AMENDMENT 394 RATIFIED
Alabama Heritage Trust Fund.
Section 1. Creation of Trust Fund. For the continuing benefit of the state of Alabama and the citizens thereof, there is hereby created an irrevocable, permanent trust fund named "The Alabama Heritage Trust Fund" which shall be funded and administered in accordance with the provisions of this amendment.
Section 2. Definitions. As used in this amendment, the following words and phrases shall have the following respective meanings:
"ALABAMA HOUSING FINANCE AUTHORITY" means (i) the public corporation and instrumentality of the state organized pursuant to the provisions of Act No. 80-585 enacted at the 1980 Regular Session of the legislature or (ii) any other public corporation and instrumentality of the state which performs substantially the same functions as said corporation organized pursuant to said Act No. 80-585 and which is declared by the legislature to be a successor thereto or replacement thereof.
"AMORTIZED PREMIUM", when used with reference to any eligible investment acquired for a purchase price (exclusive of accrued interest) reflecting a premium above the face or par amount thereof, means an amount determined by first dividing the total dollar amount of the premium at which such investment was purchased by the number of days between the date of purchase and the maturity of such investment (or other date when the principal thereof is contractually required to be paid to the holder thereof) and by then multiplying the quotient so obtained by the number of days between the date of purchase and the date as of which such amount is to be determined.
"BOARD" means the board of trustees of the trust fund.
"COMMISSION" means the "Alabama Heritage Trust Fund Legislative Oversight Commission" created in this amendment.
"ELIGIBLE INVESTMENTS" means any of the following:
(1) Demand deposits (whether or not interest bearing) in federally insured banks, interest bearing time deposits (whether or not evidenced by certificates of deposit) in federally insured banks, and banker's acceptances endorsed and guaranteed by federally insured banks; provided that non-interest bearing deposits shall constitute an eligible investment for moneys in the trust fund for only so long as sound business practice shall require such moneys to be held in such deposits pending the investment thereof in other eligible investments or the disbursement thereof in accordance with the provisions of this amendment; provided further that the aggregate amount of deposits (including both demand and time deposits) of the trust fund in any one bank at any time plus the aggregate amount of banker's acceptances of such bank then held by the trust fund (i) shall not exceed ten percent (10%) of the total trust capital and (ii) shall not exceed ten percent (10%) of the combined capital, surplus and undivided profits of such bank unless any excess of the combined amount of deposits and banker's acceptances over ten percent of such combined capital, surplus and undivided profits shall be secured by obligations described in subdivisions (2) and (3) of this definition having at all times a market value (exclusive of accrued interest) at least equal to such excess amount of deposits and banker's acceptances, including accrued interest thereon;
(2) Bonds, notes or other evidences of indebtedness that are direct obligations of the United States of America or that are unconditionally guaranteed as to both principal and interest by the United States of America;
(3) Bonds, debentures, notes or other evidences of indebtedness issued or guaranteed by any of the following agencies or corporations: Federal Farm Credit Bank, Federal Intermediate Credit Banks, the Export-Import Bank of the United States, Federal Land Banks, the Federal National Mortgage Association, the Tennessee Valley Authority, the Governmental National Mortgage Association, the Federal Financing Bank, the Farmers Home Administration, or any agency or instrumentality of the United States of America which shall be established for the purpose of acquiring the obligations of any of the foregoing or otherwise providing financing therefor;
(4) Repurchase agreements with federally insured banks or with government bond dealers reporting to and trading with the Federal Reserve Bank of New York, provided that such repurchase agreements are secured by obligations described in subdivisions (2) and (3) of this definition; and
(5) Interest bearing time deposits (whether or not evidenced by certificates of deposit) in savings and loan associations (a) the deposits of which are insured to the maximum extent possible by the Federal Savings and Loan Insurance Corporation or any agency of the United States of America that may succeed to its functions and (b) the principal office of which is located in the state; provided further that the aggregate amount of deposits of the trust fund in any one savings and loan association at any time (i) shall not exceed ten percent (10%) of the total trust capital and (ii) shall not exceed ten percent (10%) of the net worth of such savings and loan association unless any excess of the amount of deposits over ten percent (10%) of such net worth shall be secured by obligations described in subdivisions (2) and (3) of this definition having at all times a market value (exclusive of accrued interest) at least equal to such excess amount of deposits, including accrued interest thereon.
