Alabama 2023 Regular Session

Alabama Senate Bill SB278 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~SB278ENROLLED~~
	1	+	SB278INTRODUCED
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3		-	1FKNLL-2
	3	+	1FKNLL-1
4	4		By Senators Waggoner, Smitherman
5	5		RFD: Finance and Taxation Education
6	6		First Read: 02-May-23
7	7		2023 Regular Session
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12		-	5 SB278 EnrolledSB278 Enrolled
	12	+	5
	13	+	6 1FKNLL-1 05/02/2023 KHF (F)kf 2023-1895
13	14		Page 1
14		-	Enrolled, An Act,
	15	+	SYNOPSIS:
	16	+	This bill would create the Distressed
	17	+	Institutions of Higher Education Revolving Loan Program
	18	+	to be administered by the State Treasurer for the
	19	+	purpose of providing loans to eligible higher education
	20	+	institutions who are experiencing financial hardship.
	21	+	A BILL
	22	+	TO BE ENTITLED
	23	+	AN ACT
15	24		Relating to education; to create the Distressed
16	25		Institutions of Higher Education Revolving Loan Program to be
17	26		administered by the State Treasurer; to define "eligible
18	27		institutions"; to authorize the State Treasurer to establish
19	28		terms and conditions of loans; to require reporting of
20	29		contract terms and on the operation of the program; to
21	30		establish the Distressed Institutions of Higher Education Loan
22	31		Program Fund in the State Treasury to receive appropriations
23	32		from the Legislature for funding loans and loan repayments;
24	33		and to provide for recovery of amounts due.
25	34		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26	35		Section 1. There is created the Distressed Institutions
27	36		of Higher Education Revolving Loan Program to be administered
28		-	by the State Treasurer.
29		-	Section 2. (a) The term “eligible institution” as used
30		-	in this section shall mean any public or private college or
31		-	university in Alabama, including any state-related college or
32		-	university, that meets all of the following criteria:
33		-	(1) Has been operating for more than 50 years in
34		-	Alabama.
35		-	(2) Has a significant impact on the community in which
36		-	it is located.
37		-	(3) Is experiencing financial hardship which could lead
38		-	to closure of the institution.
39		-	(4) Whose governing body has adopted a resolution
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67		-	28 SB278 ~~EnrolledSB278 Enrolled~~
	64	+	28 SB278 INTRODUCEDSB278 INTRODUCED
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	66	+	by the State Treasurer.
	67	+	Section 2. (a) The term “eligible institution” as used
	68	+	in this section shall mean any public or private college or
	69	+	university in Alabama that meets all of the following
	70	+	criteria:
	71	+	(1) Has been operating for more than 50 years in
	72	+	Alabama.
	73	+	(2) Has a significant impact on the community in which
	74	+	it is located.
	75	+	(3) Is experiencing financial hardship which could lead
	76	+	to closure of the institution.
	77	+	(4) Whose governing body has adopted a resolution
69	78		authorizing the application for a loan from this program to
70	79		maintain operations as it replenishes its endowment through
71	80		private gifts.
72	81		(5) Has assets sufficient to pledge as collateral.
73	82		(b) An eligible institution seeking a loan from this
74	83		program shall make application on forms prescribed by the
75	84		State Treasurer. The institution shall certify that it meets
76	85		all criteria provided by this section.
77	86		(c) The State Treasurer shall review all applications
78	87		for loans and shall make a careful and thorough investigation
79	88		of the ability of each applicant to repay a loan under the
80	89		program. Any institution applying for a loan shall provide any
81	90		information requested by the State Treasurer relevant to the
82	91		determination of ability to repay.
83	92		(d) The State Treasure is authorized to establish the
84	93		terms and conditions of any loan made pursuant to this
85		-	program, including: the amount of private funds committed
86		-	prior to loan funds being drawn; the rate of interest, if any;
87		-	the timing and amounts and timing of disbursements; the terms
88		-	of repayment; and any necessary collateral.
89		-	(e) The State Treasurer may, in his or her judgment,
90		-	award a loan to any eligible institution that meets the
91		-	requirements provided in this section and shall be responsible
92		-	for the administration of the loan, subject to the provisions
93		-	of this section.
94		-	(f) As a condition of approval by the State Treasurer
95		-	of a loan under the program, each applicant shall enter into a
96		-	written contract with the State Treasurer. Breach of contract
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124		-	56 SB278 ~~EnrolledSB278 Enrolled~~
	121	+	56 SB278 INTRODUCEDSB278 INTRODUCED
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	123	+	program, including: the amount of private funds committed
	124	+	prior to loan funds being drawn; the rate of interest, if any;
	125	+	the timing and amounts and timing of disbursements; the terms
	126	+	of repayment; and any necessary collateral.
