AL HB649

Amends Section 9-17-31 of the Code of Alabama 1975 to redirect a portion of oil and gas production tax proceeds from the General Fund to the State Oil and Gas Board of Alabama and Geological Survey of Alabama beginning October 1, 2012.

Allocates 23% of tax proceeds generated two fiscal years prior (or a minimum of $7,000,000, whichever is greater) split equally between the two agencies in monthly distributions.

State Oil and Gas Board receives 50% of the allocation to cover expenses for management and regulation of oil and gas exploration and development programs and to carry out Board duties under Title 9, Chapter 17 of the Alabama Code.

Geological Survey of Alabama receives 50% of the allocation for expenses related to exploring, examining, and reporting on the state's mineral, energy, water, biological and natural resources and to carry out Survey duties under Title 9, Chapter 4 of the Alabama Code.

Remaining tax proceeds continue to be deposited in the State General Fund and appropriated by the Legislature; allocations are intended to supplant but not replace base General Fund appropriations to these agencies.