Contract {#sec-11-102-3 omnilex-key=us-al-statutes--title-11--11-102-3}
No contract entered into pursuant to this chapter shall take effect until the contract has been approved by the governing body of each of the contracting municipalities or counties. Approval by a county governing body shall be by adoption of a resolution and approval by a municipal governing body shall be by adoption of an ordinance of general and permanent operation.
*(Act 98-471, p. 911, §3.)*
##### **§ 11-102-4** Implementation {#sec-11-102-4 omnilex-key=us-al-statutes--title-11--11-102-4}
The contracting parties may specify the method or methods which shall be used to implement the contract.
*(Act 98-471, p. 911, §4.)*
##### **§ 11-102-5** Taxing and Zoning Contracts Excepted {#sec-11-102-5 omnilex-key=us-al-statutes--title-11--11-102-5}
Nothing in this chapter shall be construed to authorize the joint exercise of the power to levy taxes or to zone real property. Additionally, nothing in this chapter shall be construed to authorize the joint exercise of the power to tax, the power to exercise planning authority, or the power to zone real property in the unincorporated areas of a county unless authorized by act of the Legislature. Notwithstanding this prohibition, counties and municipalities may contract with each other to zone flood prone areas as mandated by the federal government pursuant to Title 11, Chapter 19.
*(Act 98-471, p. 911, §5.)*
##### **§ 11-102-6** Construction {#sec-11-102-6 omnilex-key=us-al-statutes--title-11--11-102-6}
Nothing in this chapter shall be construed to affect or alter any other law which authorizes joint cooperative power between any public entities and this chapter shall be supplemental to these laws.
*(Act 98-471, p. 911, §6.)*
##### **§ 11-102-7** Performance of Contract {#sec-11-102-7 omnilex-key=us-al-statutes--title-11--11-102-7}
Except as otherwise provided in this chapter and as limited by the contract between the contracting parties, any entity which contracts to perform or exercise any service or power pursuant to this chapter shall have the full power and authority to act within the jurisdiction of all contracting entities to the extent necessary to carry out the purposes of the contract. Each municipality or county which is a party to the contract shall adopt all ordinances, resolutions, or policies necessary to authorize the other contracting entities to carry out their contractual duties and responsibilities.
*(Act 98-471, p. 911, §7.)*
##### **§ 11-102-8** Solid Waste Contracts Excepted {#sec-11-102-8 omnilex-key=us-al-statutes--title-11--11-102-8}
The provisions of this chapter are not applicable to contracts for the collection, transportation, storage, or disposal of solid waste.
*(Act 98-471, p. 911, §8.)*
### **Chapter 103** Credit Card Payments for County and Municipal Services
##### **§ 11-103-1** Authorization of Payment by Credit Cards {#sec-11-103-1 omnilex-key=us-al-statutes--title-11--11-103-1}
(a) The use of credit cards for any payments made to a county or municipal office, department, agency, board, or commission may be authorized by the county commission or municipal governing body in which the office, department, agency, board, or commission is located as provided in Section 11-103-2, and if authorized, shall be accepted pursuant to rules and regulations promulgated by the county commission or municipal governing body in which the office, department, agency, board, or commission is located. The rules and regulations shall include specific procedures for the acceptance of credit card payments, including, but not limited to, provision for the payment of any discount or administrative fee charged by the credit card issuer or processor. The county or municipal governing body is authorized, but not required to impose the assessment of a surcharge or convenience fee from the person paying by credit card in an amount not greater than the transaction fee charged by the credit card issuer or processor. If no such election is made, the county or municipal governing body may withhold the cost of any discount or administrative fee charged by the credit card issuer or processor from each governmental entity entitled to the proceeds from the payment made by the credit card issuer. In this event, each governmental entity shall be assessed the percentage of the cost equivalent to its pro rata share of the payment.
(b) Except as otherwise provided, this chapter shall be construed to allow acceptance of credit card payments of any types of amounts payable to a county or a municipality as authorized by the county commission or municipal governing body, including, but not limited to, taxes, license and registration fees, fines, and penalties. For purposes of this chapter, the term “credit card” shall include credit cards, charge cards, and debit cards issued by any bank, foreign lender, domestic lender, or credit card bank as defined in Section 5-20-3.
*(Act 2000-154, p. 219, §1; Act 2000-314, p. 483, §1.)*
##### **§ 11-103-2** Agreements with Credit Card Issuers, Etc {#sec-11-103-2 omnilex-key=us-al-statutes--title-11--11-103-2}
The county commission or municipal governing body may enter into appropriate agreements with one or more credit card issuers or other appropriate parties as needed to facilitate the acceptance of credit card payments, provided that no agreement may provide for the receipt of payments at a discount from the amount that would be owed were credit cards not accepted for the payment or withholding of administrative fees from the actual amount of the payments. Except as otherwise specifically provided, the provisions of the competitive bid law found in Section 41-16-1 et seq., shall not apply to the agreements between the county commission or municipal governing body and credit card issuers or processors. Any agreement shall provide that it may be canceled without penalty at any time by the county commission or municipal governing body upon reasonable notice. No agreement shall exceed three years as provided in Section 41-16-27.
*(Act 2000-154, p. 219, §2; Act 2000-314, p. 483, §1.)*
##### **§ 11-103-3** Liability for Final Payment {#sec-11-103-3 omnilex-key=us-al-statutes--title-11--11-103-3}
(a) When a party elects to make a payment to a county or municipal agency, office, department, board, or commission by credit card and a surcharge or convenience fee is imposed, the payment of the surcharge or convenience fee shall not be refundable.
