Title 23 — Highways, Roads, Bridges and Ferries

title-23Ala. Code tit. 23Code1 de jan. de 1900

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Chapter 1 Alabama Highways

Article 1 General Provisions

§ 23-1-1 Contracts and Regulations Relative to Federal Assistance

The State Department of Transportation, by and through the director, is hereby authorized to enter into all necessary contracts and agreements with the United States government or any agency or officer thereof in accordance with any act of Congress relating to the construction, maintenance, and beautification of highways, bridges, tunnels or ferries, or other matters relating thereto, to establish, promulgate, and enforce all reasonable rules and regulations which may be necessary for the effective implementation and cooperation with the provisions of such acts and to do all other things necessary to secure to the state and its counties and municipalities the full benefits provided by such acts.

(Acts 1977, No. 20, p. 28.)

§ 23-1-2 Bid Guaranty

Any other provisions of the law to the contrary notwithstanding, bidders for contract projects which contracts are with the State of Alabama, in behalf of the Department of Transportation, to be paid, in whole or in part, from funds allocated to the Department of Transportation from any source whatsoever, or where contracts are with any of the several counties of the state for a highway, road, street, or bridge project, to be paid for, in whole or in part, from funds allocated to the county from any source whatsoever, shall be required to file with the bid, as a bid guaranty, a certified check or bid bond payable to the awarding authority as follows:

(1) A certified check payable to the awarding authority for an amount not less than five percent of the contractor’s bid, but in no event more than fifty thousand dollars ($50,000); or

(2) A bid bond payable to the awarding authority in an amount not less than five percent of the bid, but in no event more than fifty thousand dollars ($50,000).

(Acts 1967, No. 306, p. 849; Act 2016-260, §1.)

§ 23-1-3 Closing of Public Roads to Traffic; Acquisition of Materials

The state, acting through the State Department of Transportation and its duly authorized employees, and the various counties of the state, acting through the county commissions and their duly authorized employees, in the doing of public roads work shall have and exercise the right, power, and authority, when deemed necessary or advisable to do so, to close public roads to traffic and, when possible so to do, to make detour roads and to contract for such land as may be necessary for such detour roads; also to acquire, by purchase, or by condemnation, land necessary for drainage ditches and borrow pits, lime and stone quarries, clay and clay pits, sand and sand pits and gravel and gravel pits, together with any and all other material of every character that may be necessary or essential or desired in the construction and maintenance of highways and bridges, and to tap and draw materials from the same to such extent as may be desired, and the State Department of Transportation shall also have the right to acquire by purchase or condemnation rights-of-way necessary for ingress and egress to such material pits as above named.

(Code 1923, §1332; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §26.)

§ 23-1-4 Surety Bond; Requirements; Waiver of Bond Requirements

(a) The Legislature of Alabama finds and declares the following:

(1) Electric transmission infrastructure is critical to the economic growth and well-being of this state and Alabama has an immediate need to expand and facilitate such investment for the benefit of its residents.

(2) Public rights-of-way provide essential corridors and paths for electric transmission infrastructure.

(3) Prompt issuance of permits for electric transmission infrastructure of electric providers in public rights-of-way will provide the needed support to industrial growth, job creation, and economic development, particularly in rural and underserved areas.

(b) No state-controlled road shall be dug up or used for laying pipelines, pole lines, sewers, railways, or for other similar purposes without the written permit of the State Department of Transportation, and the work shall be done only in accordance with the rules prescribed by the department.

(c) The permittee shall pay the cost of replacing the road in as good condition as it was before the permitted work was done. An applicant for a permit under this section shall furnish the state with a cash deposit or certified check upon a solvent bank or surety bond from a guaranty company qualified to do business in Alabama, in the amount required by the department, conditioned that the sum is to be forfeited to the state in the event that the road is not placed in as good condition as it was prior to the permitted work being done, within 15 business days from the time the permitted work is completed.

(d)(1) Upon the receipt of an application of an electric provider for a permit relating to electric transmission facilities, the department shall determine whether the application is complete. If the application is not complete, the department, within 14 business days after receiving the application, shall respond to the applicant in writing with a description of any deficiency in the application.

(2) Within 35 business days after receiving from an electric provider a completed application for a permit relating to electric transmission facilities, the department shall approve or deny the application; provided, however, the department may exercise a one-time, 10-business-day extension for its consideration of the application for a permit upon written notice to the applicant.

(3) Unless waived by the applicant, if the department fails to approve or deny the application for a permit within the required period under subdivision (2), the requested permit shall be deemed approved by the department upon the posting of the deposit or bond required by subsection (c).

(4) In the event that the application for a permit is denied, the applicant, within 10 business days, may request review by the director, in which event the director, within 10 business days, shall render a decision in writing either affirming or reversing the permit denial, along with the reasons for any permit denial.

(e) Nothing in this section shall be construed to require the department to acquire rights-of-way to accommodate an electric provider’s electric transmission facilities.

(f)(1) For purposes of this section, “electric provider” has the same meaning as provided in Section 37-16-3. The term includes the Tennessee Valley Authority and includes an authority as defined in Section 11-50A-1.

(2) For purposes of this section, “electric transmission facilities” means facilities distributing or transmitting electricity at voltages of 40,000 volts or greater.

(g) In any condemnation action tangential to an application for a permit under this section, on motion from the plaintiff, the circuit court shall enter an order assigning the case to the expedited track and shall ensure resolution as expeditiously as feasible.

(Code 1923, §1334; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §28; Act 2025-389, §1-2.)

§ 23-1-5 Payment of Costs of Relocation of Utility Facilities Necessitated by Construction of Highways

(a) Whenever the Director of Transportation shall determine and order that the relocation of any utility facility is necessitated by the construction of any project on the national system of interstate and defense highways, including the extensions thereof within urban areas, the utility owning or operating the utility facility shall relocate the facility in accordance with the order of the Director of Transportation. Notwithstanding the foregoing, if the cost of the utility facility relocation is eligible and approved for reimbursement by the federal government, the cost of the relocation of the utility facility shall be paid by the state as a part of the cost of the construction of the project out of the funds then or thereafter available for the highway construction after the utility has furnished the Director of Transportation with all papers, records, or other supporting documents required by the director. After the final federal Bureau of Public Roads’ audit, the utility shall repay to the state the difference, if any, between the total amount paid by the state to the utility for the relocation and the total amount collected by the state from federal participation on the utility relocation, plus the state’s matching share of the federal participation.

(b) Whenever the Director of Transportation shall determine and order that the relocation of any utility facility is necessitated by the construction of any highway, road, or street, other than the highways that are a part of the national system of interstate and defense highways referred to in subsection (a) of this section, the utility owning or operating the facility shall relocate the facility in accordance with the order of the Director of Transportation at its own expense. Notwithstanding the foregoing, if the facilities to be relocated are owned by any utility which had a gross income of two hundred fifty million dollars ($250,000,000) or less for the calendar year immediately preceding the relocation, or in the case of utilities which may be hereafter organized and created, which have a gross income of two hundred fifty million dollars ($250,000,000) or less in their first complete year of operation or in the calendar year immediately preceding the relocation or, in the case of utilities owned or operated by a corporation organized pursuant to Article 8, Chapter 50, Title 11, the cost of the relocation of the utility facility shall be paid by the state as a part of the cost of the construction of the project out of the funds then or thereafter available for the highway construction after the utility has furnished the Director of Transportation with all papers, records, or other supporting documents required by the director. After the final federal Bureau of Public Roads’ audit, the utility shall repay to the state the difference, if any, between the total amount paid by the state to the utility for the relocation and the total amount collected by the state from federal participation on the utility relocation, plus the state’s matching share of the federal participation.

(c) The Director of Transportation may enter into contracts or agreements and conform any existing contracts or agreements with utilities in order to effectuate the purposes of this section.

(d) The word utility shall include publicly, privately, and cooperatively owned utilities. The words cost of relocation shall include the entire amount paid by the utility properly attributable to the relocation after deducting therefrom any increase in the value of the new facility and any salvage value derived from the old facility. The words national system of interstate and defense highways mean the national system of interstate and defense highways or interstate system described in subsection (d) of Section 103 of Title 23, United States Code.

(Acts 1961, No. 474, p. 529; Acts 1982, No. 82-275, p. 346, §1; Acts 1994, No. 94-340, p. 580, §1; Act 2000-695, p. 1416, §1; Act 2000-723, p. 1548, §1; Act 2001-473, p. 633, §1; Act 2004-93, p. 123, §1; Act 2010-390, p. 639, §1.)

§ 23-1-6 Signs, Markers, and Advertising - on Rights-of-Way

Signs, markers, and advertising on the rights-of-way of state controlled highways are prohibited except those official signs or markers placed thereon by the State Department of Transportation or under its authority.

(Code 1923, §1344; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §36.)

§ 23-1-7 Signs, Markers, and Advertising - Tourist Attractions

(a) Upon the request of the Director of the Alabama Tourism Department, the Director of the State Department of Transportation may cause to be constructed and erected along state highways appropriate directional markers designating major tourist attractions of Alabama.

(b) The Director of the Alabama Tourism Department shall determine the attractions to be so designated and shall upon the recommendation of the Director of the State Department of Transportation determine the number of markers needed and the location of such markers.

(c) Expenses incurred in carrying out the provisions of this section shall be paid from that portion of the proceeds of the privilege license tax levied on lodgings by Chapter 26 of Title 40, earmarked for state travel advertising and travel promotion by the Alabama Tourism Department for tourist advertising and shall be paid upon warrants drawn by the state Comptroller, upon the approval of the Director of the Alabama Tourism Department, not to exceed $10,000.00 per fiscal biennium.

(d) This section shall not be construed as repealing the provisions of Chapter 7 of Title 41 which prohibit the purchase of advertising in newspapers, magazines, programs, or other periodicals published in the state with funds appropriated for tourist advertising.

(Acts 1967, No. 217, p. 583.)

§ 23-1-8 Numbers and Names of Highways

All highways built or maintained by and through federal or state aid shall be designated by numbers and by names, where such highways are known by names, on the directional signs erected along said highways and upon the maps authorized and published by the state. Memorial or other distinctive highways built or maintained by federal or state aid, such as the Bankhead Highway, Craft Highway, Bee Line Highway, Spanish Trail Highway, Brandon Highway, Jefferson Davis Highway, Dixie Highway, Jackson Highway, Lee Highway and such other memorial roads as may hereafter be designated, shall be designated on such markers, signs, and maps by names as well as by numbers.

(Acts 1931, No. 702, p. 827; Code 1940, T. 23, §39.)

§ 23-1-8.1 Expenditure of State Funds for Erection and Maintenance of Signs Designating Roads, Bridges, Etc., in Honor or Memory of Individuals

After September 1, 1979, no state funds shall be expended in this state for purposes of erecting and maintaining signs designating roads, bridges, or buildings in honor or in memory of any individual; provided, however, that the State Department of Transportation may continue to prepare and erect such signs so long as the actual cost of such preparation and maintenance is paid for by private funds or city or county government funds.

(Acts 1979, No. 79-707, p. 1259.)

§ 23-1-9 Elimination of Railroad Grade Crossings

Whenever the funds of the state are being expended for the construction, maintenance, or repair of a public highway, the State Department of Transportation shall have the power and authority to compel all railways operating in this state to construct viaducts, tunnels, underpasses, or bridges to the full extent of the width of the right-of-way and over the tracks as owned or operated by any railway when, in the judgment of the State Department of Transportation, such viaducts, tunnels, underpasses, or bridges are necessary for the safety of the general public and whereby a dangerous grade crossing is eliminated. The State Department of Transportation may appropriate out of the funds credited to the State Department of Transportation for the construction and maintenance of highways an amount not to exceed 50 percent of the cost to construct said viaducts, tunnels, underpasses, or bridges to the full extent of the width of the right-of-way and over the tracks as owned or operated by any railway in this state. If after due notice to a railroad that such a viaduct, tunnel, underpass, or bridge, in the judgment of the State Department of Transportation, is necessary to be built or constructed across the width of the right-of-way and over the tracks of the railway and such railway fails or refuses to comply with the order of the State Department of Transportation as provided in this section, the State Department of Transportation is empowered and authorized to forthwith build or construct such viaducts, tunnels, underpasses, or bridges, and the amounts so expended for such construction as provided in this section, shall constitute a charge against such railway and the State Department of Transportation shall render a bill to such railway stating the amounts expended and for what purpose; and upon the failure or refusal of such railway to make payment of the amount due the state, the State Department of Transportation shall forward all data and information to the Attorney General of this state, who shall immediately institute an action in the name of the State of Alabama, as provided by law, for the recovery of the amount as reported by the State Department of Transportation as due by the railway for the funds to be expended in the construction of viaducts, tunnels, underpasses, or bridges across the width of the right-of-way and over the tracks of such railway. Upon the recovery of such funds, the amount shall be paid into the State Treasury and credited to the account of the State Department of Transportation from which such funds were withdrawn; but said railway shall not be required to pay exceeding 50 percent of the cost thereof.

(Code 1923, §1343; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §35; Acts 1959, No. 653, p. 1578, §2; Acts 1961, Ex. Sess., No. 213, p. 2208.)

§ 23-1-10 “Blue Reflective Markers” and “Fire/Water Hydrant” Defined; Purpose and Installation of Blue Reflective Markers

(a) For purposes of this section, the following words and phrases shall have the respective meanings ascribed to them, except where the context clearly indicates otherwise:

(1) BLUE REFLECTIVE MARKERS. Nonlighted, but reflective devices which are blue in color of the reflected light and conform to the most recent edition of the Manual on Uniform Traffic Control Devices for Streets and Highways and/or other standards issued or endorsed by the Director of Transportation and the federal highway administrator.

(2) FIRE/WATER HYDRANT. All standpipe hydrants installed on public and private water delivery systems which are installed along public roads within the state, and which are of a size and style to allow adequate water supply to fill fire suppression vehicles of municipal and/or certified volunteer fire departments or furnish a supply of water to trucks at a fire scene.

(b) Blue reflective markers shall be used exclusively for the purpose of indicating the location of fire/water hydrants which are located on public roadways within the state, or on private property with the owner’s permission. Markers which are installed so as to be adhered to paved road surfaces or which are placed anywhere within the highway right-of-way shall be placed in conformance with the most recent edition of the Manual on Uniform Traffic Control Devices for Streets and Highways and/or other standards issued or endorsed by the Director of Transportation and the federal highway administrator.

(c) Blue reflective markers may be installed by any municipality, county, fire district, fire or water authority, or any certified volunteer fire department within their primary coverage areas and shall be recognized by all fire departments and firefighters for the purpose stated.

(Acts 1983, 3rd Ex. Sess., No. 83-806, p. 19.)

Article 2 Department of Transportation

§ 23-1-20 Creation

There shall be a State Department of Transportation. Notwithstanding any other provision of law, whenever any act, section of the Code of Alabama 1975, or any other provision of law refers to the State Highway Department, it shall be deemed a reference to the State Department of Transportation.

(Acts 1939, No. 13, p. 9; Code 1940, T. 23, §1; Acts 1993, 1st Ex. Sess., No. 93-843, p. 54, §1.)

§ 23-1-21 Director of Transportation

The chief executive officer of the State Department of Transportation shall be known as the Director of Transportation, who shall be appointed by the Governor and shall hold office at the pleasure of the Governor. All the powers, authority, and duties vested in the State Department of Transportation shall be exercised by the Director of Transportation.

Before entering upon the duties of office, the Director of Transportation shall execute to the State of Alabama a bond, to be approved by the Governor, in an amount to be fixed by the Governor, for the faithful performance of his or her duties.

(Code 1923, §1302; Acts 1927, No. 347, p. 348; Acts 1931, No. 10, p. 7; Acts 1939, No. 13, p. 9; Code 1940, T. 23, §2; Acts 1943, No. 122, p. 123; Acts 1961, Ex. Sess., No. 208, p. 2190; Acts 1993, 1st Ex. Sess., No. 93-843, p. 54, §2.)

§ 23-1-21.1 Definitions

The following terms, whenever used or referred to in this section and Sections 23-1-21.2 and 23-1-21.3, shall have the following meanings, except in those instances where the context clearly indicates a different meaning:

(1) DIRECTOR. The Director of the State of Alabama State Department of Transportation.

(2) PUBLIC TRANSPORTATION. Transportation which is appropriate to transport people by bus, rail, or other conveyance, serving the general public. The terms “mass transportation,” “mass transit,” “public transit,” “ridesharing,” “carpooling,” “vanpooling,” and “buspooling” are included within this definition and shall be considered synonymous with “public transportation.”

(3) MUNICIPALITY. Any city, town, or like governing body.

(4) COUNTY. Any county in the State of Alabama.

(5) TRANSIT AUTHORITY. Any transit authority organized within the state or authority organized to serve a metropolitan or urbanized area which borders on the state boundary.

(6) LOCAL ENTITIES. Municipalities, cities, towns, counties, business and nonprofit corporations, transit authorities, planning bodies, or similar organizations or consolidations thereof, including those bordering on the state boundary.

(7) PLANNING BODY. Any planning organization duly constituted under state law, whether a city, county, or regional planning commission, or a metropolitan planning organization.

(8) COMPREHENSIVE TRANSPORTATION PLANNING PROCESS. A continuing planning process carried on cooperatively between the state and local entities for the purpose of transportation planning.

(Acts 1982, No. 82-456, p. 709, §1; Acts 1985, No. 85-753, p. 1252, §1.)

§ 23-1-21.2 Authority of Director with Regard to Public Transportation

The director, acting alone or through, and in cooperation with local entities, is hereby delegated the authority to:

(1) Enter into agreements with local entities to provide public transportation and to administer any program or programs, whether rural or urban, relative to public transportation resulting from federal transportation legislation. This shall include, but not be limited to, applying for, accepting, and expending federal public transportation funds in accordance with applicable federal laws and regulations.

(2) Enter into agreements with the United States for federal assistance for public transportation.

(3) Enter into agreements with local entities to perform and/or cooperate in the performance of transportation planning for public transportation improvements. However, the director shall not perform such planning until such time as the local entities affected enter into agreement with the director to carry out a planning process.

(4) Provide any available technical assistance to local entities for formulating a program of public transportation projects to assure that said projects are in accordance with the comprehensive transportation planning process where such process is established and is a prerequisite for federal assistance.

(5) Administer any state funds authorized from time to time by the Legislature for the purpose of public transportation.

(6) Develop and promulgate such rules and regulations as are determined necessary to insure compliance with federal laws and regulations.

(Acts 1982, No. 82-456, p. 709, §2; Acts 1985, No. 85-753, p. 1252, §1.)

§ 23-1-21.3 Cooperation with Federal, State and Local Entities in Administration of Public Transportation Programs

The director is authorized to administer any public transportation program with such flexibility as to permit full cooperation between federal, state, and local entities, so as to result in effective and economical programs which are responsive to needs and found to be in the public interest.

(Acts 1982, No. 82-456, p. 709, §3.)

§ 23-1-21.4 Deputy Directors

(a) The Director of Transportation may appoint up to three deputy directors of transportation with the approval of the Governor. The Director of Transportation may assign duties and responsibilities to a deputy director as may be necessary for the proper administration and execution of the work of the Department of Transportation. A deputy director shall be paid from funds of the department in the same manner as salaries and expenses of other department employees are paid. A deputy director shall give bond for the faithful performance of his or her duties in an amount approved by the director.

(b)(1) A deputy director appointed pursuant to this section prior to May 13, 2016, shall serve at the pleasure of the Director of Transportation and shall not be subject to the state Merit System law, but shall otherwise be considered a state employee for all other purposes.

(2) After May 13, 2016, a deputy director appointed pursuant to this section shall be in the unclassified service under the state Merit System law.

(Act 2012-392, p. 1051, §1; Act 2016-413, §1.)

§ 23-1-22 Chief Engineer - Office Created; Appointment, Salary, Expenses, and Bond; Applicability of Merit System

(a) There is hereby created within the State Department of Transportation the position of chief engineer, which shall be filled by appointment by the Director of Transportation, with the approval of the Governor. The chief engineer shall be allowed traveling expenses when traveling on business of the state pursuant to Article 2 of Chapter 7 of Title 36, all to be paid from funds of the State Department of Transportation as salaries and expenses of other State Department of Transportation employees are paid. The chief engineer shall give bond for the faithful performance of his or her duties in an amount to be approved by the Governor.

(b)(1) The chief engineer appointed prior to May 13, 2016, shall serve at the pleasure of and under the direction of the Director of Transportation and shall be an exempt employee under the state Merit System regulations.

(2) After May 13, 2016, the chief engineer shall be appointed in the unclassified service under the state Merit System law.

(Acts 1959, No. 497, p. 1231, §1; Acts 1969, No. 506, p. 963; Act 2012-396, p. 1076, §1; Act 2016-413, §1.)

§ 23-1-23 Chief Engineer - Qualifications

The chief engineer shall be a licensed professional engineer in the State of Alabama with a minimum of 15 years’ progressive professional engineering experience pertaining to the planning, development, construction, maintenance, and repair of highways and bridges. The chief engineer shall either hold a degree in civil engineering from an accredited school of engineering or shall have served at least 10 years as a Division Engineer or Bureau Chief with the Department of Transportation and shall possess a detailed knowledge of engineering principles and their application to highways and bridges. The chief engineer shall be a citizen of this state and shall continuously be a licensed professional engineer in this state while employed.

(Acts 1959, No. 497, p. 1231, §2; Acts 1969, No. 506, p. 963; Act 2012-369, p. 1076, §1.)

§ 23-1-24 Chief Engineer - Duties

The chief engineer of the State Department of Transportation shall coordinate the general mathematical, physical, and engineering sciences as applied to the planning, design, construction, maintenance, or repair of highways and bridges in this state. The Director of Transportation may assign general engineering, administrative, and operational activities to other qualified employees of the department. The chief engineer shall sign the title sheets of all plans let to contract by the department. The duties of the chief engineer shall be subject to and under the direction, control, and supervision of the Director of Transportation.

(Acts 1959, No. 497, p. 1231, §3; Acts 1969, No. 506, p. 963; Act 2012-396, p. 1076, §1.)

§ 23-1-25 Legal Division - Creation; Appointment of Chief Counsel

There is hereby established and created in the State Department of Transportation a legal division, which shall be headed by and be under the direction, supervision and control of an officer who shall be designated as chief counsel for the State Department of Transportation, to be appointed by the Director of Transportation with the approval of the Attorney General, subject to provisions of the state Merit System laws.

(Acts 1963, No. 581, p. 1267, §1.)

§ 23-1-26 Legal Division - Appointment of Assistant Counsel; Chief and Assistant Counsel to Be Commissioned and Take Oath as Assistant Attorneys General

The Director of Transportation, with the approval of the Attorney General and subject to the state Merit System law, may appoint assistant counsel as may be necessary to transact the legal business of the Department of Transportation. The chief counsel and the assistant counsel shall each be commissioned as assistant attorneys general. The chief counsel and the assistant counsel and their stenographic and clerical assistants shall constitute the legal division of the Department of Transportation. The director shall consider the racial, gender, geographic, urban/rural, and economic diversity of the state when appointing assistant counsel.

(Acts 1963, No. 581, p. 1267, §2; Act 2015-437, §1.)

§ 23-1-27 Legal Division - Salaries

The salaries of the chief counsel and assistant counsel shall be fixed in accordance with the Merit System pay plan for assistant attorneys general and shall be paid as the salaries of other state officials and employees are paid from funds appropriated or otherwise available to the State Department of Transportation.

(Acts 1963, No. 581, p. 1267, §3.)

§ 23-1-28 Legal Division - Offices, Etc.; Expenses

The chief counsel and the assistant counsel shall be furnished with offices, necessary stenographic and clerical help, subject to the provisions of the state Merit System law, and office equipment, stationery, and postage and shall be allowed traveling expenses when traveling on business of the state pursuant to Article 2 of Chapter 7 of Title 36, all to be paid by the State Department of Transportation from funds appropriated or otherwise available therefor.

(Acts 1963, No. 581, p. 1267, §4.)

§ 23-1-29 Legal Division - Charging of Salaries and Expenses

The salaries of the chief counsel, assistant counsel, stenographic and clerical help, and other expenses of the legal division shall be charged, so far as practicable, to the division or function of the State Department of Transportation for which the expense was incurred.

(Acts 1963, No. 581, p. 1267, §5.)

§ 23-1-30 Legal Division - Functions and Duties

The functions and duties of the legal division of the State Department of Transportation shall, as all other assistant attorneys general, include the following:

(1) To advise the Director of Transportation and other personnel of the State Department of Transportation on the legal aspects of all State Department of Transportation business;

(2) To examine and advise as to the legality of all contracts and agreements entered into by the State Department of Transportation or the Director of Transportation;

(3) To take all legal action necessary or desirable in the acquisition of rights-of-way for state and interstate highways;

(4) To appear in court as attorney for the State of Alabama and the State Department of Transportation in the acquisition of rights-of-way for state and interstate highways; and

(5) To represent the State Department of Transportation and the Director of Transportation in all legal proceedings to which the State Department of Transportation or the Director of Transportation is a party.

(Acts 1963, No. 581, p. 1267, §6.)

§ 23-1-31 Legal Division - Private Practice Prohibited

The chief counsel and assistant counsel shall devote their full time to the State Department of Transportation and shall not, during their incumbency in office, engage in the private practice of law.

(Acts 1963, No. 581, p. 1267, §7.)

§ 23-1-32 Offices; Director Full-Time Position

The State Department of Transportation shall be provided with suitable offices at the State Capitol or such other places as the needs of the department may require, but no office in any other place than the Capitol shall be established as an office of said department without the consent and approval of the Governor in writing. All offices shall be kept open at such times as the business of the department and the convenience and interest of the public may require. The offices shall be conveniently and properly furnished at the expense of the state and shall be the depository for all records of the State Department of Transportation. The Director of Transportation shall give his entire time to the duties of his office.

(Code 1923, §1306; Acts 1927, No. 347, p. 348; Acts 1931, No. 10, p. 7; Code 1940, T. 23, §7; Act 2001-344, p. 446, §1.)

§ 23-1-33 Official Records of Department; Appointment of Assistants and Personnel

The State Department of Transportation shall keep an official record of all its acts and doings. The Director of Transportation shall, under provisions of the Merit System, appoint such assistants and personnel as may be necessary for the proper carrying on of the work of the State Department of Transportation. The compensation of such assistants and personnel shall be paid out of the state highway funds.

(Code 1923, §1311; Acts 1927, No. 347, p. 348; Acts 1931, No. 10, p. 7; Code 1940, T. 23, §9.)

§ 23-1-34 Copies of Plans and Specifications to Be Kept; Files and Records Open to Public Inspection; Records as Evidence

The State Department of Transportation shall keep on file in its office copies of all plans and specifications prepared by the State Department of Transportation, and the files and records of such department shall, under reasonable regulations, be kept open for inspection of the public at all reasonable hours. Certified copies of records shall be received in evidence in all the courts of this state.

(Code 1923, §1315; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §12.)

§ 23-1-35 Annual Report to Governor

On or before April 1 in each year, the State Department of Transportation shall submit a printed report to the Governor, stating as nearly as possible the number of miles of road built or improved and also the culverts and bridges constructed during the preceding fiscal year, showing the cost and general character of same, and the location of material suitable for road construction, showing where such roads, culverts, and bridges have been constructed. The department shall also recommend to the Governor and Legislature such legislation as it deems advisable and furnish any other information concerning road and bridge improvements as may be deemed expedient by the Governor and the Legislature.

(Code 1923, §1304; Acts 1927, No. 347, p. 348; Acts 1931, No. 10, p. 7; Code 1940, T. 23, §5.)

§ 23-1-36 Employees Used on Transferred County Roads and Bridges

Whenever responsibility for the construction, maintenance, and repair of county roads and bridges is transferred by law from any county commission to the State Department of Transportation, the employees used by the State Department of Transportation in any such county in connection with the construction, maintenance, and repair of the county’s roads and bridges shall be drawn insofar as possible from residents of the county. In the event of a vacancy in any such position of employment in the classified service of the state, the personnel director, upon request of the Director of Transportation that the personnel director certify to him the names of persons eligible for appointment to the position, shall establish a county register of eligibles who are residents of the county in which the vacancy occurs, and the personnel director shall certify the names of persons appearing on the county register for appointment to the position. If, however, no appointment is made from the county register or if there is no county register, appointment shall be made from the statewide register.

(Acts 1956, 1st Ex. Sess., No. 4, p. 11.)

§ 23-1-37 Use of Convict Labor

The State Department of Transportation may work convicts in the construction or maintenance of public roads and bridges of Alabama, as may now or may hereafter be provided by law, or may work convicts in the construction, repairing, or maintaining public roads or bridges by contract or agreement with the Department of Corrections as to the number of convicts required to do such work; provided, that the charge for labor of such convicts shall be in accordance with the terms of the contract which shall be negotiated by and between the Director of the State Department of Transportation and the Department of Corrections, with the approval of the Governor, and no other expense incurred by the use of such convicts shall be chargeable to the State Department of Transportation, except such necessary tools and implements used in the construction, repairing, or maintaining of the public roads and bridges upon which the convicts are employed.

(Code 1923, §1337; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §31; Acts 1965, No. 652, p. 1176.)

§ 23-1-38 Paying Expenses of Nonemployees Prohibited

Any officer or employee of the State Department of Transportation who pays or authorizes to be paid the expense account of any person not employed by the State Department of Transportation shall be guilty of a misdemeanor.

(Acts 1951, No. 713, p. 1251.)

§ 23-1-39 Seal; Power to Administer Oaths, Etc

The State Department of Transportation shall have a seal and shall have the power to administer oaths, take affidavits, and make certificates.

(Code 1923, §1305; Acts 1927, No. 347, p. 348; Acts 1931, No. 10, p. 7; Code 1940, T. 23, §6.)

§ 23-1-40 Duties and Powers Generally

(a) It shall be the duty of the Department of Transportation to designate the roads to be constructed, repaired, and maintained and to construct, standardize, repair, and maintain roads and bridges of this state; and it shall have authority to make contracts or agreements to construct or pave the roadway only of the street or streets which will serve to connect the state highway constructed or repaired by the department within any municipality in the State of Alabama.

(b) In such municipalities in which the Department of Transportation has not designated the street or streets which are a part of the state highways constructed or repaired by the department, it shall be the duty of the department to designate such street or streets. The department may also cooperate or contract with any municipality or county in the paving or improving of any street or streets, highway or highways, or walkway or walkways upon which a state educational or eleemosynary institution, or the property thereof, may front or abut; provided, that where the state educational or eleemosynary institution or the property thereof fronts or abuts on both sides of such street or streets, highway or highways, or walkway or walkways, the department is hereby authorized to and shall expend an amount of money sufficient to cover the entire cost thereof; provided further, that where such institution or the property thereof fronts or abuts on only one side of such street or streets, highway or highways, or walkway or walkways, the department shall expend an amount of money sufficient to cover only one half of the cost thereof; provided, that in such case, with the special approval of the Governor, the department shall be authorized to expend a sum of money sufficient for the entire cost and, provided further, the department may also, with the special approval of the Governor, improve or pave any street or streets, driveway or driveways, including curb and gutter, and walkway or walkways on, by, or through the grounds upon which a state educational or eleemosynary institution is located and to pay the entire cost thereof.

(c) The Department of Transportation shall cause to be made and kept in its office a general highway map of the state which shall show all state roads.

(d) The Department of Transportation shall collect information and prepare statistics relative to the mileage, character, and condition of the roads and bridges in all counties of the state.

(e) The Department of Transportation shall investigate and determine the methods of road construction best adapted to the various sections of the state and shall establish standards for the maintenance of roads and bridges which have been constructed with state aid.

(f) The Department of Transportation may, at all reasonable times, be consulted by county and municipal officials relative to any matter relating to the construction of roads and bridges or culverts, and the department may also call on all county and municipal officials for any information or assistance it may require and it shall be their duty to supply the same.

(g) The Department of Transportation shall determine the character and have the general supervision over the construction and maintenance of all the public roads, bridges, and culverts in the state where the funds of the state are used and shall have a general supervision over the expenditure of any funds apportioned to any county of the state for the construction and maintenance of all public roads, bridges, and culverts in each county.

(h)(1) In addition to any other authority to enter into contracts for construction of a public road, bridge, or tunnel, and work incidental or related thereto, as may be provided by law, the Department of Transportation may enter into contracts, agreements, or understandings with any other public and private parties including, but not limited to, all of the following: Individuals, corporations, partnerships, joint ventures, limited liability companies, and other private parties; public or private partnerships, or both, or other similar joint ventures; the federal government; any department, agency, governmental or quasi-governmental body, public corporation, instrumentality, or subdivision of the United States, the State of Alabama, or any other state of the United States, or any agency, governmental or quasi-governmental body, instrumentality, or subdivision thereof, for the construction of a public road, bridge, or tunnel, and work incidental or related thereto, under the jurisdiction of the department, or any part thereof, including, but not limited to, the following:

a. Design-build, design-build-operate, design-build-own-operate, design-build-own-operate-maintain, design-build-finance-operate-maintain, or other similar arrangements or agreements pursuant to which the design, right-of-way acquisition, relocation of structures or utilities, construction, financing, ownership, management, maintenance, and operation, or any combination thereof, of a public road, bridge, or tunnel project is accomplished by the department or on behalf of the department by any of the aforementioned entities or methods.

b. Leases, licenses, franchises, concessions, or other agreements for the development, operation, management, or undertaking of all or any part of a public road, bridge, or tunnel project.

(2) The public road, bridge, or tunnel project may be awarded through any existing procurement authority, proposals, or other means of procurement used for public works projects delivered as provided in subdivision (1).

(3) The department may enter into a contract for a public road, bridge, or tunnel project under this section when the estimated, projected, or budgeted construction cost is not less than one hundred million dollars ($100,000,000). The department shall not group projects that are more than one mile apart in order to meet the $100 million construction cost requirement. This section shall not apply to asphalt pavement resurfacing projects.

(4) The department shall develop procedures to implement this section, including, but not limited to, proposal content, selection criteria, prequalification, applicant interview, proposal evaluation, proposal negotiation, selection, and award, which will be outlined in each department request for proposal.

(5) Notwithstanding any provision of law to the contrary, proposals under this section, with respect to public road, bridge, or tunnel projects that the department determines can be more efficiently accomplished by any of the means enumerated in subdivision (1), may be evaluated and awarded by the department based on qualifications of participants or best value, or both, as evaluated by procedures of the department and taking into consideration the best interest of the State of Alabama.

(6) Proposals shall use the standard specifications of the department or other specifications the department determines necessary for the project.

(i) (1) Notwithstanding any law to the contrary, the Department of Transportation may provide compensation for an uncontested claim not to exceed five thousand dollars ($5,000) for injury to a person or property or to pay an unpaid vendor invoice without approval of the State Board of Adjustment where the department determines in justice and good morals the claim should be paid. Any claim shall be subject to the same statute of limitations as provided in Section 41-9-65. The department shall develop procedures for the filing, review, and payment of uncontested claims. Any claim prior to payment shall be approved by the Director of Transportation or his or her designee. The department shall submit a request to pay an uncontested claim to the Comptroller who shall issue and forward payment to the department within 30 days of receipt.

(2) Any contested claim filed pursuant to this subsection shall be forwarded by the department to the State Board of Adjustment.

(3) The submission of a claim to the department under this section shall toll the statute of limitations set forth in Section 41-9-65.

(Code 1923, §§1303, 1316; Acts 1927, No. 347, p. 348; Acts 1935, No. 339, p. 773; Acts 1939, No. 13, p. 9; Code 1940, T. 23, §§3, 13; Acts 1951, No. 887, p. 1530; Act 2016-257, §1; Act 2017-393, §1.)

§ 23-1-41 Self-Insurance Program for Department Employees

(a) The State Department of Transportation is authorized and empowered and may, with the approval of the Governor provide for a self-insurance program covering a certain amount to be paid to the employees of the State Department of Transportation who may be killed or injured in the line and scope of their employment; provided, that the amount paid to any such party on account of death or injury shall not exceed the amount or amounts as provided by the Workers’ Compensation Act of this state. The Director of Transportation may, with the approval of the Governor, enter into an agreement with an agency, company, or corporation qualified to administer a self-insured Workers’ Compensation program to administer the program or, in the alternative, the director may elect to administer the program with State Department of Transportation personnel. The cost of this program shall be paid out of the funds of the State Department of Transportation as provided by law, and to that end and for that purpose, the department may, with the consent and approval of the Governor, disburse any moneys appropriated or set apart for the construction, repair, or maintenance of the public roads, bridges, and highways of this state.

(b) The provisions of the 1981 amendments to this section shall be retroactive to February 1, 1980.

(c) Notwithstanding the provisions of subsection (b) of this section, any reinsurance policies which are in effect as of May 17, 1981, shall continue in force until September 30, 1981.

(Code 1923, §1303; Acts 1927, No. 347, p. 348; Acts 1935, No. 339, p. 773; Acts 1939, No. 13, p. 9; Code 1940, T. 23, §3; Acts 1951, No. 887, p. 1530; Acts 1981, No. 81-625, p. 1040.)

§ 23-1-42 Roads, Etc., Located on State Institutions

(a) The roads and streets, drives, and parking areas located on the campus of any state institution of higher learning, the Alabama state hospitals, the Partlow State School and Hospital and the Alabama Agricultural Center in the City of Montgomery shall be deemed a part of the state highway system and may be constructed, maintained, and repaired by the State Department of Transportation in the same manner as other highways and roads in the state highway system.

(b) The State Department of Transportation or the director thereof is hereby authorized and empowered to expend any funds in the Public Road and Bridge Fund to effectuate the purpose of this section, provided such expenditure is first approved by the Governor.

(Acts 1959, No. 500, p. 1235.)

§ 23-1-43 State Agricultural Experiment Station Roads

The State Department of Transportation shall construct, repair, and maintain all roads on land owned by the state which is located within the boundaries of any state agricultural experiment station or of any branch or substation, and such roads shall be considered a part of the state highway system.

(Acts 1956, 1st Ex. Sess., No. 129, p. 191.)

§ 23-1-44 Right of Entry for Purpose of Making Surveys and Taking Soil Samples

(a) All officers and employees of the State Department of Transportation are hereby authorized and empowered to enter upon and go across the lands of any individual or corporation in the State of Alabama for the purpose of making any and all surveys necessary for the construction of any highways, roads, and bridges to be constructed by it or under its supervision and to enter upon the property of individuals or corporations for the purpose of securing samples of the land to determine if same can be used as a source of material for the construction, maintenance, and improvement of public highways, roads, and bridges.

(b) Such officers or employees are not relieved of civil liability for any damages caused by any acts authorized in subsection (a) of this section.

(c) Such officers or employees may erect or place such stobs, stakes, monuments, or other markers as may be required in carrying out such survey.

(Acts 1939, No. 210, p. 363; Code 1940, T. 23, §§40-42.)

§ 23-1-45 Acquisition of Rights-of-Way; Petition to Deed Property Back to Land Owner

(a)(1) Any other provision of law to the contrary notwithstanding, the Director of Transportation shall have authority to acquire the rights-of-way deemed necessary by the State Department of Transportation for the construction of a state road, either by purchase or by the exercise of the right of eminent domain in condemnation proceedings as provided under the laws of this state, or the county or municipality in which such road is located shall acquire such rights-of-way deemed necessary by the Director of Transportation, when requested to do so by the Director of Transportation.

(2) If the county or municipality fails or refuses to acquire the rights-of-way, the Director of Transportation may acquire such rights-of-way as authorized in subdivision (1). Rights-of-way acquired pursuant to this section shall be paid for in the manner prescribed by law.

(b)(1) If at any point a public road is abandoned, the property owner of the adjacent property that has the abandoned road running through his or her parcel may petition the governing county or municipal body that owns the road to deed the property on which the road is situated back to the owner if: (i) the governing body had acquired the right-of-way from the private owner of the adjacent property on both sides of the road in order to construct a road; (ii) the original owner or current owner owns both sides of the road; (iii) the constructed road has been abandoned and no longer serves the original purpose for which it was purchased due to certain unforeseeable conditions rendering the road unusable; and (iv) the property owner can close to the midline of the right-of-way.

(2) The petition shall be granted unless: (i) a property owner of the adjacent property to the road would no longer have road access to his or her property if ownership reverts back to the petitioning owner; (ii) the road provides access to, reasonably may be developed to grant access to, or is otherwise any existing or planned greenway trail as defined in Section 41-10-860, and outlined in its master plan, which is recognized by the state, county, or municipality, pursuant to the Alabama Sweet Water Trails Project, Article 23 of Chapter 10 of Title 41; or (iii) the governing county or municipal body can articulate a future use of the property consistent with the use articulated at the time the property was purchased.

(3) This subsection does not apply to the State of Alabama or the State Department of Transportation.

(Acts 1955, No. 566, p. 1230; Act 2025-426, §1.)

§ 23-1-46 Changes or Additions to State Road System

The State Department of Transportation shall have full authority to make such changes or additions to the system of state roads to conform to the requirements of the Federal Aid Law as it may deem proper and construct or maintain the same with state aid under the provisions of this title.

(Code 1923, §1336; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §30.)

§ 23-1-47 Authority to Maintain, Etc., City and Town Streets and Roads

(a) It is hereby declared by the Legislature of Alabama that all city and town streets and roads in the State of Alabama, including viaducts, bridges, and culverts, do now, and will in the future, serve a state purpose and are of benefit to the people of the state, that said streets and roads, including viaducts, bridges, and culverts, are public highways and bridges and that it is a proper and legitimate function for the state to provide for the cost of maintaining, improving, constructing, and reconstructing such streets and roads in cooperation with the city or town involved.

(b) The State Department of Transportation, hereinafter referred to as the department, in cooperation with the city or town involved, is hereby authorized and empowered to make expenditures from its funds for all, or any part of, the costs of maintaining, improving, repairing, constructing, and reconstructing all or any portion of the streets and roads, including viaducts, bridges and culverts, in every city and town in the State of Alabama; provided, however, that nothing contained in this section shall require the department to maintain, improve, repair, construct, or reconstruct the streets and roads or portions thereof in any city or town in the state; and provided further, that nothing contained in this section shall affect the duties and obligations of the department to maintain and repair the streets and roads or any portion thereof in any city or town which are or may hereafter be designated as connecting link roads under the provisions of Article 4 of this chapter.

(Acts 1963, 1st Ex. Sess., No. 34, p. 110.)

§ 23-1-48 Application by Counties for Construction or Maintenance of State Road or Bridge

Whenever a county commission shall desire that a state road or bridge on a state road in said county be constructed or maintained with state aid, written application shall be made by the county to the State Department of Transportation under such rules and regulations as the department may prescribe. Such application, when made, shall be considered by the department and, if approved by it, the commissioners shall direct an engineer to view said road or bridge and cause to be made surveys, plans, specifications, and estimates of the cost of construction or maintenance, and the State Department of Transportation may thereupon appropriate out of the State Highway Fund such part of the estimated cost of such work as it may deem proper, and the State Department of Transportation shall proceed to do such work by contract or with its own force. If it deems best, the department may accept appropriations from the county for said work, which shall be paid into the State Treasury to the credit of the State Highway Fund, before the work begins. Whenever a county fails to make application for the construction or maintenance of a road or bridge or the department deems it best for such work to be done, it may proceed to construct or maintain any part of the state road or bridge upon a state road and pay part or all of the cost of such work out of the State Highway Fund.

(Code 1923, §1323; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §20.)

§ 23-1-49 Furnishing of Competent Engineers

The State Department of Transportation shall furnish a competent engineer, when needed, during the progress of road or bridge construction, repair, or maintenance in any county under the provisions of this title, who shall supervise said work and see that the plans and specifications are complied with.

(Code 1923, §1324; Acts 1927, No. 347, p. 348; Code 1940, T. 48, §21.)

§ 23-1-50 Authority to Procure Equipment; Payment of Expenses

Subject to the provisions of Chapter 4, Title 41, the State Department of Transportation is authorized to rent, construct, or purchase such buildings, stock, machinery, tools, materials, and other equipment as it may find necessary for use in carrying out the provisions of this chapter and pay for the same out of the State Highway Fund. It shall also, subject to the provisions of Chapter 4 of Title 41, pay out of said fund the necessary expenses of the department of every description, including traveling expenses of the officials and engineers, superintendents, foremen and clerks, etc., while in the actual performance of their duties authorized or imposed by this chapter and also the cost of all supplies or materials furnished for said department and for the maintenance of all machinery used by the department or its agent.

(Code 1923, §1335; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §29.)

§ 23-1-50.1 Road Machinery and Equipment Management Program; Equipment Management Surplus Reserve Account

(a) It is the intent of the Legislature to give the State Department of Transportation authority to accumulate depreciation, equipment replacement allowances, and salvage value on road machinery and equipment sufficient to upgrade, replace, or make extraordinary repairs to the road machinery and equipment of the State Department of Transportation, as determined by a road machinery and equipment management program to be developed by the department.

(b) Unless the context clearly indicates otherwise, the following words and phrases will have the following meanings:

(1) STATE DEPARTMENT OF TRANSPORTATION DIVISIONS. Those divisions of the Department of Transportation responsible for road construction and maintenance over a specified geographic area of the state.

(2) DEPRECIATION. That process of allocating the original cost per fixed asset over the productive life of the asset using some generally accepted method of depreciation.

(3) EQUIPMENT MANAGEMENT SURPLUS RESERVE ACCOUNT. A special revolving account or fund to be established in the Public Road and Bridge Fund of the State Department of Transportation to accumulate depreciation, equipment replacement allowances, and salvage value to be used to upgrade, replace, or make extraordinary repairs to road machinery and equipment.

(4) EQUIPMENT REPLACEMENT ALLOWANCE. An amount, when added to the depreciation and salvage value of a unit of road machinery and equipment and accumulated in a special account, that will provide the funds to upgrade, replace, or make extraordinary repairs to that unit of road machinery and equipment.

(5) EXTRAORDINARY REPAIRS. Repairs made to extend an asset’s useful life beyond that which was originally estimated.

(6) GENERAL OFFICE. Those general and administrative offices of the State Department of Transportation located in Montgomery, Alabama.

(7) ROAD MACHINERY AND EQUIPMENT. Self-propelled equipment or other equipment commonly referred to in the State Department of Transportation as rental equipment, including aircraft.

(8) SALVAGE VALUE. That portion of a unit of road machinery and equipment’s cost that is recovered at the end of its productive life.

(c) There is created in the Public Road and Bridge Fund of the State Department of Transportation an Equipment Management Surplus Reserve Account. The director of the department is directed to establish a road machinery and equipment management program which shall determine the type, number, and distribution between the general office and department divisions of the road machinery and equipment necessary to carry out the mission of the State Department of Transportation in an efficient manner. This system shall also determine the productive life of all of the road machinery and equipment and establish depreciation rates, equipment replacement allowance, and salvage value which, when accumulated in the Equipment Management Surplus Reserve Account, will provide the necessary funds to upgrade, replace, or make extraordinary repairs to road machinery and equipment.

(d) The Equipment Management Surplus Reserve Account shall be subdivided into subaccounts as follows: One for the general office and one each for each of the department divisions. Depreciation, equipment replacement allowance, and salvage value shall be credited to the account of the general office or department division to which the unit of road machinery and equipment is assigned and shall not be commingled or transferred between the department division and the general office. The funds in each of these subaccounts of the general office and department divisions shall be available to the appropriate office or division to upgrade, replace, or to make extraordinary repairs to road machinery and equipment.

(e) There is appropriated all of the funds created to the Equipment Management Surplus Reserve Accounts, due to the depreciation, equipment replacement allowance, and salvage value of road machinery and equipment, for upgrading, replacement, or extraordinary repairs to road machinery and equipment. These funds shall not revert at the end of each fiscal year, but shall carry over to each succeeding year. It is the intent of the Legislature that funds appropriated from the Equipment Management Surplus Reserve Account be used only to upgrade, replace, or make extraordinary repairs to road machinery and equipment, and that they not be used to increase the number of units of equipment of the State Department of Transportation. It is the further intent of the Legislature to use these funds to maintain the present level of road maintenance, as opposed to using the funds to place the state in a competitive position with private enterprise. Specific funds shall be appropriated by the Legislature to increase the number of units of road machinery and equipment. It is specifically provided that the aircraft, pickup truck, and three automobiles transferred from the Department of Finance to the State Department of Transportation, pursuant to Executive Order No. 12, dated December 21, 1993, shall be added to and become a part of the Department of Transportation road machinery and equipment management program and Equipment Management Surplus Reserve Account.

(f) Any other provision of law to the contrary notwithstanding, at the end of the productive life of a unit of road machinery or equipment covered by the equipment management surplus reserve account established as provided for in this section, the unit of road machinery or equipment shall be sold at the discretion of the director, either at public auction, as provided for by the laws of the State of Alabama, or by a negotiated sale between the State Department of Transportation and any other state department or agency, and the proceeds from any sale, whether at public auction or by such negotiation, shall be paid into the equipment management surplus reserve account and credited to the subaccount to which the unit of road machinery or equipment is credited.

(g)(1) The department may develop a fleet management program for the state which will operate in a similar manner as the department’s Equipment Management Program. Any motor vehicle bought wholly or partially with state funds pursuant to the fleet management program or other state operated motor vehicle acquisition program for use of state officers, officials, or employees on official business shall be purchased from dealerships in the state.

(2) All personnel, facilities, property, equipment, and funds assigned, allocated, or appropriated to the Department of Finance, Division of Service for the operation of a transportation pool or the maintenance and repair of state-owned or operated automobiles shall transfer to the Alabama Department of Transportation, effective October 1, 2014.

(Acts 1981, No. 81-316, p. 450; Acts 1994, No. 94-689, p. 1324, §1; Act 2013-282, p. 933, §§1, 2; Act 2015-306, §1.)

§ 23-1-51 Purchase of Motor Fuels, Oils, Greases, and Lubricants

(a) All motor fuels, oils, greases, and lubricants bought by or for the State Department of Transportation for use in each county in which the construction, maintenance, and repair of the county roads and bridges have been transferred to the State Department of Transportation shall be purchased from vendors and suppliers residing in the county where such motor fuels, oils, greases, and lubricants are to be used. All such purchases shall be made on the basis of competitive bids, and contracts and purchase orders shall be awarded to the lowest responsible bidder as provided by law.

(b) The Division of Purchases and Stores of the state Finance Department, with the approval of the State Department of Transportation, shall make rules and regulations relating to the manner of advertising for bids, receiving bids, and executing contracts for such items as are enumerated in subsection (a) of this section.

(c) Any contract entered into or any purchase order issued prior to August 26, 1965, shall remain in full force and effect until the terms thereof have been complied with.

(Acts 1965, No. 580, p. 1077.)

§ 23-1-52 License Exemption for Vehicles of Department

Motor vehicles used by the State Department of Transportation, its officials or engineers, shall not be subject to any state, county, or municipal license.

(Code 1923, §1313; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §10.)

§ 23-1-53 Contracts to Do Work - Authority

The State Department of Transportation may enter into contracts with any of the counties of the state or with any of the municipalities of this state, as it may with individuals, firms, or private corporations, to do any work in the construction, repair, or maintenance of the roads, bridges, or highways in this state.

(Code 1923, §1327; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §22.)

§ 23-1-54 Contracts to Do Work - How Drawn and Approved

Every contract for road or bridge construction, repair, or maintenance under the provisions of this chapter shall be made in the name of the State of Alabama, approved by the State Department of Transportation and the Governor.

(Code 1923, §1330; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §24.)

§ 23-1-55 Contracts to Do Work - Preconditions

No contracts for construction, repair, or renewals of highways, bridges, or culverts shall be let without the approval of the Governor and until after all necessary right-of-way for such highways and right for material for construction and right-of-way for ingress and egress to said material have been legally procured and all documents covering such procurement have been placed on file with the Director of Transportation.

(Code 1923, §1333; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §27.)

§ 23-1-56 Contracts to Do Work - Qualification of Bidders

(a) Prequalifications of contractors. The Director of Transportation shall require all bidders to furnish a statement under oath, on such forms as the State Department of Transportation may prescribe, of detailed information with respect to their financial resources, equipment, past record, and experience of both the firm and personnel of the organization, together with such other information as the State Department of Transportation may deem necessary for carrying out the provisions of this chapter. Such forms shall include a financial statement actually prepared by a certified public accountant (C.P.A.) or any independent licensed public accountant approved by the Alabama State Department of Transportation, an inventory of equipment listing its location and book value, a listing of material and equipment houses with whom a line of credit is established as well as those firms from whom principal materials and equipment have been purchased during the past three years, a listing of completed construction projects and bonding companies with whom business has been done for the past three years, and a combined statement of the applicant that includes other wholly owned or substantially owned interest, as well as any other pertinent information required by the State Department of Transportation. Should the applicant’s financial statement fail to substantiate the limits required, further consideration may be given to the present market value in lieu of book value of listed assets when properly supported with substantiating evidence. A statement of an independent licensed public accountant shall not be required for the issuance of certificates under $50,000.00.

(b) Furnishing forms; certificate of qualification. Any bidder desiring to submit a bid for the performance of any contract or contracts which the State Department of Transportation proposes to let shall apply to the State Department of Transportation for qualifications and shall use for that purpose the form prescribed and furnished by the State Department of Transportation. The State Department of Transportation shall be required to act promptly upon the application for qualification and must act thereon within 30 days after the same is presented to them. Upon the receipt of any application for qualification, the State Department of Transportation shall cause the same to be examined and the statements therein to be verified and shall, thereupon, determine whether the applicant is competent, responsible, and possesses the financial resources which satisfy the terms of this chapter. If the applicant is found to possess the qualifications prescribed by this chapter and by the rules and regulations promulgated by the State Department of Transportation, the State Department of Transportation shall issue to him a certificate of qualification, which shall be valid for a period of one year or such shorter period of time as the State Department of Transportation may prescribe, unless thereafter revoked by the State Department of Transportation for cause as provided in subsection (c) of this section. The certificate of qualification shall contain a statement fixing the actual amount of work in terms of estimated cost which the applicant will be permitted to have on contract with the State Department of Transportation and not completed at any one time. Such certificate of qualification shall authorize the holder to bid on all work on which bids are taken by the State Department of Transportation during the period of time therein specified.

