SB289 Summary

• Amends the Alabama Federal Aid Highway Finance Authority statutes to clarify the membership composition includes the Governor, Director of Finance, Director of Transportation, Attorney General, and State Treasurer.

• Eliminates outdated references to interest coupons on bonds issued by the authority, modernizing bond issuance procedures.

• Pledges the state's share of net gasoline tax proceeds to secure bonds issued by the authority, effective March 1, 2014, on parity with pledges securing obligations of the Alabama Highway Finance Corporation.

• Grants the authority discretion to pledge all or only certain appropriated funds for bond payment and to set pledge priorities among different bond issues within the order of resolution adoption.

• Expands authorized investments of bond proceeds and sinking fund revenues to include investment agreements, repurchase agreements, and other arrangements fully collateralized by U.S. obligations.