SB111 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Arthur OrrSenator
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: SB111 creates the Alabama Transportation Infrastructure Bank to finance major highways and transportation projects using loans, bonds, and other financial tools, funded by gasoline tax revenues and other public funds.
What This Bill Does
It establishes a public corporation with a seven-member board to finance qualified transportation projects. It authorizes the bank to issue bonds and provide loans and other financial assistance to government units for eligible projects, with terms based on the project life and a required level of local financial support. It outlines capitalization sources including gasoline tax revenue, state and federal funds, and contributions from government units, and requires annual reporting and audits. It also clarifies that bonds are repaid from bank and project revenues and do not create state debt or rely on state taxing power, and that the bank is not a traditional public bank for public deposits.

Who It Affects
Government units (cities, counties, and other public bodies) that may receive loans or other financial assistance for qualified transportation projects, subject to local financial support, feasibility, and repayment considerations.
Alabama taxpayers and public finances, since funding comes from gasoline tax revenues, other highway funds, federal funds, and bond proceeds; bonds are payable from bank revenues and not the full faith and credit of the state, with the state able to withhold funds from defaulting units if allowed by contracts and law.

Key Provisions
Establishes the Alabama Transportation Infrastructure Bank as a public corporation governed by a seven-member board (including the DOT Director, four Governor-appointed members, one House member, and one Senate member) with diversity requirements.
Authorizes the bank to finance qualified projects through loans and other financial assistance, defining eligible projects (highways, roads, bridges, mass transit) and requiring local financial support and feasibility analyses to determine qualifications.
Specifies capitalization sources: up to 1 cent per gallon from gasoline taxes (Public Road and Bridge Fund), remaining balances in state highway funds, federal funds, contributions from government units, and bond proceeds; includes terms for repayment and use of funds.
Allows the bank to issue bonds (and other debt) secured by bank revenues or project revenues, with bonds not constituting state debt and having terms up to 40 years; bonds are payable solely from pledged revenues and may be backed by trust indentures.
Gives the bank broad powers to manage finances, establish loan terms, collect fees, and enter into financing agreements; requires annual reporting to the Governor, Legislature, and federal agencies, plus annual independent audits; earnings and funds are administered through the State Treasurer.
Imposes a funding-withholding mechanism where the State Treasurer may withhold state funds from a government unit that fails to remit amounts due to the bank, with safeguards to respect existing contracts and federal law.
Includes a local-content requirement for contracts funded with bank funds to employ Alabama residents, and sets criteria the board may use to prioritize projects (local support, economic development, repayment ability).
Effective date set as law on the first day of the third month after passage and final approval.

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