SB431 Alabama 2012 Session

Summary

Primary Sponsor

Paul Bussman

Republican

Session

Regular Session 2012

Title

Public School and College Authority, bonds, issuance of $1,070,585,022 billion for capital improvements for schools, colleges, other institutions, state agencies, and job training, revenue appropriated and pledged from utility gross receipts and service tax and sales and use tax with certain conditions, refunding bonds authorized, tax exemption provided from all state taxes and provision for federal income tax exemption, distribution formula provided, Education Facilities Excellence Act

Description

This bill authorizes the Alabama Public School and College Authority to sell and issue $37,828,007 in aggregate principal amount of additional bonds for capital improvements for schools which suffered catastrophic damage as a result of the tornadoes on April 27, 2011. It authorizes the Authority to reimburse the Building Commission, the Department of Finance, and the State Treasurer's office for costs incurred in providing services for the Authority; it authorizes the Authority to provide for the details of the bonds and the sale and issuance thereof; it makes an appropriation and pledge for payment of the principal and interest on the bonds from specific taxes necessary to pay the principal and interest at their respective maturities and authorizes the Authority to pledge for payment of the principal and interest on the bonds the funds that are appropriated and pledged; it provides for the investment of funds by the State Treasurer; it provides that the bonds shall not constitute a debt of the state but shall be limited obligations payable out of the funds appropriated and pledged therefor; it provides that the bonds and income therefrom shall be exempt from all taxation in this state and that the bonds may be used to secure deposits of funds of this state and its political subdivisions, instrumentalities and agencies and for investment of fiduciary funds; it authorizes the Authority to establish procedures and requirements to ensure compliance with the tax covenants with which the Authority must comply; it exempts the bonds from the usury laws of the state; it authorizes the Authority to issue refunding bonds and give the details of such refunding; it provides for the employment of attorneys, fiscal advisors, trustees, paying agents, investment bankers, banks, and underwriters and for the payment of all expenses incurred in the issuance of the bonds; it provides that after payment of the expenses of the issuance of the bonds the proceeds from the sale thereof shall be disbursed on order or warrants issued by or under the direction of the Authority for the purposes for which the bonds are authorized to be issued; it provides for the timely expenditure of the proceeds from the sale of the bonds; it provides for use of amounts repaid to the Authority by local boards of education and provides that if any portion of this act should be held invalid such holding shall not affect the validity of any other portion thereof; and it requires all projects using bond proceeds to have all plans, specifications, construction, reconstruction, alteration, improvement, and equipping of buildings to be supervised by the State Building Commission and provides for the payments of its reasonable cost in reviewing contract documents and supervising and inspecting the work.

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Subjects

Public School and College Authority