SB 205 — Relating to the Alabama Transportation Infrastructure Bank; to amend Sections 23-7-2 and 23-7-15, Code of Alabama 1975, to include additional entities, including tax increment districts, Alabama improvement districts, and cooperative improvement districts, as government units that may receive loans or financial assistance from the bank; to reduce the minimum project cost to be eligible for assistance from the bank; and to further provide for the bank's annual reporting requirements.

SB205 ENGROSSEDENROLLED 5V1S66-25V1S66-3 By Senators Orr, Allen RFD:

12-Apr-23 2023 Regular Session Page 0 SB205 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to the Alabama Transportation Infrastructure Bank;

Page 1 SB205 Engrossed (4) DEPARTMENT or DEPARTMENT OF TRANSPORTATION.

As applied to a qualified project to be financed from the federal highway account, the costs that are permitted under applicable federal laws, requirements, Page 1 SB205 Enrolled procedures, and guidelines in regard to establishing, operating, and providing assistance from the bank.

The term includes, without limitation, a loan agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note, ordinance or resolution, or similar Page 2 SB205 Engrossed instrument.

A municipal corporation, county, or another public body, instrumentality, or agency of the state including combinations of two or more of these entities acting jointly to finance, construct, own, or operate a Page 2 SB205 Enrolled qualified project, and any other state or local authority, public corporation, tax increment district established pursuant to Chapter 99 of Title 11, Alabama improvement district established pursuant to Chapter 99A of Title 11, cooperative improvement district established pursuant to Chapter 99B of Title 11, board, commission, agency, department, or other political subdivision created by the Legislature or pursuant to the Constitution of Alabama of 19012022, and laws of this state which may finance, construct, own, or operate a qualified project.

Includes, but is not limited to, grants, contributions, credit enhancement, capital or debt reserves for bonds or debt instrument financing, interest rate subsidies, provision of letters of credit and Page 3 SB205 Engrossed credit instruments, provision of bond or other debt financing instrument security, and other lawful forms of financing and methods of leveraging funds that are approved by the board, and in the case of federal funds, as allowed by federal law.

Page 3 SB205 Enrolled 1.

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Rated by at least one nationally recognized Page 4 SB205 Engrossed securities rating agency in one of the three highest rating categories assigned by the rating agency.

Bonds, warrants, notes, or other obligations issued Page 4 SB205 Enrolled by any state, county, or municipality that are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.

The securities, if purchased, are owned by the bank or a trustee for any of the bank's obligations and are held by the bank, the trustee, or a third-party custodian acceptable to the bank or, if held as collateral, are held by the bank, the trustee, or a third-party custodian acceptable to the bank Page 5 SB205 Engrossed with a perfected first security interest in such collateral.

Investment or cash management agreements with a commercial bank whose senior long-term debt obligations are, at the time of the acquisition of any such investment or cash management agreement for the account of the bank, rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency, or with a commercial bank that is owned or controlled by a bank holding company whose senior long-term Page 5 SB205 Enrolled debt obligations are, at the time of the acquisition of any such investment or cash management agreement for the account of the bank, rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.

Page 6 SB205 Engrossed (14) QUALIFIED BORROWER.

An eligible project or combination of eligible projects of a government unit, the aggregate total cost of Page 6 SB205 Enrolled which exceeds five million dollars ($5,000,000) one million dollars ($1,000,000), which has been selected by the bank to receive a loan or other financial assistance from the bank to defray an eligible cost.

The Page 7 SB205 Engrossed report may be incorporated into the annual report required pursuant to Section 23-1-35 or may be prepared as a separate document.

This act shall become effective on the first Page 7 SB205 Enrolled day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Page 8 SB205 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................12-Apr-23________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives TransportationSB205 andSenate Energy02-May-23 ReadI forhereby certify that the secondwithin timeAct andoriginated placedin ................13-Apr-23and onpassed the calendar:Senate, as amended.

0 amendments Read for the third time and passed ................02-May-23 as amended Yeas 32 Nays 0 Abstains 0 Patrick Harris, Secretary.

PageHouse 9of Representatives Passed:

01-Jun-23 By:

Senator Orr Page 9