HB322 Summary

• Authorizes county and city boards of education in Alabama to issue interest-bearing warrants for educational purposes with prior written approval from the State Superintendent of Education.

• Warrants are payable from lawfully available board revenues or tax proceeds and can be sold at public or private sale for purposes including school facility costs, debt refunding, and extraordinary nonrecurring expenses.

• Warrants have maturities not exceeding 30 years, can bear fixed or variable interest rates, and are not general obligations of the board but secured by pledged revenues.

• State Superintendent may not approve warrants if they would jeopardize the Foundation Program of education or if the board has overdue unpaid principal or interest on other obligations (except for refunding).

• Warrants and accrued interest are exempt from all state, county, municipal, and other taxation under Alabama law.