SB99 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2018

Title

Transportation Dept., Ala. Federal Fund Exchange Program, political subdivisions or public corporation authorized to puchase fed. transportation funds at a discount, work to be performed by state residents, reports to Jt. Transportation Committee, Ala. Fed. Fund Exchange Program

Summary

SB 99 creates the Alabama Federal Fund Exchange Program to let the state and its political subdivisions exchange federal transportation funds at a discount to fund highways and related projects.

What This Bill Does

The program allows ALDOT and eligible subdivisions or public corporations to negotiate exchanges of federal transportation funds at a discount rate set by the department. Funds obtained through these exchanges must be spent on construction, reconstruction, maintenance, and repair of highways, streets, roads, bridges, and related facilities. Sellers of federal funds must prove the proceeds were used for these purposes, and participating entities must follow public purchasing laws and competitive bidding. Contracts funded with the program's revenue or bond proceeds must be performed by Alabama residents, subject to federal law, and the department must annually report to the Joint Transportation Committee on agreements and project status.

Who It Affects

• Alabama Department of Transportation (administers the program and sets the discount rate)
• Political subdivisions or public corporations in Alabama (may participate in fund exchanges)
• Entities that sell federal transportation funds (must provide expenditure proof)
• Contractors and vendors performing funded projects (subject to Alabama resident workforce requirement)
• Alabama residents (workforce requirement for funded contracts)
• Joint Transportation Committee (receives annual program reports)

Key Provisions

• Establishes the Alabama Federal Fund Exchange Program and authority to enter agreements to exchange federal funds with a discount rate set by the department
• Exchanged funds must be used for construction, reconstruction, maintenance, and repair of public highways, streets, roads, or bridges and related facilities
• Sellers of federal funds must provide proof that proceeds were expended for the described purposes, with proof method and timing set by the department in the agreement
• Participating entities must comply with public purchasing laws and competitive bidding for projects funded through the program
• Contracts funded by revenue or bond proceeds under this act must be performed by an Alabama resident workforce, subject to federal law
• The department must file an annual report to the Joint Transportation Committee by November 1, including a summary of agreements and project status
• The act becomes effective on the first day of the third month after passage and approval

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