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 a written financial restructuring plan, with the Executive Director required to approve loans within 30 days of application submission.

Additionally, the bill ensures that any remaining funds in the designated account, including interest and contributions, will not revert at the end of the fiscal year but will remain available for authorized purposes. It reallocates any unspent funds appropriated under Act 2023-560 to the Alabama Commission on Higher Education for specified uses. The bill also shifts the responsibility for legal proceedings related to fund recovery from the Attorney General to the Executive Director, who will now have the authority to initiate legal actions and execute contracts necessary to achieve the chapter's objectives. The act is set to take effect immediately upon passage.

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