(c) Revocation of certificate. A certificate of qualification may be revoked by the State Department of Transportation only after notice to the qualified bidder and an opportunity to be heard. The notice shall be in writing and shall state the grounds of the proposed revocation and may be served by any sheriff of the State of Alabama or by registered or certified mail, as the State Department of Transportation shall direct. Any qualified bidder aggrieved by the decision of the State Department of Transportation upon the matter revoking his certificate may appeal from such decision to the Circuit Court of Montgomery County, Alabama, in the manner provided in subsection (f) of this section.

(d) Prerequisites to award of certificate. No bidder shall be given a certificate of qualification unless his financial statement and the investigation made by the State Department of Transportation shall show that he possesses net worth sufficient in the judgment of the State Department of Transportation to render it probable that he can satisfactorily execute his contracts and meet his obligations therein incurred. The maximum amount of work that an applicant will be permitted to have on contract with the State Department of Transportation and not completed at any one time shall be not more than 10 times the net worth as shown by the applicant’s latest financial statement. In the discretion of the State Department of Transportation, the certificate may contain a statement limiting such bidder to the submission of bids upon a certain class or classes of work. All applicants for qualifications shall expressly authorize the State Department of Transportation to obtain all the information which they may deem pertinent with respect to the financial worth and assets and liabilities of the applicant from banks or other financial institutions, surety companies, dealers in materials, equipment, or supplies, or other persons having business transactions with any applicant and shall expressly authorize all such financial institutions or other persons to furnish any such information requested from them by the State Department of Transportation. All information filed with, or furnished to, the State Department of Transportation by applicants or other persons in connection with the administration of this chapter shall be kept in confidence by the State Department of Transportation and shall not be revealed to any person except upon the proper subpoena or order of a court of competent jurisdiction. All applications shall be accompanied by satisfactory evidence that the applicant has complied with the workers’ compensation law and is not in default in the payment of any sum due from him under the provisions of such law. Where the applicant is a foreign corporation, the application shall be accompanied by a certificate of the Secretary of State that such corporation is authorized to do business in this state. The State Department of Transportation may require all qualified bidders to file financial statements from time to time, at such intervals as it may prescribe. This chapter shall be administered without reference to the residence of applicants, and its provisions and the rules and regulations of the State Department of Transportation, adopted pursuant thereto, shall apply equally to residents and nonresidents of the State of Alabama. This chapter shall not apply to the purchase of material, equipment, or supplies.

(e) Rules and regulations. For the purpose of carrying into effect the terms of this chapter and insuring to the state and public the award of all contracts to competent and responsible bidders, the State Department of Transportation shall be empowered to prepare and promulgate such rules and regulations, not inconsistent with the terms of this chapter, as it may deem proper. Such rules and regulations may cover the requirements of the State Department of Transportation with respect to equipment, past record and experience of applicant, personnel or organization, and such other matters as the State Department of Transportation may deem necessary to enable it to pass upon the qualifications of applicants. The State Department of Transportation may, in its discretion, make public from time to time a list of qualified bidders, but such list shall be general in character and shall not indicate the size of contract or character of work with respect to which such bidders have been qualified.

(f) Appeal from final action of awarding authority. All applicants for qualifications shall be promptly notified by the State Department of Transportation of its final action upon their applications. Any applicant aggrieved by the decision of the State Department of Transportation may, within 10 days after receiving notice of such decision, request in writing a reconsideration of his application by the State Department of Transportation and may submit additional evidence bearing upon his qualifications. The State Department of Transportation shall, thereupon, again consider the matter and may either adhere to or modify its previous decisions. The State Department of Transportation shall act upon any request for reconsideration within 15 days after the filing thereof and shall forthwith notify the applicant of the action taken. Upon being notified of the final action of the State Department of Transportation upon such reconsideration, the applicant who is still aggrieved by the decision of the State Department of Transportation may, within 10 days after receiving notification of such decision, take an appeal therefrom to the Circuit Court of Montgomery County, Alabama. Such appeal shall be perfected by the filing of a bond with the clerk of said court in such amount as the clerk may fix, conditioned upon the payment by the appellant of the cost of the appeal in case the decision of the State Department of Transportation shall be sustained. An issue shall be made up under the direction of the court between the applicant and the State Department of Transportation. The court shall hear the evidence offered by the appellant and the State Department of Transportation and decide the case without the intervention of a jury. If the court finds that there is no ground for the correction, modification, or reversal of the decision of the State Department of Transportation, it shall dismiss the appeal; otherwise, it shall make the order with respect to the qualification which it finds should have been made by the State Department of Transportation, which order shall be binding upon the State Department of Transportation. An appeal from such decision may be prosecuted to the Court of Civil Appeals or Supreme Court of Alabama in the same way and manner that appeals in civil cases are provided for by law and by the Alabama Rules of Appellate Procedure. Any applicant who has been refused qualification or who is dissatisfied with the State Department of Transportation’s decision as to the actual amount of work that he will be permitted to have under contract at any one time or any limitation as to the class or classes of work on which he is authorized to bid may, at any time, file a new application for qualification. Such new application shall be promptly considered and acted upon by the State Department of Transportation.

(g) Unqualified bidders. The State Department of Transportation shall not be authorized to consider any bid filed with it by any person who has not been qualified under the terms of this chapter. Bids from unqualified bidders discovered by the State Department of Transportation prior to the reading thereof to be from such person shall be returned without being read. If the State Department of Transportation finds, subsequent to the opening of the bids, that facts exist which would disqualify the lowest bidder or that such bidder is not competent and responsible, the State Department of Transportation shall reject such bid despite the fact of prior qualification of such bidder. It shall be unlawful to award any contract to any bidder not qualified to bid thereon at the time fixed for receiving bids.

(h) False representations as to financial position. It shall be unlawful for any applicant for qualification to knowingly make a false statement with respect to his financial worth in any application for qualification, financial statement, or other written instrument filed by him with the State Department of Transportation under the terms of this chapter, or the rules and regulations adopted pursuant thereto. Any person violating the provisions of this subsection shall, upon conviction, be fined not less than $100.00 nor more than $500.00, and shall be disqualified from submitting bids on contracts advertised for letting by the State Department of Transportation for a period of two years following the date of his conviction.

(i) Persons not qualified not to receive proposals. It shall be unlawful for the State Department of Transportation or any servant, agent, or employee or any other person to furnish or deliver any proposal relating to a highway, road, or bridge job to any person other than a duly qualified bidder or his authorized representative. The name of the proposed bidder shall be inserted in the face of the proposal, and such proposal shall not be transferable. No proposal shall be issued later than 24 hours before the hour set for the opening of bids. Any violation of the provisions of this subsection shall constitute a misdemeanor, and the person adjudged guilty shall be fined not more than $500.00 and imprisoned for not more than six months, one or both, at the discretion of the court.

(Code 1923, §1343; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §35; Acts 1959, No. 653, p. 1578, §2; Acts 1961, Ex. Sess., No. 213, p. 2208.)

§ 23-1-57 Agreements and Contracts with Adjoining States and Federal Government Relative to Bridges

The State Department of Transportation may enter into agreements and contracts with adjoining states and the federal government relative to the acquisition, construction, maintenance, and repair of bridges across any river or stream forming the boundary between this state and an adjoining state upon the following terms and conditions:

(1) Any bridge, the subject of such agreement or contract, shall be open to the public and no toll or other charge shall be levied for the privilege of crossing it.

(2) Any bridge, the subject of such agreement or contract, shall connect a highway in this state designated as a “state highway” or a “United States highway” with a highway in the adjoining state designated as a “state highway” or a “United States highway.”

(3) The agreement or contract may fix the amount the State of Alabama will pay, but the amount so agreed upon shall not be governed by the distance of the boundary from the bank of the stream, and the amount agreed upon shall be paid solely from funds made available to the State Department of Transportation for the construction of roads and bridges.

(4) Any contract made pursuant to this section shall also conform to all federal laws, rules, and regulations governing agreements or contracts between states relative to the acquisition, construction, maintenance, and repair of interstate bridges and shall contain such terms and stipulations as are requisite to securing the maximum amount of aid from the federal government, subject only to the limitations contained in this section.

(Code 1923, §1320; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §17; Acts 1949, No. 410, p. 582.)

§ 23-1-58 Interest of Employees, Etc., in Construction, Etc., of Roads and Bridges Prohibited

Neither the director nor any other person in the employ of the Department of Transportation shall be, either directly or indirectly, interested in any contract or agreement for the construction or maintenance of any road or bridge in this state or in the sale of any machinery, material, or anything whatever entering into the construction, repair, or maintenance of the roads and bridges of this state.

(Code 1923, §1321; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §18.)

§ 23-1-59 Rules and Regulations of Department

(a) The State Department of Transportation shall have the right and power to adopt all reasonable and necessary rules and regulations for the better construction, repair, and maintenance of the public roads and bridges in Alabama under the jurisdiction of the department which the department shall deem proper. The department shall have the power to enter into contracts and agreements with the owners or operators of telegraph or telephone lines, community antenna television systems, power transmission lines, gas districts, gas, water, sewer, or other pipelines which are constructed, to be constructed, or operated along or across the right-of-way of public roads, bridges, and highways of this state and to prescribe all reasonable rules and regulations as to the construction, repair, or maintenance of the poles, wires, and lines of such telegraph, telephone, community antenna television systems, or power companies, and pipelines of gas districts, gas, water, sewer, or other pipeline companies so as to insure the safety of the travelling public in using the roads, bridges, and highways in this state.

(b) The State Department of Transportation may prescribe any reasonable rules and regulations so as to prevent unnecessary trespassing upon or injury to any of the public roads, bridges, or highways of the state upon which state money may be expended or appropriated or upon any part of the right-of-way of any of the public roads or highways in the state upon which state money may be expended or appropriated.

(c) The State Department of Transportation may prescribe rules and regulations as to the weight or tonnage of vehicles to be used upon any of the public roads, bridges, or highways of the state upon which state money may be expended or appropriated, except as may be otherwise provided by law.

(d) The State Department of Transportation, in addition to the right, authority, and powers conferred upon it by this title, is authorized to make all such reasonable rules and regulations as the department may deem necessary to carry out the provisions of this title.

(Code 1923, §1319; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §§16, 35; Acts 1969, No. 419, p. 820; Acts 1969, No. 475, p. 931.)

§ 23-1-60 Authority of Director of Transportation to Alter Plans or Character of Work, Determine Need for Extra Work, Make Supplemental Agreements, Etc

The following implementation of the provisions of the State Department of Transportation standard specifications for highways and bridges is hereby adopted as a statutory provision, any and all other laws in conflict notwithstanding:

(1) ALTERATION OF PLANS OR CHARACTER OF WORK. The Director of Transportation shall have the authority to make, at any time during the progress of any construction on any highway project under his or her jurisdiction, such changes or alterations of construction details, including alterations in grade or alignment of roadway or bridges, or both, as may be necessary or desirable for the successful completion of the project. The aforementioned changes or alterations may or may not increase or decrease the original planned quantities; however, under no circumstances shall changes or alterations involve any work beyond the termini of the original construction project, except as may be necessary to satisfactorily complete the project in the most feasible and economical manner, in the judgment of the Director of Transportation.

(2) EXTRA WORK. The Director of Transportation shall have the authority to determine the need for new or additional work not contemplated or included in the original construction contract. This new or additional work shall not extend beyond the termini of the original construction project, except as may be necessary to satisfactorily complete the project in the most feasible and economical manner, in the judgment of the Director of Transportation.

(3) SUPPLEMENTAL AGREEMENT OR FORCE ACCOUNT ORDER.

a. The Director of Transportation shall have the authority to enter into a supplemental contract with the prime contractor, setting forth the estimated quantities of extra work and specifying the unit prices or lump sum agreed upon by the parties involved; provided, that such supplemental contract shall not be subject to any competitive bid laws of this state. If a satisfactory unit price or lump sum cannot be agreed upon, the Director of Transportation shall have the authority to direct that extra work be performed on a force account basis, as defined by the State Department of Transportation standard specifications for highways and bridges.

b. Notwithstanding any other provision of law to the contrary, any additional, new, or extra work, or work changes, alterations, or requirements, arising out of or relating to the original contract, may be authorized by the Director of Transportation without the approval of the Governor, provided that the increased amount does not exceed one hundred thousand dollars ($100,000) or 10 percent of the initial contract amount, whichever is greater, and the increased amounts in the aggregate do not exceed two hundred thousand dollars ($200,000). Any decrease or underrun of the contract may be authorized by the Director of Transportation without the approval of the Governor. The Department of Transportation shall develop procedures to implement this paragraph.

(Acts 1969, No. 228, p. 553; Act 2014-12, p. 42, §1.)

§ 23-1-61 State Highway Fund - Appropriations; Vehicle License Fees Deposited in Fund; Manner of Making Payments from Fund

There is hereby appropriated to the State Department of Transportation for its use the entire net revenue derived by the state from the sale of motor vehicle, trailer, and tractor licenses, and such other appropriations or funds received by the State Department of Transportation shall be expended and accounted for as provided in this article. Said State Highway Fund shall be paid out of the Treasury on the Comptroller’s warrant drawn upon presentation to him of the certificate of the department approved by the Governor.

(Code 1923, §1317; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §14.)

§ 23-1-62 State Highway Fund - Purposes for Which Used

(a) All proceeds arising from the sale of state highway bonds and the revenue appropriated to the State Department of Transportation, when received by the State Treasurer, shall be set aside in a special fund known as the State Highway Fund and be used for no other purpose than in the carrying out of the provisions of this chapter. The revenue derived by the state from the sale of motor vehicle, trailer, and tractor licenses and all other appropriations shall be used for the following purposes:

(1) To provide a sinking fund sufficient for the retirement of the said road bonds as they shall mature;

(2) For the expense of the State Department of Transportation and for the maintenance of roads and bridges constructed under the provisions of this chapter; and

(3) For the purchase of supplies and material, livestock, and machinery, and any balance for the construction of roads and bridges.

(b) Annually, at such times as it may deem most convenient or suitable, the State Department of Transportation shall, out of said revenues, set apart a sum sufficient for the providing of said sinking fund and for the further expenses of the State Department of Transportation and the maintenance of roads and bridges, and the sum so set apart shall be used for no other purposes whatever. The proceeds of the sale of state road bonds and the moneys appropriated by Congress under the act known as the Federal Aid Law shall be used exclusively for the purpose of constructing highways and bridges and the acquisition of bridges and of material.

(Code 1923, §1318; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §15.)

§ 23-1-63 Limitation of Obligations, Etc., Outstanding or Authorized on Inauguration Date of Incoming Governor

The Director of Transportation shall not, on the inauguration date of an incoming Governor, have outstanding obligations, encumbrances, or commitments or shall have authorized the obligating, encumbering, or committing of, except for debt service, any more than seven twenty-fourths of the total estimated revenue available to the State Department of Transportation for the first fiscal year of an incoming state administration.

(Acts 1951, No. 609, p. 1053.)

§ 23-1-64 Disposal of Surplus Personal Property - Department to Be Responsible for Disposal; Sale at Fair Market Value and Payment; Preferences; Notification by Municipalities and Counties

(a) Notwithstanding the provisions of Sections 41-16-120 to 41-16-125, inclusive, the State Department of Transportation shall be responsible for the distribution, transfer, or disposal of all surplus personal property owned by the department.

(b) The State Department of Transportation may promulgate the administrative rules and regulations as deemed necessary to carry out this section and Sections 23-1-65 and 23-1-66, including, but not limited to, rules and regulations relating to all of the following:

(1) Promotion of surplus personal property.

(2) Shipment of surplus personal property.

(3) Storage of surplus personal property.

(4) Length of retention of surplus personal property.

(5) Public auction of surplus personal property.

(6) Other rules and regulations as may be necessary.

(c) The State Department of Transportation may sell surplus personal property at fair market value, as established by the State Department of Transportation, and set out its published rules to incorporated cities, counties, volunteer fire departments, boards of education, civil defense agencies, and state departments, boards, bureaus, commissions, or agencies. Payment for purchases by any of the aforementioned entities shall be made within 30 days after the purchase. If payment is not made within 30 days after a purchase, then the purchase shall be declared void and in default, and the property shall be returned immediately by the defaulting purchaser to the State Department of Transportation.

(d) Notwithstanding the foregoing, the governing body of any municipality or county shall be given preference on the disposal of all surplus motor vehicles owned by the State Department of Transportation except those motor vehicles sold to other state agencies.

(e) Municipalities and counties shall notify the State Department of Transportation, in writing, of the type motor vehicle needed. A list shall be maintained by the State Department of Transportation of the needs on a first-come, first-served basis and shall be used to notify the municipalities or counties when needed vehicles become available. Any municipality or county so notified shall have seven work days in which to reply to the notice and accept or refuse the available vehicle.

(Acts 1995, No. 95-397, p. 813, §1.)

§ 23-1-65 Disposal of Surplus Personal Property - Availability; List of Surplus Property

(a) Surplus personal property shall be made available at such times and places as determined to be appropriate by the State Department of Transportation for inspection and acquisition by the agencies determined to be eligible for the acquisition under criteria developed and published by the State Department of Transportation.

(b) The State Department of Transportation shall periodically publish a list of all surplus personal property held by it at the time of the publication.

(c) The published list shall be made available to all state departments, boards, bureaus, commissions, institutions, corporations, or agencies.

(d) The published list shall also be made available to all eligible counties, cities, boards of education, civil defense agencies, and volunteer fire departments.

(e) The State Department of Transportation shall determine the manner in which the list of surplus personal property shall be published.

(Acts 1995, No. 95-397, p. 813, §2.)

§ 23-1-66 Disposal of Surplus Personal Property - Sale Procedures

(a) This section shall apply only to the property which has been held by the State Department of Transportation for a period of not less than 60 days from the date the property is first published in the list of surplus personal property, as set out in subsection (b) of Section 23-1-65 and not purchased by any agency as set out in subsection (c) of Section 23-1-64.

(b) All contracts made by, or on behalf of, the State Department of Transportation for the sale or disposal of tangible personal property owned by the State Department of Transportation, other than types of property, the disposal of which is otherwise provided for by law, or which, by nature, are incapable of sale by auction or bid, shall be let by free and open competitive public auction or sealed bids.

(c) Every proposal to make a sale covered by this section shall be advertised for at least two weeks in advance of the date fixed for receiving bids. The advertisement shall appear at least once a week for two consecutive weeks in a newspaper of general circulation in the county where the sale shall be consumated, and a copy of the proposal shall simultaneously be posted on a readily accessible public bulletin board at the main office of the State Department of Transportation. Advertisements for bids shall state the item or items to be sold, by class and description, where the property is located and the dates, time, and place the property may be inspected. The advertisements shall further state the date, time, and place of auction or opening of sealed bids, and no bid shall be received at any time after the time advertised. The bids shall be publicly taken or opened, in case of sealed bids, by the State Department of Transportation and all bidders shall be entitled to be present in person or by representative. The award of the contract shall be made to the successful bidder within 72 hours after taking of the bids. The bid of the successful bidder so marked, as well as the bids of the unsuccessful bidders, in the case of sealed bids, shall be placed on file open to public inspection and shall become matters of public record. If a successful bidder shall fail to accept award of a contract, then he or she shall be prohibited from bidding at any sale held by the State Department of Transportation for a period of 12 months following the failure to accept.

(d) The State Department of Transportation may sell all items by lot or by individual item, whichever method, in the opinion of the Director of Transportation, would bring the highest return for the items so advertised. In the event all bids received are less than the estimated market value of the property, the State Department of Transportation shall reject all bids and readvertise and rebid.

(e) Nothing in this section or Sections 23-1-64 and 23-1-65 shall be construed to prevent the State Department of Transportation from contracting with the highest bidder for any type of property to sell to that bidder all of that type of property at his or her bid price during the same fiscal year if such an arrangement was included in the initial request for bids.

(f) All property advertised under this section shall be available for inspection at a location designated in the advertisement during the normal state office hours for at least 48 hours prior to the sale.

(g) All property sold under this section shall be paid for by the purchaser or his or her representative by cashier’s check, bank draft, certified check, United States currency, or notarized bank letter stating that the holder may purchase surplus personal property and also stating a maximum amount, at the time of acceptance of bid and award of contract, and the removal shall be not later than seven days after the awarding of the contract, except that the time limit of seven days shall not be applicable to sales of standing timber.

(h) All proceeds from sales made under this section shall be paid into the State Treasury to the credit of the State Department of Transportation.

(i) No officer or employee of the State of Alabama or any of its departments, boards, bureaus, commissions, institutions, corporations, or agencies shall act as agent for any bidder. Notwithstanding the foregoing, the officers or employees shall not be excluded from bidding on or purchasing state property at public sale or sealed bid.

(Acts 1995, No. 95-397, p. 813, §3.)

Article 3 Public Roads, Bridges and Ferries

§ 23-1-80 County Commissions - Powers and Duties Generally

The county commissions of the several counties of this state have general superintendence of the public roads, bridges, and ferries within their respective counties so as to render travel over the same as safe and convenient as practicable. To this end, they have legislative and executive powers, except as limited in this chapter. They may establish, promulgate, and enforce rules and regulations, make and enter into such contracts as may be necessary or as may be deemed necessary or advisable by such commissions to build, construct, make, improve and maintain a good system of public roads, bridges, and ferries in their respective counties, and regulate the use thereof; but no contract for the construction or repair of any public roads, bridge, or bridges shall be made where the payment of the contract price for such work shall extend over a period of more than 20 years.

(Code 1923, §1347; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §43; Acts 1953, No. 729, p. 984.)

§ 23-1-80.1 County Commissions - Use of County Roads in Conducting Timber Operations

(a) A county commission, by ordinance or resolution, may require all persons or firms that own timber in any unincorporated area of the county which plan to utilize county roads for delivery of pulpwood, logs, poles, posts, or wood chips to any wood yard or processing plant to provide notice of their intent to utilize the county roads to the county commission. For purposes of this section, the term timber owner means any person or firm that has entered into a contract with a landowner for the purposes of severing that timber and delivering pulpwood, logs, poles, posts, or wood chips to any wood yard or processing plant. In the case where the landowner harvests his or her own timber and delivers pulpwood, logs, poles, posts, or wood chips to any wood yard or processing plant, the landowner is the timber owner. The term timber owner is intended to mean the person or firm who has legal title to the timber when it enters the county road.

(b) Any ordinance or resolution adopted pursuant to this section shall require prior written notice by any person or firm owning timber for each separate tract prior to utilizing the county roads as follows:

(1) If a new access point is required for the tract, the timber owner is required to provide the county four business days’ notice.

(2) If an existing access point is to be utilized for the tract, the timber owner is required to provide the county two business days’ notice.

(c) For purposes of this section, an existing access point shall be defined as either a location which has previously been approved, permitted, or grandfathered through the county’s driveway or access management policy and has been previously used to access the tract; or, in the event the county does not have a driveway or access management policy, if the location has been previously used to access the tract. In the event the county has a driveway or access management policy and an access point has not been previously approved or permitted, and the access point has been previously used to access the tract, there is a presumption that the access point shall be considered an existing access point for the purposes of this subsection. Nothing in this section shall require a county to adopt a driveway or access management policy if it does not already have one.

(d) The notice shall be in the form as prescribed by the county commission and shall consist of only the following:

(1) A map or legal description of the area which identifies the location of the tract and the access point or points to the tract from a county road.

(2) With respect to the access point or points to the tract, whether the access point or points are a new or existing point or points, including details outlining how this access will be accomplished while maintaining the normal drainage features on the public road.

(3) The expected routes upon county roads related to the operations.

(4) The estimated acreage of the tract.

(5) The estimated date that access to the county roads will commence.

(6) The name, address, and daytime telephone number of the person or firm that owns the timber and the contractor responsible for harvesting the timber, if not the same. If the contractor responsible for harvesting the timber is not known at the time of notice submission, the person giving notice shall provide this information prior to accessing the county roads.

(7) The name and address for the liability insurance carrier of the person providing the notice and the contractor responsible for harvesting the timber, if not the same. If the contractor responsible for harvesting the timber is not known at the time of notice submission, the person giving notice shall provide the information prior to accessing the county roads.

(e) The notice shall be submitted to the regular office of the county commission and may be submitted in person, by transmission of an electronic record via telefacsimile or electronic mail, by regular mail, or by other means as approved by the county commission.

(f) The notice shall be effective for a period of 12 months. Upon request from the timber owner, the county may extend the notice for an additional six-month period.

(g) The county’s receipt of the notice to access the county roads shall not constitute an act on behalf of the county which shall result in the county commission, the county engineer, or any employees of the county commission being held liable in any matter arising from the actions or inactions of the timber owner, of his or her representatives, employees, or contractors.

(h) The notice requirements in this section shall be applicable to any use of county roads by a timber owner, his or her representatives or employees, or a contractor responsible for harvesting the timber in furtherance of its operations on or after the effective date of the ordinance or resolution adopted pursuant to this section.

(i) Any person owning timber that utilizes the county roads and fails to provide notice or fails to comply with the terms of the notice shall be provided a warning and an opportunity to comply with this section. Upon receipt of the warning and the failure to comply with this section, the person owning the timber may be fined five hundred dollars ($500) for each day a violation continues to take place. All fines collected shall be payable to the county and deposited into the county’s road and bridge fund. Additionally, the county shall have the right to enjoin the timber owner, his or her representatives or employees, or a contractor responsible for harvesting the timber from utilizing county roads by a civil action for the injunction brought in a court of competent jurisdiction in the county.

(j) This section may be enforced by the county license inspector under Section 40-12-10, including issuing citations as provided in subsection (j) of Section 40-12-10 for failure to comply with the notice requirements or with the terms of the notice.

(k) In the event that a citation has been issued for noncompliance with this section or with the terms and conditions of the notice, no subsequent notice application shall be effective until the time all fines and penalties have been collected. Additionally, if any timber owner, his or her representatives or employees, or a contractor responsible for harvesting the timber has been cited on three separate occasions within a 24-month period, the county may require the timber owner, his or her representatives or employees, or a contractor responsible for harvesting the timber to post security as a condition of using the county roads.

(l) Compliance with notice provisions by persons or firms affected shall not operate to relieve such persons or firms from liability for damages which may arise from their use of public roads, bridges, or rights-of-way in the county.

(m) In the event the Governor declares a state of emergency as a result of an event that causes damage to timber within a county, the notification requirements set forth herein are suspended for that county for the period of time consistent with the Governor’s proclamation.

(n) This section shall not apply to any utility that is maintaining or establishing clearances from timber or vegetation for its facilities and equipment nor shall it apply to the employees, contractors, agents, or representatives of such a utility where the employees, contractors, agents, or representatives are acting within the course and scope of their employment, contract, or agency.

(o) Except as otherwise provided by this section, a county may not require any timber owner that plans to utilize county roads for delivery of pulpwood, logs, poles, posts, or wood chips to any wood yard or processing plant to provide any other notice of the activity, acquire any other specific permit or license for such purpose, or post any security as a condition of using the county roads. Any existing county rules, ordinances, or resolutions in conflict with this section are hereby repealed to the extent of such conflict. Nothing in this section shall repeal or amend any laws related to the county’s general superintendence of the roads and bridges within its jurisdiction, including its driveway or access management policy, or its authority to regulate and supervise the use of its rights-of-way or roads and bridges. Additionally, the county’s acceptance of the notice from the timber owner as provided herein and the other provisions of this section shall in no way limit or affect the county’s authority to regulate and enforce any laws governing the use of or damage to a county-maintained road or bridge or a county right-of-way.

(Act 2012-257, p. 494, §§1, 2.)

§ 23-1-81 County Commissions - Authority to Establish, Operate, Etc., Bridges, Ferries, Causeways, Etc.; Licensing

(a) The county commission of each county is invested with authority to purchase or establish toll bridges, free bridges, causeways, and ferries or free ferries within their respective jurisdictions as provided in this article and may levy a special tax to purchase or build the bridges and causeways when, in the opinion of the county commission, the public good requires it.

(b) The county commission of each county may also license any individual, group of individuals, partnership, corporation, association, or any other legal entity to establish or to operate toll roads, toll bridges, ferries, or causeways and authorize the licensee to establish and fix the rates of toll. Toll roads and toll bridges that are licensed by a county and which are on or over the line between any two counties shall be licensed by both counties.

(c) The State Department of Transportation may license any individual, groups of individuals, partnership, corporation, association, or any other legal entity to establish or operate toll roads, toll bridges, ferries, or causeways and authorize the licensee to establish and fix the rates of toll.

(d) After a license is issued pursuant to subsection (b) or (c) by a county commission or the State Department of Transportation, no further license of any type from any governmental body or agency, including, but not limited to, a business license, shall be required to construct, own, or operate the toll road or the toll bridge, ferry, or causeway and no further license, tax, or fee may be imposed by any governmental body or agency.

(e) No toll bridge shall be established over the same watercourse within two miles of any other toll bridge.

(f) Nothing contained in this section shall be deemed to limit the authority of the Department of Conservation and Natural Resources to grant easements and licenses with respect to the placement of bridges on state land.

(Code 1852, §1189; Code 1867, §1381; Code 1876, §1678; Code 1886, §1442; Code 1896, §2498; Code 1907, §3023; Code 1923, §6442; Code 1940, T. 23, §45; Acts 1996, 1st Ex. Sess., No. 96-30, p. 40, §1; Act 2000-216, p. 324, §1.)

§ 23-1-82 County Commissions - Eminent Domain

The county commissions of the several counties of the state are given the right of eminent domain for the purpose of establishing and changing public roads, bridges, and ferries in their respective counties, except in cases where the State Department of Transportation has jurisdiction over such highways. When an appeal is taken from any assessment in a condemnation proceeding brought by a county, such appeal shall not deprive the county obtaining the judgment of condemnation of a right of entry for any and all purposes named in the condemnation proceeding provided the amount of damages assessed shall have been paid into court in money and a bond shall have been given in not less than double the amount of damages assessed, with good and sufficient sureties, to be approved by the clerk of the court to which the appeal is taken, conditioned to pay such damages as the owner of the property may sustain. Said amount of damages may be paid into court and said bond in double the amount of such damages, with good and sufficient sureties, may be given at the time of taking the appeal or at any time thereafter that the applicant may desire the right of entry pending the appeal; provided, however, that in condemnation proceedings in which any county having a population of 400,000 inhabitants or more, according to the last or any subsequent federal census, is a party and where an appeal is taken, such county shall have the immediate right of entry pending said appeal as if a good and sufficient right of entry bond had been filed.

(Code 1907, §§5773-5776; Code 1923, §1352; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §44; Acts 1953, No. 595, p. 847.)

§ 23-1-83 Transfer of General Fund Surplus to Road Fund by County

The county commission of any county in this state may transfer to the road fund of the county any surplus of the general funds of the county in the county treasury or any part of such surplus whenever, in the judgment of such commission, it will promote the interest of the county to make such transfer. Any surplus of the general fund so transferred shall be used only for the working of the public roads or the building of bridges or otherwise improving the roads of such counties.

(Code 1907, §5766; Code 1923, §1351; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §47.)

§ 23-1-84 Authority of County to Expend Funds Derived from Fees, Etc., Levied on Vehicles and Fuels

(a) The several counties of the state are hereby authorized to expend the funds derived from fees, excises, or license taxes levied by the state relating to the registration, operation, or use of motor vehicles upon the public highways, and also the money derived from any fees, excises, or license taxes levied by the state relating to fuels used for propelling such vehicles, for the cost of constructing, reconstructing, maintaining, and repairing of public roads and bridges.

(b) It is the intention of the Legislature by the passage of this section to implement the provisions of Amendment 93 to the Constitution of Alabama 1901.

(c) The provisions of this section are retroactive.

(Acts 1959, 1st Ex. Sess., No. 50, p. 95.)

§ 23-1-85 Construction of Electric Transmission, Telegraph, or Telephone Lines in Right-of-Way of County Highways

The right-of-way is granted to any person or corporation having the right to construct electric transmission, telegraph, or telephone lines within this state to construct them along the margin of the right-of-way of public highways, subject to the removal or change by the county commission of the county, except in cases where the State Department of Transportation has jurisdiction over such highway.

(Code 1907, §5817; Code 1923, §1357; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §48.)

§ 23-1-86 Establishment, Etc., Within Municipalities

The county commission of any county, with the consent or permission of the city council or governing body of any municipality, may establish, construct, and maintain any road, street, or bridge within the corporate limits of such municipality except in cases where the State Department of Transportation has jurisdiction over such road, street, or bridge.

(Code 1923, §1367; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §49.)

§ 23-1-87 Expense of Building County Line Bridges, Ferries, or Causeways

Whenever a bridge, ferry, or causeway is necessary on the line between two counties, the same must be built at the joint expense of such counties, in proportion to the amount of taxable property in each. When the cost of building any county line bridges is so great that it cannot be paid by the counties which such stream divides, which fact may be determined by the county commission of either county, such counties, or either of them, may make such contracts and incur such debt as may be necessary, within constitutional limits, to procure for the use of such counties, or either of them, or the inhabitants thereof, the free use of a thoroughfare for vehicles and foot passengers over or across any bridge that may be built by any person, firm, or corporation over any stream forming the dividing line between such counties; and to pay any debt that may be thereby incurred, any county may issue its bonds when such issue is authorized by vote as required by law. A county line bridge or ferry, in the meaning of this section, shall be construed to be a bridge or ferry across a stream or slough between two counties whether the actual dividing line between said counties runs on either bank or in the center of said stream or slough. If a toll bridge, ferry, or causeway is in operation on any such line, the same may be purchased by either county alone or at the joint expense of the counties connected thereby, in proportion to the taxable property in each.

(Code 1852, §1190; Code 1867, §1382; Code 1876, §1679; Code 1886, §1443; Code 1896, §2499; Code 1907, §3025; Acts 1915, No. 677, p. 736; Code 1923, §6444; Code 1940, T. 23, §50.)

§ 23-1-88 Facilities Between Adjoining Counties - Authority of Counties to Build, Establish, Etc

Adjoining counties may purchase, establish, build, maintain, and operate bridges and ferries or public highways across streams, swamps, waters, or marshes which form the boundary between two counties upon such terms as may be agreed upon by the county commissions of the adjoining counties.

(Acts 1920, No. 98, p. 146; Code 1923, §6461; Code 1940, T. 23, §51.)

§ 23-1-89 Facilities Between Adjoining Counties - Extension of Aid by Other Counties

The county commission of any county in the state that will be benefited by the establishment of such means of communication as are set forth in Section 23-1-88 may also extend aid in the purchase, establishment, construction, and maintenance of such means of communication, although no part of such bridges, highways, or ferries may be located in such county. The county commission of any county is made the sole judge as to whether the county would be benefited by the bridge, ferry, or other improvement as is provided for in this article.

(Acts 1920, No. 98, p. 146; Code 1923, §6462; Code 1940, T. 23, §52.)

§ 23-1-90 Extension of Aid by Municipalities

The governing authority of any municipality that would be benefited by the purchase, establishment, construction, or maintenance of the bridges, causeways, highways, or ferries, or combination of same, mentioned in this article may extend aid to the establishment, construction, or maintenance of the same.

(Acts 1920, No. 98, p. 146; Code 1923, §6463; Code 1940, T. 23, §53.)

§ 23-1-91 Aid for Development of Access Roads or Bridges to Certain Facilities by Contiguous Counties or Municipalities

The county commission of any county or governing body of any municipality in this state is hereby authorized, upon the adoption by a majority vote of a resolution duly recorded in its minutes, to aid and participate in the development of any access roads or bridges to any project undertaken by any public athletic or recreational board for the promotion of athletics, recreation, race tracks, and related facilities in any other contiguous county or in aid of the development in any other contiguous county or any industrial site or access roads and bridges of any project undertaken pursuant to the provisions of Sections 11-54-80 through 11-54-101 or pursuant to Sections 11-54-20 through 11-54-32. In any county, including the county in which said project is located, the county commission may appropriate county funds or authorize the use of equipment and employees of the county to aid in the promotion of any project which comes within the purview of this section, and any municipal governing body may likewise appropriate municipal funds or authorize the use of equipment and employees of the municipality to aid in the promotion of any such project.

(Acts 1967, Ex. Sess., No. 120, p. 173.)

§ 23-1-92 Advertisement for Contract Bids - Requirement

No contract where the estimated cost of the work will exceed $250.00 shall be made except after advertisement for 30 days in some newspaper published in the county, describing the character of the work to be done and the time and place of letting, and then only to the lowest reasonable and responsible bidder for such work, who shall enter into bond in double the amount of such bid, conditioned for the proper performance of such contract according to the plans and specifications and within the time prescribed by the order of the county commission of such work, which bond shall be approved by the judge of probate of said county. Where the estimated cost of the work exceeds $2,500.00, advertisement as above must also be made in a daily paper published in this state of at least 5,000 daily circulation once a week for 30 days. The county commission shall have the right to reject any or all bids.

(Code 1923, §1361; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §54.)

§ 23-1-93 Advertisement for Contract Bids - Exceptions

In the event of the destruction of a bridge, or damage thereto, rendering the same impassable, or in any other emergency, the county commission may contract for the repair or rebuilding of such bridge without advertisement if the public good requires it, except in cases where the State Department of Transportation has jurisdiction over such bridges.

(Code 1923, §1362; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §55.)

§ 23-1-94 Construction of Article Not to Conflict with Local or Special Laws

Nothing in this article shall be construed to authorize the county commissions of the several counties to establish, promulgate, or enforce any rules, regulations, or laws which may be in conflict with a local or special law providing for the working, maintenance, change, discontinuance, or improvement of the public roads, bridges, or ferries of such county now in force or which may hereafter be enacted, except in cases where the State Department of Transportation has jurisdiction over such highways.

(Code 1923, §1348; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §64.)

§ 23-1-95 Violation of Rules, Etc., Enacted by County Commissions

No person shall violate any rule, regulation, or law which may be adopted or promulgated by the county commission of any county under the authority conferred by this article relating to the use, control, care, operation, or maintenance of any such public road, bridge, or ferry, except in cases where the State Department of Transportation has jurisdiction over such highways.

(Code 1923, §1349; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §61.)

Article 3A Roads and Bridges in Captive Counties

§ 23-1-100 “Captive County” Defined

Unless different meanings are expressly specified in subsequent provisions of this article the term “captive county” means a county where the State Department of Transportation by local law or general law with local application is responsible for the construction, repair, and maintenance of the roads and bridges of the respective county.

(Acts 1979, No. 79-688, p. 1217, §1.)

§ 23-1-101 Powers and Duties of County Commissions of Captive Counties as to Construction, Repair, and Maintenance of County Roads and Bridges Generally

The county commission of each of the captive counties shall be solely responsible for the construction, repair, and maintenance of the county roads and bridges in its respective county in accordance with the laws of the State of Alabama. Each county governing body shall have all the powers and jurisdiction with respect to county roads and bridges which are or which hereafter may be vested in or required of county governing bodies by the general laws of this state, or vested in or required of the governing body of each of the captive counties by local law and, except as may be otherwise provided herein, members of the county governing bodies of the captive counties shall perform all the duties and services and shall exercise all the powers and authority with respect to construction, repair, or maintenance of county roads and bridges which are or hereafter may be provided by law for members of county governing bodies.

(Acts 1979, No. 79-688, p. 1217, §2.)

§ 23-1-102 Transfer to Counties of Unexpended Funds Maintained by State Department of Transportation; Payment to Counties of Tax Proceeds, Federal Aid Accruals, Etc

Any unexpended moneys remaining in the fund required by law to be maintained by the State Department of Transportation for use in the construction, repair, and maintenance of county roads and bridges in each of the captive counties shall be paid over to the respective governing body of each of the captive counties except as otherwise provided by this article. Thereafter, all funds and moneys designated by law for use in the construction, repair, and maintenance of county roads and bridges in each of the captive counties and to which each of said counties may be entitled, whether from the proceeds of the state gasoline tax, the motor vehicle tax, or other state tax, federal aid accruals, or from any other source whatsoever shall be paid to the county governing body of the respective captive county by the appropriate county or state official.

(Acts 1979, No. 79-688, p. 1217, §3.)

§ 23-1-103 Transfer to Counties by State Department of Transportation of Facilities and Properties for Construction, Repair, and Maintenance of Roads; Resolution of Disputes as to Transfers

The State Department of Transportation shall transfer and turn over to the governing body of each of the captive counties adequate facilities and properties to build, maintain, and repair roads in said county from equipment presently being used by the State Department of Transportation in carrying out the functions and duties in relation to roads and bridges in each of said captive counties respective and/or from surplus equipment returned to the state from other counties also, but not limited to road equipment, machinery, and supplies of like kind, amount, nature, and present value as of 1979 to the respective road equipment, machinery, and supplies which each of the captive counties was required to transfer and turn over to the State Department of Transportation in accordance with the legislation enacted prior to the adoption of this article, which legislation required the State Department of Transportation to construct, repair, and maintain roads and bridges in each of the captive counties.

Any dispute which may arise as a result of this section shall be resolved by the majority of the members of a committee consisting of the Director of Transportation or his agent, the chairman of the county governing body of the respective county or his agent, and one member from the legislative delegation of the respective county to be selected by the legislative delegation.

(Acts 1979, No. 79-688, p. 1217, §4.)

§ 23-1-104 Furnishing of Counties with Lists of Persons Employed by State Department of Transportation Therein; Employment by Counties of Persons on Lists; Employment Status of Other Persons Employed by Department in Counties; Liability for Accumulated Obligations Due and Payable to Present Employees of Department; Payment by Department of Accumulated Sick Leave of Transferred Employee

The State Department of Transportation shall furnish a list to each captive county with the name, position, rate of pay, and length of service of all persons who are presently employed by the State Department of Transportation in the respective captive county. The respective counties may employ personnel not to exceed 75 percent of the employees on the list furnished by the State Department of Transportation for the construction, repair, and maintenance of county roads and bridges in accordance with personnel policy as adopted by the respective counties. The remaining employees now employed by the State Department of Transportation in each said county shall remain an employee of the State Department of Transportation subject to the regular employment practices of said department. All persons employed by each respective county shall be paid at the same rate of pay as was paid by the State Department of Transportation. All present and accumulated obligations due and payable to the present employees as a result of their employment with the State Department of Transportation shall be the obligation of the State of Alabama, including, but not limited to, accumulated sick leave, vacation time, and retirement and any other accumulated benefits earned by the said employees. Payment shall be made to the employees on or before the effective date of this article. Provided, however, that the State Department of Transportation shall pay to the respective county governing body an amount equal to 100 percent of the value of the accumulated sick leave for the account of each employee who transfers to the captive county. Such funds shall be held in trust for the employee and shall be used to pay such employee for approved sick leave. In lieu of the funds being held in trust for future approved sick leave, the employee may elect to accept an amount equal to 50 percent of the value of the then accumulated sick leave in full settlement and payment of his accrued sick leave account. Approved sick leave shall be that leave so designated by any county merit system to which the employee may transfer, or such leave as approved by the county governing body, or the county engineer at the direction of the county governing body.

(Acts 1979, No. 79-688, p. 1217, §5; Acts 1980, No. 80-724, p. 1466.)

§ 23-1-105 Effect of Article Upon Contracts for Construction, Repair and Maintenance of County Roads and Bridges Entered into by State Department of Transportation

Any contract for the construction, repair, and maintenance of county roads and bridges in each of the captive counties entered into by the State Department of Transportation prior to the adoption of this article shall remain in full force and effect until the terms thereof shall have been complied with.

(Acts 1979, No. 79-688, p. 1217, §6.)

§ 23-1-106 Effect of Article Upon Outstanding Financial Obligations Incurred by Counties; Disposition of Funds Received by State from Counties for Road and Bridge Work Therein

All outstanding financial obligations which were incurred prior to the adoption of this article for the construction, repair, or maintenance of county roads and bridges in each of the captive counties shall, upon adoption of this article, become outstanding financial obligations of the respective captive county and shall be retired or paid in accordance with the terms under which such indebtedness was incurred.

All funds, including escrow funds, received by the state from the respective captive counties to be used for road and bridge work in the respective counties, after payment of current obligations of said counties, respectively, shall be returned to each of said counties, respectively.

(Acts 1979, No. 79-688, p. 1217, §7.)

§ 23-1-107 Effective Date

This article after its passage and approval by the Governor, or upon its otherwise becoming state law shall become effective October 1, 1979, or October 1, 1980, at the discretion of the individual county commissions.

(Acts 1979, No. 79-688, p. 1217, §10.)

Article 4 Municipal Connecting Link Roads

§ 23-1-110 Purpose of Article

It is hereby declared by the Legislature of Alabama that city and town streets and roads or portions thereof, including viaducts and bridges, which constitute the route of connection between or extension of state roads in the Alabama state highway system, hereby designated as municipal connecting link roads, have in the past, do now, and will in the future serve a state purpose and are for the general benefit of the state; and that it is a proper and legitimate function of the state to designate such municipal connecting link roads and to provide for the cost and manner and extent of maintenance, repair, construction, and reconstruction of the same by the state independently or in cooperation with the city or town involved.

(Acts 1949, No. 284, p. 408, §1.)

§ 23-1-111 Designation

The State Department of Transportation, hereinafter referred to as the department, shall, as early as practicable after July 26, 1949, designate such streets or roads, including viaducts and bridges, as are municipal connecting link roads in each city or town of this state under the then existing state highway system and, thereafter, shall designate such municipal connecting link roads for additional state roads in the state highway system at the time such roads are opened for travel. Such designation shall also be made promptly of any street or road in any city or town not constituting a part or portion of the state highway system wherever necessary to care for arterial or main highway traffic, and the provisions of this article shall apply to such streets or roads so designated. The department shall keep a record of such municipal connecting link roads so designated and shall promptly, after designation in each case, furnish to the city or town involved a statement of the municipal connecting link roads so designated therein.

(Acts 1949, No. 284, p. 408, §2.)

§ 23-1-112 Maintenance and Repair - Responsibility

The department is hereby authorized, empowered, directed, and required to maintain and repair, under its control and supervision, such designated municipal connecting link roads, to make appropriations and expenditures out of its funds for such program and is authorized to enter into any and all contracts, inclusive of agreements with cities and towns, and with any federal agency of the United States of America authorized to do so, for such purpose; provided, that nothing contained in this section shall require the department to sweep, sprinkle, or light said municipal link roads.

(Acts 1949, No. 284, p. 408, §3.)

§ 23-1-113 Maintenance and Repair - Stipulations and Conditions

The following stipulations and conditions shall obtain as to state maintenance of municipal connecting link roads:

(1) State maintenance of a city or town street traversed by a state maintained highway route shall not extend beyond the back of the curb where a curb and gutter section exists and not beyond the back or roadway ditch or the toe of fill slope where no curb and gutter is in place except as necessary in the placing and maintaining of highway markers, etc.

(2) The city or town shall prepare a drawing, from which prints can be made, showing width of right-of-way of street traversed by a highway route maintained by the state and it shall indicate thereon the width of right-of-way on intersecting streets for a distance of 200 feet each way from the center of the highway.

(3) City or town to perform routine clean-up operations such as removal of leaves, trash, soil from gutters, soil from drop inlets and catch basins, etc., and shall be responsible for the trimming and maintenance of all trees and shrubbery within the right-of-way of the street or that affects traffic using the highway.

(4) The state will place and maintain center stripes and lane stripes. The city or town will mark parking spaces, bus stop areas, and other markings outside the travel lanes.

(5) The city or town will be responsible for all drainage that enters the city’s or town’s storm sewer system, including all catch basins, sand traps, drop inlets, and such. The state shall perform normal routine maintenance on roadway drainage structures not a part of the city or town storm sewer system, but the state shall assume no responsibility for a general drainage problem. In the correction of a drainage problem where the roadway structure is affected, the state will assume its fair share of the cost of any correction of opening needed in the roadway structure.

(6) Traffic control on a city or town street maintained in part by the state shall be under the joint control of the city and the state.

(7) The establishing of speed zones and the placing of traffic lights shall be subject to joint approval of the city or town and the state officials. After city or town and state representatives have decided on the speed to apply and the extent of speed zones, they shall be set out in city or town ordinances and the state will furnish, erect, and maintain speed zone markers. After city or town and state representatives have agreed on the need for a traffic light and the type of light has been agreed on, the city will furnish, erect, and maintain the light. The time interval of the light shall favor traffic along the highway route or traffic along the intersecting city or town street according to relative volume and importance, and when necessary or desirable, the point shall be settled by the taking of a traffic count. Should the city or town or the state question the need for an existing or proposed speed zone or traffic light, the question shall be settled in conference as provided.

(8) The city or town shall have authority to make any repairs to city or town facilities underground or overhead without asking permission of the state, but they shall notify the state immediately should that work affect the free flow of traffic. The city or town shall repair, in a manner satisfactory to the state, any pavement disturbed in any work they do. Any addition to city or town facilities, where the work of installation and maintenance would affect that part of the city street maintained by the state, shall be planned after conference with state officials, and the details of the plans shall be worked out in that conference. Any work that affects that part of a city street maintained by the state and to be performed by other than city forces shall be done only after a permit has been issued by the state. Such permits shall be subject to approval by the city or town.

(9) No permit shall be issued by the city or town or the state for any advertising sign to be suspended over the street and highway. The city or town shall have the right to permit the placing of any sign or marker, with or without written permit, so long as the sign does not interfere with highway markers or other traffic-control devices and provided they do not overhang the curb, in a curb and gutter section, or the shoulder line of the roadway where no curb and gutter exists. The only exceptions shall be signs to be erected by the city or town or civic organizations, with the approval of the city or town, that are temporary in nature and are intended to give information to the general public. In such cases, a formal permit, approved by both the state and the city, shall be issued for erection by other than city or town forces or forces employed by the city or town, and those signs shall not interfere with traffic or confuse or obscure traffic-control devices or markings.

(10) Where maintenance operations require it or make it desirable, the city or town police will provide protection for state forces and equipment and will cooperate in the handling of traffic should it be necessary to close all or part of the highway route.

(11) The state shall have no responsibility for the maintenance of “truck routes” where such routes are separate from regularly established highway routes.

(Acts 1949, No. 284, p. 408, §4.)

Article 5 Private Roads

§ 23-1-130 Establishment

Private roads may be established by the county commission on the application of any person, such roads not to exceed 15 feet in width and to be opened and kept in repair by the person on whose application they are established without exemption on public roads.

(Code 1907, §5841; Code 1923, §1370; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §65.)

§ 23-1-131 Proceedings; Limitations as to Location; Damages

In establishing a private road, the same rules must be observed and the same proceedings had as in the case of public roads; but no road must be opened through any person’s yard, garden, orchard, garage, stable, lot, ginhouse, or curtilage without his consent, and the applicant must pay the owner of the land over which such road passes all damages resulting thereto from the establishment of such road, to be assessed as in case of public roads.

(Code 1907, §§5842, 5843; Code 1923, §1371; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §66.)

Article 6 Alabama Highway Authority

§ 23-1-150 Purpose and Construction of Article

It is the intention of the Legislature by the passage of this article to authorize the incorporation of the Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer and the Executive Secretary to the Governor of Alabama for the purpose of constructing public roads and bridges, together with work incidental and related thereto, through a corporation to be composed of said officials whose incorporation is hereby authorized, to vest such corporation with all powers, authorities, rights, privileges and titles that may be necessary to enable it to accomplish such purpose and to appropriate and pledge funds for the use of such corporation. This article shall be liberally construed in conformity with the said purpose.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §1.)

§ 23-1-151 Incorporation - Authorization

The Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer and the Executive Secretary to the Governor may become a corporation, with the powers and authorities provided in this article, by proceeding according to the provisions of this article.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §2.)

§ 23-1-152 Incorporation - Application

To become a corporation, the Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer and the Executive Secretary to the Governor shall present to the Secretary of State of Alabama an application signed by them which will set forth:

(1) The name, official designation and official residence of each of the applicants, together with a certified copy of the commission evidencing each applicant’s right to office;

(2) The date on which each applicant was inducted into office and the term of office of each of the applicants;

(3) The name of the proposed corporation, which shall be Alabama Highway Authority;

(4) The location of the principal office of the proposed corporation; and

(5) Any other matter relating to the incorporation which the applicants may choose to insert and which is not inconsistent with this article or the laws of the State of Alabama.

The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the State of Alabama to take acknowledgments to deeds. The Secretary of State shall examine the application, and if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §3.)

§ 23-1-153 Incorporation - Certificate

When the application has been made, filed and recorded as provided in Section 23-1-152, the applicants shall constitute a corporation under the name proposed in the application and the Secretary of State shall make and issue to the applicants a certificate of incorporation, pursuant to this article, under the Great Seal of the State and shall record the same with the application. There shall be no fees paid to the Secretary of State for any work in connection with the incorporation or dissolution of the corporation so organized, which, for convenience, is referred to in this article as “the corporation.”

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §4.)

