SB121 Alabama 2010 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Co-Sponsors

George M. “Marc” KeaheyWendell MitchellPriscilla DunnLinda Coleman-MadisonKim BenefieldLowell BarronT.D. “Ted” LittleHinton MitchemRoger Bedford, Jr.Bobby DentonHank SandersLarry MeansZeb LittleTom Butler

Session

Regular Session 2010

Title

Highways and other roads, Alabama Trust Fund, $100 million transferred annually in 2010 to 2020, inclusive, distrib. of portion after appropriation to Transportation Department, portions earmarked for special projects, distrib. of portion to counties and municipalities for transportation purposes, transfers from Alabama Trust Fund to Municipal Government Capital Improvement Fund and County Government Capital Improvement Fund, const. amend.

Summary

SB121 would amend Alabama’s constitution to create a 10-year transportation construction program funded by $100 million annually from the Alabama Trust Fund, with allocations to the state and local transportation agencies, district-specific projects, local capital improvement funds, and a DBE program, contingent on a statewide vote.

What This Bill Does

If passed, the amendment would require the Legislature to appropriate $100 million per year from the Alabama Trust Fund from 2011 through 2020 for highway, bridge, and related transportation projects. Seventy-five percent of the funds would go to the Department of Transportation for state and local road and bridge work, with specific one-time or district-targeted allocations (port improvements, mass transit, BRAC infrastructure, and a study for an interchange) in certain districts. The remaining 25% would go to counties and municipalities for local construction, maintenance, and repair, distributed using a county-based formula and population-based shares, with a portion directed to municipalities within each county. The measure also creates a Disadvantaged Enterprise collateral fund and a DBE participation committee, allows contract preferences for Alabama-based and Alabama-resident employers, and imposes safeguards to keep ATF capital above $2 billion. It also authorizes annual transfers (1% per year through 2020) from the ATF to Municipal and County Capital Improvement Funds and requires an election to approve the amendment.

Who It Affects

• Alabama Department of Transportation (DOT) receives most of the funds for construction, maintenance, and repair of highways, roads, and bridges.
• Counties and municipalities receive 25% of the funds for local transportation projects, with distributions based on a county formula and population shares.
• Specific districts and entities receive targeted allocations, such as funding for the Alabama State Port Authority, the Houston County Commission, the Russell County Commission, and mass transit programs.
• Shortline railroad operators may receive $1,000,000 annually through the Alabama Shortline Railroad Infrastructure Rehabilitation Fund with a 20% funding match requirement.
• Disadvantaged Business Enterprises (DBEs) and contractors seeking DBE participation are affected by the new collateral fund and the participation committee.
• Alabama-based companies and Alabama residents may receive contracting preferences where allowed by law.
• Local governments and residents are affected by the statutory cap on ATF funds and the requirement to maintain ATF capital above $2 billion.
• Voters will decide, via a statewide election, whether to approve the constitutional amendment.

Key Provisions

• Annual appropriation: Beginning in fiscal year 2011 through 2020, $100,000,000 from the Alabama Trust Fund shall be appropriated for a road, bridge, and other transportation construction and improvement program.
• DOT allocation: 75% of the appropriation goes to the Department of Transportation for state and local highway/bridge work, with sub-allocations including $1,000,000 to the Alabama Shortline Railroad Infrastructure Rehabilitation Fund (with a 20% match) and $5,000,000 per congressional district for designated purposes.
• District-specific allocations: District 1 funds to the Alabama State Port Authority; District 2 funds to Houston County for a I-10 connector; District 3 funds to Russell County for BRAC-related infrastructure; Districts 6 and 7 funds for mass transit; additional District 6 funding to leverage a study for I-459/280 interchanges.
• Local allocations: After district allocations, the remainder is split 45% to counties and 55% by county population, with 10% of the county portion directed to municipalities within each county; DOT must ensure these expenditure targets are met over 10 years and report annually.
• Bid process: The Department of Transportation will administer bidding for projects funded under this amendment and shall not charge an administrative fee for the bid process.
• DBE program: Creation of a Disadvantaged Enterprise Collateral Fund; a committee to ensure DBE participation in funded projects; annual reporting to the Legislature on compliance and use of funds.
• Contract preferences: In awarding contracts using funds from this amendment, DOT and local governments may give preference to Alabama-based companies employing Alabama residents, as allowed by Alabama law.
• Fund safeguards: No appropriation may be allotted if it would cause the Alabama Trust Fund’s capital to fall below $2,000,000,000; if less than $100,000,000 is allotted in a year, the remainder may be carried forward to a subsequent year.
• Transfers to capital improvement funds: To offset lost interest earnings, annual transfers (1% of total appropriated amounts) will be made from the Alabama Trust Fund to the Municipal Government Capital Improvement Fund and the County Government Capital Improvement Fund from FY2011 through FY2020.
• Election requirement: A statewide election must be held to approve the constitutional amendment, with specific ballot language describing the measure.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments