SB545 Alabama 2010 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2010

Title

Counties, sales and use tax proceeds, county in default on sewer system debt authorized to pledge revenues for financing or refinancing sewer system debt on a one-time basis

Summary

SB545 lets a county with sales tax revenues and sewer debt over $3 billion that is in default or at risk of default pledge those tax revenues one time to finance or refinance the sewer debt.

What This Bill Does

If enacted, a qualifying county could pledge county sales and use tax revenues to finance or refinance sewer debt on a one-time basis, but only if the debt exceeds $3 billion and is in default or imminent default. The pledge cannot include the portion used for indigent health care. The county must act by a majority vote of the county commission and within six months after the act becomes law. The pledged revenues would stay in effect for the debt’s duration as described in the debt indenture, and no future refunding could occur after the initial financing; if school debt is funded by the same pledge, it must be financed or refinanced concurrently with the sewer debt.

Who It Affects

• Counties that levy a county sales and use tax and are in default or near-default on sewer system debt exceeding $3 billion; they could use this one-time pledge to finance/refinance that debt.
• School districts within those counties that have debt funded by the same tax pledge; their school construction or school debt could be financed/refinanced concurrently with the sewer debt.

Key Provisions

• Authorizes, on a one-time basis, any county that levies a county sales and use tax and is in default or imminent default on sewer debt exceeding $3,000,000,000 to pledge revenues from that tax to financing or refinancing of sewer debt.
• Excludes the portion of tax revenues that may be pledged for indigent health care from the pledge.
• Requires a majority vote of the county commission and action within six months after the act becomes law to use this authority.
• Pledged revenues remain in effect for the debt’s duration as defined by the debt indenture; no future debt refunding may occur after the initial financing.
• If school construction debt or other school debt is financed with the same pledge, it must be financed or refinanced concurrently with the sewer debt.
• Effective date: October 1, 2010.

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

Subjects

Counties