HB569 Alabama 2016 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular 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

HB569 would use Alabama's share of Deepwater Horizon settlement money to pay certain state debts first, with any remaining funds going into a designated trust or the State General Fund.

What This Bill Does

It directs that settlement payments not already dedicated by federal law or court order be used to repay specific state debts: unpaid amounts from Rainy Day Transfers to the State General Fund and Education Trust Fund, unpaid amounts from the Alabama Trust Fund related to those transfers (2013-2015), and any outstanding CMS payments. The Director of Finance would set and manage the repayment schedule, prioritizing larger total amounts, immediacy of payments, and amounts owed, and could include payments to the State General Fund if needed. After these debts are paid, any remaining funds would go to a designated trust fund to hold them; if no such fund exists, they would go to the State General Fund. The act takes effect immediately after the Governor signs it.

Who It Affects

• State government creditors and accounts (Rainy Day Accounts and the Alabama Trust Fund) that are owed payments from past transfers to the State General Fund and Education Trust Fund, and Medicaid/CMS payments.
• State finances and administration, including the Director of Finance who would determine payment schedules and determine whether some funds go to the State General Fund.

Key Provisions

• Payments allocated to Alabama from the Deepwater Horizon settlement that are not otherwise dedicated would be used to repay specific debts: Rainy Day accounts linked to unpaid transfers to the State General Fund and Education Trust Fund, the Alabama Trust Fund unpaid amounts from 2013-2015 transfers, and CMS payments.
• Any funds left after these repayments would be deposited into a designated trust fund to hold the funds, or into the State General Fund if no such trust fund exists.
• The Director of Finance would set the repayment schedule, prioritizing total amount available, immediacy of repayment, and amounts owed, and could direct some funds to the State General Fund if appropriate.
• The act becomes effective immediately upon the Governor's approval.

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