HB366 Alabama 2014 Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Lynn Greer
Republican
Co-Sponsors: Dan Williams Alan Harper Steve McMillan David Sessions Jim Patterson Mark Tuggle Barry Moore Mike Hill Micky Hammon Dimitri Polizos Kerry Rich
Session: Regular Session 2014
Title: Federal Aid Highway Finance Authority, membership, gasoline tax revenues pledged to secure bonds of authority, parity of pledge provided, investments further provided for, Secs. 23-1-181, 23-1-301, 23-1-305, 23-1-309, 23-1-311, 23-1-313, 23-1-314, 23-1-315 am'd.
Summary: HB366 would strengthen the Alabama Federal Aid Highway Finance Authority by expanding membership, clarifying bond security, and allowing gasoline tax revenues to back bonds with investment and sinking fund protections.
What This Bill Does
It updates the law to specify who serves on the Alabama Federal Aid Highway Finance Authority and their officer roles. It removes unnecessary references to interest coupons on bonds. It authorizes pledging state gasoline tax revenues to secure Authority bonds, with the pledge able to cover some but not all funds and to be on parity with other obligations or prioritized by the Authority. It also improves how bond proceeds and pledged revenues are invested and placed in a sinking fund to pay principal and interest, using approved investments and allowing investment income to support debt service.

Who It Affects
State officials who serve on the FAHFA (Governor, Director of Finance, Director of Transportation, Attorney General, State Treasurer) who will remain as members and hold specified officer roles (president, vice-president, secretary, treasurer).
Bondholders and state finances (including the Department of Transportation and the State Treasurer) because gasoline tax revenues and federal funds may be pledged to back FAHFA bonds, with the creation and management of a sinking fund and allowable investments that could affect how funds are allocated and used.

Key Provisions
Expands and clarifies the FAHFA membership; five state officials become members and some serve as officers (e.g., Governor as president, Director of Finance as vice-president, Director of Transportation as secretary, State Treasurer as treasurer).
Eliminates unnecessary references to interest coupons on bonds issued by the Authority.
Allows the pledge of state gasoline tax revenues to secure bonds issued by the Authority; pledges may include some but not all funds appropriated and pledged by law, and can be on parity with other Authority obligations or prioritized by the Authority.
Pledges of the state gasoline tax revenues to secure FAHFA bonds shall be on parity with pledges to secure obligations issued by the Alabama Highway Finance Corporation.
Proceeds of bond issues and pledged revenues may be invested in U.S. government securities, certain collateralized certificates of deposit, and other fully collateralized investment arrangements, with interest used to help pay principal and interest.
Proceeds and sinking fund investments are governed to ensure funds are available to pay debt as they mature, with specific provisions tying the use of proceeds to federal aid projects and required approvals from the Department of Transportation and the Governor.

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