On Tuesday, the Alabama Senate Finance, Taxation and General Fund Committee met and voted to move forward with a bill that would allow the state to issue up to $50 million in new bonds.

HB394 The bill was sponsored by state Rep. Rex Reynolds (R-Huntsville) and has been introduced in the Senate by state Sen. Greg Albritton (R-Atmore), who chairs both the House and Senate General Fund Committees.

by Financial NotesThe bill passed by the House of Representatives would allow the Alabama Building and Renovation Finance Authority (ABRFA) to issue up to $50 million in new bonds. Assuming the bonds are issued at an average interest rate of 5% and mature over 20 years, the average annual debt service on the new bonds would be approximately $3.99 million. Current law provides that debt service on ABFRA bonds will be paid from rent charged to agencies that occupy buildings owned by ABRFA.

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The bill would allow ABRFA to sell bonds through negotiated transactions and would eliminate existing public notice requirements. ABRFA is a division of the Treasury Department.

The bill could come before the full Senate as early as Wednesday, and a companion Senate version has already passed the Senate and is on the way to the House of Representatives.

Today is the 28th day of the 2024 Alabama Regular Session. This bill, or any companion bill to it, must pass the House before the end of the legislative session. The Legislature is limited to a maximum of 30 legislative days during a regular session. If this bill does not pass this week, it will be next year before the Legislature can consider it again.

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