HB107 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2022
Title: Federal Aid Highway Finance Authority, date for payment of principal and interest, further provided, Sec. 23-1-314 am'd.
Summary: HB107 requires pledged revenues for the Alabama Federal Aid Highway Finance Authority to be deposited into the sinking fund by the debt payment date, rather than earlier in the year.
What This Bill Does
The bill amends Section 23-1-314 to require that pledged revenues, including the state's share of net gasoline tax proceeds and federal aid funds, be deposited into the sinking fund no later than when principal and interest are due. This tightens the timing of funding for debt service and ties deposits directly to payment dates. Funds in the sinking fund are held in trust and used to pay bond principal and interest, with pledges remaining in priority and parity with other obligations.

Who It Affects
The Alabama Department of Transportation and the State Treasury, which manage the sinking fund and control the timing of deposits for debt service.
Bondholders and the Alabama Federal Aid Highway Finance Authority, who rely on timely deposits to ensure bond payments and maintain security of the debt.

Key Provisions
Amends 23-1-314 to require that all pledged revenues be deposited into the sinking fund no later than the debt payment date for principal and interest.
Pledged funds include the state's share of net gasoline tax proceeds and all federal aid funds used for federal aid projects, held in trust to pay debt service.
Sinking fund payments are made from these pledged revenues with priority among pledges and parity with other obligations.

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