Code of Alabama

Ala. Code § 11-50-396 (2026)

Powers Generally.

✓ official Alabama Legislature (ALISON) text, laws through the 2026 Regular Session
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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.)

Notes of Decisions
Cited in 2 cases, 1989–1993 · leading case: Marshall Cnty. Bd. of Educ. v. Marshall Cnty. Gas Dist., 992 F.2d 1171 (11th Cir. 1993).
Marshall Cnty. Bd. of Educ. v. Marshall Cnty. Gas Dist., 992 F.2d 1171 (11th Cir. 1993). · cites it 2× “The District has the power “to borrow money for any corporate purpose and to issue in evidence of the borrowing interest-bearing bonds____” Ala. Code § 11-50-396 (6) (1992). Bonds can also be issued to refund bonds previously issued or “for the combined purpose of so refunding…”
Newton v. Se. Alabama Gas Dist., 708 F. Supp. 1254 (M.D. Ala. 1989). · cites it 2× “As “independent instrumentalities of the state,” the districts are exempt from the jurisdiction of and regula *1257 tion and supervision by the Alabama Public Service Commission [§ 11-50-416]. Finally, notice to the public is required whenever a district board passes a…”
Ala. Code § 11-50-396(12): 1 case
Newton v. Se. Alabama Gas Dist., 708 F. Supp. 1254 (M.D. Ala. 1989). “As “independent instrumentalities of the state,” the districts are exempt from the jurisdiction of and regula *1257 tion and supervision by the Alabama Public Service Commission [§ 11-50-416]. Finally, notice to the public is required whenever a district board passes a…”
Ala. Code § 11-50-396(17): 1 case
Newton v. Se. Alabama Gas Dist., 708 F. Supp. 1254 (M.D. Ala. 1989). “As “independent instrumentalities of the state,” the districts are exempt from the jurisdiction of and regula *1257 tion and supervision by the Alabama Public Service Commission [§ 11-50-416]. Finally, notice to the public is required whenever a district board passes a…”
Ala. Code § 11-50-396(6): 1 case
Marshall Cnty. Bd. of Educ. v. Marshall Cnty. Gas Dist., 992 F.2d 1171 (11th Cir. 1993). “The District has the power “to borrow money for any corporate purpose and to issue in evidence of the borrowing interest-bearing bonds____” Ala. Code § 11-50-396 (6) (1992). Bonds can also be issued to refund bonds previously issued or “for the combined purpose of so refunding…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.