SB1 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

First Special Session 2015

Title

Deepwater Horizon Oil Spill Disaster Settlement, distribution of funds to relieve certain debt of the state and remaining funds transferred to the State General Fund

Summary

SB1 would direct any Alabama-allocated Deepwater Horizon settlement payments to first pay down specific state debts, and any remaining funds would be placed into a designated trust fund or the State General Fund.

What This Bill Does

If funds from the Deepwater Horizon settlement come to Alabama and are not already restricted by federal law or court order, the money would be used to repay certain state debts: the Rainy Day Account related to the 2010 transfer to the State General Fund, unpaid amounts from transfers to the State General Fund in 2013-2015, and outstanding CMS payments. After those debts are paid, any leftover funds would be deposited into a designated trust fund or, if no trust fund exists, into the State General Fund. The Director of Finance would set the payment schedule, prioritizing larger totals, immediacy of repayment, and the amounts owed, and could include a payment to the State General Fund if needed and practicable. The act takes effect immediately after governor approval.

Who It Affects

• State government debt obligations (Rainy Day Account, Alabama Trust Fund transfers to the State General Fund, and CMS obligations) by requiring settlement funds to be used to repay these debts first.
• State General Fund and any designated trust fund, which may receive remaining settlement funds after debt repayments (or directly into the General Fund if no trust fund exists).

Key Provisions

• Any settlement payments allocated to Alabama for economic damages, not already dedicated by federal law or court order, must be used to pay or repay specific debts: Rainy Day Account (unpaid amounts from the 2010 transfer to the State General Fund), Alabama Trust Fund (unpaid amounts from 2013-2015 transfers to the State General Fund), and CMS outstanding payments.
• After these payments, remaining funds must be deposited into a designated trust fund to hold the funds, or into the State General Fund if no such trust fund exists.
• The Director of Finance has the authority to determine the payment schedule, prioritizing total amounts, immediacy of repayments, and amounts owed, and may include a payment to the State General Fund if necessary and practical.
• The act becomes effective immediately after it is passed by the Legislature and approved by the Governor.

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

Subjects

Deepwater Horizon Oil Spill