SB202 Alabama 2019 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2019

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 202 would require counties and municipalities in Alabama to include detailed debt schedules and signed acknowledgments in bond documents, and to follow standardized public review procedures before issuing bonded debt.

What This Bill Does

Counties must add a schedule of all debt obligations for the time span of each debt’s maturity to bond documents, and the county chair and bond underwriter must sign an acknowledgment that totals and debt payments were presented and explained. The bond financing review form will include a statement that the county has received a potential debt service schedule and has been advised it can pay the debt. Municipalities and local school boards must follow the same procedures, complete the same review form, and file it with the Department of Examiners of Public Accounts, with forms publicly available for seven years. The bill also requires itemization of bond-related costs and fees, disclosure of swap-related risks and documents, and consultation with an attorney or CPA when preparing the forms.

Who It Affects

• Counties, municipalities, and local school boards — must include debt schedules, acknowledge debt considerations, follow the review-form process, and make forms publicly available; this affects how they plan and document bond issuances.
• Bond underwriters, bond counsel, issuer's counsel, trustees, advisers, and the Department of Examiners of Public Accounts — must provide debt service schedules, disclose costs and risks, sign acknowledgments, and ensure documentation is complete and filed with the public records.

Key Provisions

• Bond documents for counties must include a schedule of all county debt for the life of the debt and require the county chair and bond underwriter to sign an acknowledgment that totals and debt service have been presented and explained to the county commission.
• The county government bond financing review form must add a statement that the county has received a potential debt service schedule for all county debt and has been advised of the ability to pay all obligations.
• Municipalities must follow the same bond financing procedures as counties, complete a government bond financing review form developed by the Department of Examiners of Public Accounts, and submit it for public inspection.
• The bond financing documents must itemize costs and fees, require acknowledgments by the chair and underwriter, and include a separate debt service schedule for all debt; swap agreements have additional disclosure and documentation requirements.

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