(b) No person making payment to any county or municipal agency, office, department, board, or commission by credit card shall be relieved from liability for the face amount of the payment except to the extent that the county or municipal agency, office, department, board, or commission realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the credit card issuer or other guarantor of payment in the credit card transaction, the underlying obligation shall survive and the county or municipal agency, office, department, board, or commission shall retain all remedies for enforcement which would have applied if the credit card transaction had not occurred. No contract may modify the provisions of this subsection.
(c) A county or municipal agency, office, department, board, or commission officer or employee who accepts a credit card payment in accordance with this chapter and any applicable policies, rules, or regulations of a county commission or a municipal governing body shall not thereby incur any personal liability for the final collection of such payments.
*(Act 2000-154, p. 219, §3; Act 2000-314, p. 483, §1.)*
##### **§ 11-103-4** Acceptance of Credit Cards by Individual Offices, Agencies, Etc {#sec-11-103-4 omnilex-key=us-al-statutes--title-11--11-103-4}
If a county governing body has authorized the use of credit cards and has entered into an agreement with one or more credit card issuers or processors, each office or agency within a county may elect whether or not to accept credit card payments in its office or agency, and may establish its own policies and procedures for acceptance of any credit cards permitted within the county pursuant to an agreement executed under Section 11-103-2. No office or agency shall be required to accept credit card payments, and may elect which credit cards to accept, provided that the county governing body has executed an agreement with the credit card issuer or processor. If an office or agency within the county desires to accept a credit card issued or processed by a company with which the county governing body does not have an agreement under Section 11-103-2, the office or agency may petition the governing body to execute an agreement with that credit card issuer or processor; provided, however, that the county governing body shall not be required to execute an agreement with any credit card issuer or processor that will not agree to the terms and conditions required by the county governing body and by this chapter.
*(Act 2000-154, p. 219, §4; Act 2000-314, p. 483, §1.)*
##### **§ 11-103-5** Applicability {#sec-11-103-5 omnilex-key=us-al-statutes--title-11--11-103-5}
Except where otherwise provided by local law, this chapter shall apply in any county or municipality where credit cards are accepted for any payments made to a county or municipal office, department, agency, board, or commission.
*(Act 2000-154, p. 219, §5; Act 2000-314, p. 483, §1.)*
### **Chapter 104** Post-Employment Benefits Act of 2008
##### **§ 11-104-1** Short Title {#sec-11-104-1 omnilex-key=us-al-statutes--title-11--11-104-1}
The name of this chapter is the Post-Employment Benefits Act of 2008.
*(Act 2008-503, p. 1109, §1.)*
##### **§ 11-104-2** Definitions {#sec-11-104-2 omnilex-key=us-al-statutes--title-11--11-104-2}
As used in this chapter, the following terms shall have the following meanings:
(1) DEPENDENTS. The spouse, children, or other dependents of the retired employee, as defined by and covered under the documents governing the governmental entities’ benefit plans that provide post-employment benefits.
(2) EMPLOYEE. Any person who is an employee of any governmental entity located in the state who may become eligible for post-employment benefits from the governmental entity.
(3) EMPLOYER. Any governmental entity that sponsors, in whole or in part, post-employment benefits.
(4) FISCAL YEAR. The annual period at the end of which a governmental entity determines its financial condition.
(5) GASB. The Governmental Accounting Standards Board.
(6) GOVERNMENTAL ENTITY. Any political subdivision of the state, any department, agency, board, commission, or authority of any such political subdivision, or any public corporation, authority, agency, instrumentality, board, commission, state college, university, or other governmental entity controlled by or otherwise associated with any political subdivision.
(7) POST-EMPLOYMENT BENEFITS. Non-pension benefits sponsored in whole or in part by a governmental entity and paid in whole or in part by a governmental entity on behalf of retired employees or their dependents after separation from service in accordance with the terms of the relevant plan providing such benefits. Such benefits include, but are not limited to, medical, dental, vision, and prescription drug benefits; life insurance; long-term health care benefits; disability benefits and any other benefits as may now or hereafter be defined by GASB as subject to Statements 43 and 45, or similar statements, as may be amended from time to time.
(8) RETIRED EMPLOYEE. A former employee of a governmental entity who is eligible for post-employment benefits from the governmental entity.
(9) STATE. The State of Alabama.
(10) TRUSTEE. The trustee of a trust.
(11) TRUST. Any single-employer or multiple-employer trust or fund established for the purpose of funding post-employment benefits and includes, but is not limited to, an Internal Revenue Code Section 115 trust, 26 U.S.C. §501(c)(9) trust, also known as a Voluntary Employee Benefits Association trust, or 26 U.S.C. §401(h) fund.
*(Act 2008-503, p. 1109, §2.)*
##### **§ 11-104-3** Establishment of Trust or Participation in Multiple-Employer Trust; Management and Control; Taxation; Validity; Termination {#sec-11-104-3 omnilex-key=us-al-statutes--title-11--11-104-3}
(a) A governmental entity may adopt an ordinance, bylaw, or resolution allowing for the establishment of a trust, or for the establishment of participation in a multiple-employer trust with other governmental entities, for the sole purpose of funding post-employment benefit obligations. The governmental entity may adopt such ordinance, bylaw, or resolution through voting procedures and requirements currently utilized by the governmental entity which are in accordance with state law.
(b) Any trusts created pursuant to this chapter shall be evidenced by a written trust instrument, the terms and conditions of which shall be determined by and between the governmental entity or entities and the applicable trustee, so long as such terms and conditions do not conflict with this chapter. Each trust shall be managed and controlled by its respective governmental entity or entities and trustee pursuant to the terms of the written trust agreement.
