SB 86

This bill would establish the Alabama Road and Bridge Rehabilitation and Improvement Authority for the purposes of establishing a local and state program for financing the rehabilitation and improvement of roads and bridges throughout the state by the issuance of the debt obligations which shall be payable solely from proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable in whole or in part to the authority by an act of the Legislature

To provide for the establishment and incorporation of the Alabama Road and Bridge Rehabilitation and Improvement Authority; to establish the ATRIP-II Projects Special Fund; to provide that the authority may issue bonds in an aggregate principal amount not exceeding $2,450,000,000, of which $1,250,000,000 thereof shall be issued to finance county and municipal road and bridge rehabilitation and improvement projects and the balance thereof issued to finance state road and bridge rehabilitation and improvement projects, and to provide for the use of any proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable to the authority in whole or in part by an act of the Legislature to pay debt service on such bonds and other obligations issued to provide funds for Alabama Transportation Rehabilitation and Improvement (ATRIP) Projects and Alabama State Department of Transportation Projects (as defined herein) and to pay the costs of such projects and the expense of issuing such bonds and other obligations; to provide for additional duties of the ATRIP Committee heretofore established in respect of county and municipal road and bridge rehabilitation and improvement projects to be financed by the authority; to provide procedures for the proposal to the authority by the State Department of Transportation of road and bridge improvement projects to be financed with proceeds of the bonds authorized to be issued hereby; and to provide that the authority may issue refunding bonds to prepay and retire any bonds and other obligations of the authority.

Section 1

It is the intention of the Legislature by the passage of this act to authorize the incorporation of the Alabama Road and Bridge Rehabilitation and Improvement Authority for the purposes of establishing a program for financing the rehabilitation and improvement of roads and bridges throughout the state by the issuance of the obligations of such corporation, which shall not be debts of the State of Alabama but shall be payable solely from proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated and made payable in whole or in part to the authority by an act of the Legislature, and to provide for the use of the proceeds of any such taxes and fees not needed for payment of debt service on such obligations for the purposes set out herein.

Section 2

Definitions. When used in this act, the following words and phrases shall have the following respective meanings unless the context clearly indicates otherwise: (1) ALDOT. The State Department of Transportation provided for in Section 23-1-20, Code of Alabama 1975, as amended. (2) ALDOT PROJECTS. Road and Bridge Rehabilitation and Improvement Projects submitted to the authority for funding in accordance with the provisions of Section 12. (3) ALDOT PROJECTS SPECIAL FUND. A special fund in the State Treasury entitled the "State Department of Transportation Road and Bridge Rehabilitation and Improvement Program Fund" which shall be held by the State Treasurer, as custodian therefor, and applied solely as provided in this act. (4) ATRIP COMMITTEE. The Alabama Transportation Rehabilitation and Improvement Program Committee established pursuant to Section 23-1-435, Code of Alabama 1975, as amended. (5) ATRIP SUPPLEMENTAL MUNICIPAL ALLOCATION COMMITTEE. The ATRIP Supplemental Municipal Allocation Committee established pursuant to the provisions of subsection (b) of Section 8. (6) ATRIP-II PROJECTS. County and municipal road and bridge rehabilitation and improvement projects submitted to and received by the ATRIP Committee or the ATRIP Supplemental Municipal Allocation Committee pursuant to the provisions of Section 8 for funding in accordance with the provisions of this act. (7) ATRIP-II PROJECTS SPECIAL FUND. A special fund in the State Treasury entitled the "ATRIP-II Projects Special Fund" which shall be held by the State Treasurer, as custodian therefor, and applied solely as provided in this act. (8) AUTHORITY. The Alabama Road and Bridge Rehabilitation and Improvement Authority, a public corporation and instrumentality of the state authorized to be organized under the provisions of this act. (9) BOARD OF DIRECTORS. The board of directors of the authority. (10) BONDS. Any bonds, authorized to be issued pursuant to the provisions of this article including refunding bonds as herein authorized. (11) CORPORATION. The Authority. (12) NET PROCEEDS. The entire proceeds from a new levy of gasoline and diesel fuel excise taxes and fees less the cost of collection and less any refunds thereof; and with reference to bonds or other obligations issued and sold by the Authority, the aggregate principal amount thereof less costs of issuance and discount, if any, plus original issue premium, if any. (13) OBLIGATIONS. Any bonds, temporary bonds or notes authorized to be issued by the Authority. (14) PLEDGED TAXES. That portion of any new levy of gasoline or diesel fuel excise taxes and fees pledged hereby or pursuant hereto for the payment of bonds and other obligations of the authority. (15) PROJECT COSTS. As applied to any road and bridge rehabilitation and improvement project, all costs of construction or acquisition of any part thereof, including, but without limitation to, the costs of supervising, inspecting and constructing any such project and all costs and expenses incidental thereto, the costs of locating, surveying and mapping, resurfacing, restoration and rehabilitation, acquisition of rights-of-way, and improvements which directly facilitate and control traffic flow, including grade separation of intersections, widening of lanes, channelization of traffic, and traffic-control systems. (16) ROAD AND BRIDGE REHABILITATION AND IMPROVEMENT PROJECTS. Projects for the rehabilitation, repair, improvement, construction or replacement of roads and bridges in the state, the costs of which may be paid through the issuance of bonds by the Authority or with proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated, or made payable in whole or in part to the Authority pursuant to an act of the Legislature. (17) REFUNDING BONDS. Bonds issued to refund or prepay outstanding bonds and other obligations of the Authority. (18) STATE. The State of Alabama. (19) SUPPLEMENTAL ALLOCATION MUNICIPAL ATRIP-II PROJECTS. ATRIP-II projects for payment of the costs of road and bridge rehabilitation and improvement projects to be undertaken within the corporate limits and police jurisdictions of municipalities in the state submitted by municipalities to the ATRIP Supplemental Municipal Allocation Committee pursuant to the provisions of paragraph (2) of subsection (b) of Section 8.

