HB530 Alabama 2017 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

Regular Session 2017

Title

Transportation Infrastructure Bank, funding to capitalize and pledge toward bonds, add road and bridge funds authorized to be pledged, operation of bank further provided for, Secs. 23-7-2, 23-7-29, 23-7-30, 23-7-31 added; Secs. 23-7-6, 23-7-7, 23-7-9, 23-7-15, 23-7-17, 23-7-18, 23-7-19, 23-7-20, 23-7-21am'd.

Summary

HB530 would capitalize and expand the Alabama Transportation Infrastructure Bank by allowing new revenue pledges, make the bank a nonprofit, and clarify that bank obligations are not state debt.

What This Bill Does

The bill would irrevocably appropriate additional revenue sources—such as certain gasoline and diesel taxes, motor vehicle license taxes and registration fees, and identification marker fees—to capitalize the bank and pay debt service on its bonds. It allows the bank to pledge these revenues to secure bonds and other financial assistance, with some pledges remaining subordinate to existing authorities. It defines key terms (government unit, qualified project, qualified borrower), broadens audit rights, and enables the bank to issue bonds and other financial instruments while not creating state debt. It also establishes the bank as a nonprofit corporation, outlines its dissolution, and removes the requirement that bonds be issued by the State Treasurer.

Who It Affects

• Local government units (cities, counties, and other public bodies) that may borrow from the Alabama Transportation Infrastructure Bank to finance, construct, operate, or own transportation projects, and may pledge their revenues or, if authorized, their full faith and credit to secure bank obligations.
• State-level authorities and taxpayers, since the bill relies on irrevocable capitalizations from specific tax revenues and sets approval roles for the Director of Transportation and the Governor; it also clarifies that bank bonds are not state debts and are payable only from bank revenues, which could influence state finances and revenue allocations.

Key Provisions

• Adds Sections 23-7-29, 23-7-30, and 23-7-31 to authorize the bank to provide other financial assistance and to enter financing arrangements, including trust indentures.
• Authorizes irrevocable appropriation and pledges of gasoline tax revenues, motor vehicle license taxes and registration fees, diesel and gasoline excise taxes, and identification marker fees to capitalize the bank and to pay debt service, with the Director of Transportation and Governor approval.
• Pledges of these revenues may be subordinate to pledges by the Alabama Federal Aid Highway Finance Authority and the Alabama Highway Finance Corporation under certain conditions.
• Defines government unit, qualified project, and qualified borrower; allows borrowers to pledge revenues and, if authorized, full faith and credit for bank obligations.
• Allows audits by the Department of Examiners of Public Accounts in addition to independent auditors; bonds may be secured by other forms of credit instruments; bonds are not a debt of the state.
• Delinks bonds from being issued by the State Treasurer; clarifies that pledges securing bonds can also secure other financial assistance; pledges are valid and binding from the time they are made, with no need for recording to perfect the pledge.
• Requires the bank to be a nonprofit corporation; net earnings not inure to individuals; outlines dissolution procedures and transfer of assets to the state upon dissolution.
• Provides for bank administration by the Department of Transportation as agent, with rule-making authority and ability to enter contracts related to operation and financing.

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