HB15 Alabama 2021 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Co-Sponsor

Andy Whitt

Session

Regular Session 2021

Title

Taxation, to update the disbursement of certain license taxes and registration fees, Sec. 40-12-270 am'd.

Summary

HB15 changes how motor vehicle license fees and related funds are distributed in Alabama, mandating an annual $1.2 million allocation to the Alabama Law Enforcement Agency and creating new rules for road funding and oversight.

What This Bill Does

The bill amends Section 40-12-270 to specify that net proceeds from motor vehicle license taxes and registration fees are distributed in a set order, including a guaranteed annual allocation of $1,200,000 to ALEA for public safety. It outlines how the remaining funds are split among the state, counties, municipalities, and the Department of Transportation for road-related needs and debt service, and it establishes a Secondary Road Committee to set criteria and standards for high-density roads and certain recreational access roads. It also requires counties to follow approved plans for using these funds, keeps funds in separate, county-controlled accounts, and allows counties to use portions for specified road projects or related needs.

Who It Affects

• Alabama Law Enforcement Agency (ALEA) receives an annual, dedicated $1,200,000 to support enforcement of state traffic and motor vehicle laws.
• Counties and municipalities receive portions of net proceeds based on specified formulas (equal shares and population-based shares), with funds earmarked for construction, maintenance, and improvement of public highways and streets; counties must follow approved DOT plans and keep funds in separate accounts for road purposes.

Key Provisions

• Amends Section 40-12-270 to provide an annual $1,200,000 distribution to the Alabama Law Enforcement Agency (ALEA) for the Public Safety Fund to enforce state traffic and motor vehicle laws.
• Defines the distribution framework for the remaining net proceeds: allocations to the State Treasurer for debt service on certain highway authority bonds, allocations to counties based on equal shares and population, and allocations to the State, municipalities, and counties for road-related purposes.
• A portion of the proceeds is designated to the State for road and bridge fund uses, including payments for DOT construction and maintenance of public roads and bridges, and other lawful uses.
• Creates the Secondary Road Committee to set criteria and minimum design standards for high-density roads and eligible recreational access roads, with county plan approvals by the Director of Transportation and oversight by the DOT.
• Requires counties to deposit road proceeds into county special funds (not commingling with other funds) and to submit plans to the DOT for approval before undertaking eligible road projects.
• Allows counties to deposit funds into the county’s special RRR fund and use them for purposes authorized under that program.
• Effective date: applies beginning with the fiscal year ending September 30, 2021/2022.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation