House Bill 530 Alabama 2026 Session

Summary

Primary Sponsor

Marcus ParamoreRepresentative

Republican

Session

2026 Regular Session

Title

Public Officers and Employees; Division of Risk Management authorized to provide bond program, authorize delinquencies, notification required

Summary

HB530 would revise county bonding rules, let the Division of Risk Management run a bond program, require notice for bond deficiencies, allow cure periods, and extend certain bond coverage to local officials if approved, while repealing an old bonding procedures section.

What This Bill Does

It shifts county official bonds away from the state Chapter 36-5 county bonding framework and into general official-bond law. It requires offices that receive filed bonds to notify the bonded officer if the bond is deficient, and lets the officer remedy the deficiency within 15 days before the office is vacated. It authorizes the Division of Risk Management to offer a program that can forward a public official bond to the appropriate authority on an officer's or employee's behalf, and to adopt rules to run the program. It allows extending a state blanket bond to certain county officials and employees if approved by the Governor and the Director of Finance, with county commissions evidencing coverage by resolution; it also repeals a prior bonding procedures section.

Who It Affects

• County officials and employees who are required to be bonded, including potential changes to how their bonds are filed, notified, remediated, and forwarded.
• Division of Risk Management, Governor, Director of Finance, and county governments (through county commissions) who will implement, approve, and oversee the new bond program and coverage extensions.

Key Provisions

• County bonds shall be governed by general official-bond laws rather than Chapter 5 of Title 36, with Chapter 5 not applying to county bonding.
• Bonds for county officials must be filed within specified timeframes; if delinquent, the officer must be notified and may cure within 15 days, or the procedures for delinquency apply.
• The Division of Risk Management may create and administer a bond program, including forwarding bonds to the appropriate authority on an officer's or employee's behalf, upon written request and with Finance Director approval.
• The state blanket bond may be extended to certain county officials and employees if approved by the Governor and the Director of Finance; coverage is evidenced by a county commission resolution and must meet Article 11 requirements.
• The Division of Risk Management may assist with procuring scheduled-position public official bonds for local officials and employees.
• repeals Section 36-5-41, which governs forms and procedures for additional bonds for certain state officers.
• The act becomes effective October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 26, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Government Administration