HB649 Alabama 2012 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsor

Charles O. Newton

Session

Regular Session 2012

Title

Oil and gas, portion of the annual proceeds of the oil and gas production tax to the State Oil and Gas Board of Alabama and the Geological Survey of Alabama, Sec. 9-17-31 am'd

Summary

HB649 would divert part of Alabama's oil and gas production tax revenue to fund the State Oil and Gas Board and the Geological Survey, reducing reliance on the General Fund for these agencies.

What This Bill Does

It creates a monthly distribution of oil and gas tax proceeds. Each month, 23% of the tax proceeds from the fiscal year ending two years prior (or at least $7,000,000, whichever is greater) would be split 50/50 between the State Oil and Gas Board of Alabama and the Geological Survey of Alabama to cover their regulatory and resources work. The Legislature would appropriate these funds, and the remaining balance would go to the General Fund for other uses; the Board and Survey funding is intended to supplant base General Fund appropriations, though the Legislature could still provide special funding for specific projects. The act would take effect October 1, 2012.

Who It Affects

• State Oil and Gas Board of Alabama — would receive 50% of the new 23% tax-proceeds allocation to cover expenses of regulation and management of oil and gas exploration and development programs.
• Geological Survey of Alabama — would receive 50% of the new 23% tax-proceeds allocation to support exploring, examining, and reporting on minerals, energy, water, and other natural resources.

Key Provisions

• Amends Section 9-17-31 to allocate 23% of annual oil/gas tax proceeds to two state agencies, distributed monthly starting Oct 2012.
• The 23% allocation is based on the fiscal year ended two years prior to the current year and must be at least $7,000,000 if that amount is greater.
• The 23% is split 50% to the State Oil and Gas Board and 50% to the Geological Survey, for their respective duties.
• Funds are to be expended solely through legislative appropriation and are intended to supplant base General Fund appropriations for these agencies.
• The remaining tax proceeds go to the State General Fund for appropriation by the Legislature.
• Effective October 1, 2012.
• The bill does not change the existing oil and gas production tax rates (2% generally, 1.66% offshore) but changes how the proceeds are allocated.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Oil and Gas