SB60 Alabama 2014 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2014

Title

Transportation Infrastructure Bank, established, members, powers, duties, terms, sources for capitalization, liability of bank, procedures for issuance of loans and financial assistance for qualified projects, annual report to Governor and Legislature, audit, Transportation Infrastructure Bank Act

Summary

SB60 would create the Alabama Transportation Infrastructure Bank to finance major highways and transportation projects for public benefit by providing loans and other financial assistance to government units, funded from gasoline tax revenues, federal funds, and other sources, and supported by project revenues.

What This Bill Does

It would establish the Alabama Transportation Infrastructure Bank as a public corporation governed by a seven‑member board to select eligible projects and provide loans or other financial assistance. The bank could issue bonds and would be capitalized from gasoline tax revenues, the Section 40-12-248 revenues, federal funds, contributions from government units, investment earnings, and bond proceeds. Eligible projects must cost more than $5 million and be selected based on criteria like local support, economic impact, and feasibility. Financing would be repaid from project revenues and bank funds, not from the state’s general funds or tax power, and the bank would undergo annual audits and report to the Governor and Legislature.

Who It Affects

• Local and state government units (cities, counties, and other public bodies) that would borrow money from the bank and repay loans for qualified transportation projects.
• Investors and financial institutions that would buy bonds issued by the bank, which are secured by bank revenues and project revenues.

Key Provisions

• Establishes the Alabama Transportation Infrastructure Bank as a public corporation.
• Board of seven voting members: the DOT Director (ex officio), four Governor appointees (one is chair), one House member, and one Senate member.
• Capitalization sources include gasoline tax revenues (up to a specified amount), revenues from Section 40-12-248, federal funds, contributions from government units, investment earnings, and bond proceeds.
• Eligible projects are highways, roads, bridges, and mass transit projects costing more than $5 million.
• Bank may issue bonds and provide loans or other financial assistance through financing agreements with terms tied to the project life.
• Loans and bonds are repaid from project revenues or bank funds; bonds are secured by revenues or loan obligations and do not pledge the state's full faith and credit.
• Project selection includes criteria such as local support, expected economic and transportation benefits, feasibility, and repayment ability; a minimum local financial contribution may be required.
• Bonds may be secured by trust indentures and bank revenues; the bank can pledge assets and establish reserves; bond terms and protections are defined in the indenture.
• The bank is exempt from state taxes; its bonds are considered legal investments and can be deposited by public officers and entities.
• Annual audits by a CPA and an annual report to the Governor and Legislature are required; compliance with federal law is required where applicable.
• If a government unit fails to remit amounts owed, the State Treasurer may withhold state funds to cover the debt.
• Contracts funded with bank money must be performed by Alabama residents.
• The act notes the bank is not a traditional bank and is not authorized to take public deposits; it operates under the Administrative Procedure Act.

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