Section 3

(a)(1) The Legislature finds that it is necessary, desirable, and in the public interest to authorize the creation of a public corporation to issue bonds or other obligations for the purpose of providing funds to pay the costs of road and bridge rehabilitation and improvement projects in the state. The authority to be created as provided in this section shall be authorized to pledge proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable in whole or in part to the authority by an act of the Legislature, for the payment of its bonds and other obligations. The proceeds to be pledged and applied as herein provided shall be the sole source of payment for such bonds and other debt obligations, and to the extent not needed for such purpose, shall be used as provided for road and bridge rehabilitation and improvement projects as provided for in this act. (2) a. To become a public corporation and instrumentality of the State of Alabama, the State Treasurer, the State Finance Director, the Director of the ALDOT, a currently-serving Alabama county commissioner appointed by the Speaker of the House of Representatives, and a currently-serving mayor of an Alabama city or town appointed by the President Pro Tempore of the Senate, shall, prior to July 1, 2018, present to the Office of the Secretary of State an application setting forth all of the following: 1. The name, official designation, and official residence of each applicant with, for elected applicants, a certified copy of the commission evidencing the applicant's right to office, and, for appointed applicants, a certified copy of the document or instrument of appointment of the applicant. 2. The name of the proposed public corporation that shall be the Alabama Road and Bridge Rehabilitation and Improvement Authority. 3. The location of the principal office of the proposed public corporation, that shall be in the City of Montgomery, Alabama. 4. Any other matter the applicants may choose to include that is not inconsistent with this act or the other laws of the State of Alabama. b. The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the State of Alabama to take acknowledgements to deeds. If the Secretary of State shall find the application substantially complies with this section, the Secretary shall record the same in an appropriate book of records in the office thereof, whereupon the applicants shall constitute a public corporation and instrumentality of the State of Alabama under the name stated in the application, and the Secretary of State of Alabama shall issue a certificate of incorporation under the Great Seal of the State of Alabama and shall record the certificate with the application. (3) The authority and the directors, employees, members, and officers of the authority are immune from suit to the same extent as the State of Alabama and the agencies, instrumentalities, officers, and employees thereof, subject to Section 36-1-12, Code of Alabama 1975, as amended. (4) a. The applicants named in the application shall constitute the initial members of the authority and the initial board of directors of the authority. The respective successors in office of the State Treasurer, the State Finance Director and the Director of the ALDOT, by virtue thereof, shall serve as ex officio members of the authority and directors of the authority. The appointed members and directors of the authority shall each serve for four-year terms expiring on the later of June 30 four years after the appointment thereof or until a successor is appointed by the President Pro-Tempore of the Senate or Speaker of the House of Representatives, as appropriate, pursuant to the same appointment method provided for in subdivision (2). Any vacancy in a directorship held by an appointed director shall be filled in the same manner within 60 days of such vacancy for the unexpired term applicable to such vacancy. Each appointed director shall reside within the State of Alabama and may be reappointed for successive terms. No director shall draw any salary or other compensation for any service rendered or duty performed as a director. An appointed director may be removed from office as a director by the official appointing such director for any of the causes specified in Section 173, or any successor provision, of the Constitution of Alabama of 1901, as amended. b. The authority shall be governed by its board of directors and all powers of the authority shall be exercised by the board of directors or pursuant to its authorization. The Director of the ALDOT shall be the president of the authority, the State Finance Director shall be the vice-president of the authority and the State Treasurer shall be the secretary of the authority. A majority of the directors shall constitute a quorum for the transaction of business. All proceedings and minutes of meetings of the board of directors shall be reduced to writing, signed by the president or vice-president of the authority and a majority of directors present at such proceedings and meetings, and recorded in the Office of the Secretary of State. Such proceedings and minutes, when certified by the secretary of the authority, shall be received in all courts as prima facie evidence of the matters therein certified. (5) The authority shall have all rights, authority and powers granted thereto in this act and all rights, authority and powers granted by the laws of the State of Alabama to public and private corporations that are not in conflict with the public purposes of this act, including, without limitation, the authority and power: a. To have succession by its corporate name until dissolved as provided in this act. b. To institute and defend legal actions, provided the authority, and the directors, agents, employees and members thereof, acting on behalf of the authority, may not be sued in any nisi prius court other than the courts of the county in which is located the principal office of the authority. c. To adopt bylaws and regulations consistent with this act and to adopt and use a corporate seal. d. To sell and issue its bonds and other obligations to finance payment of the costs of ATRIP-II projects and payment of the costs of ALDOT projects, payable from the sources, and on the terms, as provided in this act, and to sell and issue refunding bonds as provided in this act. e. To pledge any proceeds from any new levy of gasoline and diesel fuel excise taxes and fees to be made available and appropriated to the authority as the sole source of payment of, and security for, the bonds and other obligations of the authority. f. To provide for and obtain credit ratings for bonds and other obligations of the authority as well as credit enhancement and supplemental security therefor, including insurance policies, guaranties, letters of credit, surety bonds and similar instruments. g. To enter into and perform such agreements, contracts, indentures, instruments, mortgages, and security agreements, as shall be necessary or desirable to provide for the issuance and security of bonds of the authority, to exercise any authority or power of the authority, or to carry out any public purpose of the authority. h. To acquire, by devise, gift, lease, purchase, or otherwise, hold, and convey, with or without consideration, to the State of Alabama and to any political subdivision, public body, or public corporation in the State of Alabama, tangible and intangible property of any description. i. To appoint, contract with, employ, and provide for the compensation, without competitive bid, of accountants, attorneys, architects, consultants, engineers, financial advisors, investment bankers, trustees, and underwriters as the authority determines to be necessary or desirable for the business of the authority. The authority shall hire or contract with attorneys, fiscal or financial advisors, trustees, paying agents, investment bankers, banks, and underwriters that reflect the racial and ethnic diversity of the state. A report of all persons or companies hired by the authority shall be submitted to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Senate Minority Leader, and the House of Representatives Minority Leader on a quarterly basis. j. To provide for insurance as the directors determine to be necessary or desirable. k. As security for payment of the principal of and the interest on its bonds, to pledge any funds or revenues from which its bonds may be made payable and to arrange for and provide such additional security for its bonds, including letters of credit, bond insurance policies, surety bonds and the like, as the board of directors shall determine to be necessary or desirable; l. To borrow money and issue its bonds in evidence thereof subject to the provisions of this article.

Section 4

(a) Bonds of the authority shall: (1) Be solely and exclusively limited obligations of the authority payable solely from and secured by a pledge of the amounts of the proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated, or made payable to the authority by or pursuant to an act of the Legislature, and shall never constitute or give rise to a general obligation of the authority or an indebtedness, obligation, pecuniary liability, or charge against the general credit or taxing powers of the State of Alabama or any political subdivision thereof or therein. (2) Be construed to be negotiable instruments, although payable solely from a specified source. (3) Be signed by the president or vice-president of the authority and attested by the secretary under the seal of the authority affixed thereto, provided that facsimiles of the signatures of such officers may be reproduced on such bonds in lieu of manual signatures. (4) Be issued from time to time or at any time as the authority shall determine, in an aggregate principal amount not exceeding, not including refunding bonds, two billion four hundred fifty million dollars ($2,450,000,000), of which one billion two hundred fifty million dollars ($1,250,000,000) thereof shall be for payment of costs of ATRIP-II projects and expenses of issuance of the bonds and one billion two hundred million dollars ($1,200,000,000) thereof shall be for payment of costs of ALDOT projects and expenses of issuance of the bonds, in such series, forms and denominations, of such maturities as shall not exceed 15 years from the dated date of each thereof, bearing such fixed or variable rates of interest, being subject to redemption, and containing such other terms and provisions as shall be approved by the Board of Directors of the authority. (5) Be sold at public or private negotiated sale. (6) Be a legal investment for all governmental entities, political subdivisions and public corporations in the State of Alabama, and administrators, executors, guardians, persons, or organizations acting in a fiduciary capacity unless otherwise directed by a court of competent jurisdiction. (b) The authority shall be authorized to sell and issue its refunding bonds for the purpose of refunding, redeeming, paying and retiring any matured or unmatured bonds or other obligations of the authority then outstanding, which refunding bonds may be issued at such times, and in such series, forms denominations and aggregate principal amounts as the authority shall determine, the proceeds remaining after paying the expenses of their issuance shall be used only for such purposes set forth above in this subsection (b) and to pay any premium that may be necessary to be paid in order to redeem, pay or retire the bonds or other obligations of the authority to be refunded.

Section 5

For the benefit of the State of Alabama and the citizens thereof, there is hereby created a special fund in the State Treasury entitled the "ATRIP-II Projects Special Fund" which shall be held by the State Treasurer, as custodian therefor, and applied solely as provided in this act. There shall be deposited in the ATRIP-II Projects Special Fund, when and as received, one-half of all net proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable in whole or in part to the Authority by an act of the Legislature. No other funds from any source shall be deposited in, or credited to, the ATRIP-II Projects Special Fund. All amounts on deposit in, or credited to, the ATRIP-II Projects Special Fund shall be invested as permitted for funds of the State of Alabama, and all earnings, income and profits therefrom shall be held in the ATRIP-II Projects Special Fund and applied solely for the purposes thereof as provided in this act. The amounts on deposit in the ATRIP-II Projects Special Fund shall be applied, and are hereby solely for the following purposes and in the following order: (1) First, as directed by the authority in each fiscal year such amounts at such times as shall be sufficient, with other funds available to the authority therefor, to provide for the due and punctual payment in full of all principal of, premium, if any, and interest on all bonds and other obligations of the authority at any time outstanding (i) which shall have become due and payable and which shall not have theretofore been paid, in a prior fiscal year, and (ii) which shall become due and payable in such fiscal year. (2) Second, to pay the annual costs, if any, of administering the ATRIP-II Projects Special Fund. (3) Thereafter, all remaining moneys in the ATRIP-II Projects Special Fund shall be further distributed as provided in subsection (a) of Section 13 of this act and expended only as provided in that section. Thus, when all bonds and other obligations of the authority shall have been paid in full and in accordance with the terms thereof and of the documents under which those bonds and other obligations were issued, all moneys remaining each year in the ATRIP-II Projects Special Fund shall be applied and distributed as provided in subsection (a) of Section 13 of this act.

Section 6

(a) Any moneys, including proceeds of the authority's bonds, allocated to counties and municipalities pursuant to this act shall be in addition to and shall not diminish any other revenues allocated or distributed from any other source. (b)(1) The net proceeds of bonds and other obligations, other than refunding bonds, issued by the authority, being the proceeds realized upon sale of such bonds after payment therefrom of all expenses, ratings fees, credit enhancement fees, and similar costs of issuance thereof, plus premium, if any, shall be deposited in the State Treasury and disbursed as provided in the proceedings under which such bonds or obligations shall have been issued and as provided in this act. The authority shall establish procedures to account for each county's and each municipality’s portion of the net proceeds of the authority’s bonds and other obligations. Each county and municipality shall obtain the benefit of such proceeds of bonds and other obligations of the authority only in accordance with this act and the proceedings under which such bonds or obligations shall have been issued and shall apply and use such proceeds only for the purposes and as provided in this act. (2) The authority shall sell and issue its bonds and other obligations at such times and in such aggregate principal amounts so as to ensure that, when all of the bonds herein authorized to be issued pursuant to subsection (a) of Section 4 of this act, other than refunding bonds, for the purpose of paying the costs of county and municipal road and bridge improvement and rehabilitation projects, other than those bonds and other obligations issued for the purpose of paying the costs of Supplemental Allocation Municipal ATRIP-II projects, have been issued, the remaining shall be allocated as follows: a. Twenty percent (20%) of the aggregate net proceeds of the authority’s aforesaid bonds for the purpose of paying the costs of county and municipal road and bridge improvement and rehabilitation projects as hereinabove provided, i.e., other than those of such proceeds allocated for Supplemental Allocation Municipal ATRIP-II projects, shall be allocated for distribution among the municipalities in the state on the basis of the ratio of the population of each municipality to the total population of all the municipalities in the state according to the 2010 federal decennial census. b. Eighty percent (80%) of the aggregate net proceeds, shall be distributed as follows: 1. 45.45 percent thereof shall be allocated for distribution for payment of the costs of road and bridge improvement and rehabilitation projects equally among the 67 counties of the state; and 2. 54.55 percent thereof shall be allocated for distribution for payment of the costs of road and bridge improvement and rehabilitation projects among the 67 counties of the state on the basis of the ratio of the population of each county to the total population of the state according to the 2010 federal decennial census.

Section 7

Notwithstanding any other law or provision of this act to the contrary, no county or municipality receiving any proceeds of bonds or other obligations issued by the authority under this act payable from the pledged taxes and fees shall have any obligation, direct, indirect, or contingent, for the repayment of any of the proceeds so received, or for payment of any interest thereon, to the authority or the State of Alabama or any agency, department or instrumentality thereof.

Section 8

(a)(1) In order to assist in carrying out of the purposes of this act and to provide for the repair, maintenance, improvement, replacement, and construction of county and municipal roads and bridges infrastructure under the procedures and requirements set forth herein, the ATRIP Committee created pursuant to Section 23-1-435, Code of Alabama 1975, as amended, is hereby permanently established, any provision of Section 23-1-435, Code of Alabama 1975 to the contrary notwithstanding. Except for Supplemental Allocation Municipal ATRIP-II projects applications for the review of which are required to be made to the ATRIP Supplemental Municipal Allocation Committee pursuant to subsection (2) of this section, the ATRIP Committee is hereby charged with reviewing all ATRIP-II projects for funding through the issuance of bonds and other debt obligations issued by the authority, applications to the ATRIP Committee for review of which are made by counties and municipalities in the state pursuant to procedures developed and adopted by the ATRIP Committee and that meet the criteria for funding as set forth in subsection (a) of Section 9 or subsection (a) of Section 10 of this act. (2) ATRIP-II projects, applications for the review of which are made to the ATRIP Committee and that fall within the aforesaid criteria, shall be certified to the authority from time to time by the Chair of the ATRIP Committee, and thereafter the costs of the certified ATRIP-II projects shall be eligible for financing through the issuance by the authority of its bonds or other obligations allocated by the authority for such ATRIP-II projects as authorized hereby in an aggregate principal sum not exceeding one billion two hundred million dollars ($1,200,000,000). (b)(1) There is hereby created the ATRIP Supplemental Municipal Allocation Committee which is hereby charged with reviewing all Supplemental Allocation Municipal ATRIP-II projects. The Committee shall consist of three members appointed by the Governor, one of whom shall be the Director of the ALDOT who shall serve as the chair of the Committee, three members appointed by the Alabama League of Municipalities, each of whom shall be the mayor of an Alabama municipality, one member appointed by the Speaker of the House of Representatives, and one member appointed by the President Pro Tempore of the Senate. The appointing authorities shall coordinate their appointments to assure the Committee membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state. All members of the ATRIP Supplemental Municipal Allocation Committee shall be appointed not later than June 1, 2018, and each shall serve until his or her successor is appointed. (2) Any application for the review of Supplemental Allocation Municipal ATRIP-II projects submitted by municipalities in the state to the ATRIP Supplemental Municipal Allocation Committee shall be identified as such in the application and submitted separate and apart from applications made by municipalities for other ATRIP-II projects. Such applications may also include calculations of the differences in funding allocations for bond proceeds for municipal ATRIP-II projects that have been or will be affected by the different ways in which moneys for municipal ATRIP-II projects are allocated pursuant to this act from the method by which moneys had been allocated among municipalities pursuant to the original ATRIP program. It is the intent of the Legislature that the ATRIP Supplemental Municipal Allocation Committee review and take into account the calculations of such differences in prioritizing certifications of Supplemental Allocation Municipal ATRIP-II projects to the Authority. Upon review of applications for Supplemental Allocation Municipal ATRIP-II projects by the ATRIP Supplemental Municipal Allocation Committee, the projects that meet the criteria for funding as set forth in subsection (a) of Section 10 of this act may be certified by the chair of the Committee to the authority as eligible for financing through the issuance by the authority of its bonds or other obligations allocated by the authority for Supplemental Allocation Municipal ATRIP-II projects, up to an aggregate amount of the costs of all such projects proposed to be paid with proceeds of the bonds to be issued by the authority pursuant to this act not exceeding the aggregate principal sum of fifty million dollars ($50,000,000). Supplemental Allocation Municipal ATRIP-II projects, applications for the review of which are made to the ATRIP Supplemental Municipal Allocation Committee and that fall within the aforesaid criteria, shall be certified to the Authority from time to time by the Chair of the ATRIP Supplemental Municipal Allocation Committee, and thereafter the costs of the certified ATRIP-II projects shall be eligible for financing through the issuance by the authority of its bonds or other obligations allocated by the authority for Supplemental Allocation Municipal ATRIP-II projects as authorized hereby. (c) In reviewing projects submitted for funding pursuant to the provisions of this section, the ATRIP Committee and the ATRIP Supplemental Municipal Allocation Committee shall appraise and consider information that shall be submitted by counties and municipalities in their applications with respect to those projects concerning their hiring or contracting with businesses or individuals in carrying out such projects which reflect the racial and ethnic diversity of the state. A report on the hiring and contracting information so submitted by counties and municipalities shall be distributed annually to the Governor, the Senate President Pro Tempore, the Speaker of the House of Representatives, the Senate Minority Leader, and the House of Representatives Minority Leader no later than October 1 of each year, beginning on October 1, 2019.