	127	+	(e) The State Treasurer may, in his or her judgment,
	128	+	award a loan to any eligible institution that meets the
	129	+	requirements provided in this section and shall be responsible
	130	+	for the administration of the loan, subject to the provisions
	131	+	of this section.
	132	+	(f) As a condition of approval by the State Treasurer
	133	+	of a loan under the program, each applicant shall enter into a
	134	+	written contract with the State Treasurer. Breach of contract
126	135		by the recipient shall make the recipient immediately liable
127	136		for the unpaid balance of the loan.
128	137		(g) The State Treasurer shall forward copies of
129	138		executed loan contracts to the Chairs of the Senate Finance
130	139		and Taxation-Education Committee and the House Ways and
131	140		Means-Education Committee, the Finance Director, and
132	141		Legislative Fiscal Officer.
133	142		Section 3. Annually, on or before the first day of
134	143		December, the State Treasurer shall file a report regarding
135	144		the operation of the program, including all loans issued and
136	145		the status of any repayments, to the Governor, Lieutenant
137	146		Governor, Speaker of the House of Representatives, President
138		-	Pro Tempore of the Senate, the minority leaders of the Alabama
139		-	Senate and House of Representatives, the Chairs of the Senate
140		-	Committee on Finance and Taxation-Education and the House Ways
141		-	and Means-Education Committee, the Legislative Fiscal Officer,
142		-	and the Finance Director.
143		-	Section 4. The “Distressed Institutions of Higher
144		-	Education Loan Program Fund” is created in the State Treasury
145		-	to receive appropriations from the Legislature for the funding
146		-	of loans and to be administered by the State Treasurer, as
147		-	provide by this section. Proceeds from loan repayments shall
148		-	be deposited into this fund and may be used in the same manner
149		-	as any other funds provided for this program. Any monies
150		-	remaining in the fund at the end of a fiscal year shall not
151		-	revert but shall remain in the fund and are reappropriated for
152		-	the purposes authorized by this section. The expenses of
153		-	making and administering loans, including legal, consultant,
	147	+	Pro Tempore of the Senate, the Chairs of the House and Senate
	148	+	Health Committees, the Chairs of the Senate Committee on
	149	+	Finance and Taxation-Education and the House Ways and
	150	+	Means-Education Committee, the Legislative Fiscal Officer, and
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181		-	84 SB278 ~~EnrolledSB278 Enrolled~~
	178	+	84 SB278 INTRODUCEDSB278 INTRODUCED
182	179		Page 4
183		-	and administrative expenses, shall be payable from the fund.
	180	+	the Finance Director.
	181	+	Section 4. The “Distressed Institutions of Higher
	182	+	Education Loan Program Fund” is created in the State Treasury
	183	+	to receive appropriations from the Legislature for the funding
	184	+	of loans and to be administered by the State Treasurer, as
	185	+	provide by this section. Proceeds from loan repayments shall
	186	+	be deposited into this fund and may be used in the same manner
	187	+	as any other funds provided for this program. Any monies
	188	+	remaining in the fund at the end of a fiscal year shall not
	189	+	revert but shall remain in the fund and are reappropriated for
	190	+	the purposes authorized by this section.
184	191		Section 5. The Attorney General of Alabama, upon
185	192		request of the State Treasurer, shall institute proceedings in
186	193		the name of the state for the purpose of recovering any amount
187	194		due the state under the provisions of this section. All
188	195		proceedings involving default or dispute of the contract shall
189	196		be brought in the appropriate court of jurisdiction in
190	197		Montgomery County, Alabama.
191		-	Section 6. In addition to the powers granted by any
192		-	other provision of the bill, the Treasurer shall have the
193		-	powers necessary and convenient to carry out the purposes and
194		-	provisions of this bill, including the power to enter into and
195		-	execute contracts, agreements, and other instruments.
196		-	Section 7. No loans may be authorized pursuant to this
197		-	act after January 18, 2027; however, this provision shall not
198		-	effect any loans issued prior to this date. Any funds in the
199		-	Distressed Institutions of Higher Education Loan Program Fund
200		-	on this date shall be transferred to the Education Trust Fund
201		-	Section 8. This act shall become effective immediately
	198	+	Section 6. This act shall become effective immediately
202	199		upon its passage and approval by the Governor, or its
203	200		otherwise becoming law.
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226		-	________________________________________________
227		-	President and Presiding Officer of the Senate
228		-	________________________________________________
229		-	Speaker of the House of Representatives
230		-	SB278
231		-	Senate 04-May-23
232		-	I hereby certify that the within Act originated in and passed
233		-	the Senate.
234		-	Patrick Harris,
235		-	Secretary.
236		-	House of Representatives
237		-	Amended and passed: 25-May-23
238		-	Senate concurred in House amendment 25-May-23
239		-	By: Senator Waggoner
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