SB219 Alabama 2011 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2011

Title

Education, local boards of education authorized to issue interest-bearing warrants for educational purposes, State Superintendent of Education to approve, warrants to be sold at public or private sale, warrants and interest are tax exempt (2011-20215)

Summary

SB219 lets Alabama county and city boards of education issue tax-exempt warrants (like bonds) payable from designated revenues, with State Superintendent approval, to fund public school facilities and other educational needs.

What This Bill Does

It authorizes boards to issue and sell warrants for educational and public school purposes, including facility costs and debt refunding, funded from revenues lawfully available. Warrants may be sold publicly or privately, and the warrants and interest are tax-exempt. The State Superintendent must approve issuances and ensure they won’t jeopardize the Foundation Program; these warrants are not general obligations and are secured by pledged revenues with a priority lien. The act also allows local governments to help boards (loans, donations, property transfers) and permits contracts with public entities to support debt repayments.

Who It Affects

• County boards of education and city boards of education in Alabama, who may issue and sell warrants for facilities and other educational costs, subject to State Superintendent approval.
• Investors and holders of warrants, who would receive principal and interest from pledged revenues and benefit from the tax-exempt status of the warrants.

Key Provisions

• Authorize county and city boards to issue and sell warrants for educational/public school purposes, with prior written approval of the State Superintendent of Education.
• Warrants payable from revenues lawfully available to the board and secured by a pledge of designated revenues; warrants are not general obligations and have priority liens on pledged revenues.
• Allow funding uses including costs of public school facilities, debt refunding, extraordinary nonrecurring items, and board administration costs; include authority to issue refunding warrants.
• Provide that warrants may be issued with fixed or variable interest rates (subject to Superintendent approval) and may be redeemed after specified periods; maturities may not exceed 30 years.
• Require explicit approval by the State Superintendent for issuance; approval is conclusive for validity and cannot jeopardize the Foundation Program.
• Warrants and their interest are forever exempt from state and local taxes; warrants are legal investments for fiduciaries.
• Allow counties and municipalities to lend, donate, guarantee, or transfer property to boards and to enter contracts or agreements to support debt payments.
• Permit contracts with public persons to support debt obligations, payable solely from the board’s pledged funds and revenues.

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

Subjects

Education