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SB208 INTRODUCED
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SB208
7BYLJ22-1
By Senator Shelnutt
RFD: Banking and Insurance
First Read: 27-Jan-26
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7BYLJ22-1 01/27/2026 JWB (L)JWB 2026-116
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First Read: 27-Jan-26
SYNOPSIS:
Under existing law, any state rural
electrification authority or electric membership
corporation is required to obtain consent from the
Department of Finance before the issuance of bonds or
other evidences of indebtedness.
This bill would remove that requirement.
A BILL
TO BE ENTITLED
AN ACT
Relating to electrification authorities; to amend
Section 41-4-16, Code of Alabama 1975; to remove the
requirement that rural electrification authorities and
electric membership corporations get approval from the
Department of Finance prior to the issuance of bonds or
evidences of indebtedness.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-4-16, Code of Alabama 1975, is
amended to read as follows:
"§41-4-16
(a) No bonds or other evidences of indebtedness of any
commission or authority created to construct or reconstruct
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commission or authority created to construct or reconstruct
highway bridges, approaches , and appurtenances thereto, any
state rural electrification authority, any electric membership
corporation, any power district, or any improvement authority
shall be issued or sold until the consent to the issuance and
sale thereof shall have been given by the Department of
Finance, to be evidenced by the written approval of the
Director of Finance. Such consent Consent shall be granted
only after a public hearing and after a petition requesting
such consent has been duly filed by the corporation,
authority, district, commission, or other body seeking such
consent with the department more than five days before the
public hearing. The petition shall specify the plan or program
of the body seeking the consent and, the uses to which it is
proposed to put the proceeds of the issue , and theany other
matters as are necessary to fully advise the department of the
nature of the proposed project, and the petition shall include
such other information as may be required by the rules of the
department.
(b) The Department of Finance shall grant consent only
after it finds that the issue or sale serves some public need
and is in the public interest. It shall be unlawful for the
body seeking such consent or anyone to use the proceeds of any
such issue or sale contrary to the plan and purposes presented
to the department in obtaining its consent thereto .
(c) This section shall not apply to any bonds or other
evidence of indebtedness issued by any municipality, or any
agencies, bureaus, or commissions thereof, nor any municipal,
county, or regional housing authority."
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county, or regional housing authority."
Section 2. This act shall become effective on October
1, 2026.
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