The Legislature adjourned the 1st Special Session sine die on Tuesday, March 12 after passing the three bills by Representative Bill Poole that were Governor Ivey’s Rebuild Alabama Infrastructure plan. Governor Ivey signed all 3 bills in a ceremony after the Legislature adjourned.
HB1 (Act No. 2019-1) amends the statute that created the Permanent Joint Legislative Transportation Committee which will review the long-range plans and budgets of the Alabama Department of Transportation. Among the revisions is an increase from seven members of each House to twelve members, establishes specific dates for quarterly meetings of the committee, requires an annual report from each city and county reporting revenues collected and expenditures made on road and bridge maintenance and improvements, sets out what is expected to be presented to the committee by the Alabama Department of Transportation at each meeting and, beginning in 2020, removes any member from the committee if they are absent from two of the four quarterly meetings in any calendar year.
HB2 (Act No. 2019-2) levies an additional excise tax on gasoline and diesel fuel and provides for the collection and distribution of the proceeds for state, county, municipal and State Port Authority transportation infrastructure purposes. Among the provisions of the bill are:
Gasoline and Diesel Fuel: Effective August 31, 2019, an additional excise tax of six cents per gallon is imposed;
Effective October 1, 2020, an additional excise tax of two cents per gallon is imposed;
Effective October 1, 2021, an additional excise tax of two cents per gallon is imposed;
Beginning October 1, 2023, and on July 1 of every subsequent year, the excise tax rate will be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) with the maximum amount of increase or decrease not to exceed one cent per gallon;
The taxes collected will be deposited into the Rebuild Alabama Fund and distributed as follows:
The Alabama Department of Revenue will retain .25 percent (one-quarter of 1 percent) for the administration of the excise tax;
Each month, prior to the remaining payments, up to $750,000 of the tax proceeds from gasoline and up to $230,000 of the tax proceeds from diesel fuel shall be distributed first to the Alabama Highway Finance Corporation for payment on a $150 million bond to be issued to finance deepening and widening of the ship channel at Alabama’s Seaport;
Of the remaining funds:
66.67 percent to ALDOT to be used for transportation infrastructure improvement
preservation and maintenance projects;
Beginning October 1, 2019, and each October 1 thereafter, ALDOT will allocate $400,000 to each county in exchange for the annual federal allocation of $533,000 which was being distributed to each county;
25 percent shall be allocated to counties as follows:
45 percent divided equally among the 67 counties;
55 percent allocated on the basis of the ratio of the population of each county to the total population of the state;
8.33 percent shall be allocated to municipalities as follows:
25 percent allocated equally among the municipalities of the state;
75 percent allocated among the municipalities on the basis of the ratio of population to the total population of all municipalities in the state;
Electric and Hybrid Vehicles:
Effective January 1, 2020, an annual license tax and registration fee of $200 on each
electric vehicle and an annual license tax and registration fee of $100 on each hybrid
vehicle;
Beginning July 1, 2023 and every fourth year thereafter, an increase on all license taxes
and registration fees of $3.00;
Creates the Electric Transportation Infrastructure Grant Program within the State
Department of Transportation which will collect and distribute the fees. $150 of the fee collected from each electric car and $75 of the fee of each hybrid car will be distributed as follows:
66.67 percent to the state;
25 percent to counties;
8.33 percent to cities;
The remainder of each fee will be deposited into the Rebuild Alabama Fund;
Other Provisions:
Creates the Alabama Transportation Rehabilitation and Improvement Program-II (ATRIP-II) to fund grant projects of local interest on the state maintained highway system which may include local roads and bridges essential to such projects.
HB3 (Act No. 2019-3) that authorizes the Alabama Highway Finance Corporation to have additional powers to borrow money and issue bonds to improve the Mobile Ship Channel.
Beth Marietta Lyons Lyons Law Firm 9 North Conception Street Mobile, Alabama 36602 [email protected] Office: 251/690-9111 Cell: 251/680-9710