(c) All assets and income of any trusts shall be exempt from taxation by the state or any political subdivision thereof. Distributions from the trusts will not be taxable income to the retired employees or their dependents under state law or other local law. The assets of the trusts will not be subject to the claims of creditors of the governmental entities, trustees, plan administrators, employees, retired employees, or dependents, and will not be subject to execution, attachment, garnishment, the operation of bankruptcy, the insolvency laws, or other process whatsoever, nor shall any assignment thereof be enforceable in any court.
(d) A trust created pursuant to this chapter shall not be deemed to be invalid by reason of any indefiniteness or uncertainty of the persons designated as beneficiaries in the agreements creating the trusts, nor shall they be deemed to be invalid as violating any existing law against perpetuities or against suspension of the power of alienation of title to property or against trusts for the purpose of the accumulation of income; but each trust may continue for such time as may be necessary to accomplish the purpose for which it was created.
(e) A single-employer trust may be terminated by the governmental entity if the governmental entity’s plans or programs providing post-employment benefits for which the trust is established are repealed or terminated, and there is no future obligation of the governmental entity to provide such post-employment benefits. A multiple-employer trust may be terminated, or a governmental entity may terminate its affiliation with a multiple-employer trust, under the aforementioned circumstances pursuant to the terms of the written trust agreement. Also, any trust may be terminated if GASB adopts new requirements that eliminate or alter the funding of post-employment benefits.
*(Act 2008-503, p. 1109, §3.)*
##### **§ 11-104-4** Trustees {#sec-11-104-4 omnilex-key=us-al-statutes--title-11--11-104-4}
(a) A governmental entity or entities may retain as a trustee any financial institution, committee, association, person, or persons which it deems capable, competent, experienced, and appropriate for serving in such capacity.
(b) The powers and duties of the trustee shall be evidenced in and determined by the written trust agreement between the trustee and the governmental entity or entities.
(c) The trustee shall cause the annual financial statements of the trust to be prepared in accordance with generally accepted accounting principles and an audit by a qualified independent certified accounting firm to be conducted of those financial statements of each respective trust for each fiscal year in accordance with generally accepted auditing standards.
(d) Reasonable trustee fees and the reasonable expenses of holding, making, and disposing of investments, such as brokerage commissions, legal expenses referable to a particular transaction, transfer taxes, and other customary transactional expenses with respect to a trust may be payable out of the funds of such trust, if so allowed by the written trust agreement.
*(Act 2008-503, p. 1109, §4.)*
##### **§ 11-104-5** Funding; Trust Investments {#sec-11-104-5 omnilex-key=us-al-statutes--title-11--11-104-5}
(a) Subject to any limitations necessary to ensure the tax-exempt status of a trust, the sources of funding to a trust may be any of the following:
(1) Appropriations made by the governmental entity.
(2) Contributions by employees and retired employees.
(3) Employer contributions.
(4) Investment income.
(5) Proceeds of any gifts, grants, or contributions.
(6) Transfers from another trust or fund held by a governmental entity.
(7) Bonds, warrants, notes, or other evidence of indebtedness.
(8) All other sources permitted by law.
(b) Subject to payment for fees and reasonable expenses of maintaining a trust, the funds deposited into a trust shall be used for the exclusive purpose of funding post-employment benefit obligations of the governmental entity or entities. The agreements creating a trust shall be irrevocable, subject to subsection (e) of Section 11-104-3 and Section 11-104-8, and the assets of a trust shall not be expended, disbursed, loaned, transferred, or used for any purpose other than to acquire investments, pay reasonable administrative expenses, and provide post-employment benefits to or for retired employees and their dependents. The Legislature may not appropriate the assets of any trust.
(c) The governmental entity or entities may retain, in addition to the trustee, the appropriate administrative and professional services, including, but not limited to, actuaries, attorneys, and investment consultants, to properly maintain a trust and manage and invest the assets held in a trust. The reasonable administrative expenses associated with these services may be paid from the assets of the trust, if so allowed by the written trust agreement.
(d) The trust investments shall be governed by an asset allocation strategy that emphasizes the long-term funding of the trust while investing the assets for the highest investment rate of return consistent with acceptable levels of risk and the actuarially assumed rate of return that is established by the trust’s actuary. These investments may include, but are not limited to, stocks, bonds, and various alternative assets, including real estate, hedge funds, and commodities. With respect to each trust that is created, an investment policy guiding the investment of such trust’s assets, consistent with this subsection and all other provisions of this chapter, shall be established.
*(Act 2008-503, p. 1109, §5.)*
##### **§ 11-104-6** Applicability of Chapter {#sec-11-104-6 omnilex-key=us-al-statutes--title-11--11-104-6}
Nothing in this chapter shall be construed to define or otherwise grant any right or privilege to post-employment benefits or any other benefits to any person other than those post-employment benefits, rights, and privileges previously or already granted to employees, retired employees, and their dependents by each governmental entity’s post-employment benefit plans, if any. Such rights and privileges shall be governed by the terms of the governmental entity’s benefit plans, if any. This chapter is not intended to assure or deny any existing or future employee, retired employee, any of their dependents, or any other person of any right of employment or entitlement to any post-employment benefit or limit or otherwise restrict the ability of the governmental entity to modify or eliminate any existing or future benefit or post-employment benefit.