§ 23-1-154 Members, Officers and Directors; Quorum; Vacancies; Compensation; Record of Proceedings

The Governor shall be the president of the corporation, the Director of Finance shall be the vice-president of the corporation, the Director of Transportation shall be the secretary of the corporation, and the State Treasurer shall be the treasurer of the corporation and shall act as custodian of its funds. The Governor, the Director of Transportation, the Director of Finance, the State Treasurer, and the Attorney General shall constitute all the members of the board of directors of the corporation, and any three members of the board of directors shall constitute a quorum for the transaction of business. Should any of the officials of the state die or should his or her term of office as Governor, Director of Finance, Director of Transportation, Attorney General, or State Treasurer, as the case may be, expire, or should he or she resign therefrom, his or her successor in office shall take his or her place as a member, officer, and director of the corporation. No member, officer, or director of the corporation shall draw any salary, in addition to that now authorized by law, for any service he or she may render or any duty he or she may perform in connection with the corporation. All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the corporation. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §5; Act 2015-212, §1.)

§ 23-1-155 Powers

The corporation shall have all of the following powers:

(1) To have perpetual succession by its corporate name unless sooner dissolved pursuant to Section 23-1-160.

(2) To maintain actions and have actions maintained against it and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties.

(3) To have and to use a corporate seal and to alter the same at pleasure.

(4) To construct, reconstruct, and relocate, or to cause to be constructed, reconstructed, and relocated, public roads, bridges, and approaches thereto, tunnels, and other public roadway improvements, including work incidental or related thereto, in the State of Alabama.

(5) To acquire by purchase, gift or condemnation or any other lawful means and to convey, or cause to be conveyed, any real, personal, or mixed property or materials necessary or convenient in connection with the construction, reconstruction, or relocation of public roads, bridges and approaches thereto, tunnels and other public roadway improvements in the State of Alabama.

(6) To exercise the right of eminent domain as freely and completely as, and in the same manner that, the State of Alabama is empowered to exercise such right.

(7) To borrow money for its corporate purposes and, in evidence of such borrowing, to sell and issue its bonds and to refund any thereof by the issuance of refunding bonds (any such bonds, including refunding bonds, being collectively referred to in this article as “bonds”).

(8) To receive and accept aid, grants, funds, gifts, donations, contributions, and appropriations from any source, whether governmental or nongovernmental, of either money, revenues, appropriations, real or personal property, labor, or other things of value, and to pledge such amounts as security for payment of the principal of and the interest on bonds of the corporation.

(9) To appoint and employ such officers, attorneys and agents as the business of the corporation may require.

(10) To make and enter into contracts and agreements necessary for, or incidental to, the performance of its duties and the execution of its powers under this article, including contracts and agreements for professional services deemed necessary for such purposes by the corporation. In addition to and in conjunction with other authority to enter into contracts as may be provided by law, the corporation may enter into contracts, agreements, or understandings with, but not limited to, individuals, corporations, partnerships, limited liability companies, or other private parties; public or private partnerships, or both, or other similar joint ventures; or the federal government, any department, agency, governmental or quasi-governmental body, public corporation, instrumentality, or subdivision of the United States, the State of Alabama, or any other state of the United States, or any agency, governmental or quasi-governmental body, instrumentality, or subdivision thereof for the construction, reconstruction, or relocation of any public road, bridge and approaches thereto, tunnel, other public roadway improvements, and work incidental or related thereto in the State of Alabama.

(11) To make and enter into any agreement or agreements with any municipality, county, or public corporation in the state described in subsection (k) of Section 23-1-157.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §6; Acts 1963, 1st Ex. Sess., No. 25, p. 90; Acts 1967, No. 226, p. 595; Acts 1969, No. 785, p. 1414, §1; Act 2015-212, §1.)

§ 23-1-156 Contracts; Conveyance of Property to State

All contracts of the corporation for the construction, reconstruction and relocation of public roads, bridges and approaches thereto, tunnels, other public roadway improvements, and work incidental or related thereto and the acquisition of property necessary therefor, shall be in writing, shall be subject to the rules and regulations and shall be let under the supervision of the Department of Transportation and shall be subject to approval by the Governor and by the State Department of Transportation. All work provided for in any contract shall be supervised by the Department of Transportation or as otherwise provided through agreement with the Department of Transportation. All persons engaged in the supervision or performance of any such work of construction, reconstruction, or relocation that may be done by the corporation without the award of a contract therefor shall be employees of the Department of Transportation or as otherwise provided through agreement with the Department of Transportation. The corporation shall make and enforce all reasonable rules and regulations not inconsistent with the terms of this article or the laws of the State of Alabama as may in its opinion be proper and suitable for the protection of roads, bridges and approaches thereto, tunnels, and other public roadway improvements and appurtenances and for the safety of the traveling public. Any property acquired by the corporation by purchase, condemnation or otherwise shall be forthwith conveyed to the State of Alabama or as otherwise provided through agreement with the department.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §8; Acts 2015-212, §1.)

§ 23-1-157 Bonds - Generally

(a) The bonds of the corporation shall be signed by its president or vice president and attested by its secretary; provided, that a facsimile of the signature of the officers may be imprinted or otherwise reproduced on any such bonds in lieu of his or her signing the same. The seal of the corporation shall be affixed to such bonds; provided, that a facsimile of the seal may be imprinted or otherwise reproduced on any such bonds in lieu of being manually affixed thereon.

(b) Any bonds of the corporation may be executed and delivered at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest payable and evidenced in such manner, may contain provisions for redemption prior to maturity and may contain other provisions not inconsistent with this article, all as may be provided by the resolution of the board of directors whereunder such bonds are authorized to be issued; provided, that no bond of the corporation shall have a specified maturity date later than 30 years after its date.

(c) Bonds of the corporation may be sold from time to time as the board of directors may deem advantageous without limit as to principal amount.

Bonds of the corporation may be sold at public or private sale. If at public sale, the bonds may be sold only to the bidder whose bid reflects the lowest net interest cost to the corporation for the bonds being sold, computed to their respective maturities, in such a manner and at such price or prices and at such time or times as may be determined by the board of directors to be most advantageous; provided, that if no bid acceptable to the corporation is received, it may reject all bids. The board of directors may fix the terms and conditions under which each such sale may be held; provided, that such terms and conditions shall not conflict with any of the requirements of this article.

(d) Subject to the provisions and limitations contained in this article, the corporation may, from time to time, sell and issue refunding bonds for the purpose of refunding any matured or unmatured bonds of the corporation issued under this article and then outstanding.

(e) Approval by the Governor of Alabama of the terms and conditions under which any bonds of the corporation may be issued shall be requisite to their validity.

(f) The corporation may pay out of the proceeds from the sale of its bonds all expenses, including fees of fiscal agents and attorneys, the fees of financial advisors, and other charges, which the board of directors may deem necessary and advantageous in connection with the issuance of such bonds. Bonds issued by the corporation under this article shall not be general obligations of the corporation, but shall be payable solely out of the funds appropriated and pledged therefor, out of funds received by the corporation under any agreement or agreements with one or more municipalities, counties, or public corporations in the state, or out of such other funds or revenues as the corporation is permitted to use for such purpose.

(g) As security for the payment of the principal of and interest on any bonds issued by it under this article the corporation is hereby authorized and empowered to pledge for payment of the principal and interest the funds that are appropriated and pledged for payment of the principal and interest, and any amounts received by the corporation under any agreement or agreements with one or more municipalities, counties, or public corporations in the state. All such pledges made by the corporation shall take precedence in the order specified in the resolutions containing such pledges. All contracts made and all bonds issued by the corporation pursuant to the provisions of this article shall be solely and exclusively obligations of the corporation and shall not be an obligation or debt of the State of Alabama. Bonds issued by the corporation under this article shall be construed to be negotiable instruments although payable solely from a specified source as provided in this article.

(h) All bonds issued by the corporation and the income therefrom shall be exempt from all taxation in the State of Alabama. Any bonds issued by the corporation may be used by the holder thereof as security for any funds belonging to the state or to any instrumentality or agency of the state in any instance where security for such deposits may be required by law.

(i) Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in bonds of the corporation.

(j) Neither a public hearing nor consent by the state Department of Finance or any other department or agency shall be a prerequisite to the issuance of bonds of the corporation.

(k) Each municipality, county, and public corporation in the state may enter an agreement or agreements with the corporation to provide security for payment of principal of and interest on those bonds issued by the corporation and described in the agreement or agreements as the same shall respectively come due, and under which agreement or agreements the municipality, county, or public corporation may undertake the obligation to pay amounts to the corporation sufficient to provide for payment of such principal and interest, and agree to pledge for payment of such amounts those sources of revenue or funds of the municipality, county, or public corporation that may be lawfully pledged thereby for such purpose.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §7; Acts 1959, 1st Ex. Sess., No. 44, p. 82, §1; Act 2015-212, §1.)

§ 23-1-158 Bonds - Disposition of Proceeds

(a) The proceeds of all bonds, other than refunding bonds, issued by the corporation, remaining after paying the expenses of their issuance, shall be turned in to the Treasury or shall be deposited into such account or accounts as specified in the resolution of the board of directors whereunder such bonds are authorized to be issued, and shall be subject to be drawn on upon the approval of the Department of Transportation solely for the purpose of constructing, reconstructing, and relocating public roads, bridges and approaches thereto, tunnels, other public roadway improvements, or work incidental or related thereto, in the State of Alabama, including the acquisition of property necessary for such construction, reconstruction, and relocation and incidental and related work. If action is necessary in order to comply with any federal legislation relating to federal aid in construction of roads, the corporation may authorize the Department of Transportation to expend directly any portion of such proceeds for constructing, reconstructing and relocating such roads, bridges and approaches thereto, tunnels, other public roadway improvements, or work incidental or related thereto. The proceeds from the sale of any refunding bonds of the corporation remaining after paying the expenses of their issuance shall be used only for the purpose of refunding the principal of outstanding bonds of the corporation and of paying any premium that may be necessary to be paid in order to redeem or retire the bonds to be refunded.

(b) Proceeds from the sale of any bonds may be invested in permitted investments pending their disposition. As used in this subsection, permitted investments shall mean:

(1) Any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency to the extent such obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in such obligations of, or unconditionally guaranteed by, the United States of America or in specified portions thereof (which may consist of the principal thereof or the interest thereon).

(2) Bonds, debentures, notes, or other evidences of indebtedness issued by any of the following agencies: Bank for Cooperatives; Federal Intermediate Credit Banks; Federal Financing Bank; Federal Home Loan Banks; Federal Farm Credit Bank; Export-Import Bank of the United States; Federal Land Banks; or Farmers Home Administration or any other agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States as an agency or instrumentality thereof.

(3) Bonds, notes, pass through securities, or other evidences of indebtedness of Government National Mortgage Association and participation certificates of Federal Home Loan Mortgage Corporation.

(4) Full faith and credit obligations of any state, provided that at the time of purchase such obligations are rated at least “AA” by Standard and Poor’s Ratings Group and at least “Aa” by Moody’s Investors Service.

(5) Public housing bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by contracts with the United States of America, or temporary notes, preliminary notes, or project notes issued by public agencies or municipalities, in each case fully secured as to the payment to both principal and interest by a requisition or payment agreement with the United States of America.

(6) Time deposits evidenced by certificates of deposit issued by banks or savings and loan associations which are members of the Federal Deposit Insurance Corporation, provided that, to the extent such time deposits are not covered by federal deposit insurance, such time deposits (including interest thereon) are fully secured by a pledge of obligations described in subdivisions (1), (2), (3), and (5), which at all times have a market value not less than the amount of such bank time deposits required to be so secured and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard and Poor’s Ratings Group for structured financings.

(7) Repurchase agreements for obligations of the type specified in subdivisions (1), (2), (3), and (5), provided such repurchase agreements are fully collateralized and secured by such obligations which have a market value at least equal to the purchase price of such repurchase agreements which are held by a depository satisfactory to the State Treasurer in such manner as may be required to provide a perfected security interest in such obligations, and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard and Poor’s Ratings Group for structured financings.

(8) Uncollateralized investment agreements with, or certificates of deposit issued by, banks or bank holding companies, the senior long-term securities of which are rated at least “AA” by Standard and Poor’s Ratings Group and at least “Aa” by Moody’s Investors Service.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §8; Act 2015-212, §1.)

§ 23-1-159 Bonds - Payments by State Treasurer

Out of the revenues appropriated and pledged for such purpose, the State Treasurer is authorized and directed to pay the principal of and interest on the bonds issued by the corporation under the provisions of this article, as such principal and interest shall respectively mature, and he is further authorized and directed to set up and maintain appropriate records pertaining thereto.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §10.)

§ 23-1-160 Dissolution

At any time when no securities of any kind of the corporation, whether issued under this article or under authorization contained in any other statutes, are outstanding, the corporation may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the members of the corporation and which shall be sworn to by each such member before an officer authorized to take acknowledgments to deeds. Upon the filing of said application for dissolution, the corporation shall cease and any property owned by it at the time of its dissolution shall pass to the State of Alabama. The Secretary of State shall file and record the application for dissolution, in an appropriate book of record in his office, and shall make and issue, under the Great Seal of the State, a certificate that the corporation is dissolved and shall record the said certificate with the application for dissolution.

(Acts 1955, 1st Ex. Sess., No. 43, p. 66, §11; Acts 1969, No. 785, p. 1414, §2.)

Article 7 Alabama Highway Finance Corporation

§ 23-1-170 Purpose and Construction of Article

It is the intention of the Legislature by the passage of this article to authorize the incorporation of a public corporation for the following purposes:

(1) To issue bonds to assure the availability of funds for payment of the state’s share of the cost of constructing roads and bridges as shall from time to time be constructed with funds supplied jointly by the state and federal government; and

(2) To construct and maintain, or participate in the construction and maintenance, or lend its aid in construction and maintenance or contract for construction and maintenance of roads and bridges in the State of Alabama, as well as the approaches thereto, including the reconstruction and relocating of approaches, causeways and like or other highway facilities which may, from time to time, be constructed and maintained with funds to be supplied jointly by the state and federal government, together with work incidental and related thereto, through a corporation to be composed of said officials whose incorporation is hereby authorized to vest such corporation with all powers, authorities, rights, privileges and titles that may be necessary to enable it to accomplish such purpose, and to appropriate and pledge funds for the use of such corporation.

All construction and maintenance referred to in this section shall be done under the direction and supervision of the State Department of Transportation. The State Department of Transportation may assign, contract or delegate the work of construction and maintenance under its general powers, subject to approval by the Governor. This article shall be liberally construed in conformity with the said purposes.

(Acts 1965, No. 228, p. 327, §1.)

§ 23-1-171 Incorporation - Authorization

The Director of Transportation, the Attorney General and the Director of Finance may become a corporation, with the powers and authorities provided in this article, by proceeding according to the provisions of this article.

(Acts 1965, No. 228, p. 327, §2.)

§ 23-1-172 Incorporation - Application

To become a corporation, the Director of Transportation, the Attorney General and the Director of Finance shall present to the Secretary of State of Alabama an application signed by them which shall set forth:

(1) The name, official designation and official residence of each of the applicants, together with a certified copy of the commission evidencing each applicant’s right to office;

(2) The date on which each applicant was inducted into office and the term of office of each of the applicants;

(3) The name of the proposed corporation, which shall be Alabama Highway Finance Corporation;

(4) The location of the principal office of the proposed corporation, which shall be Montgomery, Alabama; and

(5) Any other matter relating to the incorporation which the applicants may choose to insert and which is not inconsistent with this article or the laws of the State of Alabama.

The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the State of Alabama to take acknowledgments to deeds. The Secretary of State shall examine the application, and if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.

(Acts 1965, No. 228, p. 327, §3.)

§ 23-1-173 Incorporation - Certificate

When the application has been made, filed and recorded, as provided in Section 23-1-172, the applicants shall constitute a public corporation under the name proposed in the application and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this article, under the Great Seal of the State, and shall record the same with the application. There shall be no fees paid to the Secretary of State for any work in connection with the incorporation or dissolution of the corporation so organized, which, for convenience, is referred to in this article as “the corporation.”

(Acts 1965, No. 228, p. 327, §4.)

§ 23-1-174 Composition; Vacancies; Compensation; Records

The members of the corporation shall consist of the Governor, the Director of Transportation, the Attorney General, and the Director of Finance and their respective successors in office. The Governor shall be the president of the corporation, the Director of Finance shall be its vice-president, the Director of Transportation shall be the secretary of the corporation, and the State Treasurer shall be the treasurer of the corporation and shall act as custodian of its funds. The members of the corporation shall constitute all the members of the board of directors of the corporation, and any three members of the board of directors shall constitute a quorum for the transaction of business. Should any of the officials of the state die or should his or her term of office as Governor, Director of Transportation, Attorney General, or Director of Finance, as the case may be, expire or should he or she resign therefrom, the successor in office shall take the place as a member, officer, and director of the corporation. No member, officer, or director of the corporation shall draw any salary, in addition to that now authorized by law, for any service he or she may render or any duty he or she may perform in connection with the corporation. All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the corporation and recorded in a substantially bound book. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.

(Acts 1965, No. 228, p. 327, §5; Act 2013-80, p. 172, §1.)

§ 23-1-175 Powers

The corporation shall have the following powers:

(1) To have succession by its corporate name without time limit;

(2) To maintain actions and have actions maintained against it and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties;

(3) To have and to use a corporate seal and to alter the same at pleasure;

(4) To construct, reconstruct and relocate, or to cause to be constructed, reconstructed and relocated, public roads and bridges, including work incidental or related thereto in the State of Alabama;

(5) To receive, take and hold by sale, gift, lease, devise or otherwise real and personal estate of every description and to manage the same;

(6) To acquire by purchase, gift or the exercise of the power of eminent domain or any other lawful means and to convey, or cause to be conveyed, to the State of Alabama any real, personal or mixed property necessary or convenient in connection with the construction of public roads and bridges and approaches thereto in the State of Alabama or the reconstruction or relocation of public roads and bridges in said state;

(7) To exercise the right of eminent domain as freely and completely as, and in the same manner that, the State of Alabama is empowered to exercise such right;

(8) To borrow money and issue its bonds in evidence thereof subject to the provisions of Section 23-1-177;

(9) As security for payment of the principal of and the interest on its bonds, to pledge the proceeds of the appropriations and pledges provided for in this article;

(10) To appoint and employ such attorneys as the business of the corporation may require;

(11) To receive from the several counties of the State of Alabama interest-bearing warrants of such counties secured by a pledge of the proceeds of gasoline tax appropriated from time to time to the counties by the state, or any part or percentage thereof, or any other fund or security in payment of, or to secure the payment of the county’s portion of the cost of any roads or bridges built in such county and to sell such county warrants, or borrow money on the security thereof; provided, that any funds received from the sale of the warrants of any county or the proceeds of any loan made on the security of the warrants of any county shall be expended in such county;

(12) To enter into contracts with counties, the State Department of Transportation of Alabama or other agency performing any of the functions thereof, road district authorities, persons, firms or corporations, federal Emergency Administrator of Public Works and any other branch of the federal government in furtherance of its public purposes and objects either relative to the work done or to be done; and

(13) To turn over to the State Department of Transportation any and all funds of the corporation as from time to time may be necessary or proper for the most economical construction of such roads and to comply with all federal or other legislation relating to federal aid roads or other federal moneys.

(Acts 1965, No. 228, p. 327, §6.)

§ 23-1-175.1 Infrastructure Improvements

(a) In order to accomplish infrastructure improvements contemplated for the benefit of the Alabama State Docks, the Alabama Highway Finance Corporation shall have the following powers, in addition to all powers set forth in this article.

(1) To borrow money and issue its bonds in evidence thereof, in a principal amount not to exceed one hundred fifty million dollars ($150,000,000), for the purpose of financing the widening and deepening of the Mobile Ship Channel and improvements related thereto. No bond issued by the corporation for this purpose shall have a specified maturity date later than twenty years after its issuance date.

(2) To issue from time to time one or more series of refunding bonds for the purpose of refunding any bonds issued pursuant to subdivision (1) or bonds previously issued to refund such bonds, in any case, however, having a final maturity that is not later than the final maturity of the bonds being refunded.

(3) As security for payment of the principal of and the interest on its bonds issued pursuant to this section, to pledge the proceeds of appropriations made for that purpose.

(4) To enter into contracts with the Alabama State Port Authority, the State Department of Transportation or other agency performing any of the functions thereof, the United States Corps of Engineers, and any other branch of the federal government in furtherance of its public purposes and objects either relative to the work done or to be done. Except as expressly set forth above, all bonds issued pursuant to this section shall be governed by and issued in accordance with Section 23-1-177.

(b) The proceeds of all bonds, other than refunding bonds, issued by the corporation pursuant to this section remaining after paying the expenses of their issuance shall be applied to the state’s share of the cost of the widening and deepening of the Mobile Ship Channel, either directly or by assignment to the Alabama State Port Authority for such purpose. The proceeds from the sale of any refunding bonds of the corporation remaining after paying the expenses of their issuance shall be used only for the purpose of refunding the principal of outstanding bonds of the corporation and of paying any premium that may be necessary to be paid in order to redeem or retire the bonds to be refunded. Proceeds from the sale of any bonds may be invested pending their disposition in investments pursuant to subsection (b) of Section 23-1-178.

(c) Out of the revenues appropriated and pledged for such purpose, the State Treasurer is authorized and directed to pay the principal of and interest on the bonds issued by the corporation under this section, as such principal and interest shall respectively mature, and is further authorized and directed to set up and maintain appropriate records pertaining thereto.

(d) As used herein, the term “Mobile Ship Channel” shall mean the existing ship channel having its northern terminus 7,000 feet north of the mouth of the Mobile harbor, and its southern terminus approximately 6 nautical miles south of Fort Morgan, comprising approximately 31 nautical miles in length.

(Act 2019-3, 1st Sp. Sess., §1.)

§ 23-1-176 Contracts; Conveyance of Property to State

All contracts of the corporation for the construction, reconstruction and relocation of roads and bridges, and work incidental or related thereto and the acquisition of property necessary therefor, shall be in writing, shall be subject to the rules and regulations and shall be let under the supervision of the State Department of Transportation and shall be subject to approval by the Governor and by the State Department of Transportation. All work provided for in any such contract shall be supervised by the State Department of Transportation. All persons engaged in the supervision or performance of any such work of construction, reconstruction or relocation that may be done by the corporation without the award of a contract therefor shall be employees of the State Department of Transportation. Any property acquired by the corporation by purchase, condemnation or otherwise shall be forthwith conveyed to the State of Alabama. All roads and bridges constructed by the corporation shall constitute part of the public highway system in the state.

(Acts 1965, No. 228, p. 327, §8.)

§ 23-1-177 Bonds - Generally

(a) The bonds of the corporation shall be signed by its president and attested by its secretary, and the seal of the corporation shall be affixed thereto or printed or otherwise reproduced thereon; provided, that a facsimile of the signature of one, but not both, of the officers may be printed or otherwise reproduced on any such bonds in lieu of his or her signing the same.

(b) Any bonds of the corporation may be executed and delivered by it at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest payable and evidenced in such manner, may contain provisions for redemption prior to maturity, and may contain such other provisions not inconsistent with this article, all as may be provided by the resolution of the board of directors under which such bonds are authorized to be issued; provided, that no bond of the corporation shall have a specified maturity date later than 30 years after its date.

(c) Bonds of the corporation may be sold from time to time as the board of directors may deem advantageous and without regard to principal amount; provided, that at no time shall the aggregate principal amount of bonds of the corporation, including without limitation refunding bonds, be outstanding in excess of twenty-five million dollars ($25,000,000). The principal amount of bonds for which provision for payment has been made with proceeds of refunding bonds or with other funds provided for such purpose, including anticipated investment earnings thereon, shall not be deemed outstanding for purposes hereof. No bonds, other than refunding bonds, may be sold or issued by the corporation unless the Governor shall have first determined that the issuance of the bonds proposed to be issued will be necessary to assure the availability of funds for payment of the state’s share of the cost of roads and bridges, or the share of the same to otherwise be paid by counties or municipalities within the state for local roadway or bridge and related improvement projects through a program titled the Rural Assistance Match Program that shall from time to time be constructed with funds supplied jointly by the state and the federal government.

(d) Bonds of the corporation may be sold at private sale or public sale, but if at public sale, only to the bidder whose bid reflects the lowest net interest cost to the corporation for the bonds being sold, computed to their relative maturities, in such manner and at such price or prices and at such time or times as may be determined by the board of directors to be most advantageous.

(e) Subject to the provisions and limitations contained in this article, the corporation may from time to time sell and issue refunding bonds in aggregate principal amounts that may exceed the principal amount of bonds being refunded for the purpose of refunding any matured or unmatured bonds of the corporation. Approval by the Governor of Alabama of the terms and conditions under which any refunding bonds of the corporation may be issued shall be requisite to their validity. Such approval shall be entered on the minutes of the meetings of the board of directors at which the refunding bonds are authorized and shall be signed by the Governor.

(f) The corporation may pay out of the proceeds from the sale of its bonds all expenses, including fees of attorneys, the fees of financial advisors, and other charges, which the board of directors may deem necessary and advantageous in connection with the issuance of such bonds. Bonds issued by the corporation shall not be general obligations of the corporation but shall be payable solely out of the funds appropriated and pledged therefor by act of the Legislature or out of such fund or revenue as are herein permitted to be pledged and used for such purposes. As security for the payment of the principal of, and interest on, any bonds issued by it, the corporation is hereby authorized and empowered to pledge for payment of such principal and interest the funds that are appropriated and pledged by act of the Legislature for payment of the principal and interest, or such funds or revenues as are herein permitted to be used for payment of the principal and interest.

(g) All contracts made and all bonds issued by the corporation pursuant to the provisions of this article shall be solely and exclusively obligations of the corporation and shall not be an obligation or debt of any kind of the State of Alabama. Bonds issued by the corporation when not registered shall be construed to be negotiable instruments although payable solely from a specified source as provided in this article. All bonds issued by the corporation and the income therefrom shall be exempt from all taxation in the State of Alabama. Any bonds issued by the corporation may be used by the holder thereof as security for any funds belonging to the state or to any instrumentality or agency of the state in any instance where security for such deposits may be required by law.

(h) Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust and other fiduciary funds in bonds of the corporation.

(i) Neither a public hearing nor consent by the state Department of Finance or any other department or agency shall be a prerequisite to the issuance of bonds by the corporation. All obligations issued by the corporation shall be exempt from the laws of the state governing usury or prescribing or limiting interest rates including but without limitation to the provisions of Chapter 8 of Title 8, as it now exists and as it may at any time be amended.

(Acts 1965, No. 228, p. 327, §7; Acts 1978, No. 580, p. 652, §1; Acts 1981, No. 81-379, p. 561; Act 2013-80, p. 172, §1.)

§ 23-1-178 Bonds - Disposition of Proceeds

(a) The proceeds of all bonds, other than refunding bonds, issued by the corporation remaining after paying the expenses of their issuance shall be deposited in the State Treasury and credited to the Road and Bridge Fund, and shall be subject to be drawn on by the corporation, upon the approval of the State Department of Transportation, but solely for the purpose of constructing, reconstructing , or relocating public roads and bridges, or work incidental or related thereto, including the acquisition of property necessary therefor, in the State of Alabama; provided, that such funds may be used only for payment of the state’s share or the costs thereof to be paid by any county or municipality within the state, of the cost of constructing, reconstructing, or relocating public roads and bridges, or work incidental or related thereto, which have been or will be constructed, reconstructed, or relocated under programs financed jointly by the state and the federal government; and provided further, that if such action shall be necessary in order to comply with any federal legislation relating to federal aid in construction of roads, the corporation may authorize the State Department of Transportation to expend directly any portion of such proceeds for constructing, reconstructing , or relocating such roads and bridges, or work incidental or related thereto. The proceeds from the sale of any refunding bonds of the corporation remaining after paying the expenses of their issuance shall be used only for the purpose of refunding the principal of outstanding bonds of the corporation and of paying any premium that may be necessary to be paid in order to redeem or retire the bonds to be refunded.

(b) Proceeds from the sale of any bonds may be invested in permitted investments pending their disposition. Permitted investment as used in this section shall mean: (i) any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency to the extent such obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in such obligations of, or unconditionally guaranteed by, the United States of America or in specified portions thereof, which may consist of the principal thereof or the interest thereon; (ii) bonds, debentures, notes, or other evidences of indebtedness issued by any of the following agencies: Bank for Cooperatives; Federal Intermediate Credit Banks; Federal Financing Bank; Federal Home Loan Banks; Federal Farm Credit Bank; Export-Import Bank of the United States; Federal Land Banks; or Farmers Home Administration or any other agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States as an agency or instrumentality thereof; (iii) bonds, notes, pass through securities, or other evidences of indebtedness of Government National Mortgage Association and participation certificates of Federal Home Loan Mortgage Corporation; (iv) the full faith and credit obligations of any state, provided that at the time of purchase such obligations are rated at least “AA” by Standard & Poor’s Ratings Group, “Aa” by Moody’s Investors Service, or “AA” by Fitch IBCA, Inc.; (v) public housing bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by contracts with the United States of America, or temporary notes, preliminary notes or project notes issued by public agencies or municipalities, in each case fully secured as to the payment to both principal and interest by a requisition or payment agreement with the United States of America; (vi) time deposits evidenced by certificates of deposit issued by banks or savings and loan associations which are members of the Federal Deposit Insurance Corporation, provided that, to the extent such time deposits are not covered by federal deposit insurance, such time deposits, including interest thereon, are fully secured by a pledge of obligations described in clauses (i), (ii), (iii), and (v) above, which at all times have a market value not less than the amount of such bank time deposits required to be so secured and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard & Poor’s Ratings Group for structured financings; (vii) repurchase agreements for obligations of the type specified in clauses (i), (ii), (iii), and (v) above, provided such repurchase agreements are fully collateralized and secured by such obligations which have a market value at least equal to the purchase price of such repurchase agreements which are held by a depository satisfactory to the State Treasurer in such manner as may be required to provide a perfected security interest in such obligations, and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard & Poor’s Ratings Group for structured financings; and (viii) uncollateralized investment agreements with, or certificates of deposit issued by, banks or bank holding companies, the senior long-term securities of which are rated at least “AA” by Standard & Poor’s Ratings Group and at least “Aa” by Moody’s Investors Service.

(Acts 1965, No. 228, p. 327, §8; Act 2013-80, p. 172, §1.)

§ 23-1-179 Bonds - Payments by State Treasurer

Out of the revenues appropriated and pledged for such purpose, the State Treasurer is authorized and directed to pay the principal of and interest on the bonds issued by the corporation under the provisions of this article, as such principal and interest shall respectively mature, and he is further authorized and directed to set up and maintain appropriate records pertaining thereto.

(Acts 1965, No. 228, p. 327, §10.)

§ 23-1-180 Dissolution

At any time when no bonds of the corporation are outstanding, the corporation may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the members of the corporation and which shall be sworn to by each such member before an officer authorized to take acknowledgments to deeds. Upon the filing of said application for dissolution, the corporation shall cease and any property owned by it at the time of its dissolution shall pass to the State of Alabama. The Secretary of State shall file and record the application for dissolution, in an appropriate book of record in his office, and shall make and issue, under the Great Seal of the State, a certificate that the corporation is dissolved and shall record the said certificate with the application for dissolution.

(Acts 1965, No. 228, p. 327, §1.)

§ 23-1-181 Appropriations and Pledges of Revenue for Payment of Principal and Interest on Bonds; Sinking Fund

(a) Where used in this section the following words and terms shall be given the following respective meanings:

(1) BONDS. Such term, without qualifying words or phrases, means bonds of the corporation issued under this article.

(2) CODE. The Code of Alabama, 1975.

(3) CORPORATION. Alabama Highway Finance Corporation, a public corporation and instrumentality of the State of Alabama that was organized and is existing under this article.

(4) GASOLINE TAX APPROPRIATION STATUTE. Section 40-17-359.

(5) HIGHWAY GASOLINE TAX.

a. The excise tax levied in subdivision (1) of subsection (a) of Section 40-17-325, exclusive of those portions of the tax in respect of aviation fuel and marine gasoline, as those terms are used in the section; and

b. The excise tax levied by Article 3 of Chapter 17 of Title 40, exclusive of that portion of the tax in respect of diesel fuel.

(6) NET GASOLINE TAX PROCEEDS. The entire proceeds from the highway gasoline tax less the cost of collection and less any refunds of the proceeds pursuant to the provisions of Chapter 17 of Title 40.

(7) STATE’S SHARE OF THE NET GASOLINE TAX PROCEEDS. The 45 percentum of the net gasoline tax proceeds allocated and appropriated for state highway purposes in subsection (c) of Section 40-17-359.

(b) For the purpose of providing funds to enable the corporation to pay at their respective maturities the principal of and interest on any bonds that may be issued by it under the provisions of this article and to accomplish the purposes and objects of its creation, there hereby is irrevocably pledged to the purpose and appropriated so much as may be necessary for the purpose of the following, subject, however, to the provisions, hereinafter set forth in this subsection, as to the rank of the pledges herein made:

(1) So much as may be necessary for such purpose of those portions of the motor vehicle license taxes and registration fees that are provided to be distributed to the state pursuant to the provisions of Division 1 of Article 5 of Chapter 12 of Title 40 as amended, remaining after the costs of collection thereof.

(2) To such extent and to such extent only as the revenues appropriated under subdivision (1) of this subsection may not be sufficient to pay at their respective maturities the principal of and interest on the bonds, so much as may be necessary for such purpose, when added to the amounts appropriated in subdivision (1) of this subsection, of the state’s share of the net gasoline tax proceeds.

(3) To such extent and to such extent only as the revenues appropriated under subdivisions (1) and (2) of this subsection may not be sufficient to pay at their respective maturities the principal of and interest on the bonds, so much as may be necessary for such purpose, when added to the amounts appropriated in subdivisions (1) and (2) of this subsection, of the entire proceeds of the following excise taxes remaining after payment of the costs of collection thereof:

a. the excise tax levied by subdivision (2) of subsection (a) of Section 40-17-325 on distributors and storers of motor fuel, as therein defined; and

b. the excise tax levied by Article 3 of Chapter 17 of Title 40, exclusive of that portion of the tax in respect of gasoline.

The term “costs of collection,” as used in this subdivision, shall mean that portion of the excise taxes referred to in this subdivision that may be appropriated by the Legislature to the Department of Revenue for its operating expenses.

(4) To such extent and to such extent only as the revenues appropriated under subdivisions (1), (2) and (3) of this subsection may not be sufficient to pay at their respective maturities the principal of and interest on the bonds, so much as may be necessary for such purpose, when added to the amounts appropriated in subdivisions (1), (2) and (3), of all that portion of the receipts from the inspection fee on certain petroleum products imposed by Division 1 of Article 5 of Chapter 17 of Title 8 that is required by the division to be deposited to the credit of the Public Road and Bridge Fund.

(5) To such extent and to such extent only as the revenues appropriated under subdivisions (1), (2), (3) and (4) of this subsection may not be sufficient to pay at their respective maturities the principal of and interest on the bonds, so much as may be necessary for such purpose, when added to the amounts appropriated in subdivisions (1), (2), (3) and (4), of the receipts from the fee in respect of identification markers on motor vehicles that is provided for in Section 40-17-150.

(c) All moneys hereby appropriated and pledged shall constitute a sinking fund for the purpose of paying the principal of and interest on the bonds. All pledges made by the corporation shall take precedence among themselves in the order of the adoption of the resolutions making such pledges, except as may be otherwise provided in such resolutions; provided; provided, however, that the appropriation and pledge of the state’s share of the net gasoline tax proceeds shall be on parity with the pledge contained in Section 23-1-314 to secure obligations issued by the Alabama Federal Aid Highway Finance Authority.

(Acts 1978, No. 580, p. 652, §2; Act 2013-80, p. 172, §1; Act 2014-105, p. 169, §1; Act 2014-346, p. 1289, §1.)

§ 23-1-182 Diversity Requirement

All persons and entities awarded a contract or employed pursuant to Sections 23-1-174, 23-1-177, 23-1-178, and 23-1-181 shall be inclusive and reflect the geographic, gender, racial, and ethnic diversity of the state.

(Act 2013-80, p. 172, §2.)

Article 8A Relocation Assistance

§ 23-1-210 Authorization to Provide Relocation Assistance

When any department, agency, or instrumentality of the state, or any county, municipality, or other political subdivision, or any other public or private entity subject to the provisions of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, Public Law 91-646 and 100-17, hereinafter referred to as the federal Uniform Relocation Act, undertakes any project which results in the acquisition of real property or in any person or persons being displaced from their homes, businesses, or farms such state department, agency or instrumentality, county, municipality or other political subdivision, or other public or private entity is hereby authorized to provide relocation assistance, and to make relocation payments to such displaced person and to do such other acts and follow such procedures and practices as may be necessary to comply with the provisions of the federal Uniform Relocation Act.

(Acts 1989, No. 89-522, p. 1070, §1.)

§ 23-1-211 Payments

Any payment made or to be made under the authority granted by this article shall be for compensating or reimbursing the displaced person or owner of real property in accordance with the requirements of the federal Uniform Relocation Act and such payments shall not for any purpose be deemed or considered compensation for real property acquired or compensation for damages to remaining property.

(Acts 1989, No. 89-522, p. 1070, §2.)

§ 23-1-212 Authority of Director of Transportation

The Director of the State Department of Transportation is hereby authorized to issue such regulations and procedures determined to be necessary or appropriate to carry out this article and the federal Uniform Relocation Act being subject to change at any time, such regulations and procedures will not be subject to the Alabama Administrative Procedure Act.

(Acts 1989, No. 89-522, p. 1070, §3.)

Article 9 Highway Beautification

Division 1 Scenic Enhancement

§ 23-1-220 Short Title

This division may be cited as the “Highway Beautification Act - Scenic Enhancement.”

(Acts 1967, No. 432, p. 1101, §1.)

§ 23-1-221 Purpose of Division

The purpose of this division is to promote the safety, convenience, and enjoyment of travel on, and protection of, the public investment in highways of this state and for the restoration, preservation, and enhancement of scenic beauty within and adjacent to the state and federal-aid highways.

(Acts 1967, No. 432, p. 1101, §2.)

§ 23-1-222 Authority of Director of Transportation to Acquire Land

The Director of Transportation is hereby authorized to acquire land necessary for the restoration, preservation, and enhancement of scenic beauty and the establishment of rest areas within, and adjacent to, state and federal-aid highways of this state, including acquisition of publicly owned and controlled rest and recreation areas and sanitary and other facilities within, or adjacent to, the highway right-of-way necessary to accommodate the traveling public.

(Acts 1967, No. 432, p. 1101, §3.)

§ 23-1-223 Interest in Acquired Land; Manner of Acquisition

The interest in any land authorized to be acquired and maintained under this division may be the fee simple or any lesser interest, as determined by the Director of Transportation to be necessary to accomplish the purpose of this division. Such acquisition may be by gift, purchase, exchange, or condemnation.

(Acts 1967, No. 432, p. 1101, §4.)

Division 2 Junkyard Control

§ 23-1-240 Short Title

This division may be cited as the “Highway Beautification Act - Junkyard Control.”

(Acts 1967, No. 643, p. 1455, §1.)

§ 23-1-241 Definitions

For the purposes of this division, the following terms shall have the meanings respectively ascribed to them by this section:

(1) AUTOMOBILE RECYCLER. Any establishment or place of business which is maintained, used, or operated for storing, keeping, buying or selling wrecked, scrapped, ruined, or dismantled motor vehicles or motor vehicle parts.

(2) DIRECTOR. The State Department of Transportation.

(3) INTERSTATE SYSTEM. That portion of the national system of interstate and defense highways located within this state or officially designated, or as may hereafter be so designated, by the director and approved by the United States Department of Transportation pursuant to the provisions of Title 23, United States Code, “Highways.”

(4) JUNK. Old or scrap copper, brass, rope, rags, batteries, paper trash, rubber debris, waste or junked, dismantled or wrecked automobiles, or parts thereof, iron, steel, and other old or scrap ferrous or nonferrous material.

(5) JUNKYARD. Any establishment or place of business which is maintained, operated, or used for storing, keeping, buying, or selling junk or for the maintenance or operation of an automobile recycler. The term shall include garbage dumps and sanitary fills.

(6) PRIMARY SYSTEM. Any highway that is on the National Highway System, as defined under federal law, which includes the Interstate Highway System.

(7) SCRAP PROCESSOR. Any person, firm, or corporation engaged only in the business of buying scrap iron and metals, including, but not limited to, old automobiles, for the specific purpose of processing into raw material for remelting purposes only and whose principal product is ferrous and nonferrous scrap for shipment to steel mills, foundries, smelters, and refineries and maintaining an established place of business in this state and having facilities and machinery designed for such processing.

(Acts 1967, No. 643, p. 1455, §3; Act 2015-474, §1.)

§ 23-1-242 Declaration of Policy

The regulation of junkyards in areas adjacent to any state highway included in the national system of interstate and primary highways is hereby declared to be in the public interest and necessary to promote the public safety, health, welfare, convenience, and enjoyment of public travel, to protect the public investment in public highways, to preserve and enhance the scenic beauty of lands bordering on such highways, and to promote the conservation of our natural mineral resources by encouraging the recycling of the reusable scrap iron and metals. The Legislature hereby finds and declares that junkyards which do not conform to the requirements of this division are a public nuisance.

(Acts 1967, No. 643, p. 1455, §2.)

§ 23-1-243 License - Required

No person shall establish, operate, or maintain a junkyard, any portion of which is within 1,000 feet of the nearest edge of the right-of-way of any interstate or primary highway, without obtaining a license to do so from the director.

(Acts 1967, No. 643, p. 1455, §4.)

§ 23-1-244 License - Issuance, Revocation, and Renewal; Fees

The director shall have the sole authority to issue licenses for the establishment, maintenance, and operation of junkyards within the limits defined in this division, and may revoke said licenses at any time a junkyard fails to conform to the requirements of this division, and shall charge therefor a fee of $25.00, payable annually in advance. All licenses issued under this section shall expire on January 1 following the date of issue. Licenses may be renewed from year to year upon payment of the requisite fee. Proceeds from such fees shall be deposited with the State Treasurer for credit to the State Department of Transportation Public Road and Bridge Fund.

(Acts 1967, No. 643, p. 1455, §5.)

§ 23-1-245 License - Conditions

No license shall be granted for the establishment, maintenance, or operation of a junkyard within 1,000 feet of the nearest edge of right-of-way of any highway on the interstate or primary system, except:

(1) Those which are screened by natural objects, plantings, fences, or other appropriate means so as not to be visible from the main-traveled way of the system or otherwise removed from sight;

(2) Those located within areas which are zoned for industrial use under authority of law;

(3) Those located within unzoned industrial areas, which areas shall be determined by actual land uses and defined by regulations promulgated by the director; or

(4) Those which are not visible from the main-traveled way of the system.

(Acts 1967, No. 643, p. 1455, §6.)

§ 23-1-246 Screening - Existing Junkyards

Any junkyard lawfully in existence on September 8, 1971, which is located within 1,000 feet of the nearest edge of the right-of-way and visible from the main-traveled way of any highway on the interstate or primary system, shall be screened, if considered feasible by the director. The screening shall be at locations on the right-of-way or in areas outside the right-of-way acquired for such purposes, so as not to be visible from the main-traveled way of the interstate or primary system.

(Acts 1967, No. 643, p. 1455, §7.)

§ 23-1-247 Screening - Rules and Regulations

The director shall have the authority to promulgate rules and regulations governing the location, planting, construction, and maintenance, including the materials used, in screening junkyards as required under provisions of this division.

(Acts 1967, No. 643, p. 1455, §8.)

§ 23-1-248 Authority of Director - Acquisition of Land

(a) When the director determines that the topography of the land adjoining the interstate or primary systems will not permit adequate screening of such junkyards or that screening would not be economically feasible, the director shall have the authority to acquire by gift, purchase, exchange, or eminent domain such interests in lands as may be necessary, including fee simple title, to secure the relocation, removal, or disposal thereof.

(b) When the director determines that it is in the best interest of the state, he may acquire such lands upon payment of just compensation to the owners, or interest in said lands as may be necessary to provide adequate screening of such junkyards.

(c) Damages resulting from any taking of property in eminent domain shall be ascertained in the manner provided by law.

(Acts 1967, No. 643, p. 1455, §9.)

§ 23-1-249 Authority of Director - Regulations; Agreements with United States Department of Transportation

The director may:

(1) Promulgate regulations he deems necessary to implement and enforce provisions of this division; and

(2) Enter into agreements with the United States Department of Transportation pursuant to Title 23, United States Code, and any amendments thereto, relating to the control of junkyards in areas adjacent to the interstate and primary systems and to take action in the name of the state to comply with the terms of this agreement.

(Acts 1967, No. 643, p. 1455, §11.)

§ 23-1-250 Penalty for Violation of Division; Abatement of Nuisances

The establishment, operation, or maintenance of any junkyard contrary to the provisions of this division shall be a public nuisance. Any person, partnership, or corporation that establishes, maintains, or operates any junkyard contrary to the provisions of this division shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be penalized by a fine of not less than $100.00 nor more than $1,000.00, said fine to be applicable only after receipt by said person, partnership, or corporation of written notification that said person, partnership, or corporation is violating any provision of this division and their failure to comply with the requirements contained in this division within 30 days from the date of the receipt of said notice, and in addition thereto, the director may apply to the circuit court of the county in which said junkyard may be, for an injunction to abate such nuisance.

(Acts 1967, No. 643, p. 1455, §10.)

§ 23-1-251 Construction of Division

Nothing in this division shall be construed to abrogate or affect the provisions of any lawful ordinance, regulation, or resolution which are more restrictive than the provisions of this division.

(Acts 1967, No. 643, p. 1455, §12.)

Division 3 Outdoor Advertising

§ 23-1-270 Short Title

This division shall be known as and may be cited as the “Highway Beautification Act - Outdoor Advertising.”

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §1.)

§ 23-1-271 Definitions

For the purposes of this division, unless otherwise indicated, the following terms shall have the meanings respectively ascribed to them by this section:

(1) ADJACENT AREA. An area which is adjacent to and within 660 feet of the nearest edge of the right-of-way of any interstate or primary highway, which 660 feet distance shall be measured horizontally along a line normal or perpendicular to the centerline of the highway.

(2) BUSINESS AREA. Any part of an adjacent area which is zoned for business, industrial, or commercial activities under the authority of any law of this state or not zoned, but which constitutes an unzoned commercial or industrial area as defined in this section.

(3) CENTERLINE OF THE HIGHWAY. A line equidistant from the edges of the median separating the main-traveled ways of a divided highway or the centerline of the main-traveled way of a nondivided highway.

(4) COMMERCIAL OR INDUSTRIAL ACTIVITIES FOR PURPOSES OF UNZONED INDUSTRIAL AND COMMERCIAL AREAS. Those activities generally recognized as commercial or industrial by local zoning authorities in this state, except that none of the following activities shall be considered commercial or industrial:

a. Outdoor advertising structures;

b. Agricultural, forestry, ranching, grazing, farming, and similar activities, including, but not limited to, wayside fresh produce stands;

c. Activities normally or regularly in operation less than three months of the year;

d. Transient or temporary activities;

e. Activities not visible from the main-traveled way;

f. Activities more than 660 feet from the nearest edge of the right-of-way;

g. Activities conducted in a building principally used as a residence;

h. Railroad tracks and minor sidings; or

i. Areas which are predominantly used for residential purposes.

(5) DIRECTOR. The State Department of Transportation.

(6) ERECT. To construct, build, raise, assemble, place, affix, attach, create, paint, draw, or in any other way bring into being or establish, but it shall not include any of the foregoing activities when performed as an incident to the change of advertising message or customary maintenance of the sign structure.

(7) INFORMATION CENTER. An area or site established or maintained at safety rest areas for the purpose of informing the public of places of interest within the state and providing such other information as the director may consider necessary.

(8) INTERSTATE HIGHWAY. Any highway at any time officially designated as a part of the national system of interstate and defense highways by the director and approved by the appropriate authority of the federal government.

(9) MAINTAIN. To allow to exist.

(10) MAIN-TRAVELED WAY. The through traffic lanes exclusive of frontage roads, auxiliary lanes, and ramps.

(11) MOTORIST DIRECTIONAL SIGNS. Any signs, displays, or devices giving directional information pertaining to food services, lodging, gasoline and automotive services, resorts, attractions, campgrounds, truck stops, natural wonders, scenic and historical sites, and areas suited for outdoor recreation.

(12) PRIMARY HIGHWAY. Any highway, other than an interstate highway, officially designated as a part of the federal-aid primary system by the director, approved by the appropriate authority of the federal government, as of June 1, 1991, or any highway which is not on the federal-aid primary system, but which is or becomes a part of the National Highway System.

(13) REMOVING AUTHORITY. Any governmental entity.

(14) SAFETY REST AREAS. An area or site established or maintained within or adjacent to the right-of-way by or under public supervision or control for the convenience of the traveling public.

(15) SIGN. Any outdoor advertising sign, display, device, notice, figure, painting, drawing, message, placard, poster, billboard, or other thing which is designed, intended, or used to advertise or inform, any part of the advertising or informative contents of which is visible from any place on the main-traveled way of any portion of an interstate highway or primary highway.

(16) UNZONED COMMERCIAL, BUSINESS, OR INDUSTRIAL AREA. The land occupied by the regularly used building, parking lot, storage or processing area of a commercial, business, or industrial activity, and the land within 600 feet thereof on each side of the highway. The unzoned area shall not include:

a. Land on the opposite side of an interstate or primary freeway highway from an unzoned commercial, business, or industrial area, as defined above;

b. Land predominantly used for residential purposes;

c. Land zoned by state or local law, regulation, or ordinance;

d. Land on the opposite side of a nonfreeway primary highway which is determined scenic by the State Department of Transportation.

All measurements shall be from the outer edges of the regularly used buildings, parking lots, storage or processing areas of the commercial or industrial activities, not from the property lines of the activities, unless the property lines coincide with the limits of the regularly used buildings, parking lots, storage or processing areas and shall be along or parallel to the edge or pavement of the highway.

(17) URBAN AREA. An urbanized area so designated by the Bureau of the Census, within boundaries fixed by responsible state and local officials, subject to approval by the Secretary of the United States Department of Transportation, or an urban place as designated by the Bureau of the Census having a population of 5,000 or more and not within any urbanized area, within boundaries fixed by responsible state and local officials, subject to approval by the Secretary of the United States Department of Transportation.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §3; Acts 1978, No. 383, p. 347; Acts 1979, No. 79-672, p. 1183; Act 2016-301, §1.)

§ 23-1-272 Declaration of Policy

The Legislature hereby finds and declares:

(1) That outdoor advertising is a legitimate commercial use of private property adjacent to roads and highways;

(2) That the erection and maintenance of outdoor advertising signs, displays, and devices in areas adjacent to interstate highways and primary highways should be regulated in order to protect the public investment in such highways, to promote the recreational value of public travel, to preserve natural beauty, and to promote the reasonable, orderly, and effective display of such signs, displays, and devices;

(3) That outdoor advertising is an integral part of the business and marketing function and an established segment of the national economy and should be allowed to operate in business areas;

(4) Regulatory standards set forth in Section 23-1-274 are consistent with customary use in this state and will properly and adequately carry out each and all of the purposes of this division; and

(5) Motorist directional signs are essential to the economic interests of the state and the interests of the traveling public; therefore, no motorist directional sign not otherwise permitted under Section 23-1-273 shall be removed on a statewide basis, unless by mutual agreement between the sign owner and the State Department of Transportation, until all other nonconforming signs are removed.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §2; Acts 1979, No. 79-672, p. 1183.)

§ 23-1-273 Erection or Maintenance of Signs - Prohibited in Adjacent Areas; Exceptions

No sign shall, subject to the provisions of Section 23-1-274, be erected or maintained in an adjacent area after February 10, 1972, nor shall any outdoor advertising sign, display, or device with the purpose of its message being read from the main-traveled way of an interstate highway or primary highway be erected after April 11, 1978, outside of an urban area beyond 660 feet of the nearest edge of right-of-way of an interstate or primary highway, except the following:

(1) Directional and official signs, including, but not limited to, signs pertaining to natural wonders, scenic and historical attractions, safety rest areas, and information centers, which are authorized by the director, under promulgated rule, and which comply with regulations promulgated by the director relative to their lighting, size, number, spacing, and other such requirements as may be appropriate to implement this division; provided, that such regulations shall not be inconsistent with, nor more restrictive than, such national standards as may be promulgated from time to time by the Secretary of Transportation of the United States pursuant to subsection (c) of Section 131, of Title 23, United States Code.

(2) Signs lawfully in existence on October 22, 1965, determined by the state, subject to the concurrence of the United States Secretary of Transportation, to be landmark signs, including signs on farm structures or natural surfaces of historic or artistic significance, the preservation of which would be consistent with the purposes of this section.

(3) Signs advertising the sale or lease of property upon which they are located.

(4) Signs advertising activities conducted on the property on which they are located. For the purposes of this subdivision, the promotion of activities at other locations or the dissemination of information about activities conducted upon other property shall not be considered activities conducted on the property on which a sign is located.

(5) Signs located in business areas on February 10, 1972, and signs to be erected in business areas subsequent to February 10, 1972, which when erected, will comply with the provisions of Section 23-1-274; provided, that no advertising, sign, display, or device with the purpose of its message being read from the main-traveled way shall be erected after April 11, 1978, outside an urban area beyond 660 feet of the edge of the right-of-way of an interstate or primary highway, whether located in a business area or not.

(6) Signs or devices which advertise or designate exclusively the location of the facilities of any public utility located along the interstate or primary highway for the convenience or protection of the using public or the protection of the facilities of the public utility.

(7) Motorist directional signs lawfully erected and in existence on May 5, 1976, which do not conform to requirements of present state laws and whose removal would work a substantial economic hardship in a specific or defined area. The State Department of Transportation, upon receipt of a petition, declaration, or resolution from any state, county, or municipal agency, from any industry association or any group of private business persons or their employees, claiming that the removal of such motorist directional signs would work a substantial economic hardship in specific or defined areas, shall forward such petition, declaration, or resolution to the United States Secretary of Transportation to approve retention of such motorist directional signs.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §4; Acts 1978, No. 383, p. 347; Acts 1979, No. 79-672, p. 1183.)

§ 23-1-274 Erection or Maintenance of Signs - Controls; Criteria

The director shall effectively control, or cause to be controlled, the erection and maintenance of outdoor advertising signs, displays, and devices in all business areas that are erected subsequent to February 10, 1971. Whenever a bona fide state, county, or local zoning authority has made a determination of customary use as to size, lighting, and spacing, such determination may be accepted in lieu of controls by agreement in the zoned commercial and industrial area within the geographical jurisdiction of such authority. In all other controlled commercial and industrial areas, the criteria set forth below shall apply:

(1) SIZE OF SIGNS.

a. For sign structures erected after July 15, 1995, the maximum area for any one sign shall be 672 square feet with a maximum height of 14 feet and a maximum length of 48 feet, inclusive of any border and trim on the sign face, but excluding any embellishment on and cut-out extension of the sign face, the base or apron, supports, and other structural members. For sign structures lawfully in existence on or before July 15, 1995, the maximum area for any one sign shall be 1,200 square feet with a maximum height of 30 feet and a maximum length of 60 feet, inclusive of any border and trim, but excluding the base or apron, supports, and other structural members.

b. The area shall be measured by the smallest square, rectangle, triangle, or circle or combination thereof which will encompass the entire sign.

c. Sign structures erected after July 15, 1995, may contain one or two signs per facing and may use only a side-by-side, back-to-back, or V-type configuration, and may use no other configuration; provided, that if two signs are used facing the same direction, the aggregate total area shall not exceed 672 square feet. Sign structures lawfully in existence on or before July 15, 1995, may contain one or two signs per facing and may be placed double-faced, back-to-back, or V-type; provided, that if two signs are used facing the same direction, the aggregate total area shall not exceed 1,200 square feet.

(2) LIGHTING.

a. Signs shall not be erected or maintained which contain, include, or are illuminated by any flashing, intermittent, or moving lights, except those giving public service information such as, but not limited to, time, date, temperature, weather, or news.

b. Signs shall not be erected or maintained which are not effectively shielded so as to prevent beams or rays of light from being directed at any portion of traveled way of any interstate or primary highway and are of such intensity or brilliance as to cause glare or to impair the vision of the driver of any motor vehicle.

c. Signs shall not be erected or maintained which shall be so illuminated that they obscure or interfere with any official traffic sign, device, or signal.

(3) SPACING.

a. Signs shall not be erected or maintained in such a manner as to obscure, or otherwise physically interfere with, an official traffic sign, signal, or device or which obstructs or physically interferes with the driver’s view of approaching, merging, or intersecting traffic.

b. Signs shall not be erected or maintained which do not comply with all applicable county or municipal codes and ordinances, including, but not limited to, zoning, buildings, and sign codes, as locally interpreted, applied, and enforced.

c. Signs shall not be erected or maintained closer to another sign other than a sign described in subdivisions (1), (2), (3), (4), and (6) of Section 23-1-273 than the following prescribed distances. These spacing provisions do not apply to signs separated by buildings or other obstructions in such manner that only one sign located within the above spacing distance is visible from the highway at any one time. The minimum distance between signs shall be measured along the nearest edge of the pavement between points directly opposite the signs along each side of the highway.

  1. On all interstate highways and freeway primary highways, there must be at least 500 feet between sign structures on the same side of the highway.

  2. On interstate highways and freeway primary highways located outside the zoning authority of incorporated cities, no sign structure is permitted adjacent to or within 500 feet of an interchange or intersection at grade or safety roadside rest areas. Such distances shall be measured along the highway to the nearest point of beginning or ending of pavement widening at the exit from or entrance to the main-traveled way.

  3. On primary highways located outside the zoning authority of incorporated cities, for sign structures erected after July 15, 1995, there must be at least 500 feet between sign structures on the same side of such highway, and for sign structures lawfully in existence on or before July 15, 1995, there must be at least 300 feet between sign structures on the same side of such highway.

  4. On primary highways located within the zoning authority of incorporated cities, for sign structures erected after July 15, 1995, there must be at least 500 feet between sign structures on the same side of such highway, and for sign structures lawfully in existence on or before July 15, 1995, there must be at least 100 feet between sign structures on the same side of such highway.

(4) GENERAL.

a. Signs shall not be erected or maintained which imitate or resemble any official traffic sign, signal, or device.

b. Signs shall not be erected or maintained upon trees, or painted or drawn upon rocks or other natural features.

c. Signs shall not be erected or maintained which are structurally unsafe or in substantial disrepair.

d. Signs which are obsolete shall be removed.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §5; Acts 1995, No. 95-566, p. 1182, §§2-5; Act 2016-301, §1.)

§ 23-1-275 Erection or Maintenance of Signs - Permits; Identification Tags or Decals

(a) No sign permitted by the provisions of Section 23-1-274 may be erected without first obtaining a permit therefor from the director. No permit shall be required for signs conforming to the provisions of this division which are in existence upon February 10, 1972, until the end of the fifth calendar year. The application for a permit shall be on a form provided by the director and shall contain such information as the director may require. Upon receipt of an application containing all required information in due form and properly executed, the director shall issue a permit to the applicant for the erection of the sign, provided such sign will not violate any provisions of this division. A charge of $25.00 will be made for each location covered in the permit. The application for a permit shall be accompanied by the required fee.

(b) Permits shall be for the calendar year, and shall be renewed annually upon payment of a fee of $10.00 for the following calendar year without the necessity of filing a new application. The fee shall not be prorated for fractions of the year. Only one permit shall be required for double-faced, back-to-back, or V-type signs. Advertising copy may be changed at any time without the payment of an additional fee, and nothing in this division shall be construed to give the director any power of censorship with regard thereto.

(c) Permit fees for signs under this division shall become due and payable on January 1 of each year and delinquent on February 15 thereafter. A 25 percent penalty shall be charged and collected for any delinquent permit issued after February 15.

(d) In addition to the permit, the director shall issue an identification tag or decal to the applicant upon payment of the fee which shall be permanently affixed to the sign, display, or device for which the permit was issued. Such tag or decal shall be so affixed in a uniform position on all such signs, displays, and devices. The size, location, and content, including identification numbers, and the materials from which such tags or decals are to be made shall be determined by the director. All signs, displays, and devices which do not have the tag or decal attached thereto as provided in this section, shall be considered as being nonconforming within the terms of this division.

(e) The director shall issue a permit for the sign, display, or device described in any application duly made under this section unless it is in violation of this division. Any permit may be revoked after a public hearing upon 30 days written notice if the director finds that any statements made in the application thereof were false or misleading or that the advertising sign, display, or device covered thereby is not in good general condition and in reasonable state of repair or is otherwise in violation of this division, provided such false or misleading statement has not been corrected and that the sign, display, or device has not been brought into compliance with this division prior to said public hearing. The director for good cause shown at such hearing may extend the time within which such sign, display, or device may be brought into conformance or other remedial action taken.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §11; Acts 1978, No. 383, p. 347.)

§ 23-1-276 Erection or Maintenance of Signs - Name and Address of Owner and Date of Erection to Appear on Signs, Etc

Each sign or structure regulated by this division shall have stated thereon the name and address of the owners thereof and the date of its erection; provided, that if the address of the owner is on file with the director, it need not be stated on such sign or structure.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §10.)

§ 23-1-277 Erection or Maintenance of Signs - Exceptions to Sections 23-1-275 and 23-1-276

The provisions of Sections 23-1-275 and 23-1-276 shall not be applicable to signs of less than one square foot in area, excluding the support, erected by a public utility to mark the location of any buried telephone cable, electric power line, gas line, waterline, or other underground public utility facility, for the protection of the facilities of the public utility.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §18.)

§ 23-1-278 Enforcement of Division Generally

(a) Any sign erected or maintained in an adjacent area after February 10, 1972, and any outdoor advertising sign, display, or device erected with the purpose of its message being read from the main-traveled way of any interstate highway or primary highway outside of an urban area and beyond 660 feet of the right-of-way after April 11, 1978, in violation of the provisions of this division or the rules and regulations promulgated under the provisions of this division may be removed by the director upon 30 days’ prior notice by certified or registered mail to the owner thereof and to the owner of the land on which said sign is located or through court proceedings at the option of the director. No notice shall be required to be given to the owner of the sign or to a property owner whose name is not stated on the sign or on the structure on which it is displayed or whose address is not stated thereon and is not on file with the director.

(b) The courts of this state shall have jurisdiction, in accordance with the provisions of Sections 6-6-220 through 6-6-232, over actions for declaratory judgment, initiated by the director, the owners of signs or the owners of property on which signs are located, to determine and adjudicate controversies arising under or out of the enforcement of this division and to set forth the rights, duties, and responsibilities of the various parties arising under this division, including decrees of injunction and ordering removal of signs. In addition the courts of this state shall have such injunctive powers as may be necessary to enforce or compel compliance with the provisions of this division in cases filed by the director for injunction in the enforcement of this division, including the power to enjoin the continuing maintenance of any sign erected or maintained in violation of the provisions of this division and the removal of any such signs on complaint filed by the director. Proceedings hereunder being largely equitable in nature, the courts shall set forth the rights, duties, and responsibilities of the parties under this division on the facts presented without intervention of a jury except as may be otherwise provided by statute or the Constitution of Alabama. In the event a sign or signs involved in any proceeding hereunder are found to be maintained, permitted to exist, or erected in violation of any of the provisions of this division, the court trying the cause, on being petitioned by the director, shall order the removal of the sign or signs, subject to Sections 23-1-280, 23-1-281, and 23-1-282, where applicable, by the sign owner or jointly by the sign owner and property owner if joined in the proceeding or separately by the property owner; provided, that the director, acting through personnel of the State Department of Transportation, may remove such signs at the option of the director as provided herein or as ordered by the court. Court costs shall be taxed against a sign owner or property owner on which a sign is located if a court determines that such parties have erected or maintained a sign in violation of this division. Jurisdiction and procedure of courts are not limited by this division.

(c) In any proceeding hereunder in the courts of this state, an allegation or averment setting forth the owner of the real property or the owner of a sign located thereon to be a particular party or parties shall be deemed to establish prima facie ownership of the real property or the sign to be in such party or parties, respectively, unless within 30 days from the service of process upon them, such party or parties file in the proceeding a sworn denial of ownership and, in addition thereto, set forth any interest in and to such real property or sign to which they claim to be entitled. In any proceeding hereunder in the courts, employees of the State Department of Transportation may testify, from general knowledge, that a particular highway is an interstate or primary highway or as to the location of geographical boundaries of urban areas, incorporated municipalities and other zoned areas. In addition to other official maps, maps prepared by the State Department of Transportation as to the location of geographical boundaries of urban areas hereunder shall be received in evidence in aid of establishment of such boundaries when offered on the general knowledge of employees of the State Department of Transportation that such map or maps were prepared by the State Department of Transportation for the purpose of establishing the geographical boundaries of an urban area.

(d) In the event a determination is made by the director that a particular sign or signs have been erected or are being maintained or allowed to exist in violation of any of the provisions of this division, upon written notice to the owner of such sign or signs, such owner of the sign or signs shall have a duty to submit to the director all factual and documentary evidence in his possession, under his control, or reasonably obtainable by such sign owner relating to the date or dates of the erection of the sign or signs, the names of individuals erecting same and all information relating in any manner to the erection of the sign or signs, the names of individuals erecting same and all information relating in any manner to the location thereof which would tend to have a bearing on whether the sign or signs were erected in violation of or are being maintained or allowed to exist in violation of any of the provisions of this division.

All officers and employees of the State Department of Transportation are hereby authorized and empowered to enter upon and go across any land located within the State of Alabama for the purpose of inspection of any sign determined by the director to be in existence in violation of this division or any amendment thereto. Any officer and employee of the State Department of Transportation who, acting lawfully under this division, enters upon or crosses any lands located within this state for the purpose of inspection or removal of any such sign and in and about the activity of inspection or removal of any such sign is hereby vested with full police power to arrest or prefer charges against any person or persons who interferes with the performance of his duty.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §12; Acts 1978, No. 383, p. 347.)

§ 23-1-279 Nonconforming Signs - Removal and Payment of Compensation Generally

(a) Signs outside of business areas which are lawfully in existence on February 10, 1972, but which do not conform to the requirements in this division, are declared nonconforming and, subject to Sections 23-1-280, 23-1-281, and 23-1-282, shall be removed by the sign owner and/or property owner under agreement with the director, or under the authority of the director, upon agreement between the parties as to just compensation. In the event no agreement can be reached as to just compensation, the sign shall be removed and payment made therefor through petition filed in probate court in accordance with Section 23-1-282. Outdoor advertising signs, displays, or devices with the purpose of their message being read from the main-traveled way of any interstate highway or primary highway erected prior to April 11, 1978, outside of an urban area and beyond 660 feet of the edge of the right-of-way of such interstate or primary highway and not otherwise lawful under Section 23-1-273, as amended, are declared nonconforming and, subject to Sections 23-1-280, 23-1-281, and 23-1-282, shall be removed by the sign owner and/or property owner under agreement with the director or under the authority of the director, upon agreement between the parties as to just compensation. In the event no agreement can be reached as to just compensation, the sign shall be removed and payment made therefor through petition filed in probate court in accordance with Section 23-1-282.

(b) Signs lawfully erected after February 10, 1972, and which subsequently do not conform to the requirements of this division, shall be removed by the sign owner and/or property owner under agreement with the director or under the authority of the director, upon agreement between the parties as to just compensation. In the event no agreement can be reached as to just compensation, the sign shall be removed and payment made therefor through petition filed in probate court in accordance with Section 23-1-282.

(c) Should any commercial or industrial activity which has been used in defining or delineating an unzoned area cease to operate, the unzoned area shall be redefined or redelineated based on the remaining activities. Any signs located within the former unzoned area, but located outside the unzoned area based on its new dimensions, shall become nonconforming and, subject to Sections 23-1-280, 23-1-281, and 23-1-282, shall be removed by the sign owner and/or property owner under agreement with the director or under the authority of the director, upon agreement between the parties as to just compensation. In the event no agreement can be reached as to just compensation, the sign shall be removed and payment made therefor through petition filed in probate court in accordance with Section 23-1-282.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §6; Acts 1978, No. 383, p. 347.)

§ 23-1-280 Nonconforming Signs - Just Compensation to Be Paid Upon Removal of Signs

Just compensation shall be paid by the removing authority upon the removal of any of the following signs which are not then in conformity with this division whether or not removed pursuant to or because of this division:

(1) Signs lawfully in existence on February 10, 1972.

(2) Signs lawfully in existence on land adjoining any highway made an interstate or primary highway after February 10, 1972.

(3) Outdoor advertising signs, displays, or devices erected with the purpose of their message being read from the main-traveled way of any interstate highway or primary highway erected outside of an urban area and beyond 660 feet of the edge of the right-of-way of an interstate or primary highway erected prior to April 11, 1978, and not otherwise lawful under Section 23-1-273.

(4) Signs lawfully erected on or after February 10, 1972.

Notwithstanding any provision of law to the contrary, no removing authority shall remove or cause to be removed, or cause the alteration in any manner of, any lawfully erected sign along any public street or highway within the state without paying just compensation. Amortization for whatever period shall not constitute just compensation.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §7; Acts 1978, No. 383, p. 347; Acts 1979, No. 79-672, p. 1183; Acts 1988, No. 88-228, p. 360; Acts 1995, No. 95-566, p. 1182, §1.)

§ 23-1-281 Nonconforming Signs - Just Compensation - for What Paid

The just compensation required by the provisions of Section 23-1-280 shall be paid for the following:

(1) The taking from the owner of such sign, all right, title, and interest in and to such sign, and his leasehold relating thereto, and compensation therefor, including severance damage to the remaining portion of the sign, shall be included in the amounts paid to the respective owner, exclusive of any damage of factories involved in manufacturing, erection, maintenance, or servicing of any outdoor advertising signs or displays.

(2) The taking from the owner of the real property on which the sign is located or the right to erect and maintain such signs thereon.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §8.)

§ 23-1-282 Nonconforming Signs - Just Compensation - to Whom Paid; Agreements; Civil Actions

(a) Compensation required under the provisions of Sections 23-1-280 and 23-1-281 shall be paid to the person or persons entitled thereto. If the director and the owner or owners reach an agreement on the amount of compensation payable to such owner or owners in respect to any removal or relocation, the director may pay such compensation to the owner or owners and thereby acquire or terminate his rights or interest as by purchase; provided, that any sign, display, or device lawfully in existence along the interstate system or the federal-aid primary system on February 10, 1971, which is not in conformity with the provisions contained in this division shall not be required to be removed until just compensation has been paid therefor. Notwithstanding any other provision of this division, no sign, display, or device otherwise required to be removed under this division, for which just compensation is authorized to be paid by the director, shall be required to be removed if the federal share of at least 75 percent of the just compensation to be paid upon removal of such sign, device, or display is not available for such payment.

(b) If the director and the owner do not reach agreement as to such amount of compensation, the director may institute an action to have such compensation determined in a civil action. Such an action shall be instituted by filing a petition in the probate court of the county where the advertising device and land are located. Such action for determination of compensation shall thereupon proceed and be treated in accordance with the provisions of this title and Title 18 of this code to the extent not inconsistent with the provisions of this division, the same as if such action had been commenced thereunder by a petition by the state for the taking of property under its power of eminent domain.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §9.)

§ 23-1-283 Nonconforming Signs - Just Compensation - Sufficient Federal Funds Required

Despite any contrary provisions in this division, no sign shall be required to be removed unless at the time of removal there are sufficient funds, from whatever source, appropriated and immediately made available to the director with which to pay the just compensation required under Sections 23-1-280 through 23-1-282 and unless, at such time, the federal funds required to be contributed to this state under Section 131, Title 23, United States Code, have been appropriated and are immediately available to the state.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §17.)

§ 23-1-284 Agreement with United States Secretary of Transportation

The director, on behalf of the state, is authorized and directed to seek agreement with the Secretary of Transportation of the United States, acting under the provisions of Section 131, Title 23, United States Code, as amended, that the provisions of this division are in conformance with Section 131, Title 23, United States Code, and provide effective control of outdoor advertising signs as set forth therein.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §14.)

§ 23-1-285 Director Authorized to Accept Federal Funds

The director may accept any allotment of funds by the United States, or any agency thereof, appropriated to carry out the purposes of Section 131, Title 23, United States Code, as amended, from time to time. The director shall take such steps as may be necessary, from time to time, to obtain from the United States, or the appropriate agency thereof, funds allotted and appropriated, pursuant to Section 131, Title 23, United States Code, for the purpose of paying the federal government’s 75 percent share of the just compensation to be paid to sign owners and owners of real property under the terms of subsection (g) of Section 131, Title 23, United States Code, and Sections 23-1-280 through 23-1-282.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §15.)

§ 23-1-286 Rules and Regulations

The Director of Transportation is hereby authorized to adopt such rules and regulations as are necessary and appropriate to carry out the provisions of this division.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §16.)

§ 23-1-287 Disposition of Fees

All fees collected for the issuance of permits provided for under this division shall be paid into the State Treasury to be credited to the Public Road and Bridge Fund.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §20.)

§ 23-1-288 Penalty for Violation of Division, Etc

Whoever erects or maintains a sign in violation of the provisions of this division or in violation of rules and regulations promulgated by the director under the provisions of this division shall be guilty of a Class C misdemeanor and shall upon conviction be punished as provided in Title 13A.

(Acts 1971, 3rd Ex. Sess., No. 276, p. 4544, §13; Acts 1978, No. 383, p. 347.)

Article 9A Alabama Scenic Byways Program

§ 23-1-290 Short Title

This article shall be known as “Alabama the Beautiful Act.”

(Act 2000-589, p. 1076, §1.)

§ 23-1-291 Legislative Findings

The Legislature finds that certain portions of the state highway system provide access to state locales that are notable for their scenic, natural, historic, recreational, cultural, and archaeological value and are therefore worthy of designations as scenic byways in order to provide special consideration of their unique features and special role in the highway system. The Legislature further finds that the public interest would be served by the formation of a coordinated scenic byways program to enhance recreational, cultural, and archaeological resources, encourage economic development through tourism, improve the transportation system, and educate residents and visitors on the history, culture, and natural beauty of this state. In order to implement this program, the Legislature has determined that a two-tiered structure would best serve the governance of the Alabama Scenic Byways program. The Legislature recognizes that the application of this article is meant to add value to the community, and that public involvement, specifically the rights and interests of private property owners, must be considered in implementing provisions of this article and in the designation of byways. Specifically, any such actions taken which affect private property are subject to statutes and regulations otherwise established in accordance with the United States Constitution and the Constitution of Alabama of 1901.

(Act 2000-589, p. 1076, §2.)

§ 23-1-292 Program Established

The Alabama Scenic Byways program is hereby established through a two-tiered system consisting of a Designating Committee and an Advisory Council. Appointments to the committee and the council shall be made within 30 days and 45 days, respectively, of August 1, 2000. Organizational meetings of the committee and the council shall be held within 60 days of August 1, 2000. The Advisory Council and the Designating Committee may adopt such organizational and administrative rules and procedures deemed necessary to conduct business.

(Act 2000-589, p. 1076, §3.)

§ 23-1-293 Designating Committee

(a) The Designating Committee shall consist of a state legislator to be appointed by the Governor, a state Senator appointed by the President Pro Tempore of the Senate, a member of the House of Representatives appointed by the Speaker of the House, and the heads, or their official designees, of the following seven departments:

(1) The Alabama State Department of Transportation.

(2) The Alabama Tourism Department.

(3) The Alabama Historical Commission.

(4) The Alabama Council on the Arts.

(5) The Alabama Department of Economic and Community Affairs.

(6) The Alabama Department of Conservation and Natural Resources.

(7) The Alabama Forestry Commission.

(b) The Designating Committee shall perform the following duties:

(1) Designate as scenic byways from the highways recommended to it by the Advisory Council, as provided in subsection (d) of Section 23-1-294.

(2) Advise the Governor and the Legislature of each designation.

(3) Adopt procedures for the administration of designating and managing scenic byways.

(4) Remove the designation of a highway as a scenic byway where it deems appropriate.

(Act 2000-589, p. 1076, §4.)

§ 23-1-294 Advisory Council

(a) The Advisory Council shall consist of a member of the Alabama House of Representatives appointed by the Speaker of the House, a member of the Alabama Senate appointed by the Lieutenant Governor, one member appointed by each member of the Designating Committee, three persons appointed from the state at-large by the Governor, and one representative appointed by the Governor from each of the following groups or organizations:

(1) Scenic Alabama.

(2) Alabama Environmental Council.

(3) The outdoor advertising industry.

(4) The Alabama Wildlife Federation.

(5) A business, industry, or trade association or professional organization having its principal programs extending generally throughout the state, and having a demonstrated concern for balancing economic growth with protection for the environment and increased recreational opportunities.

(6) Public utilities.

(7) Tourism associations.

(8) Real estate associations.

(9) Regional planning commissions.

(10) A statewide historic preservation organization.

(11) Forestry interests.

(12) Agricultural interests.

In making these appointments, the Governor shall ensure equitable geographic representation.

(b) Additionally, a member shall be appointed from each of the following departments or organizations:

(1) The United States Department of the Interior, designated by the Secretary of the Interior.

(2) The Alabama League of Municipalities, designated by the president of the league.

(3) The Alabama Association of County Commissions, designated by the president of the association.

(4) The Black Heritage Council designated by the chair of the council.

(5) The Alabama Association of Resource Conservation and Development Councils designated by the chair of the association.

(c) The Advisory Council shall report to the Governor and the Legislature on the progress of the implementation of this article within one year of August 1, 2000, and by January 1 of each year thereafter.

(d) The duties and responsibilities of the Advisory Council shall include the following:

(1) Providing, in the first report, a scenic byways program implementation plan identifying essential components for the Alabama Scenic Byways system, and recommending any actions by the Legislature which may be necessary to implement a cohesive and coordinated scenic byways program that would serve the goals of preserving and protecting scenic, historic, natural, recreational, cultural, and archaeological resources, enhancing recreation, and promoting economic development through tourism and education in the history, culture, and natural beauty of Alabama. An initial inventory of potential scenic byways created for the Department of Transportation and the Alabama Tourism Department may be used in developing the implementation program and considered in the selection of byways.

(2) Developing a process for nominations for scenic byway and nomination criteria.

(3) Advising and consulting with municipalities regarding the process of recommending municipal roads for inclusion in the scenic byways program.

(4) Encouraging towns and municipalities to designate scenic byways within their jurisdictions and to petition the Designating Committee for the inclusion of these byways into the Alabama Scenic Byways program. Such inclusion may enable the municipality to participate in any federal, state, or other funding that may be available.

(5) Encouraging and assisting in fostering public awareness, understanding, and participation in the objectives and functions of the scenic byways program.

(6) Providing municipalities with tools and ideas for the enhancement and protection of designated scenic byways.

(7) Recommending operation and management standards for highways designated as scenic byways, including strategies for maintaining or improving the qualities for which a highway is designated as a scenic byway, and for protecting and enhancing the landscape and view corridors within the public rights-of-way surrounding such a highway, provided that such standards shall have no impact on the facilities or equipment used in the generation, transmission, or distribution of electric power, telecommunications, commercial mobile radio services, broadband services, or existing wireless facilities. However, all new wireless services structures, unless used primarily for educational purposes, shall be reviewed under the terms of this article and shall consider the communication needs of the community and shall not be in conflict with any local, state, and federal laws and regulations.

(8) Recommending standards for scenic byway-related signs, including those which identify highways as scenic byways.

(9) Recommending standards for maintaining highway safety on the scenic byway system.

(10) Recommending measures to safely accommodate the largest variety of scenic byway users, including, but not limited to, persons traveling by automobile, recreational vehicle, motor coach, bicycle, horse, watercraft, or by foot.

(11) Recommending design review procedures for location of highway facilities, landscaping, and travelers facilities on the scenic byway system.

(12) Removing the designation of a highway as a scenic byway if the highway is determined to no longer meet the criteria under which it was designated or has not adequately adhered to its submitted corridor management plan.

(13) Advising on such other matters as may be necessary or desirable to further the purposes of this program.

(14) Evaluating and recommending to the Designating Committee and the Legislature amendments of the statutes and regulations relevant to the furtherance of a cohesive system of scenic byways.

(15) Making recommendations with respect to state regulatory policy consistent with the Alabama Scenic Byways program.

(16) Establishing procedures, standards, guidelines, and plans consistent with federal, state, and local authority and recommend designations accordingly. Until all rules, procedures, guidelines, and standards are established, the federal rules for establishing a corridor management plan shall be utilized.

(17) Recommending for designations and removal of designations as scenic byways in Alabama based on criteria which include, but shall not be limited to, the following:

a. Significant possession of at least one of the following intrinsic qualities: Scenic, historic, natural, recreational, cultural, or archaeological.

b. Demonstration in scenic byway nominations of local, private, and public support.

c. Presence and implementation of a corridor management plan. A corridor management plan is a written document that specifies the actions, procedures, controls, operational practice, and administrative strategies necessary to maintain the scenic, historic, cultural, recreational, archaeological, and natural qualities of the scenic byway.

d. Conducting a public hearing in the area of the proposed designation before a scenic byway is so designated.

(18) Outdoor advertising shall be addressed pursuant to the following criteria:

a. Corridor management plans for individual byways shall include provisions for the regulation of outdoor advertising to conform with applicable federal, state, and local laws, including, but not limited to, 23 U.S.C. Section 131(s).

b. Corridor management plans shall also include provisions for removal of dilapidated and nonfunctional signage within six months.

c. Removal of any antiquated and nonapplicable signs on roads and highways throughout the state within six months.

Notwithstanding the foregoing, nothing in this article shall impede or prohibit the Alabama Department of Transportation from constructing, repairing, or maintaining any highway, road, or bridge or any other matter which falls within the jurisdiction of the Alabama Department of Transportation.

(Act 2000-589, p. 1076, §5.)

§ 23-1-295 Nomination of Potential Scenic Byways

The Advisory Council shall evaluate initial applications. Local governments in conjunction with the Advisory Council shall perform a field survey of the byway and score its qualities, with special attention paid to the scenic quality of the roadway. The following criteria and procedures shall be used for nominating potential scenic byways:

(1) Any road corridor shall have at least one of the following six intrinsic qualities to be nominated: Scenic, natural, cultural, historic, archaeological, and recreational.

(2) Each nomination shall be made and supported by a sponsor, including, but not limited to, any of the following: An historic preservation group, an environmental group, another nongovernmental organization, a local government, or an individual.

(3) The sponsor or sponsors of a potential scenic byway shall complete an application form and submit it to the Advisory Council.

(4) Special consideration or first priority shall be given the Alabama’s 10 Environmental Natural Wonders, Civil War, Native American, and Civil Rights sites, and the Robert Trent Jones Trail, due to their particular importance to Alabama’s scenic, historic, cultural, and recreational heritage. Special consideration or first priority shall also be given to counties with the highest unemployment rates and the slowest rates of economic growth. These sites shall go through the normal nomination procedure.

(5) Nominations shall be accepted on an ongoing basis, but shall be evaluated and passed on to the Designating Committee on a semi-annual basis, beginning one year from August 1, 2000.

(Act 2000-589, p. 1076, §6.)

Article 10 Federal Aid Highway Finance Authority

§ 23-1-300 Purpose and Construction of Article

(a) It is the intention of the Legislature by the passage of this article to authorize the incorporation of the Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer, and the Governor of Alabama for the purposes of establishing the program Roads and Bridges to Alabama’s Future and of anticipating and providing for the federal share of the cost of constructing federal aid projects and thus to accelerate the construction of such federal aid projects in the state by the issuance of the obligations of such corporation, which shall not be bonds or debts of the state but shall be payable solely from federal aid highway funds and the tax proceeds and investment income provided therefor by this article.

(b) This article shall be liberally construed in conformity with the said purpose.

(Acts 1976, No. 565, p. 764, §1; Acts 1981, No. 81-387, p. 574, §1; Acts 1988, No. 88-652, p. 1041, §1; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §1.)

§ 23-1-301 Definitions

When used in this article, the following words and phrases shall have the following respective meanings unless the context clearly indicates otherwise:

(1) AUTHORITY. The Alabama Federal Aid Highway Finance Authority, a public corporation and instrumentality of the state authorized to be organized under the provisions of this article.

(2) BOARD OF DIRECTORS. The board of directors of the authority.

(3) BONDS. The bonds, including refunding bonds issued to refund outstanding obligations, that in this article are authorized to be sold and issued by the authority.

(4) CORPORATION. The authority.

(5) HIGHWAY GASOLINE TAX. The excise tax levied under subdivision (1) of subsection (a) of Section 40-17-325, with the exception of those portions of the tax levied on aviation fuel and marine gasoline.

(6) LEGISLATURE. The Legislature of Alabama.

(7) NET GASOLINE TAX PROCEEDS. The entire proceeds from the highway gasoline tax less the cost of collection and less any refunds of the proceeds pursuant to the provisions of Article 12 of Chapter 17 of Title 40.

(8) NOTE. The authority’s promise to pay solely from the funds provided by this article which has a specified maturity date not later than three years after its date, which recites on its face that it is issued in anticipation of the sale by the authority of bonds and which is payable to the order of a named payee.

(9) OBLIGATIONS. Any bonds, temporary bonds or notes authorized by this article to be issued by the authority.

(10) STATE. The State of Alabama.

(11) STATE’S SHARE OF NET GASOLINE TAX PROCEEDS. The portion of the net gasoline tax proceeds allocated and appropriated for state highway purposes in Section 40-17-359, less such amounts as are allocated by such statute to other specific uses.

(12) TEMPORARY BOND. Any bond issued under this article which has a specified maturity date not later than three years after its date and which recites on its face that it is issued in anticipation of the sale by the authority of bonds.

(13) COST. As applied to any highway construction project, all costs of construction or acquisition of any part of any such highway construction project, including, but without limitation to, the costs of supervising, inspecting and constructing any such highway construction project and all costs and expenses incidental thereto, the costs of locating, surveying and mapping, resurfacing, restoration and rehabilitation, acquisition of rights-of-way, relocation assistance, elimination of hazards of railway-grade crossings, acquisition of replacement housing sites, acquisition, rehabilitation, relocation, and construction of replacement housing and improvements which directly facilitate and control traffic flow, including grade separation of intersections, widening of lanes, channelization of traffic, traffic-control systems and passenger loading and unloading areas, and any other cost of any federal aid projects which is to be repaid or reimbursed to the state by the United States of America pursuant to the written agreement provided for in Section 23-1-313.

(14) FEDERAL AID PROJECT. Any road, street, parkway, right of way, bridge, railroad crossing, terminal, drainage structure, sign, guardrail, structure, interstate, surface, resurface, shoulder, roadside, or any other work eligible for federal aid funding assistance under Title 23, Chapter 1, of the United States Code and applicable regulations.

(15) FEDERAL SHARE. That portion of the cost of any federal aid projects which is to be repaid or reimbursed to the state by the United States of America pursuant to the written agreement provided for in Section 23-1-313.

(Acts 1976, No. 565, p. 764, §2; Acts 1981, No. 81-387, p. 574, §2; Acts 1988, No. 88-652, p. 1041, §2; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §2; Act 2014-105, p. 169, §1.)

§ 23-1-302 Incorporation - Authorization

The Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer, and the Executive Secretary to the Governor may become a corporation with the powers and authorities provided in this article by proceeding according to the provisions of this article.

(Acts 1976, No. 565, p. 764, §3.)

§ 23-1-303 Incorporation - Application

(a) To become a corporation, the Director of Finance, the Director of Transportation, the Attorney General, the State Treasurer and the Executive Secretary to the Governor shall present to the Secretary of State of Alabama an application signed by them which will set forth:

(1) The name, official designation and official residence of each of the applicants;

(2) The date on which each applicant was inducted in the office and the term of office of each of the applicants;

(3) The name of the proposed corporation, which shall be Alabama Federal Aid Highway Finance Authority;

(4) The location of the principal office of the proposed corporation; and

(5) Any other matter relating to the proposed corporation which the applicants may choose to insert and which is not inconsistent with this article or the laws of the State of Alabama.

(b) The application shall be subscribed and sworn to by each of the applicants before an officer authorized by laws of the State of Alabama to take acknowledgments to deeds.

(c) The Secretary of State shall examine the application and, if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.

(Acts 1976, No. 565, p. 764, §4.)

§ 23-1-304 Incorporation - Certificate

(a) When the application has been made, filed and recorded as provided in Section 23-1-303, the applicants shall constitute a corporation under the name proposed in the application and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this article under the Great Seal of the State and shall record the same with the application.

(b) There shall be no fees paid to the Secretary of State for any work in connection with the incorporation or dissolution of the corporation so organized.

(Acts 1976, No. 565, p. 764, §5.)

§ 23-1-305 Corporation - Generally

(a) The members of the corporation shall be the Governor, the Director of Finance, the Director of Transportation, the Attorney General, and the State Treasurer and their respective successors in office.

(b) The Governor shall be the president of the corporation, the Director of Finance shall be the vice-president of the corporation, the Director of Transportation shall be the secretary of the corporation, and the State Treasurer shall be the treasurer of the corporation and shall act as custodian of its funds.

(c) The members of the corporation shall constitute all the members of the board of directors of the corporation, and any three members of said board of directors shall constitute a quorum for the transaction of business.

(d) Should any of said officials of the state die or should his term of office as Director of Finance, Director of Transportation , Attorney General, State Treasurer, or Governor, as the case may be, expire or should he resign therefrom, his successor in office shall take his place as a member, officer, and director of the corporation.

(e) No member, officer, or director of the corporation shall draw any salary in addition to that now authorized by law for any service he may render or any duty he may perform in connection with the corporation.

(f) All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the corporation and recorded in a substantially bound book. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.

(Acts 1976, No. 565, p. 764, §6; Act 2000-727, p. 1558, §3; Act 2014-105, p. 169, §1.)

§ 23-1-306 Corporation - Powers

The corporation shall have the following powers:

(1) To have perpetual succession by its corporate name unless sooner dissolved pursuant to Section 23-1-318.

(2) To commence actions and have actions commenced against it, provided, however, that the corporation shall be considered a public agency performing state governmental functions and shall be immune from suit based on its acts or omissions or those of its agents, servants, or employees to the extent the State of Alabama is so immune, and to prosecute and defend in any court having jurisdiction of the subject matter and of the parties. Venue shall be in the appropriate court of the county in which the principal office of the corporation is located.

(3) To have and to use a corporate seal and to alter the same at pleasure.

(4) To construct, reconstruct and relocate or to cause to be constructed, reconstructed and relocated federal aid projects, including work incidental or related thereto, in the State of Alabama.

(5) To acquire by purchase, gift or condemnation or any other lawful means or any combination of such means and to convey or cause to be conveyed to the State of Alabama any real, personal, or mixed property necessary or convenient in connection with the construction of federal aid projects and approaches thereto in the State of Alabama or the reconstruction or relocation of federal aid projects in said state.

(6) To exercise the right of eminent domain as freely and completely as, and in the same manner that, the State of Alabama is empowered to exercise such right.

(7) To borrow money for its corporate purposes and in evidence of such borrowing to sell and issue its obligations and to refund such obligations.

(8) To pledge the proceeds of the appropriations and pledges provided for in this article as security for payment of the principal of and the interest on its obligations.

(9) To appoint and employ such officers, attorneys and agents as the business of the corporation may require.

(10) To utilize all administrative services which may be provided by the State Department of Transportation .

(Acts 1976, No. 565, p. 764, §7; Acts 1981, No. 81-387, p. 574, §3; Acts 1988, No. 88-652, p. 1041, §3; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §4.)

§ 23-1-307 Bonds and Notes - Authorization for Issuance

The authority shall have the power and is hereby authorized and empowered to sell and issue its bonds in order to provide as soon as practicable the federal share of the cost of constructing federal aid projects in anticipation of the receipt by the state of such federal portions as they become available either during, upon or after completion of such construction. The authority shall have the power, in addition to any other powers granted in this article, to borrow money for temporary use for any of the purposes for which it is authorized by this article to issue bonds and, in evidence of such borrowing, to issue from time to time temporary bonds or notes. Any such temporary borrowing may be made in anticipation of the sale and issuance of bonds and in such event the principal proceeds from the sale of such bonds shall, to the extent necessary, be used for payment of the principal of and interest on the temporary bonds or notes issued in anticipation of the sale and issuance of such bonds. Subject to the provisions and limitations contained in this article, the authority may, from time to time, sell and issue refunding bonds for the purpose of refunding any matured or unmatured obligations of the authority issued under this article and then outstanding.

(Acts 1976, No. 565, p. 764, §8; Acts 1981, No. 81-387, p. 574, §4; Acts 1988, No. 88-652, p. 1041, §4; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §5.)

§ 23-1-308 Bonds and Notes - Form, Denominations, Terms, Redemption, Etc

Any obligations authorized by this article shall be in such forms and denominations and of such tenor and maturities, shall bear such rate or rates of interest payable and evidenced in such manner and may contain other provisions not inconsistent with this article as may be provided in the resolution or resolutions of the board of directors in which such obligations are authorized to be issued; provided, that none of the bonds shall have a maturity date later than 20 years after its date and none of the temporary bonds or notes shall have a maturity date later than three years after its date. The authority may at its election retain in the resolution or resolutions under which any obligation is issued an option to redeem all or any thereof at such redemption price or prices and after such notice or notices and on such terms and conditions as may be set forth in the said resolution or resolutions and as may be briefly recited in the face of such obligation with respect to which such option of redemption is retained.

(Acts 1976, No. 565, p. 764, §9; Acts 1981, No. 81-387, p. 574, §5; Act 2000-727, p. 1558, §6.)

§ 23-1-309 Bonds and Notes - Execution

The obligations authorized by this article shall be signed by the president or vice-president of the authority, as the board of directors shall designate, and attested by its secretary or an assistant secretary, as the board of directors shall designate; provided, that a facsimile of the signature of one but not of both of the said officers may be printed or otherwise reproduced on any of the obligations authorized by this article in lieu of their being manually signed. The seal of the authority shall be impressed on the bonds and temporary bonds authorized by this article; provided, that a facsimile of the said seal may be printed or otherwise reproduced in lieu of being manually impressed thereon.

(Acts 1976, No. 565, p. 764, §10; Acts 1981, No. 81-387, p. 574, §6; Act 2014-105, p. 169, §1.)

§ 23-1-310 Bonds and Notes - Issuance and Sale Generally

Obligations of the authority may be sold at either public or private sale in such manner and at such price or prices and at such time or times as may be determined by the board of directors to be most advantageous; provided, that none of the obligations may be sold for a price less than 97 percent of par or face value. Approval by the Governor of Alabama of the terms and conditions under which any of the obligations authorized by this article may be issued shall be requisite to their validity, which approval, signed by the Governor, shall be entered on the minutes of the respective meetings of the board of directors at which such obligations proposed to be issued are authorized. Neither a public hearing or consent by the state Department of Finance nor any other department or agency shall be a prerequisite to the issuance of any of the obligations. All obligations issued by the authority shall be exempt from the laws of the state governing usury or prescribing or limiting interest rates, including, but without limitation to, the provisions of Chapter 8 of Title 8 of this code, as it now exists and as it may at any time be amended.

(Acts 1976, No. 565, p. 764, §11; Acts 1981, No. 81-387, p. 574, §7.)

§ 23-1-311 Bonds and Notes - Source of Funds; Pledge of Funds for Payment of Principal and Interest Thereon; Negotiability

(a) The obligations authorized by this article shall not be general obligations of the authority, but shall be payable solely out of the funds appropriated and pledged in or permitted to be pledged pursuant to Sections 23-1-314 and 23-1-315.

(b) As security for the payment of the principal of and interest on the obligations issued by it under this article, the authority is hereby authorized and empowered to pledge for payment of the principal and interest the funds that are appropriated and pledged in or permitted to be pledged pursuant to Sections 23-1-314 and 23-1-315 for payment of principal and interest, and to pledge all of such funds or only certain of such funds for payment of principal and interest, all within the discretion of the authority.

(c) Any notes or temporary bonds issued under this article shall also be payable from the proceeds of any bonds in the anticipation of which such notes or temporary bonds are issued.

(d) All contracts made and all obligations issued by the authority pursuant to the provisions of this article shall be solely and exclusively the obligation of the authority and shall not be an obligation or debt of the state.

(e) Any obligation issued under this article, except bonds or temporary bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto, shall be construed to be negotiable instruments although payable solely from a specified source as provided in this article.

(Acts 1976, No. 565, p. 764, §12; Acts 1981, No. 81-387, p. 574, §8; Act 2014-105, p. 169, §1.)

§ 23-1-312 Bonds and Notes - Exemption from Taxation; Use as Security for Deposits; Eligibility as Investment for Fiduciary Funds

(a) Any obligations authorized by this article and the income therefrom shall be exempt from all taxation in the state.

(b) Any of the obligations authorized by this article may be used by the holder thereof as security for the deposit of any funds belonging to the state or to any instrumentality or agency of the state in any instance where security for such deposits may be required by law.

(c) Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of power, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest fiduciary funds in any of the obligations authorized by this article.

(Acts 1976, No. 565, p. 764, §13.)

§ 23-1-313 Bonds and Notes - Disposition of Proceeds from Sale

The authority shall pay out of the proceeds from the sale of the obligations authorized by this article all expenses that the board of directors may deem necessary and advantageous in connection with the sale and issuance thereof. The proceeds from the issue of any obligations authorized by this article, (i) except the proceeds of bonds which were issued to pay principal and interest of temporary bonds or notes and in anticipation of which such temporary bonds or notes shall have been issued, and (ii) except the proceeds of refunding bonds issued to refund any outstanding obligation, remaining after paying the expenses of their sale and issuance, shall be deposited in the State Treasury, shall be credited to the Road and Bridge Fund and shall be subject to be withdrawn by the authority, upon the approval of the State Department of Transportation and the Governor, but only for the purpose of paying the federal share of the cost of federal aid projects or work incidental or related to any such construction within the state (including the acquisition of property necessary for such construction and related work) to be repaid to the state by the federal government, and such proceeds shall be used for no other purpose. The proceeds from the sale of the obligations shall not be expended for any highway construction project until such time as the United States Secretary of Transportation or his or her designated representative shall have approved the design and location of the project, shall have formally stated in writing that such project will be eligible for federal aid matching funds when such funds become available and shall have entered into a written agreement providing for the repayment of such funds. Provided, however, in cases where the Federal Highway Administration has delegated the authority to the State Department of Transportation to approve the design, location, and programming of federal funds for certain federal aid projects or classes of projects, then the approval by the State Department of Transportation shall be sufficient. Proceeds of bonds issued to provide funds for payment of the principal of and interest on temporary bonds or notes issued in anticipation of the sale and issuance of such bonds shall be used solely for the purpose of paying the expenses of the sale and issuance of such bonds and the payment of the principal of and interest on such temporary bonds or notes. Proceeds of refunding bonds issued for the purpose of refunding any outstanding obligations of the authority remaining after payment of the expenses of their issuance shall be used solely for payment of the principal of and interest on such outstanding obligations of the authority and for paying any premium that may be necessary to be paid in order to redeem and retire the obligations to be refunded.

(Acts 1976, No. 565, p. 764, §14; Acts 1981, No. 81-387, p. 574, §9; Acts 1988, No. 88-652, p. 1041, §5; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §7; Act 2014-105, p. 169, §1.)

§ 23-1-314 Bonds and Notes - Payment Generally

(a) For the purpose of providing funds to enable the authority to pay at their respective maturities and due dates the principal of and interest on the obligations that may be issued by it under this article at any time after March 1, 2014, there hereby is irrevocably pledged and appropriated so much as shall be necessary for the purpose of the state’s share of net gasoline tax proceeds.

(b) In addition, for the purpose of providing funds to enable the authority to pay at their respective maturities and due dates the principal of and interest on the obligations that may be issued by it under this article, there hereby is irrevocably pledged and appropriated each year all federal aid funds for federal aid projects to be received by the State Department of Transportation from the United States government to the extent that such funds may be required to pay the principal of and interest on such obligations. All federal aid funds for federal aid projects received by the State Department of Transportation from the United States government during each such federal fiscal year shall be held in trust by the state and applied to the extent required to the payment of the principal of and interest on the obligations authorized to be issued under this article.

(c) No later than the date for payment of the principal of and interest on the obligations issued by the authority during each fiscal year, all monies hereby appropriated and pledged shall be paid into the State Treasury and shall constitute a sinking fund which shall be held in trust to be used to pay the principal of and interest on the obligations; provided, however, that the pledge of the state’s share of net gasoline tax proceeds shall be on parity with the pledge contained in Section 23-1-181 to secure obligations issued by the Alabama Highway Finance Corporation. As security for the payment of the principal of and interest on the obligations issued under this article, the authority is authorized to pledge the proceeds of the appropriation and pledge provided for in this section. All pledges made by the authority shall take precedence among themselves in the order of the adoption of the resolutions making such pledges, except as may be otherwise provided in such resolutions.

(Acts 1976, No. 565, p. 764, §15; Acts 1978, No. 583, p. 663; Acts 1981, No. 81-387, p. 574, §10; Acts 1988, No. 88-652, p. 1041, §6; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §8; Act 2014-105, p. 169, §1; Act 2022-122, §1.)

§ 23-1-315 Investment of Funds; Pledge of Interest from Investments

Any funds held as the proceeds of obligations issued by the authority under this article and any funds held by the State Treasurer in the sinking fund provided for the payment of such obligations shall be invested in obligations of the United States of America or in certificates of deposit secured by a deposit of obligations of the United States of America to the full amount of such certificates of deposit, and in investment agreements, repurchase agreements, or other investment arrangements fully collateralized by any of the foregoing, and the interest to be earned on such investment of funds may be pledged by the authority to the payment of the principal of and interest on the obligations issued by the authority under this article.

(Acts 1976, No. 565, p. 764, §16; Act 2014-105, p. 169, §1.)

§ 23-1-316 Payment by State Treasurer of Principal and Interest on Bonds and Notes; Maintenance of Records Pertaining Thereto

Out of the revenues appropriated and pledged and the sinking fund provided pursuant to Sections 23-1-314 and 23-1-315, the State Treasurer is authorized and directed to pay the principal of and interest on the obligations issued by the authority under this article at the respective maturities or due dates of said principal or interest, and he is further authorized and directed to set up and maintain appropriate records pertaining thereto.

(Acts 1976, No. 565, p. 764, §18.)

§ 23-1-317 Expenditure of Proceeds; Contracts; Rules and Regulations; Conveyance of Property

(a) If such action shall be necessary in order to comply with any federal legislation relating to federal aid in construction of roads and highways, the authority may authorize the State Department of Transportation to expend directly any portion of proceeds from obligations issued under this article for constructing, reconstructing and relocating federal aid projects or work incidental or related thereto.

(b) All contracts of the authority for the construction, reconstruction and relocation of federal aid projects, and work incidental or related thereto and the acquisition of property necessary therefor, shall be in writing, shall be subject to the rules and regulations and shall be let under the supervision of the State Department of Transportation and shall be subject to approval by the Governor and by the State Department of Transportation. All work provided for in any such contract shall be supervised by the State Department of Transportation.

(c) All persons engaged in the supervision or performance of any such work of construction, reconstruction or relocation that may be done by the authority without the award of a contract therefor shall be employees of the State Department of Transportation.

(d) The authority shall make and enforce all reasonable rules and regulations not inconsistent with the terms of this article or the laws of the State of Alabama as may, in its opinion, be proper and suitable for the protection of said federal aid projects and approaches and appurtenances thereto and for the safety of the traveling public; provided, however, that the above provisions shall apply only to the extent that they are not in conflict with any federal legislation, regulation or requirement relating to federal aid in federal aid projects construction.

(e) Any property acquired by the authority by purchase, condemnation or otherwise shall be forthwith conveyed to the State of Alabama.

(f) All federal aid projects constructed by the corporation shall constitute part of the public highway system in the state.

(Acts 1976, No. 565, p. 764, §17; Acts 1981, No. 81-387, p. 574, §11; Acts 1988, No. 88-652, p. 1041, §7; Acts 1992, No. 92-204, p. 495, §1; Act 2000-727, p. 1558, §9.)

§ 23-1-318 Dissolution

At any time when no securities of any kind of the authority, whether issued under this article or under authorization contained in any other act, are outstanding, the authority may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the members of the authority and which shall be sworn to by each such member before an officer authorized to take acknowledgments to deeds. Upon the filing of said application for dissolution, the authority shall cease and any property owned by it at the time of its dissolution shall pass to the State of Alabama. The Secretary of State shall file and record the application for dissolution in an appropriate book of record in his office and shall make and issue, under the Great Seal of the State, a certificate that the authority is dissolved and shall record the said certificate with the application for dissolution.

(Acts 1976, No. 565, p. 764, §19.)

Article 11 Rural Access Program

§ 23-1-330 Short Title

This article shall be known as the Rural Access Program Act (RAP).

(Acts 1995, No. 95-396, p. 807, §1.)

§ 23-1-331 Definitions

Where used in this article, the following words shall have the following meanings:

(1) BRIDGE REPLACEMENT. Bridge replacement includes the replacement of existing bridge structures and, if necessary, the realignment of the adjacent approaches. If the route is to be four-laned, it includes the construction of a new bridge for the two new lanes.

(2) CONSTRUCTION, CONSTRUCT, or CONSTRUCTING. The act of completing a project. The physical building of the roadway, bridges, and appendages thereto.

(3) COUNTY ROADS. All paved or unpaved public roads, including bridges, within a county on the county road system and continuing into or through the corporate limits of any city or town in a county which are not a part of the state highway system.

(4) DEPARTMENT OF TRANSPORTATION. That state department created by Section 23-1-20.

(5) OBLIGATION LIMIT. That point in obligating or budgeting funds for projects that the Transportation Director may not exceed by approving any additional funding for projects.

(6) PROJECT. An undertaking to construct a particular portion of a highway.

(7) RESURFACING, RESTORATION, and REHABILITATION (RRR). Work undertaken primarily to preserve an existing facility. Restoration and rehabilitation is considered to be work required to return the existing pavement or bridge deck, including shoulders, to a condition of adequate structural support or to a condition adequate for placement of an additional state of construction (bridge deck protective system or resurfacing). Resurfacing consists of the placement of additional surface material over the existing, restored, or rehabilitated roadway or bridge deck to improve service-ability or to provide additional strength. RRR work may include changes to geometric features, such as widening, flattening curves, or improving sight distances.

(8) TRANSPORTATION DIRECTOR. The chief executive officer of the Department of Transportation authorized by Section 23-1-21.

(9) UNOBLIGATED FUNDS. That portion of an appropriation which has not been encumbered by a project budget or a project budget overrun.

(Acts 1995, No. 95-396, p. 807, §2.)

§ 23-1-332 Creation; Revenue Sources; Allocation of Revenue; Use of Funds; Funds to Be Matched; Obligation Limitations; Role of Department; Unobligated Funds

(a) There is created within the state a program to be known as the Rural Access Program.

(b) The following revenues sources shall be allocated for use of the Rural Access Program.

(1) Motor fuel taxes distributed to the Department of Transportation and deposited in the Public Road and Bridge Fund under the provisions of Sections 40-17-13 and 40-17-222, in excess of 105 percent of the base year receipts, compounded annually. Fiscal year 1994-95 is the base year. Any motor fuel tax receipts that exceed 105 percent of the base year receipts compounded annually shall be allocated to the Rural Access Program for allocation to the 67 counties of the state.

(2) Other funds including, but not limited to, matching funds provided by counties.

(c) Allocation of the revenue received shall be as follows:

(1) Other funds shall be allocated and appropriated for the purposes for which they were received.

(2) Motor fuel taxes shall be allocated to the accounts of the 67 counties within the Rural Access Program by dividing 45.46 percent of the motor fuel tax receipts equally and the remaining 54.54 percent shall be allocated based on the ratio of the population of each county to the total population of the state according to the next preceding federal decennial census or any special federal census heretofore held in any county subsequent to the effective date of the 1990 Federal Decennial Census. The allocation provided for in this subsection shall be made by the Department of Transportation on or prior to the tenth day of each month with respect to receipts of motor fuel tax allocated to the Rural Access Program by the Department of Transportation during the preceding month.

(d) Funds allocated and appropriated for county roads shall be used to improve existing paved roads, to pave dirt roads, and for bridge replacement, but not for routine maintenance. Notwithstanding the foregoing, the portion of funds all counties may receive pursuant to subsection (c) shall be limited to 30 percent of the total amount of the base year receipts compounded annually pursuant to subdivision (1) of subsection (b).

(e) Funds allocated to each county in subsection (c) are for the purpose of improving existing paved county roads, paving dirt roads, and county bridge replacement.

(f) Appropriations for the Rural Access Program are capital outlay appropriations and do not revert at the end of the fiscal year, but shall remain in full force and effect until the purpose for which they were appropriated is either abandoned or completed.

(g) The cost of construction of county road projects shall be paid as follows: 20 percent of the cost shall be paid by the county from its own funds and 80 percent of the cost shall be paid from the funds allocated to the county pursuant to this section. The Transportation Director shall not cause a county project to be awarded to contract until the county share, 20 percent, of the project funding has been received by the Department of Transportation and the Rural Access Program share, 80 percent, has been allocated to the Rural Access Program.

(h) The county matching share for any federally funded county projects may be funded from funds allocated to the county in subdivision (2) of subsection (c) as follows: 50 percent from the Rural Access Program and 50 percent from funds available to the county from other sources.

(i) Each county shall not obligate any more than 90 percent of the current revenue from the year allocated and appropriated to that county plus any unobligated funds carried over from the previous years. The 10 percent reserve created by this obligation limit may be used to cover overruns when matched as provided in subsections (g) and (h).

(j) The Transportation Director shall have sole authority to promulgate rules and regulations for the operation of the Rural Access Program.

(k) The Department of Transportation under the direction of the Transportation Director shall specify design criteria for county projects.

(l) Any county, by proper resolution of its governing body, may make application to the Department of Transportation for aid in the construction of county roads. The Department of Transportation shall investigate and approve or disapprove the application. Upon approval of an application, the county engineer of the county so applying shall make a survey and prepare the plans and specifications at county expense as the Department of Transportation may require, and submit the plans and specifications to the Department of Transportation for approval.

(m) Any county to be eligible for aid under this article shall have a county engineer as provided by any general or local act under which a professional licensed engineer is employed and approved by the Department of Transportation.

(n) All construction and work done pursuant to this article and the purchase of materials and employment of labor shall be subject to periodic and final inspection, approval, and acceptance by the Department of Transportation. The county engineer shall have immediate supervision of the construction at the expense of the county.

(o) The county shall, at its own expense and without expense to the Department of Transportation, procure the right-of-way for the roads and the cost of right-of-way shall not be taken or considered as a part of the cost of construction. All deeds or other muniments or other evidence of title for right-of-way shall be filed and recorded in the office of the judge of probate of the county prior to the beginning of any construction of the roads.

(p) County projects shall be let to contract by the Department of Transportation.

(q) Each county may accumulate up to three fiscal years of revenue. At the end of each fiscal year any unobligated funds in excess of the past three fiscal years total revenue for each county shall be lost by that county. The funds shall be redistributed to all counties who have not lost funds for that fiscal year. The Transportation Director may extend the time period a county can accrue unobligated funds if it is being done for the purpose of accumulating funds for a major project.

(Acts 1995, No. 95-396, p. 807, §3.)

§ 23-1-333 County to Maintain Roads Constructed with Funds

Any county road constructed with Rural Access Program funds under this article shall be maintained by the county in which the road is located. At the time that an application for Rural Access Program funds in the construction of any county road or county roads is approved, the county shall make provisions for the maintenance of the road or roads thereafter in accordance with standards established by the Department of Transportation and shall enter into an agreement with the Department of Transportation pertaining thereto. In the event any county shall fail to maintain to the satisfaction of the Department of Transportation any county road constructed pursuant to this article, the Department of Transportation may thereafter decline to enter into further contracts pursuant to this article with the county so long as such failure on the part of the county continues.

(Acts 1995, No. 95-396, p. 807, §4.)

Article 12 Regulations of Aeronautics, Aircraft, and Airports Generally

§ 23-1-350 Purpose of Article

It is the purpose of this article to facilitate the development of aeronautics, promote safety in aeronautics, and provide a uniform mechanism for overseeing and regulating aeronautics within the state by repealing existing statutes establishing the Alabama Department of Aeronautics and the Alabama Aeronautics Commission and transferring their functions, authority, and organization to the Alabama State Department of Transportation.

(Act 2000-220, p. 328, §3.)

§ 23-1-351 Transfer of Property, Funds, Authority, and Jurisdiction to the State Department of Transportation

All matters of any nature whatsoever which have heretofore come under the authority, jurisdiction, or purview of, or have been administered, overseen, or executed by the Alabama Department of Aeronautics or the Alabama Aeronautics Commission, as well as all physical properties and funds allocated to or in the possession of the Alabama Department of Aeronautics or the Alabama Aeronautics Commission, are hereby transferred to the Alabama Department of Transportation. All real and personal properties and funds transferred pursuant to this article shall be used solely and exclusively for the purpose of executing the operations, functions, programs, and responsibilities of aeronautics as provided for in this article and for the general promotion of aeronautics in this state.

(Act 2000-220, p. 328, §4.)

§ 23-1-352 Definitions

For the purpose of the laws of this state relating to aeronautics, the following words, terms, and phrases shall have the meanings herein given, unless otherwise specifically defined, or unless another intention clearly appears or the context requires otherwise:

(1) AERONAUTICS or AERONAUTICAL ACTIVITIES. The science and art of flight including, but not limited to, transportation by aircraft; the operation, construction, repair, or maintenance of aircraft, aircraft power plants and accessories, including the use, repair, packing, and maintenance of parachutes; the design, establishment, construction, expansion, operation, improvement, repair, or maintenance of airports, restricted landing areas, or other air navigation facilities including the aerial and ground approaches thereto; and instruction in flying or ground subjects pertaining thereto.

(2) AERONAUTICAL INSTRUCTION. The imparting of aeronautical knowledge or information by any aeronautics instructor or in or by any flight school.

(3) AERONAUTICS INSTRUCTOR. Any individual engaged in giving instruction or offering to give instruction in aeronautics, either in flying or ground subjects, or both, pertaining to aeronautics. The term excludes any instructor in a public school, university, or institution of higher learning duly accredited and approved for carrying on collegiate work, who instructs in flying or ground subjects pertaining to aeronautics, only in the performance of the person’s duties at a school, university, or institution.

(4) AIRCRAFT. Any contrivance now known, or hereafter invented, used or designed for navigation of or flight through the air.

(5) AIRCRAFT, CIVIL. Any aircraft other than a public aircraft.

(6) AIRCRAFT, COMMERCIAL. Any aircraft engaged in carrying passengers or property for compensation or hire.

(7) AIRCRAFT MAINTENANCE PERSONNEL. Any person or persons who are in charge of, or perform under the supervision of others, the inspection, overhauling, or repair of aircraft and aircraft component parts who have a valid license, certificate, or permit issued by the United States government to be engaged in aeronautical activity.

(8) AIRCRAFT OPERATOR. Any person, including the one in command, and any pilot, mechanic, or member of the crew, who engages in the navigation of aircraft while underway.

(9) AIRCRAFT, PUBLIC. Any aircraft used exclusively in the service of any government or any political subdivision thereof, including the government of any state, territory, or possession of the United States, or the District of Columbia, or aircraft of any foreign nation friendly to the United States, but not including any government owned aircraft engaged in carrying persons or property for compensation or hire.

(10) AIRCRAFT FUEL. Any or all distillates, benzine, naptha, benzol, fuel oil, or other volatile and inflammable liquids, gases, or any device or substitute therefor produced, compounded, and used as the propellant for an aircraft.

(11) AIRCRAFT, OPERATION OF. The use of aircraft for the purpose of air navigation and includes the navigation or piloting of aircraft. Any person who causes or authorizes the operation of aircraft, whether with or without the right of legal control, in the capacity of owner, lessee, or otherwise, of the aircraft, shall be deemed to be engaged in the operation of aircraft within the meaning of state law.

(12) AIR NAVIGATION. The operation or navigation of aircraft in the airspace over the lands and waters of the State of Alabama.

(13) AIR NAVIGATION FACILITY. Any facility used in, available for use in, or designed for use in, the aid of air navigation, including airports, restricted landing areas, and any structures, mechanisms, lights, beacons, markers, communicating systems, or other instruments or devices, or similar or different thing, used or useful as an aid or constituting an advantage or convenience to the safe taking off, flight, and landing of aircraft, or the safe and efficient operation or maintenance of an airport or restricted landing area, and any combination of any or all of such facilities.

(14) AIRPORT. Any area of land, water, or of mechanical construction, except a restricted landing area, which is used, made available, or designed for the landing and takeoff of aircraft, whether or not the facilities are provided for shelter, servicing, or repair of aircraft or for receiving and discharging passengers or cargo and which meets the minimum requirements as to size, design, surfacing, marking, equipment, and management as provided by the Alabama State Department of Transportation and all appurtenant areas used or suitable for airport buildings or other airport facilities and all appurtenant rights-of-way, whether heretofore or hereafter established.

(15) AIRPORT AUTHORITY. The governing body of an airport or restricted landing area that has been formed pursuant to the laws of this state.

(16) AIRPORT HAZARD. Any structure, object of natural growth, or use of land which obstructs the airspace required for the flight of aircraft in landing or taking off at an airport or is otherwise hazardous to a landing or taking off.

(17) AIRPORT HAZARD AREA. Any area of land or water upon which an airport hazard might be established within the vicinity of an airport, restricted landing area, or air navigation facility, if not prevented as provided in this article.

(18) AIRPORT MANAGER. Any person who is properly appointed and designated by the airport owner to oversee the operations and maintenance of airports and who is made responsible to the airport owner for the supervision and operation of the airport.

(19) AIRPORT PROTECTION PRIVILEGES. Easements through or other interests in airspace over land or water, interests in airport hazard areas outside the boundaries of airports and restricted landing areas and other protection privileges, the acquisition or control of which is necessary to insure safe approaches to the landing areas of airports and restricted landing areas and the safe and efficient operation thereof.

(20) AIRPORT PURPOSES. The term includes airport, restricted landing area, and other air navigation facility purposes.

(21) AIRSPACE, NAVIGABLE. Space in the air over the lands and waters of the State of Alabama that is necessary for aircraft to safely travel through the air above the minimum altitudes of flight that may be prescribed by the State of Alabama or the laws, rules, and regulations of the United States government.

(22) CALENDAR YEAR. The 12-month period from January 1 through December 31.

(23) COMMERCIAL AVIATION. The carriage by aircraft of persons or property for compensation.

(24) COMMISSION. The Alabama Aeronautics Commission.

(25) DEPARTMENT. The Alabama State Department of Transportation.

(26) DIRECTOR. The Director of the Alabama State Department of Transportation.

(27) ENPLANEMENT. Each paying passenger who boards an aircraft for flight at a particular location, excluding through passengers.

(28) FEDERAL GOVERNMENT. The government of the United States of America.

(29) FLIGHT SCHOOL. Any person engaged in, giving, or offering to give instruction in aeronautics, either in flying or ground subjects, or both, for or without compensation, hire, or reward, and advertising, representing, or holding himself or herself out as giving or offering to give instruction. The term excludes any public school or university of this state or any institution of higher learning duly accredited and approved for conducting collegiate work.

(30) GROUND SUBJECTS, GROUND INSTRUCTION. A school or a course of instruction in aeronautical subjects, given in a classroom or shop in preparation for, or in the advancement of piloting and navigation of aircraft or of the manufacture, maintenance, and repair of aircraft and their component parts.

(31) MUNICIPALITY. Any city, town, or incorporated village in the State of Alabama.

(32) PASSENGER. Any person riding in an aircraft but having no part in its operation.

(33) PERSON. Any individual, association, partnership, firm, company, corporation, or other association of individuals, or body politic, including any trustee, receiver, assignee, or other similar representative thereof.

(34) PILOT. The term includes aviator, aeronaut, balloonist, and every other person having any part in the navigation of aircraft while in flight.

(35) POLITICAL SUBDIVISION. Any municipality of this state and any other political subdivision, public corporation, authority, or district in this state which is or may be authorized by law to acquire, establish, construct, maintain, improve, and operate airports, restricted landing areas, and other air navigation facilities.

(36) PUBLIC USE AIRPORT. Any area of land or water designed and set aside for the taking off and landing of aircraft and utilized or to be utilized in the interest of the public for such purposes.

(37) RESTRICTED LANDING AREA. Any area of land or water used for the taking off and landing of aircraft, but not limited to airports, the use and operation of which, in the interests of public health and safety, is restricted by the rules, regulations, and orders of the Alabama State Department of Transportation.

(38) RULES AND REGULATIONS. Any or all rules and regulations promulgated under this article by the Alabama State Department of Transportation or which may hereafter be promulgated by the department.

(39) STATE. The State of Alabama.

(40) STRUCTURE. Any object constructed by humans, including without limitation, buildings, towers, smokestacks, overhead transmission lines, or any similar thing.

(Act 2000-220, p. 328, §5.)

§ 23-1-353 Transfer of Personnel

The current Director of the Alabama Department of Aeronautics shall be transferred to the Alabama State Department of Transportation into a Merit System position classified as Aeronautics Administrator, which position shall be assigned an appropriate pay range by the State Personnel Board as set forth in the Merit System Act and personnel board regulations, but in no event shall compensation be less than at salary range 86. The current Executive Assistant of the Alabama Department of Aeronautics shall be transferred to the Alabama State Department of Transportation into a Merit System position classified as Aeronautics Specialist, which position shall be assigned an appropriate pay range by the State Personnel Board as set forth in the Merit System Act and personnel board regulations, but in no event shall compensation be less than at salary range 75. The State Personnel Department shall take all necessary action to create and establish the positions within the state merit classification system. All other full-time personnel of the Alabama Department of Aeronautics and the Alabama Aeronautics Commission created pursuant to Section 4-2-30, shall be transferred to the Alabama State Department of Transportation in their current classifications. All transferred personnel shall be covered by the state Merit System and entitled to all privileges and responsibilities as other Merit System employees, and their service and removal shall be subject to the state Merit System rules and regulations.

(Act 2000-220, p. 328, §6.)

§ 23-1-354 Aeronautics Commission - Composition; Qualifications; Appointment; Terms of Office; Compensation; Removal

The Alabama Aeronautics Commission, previously created pursuant to Section 4-2-30, shall serve in an advisory capacity to the Director of the Alabama State Department of Transportation. The commission shall consist of the Secretary of the Alabama State Law Enforcement Agency, the Secretary of the Alabama Department of Commerce, and 12 members representing each congressional district appointed by the Governor. The Governor shall appoint the remaining five additional members, for a term of four years, a representative from the air carrier airport boards. The 12 members of the commission serving on May 13, 2000, shall continue to serve for the remainder of their terms of office as designated by the Governor at the time of their original appointment. Successor appointees shall serve for terms of four years in the same manner as their predecessors, except that any person appointed to fill a vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed shall be appointed only for the remainder of such term. Each member shall serve until the appointment of his or her successor. The members of the commission appointed by the Governor shall be citizens and bona fide residents of Alabama qualified by their knowledge of, and experience and interest in, aeronautics. At least two of the members shall be or shall have been experienced private, commercial, civil, or military aircraft pilots having had not less than 200 hours of solo flying. Members of the commission appointed by the Governor shall be paid in the amount of fifty dollars ($50) per day for each day they are engaged in the performance of their duties as commission members, but no member of the commission may receive more than twelve hundred dollars ($1,200) for such services in any one fiscal year. Reimbursement for mileage expenses shall be in accordance with state law and the rules and regulations of the department. The members of the commission serve at the pleasure of the Governor and may be removed by the Governor for inefficiency, neglect of duty, misuse of office or malfeasance in office, or for other good and just cause.

(Act 2000-220, p. 328, §7.)

§ 23-1-355 Aeronautics Commission - Responsibilities

The commission shall serve in an advisory capacity to the Director of the Alabama State Department of Transportation and shall have the responsibility to advise the director in all phases of aeronautics and other matters that seriously affect aeronautical interests within the state.

(Act 2000-220, p. 328, §8.)

§ 23-1-356 Aeronautics Commission - Meetings; Election of Officers

(a) The commission shall hold a regular annual meeting on the second Tuesday in June at a time and place designated by the director. Additional meetings of the commission may be held as the needs of aeronautics may require at a time and place specified by the director. The director shall give written notice of all regular and special meetings to each commission member by mailing a notice seven days prior to the meeting date to each commission member at his or her known address. At all regular and special meetings of the commission, no action shall be taken by less than a majority of the commission. All regular and special meetings of the commission shall be open to the public and seven days’ notice thereof shall be made to all persons who have signified in writing to the director their desire to receive notices by mailing to their last known address a written notice of meetings.

(b) At the regular annual meeting, the commission shall elect from among its members, a chair, vice-chair, and a secretary, each to serve for one year.

(Act 2000-220, p. 328, §9.)

§ 23-1-357 Department - General Supervision Over Aeronautics; Cooperation with Federal Government and Political Subdivisions of the State; Promulgation of Rules and Regulations

(a) The department shall have general supervision over all phases of aeronautics within the state pertaining to the planning and development of the state airport system plan and the inspection, acquisition, establishment, construction, expansion, improvement, maintenance, management, and operation of airports, restricted landing areas, and other air navigation facilities.

(b) The department shall cooperate with and assist the federal government, the political subdivisions of this state, and others engaged in aeronautics or in the promotion of safe aeronautical practices and shall seek to coordinate the aeronautical activities of these bodies. It shall assist in the development of aeronautics and aeronautical facilities within the state for the purpose of safeguarding the interest of the general public and those engaged in all phases of aeronautics.

(c) The department may perform such acts, issue and amend such orders, and make, promulgate, or amend general or special rules, regulations, and procedures and establish minimum standards, consistent with the provisions of this article as it shall deem necessary to carry out the provisions of this article and to perform its duties hereunder, all commensurate with and for the purpose of protecting and insuring the general public interest, health, welfare, and safety.

(Act 2000-220, p. 328, §10.)

§ 23-1-358 Director - Powers and Duties Generally

In addition to all other responsibilities prescribed for the department by this article, the director shall have the following powers and duties with respect to aeronautics activities within this state:

(1) Cooperate with the United States government and any agency or department thereof in the acquisition, construction, improvement, maintenance, and operation of airports and other air navigation facilities in this state.

(2) Comply with the provisions of the laws of the United States and any rules or regulations made thereunder for the expenditure of federal monies upon airports and air navigation facilities.

(3) Enter or authorize the entering of land for the purpose of making surveys, inspections, and examinations relative to the establishment, construction, expansion, improvement, operation, and general safety of airports, restricted landing areas, and other air navigation facilities.

(4) Acquire easements through or other interests in airspace, land, or water in order to provide unobstructed airspace for the landing and taking off of aircraft utilizing airports and restricted landing areas acquired or operated under the provisions of this article and other airport protection privileges as are necessary to insure safe approaches to the landing areas of airports and restricted landing areas and the safe and efficient operation thereof.

(5) Enter into any contracts necessary to the execution of the powers granted under this article. Contracts shall be made pursuant to the laws of this state governing contracts, provided, however, that where the acquisition, construction, improvement, maintenance, and operation of any airport, restricted landing area, or other air navigation facility is financed wholly or partially with federal monies, the contracts shall be made in the manner prescribed by the federal authorities, acting under the laws of the United States and any rules or regulations made thereunder, notwithstanding any other state law to the contrary.

(6) Acquire or dispose of any personal or real property, such as airports, restricted landing areas, or any other air navigation facilities by sale, lease, or otherwise, in accordance with state laws governing the disposition of property of the state and in accordance with any restrictions that may be imposed upon property, airport, restricted landing area, or other navigation facility by the United States government. All proceeds from the disposal of any real property acquired in accordance with this section shall be deposited into the appropriate fund established by this article and used solely and exclusively for the purpose of promoting aeronautics or for funding the construction, improvement, expansion, maintenance, operation, or preservation of airports, restricted landing areas, or other air navigation facilities.

(7) Prepare a report to the Governor to be included in the department’s annual report. The report shall contain a summary of the activities of aeronautics within the state during the preceding year, a summary of all revenues and expenditures made by the department pertaining to aeronautics activities in the state, other information as the director may deem necessary, and any additional information which may be requested by the Governor.

(Act 2000-220, p. 328, §11.)

§ 23-1-359 Authority and Procedure for Adoption of Rules and Regulations

(a) The department may adopt all reasonable and necessary rules and regulations to carry out the provisions of this article.

(b) The rules and regulations previously promulgated by the Alabama Department of Aeronautics and the Alabama Aeronautics Commission pursuant to authority granted under Section 4-2-37, shall upon May 13, 2000, become a part of the administrative regulations of the Department of Transportation with such amendments as necessary to comply with the provisions of this article.

(Act 2000-220, p. 328, §12.)

§ 23-1-360 Financial and Technical Assistance to Municipalities in Connection with Acquisition, Construction of Airports, Landing Fields, or Other Navigational Facilities

The department pursuant to appropriations made for aeronautics and aeronautical activities, may render financial assistance, and, insofar as is reasonably possible, may offer engineering or other technical services of the department to any municipality or airport authority in connection with the acquisition, construction, expansion, maintenance, or operation, or proposed acquisition, construction, expansion, maintenance, or operation, of any public airport, restricted landing area, or other air navigation facilities.

(Act 2000-220, p. 328, §13.)

§ 23-1-361 Authority to Accept and Receive Federal Funds for State Acquisition, Construction, Etc., of Airports and Other Navigational Facilities; Authority to Act as Agent of Municipalities for Same Purpose; Terms and Conditions for Disbursement of Federal Funds

(a) The department may accept, receive, and receipt for federal and other monies, for and on behalf of the state, any municipality, county, or airport authority thereof, for the acquisition, construction, expansion, improvement, maintenance, or operation of airports and other air navigation facilities, whether the work is done by the state, or by municipalities, counties, or airport authorities, or jointly, aided by grants of aid from the United States, upon the terms and conditions prescribed by the United States and any rules or regulations made thereunder.

(b) The department shall act as the agent for each municipality, county, and airport authority for the purpose of applying for, receiving, and disbursing federal funds made available pursuant to the provisions of the Airport and Airway Development Act of 1970, 49 U.S.C. § 1701 et seq., as amended, unless a municipality, county, or airport authority owns an airport having a minimum of 10,000 originating enplanements in a calendar year on regularly scheduled airline carriers as certified by the Federal Aviation Administration, in which event the municipality, county, or airport authority may act as principal with respect to any airport owned by it, or it may designate the department as its agent for the purpose aforementioned.

(c) All funds received by the department from the United States government shall be deposited in the State Treasury to be kept and disbursed in a manner consistent with the provisions of this article and with federal requirements.

(d) All monies accepted for disbursement by the department pursuant to this section shall be deposited in the State Treasury, and, unless otherwise prescribed by the authority from which it is received, shall be kept in separate funds, designated according to the purposes for which monies were made available and held by the state in trust for such purposes. All monies are hereby appropriated for the purposes for which the same were made available, to be expended in accordance with applicable laws and regulations and with this article. The department may, whether acting for the state or as the agent of any of its municipalities, counties, or airport authorities, or when requested by the United States government or any agency or department thereof, disburse monies for the designated purposes, but this shall not preclude any other authorized method of disbursement.

(Act 2000-220, p. 328, §14.)

§ 23-1-362 Authority to Audit Financial Records of Municipality, County, and Airport Authority Receiving Funds

The department may audit the financial records of any municipality, county, and airport authority which receives any of the funds appropriated or allocated by the state insofar as may be necessary to determine that the funds are used solely and exclusively for the purpose of improving, maintaining, or preserving the state airport system in the state and for no other purpose. In the event any municipality, county, or airport authority refuses the department or its representative’s right to make an audit, or in the event any municipality, county, or airport authority has misused funds, the department may direct the withholding of any further distribution of state funds to a municipality, county, or airport authority until a time as it has reimbursed and restored to the state the amount misused. The State Treasurer, Director of Finance, and the Commissioner of Revenue shall comply with any withholding orders issued by the department under this section.

(Act 2000-220, p. 328, §15.)

§ 23-1-363 Authority to Receive Grants, Donations, Loans, Etc., Disposition of Same for General Promotion, Advancement, of Aeronautics

The department may receive grants, donations, gifts, and loans of funds, monies, equipment, materials, and services from any state, county, or municipal governments or any agencies thereof, or from any other person, and the department shall keep a record of all grants and donations. The department may expend the funds solely and exclusively for the general promotion, advancement, and safety of aeronautics and for the construction, improvement, expansion, or maintenance of public use airports or other air navigation facilities or services in the state, which shall include the joint establishment or provision of aeronautical facilities in cooperation with other state or federal departments or with other political subdivisions of the state, separately or together.

(Act 2000-220, p. 328, §16.)

§ 23-1-364 State Airports Development Fund

A fund known as the State Airports Development Fund is hereby created. The following shall be deposited in the fund to the credit of the department:

(1) The revenue received from all taxes levied on aircraft fuel and other aeronautical facilities or services or persons engaged in aeronautical activities.

(2) All other funds appropriated or allocated by the state specifically for the engineering, construction, expansion, improvement, maintenance, and operation of airports either alone or jointly with municipalities, counties, or airport authorities of the state or with the federal government, or both.

(3) The proceeds from the sale of all bonds which may be issued for the aforementioned purposes.

(4) Any grants and donations received pursuant to Section 23-1-361.

(Act 2000-220, p. 328, §17.)

§ 23-1-365 Disposition and Disbursement of State Airports Development Fund and Other Funds

All monies deposited into the State Airports Development Fund shall be expended for the purposes for which the monies are allocated in accordance with this article. In addition to the State Airports Development Fund, other special funds shall be created into which shall be deposited any and all federal grants-in-aid funds which may be allocated to the state for airport development or other aeronautical purposes, which funds shall be handled and accounted for in the manner prescribed by the United States government and its appropriate agencies.

(Act 2000-220, p. 328, §18.)

§ 23-1-366 Disbursement of State Appropriated Funds; Exception as to Funds Deposited in Surplus Military Fields Fund

(a) The distributions, expenditures, withdrawals, and disbursements of any state appropriated funds in the State Treasury to the credit of, or under the supervision and control of, the department as specified by this article shall be only in the amounts and for the purpose as provided in the general appropriation bill, and any and all expenses incurred by the department in the administration of laws, rules, and regulations pertaining to aeronautics shall be budgeted, allotted, and expended pursuant to Article 4 of Chapter 4 of Title 41.

(b) Subsection (a) shall not be construed to apply to any funds deposited into the Surplus Military Fields Fund pursuant to any sale or lease of property deeded to the state by the United States of America. The use of funds shall be governed by any restrictions or agreements imposed by the government of the United States or its appropriate agencies. The director shall determine the amounts and in which depositaries to invest the funds. All interest or revenues accruing from investments shall be used only for acquiring, constructing, expanding, improving, or maintaining the state airport system but within the restrictions imposed by the United States government. Any income or revenues from the sale or lease of any real property of any military airport surplus land shall be deposited into the Surplus Military Fields Fund.

(c) The sale or lease of any real property of any military airport surplus land shall be accomplished in compliance with any restrictions imposed by, or agreements with, the United States government, and the laws of this state.

(Act 2000-220, p. 328, §19.)

§ 23-1-367 Enforcement of Aeronautics Law; Enforcement Powers Generally

It shall be the duty of the director, and every state, county, and municipal officer charged with the enforcement of state and municipal laws to enforce and assist in the enforcement of this article and of all rules and regulations issued pursuant thereto and of all other laws of this state relating to aeronautics. The director may, in the name of the state, enforce the provisions of this article and the rules and regulations issued pursuant thereto by injunction in the courts of the state. The director may use the facilities and services of other agencies of the state to the utmost extent possible, and agencies are authorized and directed to make available the facilities and services.

(Act 2000-220, p. 328, §20.)

§ 23-1-368 Investigations; Administration of Oaths; Subpoena of Witnesses; Enforcement of Subpoena

The director may conduct investigations and hold inquiries relating to this article. All investigations conducted shall be open to the public. The director may administer oaths and affirmations, certify official acts, issue subpoenas, and compel the attendance and testimony of witnesses and the production of papers, books, and documents. In case of failure to comply with any subpoena or order issued under the authority granted by this article, the director may invoke the aid of any circuit court of the state. The court may order the witness to comply with the requirements of the subpoena or order or to give evidence relating to the matter in question. Any failure to obey the order of the court may be punished by the court as contempt thereof.

(Act 2000-220; p. 328, §21.)

§ 23-1-369 Reports of Investigations; Limitations on Use; Prohibitions Against Compulsion of Testimony

Notwithstanding any other provision of law to the contrary, in order to facilitate the making of investigations by the director in the interest of public safety and promotion of aeronautics, the public interest requires, and it is therefore provided, that the reports of investigations or hearings or any part thereof shall not be admitted in evidence or used for any purpose in any suit, action, or proceeding growing out of any matter referred to in the investigation, hearing, or report thereof, except in case of criminal proceedings instituted on behalf of the department or of the state under this article and other laws of the state relating to aeronautics, nor shall the director or any officer or employee of the department be required to testify to any facts ascertained in, or information gained by reason of, his or her official capacity, or be required to testify as an expert witness in any suit, action, or proceeding involving any aircraft or air navigation facility. Subject to the foregoing provisions, the director may make available to appropriate federal and state agencies information and material developed in the course of hearings and investigations.

(Act 2000-220, p. 328, §22.)

§ 23-1-370 Intervention in Certain Controversies

The department may participate as a party plaintiff or defendant, or as an intervener on behalf of the state or any municipality or citizen thereof, in any controversy concerning any claimed encroachment by the federal government or any foreign state upon any state or individual rights pertaining to aeronautics.

(Act 2000-220, p. 328, §23.)

§ 23-1-371 Formulation, Adoption, of Aircraft Approach Plans; Airspace Reservations

(a) The Legislature finds that an airport hazard endangers the lives and property of the general public, the users of airports, and the occupants of land in their vicinity, and reduces the size of the area available for the landing, taking off, and maneuvering of aircraft, thus tending to destroy or impair the utility of the airport and the public investment therein. Accordingly, the creation, establishment, or maintenance of an airport hazard is a public nuisance and harms the community served by the affected airport; it is therefore necessary in the interest of the public health and safety and general welfare that the creation or establishment of airport hazards be prevented and both the prevention of the creation or establishment of airport hazards and the elimination, removal, alteration, mitigation, abatement, or marking or lighting of existing airport hazards are public purposes for which political subdivisions may raise and expend public funds and acquire land or property rights therein.

(b) The department shall formulate, adopt, and revise airport approach plans for each public use airport in this state. Each airport approach plan shall determine and indicate the circumstances in which structures and trees are airport hazards, the airport hazard area within which measures for the protection of the airport’s aerial approaches should be taken, and what the height limits and other objectives of measures should be taken. In adopting or revising a plan, the department shall consider, among other factors, the character of the flying operations to be conducted at the airport, the nature of the terrain, the height of existing structures and trees above the elevation of the airport, and the possibility of lowering or removing existing structures that create an airport hazard. The department may obtain and consider the views or findings of the agency of the federal government charged with the fostering of civil aeronautics, as to the aerial approaches necessary to the safe flying operations at the airport.

(c) In the interest of protecting the public health and safety and general welfare, the department may declare or set aside airspace reservations over specific land and water areas.

(Act 2000-220, p. 328, §24.)

§ 23-1-371.1 Advanced Air Mobility

(a) For the purposes of this section, the following terms have the following meanings:

(1) POWERED-LIFT AIRCRAFT. A heavier-than-air aircraft capable of vertical takeoff, vertical landing, and low speed flight that depends principally on engine drive lift devices or engine thrust for lift.

(2) VERTIPORT. An area of land or water, or a structure, used or intended to be used for the takeoff or landing of powered-lift aircraft.

(b) The Department of Transportation shall do all of the following:

(1) Develop a statewide plan to include vertiports, electric aviation charging, and the infrastructure needs of other advances in aviation technology. No existing state revenues accruing to the department in the Public Road and Bridge Fund, the Rebuild Alabama Fund, or other state revenues used for the purpose of matching federal funds shall be used for the purpose of developing or updating this statewide plan.

(2) Designate a liaison for advanced air mobility within the department as a resource for local and regional jurisdictions navigating advances in aviation technology.

(3) Coordinate with experts in the public and private sector to provide local and regional jurisdictions with educational and technical resources to support uniform planning and zoning language across the state regarding powered-lift aircraft, electric aviation, and other advances in aviation technology. No existing state revenues accruing to the department in the Public Road and Bridge Fund, the Rebuild Alabama Fund, or other state revenues used for the purpose of matching federal funds shall be used for the purpose of providing local or regional jurisdictions with educational or technical resources to support uniform planning or zoning language across the state.

(c)(1) Except as otherwise provided by law, a political subdivision of this state, other than an airport operator, shall not enact any law, ordinance, regulation, or rule relating to advanced air mobility.

(2) An airport operator may only enact a law, rule, regulation, or ordinance relating to advanced air mobility that applies within the geographical boundaries over which the airport operator has authority.

(Act 2024-396, §1.)

§ 23-1-372 Approval of Sites and Licensing of Airports

(a) The Legislature finds that airports, restricted landing areas, and other air navigation facilities shall be suitable for the purposes for which they are designated and licensed, and the advantages of uniform regulation make it desirable that airports, restricted landing areas, and other air navigation facilities shall be constructed and maintained in conformity, as nearly as may be, with current federal laws, rules, and regulations governing civil aeronautics in the United States.

(b) The department shall approve sites for airports and restricted landing areas, and shall license airports, restricted landing areas, and air navigation facilities in accordance with this article and the rules and regulations promulgated by the department at the recommendation of the commission. The licenses issued shall be renewed annually by the department. Licenses granted to airports, restricted landing areas, and other air navigation facilities prior May 13, 2000, and pursuant to Section 4-2-72 and Section 4-2-73, shall remain in force, subject to renewal by the department. Licenses shall be granted for airports and restricted landing areas which were being actively operated on July 9, 1945, without the requirement of a certificate of approval, unless the department determines that the operation of an airport or restricted landing area is hazardous to persons operating, using, or traveling in aircraft, or to persons and property on the ground. The department shall not charge a fee for site approval certificates of proposed property acquisitions for airport or restricted landing area purposes or for the issuance of original licenses or renewals thereof for airports or restricted landing areas.

(Act 2000-220, p. 328, §25.)

§ 23-1-373 Certificate of Approval or License for Airport, Landing Field - Standards for Issuance

In determining whether to issue a certificate of approval or license for any proposed airport or restricted landing area, the director may consider proposed location, size, and layout, the relationship of the proposed airport or restricted landing area to other airports that may exist in the area and to a comprehensive plan for statewide and nationwide airport development, whether there are safe areas available for expansion purposes, whether the adjoining area is free from obstructions or airport hazards based upon appropriate aircraft performance characteristics, and the nature of the terrain, the estimated cost of preparation of the land and the airport’s approach and departure paths, and the nature of the uses to which the proposed airport or restricted landing area will be put subject to the possibilities for other future aeronautical development.

(Act 2000-220, p. 328, §26.)

§ 23-1-374 Revocation, Refusal to Issue or Renew License; Procedure for Review Under the Alabama Administrative Procedure Act

In any case where the director refuses to issue a certificate of approval, license, or renewal of license for an airport, restricted landing area, or other air navigation facility, or refuses to allow any aircraft to be operated, or in any case where the director shall issue any order requiring certain things to be done, or revoking any license or certificate, the director shall set forth the reasons therefor and shall state the requirements to be met before approval will be given, license granted, or order modified or changed. Any order made by the director pursuant to this article shall be delivered either in person or by certified mail, return receipt requested, to the interested persons. Any person aggrieved by an order of the director may request a hearing pursuant to the Alabama Administrative Procedure Act, Section 41-22-1, et seq. A hearing shall be requested within 30 days after receipt of the order. If no timely request for a hearing is made, the order of the director shall be final. Any appeal from a final order of the director shall be made to the Circuit Court of Montgomery County and shall be governed by the provisions of the Alabama Administrative Procedure Act.

(Act 2000-220, p. 328, §27.)

§ 23-1-375 Operation of Airport, Landing Field, Without License Prohibited; Application for Certificate of Approval of Proposed Airport or Landing Field; Limitation of Operations Conducted on Licensed Airport

(a) Except as otherwise provided in this article, a person or a municipality, officer, or employee of a municipality may not operate an airport, restricted landing area, or other air navigation facility without a license issued by the department. All proposed airports, restricted landing areas, and other air navigation facilities shall be licensed by the department prior to use and operation. Any municipality, county, airport authority, or person acquiring property for the purpose of constructing or establishing an airport or restricted landing area shall, prior to acquisition, apply to the department for a certificate of approval of the site selected and the general purpose or purposes for which the property is to be acquired, to insure that the property and its use conform to minimum standards of safety and serve the public interest. The operations conducted on a licensed airport may be limited by the department to an extent consistent with the public interest, health, safety and welfare, and any other factors deemed relevant by the director.

(b) Airport licenses issued in accordance with this article shall be prominently displayed in the principal administrative office, hangar, or other building at the airport at all times.

(Act 2000-220, p. 328, §28.)

§ 23-1-376 Authority to Conduct Public Hearings in Considering Application for Approval of Airport

The director may conduct public hearings for the purpose of gathering information and public comment on the consideration of an application for approval of an airport or a restricted landing area, or an original license to use or operate an airport, restricted landing area, or other air navigation facility. Notice of any public hearing shall be published not less than 15 days prior to the date of any public hearing in a newspaper of general circulation in Montgomery County, Alabama, or county seat of the county in which the proposed airport, restricted landing area, or other air navigation facility is proposed to be situated. The notice of public hearing shall provide the date, time, and place of public hearing, a statement of the purpose of the public hearing and notice that any interested party shall be provided an opportunity to make comments, either for or against, the matters to be considered at the public hearing.

(Act 2000-220, p. 328, §29.)

§ 23-1-377 Exceptions

(1) PERSONAL USE. Sections 23-1-371, 23-1-372, 23-1-373, 23-1-375, 23-1-376, and 23-1-382 shall not apply to restricted landing areas on private property, designated for the use of the property owner and his or her immediate family.

(2) UNITED STATES GOVERNMENT. Sections 23-1-371, 23-1-372, 23-1-373, 23-1-375, 23-1-376, and 23-1-382 shall not apply to any airport, restricted landing area, or other air navigation facility owned or operated by the United States government within this state.

(Act 2000-220, p. 328, §30.)

§ 23-1-378 Acquisition, Construction, Operation of Airports, Facilities, Power of Condemnation Generally

(a) The department may on behalf of and in the name of the state, within the limitation of appropriations or other funds available, acquire, by purchase, gift, devise, lease, condemnation proceedings or otherwise, property, real or personal, for the purpose of establishing and constructing airports, restricted landing areas, and other air navigation facilities and to acquire, own, control, establish, construct, enlarge, improve, maintain, equip, operate, regulate, and police airports, restricted landing areas, and other air navigation facilities within the state; make investigations, surveys or plans prior to any acquisition; and erect, install, construct, and maintain at airports facilities for the servicing of aircraft and for the comfort and accommodation of air travelers.

(b) The department may not acquire, or take over any airport, restricted landing area, or other air navigation facility owned or controlled by a municipality, county, or airport authority of the state, or person, without the consent of the municipality, county, airport authority, or person. The department shall not condemn lands as described in subsection (a) within the police jurisdiction of cities with a population of 7,500 persons or less, when suitable lands for its purposes may be obtained by purchase, nor shall the right of condemnation be exercised as to any lands within the police jurisdiction of any city or town except after a resolution approving the proposed condemnation has been adopted by the governing body of the city or town. The right of condemnation conferred by this article shall not be exercised as to lands within two statute miles of the corporate limits of any city or town of 6,000 population or less, nor within four statute miles of the corporate limits of any city or town of more than 6,000 population.

(c) The right of entry on any lands condemned under this section shall not exist until the condemned lands have been paid for in full, except where all the parties in interest agree otherwise.

(d) The department may erect, equip, operate, and maintain on any airport the buildings and equipment necessary and proper to establish, maintain, and conduct airport and air navigation facilities connected therewith. The department shall not grant exclusive right for the use of any state-owned airport, restricted landing area, or other air navigation facility. This section shall not prevent the making of leases in accordance with this article.

(Act 2000-220, p. 328, §31.)

§ 23-1-379 Acquisition of Easements and Other Airport Protection Privileges

Where necessary, in order to provide unobstructed airspace for the landing and taking off of aircraft utilizing airports and restricted landing areas acquired or operated under this article, the department may acquire, in the same manner as provided in Section 23-1-378, easements through or interests in airspace over land or water, interests in airport hazard areas outside the boundaries of the airports or restricted landing areas, and other airport protection privileges as necessary to insure safe approaches to the landing areas of airports and restricted landing areas and the safe and efficient operation thereof. The department may acquire, in the same manner, the right or easement, for a term of years or perpetually, to place or maintain suitable marks for the daytime marking and suitable lights for the nighttime marking of airport hazards, including the right of ingress and egress to or from airport hazards for the purpose of maintaining and repairing lights or marks. The authority granted to the department shall not be construed to limit the right, power, or authority of the state or any municipality to zone property adjacent to any airport or restricted landing area pursuant to any law of this state now existing or hereafter enacted.

(Act 2000-220, p. 328, §32.)

§ 23-1-380 Exercise of Power of Eminent Domain

For purposes of acquiring any property, the department may exercise the right of eminent domain, in the name of the state, pursuant to Chapter 1A, Title 18. The fact that the property needed has been acquired by the owner under the power of eminent domain shall not prevent the property’s acquisition by the department by the exercise of the right of eminent domain herein conferred. For purposes of making surveys and examinations relative to any condemnation proceedings, it shall be lawful to enter upon any land, doing no unnecessary damage. Notwithstanding the provisions of any other statute or the charter of any municipality, the department may take possession of any property to be acquired at any time after the filing of the petition describing the same in condemnation proceedings. It shall not be precluded from abandoning the condemnation of any property in any case where possession thereof has not been taken.

(Act 2000-220, p. 328, §33.)

§ 23-1-381 Lease of Property, Airports or Space, Improvements, for Aeronautical Purposes; Airport Concessions

The department may lease for operation for a term not exceeding 30 years, state-owned airports or other air navigation facilities or real property acquired or set apart for airport purposes to any person, municipality, county, airport authority, state government agency or to the federal government or agency thereof. The department may lease or assign for a term not exceeding 30 years to a person, municipality, county, airport authority, state government body, or the federal government, or to any agency of either thereof, for operation or use consistent with this article, space, area, improvements or equipment on an airport; may sell any part of an airport or other air navigation facilities to a municipality or state government, or to the United States government or any agency or instrumentality thereof, for aeronautical purposes or purposes incidental thereto. The department may confer the privileges of concessions of supplying upon the airports goods, commodities, things, services, and facilities; provided, that in each case in so doing, the public is not deprived of its rightful, equal, and uniform use thereof.

(Act 2000-220, p. 328, §34.)

§ 23-1-382 Possession, Display, of Federal License, Certificate, Rating, or Permit; Exceptions

(a) The federal license, certificate, rating, or permit required to operate an aircraft shall be kept in the personal possession of an aircraft operator when he or she is operating an aircraft within the state and the license, certificate, rating, or permit shall be presented for inspection upon the demand of any passenger, law enforcement officer of the state or a political subdivision thereof, the director or his or her designee, or any official, manager, or person in charge of an airport in the state upon which the aircraft operator may land.

(b) The federal aircraft license, certificate, or permit required for aircraft by the United States government shall be carried in every aircraft operating in the state at all times and shall be conspicuously posted therein where it may readily be seen by passengers or inspectors and shall be presented for inspection upon the demand of any passenger, law enforcement officer of the state or a political subdivision thereof, the director or his or her designee, any member, authorized official, airport manager or person in charge of any airport in the state upon which the aircraft lands.

(c) Except as hereinafter provided, no civil aircraft may engage in air navigation in the state unless it has first been certified by the United States government as being airworthy for the uses to which it is, or will be, put.

(d) Except as hereinafter provided, a person may not operate or cause or authorize to be operated any civil aircraft within the state unless the aircraft has a license, certificate, or permit issued by the United States government. A person may not engage in aeronautics or operation of an aircraft or act as an aircraft operator in the state unless he or she has an appropriate license, certificate, rating, or permit issued by the United States government authorizing him or her to engage in the particular phase of aeronautics or flight in which he or she is engaged. Violation of this subsection is a Class C misdemeanor.

(e) A flight school or aeronautics instructor may not operate an air or ground school or give instructions in flying or ground subjects in the state unless the school or instructor is the holder of a license, certificate, rating, or permit issued by the United States government authorizing him or her to engage in the particular class of flight or ground instruction in which he or she is engaged. Violation of this subsection is a Class C misdemeanor.

(f) An aircraft maintenance personnel or facility engaged in manufacturing, repairing, or restoring aircraft or aircraft engines, components, and parts may not perform work in the state unless the person or facility is the holder of a license, certificate, or permit issued by the United States government authorizing him or her to engage in the particular aeronautical activity which he or she is engaged. Violation of this subsection is a Class C misdemeanor.

(g) This section does not apply to any of the following:

(1) Public Aircraft. Any aircraft owned by a state or political subdivision thereof, or any aircraft of the United States government and its personnel unless the government-owned aircraft is engaged in carrying persons or property for commercial purposes.

(2) Military and Foreign. Military aircraft and personnel of the United States government or any aircraft or personnel licensed by a foreign country with which the United States has reciprocal relations; provided, however, that the aircraft and aircraft operators are not engaged in any commercial activity within this state.

(Act 2000-220, p. 328, §35.)

§ 23-1-383 Jurisdiction of Crimes and Torts; State, Municipal, Immunity from Liability

All crimes, torts, and other wrongs committed by or against an airman or passenger while in flight over the state and the question of whether damage occasioned by or to an aircraft while in flight over the state constitutes a tort, crime, or other wrong by or against the owner of an aircraft shall be determined by the laws of the state. No action or suit in tort shall be brought or maintained against the state, governmental entity, or any municipality thereof or the officers, agents, servants, or employees of the state, governmental entity or any municipality thereof, on account of any act done in or about the planning, construction, maintenance, expansion, operation, superintendence, or management of any airport or other navigation facility.

(Act 2000-220, p. 328, §36.)

§ 23-1-384 Contracts Made During Flight

All contractual and other legal relations entered into by pilots or passengers while in flight over the state shall have the same effect as if entered into on the land or water beneath.

(Act 2000-220, p. 328, §37.)

§ 23-1-385 Domestic Animals or Fowl on Airports

An owner or keeper of any domestic animal or fowl may not allow a domestic animal or fowl to run at-large and enter or be upon any premises constituting an airport, restricted landing area, or other aeronautical facility. Violation of this section is a Class C misdemeanor.

(Act 2000-220, p. 328, §38.)

§ 23-1-386 Trespass Upon and Operation of Vehicles on Airports

(a) A person may not trespass upon the area within the boundaries of any airport or operate any vehicles upon or drive across any licensed airport, restricted landing area, or other aeronautical facility, unless the areas are used for administrative, inspection, and maintenance purposes and are operated by the municipalities, counties, airport authorities, department personnel, or municipal law enforcement officers having jurisdiction.

(b) A person may not willfully damage, deface, or extinguish any beacon, marker, navigational light, directional sign, or landing area lights provided or erected in the state for the guidance of aircraft.

(c) Violation of this section is a Class C misdemeanor.

(Act 2000-220, p. 328, §39.)

§ 23-1-387 Use of Aircraft for Hunting, Prohibited

A person may not hunt, pursue, harass, wound, kill, or otherwise harm any wild waterfowl or other birds or animals by any means whatever during the time the person is on any kind of aircraft. Violation of this section is a Class C misdemeanor.

(Act 2000-220, p. 328, §40.)

§ 23-1-388 Reckless Operation of Aircraft

A person who operates any aircraft within the airspace over, above, or upon the lands and waters of the state, carelessly and heedlessly in willful or wanton disregard of the rights or safety of others or without due caution and circumspection or in a manner so as to endanger or be likely to endanger any person or property, shall be guilty of a Class C misdemeanor.

(Act 2000-220, p. 328, §41.)

§ 23-1-389 Unauthorized Use, Possession, Etc., of Aircraft

A person who willfully and without authority takes possession of or uses an aircraft or unlawfully removes or takes any component parts of an aircraft and any person who shall assist in, or be a party to, the taking, illegal possession of, or use of an aircraft or component parts belonging to another shall be guilty of a Class C felony.

(Act 2000-220, p. 328, §42.)

§ 23-1-390 Penalties for Violation of This Article

Except as herein otherwise provided, any person subject to this article who fails to comply with the requirements of, or violates this article, or of any of the rules, regulations, or orders issued pursuant thereto shall be guilty of a Class C misdemeanor. A violation of each rule, regulation, or order shall be considered a separate offense. A person found guilty of a misdemeanor under this article shall be punished by a fine of not more than five hundred dollars ($500) or by imprisonment for not more than six months, or both, with or without revocation of a certificate or license action by the director.

(Act 2000-220, p. 328, §43.)

§ 23-1-391 Effective Date of Transfer of Balances, Funds

All contractual rights, obligations of, and unexpended balances of appropriations and other funds or allocations of the Alabama Aeronautics Commission and the Alabama Department of Aeronautics shall be transferred to the Alabama Department of Transportation within 30 days after the passage of Act 2000-220 under the provisions of Act 2000-220 and as specified for those funds in any appropriations bill or as otherwise specified by law.

(Act 2000-220, p. 328, §45.)

Article 13 Airport Airspace Safety Act of 2009

§ 23-1-410 Short Title

This article shall be known as the Airport Airspace Safety Act of 2009.

(Act 2009-579, p. 1701, §1.)

§ 23-1-411 Definitions

As used in this article, the following terms have the following meanings:

(1) AIRPORT. Any area of existing land or man-made construction, except a restricted landing area, that is currently used, made available, or designed for the landing and takeoff of aircraft, whether or not facilities are provided for the shelter, servicing, maintenance, or repair of aircraft, and whether or not facilities are provided for receiving and discharging passengers or cargo, so long as such area meets the minimum requirements as to size, design, surfacing, marking, equipment, and management provided by the department for airports owned or operated by a political subdivision. A military airport under the control of the federal government is an airport for purposes of this article.

For purposes of this article, only a publicly owned, public use airport shall be considered to be an airport; provided, however, that a heliport shall not be considered to be an airport for purposes of this article. For purposes of this article, a facility constructed to serve as a publicly owned, public use airport after May 20, 2009, shall be deemed to be an airport upon its approval by the FAA, its being licensed by the department as an airport, and beginning commercial service operations.

(2) AIRPORT HAZARD. Any structure, equipment, object of natural growth, or use of land that constitutes a hazard to air navigation as set forth in 14 C.F.R. Section 77 and for which no permit or determination of no hazard has been issued by the FAA.

(3) C.F.R. The Code of Federal Regulations of the United States of America.

(4) DEPARTMENT. The Alabama Department of Transportation and any successor agency.

(5) FAA. The Federal Aviation Administration and any successor agency.

(6) FCC. The Federal Communications Commission and any successor agency.

(7) INTERESTED PARTY. Any person applying for a permit or the owner of the airport hazard which is adversely affected by a determination or order of the department.

(8) OBJECT OF NATURAL GROWTH. Any tree and other plants.

(9) PERMIT. Written approval issued by the department for the construction, erection, alteration, modification, or replacement of any structure or object of natural growth which qualifies as an airport hazard.

(10) PERSON. Any individual, partnership, corporation, company, or other entity, governmental body, administrative agency, personal representative, trustee, or receiver.

(11) POLITICAL SUBDIVISION. The state and any county, municipality, city, town, or subdivision thereof, or any state authority, commission, district, or agency authorized to establish or operate airports in the State of Alabama.

(12) STRUCTURE. Any man-made object constructed, erected, or installed on land or water, including, but not limited to, buildings, towers, smokestacks, utility poles, equipment, and overhead utility transmission and distribution lines. Utility transmission and distribution lines in the vicinity of an airport may be referred to collectively as a group of structures.

(Act 2009-579, p. 1701, §2.)

§ 23-1-412 Airport Hazards - Permits for Construction, Alteration, Etc.; Removal, Modification, Etc.

(a) In order to prevent airport hazards, a person shall secure a permit from the department for the construction, erection, alteration to a greater height, modification to a greater height, or replacement to a greater height of any structure within the state that qualifies as an airport hazard and meets any of the following criteria:

(1) The FAA issues a determination of presumed hazard or a determination of hazard.

(2) The person is required, but fails, to file a completed Form 7460-1 with the FAA.

(b) Notwithstanding subsection (a), a person shall not be required to obtain a permit from the department for the construction, erection, alteration, modification, or replacement of any structure if the FAA has issued a determination of no hazard to air navigation for that structure.

(c) This article shall not be construed to require the removal, lowering, or other change, modification, or alteration of any structure or object of natural growth which constitutes an airport hazard as of May 20, 2009. Notwithstanding, whenever a structure constituting an airport hazard has been abandoned for over six months, or whenever a structure or an object of natural growth is more than 50 percent down, destroyed, deteriorated, dead, or dying, persons desiring to restore to a greater height, rebuild to a greater height, or replace to a greater height such structure or object of natural growth shall be required, subject to the provisions of subsection (b), to obtain a permit in accordance with this article.

(d) This article shall not be construed to require the removal, lowering, or other change, modification, or alteration of any structure or object of natural growth which becomes an airport hazard after May 20, 2009, as a result of the expansion or modification of an airport or as a result of the construction of a new airport. In the event that an airport expands or modifies an existing airport or constructs a new airport after May 20, 2009, and the structure owner relocates or modifies its structure to accommodate the expansion, modification, or construction, then the structure owner shall be reimbursed for these costs.

(e) In determining whether to issue, deny, or condition a permit, the department may consider any information or circumstances it deems appropriate. In addition to other considerations, the department shall consider both of the following:

(1) Whether the applicant has complied with all applicable federal requirements concerning notification of a proposed structure.

(2) Whether the FAA has conducted an aeronautical evaluation.

(Act 2009-579, p. 1701, §3.)

§ 23-1-413 Permit Procedures

(a) The department shall establish procedures for submitting applications and issuing permits.

(b)(1) The department shall produce and, from time to time, modify and update the forms on which the applications for a permit shall be made.

(2) The filing fee assessed by the department shall not exceed five hundred dollars ($500) per application. Any number of structures or a group of structures may be included in a single application so long as they are part of a single project.

(3) Applications containing inaccurate or incomplete information, or not accompanied by the correct application fee, shall be returned (together with any fee submitted), without consideration, to the applicant.

(4) Application fees shall be deposited in the state Airports Development Fund, provided in Section 23-1-364, and used by the department to administer this article.

(c)(1) Permits shall not be required for any structure or object of natural growth constructed, erected, installed, replaced, modified, or repaired within the boundaries of a publicly owned, public use airport located in this state.

(2) Permits shall not be required for emergency repair, modification, or replacement of airport hazards where immediate action is required to preserve the health and safety of persons or property including, without limitation, the restoration of service provided using such structure.

(3) Notwithstanding subdivisions (1) and (2), the repair may not increase the height of the structure or the nature of the airport hazard.

(d) Upon receiving an application for a permit, the department shall make such investigation as it deems necessary to process the application. The investigation shall be conducted to determine, in the opinion of the department, whether the proposed structure would have a substantially adverse effect upon the safe and efficient use of navigable airspace and would be a hazard to air navigation if permitted. The department may give consideration to the findings and recommendations of other governmental agencies or interested persons concerning the airport hazard; however, such findings and recommendations are not binding on the department.

(e)(1) Within 30 days of receiving a completed application, the department shall determine whether a permit is to be issued, issued with conditions, or denied.

(2) Within 15 days of such determination, the department shall notify the applicant in writing of the determination of the department.

(3) Upon notifying the applicant in writing, the department shall be permitted one 30-day extension to make a determination. If the department has not issued a ruling within the 30-day period, or 60 days if an extension is taken, the application shall be considered approved.

(4) If an application is denied, the department shall set forth the reasons for such denial and shall state the requirements or conditions, if any, under which the application might be approved.

(5) The determination shall be final 21 days after the date of the written determination unless, within the 21-day period, the applicant requests a hearing before the department concerning the determination or, within 30 days after the date of the written determination, the applicant requests a hearing pursuant to the Alabama Administrative Procedure Act.

(f) Any interested party who is aggrieved by a determination or order of the department may request a hearing pursuant to the Alabama Administrative Procedure Act. Any such hearing shall be requested within 30 days after the date of the order or determination by the department. Any appeal from a final order of the department shall be to a court of competent jurisdiction.

(g) If an application is denied or conditionally approved by the department, the applicant may not submit the same application, re-file an application for the same airport hazard, or request modification of the conditions of the previously issued permit for 15 days from the date of the issuance of the previous determination.

(h) If the department has reasonable grounds to believe that a person is constructing, erecting, installing, altering, modifying, or replacing a structure which qualifies as an airport hazard or an object of natural growth which qualifies as an airport hazard without a permit having been issued by the department (and such a permit is required), the department may issue an order to such persons to appear before the department and show cause why a permit is not required. A date for the hearing shall be set out in the order. The department may petition a court of competent jurisdiction for an injunction ordering that construction of the allegedly offending structure or object of natural growth cease until the requirements of this article are complied with.

(i) Unless in violation of FAA requirements or decisions, the department may condition a permit on the permittee’s installing and maintaining such marking or lighting, or both, as may be necessary to indicate to pilots the presence of an airport hazard. Such markings and lighting shall be installed, operated, and maintained at the sole expense of the permittee and shall conform to standards established by the FAA.

(j) The department, through appropriate legal action, may compel the owner of an airport hazard which is constructed, erected, or installed in violation of this article, or an object of natural growth which grows to such a height as to constitute an airport hazard, at the sole expense of the owner, to remove the hazard or take such other action as shall be required to comply with this article. If the owner of the airport hazard does not comply with the order of the department, the department may petition a court of competent jurisdiction to order the owner of the airport hazard to remove the hazard or take such other action as shall be required to conform to the requirements of this article.

(Act 2009-579, p. 1701, §4.)

§ 23-1-414 Zoning Laws or Ordinances Control

(a) In the event of conflict between the requirements of this article and zoning laws or ordinances that regulate the height and location of airport hazards, and that meet or exceed the standards contained in 14 C.F.R. Part 77, that have been duly adopted by political subdivisions where an airport is located, the local zoning laws and ordinances shall control. The department shall publish and maintain a list of all political subdivisions with zoning laws or ordinances that meet or exceed the standards contained in 14 C.F.R. Part 77.

(b) Nothing in this article shall be construed to authorize or expand the power of a political subdivision to establish local zoning laws or ordinances with respect to airport hazards, structures, groups of structures, or objects of natural growth.

(Act 2009-579, p. 1701, §6.)

§ 23-1-415 Enforcement

The department may institute, in any court of competent jurisdiction, a civil action to enjoin, restrain, prevent, abate, or correct any violation of this article and violation of any determination, order, or ruling of the department.

(Act 2009-579, p. 1701, §7.)

§ 23-1-416 Valuation of Property Acquired for Airport Expansion

For the purpose of acquiring property for the expansion of an airport operated by a political subdivision, the value of the property within the existing or future runway protection zone, as depicted on the most current airport layout plan approved by the FAA, shall be based on the fair market value of the property without regard to the property’s location within the existing or future runway protection zone.

(Act 2009-579, p. 1701, §8.)

§ 23-1-417 Severability

Should any portion of this article be declared unconstitutional, void, or invalid by a final decision of any court of competent jurisdiction, this article, in its entirety, shall become null and void as of the date of that final decision of the court.

(Act 2009-579, p. 1701, §9.)

Article 14 Alabama Transportation Safety Fund

§ 23-1-430 Definitions. (This Section Terminates April 26, 2018, If No Revenue Is Created.)

As used in this article, the following words have the following meanings:

(1) DEPARTMENT. The Department of Transportation.

(2) FUND. The Alabama Transportation Safety Fund.

(Act 2016-150, §1.)

§ 23-1-431 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Alabama Transportation Safety Fund

There is hereby created the Alabama Transportation Safety Fund in the State Treasury. All proceeds from the revenues designated to the fund less the cost of collection authorized by law shall be deposited into the fund to be expended only as provided in this article. The provisions of this article shall not be superseded, amended, altered, violated, or overridden by any provision of the state General Fund appropriation act or any other annual or supplemental appropriation act, administrative rule, inter-agency transfer, or executive order or directive. The monies allocated to counties and municipalities from the fund shall be in addition to and shall not diminish any other revenues allocated or distributed from other sources. Proceeds deposited into the fund shall be distributed as follows:

(1) The first thirty-two million dollars ($32,000,000) of the proceeds paid into the fund annually that is derived from an excise tax levied on diesel fuel and designated as a revenue source for the fund shall be set aside and allocated no later than the end of the first quarter in each fiscal year for use on county infrastructure projects. If the excise tax levied on diesel fuel and designated as a revenue source for the fund is not sufficient to produce thirty-two million dollars ($32,000,000) of proceeds, other proceeds paid into the fund shall be allocated to ensure a total of thirty-two million ($32,000,000) of proceeds is set aside and allocated annually for use on county infrastructure projects. In the event the provisions for the revenue sources designated to the fund include factors for growth in the rate of tax levied and the implementation of these factors for growth results in an increase of at least one cent per gallon of both an excise tax levied on gasoline and an excise tax levied on diesel fuel that are designated as revenue sources to the fund or additional revenue is designated to the fund by the enactment of further legislation after January 1, 2016, an additional thirty-two million dollars ($32,000,000) of proceeds paid into the fund each year shall be set aside and allocated for use on county infrastructure projects. The funds allocated in this subdivision shall be expended only for projects authorized pursuant to procedures developed and adopted by the Alabama Transportation Rehabilitation and Improvement Program (ATRIP) Advisory Committee as established in Section 23-1-435. Following the repayment of loan or debt commitments related to any tax exempt debt issued in accordance with Section 23-1-435, the thirty-two million dollars ($32,000,000) of the proceeds to be paid pursuant to this subdivision shall either be used for an additional issue of tax exempt debt or split between the counties equally. All county infrastructure projects authorized pursuant to this subdivision shall be let to contract rather than be performed by county forces and shall be subject to the reporting requirements in Section 23-1-433.

(2) Five hundred thousand dollars ($500,000) shall be distributed annually to each county commission of the state, with quarterly distributions of one hundred twenty-five thousand dollars ($125,000) made to each county commission beginning on January 1, 2017. This allocation shall be in lieu of the established distribution of approximately five hundred thirty-three thousand dollars ($533,000) in federal funds being distributed annually to each county of the state by the Department of Transportation prior to April 26, 2016. However, the department may continue to allocate additional federal funds to county projects at its discretion and, if required by federal law, shall also allocate such future federal revenues to future projects on bridges and roads under the maintenance and control of the county commissions of Alabama. All funds distributed pursuant to this subdivision shall be used only for county infrastructure projects. All county infrastructure projects authorized pursuant to this subdivision shall be let to contract by each county utilizing contractors and material suppliers on the department’s list of approved contractors and suppliers rather than be performed by county forces and shall be subject to the provisions of Section 23-1-433. The department’s list of approved contractors and material suppliers shall include the department’s Certified Disadvantaged Business Enterprise List. The county shall provide a list of all contractors who have been awarded projects under this section to the Senate President Pro Tempore and the Speaker of the House every other year, beginning on October 1, 2018. The provisions of this subdivision shall only take effect at such time as a sufficient funding mechanism for the fund also takes effect.

(3) 65.9 percent of the remainder of the proceeds after the allocation in subdivisions (1) and (2) shall be allocated and appropriated to the department as the ALDOT share of funds to be used as prescribed in Section 23-1-432.

(4) 34.1 percent of the remainder of the proceeds after the allocation in subdivisions (1) and (2) shall be allocated and appropriated as the local share of funds to be used as prescribed in Section 23-1-433. 45.45 percent of the local share shall be allocated equally among the 67 counties of the state and the remaining 54.55 percent of the local share shall be allocated among the 67 counties of the state on the basis of the ratio of the population of each county to the total population of the state according to the then next preceding federal decennial census. Ten percent of the amount paid to each county shall be distributed by the county commission among the municipalities in the county on the basis of the ratio of the population of each municipality to the total population of all municipalities in the applicable county according to the then next preceding federal decennial census. The allocation provided for in this subdivision shall be made on or prior to the tenth day of each month with respect to receipts designated to the fund during the preceding month.

(Act 2016-150, §2.)

§ 23-1-432 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Use of Funds by Department; Reporting Requirements

(a) The monies allocated to the department from the fund shall at all times be segregated and kept separate from other federal or state road and bridge funds allocated to the department. Monies from the fund shall only be expended for the maintenance, improvement, replacement, and construction of roads and bridges within the state, including the payment of any debt associated with a road or bridge project or as matching funds for any federally-funded road or bridge projects. The department shall not use monies from the fund for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations:

(1) Salaries, benefits, or any other form of compensation for state or contract employees.

(2) The purchase, lease, or maintenance of equipment.

(3) The maintenance or construction of public buildings or other structures that are not roads or bridges.

(b) The funds allocated to the department shall be audited by the Department of Examiners of Public Accounts in the same manner as all other department funds.

(c) On or before October 1 of each year following the creation of the fund, the department shall publicly announce the project or projects which are projected to be funded with the proceeds from the fund during the upcoming fiscal year, and the current list of projects shall be listed on the department’s website at all times. The department’s website shall also include each of the following:

(1) A list of current bid offerings, openings, and awards for each project to be funded in whole or in part with revenues from the fund.

(2) Quarterly progress reports on each ongoing project funded in whole or in part with revenues from the fund, including, but not limited to, costs, anticipated completion dates, and any other relevant information regarding a project.

(d) In addition to the reporting requirements set out in subsection (c), no later than the first day of the regular session of the Alabama Legislature in each year following the creation of the fund, the department shall submit an annual report detailing all expenditures from the fund during the previous fiscal year to each member of the Legislature.

(Act 2016-150, §3.)

§ 23-1-433 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Use of Funds by County; Transportation Safety Fund Plan; Annual Report

(a) Except for monies allocated pursuant to subdivisions (1) and (2) of Section 23-1-431, the monies paid to counties from the fund shall be deposited into a separate fund maintained by the county and expended only for one or more of the following:

(1) The maintenance, improvement, replacement, and construction of county-maintained roads and bridges.

(2) As matching funds for federal road or bridge projects.

(3) The payment of any debt associated with a road or bridge project.

(4) With the consent of the municipality, for the maintenance, improvement, or replacement of municipally-maintained roads and bridges.

(5) For a joint road or bridge project with one or more municipalities in the county pursuant to any agreement executed under the authority of state law.

(b) The county shall not use any monies from the fund for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations:

(1) Salaries, benefits, or any other form of compensation for county or contract employees or for county officials.

(2) The purchase, lease, or maintenance of equipment.

(3) The maintenance or construction of public buildings or other structures that are not roads or bridges.

(c) All fund records shall be audited by the Department of Examiners of Public Accounts in the same manner as all other county funds.

(d) Any county project utilizing monies from the fund for road or bridge maintenance, improvement, replacement, or construction on roads or bridges with less than 2,500 average daily traffic shall be designed in a manner consistent with the standards for low volume roads as established in the County Road Design Policy for Low Volume Roads adopted by the department. All projects for roads and bridges which have greater than 2,500 average daily traffic shall be designed in a manner consistent with the most current edition of the State Department of Transportation Standards and Specifications for Roadway Constructions.

(e) At the first meeting in October of each year following the creation of the fund, the county commission of each county shall adopt an annual Transportation Safety Fund Plan for the current fiscal year, which plan shall be approved by affirmative vote of a majority of the members of the county commission. The plan shall include only projects authorized in subsection (a). The plan shall be based upon an estimate of the revenues anticipated from the fund during the fiscal year. The county commission shall consider the needs of each district in the county in establishing its annual plan, and the annual plan shall not be altered once adopted at the first meeting in October. Once adopted, the annual plan shall at all times be posted in conspicuous places at the county courthouse, the county commission office, the county highway department, and any other places deemed appropriate by the county commission. Additionally, the plan shall be posted on the county’s website, if available.

(f) At the first meeting in January of each year following the creation of the fund, the county engineer or other person designated by the county commission shall present the county commission with an annual written report detailing expenditures made from the fund during the previous fiscal year, which report shall include the status of each project included in the previous fiscal year’s Alabama Transportation Safety Fund Plan. The report shall be entered into the minutes of the county commission meeting and shall be made available to the public for inspection, including posting on the county’s website, if available.

(Act 2016-150, §4.)

§ 23-1-434 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Use of Funds by Municipality; Municipal Transportation Safety Fund Plan; Annual Report

(a) The monies distributed to a municipality from the fund shall be deposited in a separate fund maintained by the municipality and expended only for one or more of the following:

(1) The maintenance, improvement, replacement, and construction of roads and bridges within a municipality’s jurisdictional limits.

(2) As matching funds for federal road or bridge projects.

(3) The payment of any debt associated with a road or bridge project.

(4) With the consent of the county, for the maintenance, improvement, or replacement of county-maintained roads and bridges within the municipality’s jurisdictional limits.

(5) For a joint road or bridge project with the county pursuant to any agreement executed under the authority of state law.

(b) The municipality shall not use monies from the fund for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations:

(1) Salaries, benefits, or any other form of compensation for municipal or contract employees or municipal officials.

(2) The purchase, lease, or maintenance of equipment.

(3) The maintenance or construction of public buildings or other structures that are not roads or bridges.

(c) All monies allocated from the fund shall be audited by the Department of Examiners of Public Accounts in the same manner as all other municipal funds.

(d) Any municipal project utilizing monies from the fund for road or bridge maintenance, improvement, replacement, or construction on roads or bridges shall be designed in a manner consistent with the standards adopted by the department.

(e) At the first meeting in October of each year following the creation of the fund, the municipal governing body receiving funds shall adopt an annual Municipal Transportation Safety Fund Plan for the current fiscal year, which plan shall be approved by affirmative vote of a majority of the members of the municipal governing body. The plan shall include only projects authorized in subsection (a). The plan shall be based upon an estimate of the revenues anticipated from the fund during the fiscal year. The municipal governing body shall consider the needs of each district in the municipality in establishing its annual plan and the annual plan shall not be altered once adopted at the first meeting in October. Once adopted, the annual plan shall at all times be posted in conspicuous places at the municipal hall, the mayor’s office, the municipal highway department, and any other places deemed appropriate by the municipal governing body. Additionally, the plan shall be posted on the municipality’s website, if available.

(f) At the first meeting in January of each year following the creation of the fund, the city engineer or other person designated by the municipal governing body shall present the municipal governing body with an annual written report detailing expenditures made from the fund during the previous fiscal year, which report shall include the status of each project included in the previous fiscal year’s Alabama Transportation Safety Fund Plan. The report shall be entered into the minutes of the municipal governing body meeting and shall be made available to the public for inspection, including posting on the municipality’s website, if available.

(Act 2016-150, §5.)

§ 23-1-435 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Alabama Transportation Rehabilitation and Improvement Program Committee

(a) There is hereby created the Alabama Transportation Rehabilitation and Improvement Program (ATRIP) Committee. The appointing authorities shall coordinate their appointments to assure the committee membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state. All members of the ATRIP Committee shall be appointed by May 26, 2016, and shall serve until a successor is named. Members of the ATRIP Committee shall consist of:

(1) The Director of the State Department of Transportation who shall serve as chair of the ATRIP Committee.

(2) The Lieutenant Governor or his or her designee.

(3) One member appointed by the President Pro Tempore of the Senate.

(4) One member appointed by the Speaker of the House of Representatives.

(5) One member appointed by the Association of County Commissions of Alabama.

(6) One member appointed by the Alabama League of Municipalities.

(7) One member appointed by the Business Council of Alabama.

(8) One member appointed by the Alabama Farmers Federation.

(9) One member appointed by the Alabama Rural Electric Association of Cooperatives.

(10) Three members appointed by the Governor, one of whom shall be a minority member of the Legislature.

(b) The ATRIP Committee is authorized to enter into an agreement with any funding authority or bank that is authorized to issue tax exempt debt for infrastructure purposes in order to pledge the annual revenue proceeds allocated in subdivision (1) of Section 23-1-431 as payment for any loan or debt indenture. If the amount of annual revenue proceeds allocated in subdivision (1) of Section 23-1-431 is thirty-two million dollars ($32,000,000) annually, the ATRIP Committee is authorized to pledge thirty-two million dollars ($32,000,000) of annual revenue proceeds as payment for any loan or debt indenture not to exceed three hundred million dollars ($300,000,000) of loan or debt commitments outstanding at any time. If the amount of annual revenue proceeds allocated in subdivision (1) of Section 23-1-431 is increased to sixty-four million dollars ($64,000,000) annually, the ATRIP Committee is authorized to pledge sixty-four million dollars ($64,000,000) of annual revenue proceeds as payment for any loan or debt indenture not to exceed six hundred million dollars ($600,000,000) of loan or debt commitments outstanding at any time. By June 25, 2016, the ATRIP Committee shall convene to develop and adopt procedures for the pledge of any revenue proceeds allocated in subdivision (1) of Section 23-1-431 and the selection and authorization of projects to be funded from the revenue proceeds or loan or debt proceeds, including a procedure that any project selected and authorized to be funded from the revenue proceeds or loan or debt proceeds shall be subject to subsection (d) of Section 23-1-433. The procedures shall ensure that the initial allocation of two million five hundred thousand dollars ($2,500,000) per county commission shall be utilized to replace county bridges, to the extent any exists, which meet all of the following criteria: (1) Are posted for traffic below the maximum legal weight limit; (2) have a sufficiency rating of 50 or less on the then current ALDOT bridge inventory; and (3) have an average daily traffic count of 200 or more vehicles. In addition, the policies for the awarding projects above and beyond the two million five hundred thousand dollars ($2,500,000) per county commission shall also be developed with an emphasis on the impact posted bridges have on the school bus detours and the economic growth and stability of this state. If the revenue proceeds allocated in subdivision (1) of Section 23-1-431 are pledged to secure loan or debt commitments within the amounts allowed, the procedures developed and adopted for the selection and authorization of projects to be funded with the loan or debt proceeds shall include provisions to ensure that each county commission of the state shall have projects authorized totaling at least two million five hundred thousand dollars ($2,500,000). After the ATRIP Committee develops and adopts procedures for the pledge of any revenue proceeds and the selection and authorization of projects to be funded from the revenue proceeds or loan or debt proceeds, a copy of the procedures shall be distributed to each of the 67 counties of the state and shall be posted on the Department of Transportation website.

(Act 2016-150, §6.)

§ 23-1-436 (This Section Terminates April 26, 2018, If No Revenue Is Created.) Termination of Article

The provisions of this article shall automatically terminate two years after the effective date of this article if no revenue is created.

(Act 2016-150, §7.)

Chapter 2 Toll Roads, Bridges and Ferries

Article 1 Alabama Turnpike Authority

§ 23-2-1 through 23-2-26

[Repealed]

Repealed by Acts 1980, No. 80-136, p. 204, § 3, effective October 1, 1980.

Article 2 State Toll Bridge Authority

§ 23-2-40 through 23-2-64

[Repealed]

Repealed by Acts 1980, No. 80-139, p. 209, § 3, effective October 1, 1980.

Article 3 Dauphin Island Bridge Authority

§ 23-2-80 through 23-2-104

[Repealed]

Repealed by Acts 1980, No. 80-135, p. 203, § 3, effective October 1, 1980.

Article 4 Toll Tunnels and Bridges Designated as Parts of Interstate Highway System

§ 23-2-120 Maintenance of Tolls; Prohibition Against Further Bonded Indebtedness

[Repealed]

Repealed by Act 2009-769, p. 2364, §1, effective May 22, 2009.

(Acts 1957, No. 450, p. 612, §1.)

§ 23-2-121 When Newly Constructed Tunnel or Bridge Deemed Part of Existing Facility

[Repealed]

Repealed by Act 2009-769, p. 2364, §1, effective May 22, 2009.

(Acts 1957, No. 450, p. 612, §2.)

§ 23-2-122 Toll Facilities to Be Operated as Free Facilities After Payment of Outstanding Indebtedness

[Repealed]

Repealed by Act 2009-769, p. 2364, §1, effective May 22, 2009.

(Acts 1957, No. 450, p. 612, §3.)

Article 5 Alabama Toll Road, Bridge and Tunnel Authority

§ 23-2-140 Short Title

This article shall be known, and may be cited, as the Toll Road, Bridge and Tunnel Authority Act.

(Acts 1980, No. 80-691, p. 1377, §25.)

§ 23-2-141 Intent and Purpose of Article

The purpose of this article is to facilitate vehicular traffic and safety in the state by providing for the construction of modern toll roads, bridges and tunnels in strategic and essential locations, without taxes and without a pledge of the faith and credit of the state.

(Acts 1980, No. 80-691, p. 1377, §1.)

§ 23-2-142 Definitions

As used in this article, the following words and terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:

(1) AUTHORITY. The Alabama Toll Road, Bridge, and Tunnel Authority created by this article, or any board, body, or commission succeeding to the principal functions thereof or to which the powers given by this article to the authority shall be given by law.

(2) BONDS or TOLL ROAD, BRIDGE, OR TUNNEL REVENUE BONDS. Bonds of the authority authorized under this article.

(3) CONCESSIONAIRE. A person, firm, corporation, partnership, limited liability company, or other legal entity described in Section 23-2-144(a)(12) which has been awarded a contract to construct or operate, or both, a toll road or bridge by the department or the authority.

(4) COST. As applied to a toll road, bridge, or tunnel project, the cost shall include, but not be limited to, the following:

a. The cost of construction, including bridges over or under existing highways and railroads.

b. The cost of the acquisition of all land, rights-of-way, property, rights, easements, and interests acquired by or on behalf of the authority for construction.

c. The cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which buildings or structures may be moved.

d. The cost of diverting highways, interchange of highways, and access roads to private property, including the cost of land for easements therefor.

e. The cost of all machinery and equipment.

f. The cost of financing charges, including interest prior to and during construction and for one year after completion of construction.

g. The cost of traffic estimates, feasibility studies, engineering studies, design and other related studies and analyses, and legal fees and expenses.

h. Plans, specifications, surveys, and estimates of cost and of revenues.

i. The cost of other expenses necessary or incident to determining the feasibility or practicability of constructing a project.

j. The cost of administrative expenses and other expenses as may be necessary or incident to the construction of a project.

k. The cost of the financing of construction.

l. The cost of placing a project in operation.

m. Any other cost or expenditure necessary or incidental to the construction of a project, the financing of a project, and the placing of a project in operation.

n. Any obligation or expense which may be incurred by the State Department of Transportation for traffic surveys, borings, preparation of plans and specifications, and other engineering services in connection with the planning or construction of a project shall be regarded as a part of the cost of such project and shall be reimbursed to the State Department of Transportation by the authority.

(5) DEPARTMENT. The State Department of Transportation.

(6) PROJECT; TOLL ROAD, BRIDGE, AND TUNNEL PROJECT; or TOLL ROAD, BRIDGE, OR TUNNEL PROJECT. Any type of toll road, bridge, causeway, tunnel, or other transportation facility established and constructed or to be constructed by or on behalf of the authority, in conjunction with the department, under this article. The term includes, but is not limited to, all toll roads, bridges, causeways, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, access roads, toll houses, electronic tolling facilities and equipment, service areas, service stations, service facilities, communication and video and other surveillance facilities, and administration, storage, and other buildings which the authority may deem necessary for the operation of a project. The term also includes, but is not limited to, all property, rights, easements, and interests which may be acquired by the authority for the construction, operation, and maintenance of a project, including a project that is leased to a concessionaire by the authority or the department.

(Acts 1980, No. 80-691, p. 1377, §2; Act 2009-769, p. 2364, §2; Act 2019-471, §1.)

§ 23-2-143 Authority Established; Composition; Meetings; Fidelity Bonds; Compensation

(a) There is hereby established a body corporate and politic with corporate succession, to be known as the “Alabama Toll Road, Bridge and Tunnel Authority.” The authority is hereby constituted an instrumentality exercising public and essential governmental functions and the exercise by the authority of the powers conferred by this article shall be deemed and held to be an essential governmental function of the state.

(b) The authority shall consist of the Governor or his or her designee, the Lieutenant Governor or his or her designee, the Speaker of the House of Representatives or his or her designee, the Director of Transportation, the Director of Finance, the Chair of the House Government Appropriations Committee, the Chair of the Senate Finance and Taxation General Fund Committee, and two persons from the state at large to be appointed by the Governor.

(c) The Governor shall be chairman of the authority. The authority shall elect a secretary and a treasurer who need not be members and may be one and the same person. Five members of the authority shall constitute a quorum and the concurrence of a majority of the members present shall be necessary for any action taken by the authority. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority. Should any of the officials of the state die or should his or her term of office, as such official, expire, or should he or she resign therefrom, his or her successor in office shall take his or her place as a member or officer of the authority. Any vacancy in the appointed membership of the authority shall be filled in the same manner as the original appointment was made.

(d) If the secretary and treasurer are not members of the authority, before the issuance of any toll road, bridge, or tunnel revenue bonds under the provisions of this article, the secretary shall execute a surety bond in the penal sum of $25,000.00 and the treasurer shall execute a surety bond in the penal sum of $50,000.00, which shall be sufficient if he or she be secretary also. Each such surety bond shall be conditioned upon the faithful performance of the duties of the office of secretary or treasurer, as the case may be, to be executed by a surety company authorized to transact business in the State of Alabama as surety, and to be approved by the Governor and filed in the office of the Secretary of State. The cost of such bonds shall be borne by the authority.

(e) The members of the authority shall serve without compensation. The appointed members shall receive reimbursement for their expenses when actively engaged on the authority’s business, such expenses to be paid in accordance with Article 2 of Chapter 7 of Title 36.

(Acts 1980, No. 80-691, p. 1377, §3; Act 2009-769, p. 2364, §2.)

§ 23-2-144 Powers of the Authority

(a) The authority shall have the following powers:

(1) To adopt bylaws for the regulation of its affairs and the conduct of its business.

(2) To adopt an official seal and alter the same at pleasure.

(3) To maintain a principal office and branch offices at the place or places within the state as it may designate.

(4) To sue and be sued in its own name, including suits in tort.

(5) With the consent and approval of the department, to acquire and construct toll road, bridge, or tunnel projects at locations as the authority may determine to be desirable, practicable, and economically feasible and to maintain, repair, and operate the projects.

(6) To issue toll road, bridge, or tunnel revenue bonds of the authority for any of its corporate purposes, payable solely from its tolls, other revenues, and proceeds of the bonds, and to refund its bonds, all as provided in this article. No bonds issued under the provisions of this article shall constitute a debt or liability of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any such political subdivision, and neither the state nor any political subdivision thereof shall ever pay or agree to pay any portion of the same, but such bonds shall be payable solely from the funds pledged or available for their payment as authorized in this article. All such toll road, bridge, or tunnel revenue bonds shall contain on the face thereof a statement to the effect that the authority is obligated to pay the same or the interest thereon only from its tolls or other revenues and that neither the state nor any political subdivision thereof is obligated to pay the same or the interest thereon and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal thereof or the interest thereon. The federal government or any agency, governmental or quasi-governmental body, subdivision or instrumentality thereof, or public corporation may contribute funds or property of any kind to a project by appropriation, grant, lease, deed, or other means considered appropriate for the purpose of paying in whole or in part any bonds, paying the costs of acquiring, installing, or constructing improvements in whole or in part, or funding in whole or in part any other costs or expenses of a project, all without election of any kind. Except for the state and any political subdivision thereof, the other entities listed above may issue bonds for the purpose of financing the costs of any funds or property provided to the authority of a project.

(7) To fix and revise, from time to time, charge, and collect tolls for transit over or through toll road, bridge, and tunnel projects constructed by it or on its behalf.

(8) To establish rules and regulations for the use of any project.

(9) To acquire, hold, and dispose of real and personal property.

(10) To acquire in the name of the authority, by purchase or otherwise, on the terms and conditions and in a manner as it may deem proper, or by condemnation in accordance with the provisions of Title 18, and other provisions of law, insofar as the same may be applicable, any land and other property or any easement or interest therein, which it may determine is reasonably necessary for any toll road, bridge, or tunnel project or for its protection and preservation, or for the construction, relocation, or reconstruction of any access highway, street, or road; and to acquire by purchase or by condemnation, land necessary for drainage ditches, clay, sand, and gravel pits, and lime and stone quarries, together with any other material of every character that may be necessary in the construction and maintenance of toll road, bridge, or tunnel projects and access highways and roads.

(11) To designate points of ingress to and egress from each toll road, bridge, or tunnel project and to prohibit entrance to and exit from the project at any point or points not so designated.

(12) To make and enter into contracts and agreements necessary for, or incidental to, the performance of its duties and the execution of its powers under this article, including contracts and agreements for professional services deemed necessary for such purposes by the authority. In addition to and in conjunction with other authority to enter into contracts as may be provided by law, the authority is given full authority to enter into contracts, agreements, or understandings with, but not limited to, individuals, corporations, partnerships, limited liability companies, or other private parties; public or private partnerships, or both, or other similar joint ventures; or the federal government, any department, agency, governmental or quasi-governmental body, public corporation, instrumentality, or subdivision of the United States, the State of Alabama, or any other state of the United States, or any agency, governmental or quasi-governmental body, instrumentality, or subdivision thereof for the purpose of developing a project, or any part thereof, including, but not limited to, the following:

a. Design-build contracts, design-build-operate contracts, design-build-own-operate contracts, design-build-own-operate-maintain contracts, or other similar arrangements or agreements pursuant to which the design, right-of-way acquisition, relocation of structures or utilities, construction, financing, ownership, management, and operation, or any part or parts thereof, of a project are accomplished by any of the aforementioned entities by or on behalf of the authority or the department.

b. Leases, licenses, franchises, concessions, or other agreements for the development, operation, management, or undertaking of all or any part of a project.

No person who is related to a member of the authority may have any interest, direct or indirect, in any agreement or contract entered into pursuant to this subdivision or in any other contract related to any project related to a toll road.

(13) Notwithstanding any law to the contrary, including, but not limited to, Section 23-2-150, for any entity described in subdivision (12) that owns, leases, or otherwise operates a tollway or toll facility, pursuant to an agreement with the authority or the department, to set and collect tolls and receive other toll revenues from the operation of a tollway or other toll facility, subject to such conditions as the authority and the department may establish.

(14) To appoint managers, superintendents, tolltakers, and other employees and agents as may be necessary, in its judgment, to the efficient accomplishment of the purposes of this article.

(15) To receive and accept from any federal agency, subject to the approval of the Governor, grants for, or in aid of, the construction of any project and to receive and accept aid or contributions from any source of either money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which grants and contributions may be made.

(16) To the extent applicable, provide coverage for its employees under the provisions of Chapter 5 of Title 25, and the federal Social Security Act.

(17) To provide for or permit the payment of so-called pass-through tolls, availability payments, or similar payments or financing methods. Pass-through tolls and availability payments mean, generally, any methodology by which the federal government, the State of Alabama or other state of the United States, or any agency, governmental or quasi-governmental body, public corporation, subdivision, or instrumentality thereof agrees to reimburse or pay a project owner or operator amounts based upon the cost of the project, actual usage of the project, or other operating standards, as opposed to imposing a toll directly on the users.

(18) To do all acts and things necessary or convenient to carry out the powers granted in this article.

(b) The department shall be primarily responsible for administration and management of the planning, construction, and operation of projects under this article. The department is granted all such rights, powers, duties, and responsibilities related thereto and as specifically enumerated in subdivisions (7) to (13), inclusive, of subsection (a) and in Sections 23-2-145, 23-2-146, 23-2-150, 23-2-155, and 23-2-156, together with the power to do all acts and things necessary or convenient to carry out the powers granted thereunder. The foregoing powers granted to the department are in addition to powers granted to the department elsewhere under the laws of the State of Alabama.

(Acts 1980, No. 80-691, p. 1377, §4; Act 2009-769, p. 2364, §2.)

§ 23-2-145 Advertisement for Construction Bids; Award of Contract; Work Done by Force Account; Further Considerations by the Authority

(a) Before construction is started on any project, the authority shall advertise for sealed bids once each week for three consecutive weeks in a newspaper of general circulation in the county in which the project or undertaking, or some part thereof, is to be located; the authority may also advertise in such other publications as it may deem advisable. Such notices shall state that plans and specifications for the project are on file in the office of the authority and the time and place in which bids will be received and opened. All bids shall be opened publicly at the advertised time and place.

(b) The contract shall be awarded to the lowest responsible bidder complying with conditions of the invitation for bids, unless the authority finds that the bid is unreasonable or that it is not to the interest of the authority to accept it. The bidder to whom the award is made shall be notified by telegram or letter at the earliest possible date. Should the successful bidder fail or refuse to sign the contract or make bond, the authority may award the contract to the second lowest responsible bidder. Should the second lowest bidder fail or refuse to sign the contract or make bond, the authority may award the contract to the third lowest responsible bidder.

(c) Should no bids be received at the time stated in the advertisement for bids, the authority may advertise for and seek other competitive bids, or the authority may direct that the work shall be done by force account under its direction and control. If the authority finds that all bids received are unreasonable and that it is not to the interest of the authority to accept any of the bids, the authority may direct that the work shall be done by force account under its direction and control. On any construction project which the authority has determined to do by force account, the authority shall file plans and specifications and an itemized estimate of cost with the Department of Examiners of Public Accounts and upon completion of the project by the authority, the final total costs, together with an itemized list of cost of any and all changes made in the original plans and specifications shall be submitted to the Department of Examiners of Public Accounts for its permanent record. Upon the approval of the authority, its duly authorized officer or officers may, when proceeding upon the basis of force account, let any subdivision or unit of work by contract on receiving sealed bids in accordance with this section. This section shall not apply to routine maintenance and repair jobs done by maintenance men who are regular employees of the authority.

(d) Notwithstanding anything contained in this section or in any other provision of Alabama law to the contrary, solicited proposals under this article in respect to projects that the authority determines can be more efficiently accomplished on a design-build, design-build-own, design-build-own-operate, or design-build-own-operate-maintain basis may be evaluated and awarded by the authority based on qualifications of participants or best value, or both, and taking into consideration the best interest of the State of Alabama.

(Acts 1980, No. 80-691, p. 1377, §5; Act 2009-769, p. 2364, §2.)

§ 23-2-146 Grade Separations at Intersections; Relocation of Public Highways; Authority to Enter Private Lands to Drill, Survey, Etc.; Relocation, Etc., of Public Utility Facilities; Procedures; Costs

(a) The authority shall have power to construct grade separations at intersections of any toll road, bridge or tunnel project with public highways and to change and adjust the lines and grades of such highways so as to accommodate the same to the design of the grade separation. The cost of such grade separations and any damage incurred in changing and adjusting the lines and grades of such highways shall be ascertained and paid by the authority as a part of the cost of such bridge or tunnel project.

(b) If the authority finds it necessary to change the location of any portion of any public highway, it shall cause a highway of substantially the same type as the original highway to be reconstructed at such location as the authority shall deem most favorable. The cost of reconstruction and any damage incurred in changing the location of any such highway shall be ascertained and paid by the authority as a part of the cost of such bridge or tunnel project.

(c) Any change in line or grade, and any relocation of a public highway, shall be made so as best to serve the interests of the public and at the same time carry out the purposes of this article and any change in line or grade and any relocation shall be approved by the governing body or public agency having the responsibility of maintaining such public highway. In the event such body or agency fails or refuses to approve the change or relocation, the matter may be submitted by the authority to the circuit court of the county in which such body or agency has its principal office and the court shall determine what change in line or grade or relocation shall be made. Approval by such body or agency or by the court shall be conclusive as to the public interest.

(d) In addition to the foregoing powers the authority and its authorized agents and employees may enter upon any lands, waters and premises in the state for the purpose of making surveys, soundings, drillings and examinations as it may deem necessary or convenient for the purposes of this article, and such entry shall not be deemed a trespass, nor shall an entry for such purpose be deemed an entry under any condemnation proceedings which may be then pending. The authority shall make reimbursement for any actual damages resulting to such lands, waters, and premises as a result of such activities.

(e) The authority shall also have power to make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation, and removal of tracks, pipes, mains, conduits, cables, wires, towers, poles, and other equipment and appliances (herein called “public utility facilities”) of any public utility in, on, along, over or under any toll road, bridge or tunnel project. Whenever the authority shall determine that it is necessary that any public utility facilities which now are, or hereafter may be, located in, on, along, over or under any toll road, bridge or tunnel project shall be relocated in such toll road, bridge or tunnel project, or should be removed from such toll road, bridge or tunnel project, the public utility owning or operating such facilities shall relocate or remove the same in accordance with the order of the authority. The cost and expenses of such relocation or removal, including the cost of installing such facilities in a new location, or new locations, and the cost of any lands or any rights or interests in lands, and any other rights, acquired to accomplish such relocation or removal shall be ascertained and paid by the authority as a part of the cost of such toll road, bridge, or tunnel project. In case of any such relocation or removal of facilities, the public utility owning or operating the facilities, or its successors or assigns, may maintain and operate the facilities with the necessary appurtenances in the new location or new locations for as long a period and upon the same terms and conditions as it had the right to maintain and operate such facilities in their former location or locations.

(Acts 1980, No. 80-691, p. 1377, §6.)

§ 23-2-147 Bonds; Issuance; Forms; Procedures, Etc

(a) The authority is hereby authorized to provide by resolution for the issuance of bonds of the authority for any of its corporate purposes, including the refunding of its bonds. The principal of and the interest on any issue of such bonds shall be payable solely from, and be secured by a pledge of, tolls and other revenues of all or any part of the toll road, bridge, or tunnel project financed in whole or in part with the proceeds of such issue or with the proceeds of bonds refunded or to be refunded by such issue. The proceeds of any such bonds may be used or pledged for the payment or security of the principal or of the interest on bonds, and for the establishment of any or all reserves for such payment or security, or for other corporate purposes as the authority may authorize in the resolution authorizing the issuance of bonds or in the trust agreement securing the same.

(b) The bonds of each issue shall be dated; shall mature at such time or times, not exceeding 75 years from their date or dates as may be determined by the authority; and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds.

(c) The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. The bonds shall be signed by the chairman of the authority or shall bear a facsimile signature thereof; and the official seal of the authority or a facsimile thereof shall be impressed, imprinted, engraved or otherwise reproduced thereon. The official seal or a facsimile thereof shall be attested by the secretary of the authority or shall bear his or her facsimile signature; and any coupons attached thereto shall bear the facsimile signature of the chairman of the authority. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until delivery.

(d) All bonds issued under this article shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the state. The bonds may be issued in coupon or in registered form, or both, as the authority may determine; and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The authority may sell such bonds in such manner and for such price as it may determine to be for the best interest of the authority.

(e) The authority shall have power from time to time, in anticipation of the issuance of bonds, to issue notes and from time to time to issue renewal notes maturing not later than eight years from their respective dates. The authorization and issuance of notes, the interest thereon, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect thereto, shall be governed by the provisions of this article with respect to the issuance of bonds, insofar as the same may be applicable.

(f) The authority may, out of any funds available therefor, purchase notes or bonds, which shall thereupon be cancelled.

(g) Neither the members of the authority nor any person executing the notes or bonds shall be personally liable on the notes or bonds, or be accountable by reason of the issuance thereof in accordance with this article.

(h) The proceeds of the bonds of each issue shall be disbursed in the manner and under the restrictions, if any, as the authority may provide in the resolution authorizing the issuance of the bonds, or in the trust agreement, hereinafter mentioned securing the bonds.

(i) Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under this article without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specifically required by this article.

(Acts 1980, No. 80-691, p. 1377, §7; Acts 1982, No. 82-540, p. 890, §1; Act 2009-769, p. 2364, §2.)

§ 23-2-148 Refunding Bonds; Purposes

The authority may provide by resolution for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, if deemed advisable by the authority, for the additional purpose of constructing improvements, extensions or enlargements of the toll road, bridge or tunnel project or projects in connection with which the bonds to be refunded shall have been issued.

The authority is further authorized to provide by resolution for the issuance of its bonds for the combined purpose of:

(1) Refunding any bonds then outstanding which shall have been issued under the provisions of this article, including the payment of any redemption premium thereof and any interest accrued or to accrue to the date of redemption of such bonds; and

(2) Paying all or any part of the cost of any additional project or projects.

The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the authority in respect to the same, shall be governed by the provisions of this article insofar as the same may be applicable.

(Acts 1980, No. 80-691, p. 1377, §8.)

§ 23-2-149 Trust Agreements Securing Bond Issues; Authorized Provisions Protecting Holders; Pledge of Revenues

In the discretion of the authority, any bonds issued under the provisions of this article may be secured by a trust agreement by and between the authority and a corporate trustee, which may be any trust company, or bank having the powers of a trust company, within or without the state. The trust agreement or the resolution providing for the issuance of such bonds subject to the provisions of Section 23-2-147, may pledge or assign tolls or other revenues to which the authority’s right then exists or which may thereafter come into existence, and the moneys derived therefrom, and the proceeds of such bonds; provided, however, that the trust agreement or resolution shall not convey or mortgage any toll road, bridge or tunnel project or any part thereof. Such trust agreement or resolution providing for the issuance of bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law; including covenants setting forth the duties of the authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the toll road, bridge or tunnel project or projects; the rates of tolls and revenues to be charged; the payment, security or redemption of bonds and the custody, safeguarding and application of all moneys; and provisions for the employment of consulting engineers in connection with the construction or operation of such bridge or tunnel project or projects. It shall be lawful for any bank or trust company incorporated under the laws of this state which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Any trust agreement or resolution may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual rights of action by bondholders. In addition to the foregoing, any trust agreement or resolution may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of any trust agreement may be treated as a part of the cost of the operation of the toll road, bridge, or tunnel project or projects.

Any pledge of tolls, other revenues or moneys made by the authority shall be valid and binding from the time the pledge is made. The tolls, other revenues or moneys so pledged and thereafter received by the authority, except that part of the tolls, other revenues or moneys which are necessary to maintain the project or projects in good operating conditions, or to pay the reasonable operating expenses of the authority, or any judgment rendered against it, shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority. If such trust agreement should be offered for record it shall be filed and recorded without the payment of the mortgage tax required by Chapter 22 of Title 40. The authority may, in its discretion, enter into any supplement to such trust agreement, which supplement shall be governed, so far as may be, by the same provisions of this article as are applicable to the trust agreement.

(Acts 1980, No. 80-691, p. 1377, §9.)

§ 23-2-150 Authority to Collect Tolls, Revenues, Etc.; to Lease to Utilities; Toll Rates Adjusted to Conform to Trust Agreement

The authority is hereby authorized to fix, revise, charge, and collect tolls for the use of each toll road, bridge or tunnel project and the different parts or sections thereof, and to contract with, or to lease to or from, any person, partnership, association or corporation desiring the use of any part thereof, including the right-of-way adjoining the paved portion of approaches and access highways, streets or roads for placing thereon telephone, telegraph, electric light or power lines or pipe lines for gas and water or for petroleum products or for any other purpose except for tracks for railroad or railway use and to fix the terms, conditions, rents, and rates of charges for such use. Tolls shall be so fixed and adjusted as to carry out and perform the terms and provisions of any contract with or for the benefit of bondholders. Tolls shall not be subject to supervision or regulation by any other commission, board, bureau or agency of the state. The use and disposition of tolls and revenues shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of the trust agreement securing the bond issue.

(Acts 1980, No. 80-691, p. 1377, §10.)

§ 23-2-151 Revenues Deemed Trust Funds; Depository Deemed Trustee

All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this article. The resolution authorizing the bonds of any issue or the trust agreement securing such bonds shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this article and the resolution or trust agreement may provide.

(Acts 1980, No. 80-691, p. 1377, §11.)

§ 23-2-152 Bondholder’s and Trustee’s Rights of Enforcement; Scope of Rights

Any holder of bonds issued under the provisions of this article, or of any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent that the rights herein given may be restricted by such trust agreement, may, by civil action or proceeding protect and enforce any and all rights under the laws of this state, or granted hereunder, or under the trust agreement or the resolution authorizing the issuance of bonds and may enforce and compel the performance of all duties required by this article or by the trust agreement or resolution to be performed by the authority or by any officer thereof, including the fixing, charging and collecting of tolls.

(Acts 1980, No. 80-691, p. 1377, §12.)

§ 23-2-153 Exemptions from Levy, Charge, Assessment, Collection, Etc., of Certain Taxes; Certificate of Exemption

(a) The exercise of the powers granted by this article shall be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. Since the ownership, operation, and maintenance of toll road, bridge, or tunnel projects by the authority will constitute the performance of essential functions, the authority, department, and any concessionaire, or any contractor, subcontractor, or agent thereof, shall not be required to pay the taxes or assessments as specifically authorized in this section upon any toll road, bridge, or tunnel project or any property acquired or used by the authority, department, or any concessionaire under this article.

(b) An income, excise, or license tax or assessment may not be levied upon or collected in the state with respect to any corporate activities of the authority or the department or any of its revenue, income, or profit. The exemptions provided in this section do not extend to the taxes or fees levied under Division 1 of Article 5 of Chapter 17 of Title 8; Chapter 17 of Title 40; or the Rebuild Alabama Act.

(c) No ad valorem tax or assessment for any public improvement shall be levied upon or collected in the state with respect to any toll road, bridge, or tunnel project during any time that title to the toll road, bridge, or tunnel project is held by the authority or the department and any time that title to the toll road, bridge, or tunnel project is retained by the authority or the department pursuant to a lease with a concessionaire.

(d) No privilege or license taxes or assessments payable with respect to the recording or filing for record of any mortgage, deed, or other instrument, including, but not limited to, the privilege taxes under Chapter 22 of Title 40, shall be levied, charged, or collected in connection with the recording or filing for record of any mortgage, deed, or other instrument evidencing a conveyance to or the creation of any property interest in the authority or the department, any agreement or instrument to which the authority or the department is a party, or any mortgage, deed, or other instrument evidencing a conveyance from the authority or the department to another party or the creation by the authority or the department of any property interest in another party.

(e) Any tangible personal property that will become a permanent part of a project constructed by the authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from taxation and assessment, including sales or use taxes. However, any concessionaire, or contractor, subcontractor, or agent thereof, seeking an exemption of county or municipal sales or use taxes for itself or its contractors, subcontractors, or agents, under the authority granted in this subsection, shall receive an exemption certificate approved by resolution of the affected county or municipality.

(f) The authority, department, or any concessionaire, or any contractor, subcontractor, or agent thereof, shall be exempt from any tax imposed by Section 40-23-50 for the gross proceeds of the sale of materials or the gross receipts of services that are related to the construction of any project under this section.

(g) The interest paid or accrued on all bonds, notes, or other obligations issued by the authority shall be free from taxation by the state or a county, municipality, or other political subdivision or instrumentality thereof.

(h)(1) The Department of Revenue shall issue a certificate of exemption to the authority, the department, a concessionaire, or any contractor, subcontractor, or agent thereof, for each toll road, bridge, or tunnel project for the purchase of building materials, construction materials and supplies, and other tangible personal property that becomes part of the project. Any use of the certificate issued under the authority of this subsection and subsection (e) shall be subject to the reporting and penalty provisions of Section 40-9-14.1. Any holder or user of the certificate shall maintain an accurate accounting of the purchase and use of the property and, in a manner prescribed by the Department of Revenue, shall file reports of all such purchases.

(2) It is the intent of the Legislature for this subsection to lower the administrative cost for the authority, department, and each concessionaire, and any contractor, subcontractor, or agent thereof, for toll road, bridge, or tunnel projects.

(i) Nothing in this section exempts any concessionaire, or any contractor, subcontractor, or agent thereof, from state income taxes.

(j) The Department of Revenue may adopt rules to implement, administer, and provide for accurate accounting and enforcement of this section.

(Acts 1980, No. 80-691, p. 1377, §13; Act 2019-471, §1.)

§ 23-2-154 Bonds Legal Investments for All Purposes; Entitled to Be Deposited with State Officers or Agencies

Bonds issued by the authority under the provisions of this article are hereby made securities in which the state and all political subdivisions of this state, their officers, boards, commissioners, departments or other agencies; all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business; all insurance companies, insurance associations and other persons carrying on an insurance business; and all administrators, executors, guardians, trustees and other fiduciaries; and all other persons whatsoever who now are or may hereafter be authorized to invest in bonds or other obligations of the state may properly and legally invest any funds, including capital belonging to them or within their control. The bonds or other securities or obligations are hereby made securities which properly and legally may be deposited with and received by any state or municipal officer or agency of the state for any purpose for which the deposit of bonds or other obligations of the state is now or hereafter may be authorized by law.

(Acts 1980, No. 80-691, p. 1377, §14.)

§ 23-2-155 Authority to Maintain Own Toll Roads, Bridges, and Tunnels

Each toll road, bridge and tunnel project when constructed and opened to traffic shall be maintained and kept in good condition and repair by the authority.

(Acts 1980, No. 80-691, p. 1377, §15.)

§ 23-2-156 Rules and Regulations Governing Use of Toll Roads, Etc.; Violations; Penalties; Law Enforcement

(a) The authority is hereby authorized to promulgate reasonable rules and regulations with respect to the use of any toll road, bridge, or tunnel project. The rules and regulations shall relate to vehicular speeds, loads, weights and sizes, safety devices, rules of the road, and any other matters as may be necessary and proper to regulate traffic in the interest of safety and the maximum convenience of the persons using the project. The rules and regulations shall apply according to their terms to all sections of any toll road, bridge, or tunnel project under the jurisdiction of the authority, and to its structures and other appurtenances. Insofar as the rules and regulations may be inconsistent with the rules and regulations of the department or with the laws of the state relating to offenses with respect to highways, the rules and regulations promulgated by the authority shall be controlling. The authority may prescribe reasonable rules and regulations as it may deem advisable for the protection and preservation of and for the maintenance and preservation of good order within the property under its jurisdiction and control and to prevent unnecessary trespassing upon or injury to or upon any part of the right-of-way or other property of any toll road, bridge, or tunnel project. The authority shall not be subject to the provisions of the Alabama Administrative Procedure Act..

