SB86 Alabama 2018 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2018

Title

Alabama Road and Bridge Rehabilitation and Improvement Authority established to finance road and bridge improvements, authority to issue bonds, etc.

Summary

SB 86 creates the Alabama Road and Bridge Rehabilitation and Improvement Authority to fund road and bridge projects across the state using bonds paid from new gasoline and diesel taxes.

What This Bill Does

It establishes a public corporation (ATRIP-II Authority) that can issue up to $2.45 billion in bonds to finance local and state road and bridge projects. The bonds are repaid solely from proceeds of new gasoline and diesel fuel taxes and fees, not from the state’s general funds. About $1.25 billion would finance county and municipal projects and $1.2 billion would finance state (ALDOT) projects, with separate funds to manage debt service and project costs. Counties, municipalities, and ALDOT must follow planning, bidding, and reporting rules, including using ALDOT-approved contractors and meeting diversity and transparency requirements.

Who It Affects

• Counties and municipalities receive bond proceeds for ATRIP-II projects and must submit annual ATRIP-II plans, maintain project records, post plans publicly, and use ALDOT-approved contractors; funding distributions are determined by population and county-wide formulas.
• The State and ALDOT (and through it taxpayers) are responsible for providing pledged fuel tax proceeds to back the bonds; ALDOT administers state projects funded under the act, and bonds are not considered a general obligation of the state.

Key Provisions

• Establishes the Alabama Road and Bridge Rehabilitation and Improvement Authority (ATRIP-II Authority) to finance road and bridge projects through debt backed by new gasoline and diesel tax proceeds.
• Authorizes bonds up to $2.45 billion: $1.25 billion for county/municipal ATRIP-II projects and $1.2 billion for ALDOT/state projects; bonds can be issued in series with maturities up to 15 years and may be refunded.
• Creates the ATRIP-II Projects Special Fund and the ALDOT Projects Special Fund to pay debt service first, cover administration costs second, and fund projects third; net proceeds are distributed to counties, municipalities, and ALDOT per specified formulas.
• Distributes net bond proceeds: 30% to municipalities by population; 70% to counties (divided 45.45% equally among all counties and 54.55% by county population, with additional allocations from remaining funds to counties that haven’t reached $10 million in prior allocations).
• Allows up to 20% of county/municipal bond proceeds to be used as matching funds for federal projects; rest of funds follow project plans and matching rules.
• Requires counties and municipalities to adopt annual ATRIP-II plans, post them publicly, and report on ATRIP-II expenditures and project status; contracts must be awarded to ALDOT-approved contractors with DBE goals and reporting.
• Bonds are payable only from pledged tax proceeds and not from the state’s general funds or credit; the act provides tax exemptions for the authority and sets annual appropriations for debt service from pledged taxes.
• Provides oversight and accountability through the ATRIP Committee and the ATRIP Supplemental Municipal Allocation Committee, with diversity hiring requirements and annual reporting to state leaders.
• Dissolution allowed when no bonds are outstanding, with assets transferring to the State; act takes effect immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities