SB100 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB 100 expands and reorganizes the Alabama Transportation Infrastructure Bank to capitalize it with new state revenue streams and to back transportation bonds and other financial assistance, while keeping the bank as a nonprofit and not a direct state debt.

What This Bill Does

It authorizes additional state revenue sources (such as gasoline, diesel, motor vehicle license and registration fees, motor carrier taxes, and identification marker fees) to be irrevocably appropriated to capitalize the bank and pay debt service. It allows the bank to issue bonds and provide other financial assistance, with bonds treated as limited obligations of the bank and not the state’s debt, and it clarifies that the state’s full faith and credit is not pledged. It changes how the bank operates by allowing funds to be held by the State Treasurer or a commercial bank, enabling withholding of state funds on default, and requiring audits; it designates the bank as a nonprofit corporation and provides for dissolution when no obligations remain, plus new sections to govern additional financial activities.

Who It Affects

• Government units (municipalities, counties, and other public bodies) that may borrow from the bank and may pledge revenues or, if authorized, their full faith and credit to secure obligations, with the possibility of the state withholding funds if a default occurs.
• The general public and state finances, as bonds would be limited obligations of the bank (not state debt), and certain revenue streams pledged to capitalize the bank are irrevocably appropriated, affecting how funds are allocated and budgeted.

Key Provisions

• Irrevocable appropriation of specific tax revenues and fees (gasoline and diesel taxes, motor vehicle license taxes and registration fees, motor carrier taxes, and identification marker fees) to capitalize the bank and pay debt service, with priority restrictions relative to other authorities.
• Pledges of bank revenues may be subordinate to pledges for bonds of the Alabama Federal Aid Highway Finance Authority and the Alabama Highway Finance Corporation, under defined conditions.
• Definitions expanded and bank operations clarified, including that a borrower may pledge revenue and, if authorized, its full faith and credit to secure bank obligations; the bank may establish funds and accounts with the State Treasurer or a commercial bank; the Finance Director can direct withholding of funds on default; audits are required.
• Bonds and other financial instruments may be secured by credit enhancements and other assets; bonds are not state debts and the full faith and credit or taxing power of the state is not pledged; the requirement that bonds be issued by the State Treasurer is removed.
• The bank is designated as a nonprofit corporation; net earnings may not inure to individuals, and after ensuring debt service, remaining earnings may go to the state; dissolution provisions are included.
• New sections 23-7-29 to 23-7-31 authorize additional financial assistance, financing agreements (including trust indentures), and the procedures for pledging revenues and securing obligations, with dissolution provisions if no obligations are outstanding.

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