HB78 Alabama 2017 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2017

Title

Municipalities, local school boards, bond financing agreements, to complete a bond financing review form, acknowledgment of certain factors, form submitted to Examiners of Public Accounts Department

Summary

HB78 would require municipalities and local school boards to complete a government bond financing review form when issuing bonds and to submit it for public inspection.

What This Bill Does

The bill requires a standardized Government Bond Financing Review Form, prepared by the Office of Examiners of Public Accounts, to be completed for every bond financing or related debt decision. The form must show the issuer considered key factors like ability to meet debt obligations, debt service sources, the bond term relative to the project life, and that bond proceeds won’t fund operating expenses, plus itemized costs and a clear bond proposal. It must be submitted to the Office of Examiners of Public Accounts, kept on file, and publicly accessible for seven years. The act also prohibits entering into bond financing or related indebtedness until these requirements are met, and adds extra disclosures and monitoring for swap agreements and refundings.

Who It Affects

• Municipalities and local school boards in Alabama – issuers of bonds who must complete the Government Bond Financing Review Form, sign required statements, disclose costs, obtain approvals, and forward the form to the Office within 10 business days after issuance.
• The Office of Examiners of Public Accounts and the general public – the office will receive, store, and make the forms publicly accessible for seven years, increasing government transparency about bond financings and related agreements.

Key Provisions

• Any municipality or local school board issuing bonds or entering into related indebtedness must complete the Government Bond Financing Review Form prepared by the Office of Examiners of Public Accounts.
• The form must include: (a) the ability to meet financial obligations for the life of the bonds; (b) source of debt service for limited vs general obligation indebtedness; (c) consideration of the useful life of the project relative to bond term; (d) acknowledgment that bond proceeds will not be used for general operating expenses; (e) itemized costs and fees; (f) a clear written bond proposal; (g) impact on constitutional debt limits; and (h) information showing reasonable estimated interest rates and market comparability.
• If bonds are used to refinance (refund) existing debt, the form must address potential net present value savings and how refunding affects debt repayment.
• For swap agreements, the form must include compliance actions, risk disclosures, designation of a responsible official, and assessment of whether obligations are general obligation debt with adequate payment sources.
• The form must be signed by the board chair (or designated member) and the adviser, and a copy must be forwarded to the Office of Examiners of Public Accounts within 10 business days of issuing the bonds or entering into a swap.
• Bond financing documents must itemize all costs and fees paid by the issuer or from bond proceeds, with acknowledgments that these costs were explained to the board members before the sale.
• Issuers must consult with an attorney or a certified public accountant when preparing the Government Bond Financing Review Form.
• The forms and related documents must be kept on file by the Office of Examiners of Public Accounts and be open to public inspection for seven years.
• The act takes effect October 1, 2017.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities