SB385 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB385 would capitalize and expand the Alabama Transportation Infrastructure Bank by allowing additional state revenue to be pledged for bonds and other financial support for transportation projects, and would change how the bank is run and overseen.

What This Bill Does

The bill allows additional revenue sources, including certain gasoline and diesel taxes, motor vehicle license taxes and registration fees, motor carrier taxes, and identification marker fees, to be irrevocably appropriated to capitalize the bank and to pay debt service on bonds, with funding decisions approved by the Director of Transportation and the Governor. It may place pledges in a subordinate position to pledges made by the Alabama Federal Aid Highway Finance Authority and the Alabama Highway Finance Corporation under certain conditions. It updates definitions and governance, allows the bank to issue bonds and other financial assistance, clarifies that bonds are not a state debt, and adds audits, nonprofit status, dissolution provisions, and broader authority to issue or secure other financial instruments.

Who It Affects

• Government units (cities, counties, and other public entities) that may borrow from the bank to finance qualified highway, road, or mass transit projects, with new rules on revenue pledges and potential use of full faith and credit.
• State residents and taxpayers whose gasoline, diesel, and other motor vehicle-related revenues, as well as identification marker fees, could be irrevocably directed to capitalize the bank and service its debt, affecting how transportation funding is sourced.

Key Provisions

• Adds Sections 23-7-29, 23-7-30, and 23-7-31 and amends existing sections to expand capital sources for the Alabama Transportation Infrastructure Bank (ATIB), allowing irrevocable appropriation of gasoline tax revenues, motor vehicle license taxes and registration fees, diesel and gasoline taxes, motor carrier tax revenues, and identification marker fees for bank capitalization and debt service.
• Pledges of these revenues can be subordinate to pledges by the Alabama Federal Aid Highway Finance Authority and the Alabama Highway Finance Corporation under certain conditions.
• Defines key terms (government unit, qualified borrower, qualified project) and allows borrowers to pledge revenues and, if authorized, their full faith and credit to secure bank obligations; authorizes audits by the Department of Examiners of Public Accounts in addition to independent audits; permits bonds to be secured by other credit instruments; clarifies bonds are not state debts and removes the requirement that bonds be issued by the State Treasurer.
• Authorizes the bank to provide other financial assistance and financing instruments, to operate as a nonprofit corporation, to dissolve when no obligations are outstanding with assets transferring to the state, and to ensure that net earnings do not inure to private individuals or firms.

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