Senate Bill 208 Alabama 2026 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

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

SB208 would remove the Department of Finance's approval requirement for issuing bonds by state rural electrification authorities and electric membership corporations.

What This Bill Does

The bill aims to change Section 41-4-16 so these entities would not need written consent from the Department of Finance before issuing bonds or other evidences of indebtedness. If enacted as intended, the public hearing and Department review process for bond issuance would be eliminated and these debt-issuance steps would occur without Finance Department approval. The bill specifies an effective date of October 1, 2026. There is a drafting inconsistency: the attached introduced text appears to preserve the consent requirement, while the synopsis states the removal.

Who It Affects

• State rural electrification authorities and electric membership corporations would be affected by changes to debt-issuance approval requirements.
• The Department of Finance would have its oversight role reduced or removed for bond issuances by these entities, if the removal is enacted.

Key Provisions

• Amends Section 41-4-16 to remove the requirement that rural electrification authorities and electric membership corporations obtain Department of Finance approval prior to issuing bonds or other evidences of indebtedness.
• Effective date: October 1, 2026.
• Note: The introduced bill text as published appears to retain the consent requirement, creating a discrepancy with the bill's stated purpose in the synopsis.

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