HB360 By Representatives Davis, Faust, Sessions, Gaston, Williams (JW), Buskey, Bracy, Shiver, Baker, Drummond, Clarke and McMillan RFD Ways and Means General Fund Rd 1 01-MAR-16

SYNOPSIS: This proposed amendment shall be known as the Alabama Strategic Investment Initiative.

This bill would propose an amendment to the Constitution of Alabama of 1901, to provide for the distribution and use of certain payments received by the state from settlements and other monies.

The proposed amendment also would require the Legislature to enact legislation creating an authority to issue revenue bonds using any Deepwater Horizon Oil Spill Disaster Settlement to fund the bond payments and require distribution of amounts from such bond issuance for certain purposes.

A BILL TO BE ENTITLED AN ACT

Proposing an amendment to the Constitution of Alabama of 1901, to provide for the distribution and appropriations of payments from settlements and other monies; and to authorize the issuance of revenue bonds using any Deepwater Horizon Oil Spill Disaster Settlement monies.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as part thereof following approval by a majority of the qualified electors voting thereon in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, appearing as Sections 284 and 285 of Official Recompilation of the Constitution of Alabama of 1901 as amended:

PROPOSED AMENDMENT

Section I. This amendment shall be known and may be cited as the Alabama Strategic Investment Initiative.

Section II. For the purposes of this amendment, the following terms shall have the following meanings:

(a) DEEPWATER HORIZON OIL SPILL SETTLEMENT. Any settlement for economic damages in relation to Deepwater Horizon MDL 2179 (E.D. La.) concerning the State of Alabama and associated with the oil spill disaster in the Gulf of Mexico on April 20, 2010, that is not otherwise dedicated under federal law.

(b) FISCAL YEAR. The fiscal year of the state as may from time to time be provided by law.

(c) STATE. The State of Alabama.

Section III. (a) Settlement proceeds from the Deepwater Horizon Oil Spill Settlement shall follow Section III and be distributed in the following order:

(1) To repay the General Fund Rainy Day Account for the $161,565,874 transferred to the State General Fund in fiscal year 2010 pursuant to Amendment 803 of the Constitution of Alabama of 1901; and

(2) To supplement existing allocated revenues or any planned revenues, whether federal, state, or local, for Baldwin County and Mobile County not to exceed $439,000,000 to be expended in the following order:

a. To the Department of Transportation to supplement, and in no way decrease, revenues currently allocated or planned in the Department's long-range five-year federal-aid highway plan for the following projects:

(i) Highway 98 Completion;

(ii) I-10 to I-65 Beach Expressway Completion;

(iii) Rangeline Road Extension; and

b. $50,000,000 to the Strengthen Alabama Homes Fund for residential property owner grants to retrofit insurable property to resist loss due to hurricane, tornado, or other catastrophic wind events.

(b) If any funding becomes available, such as federal or local matching funds, in addition to any revenues currently allocated or planned for the projects in subsection (a)(2) above, the funding from Deepwater Horizon Oil Spill Settlement shall be correspondingly decreased where possible.

(c) If any funds remain after completion of the expenditures in subsection (a), the remaining shall be expended for the repayment of the Alabama Trust Fund for amounts transferred to the State General Fund over fiscal years 2013, 2014, and 2105 pursuant to Amendment 856 of the Constitution of Alabama of 1901.

Section IV. The Legislature shall enact appropriate legislation creating an authority to issue revenue bonds from which the sources of payment of the bonds shall be any Deepwater Horizon Oil Spill Disaster Settlement. The principal amount of authority obligations shall not exceed the total amount of the Deepwater Horizon Oil Spill Disaster Settlement. The proceeds from such bond issuance shall be used to pay the costs of issuing the bonds and as specified in Section III. Bonds issued by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state. The Legislature may further enact legislation implementing the provisions of this amendment.

Section V. This amendment shall be self-executing. The Legislature may enact laws supplemental to this amendment that are in furtherance of the purposes and objectives of this amendment and not inconsistent with this amendment.

Section VI. All laws or parts of laws in conflict with this amendment are repealed, including, without limitation, Section 36-15-4.2, Code of Alabama 1975, as amended.

Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of Official Recompilation of the Constitution of Alabama of 1901 as amended, and the election laws of this state at the next statewide primary election.

Section 3. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set the following description of the substance or subject matter of the proposed constitutional amendment:

"Proposing an amendment to the Constitution of Alabama of 1901, to provide for the distribution of Deepwater Horizon Oil Spill Disaster Settlement proceeds and certain bond proceeds of the state; to allow the Legislature to create a bond authority and provide implementation legislation; and to pledge the Deepwater Horizon Oil Spill Disaster Settlement as debt service for the issuance of revenue bonds. This amendment shall be known as the Alabama Strategic Investment Initiative.

"Proposed by Act _________"

This description shall be followed by the following language:

"Yes ( ) No ( )."

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