AL HB340

Authorizes Alabama Public School and College Authority to issue up to $35,000,000 in bonds to rebuild and equip schools damaged by tornadoes on April 27, 2011 and December 25, 2012.

Allocates $20 million to Mobile County School System for Murphy High School reconstruction from December 25, 2012 tornado damage and $15 million to State Department of Education for schools damaged on April 27, 2011.

Pledges receipts from utility gross receipts tax, utility service use tax, sales tax, and use tax to pay principal and interest on bonds, with bonds being limited obligations of the authority and not creating state debt.

Bonds are exempt from state taxation, may be used as security for state deposits, and eligible as fiduciary investments; authority may issue refunding bonds and must hire contractors reflecting state's racial and ethnic diversity.

Governor must approve bond issuance terms and determine that application of pledged taxes will not impair adequacy of Education Trust Fund for public schools and higher education during bond maturity period.