*(Act 2008-503, p. 1109, §6.)*
##### **§ 11-104-7** Construction with Other Laws {#sec-11-104-7 omnilex-key=us-al-statutes--title-11--11-104-7}
It is the intent of the Legislature that, to the extent a governmental entity or entities establishes a trust, that it be operated in compliance with the Internal Revenue Code 26 U.S.C., as amended, in a manner which would allow the trust to maximize investment earnings while minimizing the costs to the governmental entities and their employees. The trusts shall not be subject to any current or future provision of a law, rule, ordinance, or resolution of the state, municipality, city, town, county, agency, or instrumentality thereof which conflicts with this legislative intent or would prevent or unreasonably hinder the accomplishment of the purposes of this chapter. This chapter shall be read as separate and apart from, and not in conflict with or subject to, the provisions of Amendment No. 623 of the Constitution of Alabama of 1901, now appearing as Section 228.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.
*(Act 2008-503, p. 1109, §7.)*
### **Chapter 105** Tourism Promotion and Development Authorities
##### **§ 11-105-1** Formation of Public Authority {#sec-11-105-1 omnilex-key=us-al-statutes--title-11--11-105-1}
Any one or more municipalities or counties, or any combination thereof, by resolution of the governing body of each participating municipality or county, may elect to form a public authority for the purpose of promoting and developing tourism in the geographic area to be served by the authority. The authority shall be vested with the powers provided by this chapter.
*(Act 2011-692, p. 2116, §1.)*
##### **§ 11-105-2** Designation of Tourism Promotion and Development District {#sec-11-105-2 omnilex-key=us-al-statutes--title-11--11-105-2}
A public authority established pursuant to this chapter shall designate a tourism promotion and development district which may be comprised of part or all of the corporate limits of any participating municipality and all or part of the unincorporated areas of any participating county. The governing body of each municipality and each county participating in the formation of the authority shall state in its authorizing resolution or by separate resolution the geographic area within its corporate limits that shall comprise the tourism promotion and development district.
*(Act 2011-692, p. 2116, §2.)*
##### **§ 11-105-3** Powers of Authority {#sec-11-105-3 omnilex-key=us-al-statutes--title-11--11-105-3}
(a) A public authority established pursuant to this chapter may conduct programs and events, including, but not limited to, programs of information and publicity and public events to attract tourists to geographic areas served by the authority. The authority may conduct programs or events in Alabama and elsewhere and expend its funds in the furtherance of such programs and events in Alabama and elsewhere.
(b) The authority may enter into contracts with a person, firm, corporation, or association to carry out the purposes set forth herein. No contract entered into by the authority shall bind the State of Alabama or any county or municipality of the State of Alabama.
(c) The authority shall have all of the following powers:
(1) To sue and be sued.
(2) To own, lease, license, operate, purchase, acquire, hold, improve, develop, manage, sell, convey, transfer, exchange, release, and dispose of, either alone or in conjunction with others, real and personal property, tangible and intangible, of every kind, character, and description.
(3) To have a seal and alter the seal as necessary or appropriate.
(4) To appoint officers, agents, employees, attorneys, and accountants and fix their compensation.
(5) To make bylaws for the management and regulation of the authority’s affairs, including the appointment of committees, upon resolution of the board of directors of the authority.
(6) To enter into contracts and execute all instruments necessary or convenient to lease, purchase, and own real or personal property used in furtherance of the purposes for the accomplishment of which the authority is created.
(7) To accept or receive gifts, bequests, devises, and all other types of funds, both public and private, regardless of the source, subject to all applicable laws, and to expend all such funds to carry out the purposes of this chapter.
(8) To provide funds directly or indirectly to third parties in connection with any public program, event, or advertising campaign to carry out the purposes herein stated.
(9) To borrow money, execute notes, and other evidence of indebtedness which may be required by the lender, and pledge anticipated revenue or income to secure payment of loans.
(10) To do all things necessary or convenient to carry out the powers expressly given herein.
(d) The authority shall not have the power of eminent domain.
*(Act 2011-692, p. 2116, §3.)*
##### **§ 11-105-4** Board of Directors {#sec-11-105-4 omnilex-key=us-al-statutes--title-11--11-105-4}
(a) The affairs of the authority shall be managed by a board of directors, hereinafter called the board, which shall consist of the following: At least one and not more than five board members representing each incorporated municipality located within the defined tourism promotion and development district and not more than two board members from any unincorporated area included in the tourism promotion and development district, except that the number of board members from the unincorporated area of the tourism development district may be increased to not more than four board members by a two-thirds majority vote of the then existing board members of the authority.
(b) The number of board members representing each municipality included in the tourism promotion and development district shall be computed as follows:
(1) One board seat for each seventy thousand dollars ($70,000) of annual lodging tax collections collected within the municipality. The minimum board seats per municipality shall be one and the maximum board seats per municipality shall be five.
(2) The board members representing the incorporated municipalities shall be appointed by the governing body of their respective municipality. The board members shall not be required to reside within any municipality or the tourism promotion and development district. The initial board member terms shall be one each for a one, two, and three-year term. In the event there are more than three board members representing any incorporated municipality, each additional board member shall be appointed for a three, two, or one-year initial term in the order the additional board member is appointed. Subsequent appointments shall be for a term of three years. No board member representing any incorporated municipality shall serve longer than the initial term of the board member plus two consecutive three-year terms.
(3) Appointed board members shall represent the following from within their respective municipality:
a. No more than one board member from each municipality may be a member of the elected body of the municipality.
b. No more than two board members from each municipality may be engaged in the lodging business within the tourism promotion and development district.
c. No more than two board members from each municipality may be engaged in a business within the tourism promotion and development district, other than a lodging business, whose customers or clients are primarily tourists or visitors.
d. Any other board members from each municipality shall have a background and experience in a tourist-related industry or attraction, in the field of marketing, advertising, or public relations, or other field or industry directly related to the purposes for which the authority is created and established.
