HB431 Alabama 2023 Session

Summary

Primary Sponsor

Juandalynn GivanRepresentative

Democrat

Session

Regular Session 2023

Title

Relating to education; to create the Distressed Institutions of Higher Education Revolving Loan Program to be administered by the State Treasurer; to define "eligible institutions"; to authorize the State Treasurer to establish terms and conditions of loans; to require reporting of contract terms and on the operation of the program; to establish the Distressed Institutions of Higher Education Loan Program Fund in the State Treasury to receive appropriations from the Legislature for funding loans and loan repayments; and to provide for recovery of amounts due.

Summary

This bill would create a Distressed Institutions of Higher Education Revolving Loan Program, run by the State Treasurer, to provide loans to Alabama colleges and universities facing financial hardship to keep them operating.

What This Bill Does

Creates a revolving loan program and a corresponding fund within the State Treasury to support eligible higher education institutions. Defines who is eligible and lets the Treasurer set loan terms, approve loans, and require written contracts; institutions must meet criteria and provide information to show they can repay. Requires annual reporting on loans and program status, and establishes repayment proceeds as part of the dedicated fund. Enables the Attorney General to pursue recovery of amounts due, with court cases handled in Montgomery County.

Who It Affects

• Eligible public or private colleges or universities in Alabama that meet the criteria and may apply for loans to prevent closure or financial collapse.
• State government entities (State Treasurer, Legislature, Attorney General, and related committees/offices) responsible for administering, monitoring, funding, and enforcing the loan program and dealing with repayments and recoveries.

Key Provisions

• Creation of the Distressed Institutions of Higher Education Revolving Loan Program and the Distressed Institutions of Higher Education Loan Program Fund to hold appropriations and loan repayments.
• Definition of eligible institutions and the application/verification process, including criteria such as operating history, community impact, financial hardship, governing body approval, and collateral.
• Authority for the State Treasurer to establish loan terms (including private funds used, interest rate, disbursements, repayment, and collateral), award loans, and require written loan contracts with breach consequences.
• Provisions for annual reporting, fund management (repayments staying in the fund and being reappropriated), and legal recovery of amounts due, with enforcement in Montgomery County; immediate effective date upon passage.

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