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Senate Bill 294 Alabama 2026 Session

Updated Feb 12, 2026

Summary

Session
2026 Regular Session
Title
Public Officers and Employees; Division of Risk Management authorized to provide bond program, authorize delinquencies, notification required
Summary

SB294 would reorganize Alabama’s official-bond system by treating county bonds separately from state bonds, adding deficiency notices and a 15-day cure window, and giving the Division of Risk Management new bond-forwarding options, with an effective date of October 1, 2026.

What This Bill Does

County official bonds would be governed by county law, not the state’s official-bond requirements. The office that receives a filed bond must notify the bonded officer if the bond is deficient, and the officer may cure the deficiency within 15 days before the office is vacated. The Division of Risk Management could offer a program to forward the official bond to the appropriate authority on behalf of the official and, with approval, extend the state blanket bond to certain county officials. The bill also repeals the current procedure for additional bonds of certain state officers (Section 36-5-41) and becomes effective October 1, 2026.

Who It Affects
  • County officials and county employees who are required to file bonds; their bonds would be governed by county law, with deficiency notices and a 15-day cure period, and they may interact with a new risk-management bond-forwarding option.
  • State officials and certain county officials who could be covered by the state blanket bond if approved; these groups could gain access to a risk-management bond-forwarding program and potential extended bond coverage, subject to executive approvals.
Key Provisions
  • County official bonds shall be governed exclusively by county law, not the state official-bond provisions.
  • The office receiving a filed bond must notify the officer when the bond is deficient.
  • An officer may remedy a deficient bond within 15 days before the office is vacated.
  • The Division of Risk Management may offer a program to forward the public official bond to the appropriate authority on behalf of the official and may adopt rules to implement.
  • The Division may extend the state blanket bond to certain county officials and employees if approved by the Governor and the Director of Finance, with county-resolution evidence of coverage.
  • Notice that coverage is provided under the state blanket bond shall be evidenced by resolution of the county commission.
  • Section 36-5-41, concerning forms and procedures for additional bonds of certain state officers, is repealed.
  • Effective date of the act: 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
Government Administration

Bill Actions

S

Pending Senate Banking and Insurance

S

Read for the first time and referred to the Senate Committee on Banking and Insurance

Bill Text

Documents

Source: Alabama Legislature