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AL SB597
Bill
Status
4/13/2010
Primary Sponsor
T.D. Little
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AI Summary
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Proposes a constitutional amendment to require the Wallace-Folsom College Savings Investment Plan Board to invest all PACT Trust Fund assets (except those needed for obligations within 12 months) in investments generating equal annual payments over a 20-year amortization period.
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Requires investments to be purchased from entities rated A+ by A.M. Best Company through a competitive bid process, selecting the bidder offering the highest rate of return.
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Prohibits new enrollees from being accepted into the PACT program following ratification of the amendment; only existing contract holders retain benefits.
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Authorizes the Board to borrow from the Alabama Trust Fund when PACT program revenues are insufficient to pay benefit obligations in any fiscal year, with repayment required within 20 years.
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Requires voter approval through a statewide election conducted in accordance with Sections 284 and 285 of the Alabama Constitution.
Legislative Description
Prepaid Affordable College Tuition Trust Fund, investments required to produce equal return over 20 years, new enrollees prohibited, certain borrowing authorized, const. amend.
Constitutional Amendments
Last Action
Pending third reading on day 29 Favorable from Finance and Taxation Education
4/14/2010