SB442 Alabama 2010 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Paul Sanford
Republican
Co-Sponsors: Roger Bedford, Jr.Hinton Mitchem Lowell Barron Arthur Orr Tom Butler
Session: Regular Session 2010
Title: Public School and College Authority, bonds, issuance for new school construction and renovation of existing school facilities in school systems directly impacted by 2005 Base Realignment and Closure, local school districts required to provide dollar for dollar match (2010-20875)
Summary: The bill allows the Alabama Public School and College Authority to issue up to $175 million in bonds to fund new and renovated BRAC-impacted North Alabama schools, with a dollar-for-dollar local match from affected districts and BRAC-related funding sourced from state tax receipts.
What This Bill Does
It authorizes bond issuance for construction and renovation of schools in BRAC-impacted areas, funded by designated state tax receipts and secured by revenues from those taxes rather than the state general fund. It requires local districts to provide a matching amount to qualify, with additional options to use existing local tax increases to meet the match. It also defines how BRAC-related job growth determines the distribution of funds to districts, establishes governance and procurement rules, allows refunding bonds, and extends participation to additional counties.

Who It Affects
Students and families in BRAC-impacted school districts (primarily in Madison County and the Huntsville area) who may benefit from new construction or renovations funded by the bonds.
Local school districts in the BRAC-Impacted Area (and Jackson and Marshall counties) required to provide a dollar-for-dollar local match to qualify for bond proceeds.
The City of Huntsville Federal Building Authority and Redstone Garrison/BRAC employers, whose BRAC-related job counts and locations determine eligibility and the distribution of bond proceeds.
State taxpayers and public education funding, since bond debt service is paid from dedicated tax revenues (not general state funds) and requires sinking fund arrangements and long-term fiscal planning.

Key Provisions
Authority to issue up to $175,000,000 in bonds, contingent on proof that 7,000 direct BRAC-related jobs exist and pay an average of $85,000+ per year.
Local match requirement: recipient districts must provide a dollar-for-dollar match, potentially funded by new local sales or property tax increases; districts in a high sales tax area may use available funds to meet the match.
BRAC Distribution formula: the difference between BRAC-Impacted Area jobs on the Determination Date and the Baseline Date is distributed to districts proportionally based on where BRAC-Impacted Area employees reside (city or county), with allocations tied to residence locations.
Bond security and repayment: bonds are not state general obligations; they are payable solely from the designated tax residue and a sinking fund, with repayment supported by specific excise tax revenues and other described sources.
Refunding bonds allowed under specified financial tests (present value limits, average maturity constraints) and may be issued to refinance and manage debt service.
Procurement and diversity requirements: the Authority must issue RFPs for professional services and hire a diverse set of vendors reflecting Alabama’s racial and ethnic diversity; minutes must record award reasons.
Participation and local flexibilities: Jackson and Marshall counties may participate; districts may redirect existing school-dedicated taxes to qualify for 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