Section 9

(a) Not more than one billion two hundred fifty million dollars ($1,250,000,000) of the proceeds of the aggregate principal amount of bonds that the authority is hereby authorized in this act to sell and issue shall be utilized for the purpose of paying costs of ATRIP-II projects certified to the authority as provided in Section 8 of this act and to pay the costs of issuance of said bonds. Net proceeds of the sale by the authority of its bonds and other obligations of the authority authorized hereby and issued to pay the costs of county ATRIP-II projects shall be deposited, once allocated for distribution, into a separate fund in the State Treasury to be maintained for the respective benefit of each distributee county and disbursed therefrom only in accordance with procedures therefor adopted by the Board of Directors of the authority, and pursuant to the proceedings under which the bonds and obligations are issued, and shall be utilized for any or all of the following purposes: (1) To replace or repair county bridges which meet all of the following criteria: a. Are posted for traffic below the maximum legal weight limit. b. Have a sufficiency rating of 50 or less on the then current ALDOT bridge inventory. c. Have an average daily traffic count of 200 or more vehicles. (2) To repair or improve any major collectors that are not scheduled as a federal project within two years of the effective date of this act and have not been resurfaced or otherwise significantly rehabilitated since 2000, which projects may include the repair or improvement of a major collector that is partially located within a municipality that has a population of 800 or less according to the 2010 federal decennial census, provided the county in which such municipality is located shall be repairing or improving all or a portion of the major collector that is immediately adjacent to the corporate limits of the municipality on one or both sides and lies along an unincorporated area of the county. (3) To repair or improve any other county-maintained roads with an average daily traffic count of 200 or above and a grade, if graded by the ALDOT, of 75 or below and, after such repairs or improvements are made, to repair and improve other county-maintained roads. (4) To provide matching funds for federal road or bridge projects in the county; provided, however, that no more than 20 percent of such proceeds allocated to a county shall be used for matching purposes. (5) With the consent of the municipalities located in the county, to provide funds for the maintenance, improvement, or replacement of municipally-maintained roads and bridges. (6) To provide funds for joint road or bridge projects with one or more municipalities in the county pursuant to any agreement executed under the authority of state law. (b) Any county ATRIP-II project utilizing proceeds of bonds and other obligations of the authority for road or bridge maintenance, improvement, replacement, or construction, on roads or bridges shall be designed in a manner consistent with the standards for low volume roads as established in the County Road Design Policy for Low Volume Roads as recommended by the Association of County Commissions of Alabama and adopted by the ALDOT. (c) Counties may not utilize any allocated proceeds of bonds and other obligations of the authority for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations: (1) Salaries, benefits, or any other form of compensation for county or contract employees or for county or municipal officials. (2) The purchase, lease, or maintenance of equipment. (3) The maintenance or construction of public buildings or other structures that are not roads or bridges. (d) All proceeds of bonds and other obligations of the authority allocated and distributed to or for the benefit of counties pursuant to this act shall be audited by the Examiners of Public Accounts in the same manner as all other county funds. (e) At its first meeting held in October 2018, and in each October thereafter, the county commission of each county shall adopt an annual ATRIP-II Plan for the then current fiscal year, which plan shall be approved by affirmative vote of a majority of the members of the county commission. The plan shall include only ATRIP-II projects authorized in this section for the benefit of the county. The plan shall be based upon an estimate of the proceeds of the authority’s bonds or other obligations anticipated to be allocated by the authority to and made available for the benefit of the county during the fiscal year. The county commission shall consider the needs of each district in the county in establishing its annual plan, and the plan shall not be altered once adopted at the first meeting in October. Following its adoption, the annual plan shall at all times be posted in conspicuous places at the county courthouse, the county commission office, the county highway or road department, and any other place or places deemed appropriate by the county commission. The plan shall also be posted on the county's website, if available. Written notice of the meeting at which the plan is to be adopted shall be mailed or otherwise disseminated to each member of the county’s legislative delegation at least five days in advance of the meeting. (f) At the first meeting of the county commission of each county held in January 2020, and in each January thereafter, the county engineer or other person designated by the county commission for that purpose shall present the county commission with an annual written report detailing expenditures made for ATRIP-II projects in the county during the previous fiscal year, and the report shall include the status of each project included in the county’s previous fiscal year's ATRIP-II Plan. Notice of the meeting at which the report will be made shall be mailed or otherwise disseminated to each member of the county’s legislative delegation at least five days in advance of the meeting. The report shall be entered in the minutes of the county commission meeting and shall be made available to the public for inspection, including posting on the county's website, if available. Section 10. (a) Net proceeds of the sale by the authority of its bonds and other obligations authorized hereby and issued to pay the costs of municipal ATRIP-II projects, including Supplemental Allocation Municipal ATRIP-II projects, shall be deposited, once allocated for distribution, into a separate fund in the State Treasury to be maintained for the respective benefit of each distributee municipality and disbursed therefrom only in accordance with procedures therefor adopted by the Board of Directors of the Authority, and pursuant to the proceedings under which the bonds and obligations are issued, and shall be utilized for any or all of the following purposes: (1) The maintenance, improvement, replacement, and construction of roads and bridges within a municipality's jurisdictional limits. (2) As matching funds for federal road or bridge projects; provided, however, that no more than 20 percent of such proceeds allocated to a municipality may be used for matching purposes. (3) With the consent of the county in which the municipality is located, for the maintenance, improvement, or replacement of county-maintained roads and bridges within the municipality's jurisdictional limits. (4) For a joint road or bridge project with the county in which the municipality is located pursuant to any agreement executed under the authority of state law. (b) Municipalities may not utilize any allocated bond proceeds and other obligations of the authority