-Allows the Governor to present a five-year Capital Outlay Program, and request the implementation of its first year. The capital outlay projects approved by legislature are to be made part of the comprehensive state capital budget, then to be adopted by the legislature (Sec. 1).
-Requires that bond authorization for projects be funded totally or partially by the sale of general obligation bonds (Sec. 2).
-Provides for the repeal of state general obligation bond authorizations for projects no longer determined feasible or desirable; reauthorization of unsold bonds from the previous fiscal year for projects deemed to be of such priority; and to enact new authorization for projects found to be needed for capital improvements (Sec. 2).
-Repeals all prior Acts authorizing the issuance of general obligation bonds of the state, with the exceptions as provided in the Act, such as to any Act providing for the issuance of refunding bonds or to Act 41 of the 2006 First Extraordinary Session (Sec. 3).
-Authorizes the State Bond Commission to issue general obligation bonds or other general obligations of the state for capital improvements for the projects, to provide funds for certain capital improvement projects (Sec. 4).
-Authorizes the State Bond Commission to issue general obligation bonds of the state referred to as "project bonds," for capital improvements for the projects (Sec. 5).
-Requires that the applicable management board, governing body, or state agency for which the project bonds are issued shall transfer and make available to the State Treasury designated student fees or revenues or other revenues equal to the debt service on such project bonds in that fiscal year (Sec. 5).
-Mandates that no project bonds authorized in Sec. 5 will be issued for any authorized project until a reimbursement contract has been carried through between the applicable management board, governing body, or state agency and the relevant State Bond Commission for the project. The contract will require payment to the state treasury of designated student fees or revenues or other revenues sufficient to reimburse the cost of the principle, interest, and premium to be paid by the state on such project bonds (Sec. 5).
-Expires on June 30, 2010, except as to any authorized bonds which have been sold, to which lines of credit have been issued, or for which contracts for construction have been signed (Sec. 7).