(c) The number of board members representing any unincorporated area of the defined tourism promotion and development district shall be determined as follows:
(1) There shall be two board members from the unincorporated area of the tourism promotion and development district, except that the number of board members from the unincorporated area of the tourism promotion and development district may be increased to not more than four board members by a two-thirds majority vote of the then existing board members of the authority.
(2) The board members representing the unincorporated area of the defined tourism promotion and development district shall be appointed by a majority vote of the members of the county commission of the county in which the unincorporated area is located. The board members shall be required to reside within the county. The initial board member terms shall be one each for a two and three-year term. Subsequent appointments shall be for a term of three years. No board member representing the unincorporated area of the tourism promotion and development district shall serve longer than the initial term of the board member plus two consecutive three-year terms. At least one of the board members shall be engaged in either the lodging business or a major tourist attraction within the unincorporated area. Any additional board members representing the unincorporated area of the tourism promotion and development district that may be appointed pursuant to subdivision (1) of this subsection shall have a background and experience in a tourist-related industry or attraction, in the field of marketing, advertising, or public relations, or other field or industry directly related to the purposes for which the authority is created and established.
(3) Board members whose terms have expired shall continue to serve until either replaced or reappointed by the appropriate governing body.
(4) The members of the board shall serve without compensation, but they may be reimbursed for actual expenses incurred in the performance of their duties for the authority.
*(Act 2011-692, p. 2116, §4.)*
##### **§ 11-105-5** Powers of Board {#sec-11-105-5 omnilex-key=us-al-statutes--title-11--11-105-5}
(a) The power of the authority shall be vested in and exercised by the board of directors pursuant to this chapter.
(b) The board may employ agents, employees, officers, consultants, attorneys, and secure services and assistance the board deems necessary to enable it to conduct and engage in the activities and purposes for which the authority is created.
(c) The board may delegate to one or more of its members, employees, agents, or officers, the duties it deems proper.
(d) The board shall elect a chair and a treasurer, and may elect a vice chair of the board who shall serve as chair in the event of the absence of the chair, and a secretary. One person may serve as treasurer and secretary. The treasurer and secretary may, but need not be, a member of the board.
(e) The board shall provide by resolution for the dates on which the chair, vice chair, treasurer, secretary, or any other officers shall be elected, which resolution shall also specify the term or period for which each of the offices shall serve.
(f) The treasurer shall act as custodian of all funds from whatever sources derived received by the authority.
(g) The treasurer of the board shall execute a fidelity bond with a company authorized to write bonds in the State of Alabama being surety thereon, which bond shall be in an amount approved by the board.
(h) Contracts of the authority shall be executed in the name of the authority by the chair of the board and attested by the secretary of the board. The board, by resolution, may provide for a different form for the execution of contracts and for the execution by an officer or agent other than the chair and secretary. In no event may a contract, irrespective of its form and of the persons executing it, be binding unless the contract was authorized or ratified by the board.
(i) Any member of the board may be removed without cause upon a two-thirds majority vote of the then existing board members of the authority.
*(Act 2011-692, §5.)*
### **Chapter 106** Military Land Use Planning
##### **§ 11-106-1** Short Title {#sec-11-106-1 omnilex-key=us-al-statutes--title-11--11-106-1}
This chapter shall be known and may be cited as the Military Land Use Planning Act.
*(Act 2014-13, p. 44, §1.)*
##### **§ 11-106-2** Legislative Findings {#sec-11-106-2 omnilex-key=us-al-statutes--title-11--11-106-2}
The Legislature finds, determines, and declares that it is desirable for local governments in the state to cooperate with military installations located within the state in order to encourage compatible land use, help prevent incompatible urban encroachment upon military installations, and facilitate the continued presence of major military installations within the state.
*(Act 2014-13, p. 44, §1.)*
##### **§ 11-106-3** Definitions {#sec-11-106-3 omnilex-key=us-al-statutes--title-11--11-106-3}
As used in this chapter, the following words have the following meanings:
(1) ADVERSE IMPACT ON MILITARY OPERATIONS AND READINESS. The same meaning as provided in 10 U.S.C. § 183a(h), and consistent with DoD Instruction 4180.02.
(2) DEPARTMENT OF DEFENSE SITING CLEARINGHOUSE. The Military Aviation and Installation Assurance Siting Clearinghouse of the Department of Defense, as established by 10 U.S.C. § 183a.
(3) LOCAL GOVERNMENT. Any county or municipality.
(4) LOCAL IMPACT ISSUE. Any adoption or amendment by a local government of a proposed zoning plan, comprehensive master plan, or land development regulations that, if approved, may or will significantly affect any area or airspace that is within two miles of a military installation.
(5) MILITARY INSTALLATION. Any base, camp, post, station, airfield, yard, center, or any other land area under the jurisdiction of the United States Department of Defense, including any leased facility. The term does not include any facility used primarily for civil works, river projects, or flood control projects.
(6) NOTICE OF PRESUMED RISK. The notice provided by the Department of Defense Siting Clearinghouse to an owner of an energy facility pursuant to 10 U.S.C. § 183a(c)(2).
(7) TALL STRUCTURE. Any building, structure, or unit within a multiunit building with a vertical height of more than 200 feet measured from the top of the foundation of the building, structure, or unit to the uppermost point of the building, structure, or unit. The term does not include: wind energy facilities, electrical transmission towers, slender structures, or minor vertical projections of a parent building, including, but not limited to, chimneys, flagpoles, flues, spires, steeples, belfries, cupolas, antennas, poles, lines, or wires, except that no such structure or vertical projection may project more than 20 vertical feet above the parent building. The term also does not include any communications structures requiring antenna structure registration pursuant to 47 C.F.R. § 17.4.