for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations: (1) Salaries, benefits, or any other form of compensation for municipal or contract employees or for municipal or county officials. (2) The purchase, lease, or maintenance of equipment. (3) The maintenance or construction of public buildings or other structures that are not roads or bridges. (c) All bond proceeds and other obligations of the authority allocated and distributed to or for the benefit of municipalities pursuant to this act shall be audited by the Examiners of Public Accounts in the same manner as all other municipal funds. (d) Any municipal ATRIP-II project utilizing bond proceeds for road or bridge maintenance, improvement, replacement, or construction of roads or bridges shall be designed in a manner consistent with the standards adopted by the ALDOT. (e) At its first meeting held in October 2018, and in each October thereafter, the governing body of each municipality in the state shall adopt an annual ATRIP-II Plan for the current fiscal year, which plan shall be approved by the affirmative vote of a majority of the members of the municipal governing body. The plan shall include only ATRIP-II projects authorized in this section for the benefit of the municipality. The plan shall be based upon an estimate of the proceeds of the authority’s bonds and other obligations anticipated to be allocated by the authority to and made available for the benefit of the municipality during the fiscal year. The municipal governing body shall consider the needs of each district in the municipality in establishing its annual plan, and the plan shall not be altered once adopted at the first meeting in October. Following its adoption, the annual plan shall at all times be posted in conspicuous places at the municipality’s offices, the municipality’s highway, street or road department, and any other place or places deemed appropriate by the municipal governing body. The plan shall be posted on the municipality's website, if available. Written notice of the meeting at which the plan is to be adopted shall be mailed or otherwise disseminated to each member of the municipality’s legislative delegation at least five days in advance of the meeting. (f) At the first meeting of the governing body of the municipality held in January 2020, and in each January thereafter, the city engineer or other person designated by the municipal governing body for such purpose shall present the municipal governing body with an annual written report detailing expenditures made from for ATRIP-II projects in the municipality during the previous fiscal year, which report shall include the status of each project included in the municipality’s previous fiscal year's ATRIP-II Plan. Written notice of the meeting at which the report will be made shall be mailed or otherwise disseminated to each member of the municipality’s legislative delegation at least five days in advance of the meeting. The report shall be entered in the minutes of the municipal governing body meeting and shall be made available to the public for inspection, including posting on the municipality's website, if available. Section 11. (a) All ATRIP-II projects shall be let to contract by each county or municipality, as the case may be, utilizing contractors and material suppliers listed on the ALDOT's list of approved contractors and suppliers rather than be performed by county or municipal forces and shall be subject to the reporting requirements contained in Section 23-1-433 and Section 23-1-434, Code of Alabama 1975, as amended, respectively. Each county and municipality shall provide on October 1 of every other year, beginning on October 1, 2019, a list of all contractors who have been awarded projects under this section to the Senate President Pro Tempore and the Speaker of the House of Representatives. (b) ALDOT’s list of approved contractors and material suppliers shall include the ALDOT's Certified Disadvantaged Business Enterprise List. Each county and municipality shall provide a list of all contractors who have been awarded projects under this section to the Senate President Pro Tempore and the Speaker of the House of Representatives every other year, beginning on October 1, 2019. (c) All contracts awarded under this section shall be bid in accordance with the provisions of Title 39, Code of Alabama 1975, as amended, except as provided in this section. Provisions of Chapter 2, Title 39, Code of Alabama 1975, as amended, notwithstanding, bids for projects funded with bonds proceeds or other obligations of the authority may only be opened at 10:00 a.m. central time on the second Wednesday of each month. For all county ATRIP-II projects, the appropriate plans and bid opening dates shall be published in electronic form no later than the tenth day of the month preceding the bid opening on a website maintained for that purpose by the Association of County Commissions of Alabama. Notwithstanding any provision of law to the contrary, no bidding shall be required by the county for asphalt or other road construction or repair materials if the county has an annual contract for providing such materials in effect on the effective date of this act. Any such materials shall be bid for any project let for contract on or after the expiration of asphalt or road construction or repair materials contract in place on the effective date of this act. For all municipal ATRIP-II projects, the appropriate plans and bid opening dates shall be published in electronic form no later than the tenth day of the month preceding the bid opening on a website maintained for that purpose by the Alabama League of Municipalities. Bids for county and municipal contracts awarded under this section shall only be awarded in accordance with Section 39-2-6, Code of Alabama 1975, as amended, during a regularly-scheduled meeting of the governmental body of the county or city, as the case may be. Immediately after the completion of each project, the publication notifications required by Section 39-1-1(f), Code of Alabama 1975, as amended, shall be satisfied by posting on the same website utilized for the posting of specifications and notice of bid openings. (d) The State Comptroller shall disburse or pay moneys from the proceeds derived from the sale of bonds and other obligations of the authority and on deposit in each of the special funds maintained in the State Treasury for the benefit of each distributee county and municipality only against vouchers or other evidence satisfactory to the State Comptroller submitted by such distributee counties and municipalities for satisfaction of amounts currently due and payable under contracts awarded under this section to carry out ATRIP-II projects with respect to which the authority has allocated proceeds of its bonds or other obligations. The authority may provide by resolution of its Board of Directors for the time, form, manner and methods pursuant to which such submissions may be made by counties or municipalities and disbursements or payments responsive thereto shall be made by the State Comptroller. Section 12. (a) Effective September 1, 2018, and until such time as any and all bonds or other obligations of the authority have been paid in full pursuant to the terms thereof, one-half of the net proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable in whole or in part to the Authority by an act of the Legislature and deposited in the State Treasury shall be transferred into a special fund in the State Treasury entitled the "State Department of Transportation Road and Bridge Rehabilitation and Improvement Program Fund", (the

