HB360 Alabama 2016 Session

Summary

Primary Sponsor

Randy Davis

Republican

Session

Regular Session 2016

Title

Deepwater Horizon Oil Spill Disaster Settlements, creaton of authority by Legislature required to issue bonds for certain purposes, Alabama Strategic Investment Initiative, const. amend.

Summary

This proposed constitutional amendment creates the Alabama Strategic Investment Initiative to distribute Deepwater Horizon settlement proceeds and authorizes a bond authority to issue revenue bonds backed by the settlement to fund specified projects and programs.

What This Bill Does

It sets a priority for settlement funds: first to repay the General Fund Rainy Day Account, then up to $439 million for Baldwin and Mobile counties for specific DOT projects and $50 million for the Strengthen Alabama Homes grant program, with any additional funds offset if other sources become available. Any remaining money would be used to repay amounts transferred to the Alabama Trust Fund. It would require the Legislature to create an authority to issue revenue bonds backed by the Deepwater Horizon settlement, with bond principal not exceeding the total settlement; bond proceeds would pay issuance costs and fund the Section III expenditures, and bonds would be obligations of the authority, not the state. The amendment would be put to a statewide vote and may be followed by implementing legislation by the Legislature; it would also repeal conflicting laws.

Who It Affects

• Alabama residents and state taxpayers: the arrangement creates a separate bond authority and uses settlement funds rather than creating a state debt, with outcomes depending on how funds are distributed and repaid.
• Residents of Baldwin County and Mobile County, and property owners in hurricane-prone areas: they could benefit from targeted DOT projects in those counties and grants to retrofit homes to resist wind-related damage.

Key Provisions

• Section II defines key terms, including Deepwater Horizon Settlement, Fiscal Year, and State.
• Section III directs distribution of settlement proceeds: repay Rainy Day Account first; then up to $439 million for Baldwin/Mobile counties for specified DOT projects and $50 million for the Strengthen Alabama Homes Fund; any extra funds offset if other funds become available; remaining funds to repay the Alabama Trust Fund per Amendment 856.
• Section IV authorizes a Legislature-created revenue bond authority to issue bonds backed by the settlement; bond principal cannot exceed the total settlement; bond proceeds pay issuance costs and fund the Section III expenditures; bonds are obligations of the authority only, not the state.
• Section VI repeals conflicting laws, and Section II/Section V outline implementation and self-executing nature with potential enabling legislation.
• An election is required for adoption at the next statewide primary, with ballot language describing the amendment and its purpose.

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