Bill Commons
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-HB135 INTRODUCED
-Page 0
-HB135
-HGYY488-1
-By Representative Brown
-RFD: Ports, Waterways and Intermodal Transit
-First Read: 13-Jan-26
-PFD: 08-Jan-26
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-HGYY488-1 11/12/2025 JRF (F)JRF 2025-3116
+FN-AR89GQS-1
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-PFD: 08-Jan-26
-SYNOPSIS:
-This bill would create the Alabama Port
-Infrastructure Grant Program and Alabama Port
-Infrastructure Fund to fund grants for ports within
-this state.
-This bill provides for the Alabama Department of
-Economic and Community Affairs to administer the
-program and funding of the program.
-A BILL
-TO BE ENTITLED
-AN ACT
-Relating to ports; to create the Alabama Port
-Infrastructure Grant Program and Alabama Port Infrastructure
-Fund; to amend Sections 41-23-130, 41-23-131, 41-23-132,
-41-23-133, and 41-23-134, Code of Alabama 1975; to provide for
-the administration of the program by the Alabama Department of
-Economic and Community Affairs; and to provide for funding of
-the program.
-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
-Section 1. Sections 41-23-130, 41-23-131, 41-23-132,
-41-23-133, and 41-23-134, Code of Alabama 1975, are amended to
-read as follows:
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-read as follows:
-"§41-23-130
-When used in this article, the following words and
-phrases have the following meanings unless the context clearly
-indicates otherwise:
-(1) DEPARTMENT or ADECA. The Alabama Department of
-Economic and Community Affairs.
-(2) FUND. The Alabama Port Infrastructure Fund created
-by Section 41-23-132.
-(1)(3) INLAND PORTS PORT . Inland Any ports port , including
-ports a port owned or operated by the Alabama State Port
-Authority, arethat is physical sites physically located away
-from traditional land, air, and coastal borders with the
-vision to facilitate and process international and domestic
-trade through strategic investment in multi-modal multimodal
-transportation assets and by promoting value-added services as
-goods move through the supply chain. The term specifically
-excludes the Port of Mobile.
-(2)(4) INTERMODAL FACILITY. A transportation element
-that accommodates and interconnects different modes of
-transportation and serves intrastate, interstate, and
-international movement of people and goods and facilitates the
-movement of goods on two or more modes involving either direct
-transfer or intermediate storage.
-(5) PORT. Any inland port as defined in subsection (3),
-public port located in coastal areas, or the Port of Mobile.
-(3)(6) PORT FACILITY. Any authority, municipality,
-county, or publicly owned inland port through which cargo is
-transported by way of waterborne ship, barge, or railroad, to
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-transported by way of waterborne ship, barge, or railroad, to
-or from destinations inside or outside this state and which
-handles cargo owned by third parties .
-(7) PROGRAM. The Alabama Port Infrastructure Grant
-Program created by Section 41-23-131. "
-"§41-23-131
-(a) The Alabama Port Infrastructure Grant Program Inland
-Ports and Intermodal Development Fund is created within the
-Alabama Department of Economic and Community Affairs to
-receive appropriations from the State General Fund for the
-purpose of financing improvements to existing publicly owned
-inland ports and intermodal facility infrastructure . The
-program shall award grants to fund the improvement,
-maintenance, and construction of ports and intermodal
-facilities within the state . Funding for the grant
-program Grants shall be awarded on a competitive bid basis for
-inland port and intermodal facility port and intermodal
-facility projects that will have a significant local or
-regional impact. Priority of funding shall be given to inland
-ports and intermodal facilities that have proven performance
-in reducing congestion on public highways and increasing
-tonnage at port facilities and that will enhance regional
-competitiveness for port operators and users.
-(b) Any project funded from this program shall meet the
-following requirements:
-(1) The minimum amount of participation for local
-matching funds is 20 percent of the project amount.
-(2) The amount awarded from the program may not exceed
-50 percent of the total budgeted project costs.
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-50 percent of the total budgeted project costs.
-(3) The award amount of an individual grant may not
-exceed 20 percent of the total grant funds awarded in a single
-fiscal year.
-(4) The indirect costs and administrative costs of the
-project may not exceed 10 percent of the amount awarded.
-(c) The department shall develop application procedures
-and eligibility criteria for the program and shall award
-grants to facilitate the program. Grants shall be awarded
-based on a competitive scoring system developed by the
-department. The department may fund partial awards if funding
-requested from the program exceeds the amount of available
-funding.
-(b)(d) To receive funds under this article, an inland a
-port or intermodal facility shall file an application with the
-department describing how the funds will be used and any other
-information the department may require. No application shall
-be approved or funds distributed unless the expenditure of
-funds are:
-(1) Directly related to capital improvements, dredging
-for project development in the immediate vicinity of an
-existing inland port, economic development of an inland a port
-facility, or the rebuilding or rehabilitation of basic
-waterway and port infrastructure;
-(2) For a project or use directly related to intermodal
-infrastructure development;
-(3) For a purpose outside the normal operating budget
-of an inland a port , or intermodal infrastructure facility , or
-a river-related community; or
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-a river-related community; or
-(4) For purposes of making improvements to ports or
-intermodal infrastructure facilities;
-(4)(5) For purpose of assessment or planning or for
-efforts to grow and expand ports or intermodal infrastructure
-facilities; or
-(6) For purposes of establishing or constructing new
-ports, or to acquire land for new ports, if a feasibility
-study and competitive analysis have been conducted and
-submitted for review to the department .
-(c)(e) Funding shall not be approved used for routine
-maintenance, administrative, and operational expenses, or for
-the dredging of waterways within the state that are not in the
-immediate vicinity of an inland a port facility . Additionally,
-the use of funding to establish or construct new inland ports,
-or to acquire land for new inland ports, shall not be eligible
-for funding unless a feasibility study and competitive
-analysis have been conducted and submitted for review to the
-department ."
-"§41-23-132
-(a) The Alabama Port Infrastructure Fund is created in
-the State Treasury to be administered by the department to
-fund the program. The fund is subject to appropriations by the
-Legislature. Monies in the fund shall only be expended for
-purposes listed in this article. The fund shall be budgeted
-and allotted in accordance with Article 4 of Chapter 4 of
-Title 41 and Chapter 19 of Title 41.
-(a)(b) Notwithstanding any other provision of law to
-the contrary, the Legislature shall annually appropriate
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-the contrary, the Legislature shall annually appropriate
-twofive million dollars ($2,000,000) ($5,000,000) from the
-State General Fund to the Alabama Department of Economic and
-Community Affairs to establish a grant program to facilitate
-and coordinate inland port and transfer facility development,
-improvement, maintenance, onsite storage, moorings, and
-construction fund the program . The appropriation shall be
-effective beginning fiscal year 2026 and continue through the
-2028 fiscal year, unless continued by an act of the
-Legislature.
-(b)(c) Upon appropriations, the monies shall be kept in
-the Inland Ports and Intermodal Development Fund fund created
-in this section Section 41-23-131 and shall be subject to audit
-by the Department of Examiners of Public Accounts in the same
-manner as all other department funds. Any unexpended monies
-remaining in the fund at the end of the fiscal year shall
-remain in the fund and shall not revert . to the State General
-Fund. The amount of the appropriation for the upcoming fiscal
-year appropriation shall be reduced by the amount carried
-forward such that the department will have no more than five
-million dollars ($5,000,000) in any single fiscal year to
-administer the grant program. Any monies that remain
-unexpended at the end of the third fiscal year shall revert to
-the State General Fund. Any unencumbered funds remaining
-pursuant to this article after three years shall revert to the
-State General Fund
-(d) No more than three percent of the total amount
-appropriated for the program in any fiscal year may be
-expended for administration of the program.
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-expended for administration of the program.
-(e) For any fiscal year in which grants are awarded
-under the program, by the first day of the next regular
-session of the Legislature, the department shall publish an
-annual report regarding the grants awarded under the program
-during the prior fiscal year. The report shall include the
-improvements made to ports and intermodal facilities supported
-by grant funds ."
-"§41-23-133
-(a) This article shall not apply nor have any effect on
-any state agency currently having with control over local port
-or infrastructure commissions or authorities.
-(b) This article shall not change affect any existing
-other laws that apply to any existing port or infrastructure
-commission or authority, or to powers presently provided for
-conducting and developing the water transportation industry,
-and all such existing laws are expressly preserved and shall
-not be preempted by this article.
-(c) No provision of this article shall be construed to
-authorize any diversion from local port or infrastructure
-commissions or authorities of fees, funds, donations, grants,
-or monies to which the commission or authorities are otherwise
-entitled .
-(d) Nothing in this article shall be construed to limit
-any port's ability to receive funding from other sources as
-provided for by state or federal law ."
-"§41-23-134
-The Alabama Department of Economic and Community
-Affairs department shall adopt rules, restrictions, and
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-Affairs department shall adopt rules, restrictions, and
-eligibility requirements as are necessary to implement and
-administer this article."
-Section 2. This act shall become effective on October
-1, 2026.
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+FISCAL NOTE
+House Bill 135
+Committee: Ways and Means General Fund Sponsor: Representative Chip Brown
+Analyst: Jennifer Farish Date: 02/02/2026
+House Bill 135 as introduced would name the existing port grant program the Alabama Port
+Infrastructure Grant Program. This bill would specifically allow the program to fund
+improvement, maintenance, and construction of ports and intermodal facilities.
+Additionally, this bill would:
+1. Rename the Inland Ports and Intermodal Development Fund to the Alabama Port
+Infrastructure Fund;
+2. Increase the required appropriation to the program from $2 million, under current law, to $5
+million;
+3. Limit the grant amount to 50% of total budgeted project costs;
+4. Prohibit any individual grant from exceeding 20% of total grant funds awarded in a single
+fiscal year;
+5. Cap indirect costs and administrative costs at 10% of awarded amount;
+6. Allow funds to be awarded to public ports in coastal areas and the Port of Mobile, in
+addition to inland ports, as provided by current law;
+7. Cap the amount of funds that may be used for administration of the program at 3%; and
+8. Require ADECA to submit an annual program report to the Legislature.

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