HB743 Alabama 2010 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2010

Title

Public School and College Authority, bonds, issuance for public education and to pay swap agreements, sale of bonds by negotiated sale under certain conditions, revenue appropriated and pledged from Public School Fund, refunding bonds authorized, use of proceeds for school bus fleet renewal and to repay the Education Trust Fund for appropriations made in Act 2009-339 to the local boards of education for school bus fleet renewal

Summary

HB743 allows the Alabama Public School and College Authority to issue up to $66.5 million in bonds to support public education, mainly for renewing school bus fleets, with related swap, refunding, and tax-exempt financing provisions.

What This Bill Does

It authorizes the Authority to sell and issue up to $66.5 million in bonds (including refunding bonds) to fund public education and to cover swap obligations. The bonds are limited obligations payable from specified revenues (not general state debt) and are tax-exempt; proceeds may be used for bus fleet renewal and to repay prior Education Trust Fund appropriations. The bill outlines how bonds are sold, how proceeds are allocated (notably for bus renewal and repaying the Education Trust Fund), and requires diversification in contractors and various administrative safeguards; it also allows withdrawal of bond issuance if substantial federal funds for bus renewal become available.

Who It Affects

• Local boards of education (school districts) will receive dedicated allocations for school bus fleet renewal and may use these funds to retire existing debt related to capital improvements.
• The Alabama Public School and College Authority and state entities (Department of Finance, State Treasurer, Governor) along with bond market participants (investors, underwriters, trustees, banks, and advisors) will be involved in issuing, managing, and servicing the bonds; taxes pledged to the Public School Fund and excise tax receipts may be used to pay debt service, and the bonds will be exempt from state taxation.

Key Provisions

• Authorize sale and issue of up to $66,500,000 aggregate principal of bonds to support public education, including to satisfy swap obligations.
• Bonds are limited obligations payable solely from pledged revenues (Public School Fund and specified excise receipts); bonds do not constitute state debt and are tax-exempt.
• Authorize refunding bonds and set requirements for their issuance, including limitations on present value debt service and average maturity.
• Proceeds allocation: $32,302,687 allocated to repay the Education Trust Fund for Act 2009-339 bus fleet renewals; $33,040,170 allocated for local boards for bus fleet renewal; DOE distributes funds to boards to renew fleets and retire debt as permitted.
• Sale methods: bonds may be sold by negotiated sale or public sale; terms set by Authority; Governor must approve terms; if negotiated, involved chairs must be consulted and report details.
• Prohibition on issuing bonds if the state receives federal funds (≥ $66.5 million) for bus fleet renewal under a federal act after March 1, 2010.
• Diversity requirements for contractors (must reflect the state's racial and ethnic diversity) and explicit authority to hire diverse firms; issuance expenses paid from bond proceeds.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public School and College Authority