AL HB517

Authorizes the Alabama Public School and College Authority to issue up to $30,000,000 in bonds to fund capital improvements for schools damaged by tornadoes on April 27, 2011 and December 25, 2012.

Allocates $15,000,000 to Mobile County School System for Murphy High School repairs and $15,000,000 to the State Department of Education for distribution among five schools (Alberta City Elementary, Phil Campbell High School, University Place Elementary School, Holt Elementary School, and Plainview High School).

Bonds are limited obligations payable from residues of utility gross receipts tax, utility service use tax, sales tax, and use tax revenues, and do not constitute state debt.

Requires Governor approval before each bond series issuance and mandates competitive bidding for bond sales with notice published in financial journals and state newspapers at least ten days prior to sale.

Bonds and their income are exempt from Alabama taxation, may secure state deposits, and are eligible for fiduciary fund investments; bonds have maximum 20-year maturity with optional redemption after 10 years.