SB32 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

First Special Session 2015

Title

Alabama Trust Fund, General Fund Rainy Day Account repayment, bond issue, $800,000,000, authorized, const. amend.

Summary

A proposed constitutional amendment would allow up to $800 million in state bonds (and guarantees) to repay the Alabama Trust Fund and General Fund Rainy Day Account and to fund capital improvements, with a Bond Commission to oversee the process.

What This Bill Does

If enacted, the state could issue general obligation bonds up to $800 million, and could refund bonds in the future. The state could guarantee bonds issued by a state-created authority for these purposes, all within the same $800 million cap. Proceeds would go into the State Treasury, be invested, and used only for deposits to the Alabama Trust Fund, the General Fund Rainy Day Account, or for capital improvements; the bonds would pledge the full faith and credit of the state. A Bond Commission (Governor as chairman, plus the Director of Finance and State Treasurer) would set terms and oversee issuance, and an election would be held to approve the amendment.

Who It Affects

• The State of Alabama and its taxpayers would bear debt service and credit obligation for up to $800 million in general obligation bonds (and any related guarantees), affecting state finances and potentially future taxes or revenue needs.
• The Alabama Trust Fund and General Fund Rainy Day Account would receive bond proceeds and investment income to fund repayments and capital improvements, and state-created public corporations authorized to raise funds for these accounts could be guaranteed by the state within the same cap.

Key Provisions

• Authorizes the state to issue general obligation bonds up to $800,000,000 and to refund bonds issued under this amendment; bonds are guaranteed by the full faith and credit of the State of Alabama.
• Creates a Bond Commission (Governor as chairman; Director of Finance and State Treasurer as members) with authority to determine bond terms, oversee sale and issuance, and meet with records kept and secretary designated.
• Proceeds must be deposited into the State Treasury, invested, and held in separate accounts and used only for deposits to the Alabama Trust Fund, the General Fund Rainy Day Account, or for capital improvements as specified.
• Allows the state to guarantee bonds issued by a public corporation created to raise funds for deposit in the Alabama Trust Fund or General Fund Rainy Day Account, with the total bonds guaranteed plus issued not exceeding $800,000,000 in aggregate.
• Requires an election to approve the amendment, with ballot language describing the changes and the $800 million cap.

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