SB31 Engrossed is a legislative bill that seeks to amend 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. The bill also refines the criteria for "eligible institutions" to include those with over 50 years of operation in Alabama, significant community impact, financial hardship risking closure, a governing body resolution for a loan application, and assets to pledge as collateral based on a bank's opinion letter. The application process for loans is detailed, requiring a financial restructuring plan and repayment within 20 years at the State Revolving Loan Fund's interest rate, secured by a first perfected security interest in pledged assets. The Executive Director is tasked with reviewing applications, administering loans, and ensuring fund release according to the plan, with annual reporting on the program's operation and loan status.

The bill introduces a new provision to ensure that any remaining funds, including interest or other contributions, do not revert to the general fund but remain in the Distressed Institutions of Higher Education Loan Program Fund for authorized purposes. It reallocates any monies appropriated by Act 2023-560 that are unspent at the time of the bill's enactment to the Alabama Commission on Higher Education. Additionally, the bill allows for the expenses of making and administering loans to be paid from the fund. It shifts the authority to recover any amounts due to the state and to carry out the chapter's purposes from the State Treasurer to the Executive Director of the Alabama Commission on Higher Education, granting the latter the power to enter into contracts and agreements. The bill is intended to take effect immediately upon its passage.

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