The Alabama Charter School Finance Authority Act establishes the Alabama Charter School Finance Authority, which is tasked with issuing bonds to finance loans for state charter educational institutions to cover project costs. The Act requires that any institution receiving a loan must maintain a dedicated revenue source for repayment. The authority is structured with members including the Governor and the State Superintendent of Education, and it is granted powers such as the ability to sue, borrow money, and issue bonds. Members will not receive additional salaries and are provided immunity from personal liability, except in cases of intentional misconduct.

The bill also amends existing laws regarding bond issuance and management, allowing the board of directors to set interest rates and determine payment methods. It emphasizes the importance of securing financing loans through dedicated revenue sources and permits the authority to intercept charter school revenues for debt service payments. The Act introduces provisions that classify all received funds as trust funds for the benefit of bondholders, ensuring proper management and application of these funds. Additionally, it includes a severability clause and repeals conflicting laws, with the Act set to take effect on October 1, 2026.