(8) WIND ENERGY FACILITY. Facilities for the generation of electricity by wind power.
*(Act 2014-13, p. 44, §1; Act 2021-114, §1; Act 2025-139, §1.)*
##### **§ 11-106-4** Notification of Local Impact Issues {#sec-11-106-4 omnilex-key=us-al-statutes--title-11--11-106-4}
(a) Each local government whose territorial boundaries are within two miles of any portion of a military installation shall provide written notice to the military installation’s commanding officer and the flying mission commanding officer if applicable, or their designees, of any local impact issue.
(b) Prior to approving any proposed tall structure or wind energy facility, the local government shall follow the requirements of Section 11-106-6.
*(Act 2014-13, p. 44, §1; Act 2021-114, §1; Act 2025-139, §1.)*
##### **§ 11-106-5** Review by Military Installation, Submission of Comments; Effects on Local Government {#sec-11-106-5 omnilex-key=us-al-statutes--title-11--11-106-5}
(a) Upon submission of the information required by Section 11-106-4 about a local impact issue, the military installation shall have 30 calendar days before any final action is taken or any public hearing is held about the issue. During that time the military installation may review the information and submit comments to the local government on the impact of the issue upon the mission of the military installation. The comments may include any of the following:
(1) If the military installation has an airfield, whether the local impact issue will be compatible with the safety and noise standards contained in the air installation compatible use zone recommended by the United States Department of Defense for that airfield.
(2) Whether the local impact issue is compatible with the installation environmental noise management program of the military installation.
(3) Whether the local impact issue is compatible with any joint land use study for the area within which the changes are to take place, if such study has been completed.
(4) Whether the military installation’s mission will be adversely affected by the local impact issue.
(b) The local government shall review any comments received from the commanding officer or the flying mission commanding officer, or their designees, pursuant to this section when considering approval of the local impact issue.
(c) Notwithstanding any other provision of this chapter, nothing in this section shall be construed to require a local government to amend its zoning rules, comprehensive plan, or land development regulations in effect as of February 18, 2014, in order to satisfy the requirements of this section.
(d) No provision of this chapter shall be construed to confer additional powers or expand existing powers of any local government over zoning, planning, or land use.
(e) If an existing joint land use study exists between any local governmental body and a military installation, this chapter shall not be construed to supersede the provisions of that existing agreement.
*(Act 2014-13, p. 44, §1.)*
##### **§ 11-106-6** Encroachment or Adverse Effect Upon Military Operations, Etc.; Application and Documentation Requirements; Approval by Local Government {#sec-11-106-6 omnilex-key=us-al-statutes--title-11--11-106-6}
(a) The construction or operation of any tall structure or wind energy facility in this state shall not encroach upon or otherwise have an adverse impact on military operations and readiness of any military installation or branch of military.
(b) A person may not commence the construction of a tall structure within two miles of a military installation unless the person has obtained approval from the governing body of the local government in which the tall structure will be located as further provided in this section.
(c) A governing body of a local government shall approve an application to commence construction of a tall structure within two miles of a military installation once the applicant has filed an application with the Federal Aviation Administration under 49 U.S.C. § 44718, and provided the governing body of the local government either of the following:
(1) A written “Determination of No Hazard to Air Navigation” issued by the Federal Aviation Administration pursuant to 14 C.F.R. Part 77, Subpart D.
(2) In coordination with any affected military installation and the state Military Department, a written determination resolving any adverse impact to military operations identified during the aeronautics study conducted pursuant to 14 C.F.R. Part 77, Subpart D.
(d) A local government may bring an action for injunctive relief against any person that commences the construction of a tall structure without obtaining prior approval as required pursuant to this section.
(e) A local government considering an application for the construction of a wind energy facility shall require the applicant to provide the following at least 270 days prior to planned construction:
(1) Documentation that the owner or applicant has transmitted notice relating to the construction of the wind energy facility to the Department of Defense Siting Clearinghouse, the state Military Department, and the state Department of Transportation.
(2) A map showing the specific location and tower hub height with rotor diameter for each proposed wind turbine.
(3) Documentation that the facility owner has either initiated an informal review with the Department of Defense Siting Clearinghouse under 32 C.F.R. § 211.7 or filed for a formal review with the Secretary of Transportation and the Federal Aviation Administration pursuant to 49 U.S.C. § 44718.
(f) A local government may not approve an application for the construction of a wind energy facility prior to receiving documentation of one of the following:
(1) A completed Department of Defense Siting Clearinghouse informal review resulting in a determination of no presumed risk.
(2) A mitigation agreement between the owner or applicant and the Department of Defense Siting Clearinghouse resolving any notice of presumed risk.
(3) A written “Determination of No Hazard to Air Navigation” issued by the Federal Aviation Administration pursuant to 14 C.F.R. Part 77, Subpart D.
(g) Notwithstanding subsection (f), a local government may approve an application for the construction of a wind energy facility conditioned upon the applicant providing documentation of one of the requirements set out in subsection (f).
(h) If any dispute arises between a local government and an applicant or military installation relating to the approval of any tall structure or wind energy facility, the local government shall provide notice to the Governor or the Governor’s designee to facilitate resolution of the dispute.
(i) A local government may not require any other formal written approval from a military installation to approve an application for the construction of a tall structure or wind energy facility.
