First Special Session of the Alabama Legislature 2015

Tax Reform / Revenue

Click a bill to see sponsor(s), summary (including link to full text), League action and justification for that action, and progress of the bill through the legislative process.

Legend:

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= LWVAL's opposition to the legislation.

= new bill activity; change from previous week's report such as new progress in the legislature and/or League action. Bill may be one newly added to the report. These updates are in green font.

LWVAL has taken a position on these bills:
[none at this time]

LWVAL is monitoring these bills:

SB1 - 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

Sponsors(s): Senators Orr and Melson

Summary/Synopsis: This bill would provide for the distribution of any payments allocated to the state for economic damages from the Deepwater Horizon Oil Spill Disaster Settlement to relieve certain debt of the state. Subsequently, any remaining funds would be deposited into a trust fund designated to hold such funds or the State General Fund.

Download SB1.

League Action and Justification: Monitor while under further review.

Bill Progress in Legislature:

07/13/2015: First Read and referred to the Senate Committee on Finance and Taxation General Fund (F&TG).

SB2 - Deepwater Horizon Oil Spill disaster Settlement, distribution of funds to relieve certain debt of the state and remaining funds transferred to the Alabama Trust Fund

Sponsors(s): Senators Dial, Holley, Whatley and McClendon

Summary/Synopsis: This bill would provide for the distribution of any payments allocated to the state for economic damages from the Deepwater Horizon Oil Spill Disaster Settlement to first relieve certain debt of the state. Subsequently, any remaining funds would be deposited into the Alabama Trust Fund.

Download SB2.

SB5 - Education Trust Fund, Rolling Reserve, to provide further for appropriation cap; ETF Budget Stabilization Fund authorizes further uses of revenues, including payments to the PACT Fund; to prohibit appropriations from holding or clearing accounts; Secs. 29-9-3, 29-9-4, 29-9-5, 29-9-6 am'd.

Sponsors(s): Senator Pittman

Summary/Synopsis: This bill amends the Education Trust Fund Rolling Reserve Act of 2011 to provide further for the determination of the annual appropriation cap, for the disposition of revenues received in excess of the cap, for the appropriation of funds in the Education Trust Fund Capital and Technology Fund, and for the temporary transfer of funds from the Education Trust Fund Budget Stabilization Fund.

This bill amends the Wallace-Folsom College Savings Investment Plan Act to delete certain obsolete provisions concerning PSCA debt service. This bill further clarifies the fiscal status of holding or clearing accounts created as an administrative convenience to implement the statutory and/or constitutional distribution of earmarked tax revenues so as to prohibit the appropriation of such funds.

Download SB5.

SB6 - Motor vehicle, remote sales, sales and use tax, distribution to General Fund, Secs. 40-23-61, 40-23-85, 40-23-174 am'd.

Sponsors(s): Senator Pittman

Summary/Synopsis: This bill would amend Sections 40-23-61, 40-23-85 and 40-23-174, Code of Alabama 1975 to provide further for the distribution of use tax funds. [to the General Fund]

Download SB6.

SB8 - Alabama Lottery and Alabama Lottery Corporation estab., gaming regulated at racetracks where pari-mutuel wagering currently legal, state gross receipts tax and local gross receipts tax levied, tax on vendors of gaming equipment levied, disposition of proceeds provided, Alabama Lottery and Gaming Commission created to regulate and administer gaming, Governor authorized to negotiate a compact with Poarch Band of Indians, constitutional amendment

Sponsor(s): Senator Marsh (Constitutional Amendment)

Summary/Synopsis: Under existing law, lotteries and gift enterprises are prohibited by Section 65 of the Constitution of Alabama of 1901.

This bill proposes an amendment to Section of the Constitution of Alabama of 1901 to establish an Alabama Education Lottery and the Alabama Education Lottery Corporation; to authorize and regulate gaming by the entities currently licensed to conduct pari-mutuel wagering at the four existing racetracks in Alabama where pari-mutuel wagering is currently legal; to levy a state gross receipts tax and a local gross receipts tax on gaming revenue of the racetracks; to levy a tax on vendors of gaming equipment; to provide for the disposition of lottery proceeds and state gaming tax proceeds; to create the Alabama Education Lottery and Gaming Commission to implement, regulate, and administer gaming and regulate and supervise the Alabama Education Lottery and Alabama Education Lottery Corporation; to authorize the Governor to negotiate a compact for gaming with the Poarch Band of Creek Indians; and to require the Legislature to pass general laws to implement the amendment.

Download SB8.

League Action and Justification: Monitor while under further review.

Bill Progress in Legislature:

07/13/2015: First Read and referred to the Senate Committee on Tourism and Marketing (T&M).

SB13 - Legacy Trust Fund, created, board of trustees, settlement proceeds, assets repay Alabama Trust Fund Rainy Day Account, assets held in trust, interest paid to General Fund, Alabama Capital Improvement Trust Fund, and to Legacy Trust Fund, creation of authority to issue bonds using Deepwater Horizon Oil Spill Disaster Settlement required, const. amend.

Sponsor(s): Senator Allen (Constitutional Amendment)

Summary/Synopsis: This bill would propose an amendment to the
Constitution of Alabama of 1901, to create the Alabama Legacy Trust Fund.
The proposed amendment:

would require the Alabama Trust Fund Board of Trustees to administer the fund.
2 provides for the distribution of certain payments received by the state from settlements and other monies.
3 provides that trust capital be held in perpetual trust and provides for the distribution of trust income.
4 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.

Download SB13.

SB15 - State parks, Gulf State Park Improvements Financing Authority, incorporation, issuance of bonds for capital improvements assignment of certain sales and use tax, revenue allocated to Conservationa nd Natural Resources Dept., Sec 9-14E-9 am'd.

Sponsor(s): Senators Pittman and Albritton

Summary/Synopsis: This bill would authorize the incorporation of the Gulf State Park Improvements Financing Authority.
This would:

authorize the authority to sell and issue from time to time its bonds not $50,000,000 in aggregate principal amount for the purpose of providing the funds necessary to construct and equip capital improvements at Gulf State Park in Baldwin County, Alabama, including capital improvements authorized by the provisions of Chapter 14E of Title 9 of the Code of Alabama, 1975.
2 provide that the bonds issued by the authority pursuant to this act would be payable solely out of and secured by a pledge and assignment of certain designated revenues, including (i) certain tax revenues allocable to the Department of Conservation and Natural Resources from the state sales and use tax and the state tax on tobacco products and (ii) such revenues derived from the operation of the park improvements financed with proceeds of the bonds as the authority may determine.
3 provide for the details of the bonds and for the terms of the sale thereof.
4 provide that the bonds and the income therefrom shall be exempt from taxation in this state.
5 authorize the issuance by the authority of refunding bonds for the purpose of refunding the principal of and interest on any then outstanding bonds theretofore issued by the authority and the expenses of the refunding and any premiums necessary to retire those so refunded.
6 amend Section 9-14E-9 of the Code of Alabama 1975 to provide that casualty insurance proceeds respecting damage to the project authorized therein and proceeds of bonds issued by the authority would constitute a source of funds to pay a portion of the costs of constructing and equipping the project authorized therein.

Download SB15.

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