(b) Any rules and regulations shall provide that law enforcement officers and other emergency vehicles shall be afforded ready access, while in the performance of their official duty, to all property under the jurisdiction of the authority without the payment of tolls. Violation of the rules and regulations shall be a misdemeanor punishable by a fine of not less than $1.00 nor more than $500.00, and, at the discretion of the judge trying the case, also by sentence to hard labor for the county for a term not to exceed six months. The rules and regulations shall not take effect until duly filed in the office of the Secretary of State or as hereafter may be provided by law and published in a newspaper of general circulation in each county in which the toll road, bridge, and tunnel project affected is located and in such other manner as the authority shall prescribe.

(c) The authority may utilize appropriate law enforcement officers to secure each project as it deems necessary. The police officers shall have power to prefer charges against and make arrests of any person or persons violating any law of the State of Alabama, or any of the bylaws, rules, or regulations of the authority, as authorized herein on property owned or controlled by the authority. The jurisdiction of such police officers shall not be restricted to any one county but shall extend to all the counties in the state in which any toll road, bridge, or tunnel project is located.

(Acts 1980, No. 80-691, p. 1377, §16; Act 2009-769, p. 2364, §2.)

§ 23-2-157 Lease, Grant, Etc., of County, City, Etc., Property to Authority

All counties, cities, towns, and other political subdivisions and all public departments, agencies, and commissions of the State of Alabama, notwithstanding any contrary provision of law, are hereby authorized and empowered to lease, lend, grant, or convey to the authority at its request, upon such terms and conditions as the proper authorities of such counties, cities, towns, political subdivisions and departments, agencies, or commissions of the state may deem reasonable and fair, and without the necessity for any advertisement, order of court or other action or formality, other than the regular and formal action of the authorities concerned, any real property which may be necessary or convenient to the effectuation of the authorized purposes of the authority, which real property may include public roads and other real property already devoted to public use.

(Acts 1980, No. 80-691, p. 1377, §17.)

§ 23-2-158 Annual Report to Legislature; Contents; Annual Audit; Expense

On or before the tenth legislative day of each regular session of the Legislature, the authority shall make a report of its activities for the preceding calendar year to the Legislature. Each report shall set forth a complete operating and financial statement covering its operations during the year and shall contain a complete report of the engineers of the authority as to the physical condition of any project and shall include any recommendations made by such engineers. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and the cost thereof may be treated as a part of the cost of construction or of operation of the project.

(Acts 1980, No. 80-691, p. 1377, §18.)

§ 23-2-159 Conflict of Interest; Penalty

Any member, agent or employee of the authority who is interested, gainfully or pecuniarily, either directly or indirectly, in any contract of the authority, or in the sale of any property, either real or personal, to or by the authority shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $1,000.00 or by imprisonment for not more than one year, or both.

(Acts 1980, No. 80-691, p. 1377, §19.)

§ 23-2-160 Transfer of Projects to State Highway System

When (1) all bonds issued under the provisions of this article and all other debt made or issued to finance any project or projects and the interest thereon and all other obligations related thereto shall have been paid, or a sufficient amount for the payment of all the bonds and debt and the interest thereon and all other obligations related thereto, to the maturity thereof shall have been set aside in trust for the benefit of the holders thereof, and (2) all leases, concessions, and similar agreements and arrangements relating to any project or projects have expired or terminated, then the project or projects, if then in good condition and repair, as determined by the department, shall be transferred by the authority to the state highway system and shall thereafter be owned, operated, and maintained by the department.

(Acts 1980, No. 80-691, p. 1377, §20; Act 2009-769, p. 2364, §2.)

§ 23-2-161 Study of Proposed Projects; Reimbursement of Funds; Indebtedness

The department is hereby authorized, subject to the approval of the Governor, to expend funds from any available source as may be necessary for the study of any proposed toll road, bridge, or tunnel project authorized under this article and to use its engineering and other forces, including consulting engineers and traffic engineers, for the purpose of effecting the study. All expenses incurred by the department prior to the issuance of revenue bonds under the provisions of this article shall be paid by the department and charged to the appropriate project or projects and the department shall keep proper records and accounts showing each amount so charged.

Upon the sale of toll road, bridge, or tunnel revenue bonds for a toll road, bridge, or tunnel project, the funds so expended by the department in connection with a project shall be reimbursed by the authority to the department from the proceeds of such bonds and thereafter all expenses incurred in carrying out the provisions of this article shall be payable solely from funds provided under the authority of this article.

Nothing in this article shall be construed so as to authorize the authority to incur indebtedness or liability on behalf of or payable by the state or by any of its political subdivisions.

(Acts 1980, No. 80-691, p. 1377, §21; Act 2009-769, p. 2364, §2.)

§ 23-2-162 Advertisement of Plans; Public Hearing

Prior to building a new toll road or expanding capacity on any existing public road for tolling purposes, the Department of Transportation shall advertise for three consecutive weeks in the county or counties where the toll road will be located its intent to build a new toll road or expand capacity on any existing public road for tolling purposes, and it shall conduct a public hearing in each affected county.

(Act 2009-769, p. 2364, §3.)

§ 23-2-163 Applicability to Existing Roadway Capacity

[Repealed]

Repealed by Act 2017-375, § 2, effective May 24, 2017.

(Act 2009-769, p. 2364, §4.)

Article 6 Electronic Toll Collection Act

§ 23-2-165 Short Title

This article shall be known as the Electronic Toll Collection Act.

(Act 2017-375, §1.)

§ 23-2-166 Intent and Purpose of Article

The purpose of this article is to facilitate vehicular traffic and safety in the state by providing for the electronic collection of tolls.

(Act 2017-375, §1.)

§ 23-2-167 Definitions

As used in this article, the following words shall have the following meanings:

(1) AUTHORITY. The Alabama Toll Road, Bridge and Tunnel Authority, as defined in Section 23-2-142.

(2) DEPARTMENT. The Department of Transportation.

(3) ELECTRONIC TOLL COLLECTION. A method of collecting tolls or charges which is capable of charging an account holder the appropriate toll or charge, including, but not limited to, either of the following:

a. The transmission of information from an electronic device on a motor vehicle to the toll system, which information is used to charge the account the appropriate toll or charge.

b. The transmission of license plate information from a photo-monitoring system to the toll system, which information is used to charge the account the appropriate toll or charge.

(4) ELECTRONIC TRANSMISSION. Any process of communication not directly involving the physical transfer of paper that is suitable for the retention, retrieval, and reproduction of information by the recipient.

(5) LESSOR. Any person, corporation, firm, partnership, agency, association, or organization renting or leasing vehicles to a lessee under a rental agreement, lease, or otherwise providing the lessee with the exclusive use of the vehicle for any period of time.

(6) LESSEE. Any person, corporation, firm, partnership, agency, association, or organization that rents, leases, or contracts for the use of one or more vehicles and has exclusive use of the vehicles for any period of time.

(7) OPERATOR. Any person who is or was driving a vehicle that is or was the subject of a toll violation, but who is not the owner of the vehicle.

(8) OWNER. Any person or entity who, at the time of a toll violation and with respect to the vehicle involved in the violation, is the registrant or co-registrant of the vehicle with the Motor Vehicle Division of the Department of Revenue or with another state, territory, district, province, nation, or jurisdiction.

(9) PAYMENT. Paying a toll by cash, by permitting a charge against a valid account with the authority, department, or private toll entity, or by any other means of payment approved by the authority, department, or private toll entity.

(10) PHOTO-MONITORING SYSTEM. A vehicle sensor installed to work in conjunction with a toll collection facility that automatically produces one or more photographs, one or more microphotographs, a videotape, or other recorded images of a vehicle at the time it passes through a toll collection point. Information obtained by a photo-monitoring system may be used to charge the account of an account holder or to identify violations of toll collection regulations.

(11) PRIVATE TOLL ENTITY. An individual, group of individuals, partnership, corporation, limited liability company, association, or any other legal entity licensed pursuant to Section 23-1-81 or Section 23-2-144(12), to operate toll collection facilities.

(12) TOLL. Charges prescribed by the authority, department, or private toll entity for the use of any toll road, bridge, causeway, or tunnel under the jurisdiction of the authority or department or under the ownership or operation of a private toll entity.

(13) TOLL VIOLATION. The passage of a vehicle through a toll collection point without payment of the required toll.

(14) VEHICLE or MOTOR VEHICLE. A motor vehicle, as defined in Section 32-7A-2.

(Act 2017-375, §1; Act 2019-501, §1.)

§ 23-2-168 Electronic Toll Collection

(a) The authority, department, or private toll entity, or its agent or representative, may collect a toll by utilizing a system of collection that is capable of charging an account holder the required toll by transmission of information from an electronic toll collection device on a vehicle. In addition, for any vehicle that does not use an electronic toll collection device, the authority, department, or private toll entity, or its agent or representative, may utilize a photo-monitoring or other electronic system for toll collection.

(b) Any person or entity desiring to pay tolls electronically shall apply to the authority, department, or private toll entity, or its agent or representative, to become an account holder. The authority, department, or private toll entity, or its agent or representative, may deny the application of a person or entity. The denial and reason for the denial shall be sent to the applicant by first-class mail or electronic transmission.

(c) A person or entity whose application is accepted shall execute an account holder’s agreement. The terms of the account holder’s agreement shall be established by the authority, department, or private toll entity, or its agent or representative.

(d) If a motor vehicle passes through a toll collection point and the toll is not paid through an electronic toll collection device or otherwise, the authority, department, or private toll entity, or its agent or representative, shall first use the photo-monitoring or other electronic system for the toll road, bridge, causeway, or tunnel to determine if the registered owner of the motor vehicle has established an account for the payment of the toll. If an account has been established, the authority, department, or private toll entity, or its agent or representative, shall charge the account holder the required toll. If an established account cannot be located, or if an established account cannot be charged the required toll, the authority, department, or private toll entity, or its agent or representative, may attempt to collect the toll as a toll violation as provided in Section 23-2-169.

(Act 2017-375, §1; Act 2019-501, §1.)

§ 23-2-169 Use of Toll Collection Facility Without Payment; Collection

(a) The owner and operator of a vehicle driven on a toll road, bridge, causeway, or tunnel and through a toll collection point without payment of the required toll is jointly and severally liable to the authority, department, or private toll entity to pay the required toll, administrative fees, and civil penalty as provided in this article. The authority, department, or private toll entity, or its agent or representative, may pursue collection of the required toll as provided for in this article.

(b) A certified written report or an electronic copy thereof, sworn to or affirmed by the authority, department, or private toll entity, or its agent or representative, that a toll violation has occurred, based upon inspection of photographs, microphotographs, videotape, or other recorded images produced by a photo or other monitoring system, is prima facie evidence of the violation and is admissible as evidence in any proceeding charging a toll violation pursuant to this article.

(c) The Department of Revenue, upon request, shall provide current Alabama registration information to the department or authority in order to allow the department or authority to implement and administer this article. This information shall be provided in the format that the Department of Revenue provides to the Alabama State Law Enforcement Agency. The information shall not be subject to the fees as provided in Section 32-8-6 and shall only be used for the enforcement of this article. Alternatively, the department, authority, or private toll entity may enter into an agreement with any municipal law enforcement agency, county sheriff, or other authorized agency to provide the registered owner information pursuant to this subsection.

(d) If a vehicle passes through a toll collection point without payment of the required toll and no account is available to which a charge may be applied, the authority, department, or private toll entity, or its agent or representative, shall send by first-class mail or electronic transmission:

(1) A First Toll Invoice Notice to the owner or operator of a vehicle that is identified as having been involved in a toll violation. The First Toll Invoice Notice shall require payment to the authority, department, or private toll entity of the required toll or tolls incurred over the previous billing period, as established by the authority, department, or private toll entity, and may require payment of an administrative fee not to exceed five dollars ($5) per First Toll Invoice Notice. The payment shall be made within 30 days of the mailing or electronic transmission of the notice. The First Toll Invoice Notice shall be sent by the authority, department, or private toll entity, or its agent or representative, within 60 days after receipt of the motor vehicle registration information from the Alabama State Law Enforcement Agency, a municipal law enforcement agency, the county sheriff, or other authorized entity.

(2) A Second Toll Invoice Notice to the owner or operator of a vehicle who has failed to respond to a First Toll Invoice Notice within the required time period. The Second Toll Invoice Notice shall require payment to the authority, department, or private toll entity of the required toll or tolls, and may require payment of an administrative fee not to exceed fifty dollars ($50) per Second Toll Invoice Notice, as set by the authority, department, or private toll entity, within 30 days of the mailing or electronic transmission of the notice.

(3) A Failure to Pay a Toll Citation to the owner or operator of a vehicle who has failed to respond to the Second Toll Invoice Notice within the required time period. The authority or department may issue a Failure to Pay a Toll Citation upon certification by the authority, department, or private toll entity, or its agent or representative, that a toll violation has occurred and the owner or operator has failed to respond to the First Toll Invoice Notice and the Second Toll Invoice Notice as required by this section. The authority or department shall send the citation to the owner or operator associated with the toll violation; provided, if the citation is based on certification by a private toll entity, the private toll entity or its agent or representative shall send the citation. The citation shall be sent by certified mail. The citation shall require payment to the authority, department, or private toll entity of the required toll, and may require payment of an administrative fee not to exceed one hundred dollars ($100), as set by the authority, department, or private toll entity, within 30 days of the mailing of the notice of citation. In addition, the notice shall provide that failure to pay the citation within the required time period may result in the following:

a. The non-renewal of the vehicle registration for the vehicle associated with the citation until the citation and associated fees are resolved.

b. The authority, department, or private toll entity, or its agent or representative, filing a civil suit in the district court of the county in which the violation occurred to collect the toll and all applicable fees and penalties allowed pursuant to this article.

(e) Administrative fees assessed under subsection (d) are not cumulative. The maximum aggregate administrative fee allowed increases from five dollars ($5) to fifty dollars ($50) to one hundred dollars ($100) with each notice issued. An additional administrative fee of up to five dollars ($5) shall be assessed on each citation and paid to the law enforcement or other authorized agency providing the registered owner information to the department, authority, or private toll entity.

(f) The notices and citation required by this section shall also contain the following information:

(1) The name and address of the person or entity alleged to be liable for a failure to pay a toll pursuant to this section.

(2) The license plate registration number and state of issuance of the vehicle involved in the toll violation.

(3) The location where the toll violation occurred.

(4) The date and time of the toll violation.

(5) The identification of the photo or other monitoring system that recorded the violation or other document locator.

(6) Information advising of the manner and time in which liability may be contested.

(7) Notice that failure to contest liability in the manner and time provided in this section is an admission of liability.

(8) Notice that failure to pay a toll and any applicable fees may result in the suspension of the driver’s license and non-renewal of the vehicle registration for the vehicle associated with the citation.

(g) A manual, automatic, or electronic record of the mailing or transmission of the notices or citation prepared in the ordinary course of business is prima facie evidence of the mailing or transmission of the notices or citation.

(Act 2017-375, §1; Act 2019-501, §1.)

§ 23-2-170 Civil Liability for Toll Violations

(a) The authority, department, private toll entity, or an agent or representative thereof may file a civil suit in the municipal court of the city in which the violation has occurred or district court of the county in which the violation occurred to collect the toll and all applicable fees after a citation has been issued and the required time period for response has elapsed, without the payment of filing fees. The action shall be governed by the Alabama Rules of Civil Procedure except as otherwise set out in this article.

(b) Actions brought pursuant to this article shall be commenced within six years.

(c) Imposition of liability pursuant to this section shall be based upon a preponderance of evidence submitted.

(d) Adjudication of liability shall not be made a part of the driving record of the person upon whom liability is imposed, nor shall it be considered in any manner for insurance purposes in the provision of motor vehicle insurance coverage.

(Act 2017-375, §1.)

§ 23-2-171 Defense Against Liability

The owner of the motor vehicle involved in the violation is responsible and liable for payment of a citation issued for failure to pay a toll, unless:

(1) The owner can establish that the motor vehicle was stolen at the time of the violation. In order to establish such facts, the owner of the motor vehicle is required to furnish the court with a police report indicating that the vehicle was stolen at the time of the alleged violation.

(2) If the motor vehicle involved in the violation is leased to another person or entity, the lessor is not liable for the violation if the lessor sends to the authority, department, private toll entity, or an agent or representative thereof, within the time provided for response by the notice or citation, as applicable, a copy of the rental, lease, or another contract document, or an affidavit, covering the vehicle on the date of the violation, with the name and address of the lessee clearly legible, within the time provided for response by the notice or citation. Failure to send the information within the time provided renders the lessor liable for the unpaid tolls and any administrative fees or penalties assessed pursuant to and in the manner as provided in this article. If the lessor complies with the provisions of this section, the lessee of the vehicle on the date of the violation is subject to liability for the failure to pay the toll if the authority, department, private toll entity, or an agent or representative thereof mails a notice of liability to the lessee as provided in this article after receipt of a copy of the rental, lease, or other contract document.

(Act 2017-375, §1.)

§ 23-2-172 Registration Renewal Hold; Enforcement of Judgements

(a)(1) If the authority, department, or private toll entity, or its agent or representative, has sent a Failure to Pay a Toll Citation in accordance with Section 23-2-169, and the owner fails to pay the citation within the required time period, the authority or private toll entity, or its agent or representative, may notify the department that the citation has not been paid and request the department to place a hold on the registration renewal of the vehicle associated with the violation. After notification and request, the department shall notify the local license plate issuing official on the first of each month that a registration renewal hold has been placed on the vehicle, and the local license plate issuing official shall refuse to renew the vehicle registration of the vehicle identified for failure to pay the toll. The vehicle owner shall not be permitted to renew the vehicle registration with the local license plate issuing official until all outstanding tolls and assessed administrative fees, including fees assessed by the authority, department, or private toll entity, are resolved. However, the local license plate issuing official may issue a temporary license plate under Sections 32-6-213 and 32-6-214 to allow adequate time to allow the registration renewal hold to be removed. Any private toll entity receiving payment under this provision shall remit 10 percent of the total amount collected by enforcement of a registration renewal hold to be deposited into, and recorded separately in, the county general fund and expended solely for the operational expenses of the office of the local license plate issuing official. The registration hold is not subject to review or appeal except as provided in this article.

(2) At least 10 calendar days before the registration renewal hold is placed on the vehicle, the authority, department, or private toll entity, or its agent or representative, shall give notice of the hold to the owner of the vehicle. The notice shall be by first-class mail. The notice shall inform the owner how to remove the hold and shall provide the owner notice of the appeal procedures.

(3)a. A person seeking removal of a vehicle registration renewal hold shall pay all outstanding tolls and assessed administrative fees to the authority, department, or private toll entity. If all outstanding tolls and assessed fees are paid in full or otherwise resolved, the toll authority or department shall notify the local license plate issuing official that the registration renewal hold has been removed and provide the local license plate issuing official with the ability to verify that the non-renewal notice has been removed through an electronic portal. Upon request, the authority or department shall provide to the owner or operator of the vehicle verification of payment and removal of the registration renewal hold through an electronic portal.

b. The authority or department shall develop and maintain an electronic portal accessible by the owner for the access, verification, and payment of toll violations and fees. At the request of the local license plate issuing official, the department or authority shall communicate directly with the third-party vendor utilized by the local license plate issuing official for the processing of registration information. The authority may adopt rules relating to the creation and maintenance of the electronic portal. A private toll entity that requests the department to place a registration renewal hold on a vehicle shall comply with the rules adopted by the authority.

c. A person who receives notice of a vehicle registration renewal hold may file an appeal within 60 days of receipt of the notice. The appeal shall be filed in the local district court and is limited to the defenses against liability provided in Section 23-2-171.

d. The payment or nonpayment of all outstanding tolls and assessed administrative fees for removal of a vehicle registration renewal hold as set out in paragraph a. shall not waive, be a condition of, or affect a person’s right to file an appeal in a court of appropriate jurisdiction to appeal the payment of the tolls and assessed administrative fees using the defenses provided in Section 23-2-171.

(4) When a nonresident is issued a Failure to Pay Toll Citation and the nonresident fails to pay the citation within the required time period, the authority, department, or private toll entity, or its agent or representative, may transmit a certified copy of the record of the failure to pay to the official in charge of the issuance of vehicle registration certificates in the state in which the nonresident resides, if the law of the other state provides for action similar to that provided for in this section.

(b)(1) If the authority, department, or private toll entity, or its agent or representative, has pursued payment of the citation by civil suit pursuant to Section 23-2-170 and a district court determines that the person or entity charged with liability under this article is liable, the court shall enter a judgment against the person or entity and mail a copy of the judgment to the person or entity. The court shall collect the unpaid tolls and administrative fee. The court may impose court costs and a civil penalty of up to one hundred dollars ($100) for each violation. Tolls, fees, and penalties shall be forwarded to the entity administering the tolls at the facility where the violation occurred.

(2) Upon failure to satisfy a judgment for an action brought under Section 23-2-170 within 60 days of its entry and upon the written request of the authority, department, or private toll entity, or its agent or representative, it shall be the duty of the clerk of the court, or of the judge of a court that has no clerk in which the judgment is rendered within this state, to forward a certified copy of the judgment to the Secretary of the Alabama State Law Enforcement Agency or his or her designee after the expiration of the 60 days.

(3) The Secretary of the Alabama State Law Enforcement Agency or his or her designee, upon the receipt of a certified copy of a judgment under subdivision (2), shall suspend the driver’s license of any resident and the operating privilege, as defined in Section 32-7-2(6), of any nonresident against whom judgment was rendered.

(4) The resident’s driver’s license and the nonresident’s operating privilege shall remain suspended until the judgment under subdivision (2) is satisfied and evidence of its satisfaction has been presented to the Alabama State Law Enforcement Agency.

(5) When a nonresident’s operating privilege is suspended pursuant to this section, the Secretary of the Alabama State Law Enforcement Agency or his or her designee shall transmit a certified copy of the record of the action to the official in charge of the issuance of driver’s licenses in the state in which the nonresident resides, if the law of such other state provides for action similar to that provided for in this section. Nothing in this section shall require the Alabama State Law Enforcement Agency to enforce the suspension of operating privileges of a nonresident until the department or authority enters into a reciprocal agreement under Section 23-2-173.

(6) Any person seeking reinstatement of a driver’s license suspended under this section shall also comply with the requirements provided in Section 32-6-17.

(Act 2017-375, §1; Act 2019-501, §1.)

§ 23-2-173 Reciprocal Agreements - Other States or Jurisdictions

(a) The department or authority may enter into agreements, when not in conflict with law, with other states or jurisdictions for reciprocal enforcement of toll violations.

(b) An agreement made under this section shall provide that drivers licensed and vehicles registered in the state, while operating on the highways of another jurisdiction, shall receive benefits, privileges, and exemptions of a similar kind with regard to toll enforcement as are extended to drivers and vehicles licensed or registered in the other jurisdiction while operated in the state.

(c) A reciprocal agreement under this section may provide for enforcement of toll violations by refusal or suspension of the license of the driver or registration of the vehicle in accordance with Section 23-2-172.

(d) The reciprocal violation enforcement agreement between the department or authority and the governmental entity of another state or jurisdiction shall agree upon fees and costs associated with collecting unpaid tolls and driver’s license and vehicle registration suspensions in their respective jurisdictions.

(e) Notwithstanding Section 23-2-174, electronic toll collection data may be used for vehicle registration verification by the Department of Revenue and other states that have entered into information exchange agreements with the Department of Revenue.

(f) The enforcement provisions of subsection (d) of Section 23-2-169 and Section 23-2-172 do not apply to toll violations that occur in another state or jurisdiction until and unless the department or authority enters into a reciprocal agreement under this section with the other state or jurisdiction.

(g) To the extent permitted by law or allowed by or agreed to in a reciprocal agreement made under this section, public or private toll entities within the state may share in the benefit of a reciprocal agreement. Nothing in this section prevents a public or private toll entity from entering into an agreement for data sharing, the reciprocal payment of toll violations, or the collection of tolls with another public or private toll entity.

(Act 2017-375, §1; Act 2019-501, §1.)

§ 23-2-174 Privacy

(a) The authority, department, private toll entity, or an agent or representative thereof shall not sell, distribute, or make available the names and addresses of electronic toll collection system account holders, without the account holder’s consent, to any entity that uses the information for commercial purposes. However, this restriction does not preclude the exchange of this information between entities with jurisdiction of or operating a toll road, bridge, causeway, or tunnel, or entities with which there exists a reciprocal toll enforcement agreement.

(b) Records identifying a specific instance of travel by a specific person or vehicle shall be used only as required to ensure payment and enforcement of tolls, except that such information may be used by state, county, or municipal law enforcement agencies for the comparison of captured license plate data with data held by the Department of Revenue, the Alabama Criminal Justice Information Center, the National Crime Information Center, and the Federal Bureau of Investigation Kidnappings and Missing Persons list, for the purpose of identifying any of the following:

(1) A stolen vehicle or stolen license plate.

(2) A vehicle registered to an individual for whom there is an outstanding default or arrest warrant for felony charges appearing in the Alabama Warrant Management System, or outstanding warrants for felony charges issued in another jurisdiction.

(3) A vehicle associated with a missing person.

(c) Information or data collected by the authority, department, private toll entity, or an agent or representative thereof, for the purpose of establishing and monitoring electronic toll collection accounts, is not subject to disclosure under the Open Records Act, Section 36-12-40.

(Act 2017-375, §1.)

§ 23-2-175 Exemptions

The following vehicles are exempt from paying tolls imposed pursuant to this article:

(1) School buses transporting children for a school event.

(2) Authorized emergency vehicles, as defined in Section 32-1-1.1, while actively engaged.

(3) Any other vehicle as determined by the authority, department, or private toll entity, or its agent or representative.

(Act 2017-375, §1; Act 2019-501, §1.)

Chapter 3 Controlled Access Facilities

§ 23-3-1 Definitions

For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section:

(1) INTERSTATE HIGHWAY. Any highway now included or which shall hereafter be included as a part of the national system of interstate highways, selected by joint action of the State Department of Transportation and the United States Bureau of Public Roads.

(2) CONTROLLED ACCESS FACILITY. A highway or street included in the national system of interstate highways especially designed for through traffic and over, from or to which owners or occupants of abutting land or other persons have no right of easement or access from abutting properties. Such highways or streets may be parkways from which trucks, buses, or other commercial vehicles shall be excluded or they may be freeways open to use by all customary forms of street and highway traffic.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §2.)

§ 23-3-2 Declaration of Policy

It is the declared policy of this state to facilitate the flow of traffic and promote public safety by controlling access to highways included in the national system of interstate highways as selected by joint action of the State Department of Transportation and the United States Bureau of Public Roads.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §1.)

§ 23-3-3 Authority to Plan, Etc., Facilities; Regulation, Etc., Thereof

The Director of Transportation, acting alone or in cooperation with counties, cities, towns or any federal, state or local agency or any other state having authority to participate in the construction and maintenance of highways, is authorized to plan, designate, establish, regulate, vacate, alter, improve, maintain, and provide controlled access facilities for public use wherever such authority or authorities are of the opinion that traffic conditions, present or future, will justify such special facilities; provided, that in the case of designation or vacation, such designations or vacations must be approved by the Director of Transportation. Said authorities may regulate, restrict, or prohibit the use of such controlled access facilities by the various classes of vehicles or traffic in a manner consistent with Section 23-3-1.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §3.)

§ 23-3-4 Design Authority; Commercial Establishments

(a) The Director of Transportation is authorized to so design any controlled access facility and to so regulate, restrict, or prohibit access as to best serve the traffic for which such facility is intended. In this connection, such highway authority is authorized to divide and separate any controlled access facility into separate roadways by the construction of raised curbing, central dividing sections or other physical separations or by designating such separate roadways by signs, markers, stripes, and the proper lane for such traffic by appropriate signs, markers, stripes, and other devices. No person shall have any right of ingress or egress to, from or across controlled access facilities to or from abutting lands, except such designated points at which access may be permitted or service roads provided, upon such terms and conditions as may be specified from time to time.

(b) Except to the extent authorized by law for toll roads, no automotive service station or other commercial establishment for serving motor vehicle users shall be constructed or located within the right-of-way of or on publicly owned or publicly leased land acquired or used for, or in connection with, the controlled access facility; provided, that this shall not limit the powers granted to the Department of Conservation and Natural Resources by Sections 9-2-9, 9-2-10, 9-2-100, 9-2-101, 9-2-103 through 9-2-108, 9-14-1 through 9-14-6 and 9-14-20 through 9-14-29, when those powers are exercised in accordance with the purposes of such provisions.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §4; Acts 1961, Ex. Sess., No. 305, p. 2365; Acts 1967, No. 599, p. 1384, §1.)

§ 23-3-5 Acquisition of Property and Property Rights

(a) For the purpose of this chapter, the highway authorities of the state, acting alone or through the counties, cities, and towns, may acquire private or public property and property rights for controlled access facilities and service roads, including rights of access, air, view and light, by gift, devise, purchase, or condemnation in the same manner as such authorities are now, or hereafter may be, authorized by law to acquire such property or property rights in connection with highways and streets within their respective jurisdiction. In connection with the acquisition of property or property rights for any controlled access facility, or portion thereof or service road in connection therewith, the state, county, city, or town highway authority is hereby authorized, in its discretion, to acquire an entire lot, block or tract of land, even though such entire lot, block or tract of land is not immediately needed for the right-of-way proper; provided, that the authority is not granted to acquire property not immediately needed for the right-of-way proper unless the owner of such property shall consent thereto.

(b) In any event, in any case now or hereafter pending, when property is condemned for limited access highways and an appeal is taken by the state from a judgment of a court of competent jurisdiction and if the award of damages is affirmed on appeal by the Court of Civil Appeals or the Supreme Court of Alabama, then, in such event, the property owner shall be entitled to interest at six percent per annum on the amount of damages awarded from the date of the entry of the judgment awarding such damages.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §5; Acts 1967, No. 599, p. 1384, §2.)

§ 23-3-6 Elimination of Intersections at Grade

The state or any of its subdivisions shall have authority to provide for the elimination of intersections at grade of controlled access facilities with existing state or county roads, and city or town streets by grade separation of service road or by closing off such roads and streets at the right-of-way boundary line of such controlled access facility. After the establishment of any controlled access facility, no highway or street which is not a part of said facility shall intersect the same at grade. No city or town street, county or state highway or other public way shall be opened into or connected with any such controlled access facility without the consent and previous approval of the Director of Transportation; provided, that the Director of Transportation may, whenever he determines that traffic is not thereby impaired, authorize the continued intersection at grade of lightly traveled entrances and minor public roads as ways of access to controlled access facilities in sparsely populated areas.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §6.)

§ 23-3-7 Local Service Roads and Streets

In connection with the development of any controlled access facility, the Director of Transportation is authorized to plan, designate, establish, use, regulate, alter, improve, maintain, and vacate local service roads and streets or to designate as local service roads and streets any existing road or street if, in his opinion, such local service roads and streets are necessary or desirable. Such local service roads or streets shall be of appropriate design and shall be separated from the controlled access facility proper by means of all devices designated as necessary or desirable by the proper authority.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §8.)

§ 23-3-8 Agreements with Federal or Local Governments

The Director of Transportation is authorized to enter into agreements with counties, cities and towns or the federal government respecting the financing, planning, establishment, improvement, maintenance, use, regulation, or vacation of controlled access facilities or other public ways in their respective jurisdictions to facilitate the purposes of this chapter.

(Acts 1956, 1st Ex. Sess., No. 104, p. 148, §7.)

Chapter 4 Closing and Vacating Streets, Alleys and Highways

Article 1 Counties or Municipalities

§ 23-4-1 Application

Streets, alleys, and other highways, or portions thereof, may be closed and vacated upon the application of the municipality in which they are situated and, where not situated in a municipality, upon the application of the county in which they are situated in the manner provided for in this article.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §26.)

§ 23-4-2 Procedure

(a) Whenever the governing body of a municipality or county proposes to vacate a public street, alley, or highway, or portion thereof, the governing body shall schedule a public hearing prior to taking final action and shall publish notice of the proposed hearing on the vacation in a newspaper of general circulation in the portion of the county where the street, alley, or highway lies once a week for four consecutive weeks in the county prior to deciding the issue at a regularly scheduled meeting of the governing body. A copy of the notice shall be posted on a bulletin board at the county courthouse and shall also be served by U.S. mail at least 30 days prior to the scheduled meeting on any abutting owner and on any entity known to have facilities or equipment such as utility lines, both aerial or buried, within the public right-of-way of the street, alley, or highway to be vacated. The notice shall describe the street, alley, highway, or portion thereof proposed to be vacated and also give the date, time, and location of the meeting of the governing body at which the proposed vacation is scheduled to be addressed. Any citizen alleging to be affected by the proposed vacation may submit a written objection to the governing body or may request an opportunity to be heard at the public hearing held as required herein.

(b) If the governing body elects to vacate, it shall adopt a resolution which shall describe with accuracy the street, alley, or highway, or portion thereof, to be vacated and shall give the names of the owner or owners of the abutting lots or parcels of land and also the owner or owners of such other lots or parcels of land, if any, which will be cut off from access thereby over some other reasonable and convenient way. The resolution shall further set forth that it is in the interest of the public that such street, alley, or highway, or portion thereof, be vacated and shall be filed in the probate court of the county. In counties which elect the members of the county commission by single-member districts, the motion to approve the vacation shall be made by the commissioner in whose district the portion of the public street, alley, or highway to be vacated is located. The vacation shall not deprive other property owners of any right they may have to convenient and reasonable means of ingress and egress to and from their property, and if that right is not afforded by the remaining streets and alleys, another street or alley affording that right must be dedicated. The filing of the resolution as required herein shall operate as a declaration of the governing body’s vacation and shall divest all public rights and liabilities, including any rights which may have been acquired by prescription, in that part of the public street, alley, or highway vacated. Title and all public rights, including the right to close the street, alley, or highway vacated, shall vest in the abutting landowners. Entities with utility lines, equipment, or facilities in place at the time of vacation, shall have the right to continue to maintain, extend, and enlarge their lines, equipment, and facilities to the same extent as if the vacation had not occurred. Notice of the governing body’s action shall be published once in a newspaper in the county no later than 14 days after its adoption.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §27; Act 2004-323, p. 548, §1.)

§ 23-4-3 Contest by Interested Persons

[Repealed]

Repealed by Act 2004-323, p. 548, §2, effective July 1, 2004.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §28.)

§ 23-4-4 Recordation of Report by Commissioners; Payment of Costs and Damages

[Repealed]

Repealed by Act 2004-323, p. 548, §2, effective July 1, 2004.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §29.)

§ 23-4-5 Appeals

Any party affected by the vacation of a street, alley, or highway pursuant to this chapter may appeal within 30 days of the decision of the governing body vacating the street to the circuit court of the county in which the lands are situated, and upon such appeal, the proceeding shall be tried de novo, either party having the right to demand trial by jury when and as demand is authorized in civil actions. The appeal shall not suspend the effect of the decision of the governing body unless the appealing party shall give bond, with sureties, in an amount to be determined by the circuit judge. From the judgment of the circuit court, an appeal may be taken within 42 days by either party to the Court of Civil Appeals or the Supreme Court in accordance with the Alabama Rules of Appellate Procedure.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §30; Act 2004-323, p. 548, §1.)

§ 23-4-6 Article Deemed Cumulative

The provisions of this article shall not be held to repeal any existing statute relating to the closing, changing or vacating of streets and highways, but shall be cumulative.

(Acts 1931, No. 49, p. 62; Code 1940, T. 56, §31.)

Article 2 Abutting Landowners

§ 23-4-20 Vacation of Street or Alley

(a) Subject to the conditions set out in this subsection, any street or alley may be vacated, in whole or in part, by the owner or owners of the land abutting the street or alley or abutting that portion of the street or alley desired to be vacated by following the procedures set out herein. The owner or owners of the land abutting the street or alley to be vacated shall join in a written petition requesting that the street or alley be vacated and shall file the petition with the governing body with jurisdiction over the street or alley, or portion thereof, requesting the governing body’s approval of the vacation. The governing body shall set the request for vacation for public hearing within 100 days from the date the petition is received. Notice of the hearing shall be provided as set out in Section 36-25A-3 for notice of meetings of the governing body and shall describe the street or alley, or portion thereof, requested to be vacated in the petition. A copy of the notice shall also be served by U.S. mail at least 30 days prior to the scheduled meeting on any abutting owner and on any entity known to have facilities or equipment such as utility lines, both above ground or buried, within the public right-of-way of the street or alley, or portion thereof, to be vacated. Except as provided in subsection (c), if the governing body elects to take action on the petition, the governing body shall follow the procedures in Section 23-4-2(b) for taking the action. Any appeal of the decision of the governing body to vacate the street or alley, or portion thereof shall be as provided in Section 23-4-5. If the governing body approves the vacation, it shall have the same effect as provided in Section 23-4-2(b), including that the vacation shall not deprive other property owners of any right they may have to convenient and reasonable means of ingress and egress to and from their property, and if that right is not afforded by the remaining streets and alleys, another street or alley affording that right must be dedicated.

(b) The provisions of this section shall not be held to repeal any existing statute relating to the vacation of roads, streets, or alleys, or parts thereof, and shall not be held to limit or expand any civil causes of action available under the law.

(c) Notwithstanding the provisions of subsection (a) and Section 23-4-2 in conflict with this subsection, the following procedures may be applied in counties where the members of the county commission are elected by single-member districts if the property owners submitting the petition to vacate a street or alley or portion thereof are all members of the same immediate family. If, following the public hearing provided under subsection (a), the county commissioner from the district in which the street or alley or portion thereof does not move to vacate the street or alley or portion thereof within 100 days, the question of whether to vacate the street or alley or portion thereof may be placed on the agenda for a regular county commission meeting if, within 30 days thereafter, both of the following occur:

(1) A written request to have the issue of vacating the street or alley or portion thereof placed on the agenda for a regular county commission meeting is submitted to the chair of the county commission by a majority of other members of the county commission.

(2) A copy of the written request is delivered to the district commissioner in whose district the street or alley or portion thereof is located at the same time written request is submitted to the chair.

When the issue of vacating the street or alley or portion thereof is placed on the county commission agenda pursuant to the procedure set out herein, a motion to approve the vacation may be made during the county commission meeting at which the issue is debated by one of the members of the county commission who made the written request.

For the purpose of this subsection, immediate family shall mean spouse, parent, child, sibling, and grandparent.

(d) Notwithstanding the provisions of subsection (a) or Section 23-4-2 in conflict with this subsection, and except when an unpaved street or alley ends along a body of water, if the county commission denies or does not take action within 100 days after the public hearing is held on a petition to vacate an unpaved street or alley which is filed by all owners of property abutting all sides of the unpaved street or alley from its beginning to the place where it ends, the owners may file an action in the circuit court requesting an order vacating the unpaved street or alley. The petition shall be filed by all owners of property abutting all sides of the unpaved street or alley from its beginning to the place where it ends. Prior to any order for vacation being issued by the court, the county commission shall be granted an opportunity to present evidence establishing why the unpaved street or alley should not be vacated. The court may issue an order for vacation of the street or alley pursuant to this subsection only upon an affirmative finding that each of the following conditions are satisfied:

(1) All owners of property abutting all sides of the unpaved street or alley from its beginning to the place where it ends have joined as plaintiffs in the civil action filed pursuant to this section.

(2) Vacation of the unpaved street or alley will not deprive other property owners of any right they may have to convenient and reasonable means of ingress and egress to their property.

(e) In the event the court grants the petition for vacation of the unpaved street or alley as provided in subsection (d), the order shall include a specific finding that the county is divested of all public rights and liabilities in the unpaved street or alley, including any rights which may have been acquired by prescription. The plaintiffs shall be required to post signs along the unpaved street or alley providing notice that the unpaved street or alley is privately owned and is not maintained by the county. Vacation of the unpaved street or alley shall not take effect until and unless the signs are posted.

(f) Notwithstanding the provisions of this section, entities with utility lines, equipment, or facilities in place within or crossing a road at the time of vacation, shall have the right to continue to access, maintain, extend, and enlarge their lines, equipment, and facilities to the same extent as if the vacation had not occurred. The entities may continue to move across and along a vacated road to reach their lines, equipment, and facilities for the above purposes and to the same extent as if the vacation had not occurred.

(Acts 1939, No. 69, p. 110; Code 1940, T. 56, §32; Act 2004-323, p. 548, §1; Act 2014-333, p. 1228, §1.)

Chapter 5 Offenses

§ 23-5-2 Driving Around, Destruction, Etc., of Detour or Warning Sign, or Barricade or Fence

(a) For the purposes of this section, the following terms shall have the meanings respectively ascribed to them by this subsection:

(1) DETOUR SIGN. Any sign placed across or on a public road of the state by the state, the county or municipal authorities, or by their contractors, indicating that such road is closed or partially closed, which sign also indicates the direction of an alternate route to be followed to give access to certain points.

(2) WARNING SIGN. A sign indicating construction work in area.

(3) BARRICADE. A barrier for obstructing the passage of motor vehicle traffic.

(4) FENCE. A barrier to prevent the intrusion of motor vehicle traffic.

(5) OFFICIALLY CLOSED. A highway or road that has been officially closed by a governmental unit, the State Department of Transportation, a city or a county.

(b) Any person who wilfully destroys, knocks down, removes, defaces or alters any letters or figures on a detour or warning sign set upon a highway or road of this state, or who wilfully knocks down, removes, rearranges, destroys, defaces or alters any letter or figures on a barricade or fence erected on any highway or road of this state, or who drives around or through any barricade or fence on any officially closed highway or road of this state or drives around such detour sign or barricade or fence or any person who wilfully ignores or disregards a warning sign before such road has been officially opened to the public traffic by the State Department of Transportation or, in appropriate cases, by the county or municipal officer responsible for constructing or maintaining such roads, shall be guilty of a misdemeanor; provided, that as long as no damage is done to the new work, this section shall have no application to peace officers in the performance of their duties, nor to employees of the State Department of Transportation, nor of the contractor, nor of the federal authorities when engaged in inspection of surveys, repairs, maintenance, or construction on or alongside such highways, within the right-of-way, nor individuals domiciled or making their livelihood within the affected areas, nor to any person or group of persons who shall be authorized by the Director of Transportation or any appropriate county or municipal officer.

(c) Every person convicted of a violation of this section shall be punished by a fine of not less than $5.00 nor more than $100.00 or by imprisonment for not more than 30 days, or by both such fine and imprisonment.

(Acts 1969, No. 1145, p 2148.)

§ 23-5-6 Trash, Litter, Etc., Upon Public Thoroughfare - Driver Presumed Offender When Items Thrown from Vehicle

If littering is committed as set forth in Section 13A-7-29 or Section 32-5A-60 from a motor vehicle, the driver of the vehicle shall be presumed to be the offender.

(Acts 1961, Ex. Sess., No. 55, p. 1920, §2; Act 2019-530, §1.)

§ 23-5-7 Trash, Litter, Etc., Upon Public Thoroughfare - Erection of Signs

The State Department of Transportation, the county commission of each of the several counties and the governing body of each city or town shall cause signs to be erected at suitable intervals on highways and public thoroughfares in their respective areas of authority, including public parks, informing the public that it is unlawful to perform the acts prohibited by Section 13A-7-29.

(Acts 1961, Ex. Sess., No. 55, p. 1920, §3.)

§ 23-5-8 Trash, Litter, Etc., Upon Public Thoroughfare - Enforcement

The Alabama Highway Patrol and the law enforcement officers of the counties, cities and towns of this state are charged with the duty of enforcing the provisions of Section 13A-7-29 and Sections 23-5-6 through 23-5-9.

(Acts 1961, Ex. Sess., No. 55, p. 1920, §4.)

§ 23-5-9 Trash, Litter, Etc., Upon Public Thoroughfare - Provisions Deemed Cumulative

The provisions of Section 13A-7-29 and Sections 23-5-6 through 23-5-8 shall be cumulative to existing statutes relating to the throwing, placing or otherwise depositing of debris, rubbish, trash, or other items or substances of a prohibited nature upon the public highways of the state and shall in no wise repeal nor affect any of such laws.

(Acts 1961, Ex. Sess., No. 55, p. 1920, §5.)

§ 23-5-13 Violation of State Department of Transportation Rules or Regulations

Any person, firm or corporation who violates any reasonable rule or regulation prescribed by the State Department of Transportation for the better construction, repair and maintenance, protection and preservation of the public roads, bridges, highways and rights-of-way of roads and highways of this state shall be guilty of a misdemeanor and, on conviction, shall be punished by a fine of not less than $100.00 nor more than $500.00 and, at the discretion of the judge trying the case, may also be sentenced to hard labor for the county for a term not to exceed six months, unless otherwise provided by law.

(Code 1923, §4449; Acts 1927, No. 347, p. 348; Code 1940, T. 23, §127.)

§ 23-5-14 Violation of Rules, Etc., Enacted by County Commission Relative to Public Roads, Etc., of County

It shall be unlawful for any person, firm or corporation to violate any rule, regulation or law which has heretofore been adopted or promulgated or which may hereafter be adopted or promulgated by the county commission of any county, under the authority conferred by law, relating to the use, control, care, operation or maintenance of the public roads, bridges or ferries of said county; and any person, firm or corporation violating the same shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than $500.00 and may also be sentenced to hard labor for the county for not more than six months. Each violation shall constitute a separate offense.

(Acts 1927, No. 347, p. 348; Code 1940, T. 23, §62.)

Chapter 6 Industrial Access Roads and Bridges

§ 23-6-1 Definitions

Where used in this chapter the following words and terms shall be given the following respective meanings unless the context hereof clearly indicates otherwise:

(1) BOARD OF DIRECTORS. The board of directors of the corporation.

(2) CODE. The Code of Alabama 1975, as amended.

(3) CORPORATION. The public corporation authorized to be created by this chapter.

(4) GOVERNMENT SECURITIES. Any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency to the extent such obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in such obligations of, or unconditionally guaranteed by, the United States of America or in specified portions thereof (which may consist of the principal thereof or the interest thereon).

(5) INDUSTRIAL ACCESS ROADS AND BRIDGES. The planning, design, and construction of roads and bridges on the public highway and street system providing access to active military installations or property used primarily for military purposes or to projects that conduct an activity specified in subdivision (1) of Section 40-18-372, including necessary right-of-way and utility activities provided by state law.

(6) LEGISLATURE. The Legislature of Alabama.

(7) NET INTEREST INCOME. Interest earned from an investment, net of that which represents a return of accrued interest, and the amount required to offset the amortization of any premium, paid in connection with the purchase of such investment.

(8) PERMITTED INVESTMENTS.

a. Government securities;

b. Bonds, debentures, notes or other evidences of indebtedness issued by any of the following agencies, to the extent that such obligations are secured by the full faith and credit of the United States: Bank for Cooperatives; Federal Intermediate Credit Banks; Federal Financing Bank; Federal Home Loan Banks; Federal Farm Credit Bank; Export-Import Bank of the United States; Federal Land Banks; or Farmers Home Administration, or any other agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States as an agency or instrumentality thereof, the bonds, debentures, participation certificates or notes of which are unconditionally guaranteed by the United States of America;

c. Bonds, notes, pass through securities or other evidences of indebtedness of GNMA and participation certificates of FHLMC;

d. Full faith and credit obligations of any state, provided that at the time of purchase such obligations are rated at least “AA” by Standard & Poor’s Corporation and at least “Aa” by Moody’s Investors Service;

e. Public housing bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by contracts with the United States of America, or temporary notes, preliminary notes or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States of America;

f. Time deposits evidenced by certificates of deposit issued by banks or savings and loan associations which are members of the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, provided that, to the extent such time deposits exceed available federal deposit insurance, such time deposits are fully secured by obligations described in paragraphs a., b., c., and e. above, which at all times have a market value (exclusive of accrued interest) at least equal to such bank time deposits so secured, including interest, and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard & Poor’s Corporation for structured financings;

g. Repurchase agreements for obligations of the type specified in paragraphs a., b., c., and e. above, provided such repurchase agreements are fully collateralized and secured by such obligations which have a market value (exclusive of accrued interest) at least equal to the purchase price of such repurchase agreements and which are held by a depository satisfactory to the State Treasurer in such manner as may be required to provide a perfected security interest in such obligations, and which meet the greater of 100 percent collateralization or the “AA” collateral levels established by Standard & Poor’s Corporation for structured financings; and

h. Uncollateralized investment agreements with, or certificates of deposit issued by, banks or bank holding companies, the senior long-term securities of which are rated at least “AA” by Standard & Poor’s Corporation and at least “Aa” by Moody’s Investors Service.

(9) STATE. The State of Alabama.

(Acts 1985, No. 85-549, p. 833, §1; Act 2017-283, §1.)

§ 23-6-2 Purposes of Public Corporation; Supervision of Construction by State Department of Transportation; Department’s Power to Assign, Contract, Etc., Construction Work; Construction of Chapter

It is the intention of the Legislature to authorize the incorporation of a public corporation for all of the following purposes:

(1) To issue bonds to assure the availability of funds for payment of the cost of constructing industrial access roads and bridges as shall from time to time be constructed.

(2) To use an annual appropriation from the state Public Road and Bridge Fund to assure the availability of funds for the cost of constructing industrial access roads and bridges as shall from time to time be constructed.

(3) To construct industrial access roads and bridges through a corporation to be composed of the officials whose incorporation is hereby authorized.

(4) To vest in the corporation all powers, authorities, rights, privileges, and titles necessary to enable it to accomplish the purpose.

(5) To appropriate and pledge funds for the use of the corporation.

All construction herein referred to shall be performed by or under the direction and supervision of the State Department of Transportation. The State Department of Transportation may assign, contract, or delegate the work of construction under its general powers, subject to approval by the Governor. This chapter shall be liberally construed in conformity with the aforementioned purposes.

(Acts 1985, No. 85-549, p. 833, §2; Acts 1996, No. 96-374, p. 458, §1.)

§ 23-6-3 Authority to Incorporate

The Director of Transportation, the State Treasurer, and the Director of Finance may become a corporation, with the powers and authorities hereinafter provided, by proceeding according to the provisions of this chapter.

(Acts 1985, No. 85-549, p. 833, §3.)

§ 23-6-4 Proceeding to Incorporate

To become a corporation, the Director of Transportation, the State Treasurer, and the Director of Finance shall present to the Secretary of State of Alabama an application signed by them which shall set forth:

(1) The name, official designation, and official residence of each of the applicants, together with a certified copy of the commission evidencing each applicant’s right to office;

(2) The date on which each applicant was inducted into office and the term of office of each of the applicants;

(3) The name of the proposed corporation, which shall be Alabama Industrial Access Road and Bridge Corporation;

(4) The location of the principal office of the proposed corporation, which shall be Montgomery, Alabama; and

(5) Any other matter relating to the incorporation which the applicants may choose to insert and which is not inconsistent with this chapter or the laws of the State of Alabama.

The application shall be subscribed and sworn to by each of the applicants before an officer authorized by the laws of the State of Alabama to take acknowledgments to deeds. The Secretary of State shall examine the application and, if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.

(Acts 1985, No. 85-549, p. 833, §4.)

§ 23-6-5 Certificate of Incorporation; Recording; No Fees to Be Paid to Secretary of State on Incorporation or Dissolution

When the application has been made, filed and recorded, as herein provided, the applicants shall constitute a public corporation under the name proposed in the application and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this chapter, under the Great Seal of the State, and shall record the same with the application. There shall be no fees paid to the Secretary of State for any work in connection with the incorporation or dissolution of the corporation so organized (which, for convenience, is herein referred to as “the corporation”).

(Acts 1985, No. 85-549, p. 833, §5.)

§ 23-6-6 Members, Officers, and Directors of Corporation; Vacancies; Compensation; Record of Proceedings; Record as Evidence

The applicants named in the application and their respective successors in office shall constitute the members of the corporation. The Director of Transportation shall be the president of the corporation, the State Treasurer shall be its vice-president, the Director of Finance shall be the secretary of the corporation, and the State Treasurer shall be the treasurer of the corporation and shall act as custodian of its funds. The members of the corporation shall constitute all the members of the board of directors of the corporation, and any two members of the said board of directors shall constitute a quorum for the transaction of business. Should any of said officials of the state die or should his term of office as Director of Transportation, State Treasurer, or Director of Finance, as the case may be, expire or should he resign therefrom, his successor in office shall take his place as a member, officer, and director of the corporation. No member, officer, or director of the corporation shall draw any salary, in addition to that now authorized by law, for any service he may render or any duty he may perform in connection with the corporation. All proceedings had and done by the board of directors shall be reduced to writing by the secretary of the corporation and recorded in a substantially bound book. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.

(Acts 1985, No. 85-549, p. 833, §6.)

§ 23-6-7 Corporate Powers

The corporation shall have the following powers:

(1) To have succession by its corporate name without time limit;

(2) To sue and be sued and to prosecute and defend, at law or in equity, in any court having jurisdiction of the subject matter and of the parties;

(3) To have and to use a corporate seal and to alter the same at pleasure;

(4) To construct, reconstruct, and relocate industrial access roads and bridges within the state or to cause the same to be constructed, reconstructed, and relocated;

(5) To receive, take and hold by sale, gift, lease, devise or otherwise, real and personal estate of every description, and to manage the same;

(6) To acquire by purchase, gift, or the exercise of the power of eminent domain, or any other lawful means, and to transfer, convey or cause to be conveyed to the state, any real, personal or mixed property necessary or convenient in connection with the construction, reconstruction, or relocation of industrial access roads and bridges in the state;

(7) To exercise the right of eminent domain as freely and completely as, and in the same manner as, the state is empowered to exercise such right;

(8) To borrow money and issue its bonds in evidence thereof subject to the provisions of Section 23-6-8 of this chapter;

(9) As security for payment of the principal of and the interest on its bonds, to pledge any funds or revenues from which its bonds may be made payable, including the proceeds of the appropriations and pledges herein provided for;

(10) To appoint and employ such attorneys, accountants, financial advisors, underwriters, trustees, depositories, registrars and other advisors, agents and independent contractors as the business of the corporation may require;

(11) To enter into contracts with counties, the State Department of Transportation or other agency performing any of the functions thereof, road district authorities, private persons, firms, or corporations, the federal emergency administrator of public works, and any other branch of the federal government, in furtherance of its public purposes and objects, either relative to work done or to be done; and

(12) To turn over to the State Department of Transportation any and all funds of the corporation as from time to time may be necessary or convenient for the most economical construction of such industrial access roads and bridges or otherwise for carrying out the business of the corporation.

