1. (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).
2. (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.

3. (c)

   1. (1) The board of directors of a regional board shall be reorganized and comprised as follows:

      1. a. One director, who shall have a financial background, in addition to a general business background, shall be appointed by the sponsoring mayor.
      2. b. One director, who shall have a financial background, in addition to a general business background, shall be appointed by the Lieutenant Governor.
      3. 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.
      4. 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.
      5. 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.
      6. 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.
      7. 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. (2) All directors shall be residents of a county in which the regional board serves customers.
   3. (3) Elected public officials may be appointed as directors.
   4. (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. (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.
4. (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.

5. (e) Each director shall serve for a term of five years, except the initial directors shall serve terms as follows:

   1. (1) The initial director appointed by the sponsoring mayor shall serve a term of one year.
   2. (2) The initial director appointed by the Lieutenant Governor shall serve a term of two years.
   3. (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. (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. (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.
6. (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).
7. (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.)