SB 99

This bill would create the Alabama Federal Fund Exchange Program to provide eligible entities and the Alabama Department of Transportation with greater flexibility in funding transportation projects

To establish the Alabama Federal Fund Exchange Program; to provide authority for the Alabama Department of Transportation or political or governmental subdivision or public corporation to enter into agreements with a political or governmental subdivision or public corporation to exchange federal transportation funds; to allow the Alabama Department of Transportation to set an appropriate exchange rate; to require a political or governmental subdivision or public corporation to submit required documentation for the exchange program; and to require the Alabama Department of Transportation to report annually to the Joint Transportation Committee on any agreements entered into during the previous fiscal year.

Section 1

This act shall be cited as the Alabama Federal Fund Exchange Program.

Section 2

The Alabama Department of Transportation, on behalf of the state, and any political or governmental subdivision or public corporation of this state shall have the authority to enter into agreements with each other whereby an entity may purchase from another entity the federal transportation funds made available to such entity. Such funds may be purchased at an appropriate discount rate determined by the department to be in its best interest. Such agreements shall provide that the funds obtained from such sale by the political or governmental subdivision or public corporation be expended for the cost of construction, reconstruction, maintenance, and repair of public highways, streets, roads, or bridges and facilities, appurtenances, and structures deemed necessary in connection therewith.

Section 3

All entities which sell federal transportation funds shall provide proof to the department that the proceeds of the sale were expended for the described purposes. The manner in which the proof shall be provided and the time at which proof shall be made shall be at the discretion of the department and shall be set forth in the agreement.

Section 4

An eligible entity that participates in the program shall comply with applicable public purchasing laws and competitive bidding requirements with respect to projects funded through the program.

Section 5

Except as otherwise prohibited by Federal law, all contracts funded with revenue or bond proceeds which are authorized pursuant to this act shall be performed by a workforce which consists of only legal residents of the State of Alabama.

Section 6

Not later than November 1 of each year, the department shall submit a report on the program to the Joint Transportation Committee. A report submitted under this section must include: (a) a summary of the exchange agreements entered into during the State's previous fiscal year; and (b) a status report on the implementation of projects funded through the program.

Section 7

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.