House Bill 343 Alabama 2026 Session

Summary

Primary Sponsor

Jeff SorrellsRepresentative

Republican

Session

2026 Regular Session

Title

State rural electrification authorities and electric membership corporations; removes requirement for Department of Finance approval for issuance of bonds

Summary

HB343 would require Department of Finance approval, after a public hearing, for certain state electrification authorities to issue bonds, with an effective date of October 1, 2026.

What This Bill Does

The bill amends Section 41-4-16 to require written consent from the Director of Finance before any bonds or debt issued by state rural electrification authorities, electric membership corporations, power districts, or improvement authorities can be issued or sold. Consent would be granted only after a public hearing and a petition filed by the requesting entity at least five days before the hearing, detailing the plan for the project and how the proceeds will be used, along with other information required by the Department of Finance. The Department of Finance would grant consent only if it determines the issue serves a public need and is in the public interest, and proceeds must be used in accordance with the approved plan. The section does not apply to bonds issued by municipalities or municipal housing authorities.

Who It Affects

• State rural electrification authorities, electric membership corporations, power districts, and improvement authorities would have to obtain written consent from the Department of Finance before issuing bonds, following a public hearing and specified filing requirements.
• Residents and customers in the service areas of these entities could be affected by the added oversight and requirements governing how bond proceeds are planned and used.

Key Provisions

• Amends Section 41-4-16 to require consent from the Director of Finance for issuance or sale of bonds or other indebtedness by specified electrification-related entities.
• Consent must be granted after a public hearing and a petition filed at least five days before the hearing, detailing the plan, uses of proceeds, and information required by the Department.
• The Department of Finance may grant consent only if the issue serves a public need and is in the public interest; proceeds must be used in accordance with the approved plan.
• The provision excludes bonds issued by municipalities, their agencies, and municipal/county/regional housing authorities from this section.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Government