HB500 Alabama 2018 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2018

Title

Local governments, bond financing review forms, bond financing agreement documents to include a schedule of all of the debt obligations of teh county under certain conditions, signed acknowledgement required, municipalities and local school boards requried to follow the same procedures required of a county before entering into a bond financing agreement and required to complete a government bond financing review form developed by the Department of Examiners of Public Accounts, Secs. 11-8A-3 & 11-8A-4 am'd.

Summary

HB 500 would require local governments to include debt schedules and review forms for bond financing, with signatures and public inspection, applying to counties, municipalities, and local school boards.

What This Bill Does

If enacted, counties must include a schedule of all debt obligations for the life of the bonds in bond documents and have the county chair and bond underwriter sign acknowledgments that total debt and the debt payment schedule were presented and explained to the county commission before sale; the review form would also require a debt service schedule and confirmation of the county's ability to pay. The same bond-financing procedures and review forms would apply to municipalities and local school boards, which must follow these steps and submit the forms to the Department of Examiners of Public Accounts for public inspection. The act also requires itemized costs and fees disclosure, potential debt-refunding considerations, swaps-related disclosures, and consultation with a lawyer or CPA, with forms kept public for seven years and copies due to the department within 10 business days of issuance, effective October 1, 2018.

Who It Affects

• Counties: must add debt schedules to bond documents, obtain signed acknowledgments from the county chair and underwriter, and file the updated review form with public access, prior to selling bonds.
• Municipalities and local school boards: must follow the same procedures as counties (complete the government bond financing review form, include debt schedules, obtain signatures, and file for public inspection).

Key Provisions

• Bond financing documents must include a schedule of all county debt for the life of the debt, with signatures from the county chair and the bond underwriter acknowledging that total debt and debt payments were presented and explained before sale.
• The county government bond financing review form must contain a statement that the county commission received a potential debt service schedule for all county debt and has been advised of the county's ability to pay obligations.
• Municipalities and local school boards must follow the same bond financing procedures as counties and complete a government bond financing review form, submitted to the Department of Examiners of Public Accounts and made publicly accessible.
• The form must include detailed itemization of costs and fees paid by the county/municipality or from bond proceeds, with signatures from the chair and the bond underwriter.
• If bonds are for refunding, the form must address net present value savings and potential impact on debt repayment period.
• If a swap agreement is involved, the form must include risk disclosures, information on costs, and documentation necessary to execute the swap, plus designation of a responsible official for ongoing oversight.
• The act requires consultation with an attorney or certified public accountant when preparing the review forms, to ensure all bond or swap documents are properly reviewed.
• Copies of the forms must be filed with the Department of Examiners of Public Accounts within 10 business days of issuance and kept available for public inspection for seven years.
• The act defines key terms such as Bond Financing Agreement, Bonds, General Obligation Indebtedness, Limited Obligation Indebtedness, and Swap Agreement, and sets effective date of October 1, 2018.

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

Subjects

Bond Financing