*(Act 2021-114, §2.; Act 2025-139, §1)*
### **Chapter 107** Local Building Codes
##### **§ 11-107-1** Adoption or Enforcement of Building Codes Requiring the Installation of Certain Latent, Non-operable Features in a Residential Structure Prohibited {#sec-11-107-1 omnilex-key=us-al-statutes--title-11--11-107-1}
(a) For the purposes of this section, the following terms have the following meanings:
(1) LATENT FEATURE. Any technology, appliance, electrical circuit, wiring, plumbing, gas tubing, framing, or other item, installed in or connected to a residential structure, that will not be placed in a state of active operation or that will not be utilized by the homeowner at the time of the residential structure’s completion. The term only includes features that do not contribute to the life safety or structural aspects of the building code being enforced.
(2) RESIDENTIAL STRUCTURE. A residence on a single lot, including a site-built home, a condominium, duplex, apartment, or any other single-unit or multi-unit residential building.
(b) The governing body of any municipality or county, or any agency thereof, may not directly or indirectly adopt or enforce any ordinance, rule, bylaw, order, or state or local building code provision requiring the installation of any latent feature in any residential structure.
*(Act 2023-74, §1.)*
##### **§ 11-107-2** Healthier Homes Construction Practices {#sec-11-107-2 omnilex-key=us-al-statutes--title-11--11-107-2}
(a) This section shall be known and may be cited as the Healthier Homes Construction Practices Act.
(b) The Legislature finds and declares that indoor air quality in homes under construction is of prime importance for the long-term durability of the home and health of the consumer. It is the intent of the Legislature to address the following issues related to the lack of temporary-permanent electricity and temporary-permanent gas:
(1) Mold build-up due to temperature and humidity within the structure.
(2) Component damage due to temperature and humidity.
(3) Warping and disfigurement of wood within the structure due to temperature and humidity.
(c) Any municipality or county that adopts and enforces building codes shall enact a procedure allowing for the installation and activation, on a temporary basis in accordance with the requirements of this section, of electricity (“temporary-permanent electricity”) or gas (“temporary-permanent gas”) in any dwelling, covered by the scope of the International Residential Code, under construction in its jurisdiction.
(d) The municipality or county may require any of the following to occur prior to the installation or activation of temporary-permanent electricity:
(1) The structure be secured from unauthorized entry.
(2) The electrical service code be compliant and complete.
(3) All rough plumbing, electrical, mechanical, and framing inspections be completed and approved.
(4) All drywall be installed, with the exception of finishing.
(5) All electrical circuit wires that are not energized be secured to the side of the panel box.
(6) Any exterior outlet which has been energized have ground fault breakers installed. A minimum of one exterior outlet shall be provided.
(7) All electrical service be ready for service, as certified by a state licensed electrical contractor.
(8) All heating and cooling equipment be installed in-structure. Equipment shall be vented based on manufacturing specifications. Forced air equipment shall have a return air with a MERV 4 filter, and plenum and supply air.
(9) The building permit be obtained by a licensed residential home builder, as defined by Section 34-14A-2, or a general contractor.
(10) A request for temporary-permanent electricity be made by the permittee.
(11) The electrical service be obtained in the name of the permittee.
(12) Compliance with any requirements set forth by the provider of electricity.
(e) In addition to any requirement for the installation or activation of temporary-permanent electricity under subsection (d), any municipality or county that enforces and adopts building codes may require any of the following prior to the installation or activation of temporary-permanent gas:
(1) The structure be secured from unauthorized entry.
(2) A gas line be installed in accordance with applicable codes between the heating equipment and the gas meter location.
(3) Gas lines not connected to an appliance be capped.
(4) A temporary pressure test be performed for the purposes of installing temporary gas for heat.
(5) A final pressure test be performed for permanent gas service.
(6) Gas service be certified by a licensed gas fitter as being ready for service.
(7) Heating and cooling equipment be installed in-structure and be vented based on manufacturing specifications.
(8) Forced air equipment have a return air with a MERV 4 filter, and plenum and supply air.
(9) A building permit be obtained by a licensed residential home builder, as defined by Section 34-14A-2, or general contractor.
(10) A request for temporary-permanent gas be made by the permittee.
(11) Electrical service be obtained in the name of the permittee.
(12) Proof that the gas system is complete, is code compliant, and has passed all required inspections.
(13) Compliance with any other requirements of the provider of gas.
(f) For the installation or activation of temporary-permanent electricity or temporary-permanent gas, no additional requirements may be placed on the contractor beyond the requirements of this section.
(g) Any structure granted temporary-permanent electricity or temporary-permanent gas pursuant to this section shall not be occupied, and permanent electricity or permanent gas shall be permitted only upon proof that all required final inspections by the municipality or county have been completed.
(h) Where sewer service is not available, a request for temporary-permanent electricity or temporary-permanent gas must be accompanied by copies of all septic system plans and permits, approved by the local health department.
*(Act 2023-166, §1.)*
##### **§ 11-107-3** Building Code Exemption for Nonprofit Veterans’ Organization That Acquires Interest in State Armory Building {#sec-11-107-3 omnilex-key=us-al-statutes--title-11--11-107-3}
(a) As used in this section, “nonprofit veterans’ organization” means any nonprofit organization that has a tax-exempt status under 26 U.S.C. § 501(c)(3) and, as its primary purpose, supports veterans and active duty servicemembers, as defined pursuant to 50 U.S.C. § 3911, and their dependents.
(b) Notwithstanding any law to the contrary, when a nonprofit veterans’ organization, by means of a reversionary clause in a deed, acquires a possessory interest in a state armory building, with the intent to use the facility to further the organization’s support of veterans, active duty servicemembers, and their dependents, the building shall be exempt from compliance with any applicable state or local building codes for not less than 10 calendar years from the date of acquisition.
