HB517 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Napoleon BracyRepresentative
Democrat
Co-Sponsors: Chad Fincher Jamie Ison Mike Hubbard David Sessions James E. Buskey Alan Baker Victor Gaston Jim Barton Randy Davis Harry Shiver Steve McMillan Joe Faust
Session: Regular Session 2013
Title: Public School and College Authority, bonds, issuance of $30,000,000 million for schools damaged in tornados for improvements
Summary: HB517 lets the Alabama Public School and College Authority issue up to $30 million in bonds to fund capital improvements at tornado-damaged schools, with debt paid from designated state tax revenues and not considered a state debt.
What This Bill Does
The bill authorizes the Public School and College Authority to issue up to $30 million in bonds to fund capital improvements for specific tornado-damaged schools. It designates how the bond proceeds will be allocated ($15 million to Murphy High School in Mobile County and $15 million to several other schools for 2011 tornado damages) and how debt service will be paid from various dedicated state tax revenues. It establishes that the bonds are limited obligations of the Authority, exempt from state taxation, and uses a sinking fund and trustee structure to ensure timely payments, while allowing for refunding bonds under set conditions. It also outlines bond sale procedures, governance, and cost reimbursement arrangements for associated state agencies.

Who It Affects
Mobile County School System, which will receive $15,000,000 for capital improvements to Murphy High School (damage from the 2012 tornado).
State Department of Education, which will distribute $15,000,000 to Alberta City Elementary, Phil Campbell High School, University Place Elementary School, Holt Elementary School, and Plainview High School for capital improvements related to the 2011 tornado.
Alabama Public School and College Authority, which will issue the bonds and manage the debt service and related provisions.
State of Alabama and its taxpayers indirectly, as debt service will be paid from specific state tax revenues and the bonds are not state general obligations.

Key Provisions
Section 2(a): Authorizes issuance of up to $30,000,000 in bonds for capital improvements to tornado-damaged schools; funds are in addition to existing bond authority; allocations include $15,000,000 to Murphy High School and $15,000,000 to specific projects for Alberta City Elementary, Phil Campbell High School, University Place Elementary, Holt Elementary, and Plainview High School.
Section 3: Bonds are signed, may use facsimile signatures, are tax-exempt in Alabama, may be used to secure deposits and invest fiduciary funds, and are limited obligations payable from pledged funds; redemption options and maturities are defined, with a maximum maturity of 20 years and redemption allowed after 10 years for certain maturities.
Section 4: Bonds may be issued in series, sold by competitive bid, and require Governor approval of terms; the Governor must determine in writing that issuing the bonds will not impair the trust fund’s ability to pay appropriations and support public schools and higher learning.
Section 5: Debt service is paid from pledges of several tax receipts (excise taxes, sales taxes, and use taxes) deposited into a trust fund, creating a sinking fund to cover principal, interest, and premiums; pledges are prior to any other bond pledges.
Section 6: The bonds are not general obligations of the state; they are obligations of the Authority only, with security provided by pledged tax receipts; the State Treasurer may be used to pay debt service.
Section 7-8: Refunding bonds may be issued under defined conditions; proceeds may be invested to ensure full payment of refunded bonds, with provisions applying to refunding bonds similar to original bonds.
Section 10-13: Authority can reimburse state agencies for related costs, supervise construction through the State Building Commission, hire diverse professionals, ensure diversity in hires and contracting, and establish procedures to maintain tax and investment compliance; guarantees for federal tax-exemption and diversification requirements are included.
Section 14-15: Provisions include severability and immediate effectiveness after approval.

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