SB30 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Second Special Session 2015

Title

Legacy Trust Fund, estab., proceeds from settlements other than Deepwater Horizon, Coastal County Trust Fund, estab. proceeds from Deepwater Horizon settlement, distrib. to Mobile and Baldwin Counties, Alabama Trust Fund board to administer use of proceeds, const. amend.

Summary

The bill would amend the Alabama Constitution to create the Alabama Legacy Trust Fund and Coastal County Trust Fund, keep the Legacy Fund as a perpetual trust, and set how Deepwater Horizon settlement money is distributed and spent for statewide and Mobile/Baldwin County projects.

What This Bill Does

It creates two new funds and assigns administration to the Alabama Trust Fund Board for the Legacy Fund, while giving the Legislature authority to appropriate for the Coastal County Fund. It specifies how settlement proceeds, including Deepwater Horizon funds, are split between the two funds (initially 70% to Legacy and 30% to Coastal, then adjusted to keep receipts even, with protections if court orders favor Mobile/Baldwin). It also outlines targeted uses for Coastal County Fund money (insurance reform, and transportation/evacuation projects in Mobile and Baldwin) and sets investment, distribution, and audit rules for the Legacy Fund, including a fixed 5% annual distribution and an 80%/10%/10% split of that distribution between the State General Fund, the Alabama Capital Improvement Trust Fund, and the Legacy Fund itself.

Who It Affects

• All Alabama residents and future generations who would benefit from a permanently held Legacy Trust Fund income supporting state programs and budgets.
• Residents and governments in Mobile and Baldwin Counties who would benefit from the Coastal County Trust Fund allocations for insurance-related reforms and coastal transportation/evacuation projects.

Key Provisions

• Specific provision 1: Creates the Alabama Legacy Trust Fund (irrevocable, permanent) and the Coastal County Trust Fund, with administration of the Legacy Fund by the Alabama Trust Fund Board and legislative appropriation authority for the Coastal County Fund.
• Specific provision 2: Establishes how settlement proceeds are distributed from Deepwater Horizon and other settlements, with an initial 50/50 split between the Legacy and Coastal funds, and a first-sum split of 70% to Legacy and 30% to Coastal, followed by ongoing distributions that maintain equal receipts to each fund and allow adjustments if court orders would favor Mobile/Baldwin.
• Specific provision 3: Requires distributions from the Coastal County Fund for specific purposes: 100 million dollars for Strengthen Alabama Homes insurance reforms in Mobile/Baldwin; 200 million to ALDOT for Mobile County projects; 200 million to ALDOT for Baldwin County projects; and requires DOT to select projects with no administrative use permitted for these funds.
• Specific provision 4: Provides that Legacy Trust Fund capital remains in a perpetual trust, with 5% of the average market value distributed annually, and splits that distribution: 80% to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% remaining in the Legacy Trust Fund.
• Specific provision 5: Establishes governance and administrative provisions, including use of the State Treasurer's office for administration, annual audits, and public reporting of fund activity.
• Specific provision 6: Limits trustee liability to cases of willful misconduct or wrongdoing, protecting trustees from personal liability in ordinary circumstances.
• Specific provision 7: Repeals conflicting laws (including specified existing sections) to align with the new constitutional framework.
• Specific provision 8: Declares the amendment self-executing and allows supplemental laws that are not inconsistent with the 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