Struck = removed from the bill ·
added = the amendment's new text.
SB205WF7855-1 ENROLLED: 5V1S66-3 By Senators Orr, Allen RFD:
Transportation5/2/2023 and: Energy First Read:
12-Apr-23CMH 2023AMENDMENT RegularTO SessionSB205 Page1ST 0ORR AMENDMENT TO SB205 EnrolledOFFERED Enrolled,BY AnSENATOR Act,ORR Replace lines 84 on page 3 Relatingthrough toline the88 Alabamaon Transportationpage Infrastructure4 Bank;with the following:
topublic amendcorporation, Sectionsboard, 23-7-2commission, andagency, 23-7-15,Page Code1 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.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1.
Sections 23-7-2 and 23-7-15, Code of Alabama 1975, is amended to read as follows:
"§23-7-2 For the purposes of this chapter, the following words shall have the following meanings:
(1) BANK.
The Alabama Transportation Infrastructure Bank.
(2) BOARD.
The board of directors of the bank.
(3) BONDS.
Includes bonds, notes, or other evidence of indebtedness except as otherwise provided in this chapter.
(4) DEPARTMENT or DEPARTMENT OF TRANSPORTATION.
The Alabama Department of Transportation.
(5) ELIGIBLE COST.
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.
As applied to a qualified project to be financed from the state highway account, these costs include the costs of preliminary engineering, traffic, and revenue studies;
environmental studies;
right-of-way acquisition;
legal and financial services associated with the development of the qualified project;
construction;
construction management;
facilities;
and other costs necessary for the qualified project.
(6) ELIGIBLE PROJECT.
Highways, roads, bridges, and mass transit capital projects which provide public benefits by either enhancing mobility and safety, promoting economic development, or increasing the quality of life and general welfare of the public.
(7) FINANCING AGREEMENT.
Any agreement entered into between the bank and a qualified borrower pertaining to a loan or other financial assistance.
This agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a qualified project, or other provisions as the board may determine.
The term includes, without limitation, a loan agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note, ordinance or resolution, or similar instrument.
(8) GOVERNMENT UNIT.
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, 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.
(9) LOAN.
An obligation subject to repayment which is provided by the bank to a qualified borrower for all or a part of the eligible cost of a qualified project.
A loan may be disbursed in anticipation of reimbursement for or direct payment of eligible costs of a qualified project or to refinance temporary financing used to pay eligible costs of a qualified project.
(10) LOAN OBLIGATION.
A bond, note, or other evidence of an obligation issued by a qualified borrower.
(11) OTHER FINANCIAL ASSISTANCE.
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 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.
(12) PERMITTED INVESTMENTS.
Include any of the following:
a.
Certificates of deposit, savings accounts, deposit accounts, or money market deposits that are any of the following:
Page 3 SB205 Enrolled 1.
Secured as provided in Chapter 14A of Title 41.
2.
Fully insured by the FDIC.
3.
Made with a bank whose unsecured, long-term obligations are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
b.
Direct obligations of, or obligations the full and timely payment of which is guaranteed by, the United States of America, including unit investment trusts and mutual funds that invest solely in such obligations.
95 c.
Bonds, debentures, notes, pass through securities, or other obligations issued or guaranteed by any federal agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States of America as an agency or instrumentality thereof if such obligations are either of the following:
1.
Backed by the full faith and credit of the United States of America.
2.
Rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by the rating agency.
d.
Commercial paper which is rated not less than "P-1" by Moody's Investor Service or "A-1+" by Standard & Poor's at the time of purchase.
e.
Money market funds rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
f.
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.
g.
Investment agreements, including, without limitation, guaranteed investment contracts, repurchase agreements, and forward purchase agreements, provided that all of the following are satisfied:
1.
Any securities purchased or held pursuant to such agreement are otherwise permitted investments.
2.
The counterparty's long-term debt obligations are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
3.
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 with a perfected first security interest in such collateral.
h.
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.
(13) PROJECT REVENUES.
All rates, rents, fees, assessments, charges, and other receipts derived or to be derived by a qualified borrower from a qualified project or made available from a special source, and, as provided in the applicable financing agreement, derived from any system of which the qualified project is a part of, from any other revenue producing facility under the ownership or control of the qualified borrower including, without limitation, proceeds of grants, gifts, appropriations, and loans, including the proceeds of loans made by the bank, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and proceeds from the sale or other disposition of property and from any other special source as may be provided by the qualified borrower.
(14) QUALIFIED BORROWER.
Any government unit which is authorized to finance, construct, operate, or own a qualified project or the applicable portion thereof in the case of a qualified project consisting of a pool of eligible projects for more than one government unit.
(15) QUALIFIED PROJECT.
Includes either of the following:
a.
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.
b.
A pool of eligible projects of government units, the aggregate total cost of which exceeds five million dollars ($5,000,000) one million dollars ($1,000,000), which government units have been selected by the bank to receive a loan funded from the proceeds of bonds issued by the bank for the pool of eligible projects to defray an eligible cost.
(16) REVENUES.
When used with respect to the bank, any receipts, fees, income, or other payments received or to be received by the bank including, without limitation, receipts and other payments deposited in the bank and investment earnings on its funds and accounts." "§23-7-15 Following the close of each state fiscal year, the bank shall submit an annual report of its activities for the preceding year to the Governor and to the Legislature.
The report may be incorporated into the annual report required pursuant to Section 23-1-35 or may be prepared as a separate document.
The bank also shall submit an annual report to the appropriate federal agency in accordance with requirements of any federal program.
An independent certified public accountant or the Department of Examiners of Public Accounts shall perform an audit of the books and accounts of the bank at least once in each state fiscal year." Section 2.
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 Enrolled ________________________________________________ President and Presiding Officer of the Senate ________________________________________________ Speaker of the House of Representatives SB205 Senate 02-May-23 I hereby certify that the within Act originated in and passed the Senate, as amended.
Patrick Harris, Secretary.
House of Representatives Passed:
01-Jun-23 By:
Senator Orr Page 9