HB311 Alabama 2018 Session

Summary

Primary Sponsor

Margie WilcoxRepresentative

Republican

Session

Regular Session 2018

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

HB 311 would create the Alabama Transportation Infrastructure Bank, outline how it is funded and run, and let government units borrow or obtain other financial help for transportation projects without making the state legally liable for the debts.

What This Bill Does

The bill establishes the bank and a seven-member board to oversee it. It authorizes irrevocable appropriation of certain taxes and fees (such as gasoline tax revenue, motor vehicle license taxes and fees, diesel and gasoline taxes, and identification marker fees), plus other funds, to capitalize the bank and pay bonds and other financial assistance. It allows the bank to issue bonds and provide loans or other financial help to government units for qualified transportation projects, with repayments secured by project revenues or other assets, and with bonds not constituting a state debt. It also sets rules for fund management, audits, possible credit enhancements, and the bank’s dissolution if no obligations remain.

Who It Affects

• Local government units (municipalities, counties, and other public bodies) that may borrow from the bank or receive other financial assistance for qualified transportation projects, and that may pledge their revenues or full faith and credit under authorized terms.
• State government and Alabama taxpayers, because the bank would be capitalized with irrevocable appropriations of tax and fee revenues and federal funds, and the bonds would be limited obligations of the bank, not state debt, with oversight and potential transfers of net earnings to the state after obligations are paid.

Key Provisions

• Defines core terms: bank, board, bonds, government unit, eligible project, eligible cost, loan, and other financial assistance.
• Creates a board of seven voting members, including the Transportation Director as chair and the State Finance Director as secretary, plus four gubernatorial appointees and one House and one Senate member.
• Authorizes irrevocable appropriation of specific tax revenues and fees (gasoline tax proceeds, motor vehicle license taxes/fees, diesel/gasoline taxes, identification marker fees, and related funds) to capitalize the bank and pay bonds and financial assistance.
• Establishes priority and potential subordination of pledges to existing authorities (Alabama Federal Aid Highway Finance Authority and Alabama Highway Finance Corporation) in certain cases.
• Allows the bank to issue bonds, secure them with various forms of credit enhancement, and state that bonds are not debts of the state but limited obligations payable from bank revenues and assets.
• Permits the bank to provide loans and other financial assistance, including refinancing of temporary project financing, secured by project revenues or other pledged assets.
• Provides that the bank operates as a nonprofit, with net earnings not benefiting individuals or firms, and allows net earnings to revert to the state after obligations are fully paid.
• Requires governance, audits, and withholding of state funds by the Finance Director if a government unit defaults on payments.
• Authorizes additional sections to permit other financial assistance and instruments, confirms the bank’s ability to be dissolved when no obligations remain, and specifies administration and investment rules for bank funds.

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