The bill amends the Distressed Institutions of Higher Education Revolving Loan Program by transferring its administration from the State Treasurer to the Executive Director of the Alabama Commission on Higher Education. It redefines "eligible institution" to include public or private colleges and universities in Alabama that have been operational for over 50 years, significantly impact their communities, and are experiencing financial difficulties. The bill establishes specific criteria for loan applications, requiring institutions to provide sufficient collateral as determined by a bank not currently indebted to them. It also sets a 20-year repayment period for loans and mandates the submission of a written financial restructuring plan by applicants.

Additionally, the bill introduces provisions to ensure that any remaining funds in the designated account, including interest and contributions, will not revert at the end of the fiscal year but will be reappropriated for authorized purposes. It reallocates any unspent funds from Act 2023-560 to the Alabama Commission on Higher Education and clarifies that expenses related to loan administration will be covered by the fund. The Executive Director is also given the authority to initiate legal actions for fund recovery, replacing the State Treasurer in this role. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 16-65A-1, 16-65A-6
Engrossed: 16-65A-1, 16-65A-6