SB289 Alabama 2014 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

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

SB289 updates the Alabama Federal Aid Highway Finance Authority to expand membership, secure its bonds with state gasoline tax revenues, and broaden investment powers.

What This Bill Does

It adds or clarifies who can serve on the Authority and how it is governed; it allows the Authority to pledge state gasoline tax revenues to back its bonds and to decide whether to pledge all or only some available funds, potentially placing those pledges on parity with other obligations or giving the Authority priority. The bill requires those gasoline tax pledges to be on parity with pledges used by the Alabama Highway Finance Corporation. It also lets the Authority invest bond proceeds and sinking fund money and defines key terms used in the law.

Who It Affects

• Bondholders and investors in bonds issued by the Alabama Federal Aid Highway Finance Authority, who gain clearer security and more investment flexibility through new pledges and sinking fund rules.
• State agencies involved in highway funding (e.g., the Department of Transportation) and taxpayers funding highways, who could see changes in how gasoline tax revenues are pledged and used for highway projects.

Key Provisions

• Eliminates references to interest coupons on bonds issued by the Authority.
• Authorizes the Authority to pledge state highway gasoline tax revenues to secure bonds issued by the Authority.
• Pledges may include some but not all funds appropriated and pledged by law and may be on parity with or prioritized relative to other obligations, at the Authority's discretion.
• Pledges of the state’s gasoline tax revenues to secure Authority bonds are on parity with pledges to secure obligations issued by the Alabama Highway Finance Corporation.
• Provides for investment of bond proceeds and pledged revenues held in the sinking fund created to secure such bonds.
• Defines key terms and amends related code sections (Sections 23-1-181, 23-1-301, 23-1-305, 23-1-309, 23-1-311, 23-1-313, 23-1-314, 23-1-315).
• Bond proceeds and federal funds used to pay the federal share of federal-aid project costs, with oversight and approvals from the DOT, Governor, and USDOT as applicable.

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