Senate Bill 330, introduced in Alabama on April 17, 2025, aims to reform the governance structure of municipal water works boards in the state. The bill proposes significant changes to the appointment and employment processes for key executive positions, including the chief executive officer (CEO) and chief financial officer (CFO), while also repealing several existing statutes related to municipal water works.
The primary focus of SB330 is to streamline the hiring process for executive roles within municipal water works boards. Under the proposed legislation, the CEO will have the authority to recommend candidates for the CFO and other executive positions, enhancing the executive's control over the management team. The bill stipulates that the CEO's employment contract will have a fixed term, which can be extended by mutual agreement with the board of directors. Additionally, the board retains the power to terminate the CEO for material failures in performance, provided there is reasonable notice and an opportunity for a hearing.
A notable aspect of the bill is the repeal of Sections 11-50-301 through 11-50-304 of the Code of Alabama 1975, which previously governed certain aspects of municipal water works boards. This repeal indicates a shift towards a more centralized and potentially more efficient governance model for these entities.
The introduction of SB330 has sparked discussions among lawmakers and stakeholders regarding its implications for local governance and water management. Proponents argue that the bill will lead to more accountable and effective leadership within municipal water works, potentially improving service delivery and operational efficiency. However, critics express concerns about the concentration of power in the hands of the CEO and the potential for reduced oversight by the board of directors.
As the bill progresses through the legislative process, its economic and social implications will be closely monitored. If enacted, SB330 could reshape the landscape of municipal water management in Alabama, impacting both governance practices and the quality of services provided to residents. The bill is set to take effect immediately upon passage, signaling a swift move towards these proposed changes.