AL HB781

Amends Sections 29-9-2 and 29-9-3 of the Code of Alabama 1975 to modify the Education Trust Fund fiscal year appropriation cap and creates new payment alternatives for the Education Trust Fund Rainy Day Account.

Adds new definition of "in lieu of payment" as an amount dedicated for repayment to the Education Trust Fund Rainy Day Account that may be used for the benefit of the State General Fund instead.

Allows the Legislature to transfer excess revenues from the Education Trust Fund to the General Fund in lieu of making payments to the Education Rainy Day Account or Education Trust Fund Stabilization Account, beginning with fiscal year ending September 30, 2013.

Requires minimum annual repayment of $100,000,000 to either the Education Trust Fund Rainy Day Account or the General Fund (as in lieu payment) before the appropriation cap limitations apply.

Gives the Education Trust Fund first priority on any state funds received from litigation involving the 2010 Gulf oil spill for repayment of amounts transferred to the General Fund under this act.