SB364 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

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 the county under certain conditions, signed acknowledgement required, municipalities and local school boards required 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

SB 364 would require counties, municipalities, and local school boards to use standardized bond financing review forms and attach a debt schedule and related disclosures before issuing bonds.

What This Bill Does

It requires bond financing documents to include a schedule of all the county's debt obligations for the life of the debt and require signatures by the county chair and the bond underwriter acknowledging that the debt totals and payment schedule were presented and explained to the county commission. It adds to the county bond financing review form a statement that the county commission has received a potential debt service schedule and has been advised of the county's ability to pay all debts. It extends these procedures to municipalities and local school boards, who must follow the same process and complete a government bond financing review form, submitted to the Department of Examiners of Public Accounts and made available for public inspection. It also requires detailed itemization of bond-related costs and, for swap agreements, related disclosures and risk analysis, and it requires consultation with an attorney or CPA.

Who It Affects

• County governments (county commissions and chairs) would be required to attach debt schedules, obtain acknowledgments, and submit the bond financing review form and related documents to the Department of Examiners of Public Accounts, with the form being publicly accessible.
• Municipalities and local school boards would be required to follow the same procedures as counties, including completing the government bond financing review form and providing debt schedules and disclosures, with forms public.

Key Provisions

• Bond financing documents must include a schedule of all county debt obligations for the debt's maturity period; signatures by the county chair and the bond underwriter acknowledging presentation and explanation of totals and payment schedules.
• The county bond financing review form must include a statement that a potential debt service schedule has been provided and that the county has been advised of its ability to pay all obligations.
• Municipalities and local school boards must follow the same procedures as counties and complete the government bond financing review form; forms must be submitted to the Department of Examiners of Public Accounts and be available for public inspection.
• There must be a detailed itemization of bond-related costs and fees, with an acknowledgement by the chair and the underwriter signer that these costs were presented to all members before the sale.
• For swap agreements, the form must include disclosures of risks and fees, documentation to effect the swap, designation of a responsible official, and an assessment of whether the obligation is general or special (and its payment source).
• The entity preparing the form must consult with an attorney or certified public accountant regarding the bond or swap proposals.
• Forms must be forwarded to the Department within 10 business days of issuance and kept on file for seven years and publicly accessible.
• Effective date: 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