SB473 Alabama 2010 Session

Summary

Primary Sponsor

Lowell Barron

Democrat

Session

Regular Session 2010

Title

Corrections Institution Finance Authority, issuance of additional bonds to acquire prison facility in Perry County and to provide additional bedspace in existing facilities, employment of certain current employees of Perry County facility under certain conditions, swap agreements prohibited, Secs. 14-2-1, 14-2-8, 14-2-12, 14-2-19, 14-2-21 am'd.

Summary

The bill lets the Alabama Corrections Institution Finance Authority issue more bonds to buy a Perry County prison and add bedspace, requires the Department of Corrections to hire Perry County facility staff, and bans swap agreements.

What This Bill Does

It authorizes the Authority to issue additional bonds to acquire the Perry County facility and to provide additional bedspace in existing facilities, with bond authority capped at up to $25,000,000 plus $7,500,000 under a separate act, and up to $60,000,000 specifically for the Perry County facility. Bond proceeds may be used to acquire land, construct or improve facilities, install equipment, pay related costs, and cover interest during construction, including up to $1,000,000 paid to the Perry County Commission to offset future tax revenue loss; any remaining proceeds can be used to secure or refund bonds or fund other facilities. The bill also prohibits the Authority from entering swap agreements related to these bonds. Upon acquisition of the Perry County facility, the Department of Corrections must employ eligible employees who worked there (below rank of captain) on provisional appointments, with future hires governed by the Merit System. Finally, the bill becomes effective immediately upon passage and governor approval.

Who It Affects

• Perry County facility employees (current staff) – will be employed by the Department of Corrections after acquisition, first with provisional appointments and later through the Merit System.
• Perry County residents and local government (including the Perry County Commission) – may see local tax revenue implications and will receive up to $1,000,000 from bond proceeds to offset future tax revenue loss; bond financing also supports expansion of prison capacity in the county.

Key Provisions

• Authorizes the Alabama Corrections Institution Finance Authority to issue additional bonds to acquire the Perry County facility and to provide additional bedspace in existing facilities, with bond authority limits: up to $25,000,000 plus $7,500,000 under Act 97-950, and up to $60,000,000 total for the Perry County facility.
• Bond proceeds may be used for land acquisition, construction, reconstruction, alteration, and improvement of facilities; equipment and related costs; payment of issuance expenses; interest during construction; and principal and interest on prior notes, with leftover proceeds usable to secure or refund bonds or to fund other facilities.
• prohibits the Authority from entering into swap agreements related to these bonds.
• Upon acquisition of the Perry County facility, the Department of Corrections shall employ eligible employees who were employed there (below captain) on provisional appointments, with subsequent appointments governed by the Merit System Act.
• Bond security and financing terms allow pledging rents and revenues, Kilby property proceeds, and other collateral; the Authority may transfer leases or mortgages as security, and bond indentures may contain standard covenants related to debt service and security.
• Effective date: immediately upon passage and governor approval.

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

Subjects

Corrections Institution Finance Authority