| SYNOPSIS: | This bill would propose an amendment to the Constitution of Alabama of 1901 to repeal Amendment 709 to the Constitution of Alabama of 1901, now appearing as Section 260.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and to reestablish the Education Trust Fund Rainy Day Account within the Alabama Trust Fund. |
Proposing an amendment to the Constitution of Alabama of 1901 to repeal Amendment 709 to the Constitution of Alabama of 1901, now appearing as Section 260.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and to reestablish the Education Trust Fund Rainy Day Account; to credit to the Education Trust Fund Rainy Day Account within the Alabama Trust Fund an amount required to fund withdrawals from the Account and to provide for the transfer of additional amounts to the County and Municipal Government Capital Improvement Trust Fund so as to prevent loss of interest funds in years of proration when funds are withdrawn from the Education Trust Fund Rainy Day Account.
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 a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, now appearing as Sections 284, 285, and 287 of the Official Recompilation of the Constitution of Alabama of 1901, as amended:PROPOSED AMENDMENT
Section I. Amendment 709 to the Constitution of Alabama of 1901, now appearing as Section 260.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, is hereby repealed.
Section II. As used in this amendment, the following words and phrases shall have the following respective meanings:
"Alabama Trust Fund" means the irrevocable, permanent trust fund created by Amendment No. 450 to the Constitution of Alabama of 1901, now appearing as Section 219.02 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.
"Education Trust Fund Rainy Day Account" means the special account created by this amendment.
"Oil and Gas Capital Payment" means any payment (including any royalty payment) received by the state or any agency or instrumentality thereof as all or part of the consideration for the sale, leasing or other disposition by the state or any agency or instrumentality thereof of any right to explore and drill for or to produce oil, gas or other hydrocarbon minerals in any area on the water side of the high water mark of Mobile Bay or in any other offshore area and shall include any revenue by the state from federal oil and gas leases off the coast of Alabama. Any royalty or other payment, with the exception of any taxes heretofore or hereafter levied, that is based upon or determined with respect to the production of oil, gas or other hydrocarbon minerals and that is paid to the state or any agency or instrumentality thereof, regardless of the time of such payment, shall be considered an oil and gas capital payment.
Section III. (a) Within thirty days following ratification of this constitutional amendment there shall be created within the Alabama Trust Fund the Education Trust Fund Rainy Day Account. In any year in which proration is declared by the Governor in the Education Trust Fund, the Education Trust Fund Rainy Day Account shall be credited with Oil and Gas Capital Payments previously transferred into the Alabama Trust Fund in the amount required to fund withdrawals from the Account of the amounts authorized by this section. However, the amount withdrawn from the Education Trust Fund Rainy Day Account in a fiscal year may not exceed ten percent of the previous fiscal year's Education Trust Fund appropriations less the total amount of any prior years' withdrawals from the Account which have not been repaid to the Account, as provided for in subsections (b), (c), and (e). Funds from the Education Trust Fund Rainy Day Account may be withdrawn only to prevent proration of the appropriations from the Education Trust Fund. Beginning in the fiscal year beginning October 1, 2008, withdrawals from the Education Trust Fund Rainy Day Account shall be limited to an amount necessary to reach the average of the estimated available revenue which is to be certified by the Finance Director and the Legislative Fiscal Officer prior to the third legislative day of each Regular Session. The Governor shall certify to the state comptroller and notify the Legislature that proration would occur in appropriations from the Education Trust Fund in accordance with this constitution. Upon the certification by the Governor, and after all other sources available to be used to offset proration have been utilized, withdrawals from the Education Trust Fund Rainy Day Account may be made; however, withdrawals shall be limited to the amount of the anticipated proration and funds allotted only to the extent necessary to avoid proration of appropriations from the Education Trust Fund as limited by this section. In the event funds are withdrawn from the Education Trust Fund Rainy Day Account an additional amount equal to twenty-five percent of the Education Trust Fund transfer amount shall be transferred from the Alabama Trust Fund to the County and Municipal Government Capital Improvement Fund.
(b) The Finance Director shall ensure that if during the fiscal year, receipts to the Education Trust Fund (net of the Education Trust Fund Rainy Day Account payments) are sufficient to reduce proration which has been declared and for which funds have been withdrawn, then the amount corresponding to the reduced proration percentage shall be transferred back to the Education Trust Fund Rainy Day Account within the Alabama Trust Fund within thirty days after the end of the fiscal year in which the withdrawals were made. Any amount transferred back to the Education Trust Fund Rainy Day Account shall necessitate a transfer of an additional amount equal to twenty-five percent of that amount from the County and Municipal Government Capital Improvement Fund into the Education Trust Fund Rainy Day Account within the Alabama Trust Fund.
(c) The Legislature may provide by statute for the replenishment of the Education Trust Fund Rainy Day Account within the Alabama Trust Fund from sources other than the Alabama Trust Fund or Oil and Gas Capital Payments. The earnings from the investment of funds due to the replenishment shall be deposited into the State General Fund.
(d) The allocations to the Alabama Capital Improvement Trust Fund and to the County and Municipal Government Capital Improvement Fund as provided in Amendment 666 to the Constitution of Alabama of 1901, now appearing as Section 219.04 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, shall not be diminished by the application of this amendment.
(e) The Legislature must provide for the replenishment of the account within ten (10) years after withdrawal of any funds from the Education Trust Fund Rainy Day Account pursuant to the provisions of this amendment. After the complete replenishment of the Education Trust Fund Rainy Day Account, any excess funds shall be designated to repay any lost interest earnings to the trust established under Amendment 543 to the Constitution of Alabama of 1901, now appearing as Section 219.07 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, due to any withdrawal from the Education Trust Fund Rainy Day Account.
Section 2. An election upon the proposed amendment shall be held at the November 4, 2008 election in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state.
Section 3. The appropriate election official shall assign ballot number two for the proposed constitutional amendment on the election ballot and shall set forth 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 repeal Amendment 709 to the Constitution of Alabama of 1901 and to reestablish the Education Trust Fund Rainy Day Account within the Alabama Trust Fund.
Proposed by Act ____."
This description shall be followed by the following language: "Yes ( ) No ( )."