*(Act 2023-175, §1.)*
##### **§ 11-107-4** Use of Certain Refrigerants and Refrigerant-Equipped Products in Compliance with the National Clean Air Act {#sec-11-107-4 omnilex-key=us-al-statutes--title-11--11-107-4}
(a) No provision of the state building code, or any municipal or county building code, or any other law or rule, may prohibit or otherwise limit the use of a substitute refrigerant or substitute refrigerant-equipped product that complies with the National Clean Air Act pursuant to 42 U.S.C. § 7671k and regulations adopted thereunder.
(b) Any heating, ventilation, air conditioning, or refrigeration equipment containing a refrigerant described in subsection (a) shall be listed and installed in accordance with all applicable safety standards and use conditions imposed pursuant to the designation.
*(Act 2023-276, §1.)*
##### **§ 11-107-5** Applicability of Alabama Residential Building Code {#sec-11-107-5 omnilex-key=us-al-statutes--title-11--11-107-5}
(a) A local building code adopted or amended by any county or municipality after January 1, 2027, shall meet the minimum standards of the Alabama Residential Building Code adopted by the Home Builders Licensure Board pursuant to Article 2 of Chapter 14A of Title 34 in effect at the time of the local building code adoption or amendment and shall not exceed the energy provisions of the Alabama Residential Building Code, unless compliance with any federal mandate requires such adoption or amendment.
(b) A county commission or municipality shall provide to the board a copy of any resolution, ordinance, or agreement adopted pursuant to Section 11-40-10(b)(2), within 10 business days of its adoption.
*(Act 2024-443, §8.)*
##### **§ 11-107-6** Additional Residential Building Permit Fee Authorized; Disposition of Funds {#sec-11-107-6 omnilex-key=us-al-statutes--title-11--11-107-6}
(a)(1) Any county or municipality that has a permitting and inspection program for residential construction, by resolution or ordinance adopted by a majority of the total membership of the local governing body, may levy an additional fee of up to twenty dollars ($20), in addition to any other fees authorized by law, for the issuance of any permit connected to the construction of a residence or structure as defined in Section 34-14A-2.
(2) For the purposes of this section, the term “permit” includes, but is not limited to, building permits, mechanical permits, plumbing permits, electrical permits, or any combination of the foregoing, and any other permit required for the construction or remodeling of a new or existing residence or structure as defined in Section 34-14A-2.
(b) All fees collected pursuant to this section shall be deposited in the Alabama Construction Trade Academy Fund established in Section 34-14A-20.
*(Act 2025-398, §2.)*
### **Chapter 108** Business License Tax Reporting and Appeals Act
##### **§ 11-108-1** Short Title {#sec-11-108-1 omnilex-key=us-al-statutes--title-11--11-108-1}
This chapter shall be known as the Business License Tax Reporting and Appeals Act.
*(Act 2025-408, §1.)*
##### **§ 11-108-2** Legislative Findings {#sec-11-108-2 omnilex-key=us-al-statutes--title-11--11-108-2}
The Legislature finds and declares that Alabama’s residents and businesses have a right to do business in this state free from excessive regulations or fees, to have clear knowledge of any fees charged to conduct business, and to seek redress against unfair or duplicative taxation.
*(Act 2025-408, §2.)*
##### **§ 11-108-3** Annual Fiscal Year Report {#sec-11-108-3 omnilex-key=us-al-statutes--title-11--11-108-3}
(a) Each county and municipality that has levied a business privilege tax or business license tax, by March 30, shall file an annual fiscal year report with the Department of Revenue containing all of the following information concerning the previous fiscal year:
(1) The classifications and schedules for business license taxes.
(2) Whether the classifications or schedules changed during the reporting year or will change during the year immediately following the fiscal year covered by the report.
(b) The Department of Revenue shall post each report on the department’s website.
(c) Any municipality or county that has levied a business privilege tax or business license tax and that fails to comply with subsection (a) shall escrow subsequent business license taxes and business privilege taxes until the municipality or county achieves compliance with subsection (a).
*(Act 2025-408, §3.)*
##### **§ 11-108-4** Appeal of County or Municipal Tax Determination {#sec-11-108-4 omnilex-key=us-al-statutes--title-11--11-108-4}
A taxpayer may appeal any business license tax or business privilege tax determination of a county or municipality that has levied a business privilege tax or business license tax to the Alabama Tax Tribunal as provided in Section 40-2B-2.
*(Act 2025-408, §4.)*
##### **§ 11-108-5** Requirements of Private Entity Contracted by County or Municipality {#sec-11-108-5 omnilex-key=us-al-statutes--title-11--11-108-5}
(a) A private entity contracted by a county or municipality to audit business privilege taxes or business license taxes, when sending any written communication to a business entity that may owe a business privilege tax or business license tax, shall also send a letter or other official notice from the county or municipality that declares the private entity’s authority to collect taxes on behalf of the county or municipality.
(b) A county or municipality, on a form supplied by the Department of Revenue, shall notify the department if a private entity is contracted to collect business privilege taxes or business license taxes on behalf of the county or municipality.
(c) If a private entity fails to comply with subsection (a) or attempts to collect a business privilege tax or business license tax when the entity knows that the tax is not lawfully due, the entity shall be subject to a private right of action.
(d) Nothing in this section shall be construed as creating or implying a cause of action against a county or municipality, a county or municipal official, a county or municipal employee, or a county or municipal agency, board, or instrumentality.
*(Act 2025-408, §5.)*Continue your research in ChatGPT or Claude
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