"FEDERALLY INSURED BANK" means any bank, whether organized under the laws of the United States of America or the laws of any state thereof, which is a member of the Federal Deposit Insurance Corporation or which obtains deposit insurance to the maximum extent possible from any agency of the United States of America that may succeed to the functions of the Federal Deposit Insurance Corporation.
"FISCAL YEAR" means the fiscal year of the state as may from time to time be provided by law.
"OIL AND GAS CAPITAL PAYMENT" means any payment (except any royalty or other payment described in the last sentence of this definition) 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. Any royalty or other payment 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 in advance of the actual realization of the production upon which it is based or with respect to which it is determined shall be considered an oil and gas capital payment irrespective of whether it is to be credited, in whole or in part, against future payments based upon, or determined with respect to, the actual production of oil, gas or other hydrocarbon minerals. No royalty or other payment shall be considered an oil and gas capital payment if it is based upon, or determined with respect to, the production of oil, gas or other hydrocarbon minerals actually realized at or prior to the time such royalty or other payment is remitted to the state or any agency or instrumentality thereof.
"STATE" means the state of Alabama.
"TRUST CAPITAL" means all assets of the trust fund other than trust income that is at the time subject to appropriation by the legislature and has not become part of the trust capital.
"TRUST FUND" means "The Alabama Heritage Trust Fund" created by this amendment.
"TRUST INCOME", when used with reference to any period, means the net income received during such period from the investment and reinvestment of all assets of the trust fund, determined in accordance with the provisions of Section 5(c) of this amendment.
"TRUSTEE" means a member of the board of trustees of the trust fund.
Section 3. Management of Trust Fund Vested in Board of Trustees. (a) The trust fund shall be under the management and control of the board, and all powers necessary or appropriate for the management and control of the trust fund shall be vested solely in the board. The board shall have a membership of nine trustees consisting of the governor, the state treasurer, the director of finance (or such other official as may by law succeed to the responsibilities of the director of finance), two trustees appointed by the governor, two trustees appointed by the lieutenant governor, and two trustees appointed by the speaker of the house of representatives. The governor, the state treasurer and the director of finance shall each serve as a trustee ex officio, and the service of each such official as a trustee shall begin and end concurrently with the beginning and end of his or her tenure in such office. As promptly as practicable after the effective date of this amendment, the other trustees shall be appointed for the following initial terms: The trustees to be appointed by the governor shall be appointed for terms beginning immediately upon their respective appointments and ending at noon on October 1 in the first and second calendar years, respectively, next following the calendar year in which this amendment shall become effective; the trustees to be appointed by the lieutenant governor shall be appointed for a term beginning immediately upon his or her appointment and ending at noon on October 1 in the third calendar year next following the calendar year in which this amendment shall become effective; and the trustees to be appointed by the speaker of the house of representatives shall be appointed for a term beginning immediately upon his or her appointment and ending at noon on October 1 in the fourth calendar year next following the calendar year in which this amendment shall become effective. Thereafter, the term of office of each appointed trustee shall be six years, commencing at noon on the October 1 on which the term of the immediate predecessor trustee shall end.
(b) If at any time there shall be a vacancy among the appointed trustees, a successor trustee shall be appointed to serve for the unexpired term applicable to such vacancy. The appointment of each appointed trustee (other than those initially appointed), whether for a full six-year term or to complete an unexpired term, shall be made by the same officer of the state who appointed the trustee whose term shall have expired or is to expire or in whose position on the board a vacancy otherwise exists and shall be made not earlier than thirty (30) days prior to the date on which such trustee is to take office as such. Each appointed trustee shall hold office from the effective date of his or her appointment until his or her confirmation or rejection by the senate as provided in subsection (c) of this section, and, if confirmed by the senate, until the expiration of the term (or portion thereof) for which he or she was appointed; provided that if the term of any trustee shall expire prior to the reappointment of such trustee or prior to the appointment of his or her successor, such trustee shall continue to serve until his or her successor is appointed, and if such trustee is reappointed for a new term after the expiration of the immediately preceding term which he or she has been serving, his or her new term of office shall be deemed to have commenced at noon on the October 1 on which the immediately preceding term shall have expired. Trustees shall be eligible for reappointment without limit as to the number of terms previously served.
(c) At the beginning of every regular session of the legislature the governor shall certify to the senate the names of all who shall have been appointed as trustees since the commencement of the last regular session of the legislature, and the senate shall confirm or reject each of them as it shall determine to be in the best interests of the state. If the senate takes no action during such regular session with respect to any trustee whose appointment was so certified, such trustee shall be deemed to have been confirmed by the senate. If the senate rejects the appointment of any trustee, such rejection shall immediately terminate the service of such trustee and the resulting vacancy in the membership of the board shall be filled by a subsequent appointment made in accordance with the provisions of subsection (b) of this section. Trustees appointed during a regular session of the legislature shall not be subject to confirmation or rejection by the senate until the regular session of the legislature next succeeding their appointment.
(d) Each appointed trustee shall, at the time of his or her appointment and at all times during his or her term of office, be a qualified elector of the state, and a failure by any trustee to remain so qualified during such term shall cause a vacancy of the office of such trustee. Each appointed trustee shall have recognized competence and experience in the evaluation and management of investments. No person holding a full-time office or position of employment with the United States of America, the state, any county or municipality in the state, or any instrumentality, agency or subdivision of any of the foregoing, shall be eligible for appointment as a trustee. Any person who is an appointed trustee shall be deemed to vacate his or her office as such trustee by the acceptance of any office or employment which, had such person held such office or been so employed at the time of his or her appointment as a trustee, would have rendered such person ineligible for appointment as a trustee. Service by any person as a member, director, trustee or other participant in the management or administration of any governmental agency, board or commission, or public educational institution, or other public body of the United States of America, the state, or any county or municipality or other political subdivision shall not render such person ineligible for appointment as a trustee unless such service constitutes full-time employment. Any appointed trustee may be impeached and removed from office as a trustee in the same manner and on the same grounds provided in Section 174 of the Constitution of Alabama of 1901, or successor provision thereof, and the general laws of the state for impeachment and removal of the officers of the state subject to said Section 174 or successor provision thereof. The governor, the state treasurer and the director of finance may not be impeached and removed from office as a trustee apart from their impeachment and removal from the respective offices by virtue of which, ex officio, they serve as trustees.
(e) The governor, the state treasurer and the director of finance shall perform the duties of trustees, ex officio, without any compensation other than that to which they are respectively entitled as governor, state treasurer and director of finance. Appointed trustees shall be entitled to such compensation for their services as may from time to time be provided by law duly enacted by the legislature, but the power to provide compensation of appointed trustees shall be discretionary with the legislature and nothing in this amendment shall be construed to confer upon such trustees an absolute right to any compensation for their services. Each appointed trustee shall be reimbursed for expenses actually incurred in the performance of his or her duties as a trustee.
