HB609 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Steve McMillan
Republican
Co-Sponsors: Joe Faust Alan Baker Harry Shiver Randy Davis
Session: Regular Session 2013
Title: Baldwin Co., Oil and Gas Severance Tax Trust Fund, loans to county, repayment, Sec. 45-2-245.20 am'd.
Summary: HB609 allows Baldwin County to borrow money from its Oil and Gas Severance Tax Trust Fund and have the county repay it under specific terms for economic development projects.
What This Bill Does
The bill authorizes Baldwin County to borrow from the Baldwin County Oil and Gas Severance Tax Trust Fund and lets the trustees loan those funds to the county. The loan is a general obligation of the county and must be repaid in equal semi-annual installments over up to 15 years, with interest of 1% more than the 10-year U.S. Treasury rate on the loan date. The borrowed money can be used for economic development projects, including property acquisition, financing or refinancing, and road or bridge work related to development. The trust fund is managed to preserve its corpus, invest primarily in U.S. government obligations (or insured deposits), and distribute up to 90% of net investment income to the county’s General Fund, with 10% added to the corpus; after the fund reaches $15 million, local severance taxes are repealed and any excess revenues are refunded to taxpayers.

Who It Affects
Baldwin County government and its taxpayers, who would incur the loan as a general obligation and see changes in local tax policy once the $15 million deposit threshold is reached.
Local businesses and developers in Baldwin County, who could benefit from financed economic development projects and improved roads/bridges funded by the loan.

Key Provisions
Authorizes Baldwin County to borrow from the Baldwin County Oil and Gas Severance Tax Trust Fund and for the trustees to loan the fund to the county.
Sets a $15,000,000 cap on deposits into the trust fund from severance tax revenues and repeals the local severance tax once this amount is deposited; refunds any excess tax revenues after that point.
The county commission acts as trustees (with possible appointment of additional trustees or escrow agents); investments limited to U.S. government obligations or secured certificates of deposit, and loans to Baldwin County allowed.
One loan, in a single transaction, may be made to Baldwin County; repayment is a general obligation of the county, in equal semi-annual installments over up to 15 years, at an interest rate of 1 percentage point above the 10-year U.S. Treasury rate.
Borrowed funds must be used for economic and industrial development in Baldwin County (including property acquisition, financing/refinancing, and road/bridge projects).
Net investment income: up to 90% may be distributed to Baldwin County's General Fund, with 10% added to the trust corpus.

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