SB512 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Hank Sanders
Democrat
Session: Regular Session 2010
Title: Public School and College Authority, bonds, issuance under federal American Recovery and Reinvestment Act of 2009, issuance under other government programs providing cost-savings authorized, notes and other debt obligations authorized, swap agreements regarding bonds prohibited, Act 2009-813, 2009 1st Sp. Sess. (now appearing as Sec. 16-16-14.1) am'd.
Summary: SB512 lets the Alabama Public School and College Authority issue bonds using ARRA 2009 or other cost-saving government programs, updates bonding rules, and bans swap agreements.
What This Bill Does
It authorizes the Authority to issue and sell bonds, notes, or other debt under the American Recovery and Reinvestment Act of 2009 or other programs that provide cost savings or favorable conditions for local education needs. It amends the existing bonding law to allow negotiated sales or competitive bidding, flexible maturities, and various redemption terms, with a review by the Alabama Public School and College Education Incentive Fund Council within 10 days. It restricts proceeds from certain qualified bonds to participating local boards that pledge enough revenue to meet debt service for the full term. It also prohibits the use of swap agreements on these bonds, aligning with federal rules, and sets other related compliance provisions.

Who It Affects
Local boards of education in Alabama: gain access to financing on favorable terms for school projects through Authority-issued bonds, subject to revenue pledge requirements for certain bond proceeds.
The Alabama Public School and College Authority: gains expanded authority to issue debt under ARRA 2009 and other programs and must operate without entering into swap agreements, coordinating with the Incentive Fund Council.
The Alabama Public School and College Education Incentive Fund Council: tasked with reviewing bond terms within 10 days of notification from the Authority and advising on compliance and approvals.

Key Provisions
Authority may issue bonds, notes, or other debt obligations under the ARRA 2009 or other government programs providing cost savings or favorable conditions, for the benefit of local boards of education.
Amendment to Section 3 of Act 2009-813 to allow bonds issued by the Authority under Section 3(b) of Act 98-373 to be sold by negotiated sale or competitive bid, with flexible maturities and redemption features, and to require compliance with federal law (including ARRA and the Internal Revenue Code). The Alabama Public School and College Education Incentive Fund Council must review such bonds within 10 days of notification.
Proceeds from the sale of bonds issued as 'qualified school construction bonds' or 'qualified zone academy bonds' may be provided only to participating local boards that irrevocably pledge sufficient revenue to meet debt service for the entire bond term.
The Authority is prohibited from entering into any swap agreement involving the bonds authorized by this act or Act 2009-813 (swap defined as in Section 41-1-41).
The act becomes effective immediately upon passage and approval (or upon otherwise becoming law).

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