SB339 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Bryan TaylorClay ScofieldPhillip W. WilliamsBill HoltzclawPaul BussmanShadrack McGillGreg J. ReedGeorge M. “Marc” KeaheyArthur OrrRoger Bedford, Jr.Paul SanfordTrip PittmanDel MarshJ.T. WaggonerGerald H. AllenTom Whatley

Session

Regular Session 2012

Title

Highway Authority, issuance of $650 million in revenue bonds for highways, roads, and bridges, Public Road and Bridge Construction Council created, duties to Transportation Department

Summary

The bill allows the Alabama Highway Authority to issue up to 650 million dollars in bonds to finance highways, roads, and bridges, creates a council to select projects, and uses net motor fuel tax revenue to repay the bonds, with no obligation on the state itself.

What This Bill Does

It authorizes the Alabama Highway Authority to issue up to 650 million dollars in bonds, plus the option to issue refunding bonds. Bonds must be sold at public sale and proceeds go to construction costs for projects approved by the new Public Road and Bridge Construction Council. The Council reviews proposals, requires a local 5 percent matching fund from counties, and allocates bond proceeds to fund approved projects. The bonds are secured by pledged net motor fuel tax revenues and are not general obligations of the state.

Who It Affects

• Counties and county governments: must provide a 5 percent local match for funded projects and may not receive more than 5 percent of bond proceeds; must follow council guidelines and project requirements.
• The Alabama Highway Authority and the Department of Transportation: authorized to issue and manage bonds, disburse funds for construction, enter into disbursement agreements, and oversee project approvals through the new Council.

Key Provisions

• authorize the Alabama Highway Authority to issue bonds up to 650,000,000 dollars; refunding bonds allowed; bonds treated as pledged obligations not the state's general debt
• bonds to be sold at public sale; proceeds used to pay construction costs; issuance expenses capped at 2 percent of bonds; proceeds deposited into separate Alabama Highway Authority Road and Bridge Construction Fund
• pledged revenues consist of net motor fuel tax proceeds; includes sinking fund for debt service; investment income credited to construction or reserve accounts; bonds may be tax exempt
• creation of Public Road and Bridge Construction Council to review proposals, require a county local match, and authorize funding; counties may not receive more than 5 percent of bond proceeds; funding decisions within one year of program start; quarterly meetings and annual audits
• grants and disbursement rules: proceeds may be reallocated or pledged funds used to pay costs; unexpended proceeds may be redeployed or used to redeem bonds after specified periods
• debt and security: bonds are not state obligations; the state covenants not to reduce pledged revenues below certain levels while bonds are outstanding; debt service coverage tests may be used for new bonds
• governance: governor must approve bond terms for validity; no public hearing or state finance department consent is required for issuance
• other: bonds must mature within 20 years; act provides severability and immediate effectiveness upon governor approval

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

Subjects

Authorities