ALDOT Projects Special Fund") and applied solely as provided in this act. (b) The amounts on deposit in the ALDOT Projects Special Fund shall be applied, and are hereby appropriated solely for the following purposes and in the following order: (1) First, as directed by the authority in each fiscal year such amounts at such times as shall be sufficient, with other funds available to the authority therefor, to provide for the due and punctual payment in full of all principal of, premium, if any, and interest on all bonds and other obligations of the authority at any time outstanding (i) which shall have become due and payable and which shall not have theretofore been paid, in a prior fiscal year, and (ii) which shall become due and payable in such fiscal year. (2) Second, to pay the annual costs, if any, of administering the ALDOT Projects Special Fund. (3) Thereafter, all remaining moneys in the ALDOT Projects Special Fund shall be further distributed as provided in subsection (b) of Section 13 of this act and expended only as provided in that section. Thus, when all bonds and other obligations of the authority shall have been paid in full in accordance with the terms thereof and of the documents under which those bonds and other obligations were issued, all moneys remaining each year in the ALDOT Projects Special Fund shall be applied and distributed as provided in subsection (b) of Section 13 of this act. (c) Not more than one billion two hundred million dollars ($1,200,000,000) of the proceeds of the aggregate principal amount of bonds authorized in this act to be issued by the authority shall be utilized to pay the costs of ALDOT projects submitted to the authority by ALDOT as provided for in and in accordance with this section and to pay the expenses of issuance of said bonds. Net proceeds of such bonds or obligations may also be used as matching funds for any federal projects approved for the state pursuant to such federally-created infrastructure program relating to roads, bridges and highways, as may be established after the effective date of this act pursuant to a presidential executive order, act of Congress, or other legally-approved federal action. (d) The proceeds of bonds and other obligations of the authority and other funds made available to ALDOT pursuant to this section shall not be utilized for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations: (1) Salaries, benefits, or any other form of compensation for state or contract employees. (2) The purchase, lease, or maintenance of equipment. (3) The maintenance or construction of public buildings or other structures that are not roads and bridges. (e) No later than September 1, 2018, and no later than September 1 of each year thereafter, until all of the bonds and other obligations authorized to be issued by the authority shall have been sold and issued, the Director of the ALDOT shall annually identify the road and bridge improvement projects he shall recommend be conducted or undertaken by ALDOT and funded in whole or in part with moneys available from bond proceeds or other obligations of the authority pursuant to this section, and shall submit the recommended list of projects to the authority for consideration and allocation of proceeds of the authority’s bonds and other obligations. The Director of the ALDOT in making such recommendations shall consider and give priority to the following infrastructure needs: safety, congestion, economic and industrial impact, educational impact, connectivity, innovation, local government investment in projects, and public-private partnerships. (f) All ALDOT projects funded pursuant to this section shall be let to contract by ALDOT. ALDOT shall establish and apply Disadvantaged Business Enterprise (DBE) goals in the same manner and consistent with the requirements respecting DBE goals of the Federal Highway Administration (FHWA) for road and bridge and other similar contracts funded with federal funds. The DBE goal for ALDOT projects funded pursuant to this section shall be the same as the goal established annually by ALDOT for contracts funded with federal funds and approved by FHWA. ALDOT shall provide, on October 1 of every fiscal year of the state, beginning October 1, 2019, for the then immediately preceding fiscal year, a report of ALDOT projects let to contract pursuant to this section, including information on the established DBE goals for ALDOT projects, to the Board of Directors of the authority, the Governor, the President Pro Tempore of the Senate, the Speaker of the of Representatives, the Senate Minority Leader, and the Alabama House of Representatives Minority Leader. Section 13. (a) To the extent in each fiscal year of the state the net proceeds from any new levy of gasoline and diesel fuel excise taxes and fees are not needed for payment of debt service on bonds or other obligations of the Authority and are not otherwise restricted by Section 5 of this act or by agreement of the authority with the holders of said bonds or other obligations, or when all such bonds and obligations of the authority theretofore issued, including refunding bonds, have been retired or are deemed paid in full pursuant to the terms, the following allocations shall be made: One-half of the net proceeds from any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated or made payable in whole or in part to the Authority by an act of the Legislature shall be divided and appropriated as follows: (1) Thirty percent (30%) of the proceeds shall be distributed equally among the municipalities of the state on the basis of the ratio of population of each municipality to the total population of the state according to the then immediately preceding federal decennial census; and (2) Seventy percent (70%) of the proceeds shall be distributed to the counties of the state as follows: i. 45.45 percent of the proceeds shall be divided equally among the 67 counties of the state; and ii. 54.55 percent of the proceeds shall be allocated among the 67 counties of the state on the basis of the ratio of the population of each county to the total population of the state according to the then immediately preceding federal decennial census, provided that, following the time as the authority shall have issued all of the bonds and other obligations herein authorized to be issued for county and municipal road and bridge projects and distributed the net proceeds therefrom for payment of costs of ATRIP-II projects as herein otherwise provided, there shall be allocated and appropriated from