HB3 Alabama 2019 1st Special Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Bill Poole
Republican
Session: First Special Session 2019
Title: Alabama Highway Finance Corporation auth. to borrow money and issue bonds to improve the Mobile Ship Channel.
Summary: HB3 authorizes the Alabama Highway Finance Corporation to borrow up to $150 million and issue bonds to widen and deepen the Mobile Ship Channel, with debt service paid by the State Treasurer.
What This Bill Does
It gives the Alabama Highway Finance Corporation the power to borrow money and issue bonds up to $150 million for Mobile Ship Channel improvements, with bond maturities not exceeding 20 years. It also allows the creation of refunding bonds to refinance outstanding debt. Bond proceeds (excluding refunds) must fund the state's share of project costs, and the corporation may pledge appropriations for debt service and enter contracts with agencies such as the Alabama State Port Authority, the Department of Transportation, the U.S. Army Corps of Engineers, and other federal entities. The State Treasurer is authorized to pay principal and interest on the bonds when due and to maintain related records, with the act becoming effective immediately after governor approval.

Who It Affects
Alabama Highway Finance Corporation: gains authority to borrow, issue bonds, pledge appropriations, and contract with various agencies to carry out the project.
State Treasurer: tasked with paying bond principal and interest as they mature and keeping proper records.
Alabama State Port Authority, Alabama Department of Transportation, U.S. Army Corps of Engineers, and other federal agencies: able to enter contracts with the Corporation to perform work related to the Mobile Ship Channel.
General public and state finances: bond issuance and use of proceeds allocate funds for the state's share of the Mobile Ship Channel project, impacting public finances and infrastructure.

Key Provisions
Authorized principal amount of $150,000,000 for bonds to finance widening and deepening the Mobile Ship Channel; maximum bond maturity of 20 years.
Authority to issue one or more series of refunding bonds to refinance existing bonds, with final maturities not later than those being refunded.
Bond security can be provided by pledging the proceeds of appropriations designated for debt service.
Authority to enter into contracts with the Alabama State Port Authority, the State Department of Transportation, the U.S. Army Corps of Engineers, and other federal agencies.
Bond proceeds (excluding refunding bonds) must be used for the state's share of project costs, with refunds used to retire or redeem refunded bonds; proceeds may be invested pending disposition.
State Treasurer responsible for paying bond principal and interest as they mature and maintaining appropriate records.
Definition of Mobile Ship Channel included for scope of the project.
Effective date: immediately after approval by the Governor.

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