HB610 Alabama 2025 Session

Summary

Primary Sponsor

Ben HarrisonRepresentative

Republican

Session

2025 Regular Session

Title

Constitutional Amendment; authorizing Legislature to establish a state bank; create a commission to operate bank or designate a state agency to oversee its operations

Summary

A constitutional amendment to authorize a state public bank in Alabama, governed by a commission or designated agency, to hold state funds, lend to government entities, and issue bonds.

What This Bill Does

The bill would allow the Legislature to establish the Alabama State Public Bank to receive deposits from state and local governments, and to loan money and issue bonds to those entities. It would give the bank the power to borrow money and issue bonds or notes to fund lending to government entities, with the aim of acting in the best interests of taxpayers and residents. It would require a state public bank commission or a designated state agency to govern and operate the bank and set its structure and operating rules, while banning state stock ownership in banks and prohibiting the state from lending its credit to banks; banks would be regularly examined and report under oath. Additionally, the changes would be put to a statewide vote for approval before taking effect.

Who It Affects

• State and local government entities: would be able to deposit funds with the state public bank and borrow from or receive loans and bonds through the bank.
• Banks and banking institutions in Alabama: would be subject to public officer examinations, could not receive state credit, and would operate under new governance and reporting rules as the state creates a competing or alternative public banking structure.

Key Provisions

• Authorizes the Legislature to establish the Alabama State Public Bank to receive deposits from state/local governments, and to issue loans and bonds to those entities.
• Gives the bank authority to borrow money and issue bonds/notes to provide capital for lending to state and local governmental entities, aiming to operate in the best interests of taxpayers and residents.
• Requires the Legislature to create a state public bank commission or designate a state agency to be the primary governing authority over the bank and to oversee its operation, with general-law details on structure and operation.
• Prohibits the state or political subdivisions from owning stock in any bank and from lending credit to banks; mandates examinations of all banks and annual sworn reports of resources and liabilities.
• Sets no time limit on the bank’s duration (no renewal needed) and confirms existing extensions where applicable; requires voter approval in a statewide election for the amendment to take effect.

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

Subjects

Constitutional Amendments Statewide