Alabama House Bill HB431

Alabama 2023 Regular Session

• Introduced: 5/3/23
• Refer: 5/3/23

Caption

Relating to education; to create the Distressed Institutions of Higher Education Revolving Loan Program to be administered by the State Treasurer; to define "eligible institutions"; to authorize the State Treasurer to establish terms and conditions of loans; to require reporting of contract terms and on the operation of the program; to establish the Distressed Institutions of Higher Education Loan Program Fund in the State Treasury to receive appropriations from the Legislature for funding loans and loan repayments; and to provide for recovery of amounts due.

Impact

If implemented, HB431 is expected to significantly impact the financial mechanisms through which distressed higher education institutions can secure funding. By creating a dedicated revolving loan program, it offers a potential lifeline for institutions facing fiscal challenges, thus supporting the sustainability of higher education in the state. The program emphasizes the importance of financial resources in maintaining the viability of educational institutions, particularly those in economically vulnerable positions.

Summary

House Bill 431 aims to establish the Distressed Institutions of Higher Education Revolving Loan Program, which will be managed by the State Treasurer. This program is designed to provide financial assistance in the form of loans to designated 'eligible institutions' of higher education. It will define the criteria for these institutions and set forth the terms and conditions under which loans are to be issued. Additionally, the bill requires reporting on contract terms and the operation of the loan program, ensuring transparency and accountability in its administration.

Contention

The bill may provoke discussions regarding the definition of 'eligible institutions' and the terms of loan distribution. Questions may arise about which institutions qualify for the program and how the State Treasurer will determine the terms and conditions of these loans. Furthermore, there may be concerns over the adequacy of funding appropriated from the legislature for the Distressed Institutions of Higher Education Loan Program Fund, and the prospects for repayment by the institutions benefiting from the loans.