HB13 Alabama 2020 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2020

Title

Wastewater treatment facilities, loan payback period by local governing bodies extended, Sec. 22-34-11 am'd.

Summary

HB 13 lets local governments extend the repayment period for wastewater facility loans from the Alabama Water Pollution Control Authority if allowed by federal law, as long as it stays within the project's design life.

What This Bill Does

If enacted, the bill amends loan terms to allow a longer repayment period for wastewater facility loans, in line with federal law and limited by the project’s design life. It lets public bodies create dedicated revenue sources and use various revenues (such as sewer charges, licenses, taxes, and special assessments) to repay the loan and cover operating costs. It also requires debt service to be covered at 110% to 125% of the annual debt due, allows pledges of these revenues to secure the loan, and sets requirements for accounting and timing of payments, with repayment starting within a year after construction and ending within the extended period. The measure becomes effective immediately after governor approval.

Who It Affects

• Local governing bodies (cities, towns, counties) that borrow for wastewater facility projects; they gain the ability to extend loan repayment terms and use dedicated revenue sources to repay the loan.
• Ratepayers and taxpayers in those communities; they may face sewer/waste disposal charges, licenses, taxes, or special assessments used to repay the loan and support project costs.

Key Provisions

• Extend the loan repayment period beyond 20 years if allowed by federal law, as long as the period does not exceed the project’s design life.
• Public bodies may establish dedicated revenue sources to repay the loan and to cover operation, maintenance, and replacement costs.
• Public bodies may levy and collect revenues such as sewer/waste disposal charges, licenses, permits, taxes, and special assessments to repay the loan and to meet debt obligations; they may pledge these revenues to secure the loan.
• Public bodies may obligate themselves to pay debt service to the authority and may enter agreements or delegate duties necessary to fund the loan.
• Repayment must start within one year after project completion and be completed within 20 years, with possible extension under federal Clean Water Act limits and within the project’s design life; loans must be accounted for under generally accepted accounting standards (GAAP).
• The act becomes effective immediately after governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Wastewater Systems