SB395 Alabama 2012 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

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

SB395 would amend Alabama's constitution to increase bonding authority and redirect oil and gas payments to new trust funds for capital improvements, while adding diversity requirements for bond contracting.

What This Bill Does

It would propose a constitutional amendment to raise the state’s bonding authority and authorize General Obligation Bonds. It would direct a portion of annual oil and gas capital payments into two dedicated capital-improvement trust funds to pay debt service. It would require competitive bidding on bond issuance and require the Bond Commission to contract with diverse, racially and ethnically representative Alabama businesses. It would repeal Amendment 796 and require voter approval in a statewide election.

Who It Affects

• State government and the Bond Commission: expanded bonding authority, new debt issuance rules, and requirements to contract with diverse businesses.
• Local governments and residents: funds for capital improvements would be paid from new trust funds funded by oil and gas payments, affecting debt service and potential local projects.

Key Provisions

• Increase total bonding authority under Amendment 666 (Sections IV, VIII, IX).
• Direct a portion of Oil and Gas Capital Payments into two new special trust funds—County and Municipal Government Capital Improvement Fund and Alabama Capital Improvement Trust Fund—to cover debt service.
• Authorize General Obligation Bonds with a specified upper limit and require sale by public bidding or sealed bids at lowest true interest cost; Bond Commission to contract with diverse Alabama businesses for issuance-related work.
• Repeal Amendment 796 (Section 219.041) upon ratification.
• Require an election for voter approval of the proposed constitutional amendment.

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