HB346 Alabama 2015 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Victor Gaston
Republican
Session: Regular Session 2015
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: HB346 creates the Alabama Transportation Infrastructure Bank to finance major transportation projects by providing loans and other financial help to government entities, funded by gasoline taxes, federal funds, and other sources, with annual audits and reports.
What This Bill Does
It establishes a state bank that can lend money or provide other financial assistance to government units for eligible highway, road, bridge, and mass transit projects. It sets up capitalization sources, allows the bank to issue bonds, and requires an annual audit and report to the Governor and Legislature. It also creates criteria for selecting qualified projects, including local financial support, repayment ability, and public benefits, and means to withhold state funds to cover defaults.

Who It Affects
Government units (cities, counties, and other public entities) that may receive loans or other financial assistance for qualified transportation projects, and must meet local support requirements and may use project revenues or taxes as security for those obligations; they could be subject to state-withheld funds if they fail to remit amounts due.
Alabama residents and taxpayers who benefit from improved transportation infrastructure and economic development, with the program designed to finance projects without creating general state debt and by using bond proceeds and taxable/non-taxable mechanisms as governed by the act.

Key Provisions
Establishes the Alabama Transportation Infrastructure Bank to fund and finance major qualified transportation projects through loans and other financial assistance.
Board of seven directors (DOT Director ex officio; four Governor appointees; one House member; one Senate member) with a chair and diversity considerations; quorum and governance rules.
Capitalization sources include up to one cent per gallon gasoline tax revenues from the Public Road and Bridge Fund, revenues from Section 40-12-248, federal funds, contributions from government units and others, loan repayments, bond proceeds, and other lawful sources.
Bank may issue bonds to fund qualified projects; bonds are not a general state debt and are payable only from bank revenues; bonds may be secured by loan obligations, project revenues, grants, or other assets.
Eligible projects include highways, roads, bridges, and mass transit projects with costs over $5 million; the bank selects qualified projects and requires minimum local financial support and considers feasibility, repayment ability, and economic benefits.
Qualified borrowers (government units) enter financing agreements; may pledge project revenues and related taxes to secure obligations; board sets loan terms and rates and ensures compliance with federal requirements where applicable.
Annual independent audits are required; the bank must report to the Governor and Legislature (and federal agencies as required).
Withholding provisions allow the State Treasurer to withhold state funds to recover amounts owed to the bank if a government unit default occurs, with certain exceptions.
The bank is an essential governmental function and not subject to traditional banking taxes or normal state banking regulation; bonds receive special treatment and protections, including tax-exempt status and investment eligibility for various public entities.

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