HB34 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

First Special Session 2016

Title

Economic Settlement Authority, created, issuance of bonds by authority payable from revenue from settlement of BP Oil Spill for capital improvements and deposit into certain funds, BP Settlement Fund created

Summary

HB34 would create the Alabama Economic Settlement Authority to issue bonds backed by BP settlement revenues to fund transportation projects and bolster state funds.

What This Bill Does

It creates a public corporation called the Alabama Economic Settlement Authority that can issue bonds payable from BP settlement revenues. Proceeds go into a BP Settlement Fund and are used first to pay bond debt, with any excess available for transportation projects or transfers to the Alabama Trust Fund or General Fund Rainy Day Account. The bill also amends how previously allocated debt and trust funds are repaid and makes related changes to existing statutory provisions, while establishing governance, tax exemptions, and debt-management powers for the new authority.

Who It Affects

• State government and its agencies (including the Legislature, Governor, Treasurer, Finance Director, Alabama Department of Transportation, and the Alabama Medicaid Agency) — they would manage, allocate, and repay bonds and related funds, and certain revenues would be pledged to bond payments and used for transportation and fund replenishment.
• Alabama residents and taxpayers — the changes could influence state finances, funding for transportation projects, and programs funded by the BP settlement revenues, as funds are redirected to debt service, the Trust Fund, and rainy-day reserves.

Key Provisions

• Creates the Alabama Economic Settlement Authority as a public corporation authorized to issue bonds payable from BP settlement revenues and to deposit bond proceeds into the BP Settlement Fund and the Alabama Trust Fund and General Fund Rainy Day Account.
• Authorizes the authority to pledge BP settlement revenues to bond payments, issue refunding bonds, and use proceeds to finance transportation projects and debt service.
• Establishes the BP Settlement Fund to receive BP settlement revenues, with revenues after Sept. 30, 2017 deposited there and applied first to bond debt service; excess may be used for issuing costs, transferring to the Trust Fund or Rainy Day Account, or funding transportation projects.
• Distributes bond proceeds to repay the General Fund Rainy Day Account, repay amounts owed to the Alabama Trust Fund, and then to support transportation divisions (with specified distribution percentages).
• Creates a seven-member board (House Speaker, Senate President Pro Tempore, Legislative Black Caucus representative, Governor, Lieutenant Governor, State Treasurer, and Finance Director) to govern the authority and establishes their appointment and voting rules.
• Specifies the authority’s powers, including issuing bonds and refunding bonds, securing bonds with appropriated funds, investing, contracting, and employing staff, and using credit enhancements.
• States bonds are not state general obligations and are payable from specified sources; bonds are legal investments and exempt from state taxation; detailed security and investment provisions are included.
• Amends existing laws (including the People’s Trust Act and other related acts) to modify repayment schedules and to clarify the use and repayment of funds transferred to the General Fund and the Alabama Trust Fund.
• Provides dissolution procedures for the authority once all bonds are paid, and includes provisions on diversity, notice, and hearings related to bond issuance.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Authorities