SB512 Alabama 2012 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

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

SB512 would allow the Alabama Public School and College Authority to issue up to $50 million in bonds to fund capital improvements for public education and workforce training, with debt paid from designated state tax revenues and not considered a general state debt.

What This Bill Does

It authorizes the issuance of up to $50 million in bonds to finance capital improvements and worker training for economic development. The bonds are limited obligations payable only from pledged state tax receipts and proceeds; they would be exempt from Alabama taxes and not create a state debt. The plan includes Governor approval, oversight by the State Building Commission, potential refunding bonds, and provisions for issuing and managing the bonds and associated costs.

Who It Affects

• Alabama public schools and colleges, which would benefit from funded capital improvements and training facilities, with debt service paid from designated tax revenues.
• Local boards of education, industry employers, and contractors involved in training programs and construction, who would participate in the funding, project supervision, and debt service payments, and must follow diversity hiring requirements.

Key Provisions

• Authorize the Public School and College Authority to sell and issue up to $50,000,000 aggregate principal of bonds for capital improvements and workforce training.
• Use of proceeds designated for worker training for new/existing industries and related capital improvements to public education; projects supervised by the State Building Commission with the authority to reimburse its costs.
• Bonds are limited obligations payable only from residues of specified tax receipts; not general obligations of the State; interest exempt from state taxes; can be used to secure deposits and be invested as permitted.
• Bonds issued in series with competitive public bids; Governor must approve terms; issuance must not impair the adequacy of the Trust Fund to pay debt service.
• Proceeds and debt service funded from residues of excise tax, utility gross receipts tax, sales/use tax, and other related revenues, with a sinking fund for timely debt payments.
• Authority to issue refunding bonds under specified conditions (present value test, average maturity limits) and to use proceeds to pay/refund existing bonds.
• Diversity requirements: Authority must hire or contract with diverse firms; contracts awarded publicly with documented reasons for award.
• Tax and issuance protections: Bonds include tax-exemption provisions, usury exemptions, and authority to set up appropriate investment and withholding arrangements; effective date upon Governor’s 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

Public School and College Authority