SB31 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

First Special Session 2015

Title

Economic Settlement Authority, created, issuance of bonds by authority payable from revenue from settlement of BP Oil Spill for capital improvements and deposit into certain funds, BP Settlement Fund created

Summary

SB31 creates the Alabama Economic Settlement Authority to issue bonds funded by BP oil spill settlement revenues and to use those funds for capital projects and to strengthen state budget reserves through a new BP Settlement Fund.

What This Bill Does

It establishes a new public corporation, the Alabama Economic Settlement Authority, that can issue bonds payable from BP settlement revenues. It creates a special BP Settlement Fund to hold those revenues and pledges them to bond payments. The proceeds from the bonds can be used to deposit money into the Alabama Trust Fund and the General Fund Rainy Day Account or to pay the costs of capital improvements; any excess revenues can be used for related costs or deposited into other state funds.

Who It Affects

• Alabama taxpayers and residents — the bill aims to fund state capital projects and bolster budget reserves using BP settlement revenues, which could influence public spending and debt service.
• State government and related entities (including the Alabama Trust Fund, General Fund Rainy Day Account, Department of Finance, and the Bond Commission) — a new authority would issue bonds, manage the funds, and determine how revenues are pledged, invested, and applied.

Key Provisions

• Creation of the Alabama Economic Settlement Authority as a public corporation with the power to issue bonds secured by BP settlement revenues.
• establishment of the BP Settlement Fund to receive revenues from BP claims and to be used first to pay debt service on the Authority's bonds; excess funds may be used for bond issuance costs or deposited into other state funds.
• pledge and appropriation of BP settlement revenues to secure the Authority's bonds and to fund transfers to the Alabama Trust Fund, Rainy Day Account, and capital improvements; these revenues are irrevocably pledged for debt service.
• allowance for bond security and credit enhancement, including possible state guaranty of principal and interest by the Bond Commission, and options for refunding bonds.
• governance and operations including the Governor as president, State Treasurer as vice president, and Finance Director as secretary; the Authority can hire staff and execute necessary contracts and financing agreements.
• tax exemption and favorable treatment: bonds and Authority activities are exempt from state taxes, and bonds are legal investments for various state-funded retirement systems and fiduciaries.
• dissolution provisions: the Authority can be dissolved only when no bonds are outstanding, with title to any remaining property vesting in the state.
• additional provisions: the Authority can invest proceeds and revenues in permitted investments, require diversity in bond issuance, and leverage Department of Finance services in administration.

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

Subjects

Authorities