HB456 Alabama 2022 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2022

Title

State Treasury, Education Trust Fund Debt Service Sinking Fund, created, administration and uses, provided

Summary

The bill creates a dedicated sinking fund in the State Treasury to pay the Education Trust Fund’s share of debt service on specific bonds, with any excess returned to the ETF.

What This Bill Does

It creates the Education Trust Fund Debt Service Sinking Fund in the State Treasury. The fund will receive money to cover the ETF’s portion of debt service on listed bonds (GO Series 2014-A, 2016-C, 2018-A, 2018-B, and Alabama Incentives Financing Authority bonds 2009-A, 2009-B, 2019-A or their refundings). The Legislature may appropriate funds to pay ETF’s debt service until those bonds are fully paid, and any remaining money in the fund would be transferred to the ETF in the next fiscal year.

Who It Affects

• Education Trust Fund (ETF): will have a dedicated source of funds to cover its portion of debt service on the listed bonds, with any unused funds returned to the ETF.
• State government (Legislature and State Treasury): will create, administer, and fund the sinking fund through appropriations and manage debt service payments and any transfers back to the ETF.

Key Provisions

• Creation of a separate fund in the State Treasury named the Education Trust Fund Debt Service Sinking Fund.
• The fund is established to provide funding for the ETF’s portion of debt service on specified bonds (GO 2014-A, 2016-C, 2018-A, 2018-B, and Alabama Incentives Financing Authority bonds 2009-A, 2009-B, 2019-A, or their refundings).
• The Legislature may appropriate amounts to the fund to pay the ETF’s debt service until the final maturity of the bonds.
• Any funds remaining after all obligations are met shall be transferred to the Education Trust Fund in the following fiscal year.
• The act becomes effective immediately upon passage and approval by the Governor, or upon becoming law.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education Trust Fund