SB267 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: 2025 Regular Session
Title: Alabama Charter School Finance Authority, bonding authority established, legislative findings, board membership, powers, contracts, investments
Summary: SB267 would create the Alabama Charter School Finance Authority to issue bonds and finance capital projects for state public charter schools, with repayment secured by dedicated charter school revenues.
What This Bill Does
The bill creates the Alabama Charter School Finance Authority in Montgomery County that can issue bonds to provide funds for loans to public state charter schools to pay for project costs. It requires each state charter educational institution receiving a financing loan to establish and maintain a dedicated source of revenue to repay the loan. Bonds issued by the Authority would be paid from pledged revenues and other security arrangements, not from general state funds, and the bill allows for refinancing, investment, and strict governance and administration of the financing program.

Who It Affects
State charter educational institutions (public state charter schools) would receive financing loans for capital projects and must set up dedicated revenue to repay those loans.
Bondholders and investors in the Authority’s bonds would be protected by pledged revenues and security arrangements, with bonds not considered general state debt and recoverable through the Authority’s assets and revenues.

Key Provisions
Establishes the Alabama Charter School Finance Authority with authority to issue bonds and make financing loans to state charter educational institutions to pay for project costs and to refinance those costs.
Requires each charter school receiving a financing loan to establish and maintain a dedicated source of revenue to repay the loan, and allows the Authority to secure payments using various revenues (state, federal, local funds, mortgage pledges, and other revenues) and to permit revenue intercepts for debt service.

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