HB749 Alabama 2010 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: John F. Knight Jr
Democrat
Session: Regular Session 2010
Title: Bonds, general obligation bonds issued under Amendment 666 (Section 219.04, Recompiled Constitution of Alabama of 1901, as amended), Alabama Capital Improvement Trust Fund, and increases in bonding authority pursuant to Amendment 796 (Section 219.041, Recompiled Constitution of Alabama of 1901, as amended), refunding bonds not subject to the amount of bond issuance authority, const. amend.
Summary: HB749 would amend Alabama's Constitution to allow general obligation refunding bonds under Amendments 666 and 796 to bypass the current cap, subject to debt-service and maturity limits.
What This Bill Does
It would authorize the state to issue general obligation refunding bonds under Amendment 666 without regard to the maximum aggregate principal amount, as modified by Amendment 796. Refundings could be issued from time to time in amounts that may exceed the refunded bonds, but must meet two tests: the present value of debt service cannot exceed 97% of the debt service of the bonds being refunded, and the average maturity of the refunding bonds cannot be more than three years longer than the average maturity of the bonds being refunded. The amendment would keep Amendments 666 and 796 otherwise unchanged and would require voter approval in a statewide election with standard ballot language and notice requirements.

Who It Affects
State government and the Bond Commission, which would determine the aggregate amounts of refunding bonds that can be issued.
Taxpayers and holders of Alabama general obligation bonds, since refunding bonds could affect debt service costs and overall debt levels.

Key Provisions
Allows general obligation refunding bonds issued under Amendment 666 to be issued without regard to the aggregate principal limit, as modified by Amendment 796.
Refunding bonds may be issued from time to time in aggregate amounts that may exceed the bonds being refunded, as determined by the Bond Commission.
Requires two financial tests: (i) present value of debt service on refunding bonds must not exceed 97% of the present value of debt service on bonds being refunded, and (ii) the average maturity of refunding bonds cannot exceed the refunded bonds by more than three years, using specified calculation methods.
In all other respects, Amendments 666 and 796 remain unchanged; the amendment requires voter approval in a statewide election with ballot language and notice as described.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments