SB192 Alabama 2013 Session

Summary

Primary Sponsor

Paul Bussman

Republican

Co-Sponsors

Shadrack McGillVivian Davis FiguresPhillip W. WilliamsClay ScofieldLinda Coleman-MadisonGreg J. ReedTrip PittmanDick BrewbakerJerry L. FieldingRusty GloverGeorge M. “Marc” KeaheyGerald H. AllenBryan TaylorPriscilla Dunn

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

SB192 adds the Governor as a member of the Alabama Highway Finance Corporation, designates its officers, and allows up to $25 million in bonds to fund the state's share of road projects and local projects that match federal funds through the Rural Assistance Match Program.

What This Bill Does

It makes the Governor a member and president of the Alabama Highway Finance Corporation and sets the other officers (Attorney General and Director of Finance as vice-presidents, Director of Transportation as secretary, and State Treasurer as treasurer). It allows the corporation to issue up to $25 million in aggregate outstanding bonds to finance the state's share of road and bridge costs and to provide matching funds for rural local projects under the Rural Assistance Match Program. It directs bond proceeds, after issuance costs, to the Road and Bridge Fund for use on state or locally funded projects and imposes specific pledges of taxes/fees to secure debt service, with strict priority and subordination rules and guidance on refunding bonds.

Who It Affects

• State government and transportation agencies (Governor, Alabama Highway Finance Corporation, Director of Transportation, Attorney General, Director of Finance, State Treasurer, and the Department of Transportation) by giving the Governor a leadership role and establishing bonding and funding procedures for highway projects.
• Counties and municipalities involved in Rural Assistance Match Program projects by providing matching funds and receiving financing support for local road and bridge improvements.

Key Provisions

• Adds the Governor as a member and President of the Alabama Highway Finance Corporation; designates the Attorney General and Director of Finance as Vice-Presidents; Director of Transportation as Secretary; and the State Treasurer as Treasurer and fund custodian.
• Allows the corporation to borrow up to $25,000,000 in aggregate principal outstanding at any time to fund the state's share of road/bridge costs and to provide local matching funds for Rural Assistance Match Program projects.
• Bonds must be issued with Governor approval for terms and conditions; bonds are not the state's general obligation; refunds are allowed with Governor's approval; bonds may be sold by public sale or private sale to minimize net interest cost.
• Proceeds (after issuance costs) go to the State Treasury and Road and Bridge Fund and are used to pay the state's share or local matching funds for projects financed jointly with federal funds; may be used to comply with federal requirements.
• The corporation must pledge specific taxes/fees to debt service (e.g., gasoline taxes, vehicle fees) and establish a sinking fund; bond pledges have defined priority and subordination rules relative to other obligations.
• Investment of bond proceeds is restricted to enumerated permitted investments, including U.S. government obligations, certain federal and state securities, and insured time deposits with collateral or other protections.
• Contracts and bonds issued under this act must reflect the state's geographic, gender, racial, and ethnic diversity in awarded work.
• Effective immediately following passage and the Governor's 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

Transportation Department