Bond Review Disclosure

The state Legislature earlier this spring passed a bill strengthening bond issuance disclosure requirements for Alabama counties as a result of the financial troubles in Jefferson County.

Gov. Bob Riley in late March signed SB 393 requiring all Alabama counties to file a “bond financing review form” with state auditors. County officials must acknowledge that they considered relevant factors important to the decision of entering into bonded indebtedness, including derivatives, and they must disclose the fees paid, according to the bills. The forms would be available for public review.

The measure was supported by the Association of County Commissions of Alabama. The group’s executive director, Sonny Brasfield, said before the bill passed that it was an attempt to improve due-diligence requirements. Brasfield said the legislation was thoroughly vetted before lawmakers were asked to approve it.

“We involved everyone in the process in developing the legislation because it’s an issue that the public is very sensitive to in Alabama right now,” Brasfield said in March. “I think the general feeling inside Alabama at the county commission level is that we needed to do something like this to help reestablish our ­credibility.”

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