SB27 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Second 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

SB27 would create the Alabama Legacy Trust Fund as an irrevocable permanent fund, guide how settlement money is saved and used, and authorize a Deepwater Horizon settlement–backed bond program to pay for debt service and related costs.

What This Bill Does

It creates the Alabama Legacy Trust Fund to be managed by the Alabama Trust Fund Board and funded from Deepwater Horizon settlement proceeds and other sources, with trust income distributed annually to state programs. It sets a formula to distribute five percent of the fund’s invested assets each year: 80% to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% to remain in the Legacy Trust Fund. It also requires the Legislature to create an authority to issue revenue bonds backed by the Deepwater Horizon settlement, with bond proceeds used for issuance costs and debt service; any remaining proceeds go to the Legacy Trust Fund after repaying the Rainy Day accounts and related transfers. The bill would require audits and public reporting and allow supplemental laws that do not conflict with the amendment.

Who It Affects

• State General Fund would receive 80% of the annual 5% distribution from the Legacy Trust Fund.
• Alabama Capital Improvement Trust Fund would receive 10% of the annual 5% distribution.

Key Provisions

• Creates the Alabama Legacy Trust Fund, an irrevocable permanent trust to be managed by the Alabama Trust Fund Board of Trustees.
• Defines Deepwater Horizon settlement proceeds and requires using them to fund debt service for revenue bonds, initially paying back Rainy Day Accounts and related transfers, with any remaining funds going to the Legacy Trust Fund.
• Establishes annual distribution of 5% of the fund's average invested assets, with 80% to State General Fund, 10% to Alabama Capital Improvement Trust Fund, and 10% retained in the Legacy Trust Fund.
• Bonds issued by a Legislature-created authority would be the obligation of the authority, not the state, and bond proceeds would be used for issuance costs and debt service with specified priorities.
• Assets are held in perpetuity and not subject to appropriation; requires audits and annual/quarterly reporting; allows supplementary laws that do not conflict with the amendment.
• Requires an election to approve the constitutional amendment.

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