HB213 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mac McCutcheon
Republican
Co-Sponsors: Mike Hill Jim Patterson Wayne Johnson Joe Faust K.L. Brown Elaine Beech Ralph Howard William Roberts Steve Hurst Mike Jones Richard Baughn Darrio Melton Kurt Wallace David Standridge Lynn Greer Alan Harper Mac Buttram Victor Gaston Wes Long Mike Ball Jack Williams John Robinson
Session: Regular Session 2013
Title: Highway Finance Corporation, borrowing power clarified, Governor added as member of authority, proceeds of bonds, use by counties and municipalities to match federal funds, Secs. 23-1-174, 23-1-177, 23-1-178, 23-1-181 am'd.
Summary: HB213 would add the Governor as a member of the Alabama Highway Finance Corporation, cap its bond debt at $25 million, and allow bond proceeds to fund the state's share of road projects and local matching funds for federal programs.
What This Bill Does
If enacted, the bill expands the borrowing authority of the Alabama Highway Finance Corporation to a maximum of $25 million in outstanding bonds. It designates state officials as officers and adds the Governor as a member, with the Governor likely serving as a key leader of the corporation. Bond proceeds would be deposited to the Road and Bridge Fund and used to finance the state's share of road and bridge projects and to provide matching funds for local projects under the Rural Assistance Match Program; bonds would not be a general obligation of the state and would be repaid from pledged funds and revenues. The bill also outlines how refunds can be issued, requires Governor approval for refunding bonds, and establishes sinking fund mechanisms to pay principal and interest on the bonds.

Who It Affects
Alabama Highway Finance Corporation and designated state officials (including the Governor, Director of Transportation, Attorney General, Director of Finance, and State Treasurer) by adding the Governor as a member and assigning officer roles such as president, vice-president, secretary, and treasurer/custodian of funds.
Counties and municipalities participating in the Rural Assistance Match Program, as the bond proceeds can be used to provide the state's share or local matching funds for federal-aid road, bridge, and related projects.

Key Provisions
Section amends to add the Governor as a member of the Alabama Highway Finance Corporation and designates officer roles (Governor as president, Attorney General as vice-president, Director of Finance as secretary, and State Treasurer as treasurer/custodian).
Borrowing authority is set at not more than $25,000,000 in aggregate outstanding bonds at any time, for financing the state's share of road/bridge costs and for matching federal funds for Rural Assistance Match Program projects.
Proceeds of bonds (excluding refunding bonds) go to the State Road and Bridge Fund and can be drawn upon for construction, reconstruction, relocation of roads/bridges, or related work, including local matches and federal-aid projects; bonds are not general obligations of the state.
Bonds must be sold under specified rules (public sale or private sale with lowest net interest cost, etc.), with Governor approval required for refunding bonds; a sinking fund and pledged revenues from various motor fuel and fee sources support debt service.
Proceeds from bond issuance and pledged taxes/fees are prioritized and subordinate to certain existing obligations, and the act provides for investment and protection of bond proceeds and orderly management of funds.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Transportation Department