SB267

ENGROSSED

By Senators Hightower, Figures, Glover, Ward, Waggoner, Marsh, Pittman and Albritton

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 a portion of the 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, excluding any settlement proceeds allocated or appropriated for use in fiscal year 2016 and fiscal year 2017, 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)(a) To supplement existing allocated revenues or any planned revenues, whether federal, state, or local, for the Alabama Department of Transportation Districts 91 and 92 of the Southwest Region not to exceed $260,000,000.

(b) If any funds remain after completion of the expenditures in subsection (2)(a), $5,000,000 shall be appropriated to the Strengthen Alabama Homes Fund; and then from any remaining, (1) twenty percent shall be expended for the current Alabama Department of Transportation Southwest Region excluding Alabama Department of Transportation District 91 and 92; (2) twenty percent shall be expended for the current Alabama Department of Transportation Southeast Region; (3) twenty percent shall be expended for the current Alabama Department of Transportation West Central Region; (4) twenty percent shall be expended for the current Alabama Department of Transportation East Central Region; and (5) twenty percent shall be expended for the current Alabama Department of Transportation North Region.

(c) The Alabama Department of Transportation shall not use any of these funds for any of the following purposes except in accordance with generally accepted accounting principles for job cost accounting or federal cost allocation regulations:

(1) Salaries, benefits, or any other form of compensation for state or contract employees.

(2) The purchase, lease, or maintenance of equipment.

(3) The maintenance or construction of public buildings or other structures that are not roads or bridges.

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, excluding any settlement proceeds allocated or appropriated for use in fiscal year 2016 and fiscal year 2017. 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 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 special election or general 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 a portion of 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 ( )."

Constitutional Amendments

Bonds

Legislature

Authorities

Deepwater Horizon Oil Spill

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