(f) A majority of the trustees shall constitute a quorum for the transaction of business by the board, and decisions shall be made on the basis of a majority of the quorum then present and voting, with each trustee to have a single vote. No vacancy in the membership of the board or the voluntary disqualification or abstention of any trustee shall impair the right of a quorum to exercise all of the powers and duties of the board. The governor shall be the chairman and presiding officer of the board, and the board may appoint such other officers to perform such duties, not inconsistent with the provisions of this amendment or applicable law, as the board shall deem necessary or appropriate. In addition to such regular meetings of the board as may be provided by law or by bylaws or rules duly adopted by the board, special meetings of the board may be called by the governor acting alone or by any three other trustees acting in concert, in each case upon two days' notice to each trustee given in person or by registered letter or telegram; provided, however, that such notice to each trustee may be waived by such trustee, either before or after the meeting with respect to which such notice would otherwise be required. Any meeting held by the board for any purpose shall be open to the public, except that executive or secret sessions may be held by the board when the character or good name of a person is involved. All proceedings of the board shall be reduced to writing on behalf of the board and maintained in the permanent records of the board, a copy of which shall be filed in the principal office of the board and shall be open for public inspection there during regular business hours. The principal office of the board shall be the principal office of the director of finance.
(g) No trustee shall vote on or participate in the discussion or consideration of any matter coming before the board in which such trustee, personally or through family connections or business associations, has any direct or indirect pecuniary interest, including, but without limitation thereto, decisions of the board concerning the investment of moneys constituting part of the trust fund in any deposit or obligation of any bank or corporation in which such trustee may have such an interest. If there shall be brought before the board any matter in which a trustee shall have any interest which may conflict with his duties as a trustee, he or she shall immediately make a complete disclosure to the board of such interest and shall thereafter withdraw from participation in any deliberation and decision of the board with respect to such matter.
(h) The board shall have all of the powers necessary to carry out and effectuate the purposes and provisions of this amendment, including, without limiting the generality of the foregoing, the following powers:
(1) To adopt, alter and repeal bylaws, regulations and rules for the regulation and conduct of its affairs and business;
(2) To make, enter into and execute contracts, agreements and other instruments and to take such other actions as may be necessary or convenient to accomplish any purpose for which the trust fund was created or to exercise any power expressly, or by reasonable implication, granted by this amendment;
(3) To enter into contracts with, to accept aid and grants from, to cooperate with and to do any and all things that may be necessary in order to avail itself of the aid and cooperation of the United States of America, the state or any agency, instrumentality or political subdivision of either thereof in furtherance of the purposes of this amendment; and
(4) To appoint, employ and contract with such employees, agents, advisors and consultants, including, but not limited to, attorneys, accountants, financial experts and such other advisors, consultants and agents as may in its judgment be necessary or desirable, and to fix their compensation;
provided, however, that any obligation created or assumed by the board shall not create any pecuniary obligation or liability of the state or the trust fund other than such as shall be payable out of moneys appropriated by the legislature to defray the expenses of the board in carrying out the purposes of this amendment. No lien or charge against any assets of the trust fund for any purpose whatsoever shall be created by or result from any law enacted by the legislature or any action taken by the board or any other department, agency or instrumentality of the state.
(i) The expenses of making and disposing of investments such as brokerage commissions, legal expenses referable to a particular transaction, transfer taxes and other customary transactional expenses shall, as provided in Section 5(c) of this amendment, be payable from the investment income of the trust fund, but no administrative or other expenses not specifically required to make or dispose of a particular investment shall be payable out of any assets of the trust fund. The legislature shall provide for the administrative and other necessary expenses of the board in the same manner as it provides for the expenses of operating other departments and agencies of the state.
