HB420 Alabama 2015 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Mike Jones
Republican
Session: Regular Session 2015
Title: Corrections Institute Finance Authority, authorized to issue additional bonds, Secs. 14-2-12, 14-2-19 am'd.
Summary: The bill expands the bonding authority of the Alabama Corrections Institute Finance Authority, increasing the cap for the Perry County facility to up to $60 million and clarifying how bond proceeds may be used and disclosed.
What This Bill Does
It allows the Corrections Institute Finance Authority to issue more bonds for acquisition, construction, reconstruction, and improvement of correctional facilities, including (through Perry County) bedspace expansion. It maintains existing authority to issue bonds for other facilities (up to $25 million plus $7.5 million previously authorized) and sets a new cap of $60 million for the Perry County facility. Proceeds must be used for specified facility-related purposes, including land, construction, equipment, paying expenses, and interest during construction; up to $1 million may be paid to the Perry County Commission to compensate for future tax revenue loss; remaining funds may be used to secure or retire bonds. The act requires transparency for certain monetary transactions, requires bonds to be sold by competitive bid when feasible, and encourages diverse participation in bond and construction work.

Who It Affects
The Alabama Corrections Institute Finance Authority and the Department of Corrections — gain expanded bonding authority and flexibility to fund facilities, including Perry County facilities and related bedspace expansions.
Perry County residents and the Perry County Commission — may receive up to $1 million to offset future tax revenue loss and benefit from facility improvements and expanded bedspace.

Key Provisions
Authorizes the authority to issue bonds up to $25,000,000 plus $7,500,000 (aggregate) for general purposes, with additional bonds for Perry County facilities up to a total not exceeding $60,000,000.
Proceeds from Perry County-related bonds must be used for acquiring land, constructing, reconstructing, and equipping Perry County facilities, and for additional bedspace by improving properties owned by the Department of Corrections or the authority.
Proceeds may be used to pay expenses of issuance, interest during construction, and principal and interest on outstanding notes previously issued.
Balance of proceeds, after required expenditures, may be used as additional security or to retire bonds, and may cover temporary facilities costs during construction.
All monetary transactions under Act 2010-729 must be fully disclosed to the public.
Bond proceeds are to be sold by competitive bid if practical and economically feasible.
The authority is encouraged to use diverse businesses in bond issuance and construction projects to reflect the state’s racial and ethnic diversity.
Refunding bond proceeds may be used only to refund the principal and accrued interest on outstanding bonds, plus any necessary premium.

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