SB231 Alabama 2015 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Gerald H. AllenSenator
Republican
Session: Regular 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, const. amend.
Summary: SB231 would create the Alabama Legacy Trust Fund, an irrevocable perpetual trust managed by the Alabama Trust Fund Board, funded from settlement proceeds and other assets, and designed to distribute earnings to the General Fund, the Capital Improvement Trust Fund, while preserving most assets in the trust.
What This Bill Does
It would establish the Alabama Legacy Trust Fund as an irrevocable permanent trust overseen by the Board of Trustees; settlement proceeds would first be used to repay previous transfers to the General Fund and the Rainy Day Account, with any remaining funds deposited into the Legacy Trust Fund. The fund’s assets would be held in a perpetual trust and not spent except to acquire eligible investments. The fund would distribute income annually, with 80% of the 5% distribution going to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, and 10% remaining in the Legacy Trust Fund. The amendment also requires audits, annual reporting, allows supplemental laws, and repeals conflicting laws.

Who It Affects
State General Fund would receive the majority (80%) of the annual distribution from the Legacy Trust Fund's earnings.
Alabama Capital Improvement Trust Fund would receive 10% of the annual distribution, with the remaining 10% staying in the Legacy Trust Fund.

Key Provisions
Creates the Alabama Legacy Trust Fund, an irrevocable permanent trust funded and administered under the amendment.
Transfers administration to the Alabama Trust Fund Board of Trustees.
Settlement proceeds must first repay Rainy Day Account and prior General Fund transfers; remaining proceeds go to the Legacy Trust Fund.
Assets are held in a perpetual trust and cannot be expended except to acquire eligible investments; trust capital remains part of the fund.
An annual distribution equals 5% of the average market value of invested assets; 80% to the State General Fund, 10% to the Alabama Capital Improvement Trust Fund, 10% retained in the Legacy Trust Fund.
The Board may augment the fund with additional money or assets and reinvest trust income.
An annual audit is required; the Board must publish financial information and reports.
Trustees are not personally liable except for willful misconduct or wrongdoing.
The amendment is self-executing; the Legislature may enact supplemental laws.
Conflicting laws, including Section 36-15-4.2, are repealed.

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