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

HB394 is sponsored by State Rep. Rex Reynolds (R-Huntsville) and being carried in the Senate by State Sen. Greg Albritton (R-Atmore), the chairmen of House and Senate General Fund Committees.

According to the fiscal note, as passed the House of Representatives, the bill would allow the Alabama Building Renovation Finance Authority (ABRFA) to issue up to $50 million in new bonds. Assuming that bonds are issued at an average rate of 5% and mature in 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 is paid from rent charged to agencies that occupy buildings owned by ABRFA.

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This bill would also allow ABRFA to sell bonds by negotiation and remove the existing public notice requirement. The ABRFA is a division of the Department of Finance.

The Legislation can be considered by the full Senate as early as Wednesday. There is also a Senate companion version that has already passed the Senate and is in the House of Representatives.

This is day 28 of the 2024 Alabama Regular Session. This, or its companion version, will have to pass the second House before the end of the Legislative session. The Legislature is limited to a maximum of 30 Legislative days in any regular session. If this bill does not get passed this week it will be next year before the Legislature can consider it again.

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