HB163 Summary

• Proposes a constitutional amendment to authorize the trustees of the Escambia County Oil and Gas Severance Trust to loan funds to Escambia County for economic and industrial development, road and bridge construction/maintenance/repair, and other capital projects.

• Requires the Escambia County Commission to repay all borrowed funds in equal semi-annual installments of principal and interest over a term not exceeding 15 years at an interest rate of one percent above the published market rate on 10-year U.S. Treasury Notes as of the loan date.

• Authorizes the trust fund trustees to invest trust funds in other investments as provided by local law and ratifies any prior local law authorizing such investments.

• Requires a public election on the proposed amendment to be held in accordance with Amendment 555 to the Alabama Constitution and state election laws.

• Passed by the House on February 26, 2013 and the Senate on May 20, 2013.