SB147 Alabama 2012 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Trip Pittman
Republican
Co-Sponsor: Arthur Orr
Session: Regular Session 2012
Title: Alabama Trust Fund, unrealized capital gains, oil and gas capital payments received during fiscal year, excluded from the calculation, clarified, realized gains from a public exchange traded equity asset, purchased and sold in same fiscal year, calculation method established, Amendment 666 (Section 219.04, Recompiled Constitution of Alabama of 1901, as amended), am'd., const. amend.
Summary: SB147 would amend Alabama’s Constitution to change how the Alabama Trust Fund is distributed, shifting funds to the State General Fund through 2014-2015 and creating a new advisory process for County and Municipal Government Capital Improvement Funds.
What This Bill Does
It establishes a new annual distribution from the Alabama Trust Fund starting in 2012-2013 based on a formula using oil and gas payments and the fund's invested assets, with portions allocated to the County and Municipal Government Capital Improvement Funds, Forever Wild, the Alabama Senior Services Trust Fund, and the State General Fund. It also creates a 5% distribution from the County/Municipal Fund’s invested assets split evenly between the County and Municipal Improvement Funds, and allows the Board of Trustees to reduce distributions under adverse market conditions. The amendment creates an advisory committee for the County and Municipal funds, restricts certain transfers from Rainy Day Accounts, and requires a fixed transfer to the State General Fund from the Alabama Trust Fund for 2012-2015. It repeals conflicting provisions of previous constitutional amendments and related code sections.

Who It Affects
State General Fund, Forever Wild Land Trust, Alabama Senior Services Trust Fund, and other state financial accounts receive specified portions of the Alabama Trust Fund distributions (including a mandated transfer to the State General Fund from 2012-2015).
County Government Capital Improvement Fund and Municipal Government Capital Improvement Fund receive 10% of the primary distribution (and 50% of the 5% annual County/Municipal asset distribution), with the potential for funds to be adjusted under market conditions.

Key Provisions
Section 1(a): Beginning in 2012-2013, annual distributions from the Alabama Trust Fund equal 33% of the prior year's oil and gas payments plus 5% of the average market value of invested assets (over the last three years). Allocations are 10% to the County Fund, 10% to the Municipal Fund, up to 15 million dollars (or 1% of the amount distributed up to 1 million dollars if the 2011-315 amendment is not ratified) to Forever Wild (or to Forever Wild Stewardship Account if not ratified), 1% to the Forever Wild or Stewardship, up to 5 million dollars to the Alabama Senior Services Trust Fund, with the remainder to the State General Fund. (Also includes a cap and alt. provisions based on ratification status.)
Section 1(b): Beginning 2012-2013, an additional 5% of the County/Municipal Fund invested assets (three-year average) is distributed 50% to the County Fund and 50% to the Municipal Fund.
Section 1(c): The Board of Trustees may reduce any distribution if market or financial conditions would harm the invested assets, with a two-thirds vote, at least six months before the new fiscal year.
Section 3: From 2012-2013 onward, when funds are withdrawn from Education Trust Fund Rainy Day Account or General Fund Rainy Day Account, there will be no further transfers into the County and Municipal Government Capital Improvement Fund, and investment income from repayments to Rainy Day Accounts will not go to the State General Fund.
Section 4: From 2012-2013 through 2014-2015, $145,796,943 is transferred annually from the Alabama Trust Fund to the State General Fund.
Section 5: Repeals conflicting provisions of prior amendments and related Code sections (e.g., amendments 450, 543, 666, 668, 803 and Code sections 11-66-5 and 11-29-5).
Section 2: Creates a County and Municipal Government Capital Improvement Trust Fund Advisory Committee with three members from the Alabama League of Municipalities and three from the Association of County Commissions of Alabama; it will advise the Alabama Trust Fund Board on related duties.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments