SB53 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

First Special Session 2015

Title

Alabama Legacy Trust Fund and Mobile and Baldwin County Settlement Trust Fund, created, distribution of payments and income, capital held in perpetual trust, const. amend.

Summary

The bill would amend the Alabama Constitution to create two permanent trusts—the Alabama Legacy Trust Fund and the Mobile and Baldwin County Settlement Trust Fund—funded by settlement proceeds, with the Legacy Fund held in perpetuity and its income supporting state needs and Mobile/Baldwin Counties.

What This Bill Does

Creates two constitutional trusts: the Alabama Legacy Trust Fund (permanent, capital in trust) and the Mobile and Baldwin County Settlement Trust Fund (for Mobile and Baldwin Counties). Deepwater Horizon settlement proceeds would be split, starting 50% to Legacy and 50% to Mobile/Baldwin, with the first payment at 70% to Legacy and 30% to Mobile/Baldwin, and later payments adjusted to keep overall equal receipts. The Legacy Fund would be managed by the Board of Trustees of the Alabama Trust Fund and would distribute income each year (80% to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% retained in the Legacy Fund), while the capital remains in the trust and cannot be expended. The bill also requires audits and public reporting, allows supplemental laws, and would take effect on January 1, 2017 if voters approve, repealing conflicting laws.

Who It Affects

• All Alabama residents, as the Legacy Fund is designed for the continuing benefit of the state and its citizens
• Residents and governments of Mobile and Baldwin Counties, who would benefit from the Mobile and Baldwin County Settlement Trust Fund
• The Alabama Trust Fund Board of Trustees, which would administer the Legacy Fund
• The State General Fund and the Alabama Capital Improvement Trust Fund, which would receive portions of Legacy Fund income
• State government and taxpayers, through annual income distributions and potential public reporting requirements

Key Provisions

• Create the Alabama Legacy Trust Fund (irrevocable, permanent) and the Mobile and Baldwin County Settlement Trust Fund (appropriated for Mobile and Baldwin Counties)
• Alabama Trust Fund Board of Trustees administers the Legacy Fund; the Legislature appropriates for the Mobile/Baldwin Fund
• Deepwater Horizon settlement proceeds distribution: 50% to Legacy Fund and 50% to Mobile/Baldwin Fund; first sum distributed 70% to Legacy and 30% to Mobile/Baldwin with later sums adjusted to maintain equal receipts
• Legacy Fund capital held in perpetual trust and not subject to appropriation; trust income distributed annually under a defined formula (80% to State General Fund, 10% to Alabama Capital Improvement Trust Fund, 10% retained in Legacy Fund)
• Additional funding to Legacy Fund through appropriations, contributions, and reinvested trust income; assets managed as part of the trust with oversight
• Annual audits and public reporting of the Legacy Fund's financial status and investments
• Repeals conflicting laws and allows supplemental laws; amendment becomes effective upon voter approval (January 1, 2017)

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