HB304 Alabama 2012 Session

Summary

Primary Sponsor

Craig Ford

Independent

Co-Sponsor

Blaine Galliher

Session

Regular Session 2012

Title

Public School and College Authority, authorized to sell and issue additional bonds for capital improvements for public education and for training workers for industries, Education Training Act

Summary

The bill lets the Alabama Public School and College Authority issue up to $50 million in bonds to fund capital improvements for public education and workforce training, with repayment guaranteed by specific tax revenues rather than through a general state debt.

What This Bill Does

It authorizes the Public School and College Authority to sell and issue up to $50 million in bonds for capital improvements in public education and for training workers for new or existing industries. Proceeds are allocated to $30 million for K-12 public education (career-tech equipment) and $20 million for obligations related to Goodyear Tire & Rubber Co. The bonds are limited obligations payable only from pledged tax revenues and the Education Trust Fund, not from the state's general funds, and interest may be tax-exempt. The act also sets up oversight and administration, including Governor approval, State Building Commission supervision of building work, and provisions for issuing, refunding, and paying debt service.

Who It Affects

• K-12 public education students and local boards of education, who would benefit from capital improvements and career-technical equipment funded by the bonds.
• State and local government entities (the Public School and College Authority, State Treasurer, Department of Finance, Governor, and local boards) that would issue, back, and oversee the bonds and debt service, with repayment tied to designated tax revenues rather than a general state debt.

Key Provisions

• Authorize the Alabama Public School and College Authority to issue up to $50,000,000 in aggregate principal of bonds for capital improvements to public education and workforce training.
• Allocate proceeds: $30,000,000 to K-12 public education for career-tech equipment and $20,000,000 for obligations related to Goodyear Tire & Rubber Co.
• Bonds are limited obligations payable solely from residues of specific tax receipts pledged to a Trust Fund; not a general obligation of the state; interest may be exempt from federal taxation.
• Bonds may be issued in series, sold competitively at public sale, with Governor approval of terms; maturities not exceeding 20 years; redemption options after 10 years for longer maturities.
• Refunding bonds are allowed with requirements to ensure debt service savings and maturity limits; funds for refunding may be held in trust or escrow arrangements.
• Construction and project plans must be supervised by the State Building Commission; authority to reimburse the Building Commission for supervision costs; issuance costs may also be paid from bond proceeds; diversity hiring requirements for professionals engaged by the authority.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Public School and College Authority