SB385 Alabama 2017 Session

Summary

Primary Sponsor

Arthur Orr Senator

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.

Description

Under existing law, the Alabama Transportation Infrastructure Bank was established pursuant to Act 2015-50. Various sources of funding were authorized to capitalize the bank including revenue from one cent of the gasoline tax and a portion of the revenue from the license and registration fees on trucks and truck tractors. The bank is authorized to make loans to units of government to construct, operate, or own transportation projects. The bank is authorized to raise funds for qualified projects by the issuance of bonds. At the current time, funding has not been made available to capitalize the bank.

This bill would further provide for the Alabama Transportation Infrastructure Bank. The bill authorizes additional tax revenue to be pledged to pay and secure revenue bonds issued by the bank as determined by the Director of Transportation and approved by the Governor, including certain taxes on motor vehicle licenses and registration, certain taxes on diesel fuel and gasoline, and certain fees on identification markers. These taxes and fees and the prior taxes and fees authorized to capitalize the bank would be irrevocably appropriated to capitalize the bank and pay the debt service on bonds as determined by the director and approved by the Governor. Under certain conditions, pledges of the revenue would be subordinate to the pledges of the revenue by the Alabama Federal Aid Highway Finance Authority and the Alabama Highway Finance Corporation.

The bill would otherwise provide for the operation of the bank, including the following: (1) Provide for the definitions of government unit, qualified project, and qualified borrower; (2) Specify that a borrower may pledge any revenue and, if authorized, its full faith and credit for obligations of the bank; (3) Authorize audits by the Department of Examiners of Public Accounts in addition to independent auditors; (4) Authorize bonds of the bank to be secured by other forms of credit instruments; (5) Clarify the bonds would not be a debt of the state; (6) Delete the requirement that bonds be issued by the State Treasurer; (7) Specify that any pledge to secure bonds applies to a pledge to secure other financial assistance.

The bill would also add provisions relating to the granting of other financial assistance and the execution of other financial instruments, specify that the bank would be a nonprofit corporation, and provide for the dissolution of the bank.

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Subjects

Transportation Department