SB2 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

First Special Session 2016

Title

Firearms and ammunition, state preemption of regulation of, further provided for, Sec. 13A-11-61.3 am'd.

Summary

SB2 would create the Alabama Economic Settlement Authority to issue bonds backed by BP oil spill settlement revenues, use proceeds to fund the Alabama Trust Fund, the General Fund Rainy Day Account, and transportation projects, and reform repayment of prior funds.

What This Bill Does

It establishes a new public corporation, the Alabama Economic Settlement Authority, that can issue bonds payable from BP settlement revenues. It creates a dedicated BP Settlement Fund to hold these revenues and secure the bonds, with the proceeds used first to pay debt service, then distributed to the Alabama Trust Fund and the General Fund Rainy Day Account, and finally allocated to transportation projects. It also amends existing debt repayment rules and sets a repayment schedule for amounts previously borrowed from the Alabama Trust Fund, with specific milestones through 2026, and directs how remaining funds may be allocated or invested until used.

Who It Affects

• Alabama residents and taxpayers who may be affected indirectly by changes in state debt, funding availability for transportation projects, and how BP settlement revenues are allocated.
• State government and financial stakeholders, including the Alabama Economic Settlement Authority, the Alabama Trust Fund, the General Fund Rainy Day Account, the Department of Transportation, the Department of Finance, and bondholders/investors who would be involved in issuing and repaying the bonds.

Key Provisions

• Creates the Alabama Economic Settlement Authority as a public corporation to issue bonds secured by BP settlement revenues and other available funds.
• Establishes the BP Settlement Fund to hold BP settlement revenues, which are pledged to secure the Authority’s bonds and may be used to pay bond debt service and related costs.
• Specifies bond proceeds and resulting funds must first repay certain prior transfers to the General Fund Rainy Day Account and the Alabama Trust Fund, then be distributed to DOT divisions for transportation projects.
• Allows bonds to be paid from appropriated funds, security interests, or other revenues, and declares bonds are not general state obligations.
• Imposes a repayment schedule for funds previously borrowed from the Alabama Trust Fund, with defined yearly milestones up to 2026 and mechanisms to ensure repayment.
• Permits refunding bonds and sets rules for issuing, selling, and redeeming bonds, including investment and security provisions.
• Provides tax exemptions for the Authority, its bonds, and related instruments and allows the use of BP settlement revenues to secure debt.
• Requires governance by a seven-member board including leaders from the Legislature and state officials, with no salaries for officers/directors.
• Allows dissolution of the Authority once all bonds are outstanding and title to assets reverts to the state; includes diversity considerations and Department of Finance support.

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

Subjects

Firearms