SB67 Alabama 2022 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Clyde ChamblissSenator
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: This law changes how Alabama funds and pays back highway-related debt by specifying dedicated revenue sources and creating a sinking fund to ensure timely debt service.
What This Bill Does
It amends Section 23-1-314 to irrevocably pledge the state's share of net gasoline tax proceeds to pay the principal and interest on the Alabama Federal Aid Highway Finance Authority's obligations. It also irrevocably pledges all federal aid funds for federal aid projects received by the Department of Transportation to the extent needed for debt service, holding these funds in trust and applying them to debt payments as required. All pledged funds are to be deposited into the State Treasury to form a sinking fund used to pay the debt, with the pledge on parity with an existing pledge securing other highway obligations. The Authority is authorized to pledge the proceeds of these appropriations, and the Department of Transportation must set aside the first amounts from pledged revenues each year to accumulate enough to pay the upcoming debt payments.

Who It Affects
Alabama residents and highway users: the bill dedicates portions of the state gasoline tax and federal highway funds to debt service, which can influence how funds are allocated for highways and related services.
Alabama Department of Transportation and the Alabama Federal Aid Highway Finance Authority (and related bondholders): the law formalizes funding streams, creates a sinking fund, establishes payment priorities, and requires annual set-asides to ensure debt payments.

Key Provisions
Pledge of the state’s share of net gasoline tax proceeds to pay principal and interest on the authority’s obligations.
Pledge and appropriation of all federal aid funds for federal aid projects to the extent needed for debt service; funds held in trust and applied as required.
Creation of a sinking fund in the State Treasury funded by pledged revenues to pay debt when due.
Pledge of the debt-related funds to be on parity with existing security (23-1-181) for highway obligations; authority may pledge additional proceeds.
Pledges have priority in the order of adoption of their supporting resolutions, unless otherwise specified.
DOT must set aside the first-moneys from pledged revenues each fiscal year and deposit them into the sinking fund to cover upcoming debt payments.
Effective date: immediately after passage and governor's approval.

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