SB13 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

First Special Session 2015

Title

Legacy Trust Fund, created, board of trustees, settlement proceeds, assets repay Alabama Trust Fund Rainy Day Account, assets held in trust, interest paid to General Fund, Alabama Capital Improvement Trust Fund, and to Legacy Trust Fund, creation of authority to issue bonds using Deepwater Horizon Oil Spill Disaster Settlement required, const. amend.

Summary

SB13 would create the Alabama Legacy Trust Fund as a permanent, irrevocable trust managed by the state’s trust fund board, funded by settlement proceeds, and backed by a new revenue-bond program using the Deepwater Horizon settlement.

What This Bill Does

It establishes the Alabama Legacy Trust Fund as an irrevocable permanent trust controlled by the Board of Trustees of the Alabama Trust Fund. It sets how money in the fund is distributed each year (5% of the fund’s invested assets, with a specific rolling-average calculation) and directs that 80% of that distribution go to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% remain in the Legacy Trust Fund. It requires a Legislature-created authority to issue revenue bonds backed by the Deepwater Horizon settlement to fund bond payments, with bond proceeds first used to repay past transfers to the Rainy Day Account and the General Fund, and any remaining funds deposited into the Legacy Trust Fund; it also includes audits, potential supplemental laws, and repeal of conflicting laws.

Who It Affects

• State General Fund — would receive the majority (80% of the annual 5% distribution) of Legacy Trust Fund income for budgetary use.
• Alabama Capital Improvement Trust Fund and Alabama Legacy Trust Fund — together would receive 20% of the annual 5% distribution (10% to the Capital Improvement Fund and 10% retained by the Legacy Trust Fund).

Key Provisions

• Establishes the Alabama Legacy Trust Fund as an irrevocable permanent trust to be funded and administered by the Board of Trustees of the Alabama Trust Fund; assets are held for perpetual investment.
• Creates a distribution and bond framework: 5% of invested assets are distributed annually (with a rolling-average calculation over specified years); 80% goes to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% remains in the Legacy Trust Fund. The Legislature must create a revenue-bond authority to issue bonds backed by the Deepwater Horizon settlement; bond proceeds pay issuing costs and debt service and are used to repay prior transfers to the Rainy Day Account and the General Fund, with any remaining funds deposited into the Legacy Trust Fund; bonds are obligations of the authority, not the state, and the amendment repeals conflicting laws.

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

Subjects

Constitutional Amendments