SB31 Engrossed is a bill that proposes changes to the Distressed Institutions of Higher Education Revolving Loan Program. The bill transfers the administration of the program from the State Treasurer to the Executive Director of the Alabama Commission on Higher Education. It also refines the definition of "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 bill details the loan application process, repayment terms of up to 20 years with interest, and the securing of loans with 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 financial restructuring plan. Additionally, the bill requires annual reporting on the program and creates the Distressed Institutions of Higher Education Loan Program Fund for appropriations and repayments.

The bill also includes provisions for the management of funds, stating that any remaining funds, including interest or contributions, will not revert at the end of the fiscal year but will stay in the fund for reappropriation. It reallocates any monies appropriated into the fund pursuant to Act 2023-560 to the Alabama Commission on Higher Education. The bill removes the State Treasurer's responsibilities and gives the Executive Director of the Alabama Commission on Higher Education the authority to request legal proceedings for recovery of amounts due to the state and to enter into contracts and agreements necessary for the chapter's purposes. Legal proceedings related to defaults or disputes must be brought in Montgomery County, Alabama. The act will become effective immediately upon its passage.

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