Section 4. Sources of Trust Capital. (a) There shall be transferred from the general fund of the state into the trust fund, as the initial trust capital, moneys in an amount equal to the sum of (i) all proceeds of any oil and gas capital payments received by the state at any time after January 1, 1981, and on or before November 1, 1981, and (ii) all income or profit derived from the investment and reinvestment of the proceeds of such oil and gas capital payments (including income or profit derived from the investment and reinvestment of previously derived income or profit) prior to the transfer of such proceeds into the trust fund, less and except the following:
(1) Any amount of such proceeds, income or profit which has been disbursed by the state, prior to the effective date of this amendment, for the use of the board of corrections pursuant to the provisions of Act No. 81-764 enacted at the 1981 Regular Session of the legislature;
(2) Any amount of such proceeds, income or profit which has been disbursed by the state, prior to the effective date of this amendment, for the use of the department of mental health pursuant to the provisions of Act No. 81-770 enacted at the 1981 Regular Session of the legislature;
(3) Any amount of such proceeds, income or profit which has been appropriated by the legislature, prior to the effective date of this amendment, for the use or benefit of the Alabama Housing Finance Authority and which, as of the effective date of this amendment, is required by any then applicable law to be held apart from the trust fund and not included with the moneys to be transferred into such fund as part of the initial trust capital;
(4) Any amount of such proceeds, income or profit not exceeding $6,000,000 which has been appropriated by the legislature, prior to the effective date of this amendment, for the reimbursement of the counties of the state for expenses incurred by such counties in the incarceration or confinement of convicts or other prisoners who are the responsibility of the state; and
(5) Any amount of such proceeds, income or profit not exceeding $10,000,000 which has been appropriated by the legislature, prior to the effective date of this amendment, for the support and encouragement of educational, agricultural and industrial activities involving basic and applied scientific research and development.
Promptly following the effective date of this amendment, the state treasurer shall take all actions necessary to transfer to the board the possession, control and management of the initial trust capital. If at the time of such transfer into the trust fund all or part of the initial trust capital is invested in certificates of deposit or other investments which cannot be converted into cash prior to the maturity thereof without loss of interest or other penalty, the state treasurer shall directly transfer such certificates of deposit or other investments to the board as part of the initial trust capital without first converting the same into cash. In the event that any certificates of deposit or other investments shall be transferred into the trust fund, the initial trust capital shall include only the income or profit from such certificates of deposit or other investments that has been received by the state on or before such transfer or that constitutes accrued interest, amortized discount or other amounts which, in accordance with generally accepted accounting principles, should be considered as having been earned by the state as of the date of such transfer. To the extent that any income or profit derived from such certificates of deposit or other investments is referable to any period after the transfer thereof into the trust fund, such income or profit shall constitute trust income and shall not constitute part of the trust capital (except to the extent otherwise provided by Section 5(a) of this amendment). Any provision of this amendment to the contrary notwithstanding, no oil and gas capital payment received by the state after November 1, 1981, or any income from the investment thereof, shall, unless subsequently authorized by law, be transferred into the trust fund.
(b) The trust capital shall be augmented by any trust income which, as provided in Section 5(a) of this amendment, shall have remained in the trust fund beyond the end of the fiscal year next succeeding the fiscal year during which it was received without having been appropriated for any purpose by act of the legislature. The trust capital shall also consist of (i) such other moneys or assets as the legislature may by law appropriate and transfer to the trust fund as a permanent part thereof and (ii) such other moneys or assets as may be contributed to the trust fund from any source.
Section 5. Investment of Moneys in Trust Fund; Appropriation of Trust Income. (a) Except to the extent otherwise provided in Section 6 of this amendment, the trust capital shall be held in perpetual trust and shall not be appropriated by the legislature or expended or disbursed for any purpose other than to acquire eligible investments in accordance with the provisions of this amendment. All eligible investments acquired, in whole or in part, with moneys constituting part of the trust capital shall to the extent of such moneys constitute part of the trust capital, but any trust income derived therefrom shall be subject to appropriation and withdrawal by the legislature to the extent provided in this amendment. Until and including the last day of the fiscal year next succeeding the fiscal year during which any trust income shall be received into the trust fund, the legislature may at any time and from time to time, whether before or after the actual receipt of such trust income, enact laws appropriating all or any part of such trust income for any lawful purpose, and any trust income so appropriated may be withdrawn from the trust fund at any time after the receipt thereof; provided, however, that the right of the legislature to appropriate any trust income prior to the actual receipt thereof shall not be construed to authorize the recognition and withdrawal of any moneys equivalent to such trust income prior to the actual receipt thereof into the trust fund. If any trust income shall not be appropriated by a law which becomes effective on or before the last day of the fiscal year next succeeding that during which it was received, such trust income shall thereafter cease to be subject to appropriation and shall become part of the trust capital to be held in the trust fund on the same terms and conditions as are applicable to all other assets constituting the trust capital. Any trust income appropriated by a law becoming effective on or before the last day of the fiscal year next succeeding that during which it was received shall remain trust income even though it is permitted to remain in the trust fund after the end of such fiscal year, and any such trust income shall be subject to withdrawal from the trust fund at any time thereafter in the manner provided by law for the purposes for which it shall theretofore have been appropriated.