(Acts 1985, No. 85-549, p. 833, §7.)

§ 23-6-8 Bonds of Corporation; Annual Appropriation from State Public Road and Bridge Fund

(a) The bonds of the corporation shall be signed by its president and attested by its secretary and the seal of the corporation shall be affixed thereto or a facsimile thereof printed or otherwise reproduced thereon. The signatures of both the president and the secretary on any bonds may be facsimile signatures if the board of directors, in its proceedings with respect to issuance of the bonds, provides for manual authentication thereof, or manual execution of certificates of registration thereon, by a trustee, registrar, or paying agent or by named individuals who are employees of the state assigned to the Finance Department or the State Treasurer’s office. Any bonds of the corporation may be executed and delivered by it at any time and shall be in the form and denominations and of the tenor and maturities, shall bear the rate or rates of interest payable and evidenced in such manner, may contain provisions for redemption prior to maturity for refunding at or before maturity with refunding bonds of the corporation or of another governmental entity or public corporation of the state and for defeasance of any unmatured refunded bonds through the use of refunding bonds, and may contain other provisions not inconsistent herewith, all as may be provided by the resolution of the board of directors under which the bonds may be issued. Notwithstanding the foregoing, no bond of the corporation shall have a specified maturity date later than 10 years after its date. Bonds of the corporation may be sold from time to time in one or several series and pursuant to a single bond resolution or separate bond resolutions, all as the board of directors may deem advantageous; provided, however, that the aggregate principal amount of bonds of the corporation at any one time outstanding shall not exceed fifty million dollars ($50,000,000), excluding refunding bonds, which shall not be considered in determining the limit. It is further provided, that no bonds, other than refunding bonds, may be sold or issued by the corporation unless the Governor shall have first determined that the issuance of the bonds proposed to be issued shall be necessary to assure the availability of funds for payment of the cost of industrial access roads and bridges that shall from time to time be constructed.

(b) Obligations of the corporation may be sold at either public or private sale in such a manner and at such a price or prices and at such time or times as may be determined by the board of directors to be most advantageous. Notwithstanding the foregoing, none of the obligations may be sold for a price less than 97 percent of par or face value. Subject to the provisions and limitations contained in this chapter, the corporation may from time to time sell and issue refunding bonds for the purpose of refunding any matured or unmatured bonds of the corporation then outstanding. Approval by the Governor of Alabama of the terms and conditions under which any bonds of the corporation may be issued shall be requisite to their validity. The approval shall be entered on the minutes of the meetings of the board of directors at which the bonds are authorized, and shall be signed by the Governor. The approval by the Governor may be, but is not required to be, shown on any of the bonds by a facsimile of his or her signature printed or otherwise reproduced thereon when authorization thereof is contained in the approval signed by him or her. The corporation may pay out of the proceeds from the sale of its bonds all expenses, including fees of attorneys and other charges, which the board of directors may deem necessary and advantageous in connection with the issuance of the bonds. Bonds issued by the corporation shall not be general obligations of the corporation but shall be payable solely out of the funds appropriated and pledged therefor in Section 23-6-10. As security for the payment of the principal of and interest on any bonds issued by it, the corporation may pledge for payment of the principal and interest the funds that are appropriated and pledged in Section 23-6-10 hereof for payment of the principal and interest. The pledges made by the corporation shall take precedence in the order of the adoption of the resolution containing the pledges. All contracts made and all bonds issued by the corporation pursuant to this chapter shall be solely and exclusively obligations of the corporation and shall not be an obligation or debt of any kind of the State of Alabama. Bonds issued by the corporation shall be construed to have all the qualities and incidents of negotiable instruments subject to the registration provisions pertaining to transfers. All bonds issued by the corporation and the income therefrom shall be exempt from all taxation in the State of Alabama. Any bonds issued by the corporation may be used by the holder thereof as security for any funds belonging to the state or to any instrumentality or agency of the state in any instance where security for the deposits may be required by law. Unless otherwise directed by the court having jurisdiction thereof, or by the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust and other fiduciary funds in bonds of the corporation. Neither a public hearing nor consent by the state Department of Finance or any other department or agency shall be a prerequisite to the issuance of bonds by the corporation.

Notwithstanding subsection (b), the corporation shall issue no new bonds after the series 1995 bonds, dated August 1, 1995. After all of the available bond proceeds have been obligated for industrial access roads and bridges projects, future projects shall be funded from the revenues of the state Public Road and Bridge Fund of the State Department of Transportation. There is appropriated eleven million dollars ($11,000,000) annually for the construction of industrial access roads and bridges in the state from the state Public Road and Bridge Fund. The annual appropriation shall begin with the 1995-96 fiscal year. This appropriation shall be available to obligate for projects of the corporation, upon the approval of the State Department of Transportation and the Governor, but solely for the purpose of constructing, reconstructing, and relocating industrial access roads and bridges and work incidental and related thereto including the acquisition of property necessary therefor. Funds thus appropriated shall remain in the state Public Road and Bridge Fund and shall be paid out of the state Public Road and Bridge Fund by the State Department of Transportation for obligations by the corporation on industrial access roads and bridges projects.

(Acts 1985, No. 85-549, p. 833, §8; Acts 1991, No. 91-251; Acts 1996, No. 96-374, p. 458, §1.)

§ 23-6-8.1 Annual Appropriation from Public Road and Bridge Fund

The annual appropriation from the Public Road and Bridge Fund shall remain a part of the Public Road and Bridge Fund but still be maintained in a special account within the State Treasury. Said funds shall at all times be invested in the same manner allowed for all other State Treasury investments and all investment earnings shall remain within this special account and are hereby appropriated to be allocated by the Alabama Industrial Access Road and Bridge Corporation for Alabama Industrial Access Road and Bridge Projects.

(Acts 1996, No. 96-374, p. 458, §2.)

§ 23-6-9 Disposition of Bond Proceeds; Refunding Bonds; Contracts for Construction; Work Done Without Contract; Property Acquired by Corporation; Security Controls; Ownership; Appropriations

(a) The proceeds of all bonds, other than refunding bonds, issued by the corporation, remaining after paying the expenses of their issuance, shall be turned into the treasury, shall be carried in a special industrial access road and bridge construction account, and shall be available to be drawn upon by the corporation, upon the approval of the State Department of Transportation and the Governor, but solely for the purpose of constructing, reconstructing, and relocating industrial access roads and bridges, incidental or related work, and the acquisition of necessary property. Monies on deposit in the industrial access road and bridge construction account shall be invested by the State Treasurer at the direction of the corporation in permitted investments which mature at such time or times as the corporation shall direct. Net interest income earned from the investment of bond proceeds deposited into the industrial access road and bridge construction account shall be deposited as received by the State Treasurer into the state Public Road and Bridge Fund to be used for state highway purposes.

(b)(1) The proceeds from the sale of any refunding bonds of the corporation remaining after paying the expenses of their issuance shall be used only for the purpose of refunding outstanding bonds of the corporation and of paying any premium that may be necessary to be paid in order to redeem or retire the bonds to be refunded.

(2) Bonds refunded prior to their maturity with the proceeds of refunding bonds shall be defeased if the corporation, in its proceedings regarding issuance of the refunding bonds, provides for and establishes a trust or escrow fund comprised of monies or government securities, or both, sufficient to pay, when due, the entire principal of, premium, if any, and interest on the refunded bonds; provided, that such government securities shall not be subject to redemption prior to their maturities other than at the option of the holder thereof.

(3) Upon the establishment of the trust or escrow fund, the refunded bonds shall:

a. No longer be deemed to be outstanding;

b. No longer be secured by the funds pledged therefor in Section 23-6-10 of this chapter;

c. No longer be obligations of the corporation; and

d. Be secured solely by and payable from monies and government securities deposited in such trust or escrow fund.

(c)(1) All contracts of the corporation for the construction, reconstruction, relocation of industrial access roads and bridges, incidental or related work, and the acquisition of necessary property shall be as follows:

a. In writing.

b. Subject to the rules of the State Department of Transportation.

c. Subject to approval by the Governor and by the State Department of Transportation.

(2) All work provided for in any such contract shall be supervised by the State Department of Transportation.

(d) All individuals engaged in the supervision or performance of any work of construction, reconstruction, or relocation that is undertaken by the corporation without the award of a contract shall be employees of the State Department of Transportation.

(e) Any property acquired by the corporation by purchase, condemnation, or otherwise shall be acquired in the name of the state or shall be forthwith conveyed to the state.

(f) All roads and bridges constructed by the corporation shall constitute part of the public highway and street system of the state. However, a private facility may establish reasonable security controls on a constructed access roadway, in cooperation with local law enforcement agencies, for the protection of its facility and employees, including but not limited to an access gate, turn around lane, or enclosed structure. These security controls shall not be considered a privatization of the public roadway.

(g) Notwithstanding any other provision of law to the contrary, a road constructed by or for a business entity pursuant to an executed project agreement with the state in accordance with Section 40-18-374 shall be considered an industrial access road and bridge for purposes of this chapter and may be owned by the business entity.

(h) There is appropriated so much of the bond proceeds as may be necessary for the construction of industrial access roads and bridges in the state.

(Acts 1985, No. 85-549, p. 833, §9; Act 2023-530, §1.)

§ 23-6-10 Revenues of Corporation

For the purpose of providing funds to enable the corporation to pay the principal of, premium, if any, and interest on any bonds issued by it under the provisions of this chapter, and to accomplish the purposes and objects of its creation, there hereby are irrevocably pledged to such purpose and appropriated so much as may be necessary for such purpose of the following: The State Department of Transportation’s portion of the four cent per gallon excise tax levied on gasoline, motor fuel, and lubricating oil under the provisions of Title 40, Chapter 17, Article 6. All moneys hereby appropriated and pledged shall constitute a sinking fund for the purpose of paying the principal of, premium, if any, and the interest on bonds of the corporation.

(Acts 1985, No. 85-549, p. 833, §10.)

§ 23-6-11 State Treasurer to Disburse Funds

Out of the revenues appropriated and pledged in Section 23-6-10, the State Treasurer is authorized and directed to pay the principal of, premium, if any, and interest on the bonds issued by the corporation under the provisions of this chapter, as such principal, premium, if any, and interest shall respectively mature, and he is further authorized and directed to set up and maintain appropriate records pertaining thereto.

(Acts 1985, No. 85-549, p. 833, §11.)

§ 23-6-12 Dissolution of Corporation

At any time when no bonds of the corporation are outstanding the corporation may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the members of the corporation and which shall be sworn to by each such member before an officer authorized to take acknowledgments to deeds. Upon the filing of said application for dissolution, the corporation shall cease and any property owned by it at the time of its dissolution shall pass to the State of Alabama. The Secretary of State shall file and record the application for dissolution, in an appropriate book of record in his office, and shall make and issue, under the Great Seal of the State, a certificate that the corporation is dissolved, and shall record the said certificate with the application for dissolution.

(Acts 1985, No. 85-549, p. 833, §12.)

Chapter 7 Alabama Transportation Infrastructure Bank Act

§ 23-7-1 Short Title

This chapter shall be cited as the Alabama Transportation Infrastructure Bank Act.

(Act 2015-50, §1.)

§ 23-7-2 Definitions

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, 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 that 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 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 2022, 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:

  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.

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 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 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 which exceeds 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 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.

(Act 2015-50, p. 173, §2; Act 2018-290, §1; Act 2023-537, §1.)

§ 23-7-3 Creation; Purpose; Accounts

(a) There is created a public corporation to be known as the Alabama Transportation Infrastructure Bank.

(b) The bank is governed by a board of directors as provided in this chapter.

(c) The corporate purpose of the bank is to select and assist in financing major qualified projects by providing loans and other financial assistance to government units for constructing and improving highway and transportation facilities necessary for public purposes including economic development.

(d) The bank shall establish and maintain at least the following accounts:

(1) State highway account.

(2) Federal highway account.

(Act 2015-50, §3.)

§ 23-7-4 Board of Directors

(a) The board of directors is the governing board of the bank. The board shall consist of seven voting members as follows:

(1) The Director of the Department of Transportation, ex officio, who shall be designated as chair.

(2) The State Finance Director, ex officio, who shall be designated as secretary.

(3) Three members appointed by the Governor.

(4) One member of the House of Representatives appointed by the Speaker of the House of Representatives.

(5) One member of the Senate appointed by the President Pro Tempore of the Senate.

(b) Members appointed by the Governor hold office concurrently with the Governor and until their successors are appointed and qualified. Members appointed by the Speaker of the House of Representatives and the President Pro Tempore of the Senate shall serve during the member’s term of office during which the member was appointed and until the member’s successor is appointed and qualified. The vice chair shall be elected by the board. Any person appointed to fill a vacancy shall be appointed in the same manner as the original appointee for the remainder of the unexpired term.

(c) Any four members of the board of directors shall constitute a quorum for the transaction of business.

(d) All appointing authorities shall coordinate their appointments so that the diversity of gender, race, and geographical areas is reflective of the makeup of this state.

(Act 2015-50, p. 173, §4; Act 2018-290, §1.)

§ 23-7-5 Powers and Functions

(a) In addition to the powers contained in other provisions of this chapter, the bank has all power necessary, useful, or appropriate to fund, operate, and administer the bank, and to perform its other functions including, but not limited to, the following power to:

(1) Have perpetual succession.

(2) Adopt, promulgate, amend, and repeal bylaws, not inconsistent with this chapter for the administration of the bank’s affairs and the implementation of its functions including the right of the board to select qualifying projects and to provide loans and other financial assistance.

(3) Sue and be sued in its own name.

(4) Have a seal and alter it at pleasure, although the failure to affix the seal does not affect the validity of an instrument executed on behalf of the bank.

(5) Make loans to qualified borrowers to finance the eligible costs of qualified projects and to acquire, hold, and sell loan obligations at prices and in a manner as the board determines advisable.

(6) Provide qualified borrowers with other financial assistance necessary to defray eligible costs of a qualified project.

(7) Enter into contracts, arrangements, and agreements with qualified borrowers and other persons and execute and deliver all financing agreements and other instruments necessary or convenient to the exercise of the powers granted in this chapter.

(8) Enter into agreements with a department, agency, or instrumentality of the United States or of this state or another state for the purpose of planning and providing for the financing of qualified projects.

(9) Establish the following:

a. Policies and procedures for the making and administering of loans and other financial assistance.

b. Fiscal controls and accounting procedures to ensure proper accounting and reporting by the bank, and government units.

(10) Acquire by purchase, lease, donation, or other lawful means and sell, convey, pledge, lease, exchange, transfer, and dispose of all or any part of its properties and assets of every kind and character or any interest in it to further the public purpose of the bank.

(11) Procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public entity, including any department, agency, or instrumentality of the United States or this state, for the payment of any bonds issued by it, including the power to pay premiums or fees on any insurance, guarantees, letters of credit, and other forms of collateral or security or credit support.

(12) Collect or authorize the trustee under any trust indenture securing any bonds to collect amounts due under any loan obligations owned by it, including taking the action required to obtain payment of any sums in default.

(13) Unless restricted under any agreement with holders of bonds, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any loan obligations owned by it.

(14) Borrow money through the issuance of bonds and other forms of indebtedness as provided in this chapter.

(15) Expend funds to obtain accounting, management, legal, financial consulting, and other professional services necessary to the operations of the bank.

(16) Expend funds credited to the bank as the board determines necessary for the costs of administering the operations of the bank.

(17) Establish advisory committees as the board determines appropriate, which may include individuals from the private sector with banking and financial expertise.

(18) Procure insurance against losses in connection with its property, assets, or activities including insurance against liability for its acts or the acts of its employees or agents or to establish cash reserves to enable it to act as a self-insurer against any and all such losses.

(19) Collect fees and charges in connection with its loans or other financial assistance.

(20) Apply for, receive, and accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this chapter subject to the conditions upon which the aid, grants, or contributions are made.

(21) Enter into contracts or agreements for the servicing and processing of financial agreements.

(22) To appoint and employ attorneys, accountants, financial advisors, underwriters, trustees, depositories, registrars, fiscal agents, and other advisors, agents, and independent contractors as may be necessary or desirable.

(23) Do all other things necessary or convenient to carry out the purposes and powers conferred by this chapter.

(b) The bank is not authorized or empowered to be or to constitute a bank or trust company within the jurisdiction or under the control of the state or an agency of it or the Comptroller of the Currency or the Treasury Department of the United States, or a bank, banker, or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange, or securities dealers’ law of the United States or this state.

As used in this chapter, the bank is not a “bank” within the meaning of Title 5, including without limitation Section 5-1A-2 and Section 5-1A-3, and is not a “bank” within the meaning of the Alabama Constitution, Sections 247, 248, and 253. Under this chapter, the bank does not accept deposits from the public, its loans are only with qualified borrowers as defined in Section 23-7-2(13), and the bank does not, and is not authorized to, transact banking business with the public.

(c) The bank is subject to the provisions of the Administrative Procedure Act.

(Act 2015-50, §5.)

§ 23-7-6 Funding; Pledge of Revenues

(a) The following sources may be used to capitalize the bank and for the bank to carry out its purposes:

(1) An annual contribution, as determined by the Director of the Department of Transportation and approved by the Governor, of an amount not to exceed revenues produced by one cent ($.01) a gallon of the tax on gasoline imposed pursuant to subdivision (1) of subsection (a) of Section 40-17-325. Any funds contributed pursuant to this subdivision shall be derived from the gasoline tax proceeds collected during the fiscal year remaining in the Public Road and Bridge Fund after distributions of the tax to the cities and counties.

(2) An annual contribution, as determined by the Director of the Department of Transportation and approved by the Governor, of an amount of the revenues collected during the fiscal year pursuant to Section 40-12-248, not to exceed the balance remaining in the Public Road and Bridge Fund pursuant to Section 40-12-270(d)(3), after the distributions required pursuant to Sections 40-12-270(d)(1) and 40-12-270(d)(2). The limitation in this subdivision on the amount of any cash contributions to the bank out of the revenues from the truck and truck tractor license tax and registration fees levied pursuant to Section 40-12-248 is not intended to limit the bank’s authority to pay bonds and other financial assistance from the motor vehicle license tax and registration fee revenues authorized to be used for such purpose in subdivision (1) of subsection (b) or to limit the bank’s ability to pledge the motor vehicle license tax and registration fee revenue for that purpose.

(3) Federal funds made available to the state.

(4) Federal funds made available to the state for the bank.

(5) Contributions and donations from government units, and any other source as may become available to the bank including, but not limited to, appropriations from the Legislature.

(6) All monies paid or credited to the bank, by contract or otherwise, payments of principal and interest on loans or other financial assistance made from the bank, and interest earnings which may accrue from the investment or reinvestment of the bank’s monies.

(7) Proceeds from the issuance of bonds as provided in this chapter.

(8) Other lawful sources as determined appropriate by the board.

(9) Loans from the department to the bank to be repaid from revenues committed to the bank for the following year.

(b) With the recommendation of the Director of the Department of Transportation and approval by the Governor, the following revenue sources may be used to pay and secure bonds and other financial assistance issued by the bank:

(1) The motor vehicle license taxes and registration fees that are provided to be distributed to the state pursuant to the provisions of Division 1 of Article 5 of Chapter 12 of Title 40, remaining after the costs of collection thereof.

(2) The excise taxes levied by subdivision (2) of subsection (a) of Section 40-17-325 on diesel fuel, except for the portion required to be distributed to municipalities and counties pursuant to subsection (b) of Section 40-17-361, remaining after payment of the costs of collection thereof. The term “costs of collection,” as used in this subdivision, shall mean that portion of the excise taxes referred to in this subdivision that may be appropriated by the Legislature to the Department of Revenue for its operating expenses.

(3) The excise tax levied by Article 3 of Chapter 17 of Title 40, remaining after payment of the costs of collection thereof, exclusive of that portion of the tax in respect of gasoline. The term “costs of collection,” as used in this subdivision, shall mean that portion of the excise tax referred to in this subdivision that may be appropriated by the Legislature to the Department of Revenue for its operating expenses.

(4) The receipts from the fee in respect of identification markers on motor vehicles that is provided for in Section 40-17-150.

(c) Any pledge of the revenues and amounts described in subsection (a) or (b) to provide funds for payment of debt service on bonds issued by the bank or to pay obligations of the bank with respect to other financial assistance shall continue until the bonds have been fully repaid or the bank’s obligations with respect to the other financial assistance has terminated, unless the trust indenture, financing agreement, or other related instrument providing for the pledge expressly provides that the pledge may be terminated earlier or otherwise limited by the bank.

(d) Any pledge by the bank of revenues described in subdivision (1) of subsection (a) shall be subordinate to the pledges thereof for the benefit of bonds of Alabama Federal Aid Highway Finance Authority and Alabama Highway Finance Corporation. Any pledge by the bank of revenues described in subdivision (2) of subsection (a) and subsection (b) shall be subordinate to the pledges thereof for the benefit of bonds of the Alabama Highway Finance Corporation. Pledges by the bank of the revenue sources described in subsections (a) and (b) for its bonds or other financial assistance shall take precedence among themselves in the order of the instruments making the pledges, except as otherwise provided in the instruments.

(e) There is hereby irrevocably appropriated to the bank so much of the taxes and fees described in subdivisions (1) and (2) of subsection (a) and subsection (b) as the Director of the Department of Transportation shall from time to time determine and the Governor shall approve for the purpose of providing funds to capitalize the bank and for the bank to carry out its purposes, including, without limitation, amounts pledged for payment of debt service on the bonds of the bank or pledged to pay amounts owed by it under any other financial assistance.

(Act 2015-50, p. 173, §6; Act 2018-290, §1.)

§ 23-7-7 Administration and Operations of Bank

(a) Earnings on balances in the federal highway account, as created by this chapter, must be credited and invested according to federal law. The bank may establish accounts and subaccounts within the state highway account and the federal highway account as considered desirable to effectuate the purposes of this chapter, or to meet the requirements of any state or federal programs.

(b) The bank shall comply with all applicable federal laws and regulations prohibiting the commingling of certain federal funds deposited in the bank.

(c) The operations of the bank shall be administered by the department, as agent for the bank, and the department may establish procedures and adopt rules necessary to administer the operations of the bank in accordance with applicable law and to enter into contracts and other agreements in connection with the operation of the bank including, but not limited to, contracts and agreements with federal agencies, public bodies, the bank, and other parties to the extent necessary or convenient for administration of the bank’s operations. Except as provided in this chapter, acting as agent for the bank, the department shall maintain full authority for the administration of the bank’s operations in accordance with applicable federal and state law.

(Act 2015-50, p. 173, §7; Act 2018-290, §1.)

§ 23-7-8 Loans and Financial Assistance; Eligible and Qualified Projects

(a) The bank may provide loans and other financial assistance to a government unit to pay for all or part of the eligible cost of a qualified project. The term of the loan or other financial assistance must not exceed the useful life of the project. The bank may require the government unit to enter into a financing agreement in connection with its loan obligation or other financial assistance. The board shall determine the form and content of loan applications, financing agreements, and loan obligations including the term and rate or rates of interest on a financing agreement. The terms and conditions of a loan or other financial assistance from the federal highway account shall comply with applicable federal requirements.

(b) The board shall determine which projects are eligible projects and then select from among the eligible projects those qualified to receive from the bank a loan or other financial assistance. Preference shall be given to eligible projects that have the most local financial support. The board shall establish by rule or regulation a minimum amount of local financial support which will be required in order to qualify for loans or grants from the bank. Any such minimum requirement shall be established as a percentage of the total project costs and shall apply to all eligible projects. In selecting qualified projects, the board shall consider the projected feasibility of the project and the amount and degree of risk to be assumed by the bank. The board also may consider, but shall not be limited to, the following criteria in making its determination that an eligible project is a qualified project:

(1) The local support of the project, expressed by resolutions by the governing bodies in the areas in which the project will be located, and the financial or in-kind contributions to the project.

(2) Maximum economic benefit, enhancement of mobility, enhancement of public safety, acceleration of project completion, and enhancement of transportation services.

(3) The ability of the applicant to repay a loan according to the terms and conditions established pursuant to this chapter, consideration of which may include, at the option of the bank board, the existence of current investment grade rating on existing debt of the applicant secured by the same revenues to be pledged to secure repayment under the loan repayment agreement.

(4) The financial or in-kind contributions to the project.

(5) Greater weighting in recommending priorities for eligible projects to areas of the state experiencing high unemployment.

(6) Whether the governing bodies of the county or the incorporated municipality in which the project is to be located provides to the bank a resolution which makes a finding that the project is essential to economic development in the political subdivisions, or the bank receives a certificate from the Alabama Department of Commerce that the project is essential to economic development in the state, or both, at the option of the board.

(Act 2015-50, §8.)

§ 23-7-9 Financing Agreements; Other Authorized Financing; Security Interests

(a) Qualified borrowers may obtain loans or other financial assistance from the bank through financing agreements. Qualified borrowers entering into financing agreements and issuing loan obligations to the bank may perform any acts, take any action, adopt any proceedings, and make and carry out any contracts or agreements with the bank as may be agreed to by the bank and any qualified borrower for carrying out the purposes of this chapter.

(b) In addition to the authorizations contained in this chapter, all other statutes or provisions permitting government units to borrow money and issue obligations may be utilized by any government unit in obtaining a loan or other financial assistance from the bank to the extent determined necessary or useful by the government unit in connection with any financing agreement and the issuance, securing, or sale of loan obligations to the bank.

(c) A qualified borrower may receive, apply, pledge, assign, and grant a security interest in project revenues, and, in the case of a government unit, its project revenues, revenues derived from a special source, ad valorem or other taxes, or, if the government unit is authorized, its full faith and credit, to secure its obligations as provided in this chapter, and may fix, revise, charge, and collect fees, rates, rents, assessments, and other charges of general or special application for the operation or services of a qualified project, the system of which it is a part, and any other revenue producing facilities from which the qualified borrower derives project revenues, to meet its obligations under a financing agreement or to provide for the construction and improving of a qualified project.

(Act 2015-50, p. 173, §9; Act 2018-290, §1.)

§ 23-7-10 Essential Governmental Function of Bank; Taxation

The bank is performing an essential governmental function in the exercise of the powers conferred upon it and is not required to pay taxes or assessments upon property or upon its operations or the income from them, or taxes or assessments upon property or loan obligations acquired or used by the bank or upon the income from them.

(Act 2015-50, §10.)

§ 23-7-11 Failure to Collect or Remit Funds Due; Withholding of Funds

(a) If a government unit fails to collect and remit in full all amounts due to the bank on the date these amounts are due under the terms of any note or other obligation of the government unit, the bank shall notify the State Finance Director who shall direct the withholding of all or a portion of the funds of the state and all funds administered by the state, its agencies, boards, and instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of the amount due.

(b) Nothing contained in this section mandates the withholding of funds allocated to a government unit the withholding of which would violate contracts to which the state is a party, the requirements of federal law imposed on the state, or judgments of a court binding on the state.

(Act 2015-50, p. 173, §11; Act 2018-290, §1.)

§ 23-7-12 Liability Under Chapter

Neither the board nor any officer, employee, or committee of the bank acting on behalf of it, while acting within the scope of authority granted by this chapter, is subject to any liability resulting from carrying out any of the powers given in this chapter, unless the officer or employee acted in an unreasonable or reckless manner.

(Act 2015-50, §12.)

§ 23-7-13 Notice, Publication, Etc., Referenda

Notice, proceeding, or publication, except those required in this chapter, are not necessary to the performance of any power authorized in this chapter nor is any act of the bank subject to any referendum.

(Act 2015-50, §13.)

§ 23-7-14 Investment of Funds

Money in funds or accounts of the bank may be invested in permitted investments; provided, the investment of any federal funds shall comply with any applicable federal requirements.

(Act 2015-50, p. 173, §14; Act 2018-290, §1.)

§ 23-7-15 Annual Report; Audit

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.

(Act 2015-50, p. 173, §15; Act 2018-290, §1; Act 2023-537, §1.)

§ 23-7-16 Construction of Chapter

This chapter, being for the welfare of this state and its inhabitants, shall be liberally construed to effect the purposes specified in this chapter. However, nothing in this chapter shall be construed as affecting any proceeding, notice, or approval required by law for the issuance by a government unit of the loan obligations, instruments, or security for loan obligations.

(Act 2015-50, §16.)

§ 23-7-17 Bonds Authorized

(a) Whenever it shall become necessary that monies be raised for qualified projects, including monies to be used to refund any bonds then outstanding, the bank may issue bonds as provided in this chapter.

(b) The bank may pledge any of its revenue or funds to the payment of its bonds, subject to any prior pledges for other outstanding bonds or other financial assistance of the bank and, in the case of those revenues described in subdivisions (1) and (2) of subsection (a) and subsection (b) of Section 23-7-6, pledges by Alabama Federal Aid Highway Finance Authority and Alabama Highway Finance Corporation of the revenues for bonds issued by those entities. Bonds may be secured by a pledge of any loan obligation owned by the bank, any grant, contribution, or guaranty from the United States, the state, or any corporation, association, institution, or person, any other financial assistance provided by the bank, any bond insurance, guarantees, letters of credit, or other forms of credit enhancement purchased or otherwise obtained by the bank from any public or private entity, any other property or assets of the bank, or a pledge of any money, income, or revenue of the bank from any source.

(Act 2015-50, p. 173, §17; Act 2018-290, §1.)

§ 23-7-18 Liability for Bonds

Bonds, other financial assistance, and other obligations issued by the bank shall not constitute an obligation or debt of this state, or any of its political subdivisions, but shall be limited obligations of the bank payable solely from the revenue, money, or property of the bank pledged for such purpose as provided in this chapter. Any bonds, other financial assistance, or other obligations of the bank issued do not constitute an indebtedness of the state or any of its political subdivisions within the meaning of any constitutional or statutory limitation, and neither the full faith and credit nor the taxing power of the state, or any of its political subdivisions, is pledged to the payment thereof. No member of the bank or any person executing bonds, other financial assistance, or other obligations of the bank is liable personally thereon by reason of their issuance or execution. Each bond, other financial assistance, and other obligation issued under this chapter shall contain on its face a statement to the effect of the following:

(1) The instrument is not a general obligation of the bank, but is a limited obligation of the bank payable solely from the revenue, money, or property of the bank pledged.

(2) The instrument is not an obligation or debt of the state, or any of its political subdivisions, and neither the full faith and credit nor the taxing power of the state, or any of its political subdivisions, is pledged to the payment of the instrument.

(3) The bank does not have taxing power.

(Act 2015-50, p. 173, §18; Act 2018-290, §1.)

§ 23-7-19 Requirements for Bonds

(a) The bonds of the bank must be authorized by a resolution of the bank.

(b) The bonds shall bear the date and mature at the time which the resolution provides, except that no bond may mature more than 40 years from its date of issue.

(c) The bonds may be in the denominations, be executed in the manner, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the bank prior to their issuance.

(d) The bonds may bear interest payable at a time and at a rate as determined by the bank, including the determination by agents designated by the bank under guidelines established by it.

(e) Bonds may be sold by the bank at public or private sale at the price it determines and approves.

(Act 2015-50, p. 173, §19; Act 2018-290, §1.)

§ 23-7-20 Securing of Bonds - Trust Indenture

(a) Bonds may be secured by a trust indenture between the bank and a corporate trustee, which may be the State Treasurer or any bank having trust powers or any trust company doing business in this state. A trust indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders which are reasonable and proper, including covenants setting forth the duties of the bank in relation to the exercise of its powers and the custody, safekeeping, and application of its money. The bank may provide by the trust indenture for the payment of the proceeds of the bonds and all or any part of the revenues of the bank to the trustee under the trust indenture or to some other depository, and for the method of its disbursement with safeguards and restrictions prescribed by it. All expenses incurred in performing the obligations of the bank under the trust indenture may be treated as part of its operating expenses.

(b) Any resolution or trust indenture pursuant to which bonds are issued may contain provisions which are part of the contract with the holders of the bonds and which include the following:

(1) Pledging specific revenues of the bank to secure the payment of the bonds.

(2) Pledging specific assets of the bank including loan obligations owned by it to secure the payment of the bonds.

(3) The use and disposition of the gross income from, and payment of the principal of, and interest on loan obligations owned by the bank.

(4) The establishment of reserves, sinking funds, and other funds and accounts, and their regulation and disposition.

(5) Limitations on the purposes to which the proceeds from the sale of the bonds may be applied, and limitations on pledging the proceeds to secure the payment of the bonds.

(6) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds.

(7) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds, if any, the holders of which must consent to, and the manner in which any consent may be given.

(8) Limitations on the amount of money to be expended by the bank for its operating expenses.

(9) Vesting in a trustee property, rights, powers, and duties as the bank may determine, limiting or abrogating the right of bondholders to appoint a trustee, and limiting the rights, powers, and duties of the trustee.

(10) Defining the acts or omissions which constitute a default, the obligations or duties of the bank to the holders of the bonds, and the rights and remedies of the holders of the bonds in the event of default, including as a matter of right the appointment of a receiver, and all other rights generally available to creditors.

(11) Requiring the bank or the trustee under the trust indenture to take any and all other action to obtain payment of all sums required to eliminate any default as to any principal of and interest on loan obligations owned by the bank or held by a trustee, which may be authorized by the laws of this state.

(12) Any other matter relating to the terms of the bonds or the security or protection of the holders of the bonds which may be considered appropriate.

(Act 2015-50, p. 173, §20; Act 2018-290, §1.)

§ 23-7-21 Securing of Bonds - Pledge

(a) Any pledge made by the bank to secure its obligations with respect to bonds or other financial assistance is valid and binding from the time the pledge is made. The revenue, money, or property pledged and received by the bank is immediately subject to the lien of the pledge without any physical delivery or further act. The lien of any pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the bank, irrespective of whether the parties have notice of the pledge.

(b) No recording or filing of the resolution authorizing the issuance of bonds or other financial assistance, the trust indenture or other financing agreement securing the bonds or other financial assistance, or any other instrument including filings under the Uniform Commercial Code is necessary to create or perfect any pledge or security interest granted by the bank to secure any bonds or other financial assistance.

(Act 2015-50, p. 173, §21; Act 2018-290, §1.)

§ 23-7-22 Purchase of Outstanding Bonds

The bank, subject to agreements with bondholders as may then exist, may purchase outstanding bonds of the bank with any available funds, at any reasonable price. If the bonds are then redeemable, the price shall not exceed the redemption price then applicable plus accrued interest to the next interest payment date.

(Act 2015-50, §22.)

§ 23-7-23 Form and Execution of Bonds

Bonds of the bank shall be in a form and shall be executed in a manner prescribed by the bank.

(Act 2015-50, §23.)

§ 23-7-24 Validity of Signatures on Bonds

If any of the members or officers of the bank cease to be members before the delivery of any bonds signed by them, their signatures or authorized facsimile signatures are nevertheless valid and sufficient for all purposes as if they had remained in office until the delivery of the bonds.

(Act 2015-50, §24.)

§ 23-7-25 Limitation on Amendments

Subsequent amendments to this chapter may not limit the rights vested in the bank with respect to any agreements made with, or remedies available to, the holders of bonds issued under this chapter before the enactment of the amendments until the bonds, with all premiums and interest on them, and all costs and expenses in connection with any proceeding by or on behalf of the holders, are fully met and discharged.

(Act 2015-50, §25.)

§ 23-7-26 Taxation of Bonds and Income

Any bonds issued by the bank, the transfer of bonds, and the income from them, are free from taxation and assessment of every kind by the state and by the local governments and other political subdivisions of the state.

(Act 2015-50, §26.)

§ 23-7-27 Construction and Use of Bonds

(a) The bonds issued by the bank are legal investments in which all public officers or public bodies of the state, its political subdivisions, all municipalities and political subdivisions, all insurance companies and associations and other persons carrying on insurance business, all banks, bankers, banking associations, trust companies, savings banks, savings associations, including savings and loan association investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons who are now or may be authorized in the future to invest in bonds or other obligations of the state, may invest funds in their control or belonging to them.

(b) The bonds of the bank are also securities which may be deposited with and received by all public officers and bodies of the state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of the state is now or may later be required by law.

(Act 2015-50, §27.)

§ 23-7-28 Performance of Contracts by Legal Residents of Alabama

Except as otherwise prohibited by Federal law, all contracts funded with the revenue or bond proceeds which are authorized pursuant to this chapter shall be performed by a workforce which consists of only legal residents of the State of Alabama.

(Act 2015-50, §28.)

§ 23-7-29 Other Financial Assistance Authorized

(a) The granting of other financial assistance by the bank shall be authorized by a resolution of the bank.

(b) The bank may execute instruments and enter into financing agreements, including, without limitation, a trust indenture between the bank and a corporate trustee, which may be the State Treasurer or any bank having trust powers or any trust company doing business in this state, containing the terms and conditions as the bank shall determine in connection with the provision of other financial assistance and securing its obligations with respect to other financial assistance.

(c) The bank may pledge any of its revenues or funds to the payment of other financial assistance provided by the bank, subject to any prior pledges for outstanding bonds or other financial assistance of the bank and, in the case of those revenues described in subdivisions (1) and (2) of subsection (a) and subsection (b) of Section 23-7-6, the pledges by Alabama Federal Aid Highway Finance Authority and Alabama Highway Finance Corporation of the revenues for bonds issued by the entities. Other financial assistance may be secured by a pledge of any loan obligation owned by the bank, any grant, contribution, or guaranty from the United States, the state, or any corporation, association, institution, or person, any other property or assets of the bank, or a pledge of any money, income, or revenue of the bank from any source.

(Act 2018-290, §2.)

§ 23-7-30 Net Earnings of Bank Not to Inure to Benefit of Any Individual, Firm, or Corporation

The bank shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event its board of directors shall determine that sufficient provision has been made for the full payment of the expenses, bonds, other financial assistance, and other obligations of the bank, then any net earnings of the bank thereafter accruing shall be paid to the state.

(Act 2018-290, §2.)

§ 23-7-31 Dissolution of Bank

At any time when no bonds, other financial assistance, or other obligations of the bank are outstanding, the bank may be dissolved upon the filing with the Secretary of State of an application for dissolution, which shall be subscribed by each of the directors of the bank and which shall be sworn to by each director before an officer authorized to take acknowledgments to deeds. Upon the filing of the application for dissolution, the bank shall cease and any property owned by it at the time of its dissolution shall pass to the state. The Secretary of State shall file and record the application for dissolution, in an appropriate book of record in his or her office, and shall make and issue, under the Great Seal of the State, a certificate that the bank is dissolved and shall record the certificate with the application for dissolution.

(Act 2018-290, §2.)

Chapter 8 Rebuild Alabama Act

§ 23-8-1 Short Title

This chapter and Article 12A, Chapter 17 of Title 40, and Sections 11-6-4, 11-6-23, 40-12-242, 40-17-331, as amended by Act 2019-2, shall be known and may be cited as the Rebuild Alabama Act.

(Act 2019-2, 1st Sp. Sess., §1.)

§ 23-8-2 Legislative Findings

The Legislature finds all of the following:

(a) That consistent with the constitutional mandate that navigable waterways are public highways, the Legislature hereby finds as a fact that a portion of the gasoline and diesel fuel sold in this state is used for marine purposes to propel vessels on coastal and inland waterways of this state.

(b) That it is the policy of this state to use a portion of the funds derived from the additional excise tax levied by the Rebuild Alabama Act on each net gallon of gasoline and diesel fuel for the programs and activities of the Alabama State Port Authority.

(c) That the development and growth of electric vehicle transportation infrastructure are considerations in the construction, reconstruction, maintenance, and repair of a modern-day public road, highway, and bridge system in this state.

(d) That the State Department of Transportation is the appropriate agency to initiate the comprehensive planning and administrative duties associated with the development of electric vehicle transportation infrastructure as a part of its regular duties.

(e) That the development of electric vehicle transportation infrastructure is a cost of construction, reconstruction, maintenance, and repair of public roads, highways, and bridges in this state and that the moneys of the Rebuild Alabama Fund may be lawfully used for such purpose.

(f) It is the intention of the Legislature to authorize the creation of, and to hereby create, the Electric Transportation Infrastructure Grant Program as a program of the State Department of Transportation for the purpose of providing grants, funds, and support for the construction, reconstruction, maintenance, and repair of the public roads, highways, and bridges in this state through the procurement, installation, and implementation of electric vehicle transportation infrastructure.

(Act 2019-2, 1st Sp. Sess., §2.)

§ 23-8-3 Definitions

Definitions. When used in this chapter, the following words and phrases shall have the following respective meanings unless the context clearly indicates otherwise:

(1) ALDOT. The Alabama State Department of Transportation provided for in Section 23-1-20.

(2) ATRIP-II COMMITTEE. The Alabama Transportation Rehabilitation and Improvement Program Committee-II established pursuant to this chapter.

(3) ATRIP-II PROJECTS. Those road and bridge rehabilitation and improvement projects submitted to and received by the ATRIP-II Committee for funding in accordance with this chapter.

(4) COSTS. As applied to any road and bridge project, all costs of construction or acquisition of any part thereof, including, but without limitation to, the costs of supervising, inspecting, and constructing any such project and all costs and expenses incidental thereto, the costs of locating, surveying and mapping, development of engineering plans and specifications, resurfacing, restoration and rehabilitation, acquisition of rights-of-way, utility relocation, and improvements which directly facilitate and control traffic flow, including grade separation of intersections, widening of lanes, channelization of traffic, and traffic-control systems.

(5) LEGISLATURE. The Legislature of Alabama.

(6) SPECIAL TAXES. a. The excise taxes levied under subdivisions (1), (2), and (3) of subsection (a) of Section 40-17-325, with the exception of those portions of those taxes levied on aviation fuel and marine gasoline; and

b. The additional annual registration fees imposed pursuant to Section 40-12-274.

(7) STATE. The State of Alabama.

(Act 2019-2, 1st Sp. Sess., §4.)

§ 23-8-4 Rebuild Alabama Fund

There is hereby created the Rebuild Alabama Fund in the State Treasury. All proceeds from the revenues designated to the fund pursuant to the Rebuild Alabama Act less the cost of collection authorized by law shall be deposited into the fund to be expended only as provided in the Rebuild Alabama Act.

(Act 2019-2, 1st Sp. Sess., §5.)

§ 23-8-5 Program Purposes; Annual Report

(a) The net tax proceeds allocated to ALDOT in subsection (c) of Section 40-17-371 shall be used for the following program purposes, and ALDOT shall annually report the results of the programs and itemize the specific projects to the Permanent Joint Transportation Committee of the Alabama Legislature in compliance with such procedures established by or for the committee:

(1) Congestion Relief Program - The purpose of this program is to add capacity to state, U.S., and Interstate routes in highly congested areas of the state. ALDOT shall develop an assessment and prioritization plan to allocate funds for congestion relief projects on the state’s transportation infrastructure.

(2) Economic Development Roads Program - The purpose of this program is to develop and improve transportation infrastructure to enhance economic development efforts in the State of Alabama. ALDOT shall develop an assessment and prioritization plan to allocate funds for economic development road projects with priority given to projects in economically underserved areas of the state.

(3) System Preservation - The purpose of this program is to address the ongoing and growing preservation and maintenance needs of the state’s transportation infrastructure.

(b) ALDOT shall create an annual grant program of no less than ten million dollars ($10,000,000) for use on any classified system of roads and bridges for which any municipal government or county government may apply. All projects granted under this program are to be bid and let by the respective county or municipality following procedures approved by ALDOT. ALDOT shall develop and publish rules to establish funding criteria and create an application process to receive and select projects for funding by September 30, 2019. The first round of grant applications shall be due by November 30, 2019 and award of the grants shall be made by ALDOT on or before January 15, 2020.

(c) There is hereby created an Alabama Transportation Rehabilitation and Improvement Program-II (ATRIP-II) to fund projects of local interest on the state maintained highway system, which may also include local roads and bridges essential to such projects. All ATRIP-II Projects shall be developed and let to contract by ALDOT. The ATRIP-II program shall be an annual program beginning in fiscal year 2020 and shall be funded at an amount of not less than thirty million dollars ($30,000,000) and not more than fifty million dollars ($50,000,000) which amount shall be at the discretion of the Director of ALDOT.

(d) All ALDOT projects funded pursuant to this section shall be let to contract by ALDOT and subject to the following requirements:

(1) ALDOT shall establish and apply Disadvantaged Business Enterprise (DBE) goals in the same manner and consistent with the requirements respecting DBEs of the Federal Highway Administration (FHWA) for road and bridge and other similar contracts funded with federal funds. The DBE goal for ALDOT projects funded pursuant to this section, to the extent reasonably possible, shall be the same as the goal established annually by ALDOT for contracts funded with federal funds and approved by FHWA. ALDOT, to the greatest extent possible, shall ensure that DBE firms are included in the procurement process as early as possible with the objective of ensuring participation levels can be met. ALDOT shall identify qualified DBE vendors during the design process and communicate that list to the prospective prime contractors prior to the bidding process. ALDOT shall provide, on October 1 of every fiscal year of the state, beginning December 1, 2021, for the year commencing October 1, 2020, a report of ALDOT projects let to contract pursuant to this section, including information on the established DBE goals for ALDOT projects, to the Chair of the Joint Transportation Committee, the Governor, the President Pro Tempore of the Senate, the Speaker of the Alabama House of Representatives, the Alabama Senate Minority Leader, and the Alabama House of Representatives Minority Leader.

(2) In the event ALDOT was not successful in meeting their DBE goals in a particular fiscal year, ALDOT shall provide to the Joint Transportation Committee a written strategy along with the annual project report that will outline how the goals will be addressed in the coming fiscal year, including an analysis of the primary reasons that DBEs were unsuccessful bidders and the impediments to successful DBE bids.

(3) ALDOT shall utilize its GFO dated August 14, 2018, for the next four years to design equivalent pavement sections. At that time the department shall evaluate what procedures to adopt going forward in consultation with, or otherwise informing as soon as practicable, the Permanent Joint Transportation Committee. Any exception to the GFO shall be presented to the Joint Transportation Committee.

(4) For the next four years, where feasible and practical, ALDOT shall provide alternative pavement designs utilizing asphalt or concrete materials and shall seek bids.

(Act 2019-2, 1st Sp. Sess., §8.)

§ 23-8-6 Approved Contractors and Suppliers; Bidding

(a) All county and municipal projects let to contract shall utilize contractors and material suppliers listed on the ALDOT’s list of approved contractors and suppliers. ALDOT’s list of approved contractors and material suppliers shall include the ALDOT’s Certified Disadvantaged Business Enterprise List. Beginning October 1, 2020, and October 1 of every other year, each county and municipality shall provide a list of all contractors who have been awarded projects under this section to the President Pro Tempore of the Senate, the Speaker of the House, and the Chair of the Joint Transportation Committee. Notwithstanding any provision of law to the contrary, no bidding shall be required by the county for asphalt or other road construction or repair materials if the county has an annual contract for providing such materials.

(b) For all municipal projects, the appropriate plans and bid opening date shall be published in electronic form no later than the tenth day of the month preceding the bid opening on a website maintained for that purpose by the Alabama League of Municipalities.

(c) The bidding procedures approved by the Department of Examiners of Public Accounts, as authorized in Section 40-17-371(c)(2)d., may be used for any county road and bridge project otherwise subject to Chapter 2 of Title 39.

(d) Bids for county and municipal contracts awarded under this section shall only be awarded in accordance with Section 39-2-6 during a regularly-scheduled meeting of the governmental body of the county or municipality, as the case may be. Immediately after the completion of each project, the publication notifications required by subsection (f) of Section 39-1-1, shall be satisfied by posting on the same website utilized for the posting of specifications and notice of bid openings.

(Act 2019-2, 1st Sp. Sess., §9; Act 2021-146, §2.)

§ 23-8-7 Alabama Transportation Rehabilitation and Improvement Program-Ii Committee

(a) There is hereby created the Alabama Transportation Rehabilitation and Improvement Program-II (ATRIP-II) Committee. The appointing authorities shall coordinate their appointments to assure the committee membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state. All members of the ATRIP-II Committee shall be appointed within 30 days after March 12, 2019, and shall serve until a successor is named. Members of the ATRIP-II Committee shall consist of:

(1) The Director of the State Department of Transportation who shall serve as Chair of the ATRIP-II Committee.

(2) The Lieutenant Governor or his or her designee.

(3) One member appointed by the President Pro Tempore of the Senate.

(4) One member appointed by the Speaker of the House of Representatives.

(5) Four members appointed by the Governor, at least one of whom shall be a representative of local governments, and at least one of whom shall be a minority.

(b) The ATRIP-II Committee may enter an agreement with any funding authority or bank that is authorized to issue tax exempt debt for infrastructure purposes to pledge any of the annual revenue proceeds allocated for its use in subsection (c) of Section 40-17-371 as payment for any loan or debt indenture.

(c) Within 60 days after March 12, 2019, the ATRIP-II Committee shall convene to develop and adopt procedures for the allocation of any revenue proceeds allocated for its use and for the selection and authorization of projects to be funded from the revenue dedicated by the Director of ALDOT for the ATRIP-II program in accordance with subsection (c) of Section 23-8-5. The procedures shall ensure that project selection shall be for projects related to the state maintained highway system, which may also include local roads and bridges essential to such projects, proposed by one or more local governments. In addition, the policies shall be developed with an emphasis on the economic growth, public safety, and stability of this state. The procedures shall also include provisions to ensure that all projects selected by the ATRIP-II Committee shall be bid and let to contract by ALDOT in accordance with any applicable provisions of law. After the ATRIP-II Committee develops and adopts procedures for the allocation of any revenue proceeds and the selection and authorization of projects to be funded from the revenue proceeds, a copy of the procedures shall be distributed to each of the counties and municipalities of the state and shall be posted on the ALDOT website.

(d) The ATRIP-II Committee, in reviewing ATRIP-II projects submitted to it for funding pursuant to this section, shall appraise and consider information that may be submitted by counties and municipalities in the applications with respect to those projects concerning its contracting with businesses or individuals in carrying out such projects that reflect the racial and ethnic diversity of the state. A report on the contracting information submitted by counties and municipalities shall be distributed by the ATRIP-II Committee annually to the Governor, the President Pro Tempore of the Senate, the Speaker of the Alabama House of Representatives, the Chair of the Joint Transportation Committee, the Alabama Senate Minority Leader, and the Alabama House of Representatives Minority Leader no later than October 1 of each year, beginning on October 1, 2020.

(Act 2019-2, 1st Sp. Sess., §10.)

§ 23-8-8 Deposit and Use of Funds; Audit; Annual Plan

(a) The monies paid to counties or municipalities pursuant to Section 40-17-371 shall be deposited into a separate fund maintained by the county or municipality and expended only for one or more of the following:

(1) The maintenance, improvement, replacement, and construction of roads and bridges maintained by a qualified county.

(2) The maintenance, improvement, replacement, and construction of roads and bridges maintained by a qualified municipality.

(3) As matching funds for federal road or bridge projects.

(4) The payment of any debt associated with a road or bridge project.

(5) For a joint road or bridge project with one or more adjoining counties pursuant to any agreement executed under the authority of state law.

(6) For a joint road or bridge project with one or more municipalities pursuant to any agreement executed under the authority of state law.

(7) For a joint road or bridge project with one or more counties and municipalities pursuant to any agreement executed under the authority of state law.

(b) The county or municipality shall not use any monies from the fund for any of the following purposes:

(1) Salaries, benefits, or any other form of compensation for county, municipal, or contract employees or for county or municipal officials except as included as project costs and subject to audit by the Department of Examiners of Public Accounts.

(2) The purchase, lease, or maintenance of equipment, other than equipment purchased and permanently installed as a part of a road or bridge project.

(3) The maintenance or construction of public buildings or other structures that are not integral to the system of roads or bridges.

(c) All fund records shall be audited by the Department of Examiners of Public Accounts in the same manner as all other county or municipal funds.

(d) The county commission of each qualified county or municipal governing body of each qualified municipality shall adopt an annual transportation plan no later than August 31 for the next fiscal year, which plan shall be approved by affirmative vote of a majority of the members of the county commission or municipal governing body. The plan shall provide a detailed list of projects for which expenditures are intended to be made in the next fiscal year based upon an estimate of the revenues anticipated from the fund during the fiscal year. Once adopted, the annual plan shall at all times be posted in conspicuous places at the county courthouse, the county commission office, the county highway department, municipal hall, the mayor’s office, the municipal highway department, and any other places deemed appropriate by the county commission or municipal governing body. Additionally, the plan shall be posted on its respective official government website, if available.

(e) At the first meeting in January of each year following the creation of the fund, the county or municipal engineer or other person designated by the county commission or municipal governing body shall present to the county commission or municipal governing body an annual written report detailing expenditures made from the fund during the previous fiscal year, which report shall include the status of each project included in the previous fiscal year’s transportation plan. The report shall be entered into the minutes of the county commission or municipal governing body meeting and shall be made available to the public for inspection, including posting on the county’s or municipality’s website, if available.

(f) By January 15 of each year, the county engineer shall submit a certificate of compliance verifying that at least fifty percent (50%) of funding for the last fiscal year was let to contract, and shall file the certificate with the Chair of the Joint Transportation Committee, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives.

(Act 2019-2, 1st Sp. Sess., §11.)

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