SB 559 Summary

• Authorizes the Alabama Public School and College Authority to issue $66,500,000 in bonds by December 1, 2010, for public education support, with proceeds allocated to school bus fleet renewal.

• Pledges revenues from the Public School Fund as payment source for bond principal and interest, making bonds limited obligations of the Authority rather than state debt.

• Allocates $32,302,687 to repay the Education Trust Fund for appropriations made under Act 2009-339, and $33,040,170 for direct distribution to local school boards for bus fleet renewal.

• Bonds are exempt from state taxation and usury laws; authorizes refunding bonds under specified conditions and allows investment of proceeds in permitted government securities and other approved investments.

• Permits bond issuance to be withdrawn if the state receives $66,500,000 or more in federal funds from a federal jobs bill enacted after March 1, 2010, for the same school bus fleet renewal purpose.