SB188 Alabama 2016 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2016

Title

Deepwater Horizon Oil Spill Disaster Settlement, distribution of funds to relieve certain debt of the state and remaining funds transferred to the State General Fund

Summary

SB188 would use Alabama’s share of Deepwater Horizon settlement funds first to repay specific state debts, with any leftover money placed in a trust or the State General Fund.

What This Bill Does

If enacted, any settlement payments allocated to Alabama for economic damages that are not already dedicated would be used first to pay down certain state debts, including Rainy Day Account debts for the State General Fund and Education Trust Fund, and any outstanding CMS/Medicaid payments. After those debts are paid, any remaining funds 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 determine the repayment schedule, prioritizing based on the total amount received, how soon repayments are needed, and how much is owed, and could include a payment to the State General Fund if needed and practicable. The act would take effect immediately after the Governor signs it into law.

Who It Affects

• Group 1: Alabama’s state debt obligations, specifically the Rainy Day Accounts for the State General Fund and Education Trust Fund (per constitutional amendments 803 and 856) and any unpaid CMS/Medicaid payments; these would be paid first using settlement funds not otherwise dedicated.
• Group 2: The Director of Finance and the State General Fund or a designated trust fund; the Director would set the payment schedule and determine where any remaining funds go after debts are repaid.

Key Provisions

• Directs non-earmarked Deepwater Horizon settlement payments to repay (1) the State General Fund Rainy Day Account debt from the 2010 transfer, (2) the Rainy Day Accounts for the 2013-2015 transfers under Amendment 856, and (3) any outstanding CMS/Medicaid payments owed by the state.
• Any funds remaining after these repayments must be deposited into a designated trust fund to hold the funds, or into the State General Fund if no trust fund exists.
• Authorizes the Director of Finance to determine the payment schedule, prioritizing total funds received, immediacy of repayments, and amounts owed, and allows a payment to the State General Fund if needed and practicable.
• Effective date: immediately after the Governor signs the bill into law.

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

Subjects

Deepwater Horizon Oil Spill