the remaining seventy percent (70%), on a pro-rata basis to each of the 67 counties in the state that shall not have theretofore had allocated to it or for its benefit pursuant to the provisions of this act bond proceeds for payment of costs of ATRIP-II projects aggregating at least ten million dollars ($10,000,000) pursuant to Sections 8 and of this act, the additional amount of net proceeds of any new levy of gasoline and diesel fuel excise taxes and fees appropriated, allocated, or made payable in whole or in part to the authority by an act of the Legislature, as shall bring the county's final cumulative allocation for ATRIP-II projects pursuant to this act plus the additional amount to the sum of ten million dollars ($10,000,000), provided always that the additional net proceeds of any new levy of gasoline and diesel fuel excise taxes and fees so appropriated in paragraphs (1) and (2) of this subsection (a) shall be expended only for the payment of costs of road and bridge construction, rehabilitation and improvement subject to the restrictions on the use of proceeds of bonds and other obligations of the authority allocated to counties and municipalities set out in Sections 9 and 10 of this act, and (b) The remaining one-half of the net proceeds from any new levy of gasoline and diesel fuel excise tax appropriated, allocated or made payable in whole or in part to the authority by an act of the Legislature shall be deposited in the State Highway Fund and shall be expended annually by ALDOT for road and bridge construction, improvement, rehabilitation, repair and related infrastructure projects in the state as determined by the Director of the ALDOT. Section 14. The income and property (including the purchase or use thereof) of the authority, all bonds of the authority and the interest paid on such bonds, all conveyances by or to the authority, and all agreements and instruments to which the authority is a party, are exempt from all taxation in the State of Alabama. The authority shall be exempt from all license and excise taxes imposed in respect of the privilege of engaging in any activity and exempt from the payment of all fees, taxes or costs in the recordation of any document in a county or with the Office of the Secretary of State. Section 15. The authority shall be a nonprofit public corporation, and no part of its net earnings remaining after payment of the expenses thereof shall inure to the benefit of any individual, firm, or corporation. Section 16. At any time when no bonds or other obligations of the authority are outstanding, the authority may be dissolved upon filing with the Office of the Secretary of State an application for dissolution, which shall be executed by each of the directors of the authority and sworn to by each director before an officer authorized by the laws of the State of Alabama to take acknowledgements to deeds. Upon the filing of the application the Authority shall cease to exist. The Secretary of state shall record in the office thereof the application for dissolution together with a certificate, under the Great Seal of the State, that the authority is dissolved. Upon dissolution of the authority as provided in this act, title to all property held in the name of the authority shall be vested in the State of Alabama. Section 17. This act is intended to aid the State of Alabama through the furtherance of the purposes of this act by providing an appropriate and independent public corporation and instrumentality with full authority and power to effect the purposes of this act as provided for herein. Therefore, no approval, consent, hearing, proceeding, or notice shall be required by or of any officer, agency, board, corporation or department of the State of Alabama for the incorporation or dissolution of the authority, for the exercise of any authority or power of the authority, for the issuance of bonds by the authority as provided in this act, or for the delivery of any agreement by the authority. (b) There is hereby appropriated to the authority, in each fiscal year of the state, the proceeds of the pledged taxes and fees after payment of costs of collection and refunds, in such amounts and at such times as shall be sufficient to provide for the punctual payment in full of all principal of, premium, if any, and interest on all bonds and other obligations of the authority at the time outstanding (i) which shall have become due and payable, and which shall not have theretofore been paid in a prior fiscal year, and (ii) which shall become due and payable in such fiscal year, provided that, if the proceeds so appropriated shall be insufficient to pay in full the principal, premium and interest in any fiscal year, nothing in this act shall give rise to any obligation of the authority or of the State of Alabama to provide any funds or moneys to make payments of debt service otherwise than from proceeds of the pledged taxes and fees. (c) The Legislature covenants and agrees, on behalf of the state, with the owners of all bonds and other obligations of the authority at any time outstanding, to continue to provide for the imposition, levy and collection of the pledged taxes and fees until all principal of, premium, if any, and interest on all bonds and obligations shall have been paid in full in accordance with the terms thereof and of the proceedings pursuant to which the bonds and other obligations were issued. (d) The maturity of any bond or other obligation issued by the authority shall be limited to a maximum of fifteen years from the dated date thereof. Section 18. The Association of County Commissions of Alabama shall hold, without expense to the state, a training conference prior to September 1, 2018, on the provisions of this act and the requirements for contractors eligible to bid on the projects let to contract by ALDOT, the counties, and the municipalities. Section 19. The provisions of this act shall not be superseded, amended, altered, violated, or overridden by any provision of the State General Fund Appropriation Act or any other annual or supplemental appropriation act, administrative rule, inter-agency transfer, or executive order or directive. The moneys allocated to counties and municipalities for payment of the respective costs of ATRIP–II projects and pursuant to the provisions of Section 13 of this act shall be in addition to and shall not diminish any other revenues, appropriations or other funds allocated or distributed from other sources. Section 20. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.