(b) To the extent practicable, the board shall keep all moneys at any time held in the trust fund (including both trust capital and trust income) invested in such eligible investments as shall, in its sole and uncontrolled judgment, produce the greatest trust income over the term of such investments while preserving the trust capital. In making any investment of moneys held in the trust fund, the board shall exercise the judgment and care, under the circumstances prevailing at the time of such investment, which an institutional investor of the highest standard of prudence, intelligence and financial expertise would exercise in the management and investment of large assets entrusted to it not for the purpose of speculative profit but for the permanent generation and disposition of funds, considering the probable safety of capital as well as the expected amount and frequency of income. The board shall have full power and authority to select the eligible investments in which moneys held in the trust fund shall at any time be invested, and, to the extent not inconsistent with any express provision of this amendment, the eligible investments so selected shall be acquired from such issuers, underwriters, brokers or other sellers on such terms and conditions, shall be acquired for purchase prices reflecting such discount below or premium above the par or face amount thereof, shall bear such dates and be in such form, denominations and series, shall mature or be subject to mandatory redemption on such dates, shall bear interest at such rate or rates payable at such intervals or, alternatively, shall provide income to the holder thereof in such other manner (including, without limitation thereto, the purchase of such investments at a discount which represents all or part of the income or profit to be derived therefrom), shall be unsecured or secured in such manner, shall contain such provisions for prepayment or redemption at the option of the issuer or obligor, and shall contain or be subject to such other provisions as shall, in all of the foregoing respects, be determined by the board in the exercise of its sole and uncontrolled judgment. The board shall have full power and authority to invest the trust capital in long-term investments producing trust income in accordance with such schedule as the board shall, in the exercise of its sole and uncontrolled judgment, determine to be in the best interests of the state, and in determining such schedule the board may emphasize future benefits in preference to near-term needs. The board shall have complete and uncontrolled discretion in making decisions as to when moneys in the trust fund shall be invested, as to the purchase price or other acquisition cost to be paid or incurred in acquiring investments for the trust fund, as to when investments constituting part of the trust fund shall be sold, liquidated or otherwise disposed of, and, notwithstanding the provisions of Section 100 of the Constitution of Alabama of 1901, as to the amount and nature of the price or other consideration to be received by the trust fund upon the sale, liquidation or other disposition of investments constituting part of the trust fund; provided, however, that to the extent the provisions of this amendment authorize the withdrawal of moneys from the trust fund (including both trust capital and trust income) pursuant to appropriation by the legislature, the board shall invest the moneys so subject to withdrawal in investments which shall mature or otherwise be subject to liquidation on such terms as will provide cash when required for withdrawal from the trust fund. No law shall be enacted nor any action taken by the executive department of the state which impairs or interferes with the power, authority and discretion conferred upon the board by this amendment with respect to the acquisition, management, control and disposition of investments at any time constituting part of the trust fund.
(c) The trust income for any period shall be the net income (determined as hereinafter provided) actually received in cash or cash equivalents during such period from the investment and reinvestment of all moneys held in the trust fund (including both moneys representing trust capital and moneys representing previously received trust income that has not become part of the trust capital). No accrual or other accounting calculation or classification shall constitute the basis for recognizing trust income unless the moneys in question shall have been actually received and paid into the trust fund. The trust income for any period shall consist of the aggregate interest received from investments during such period plus any profit realized during such period from any payment, sale, liquidation or other disposition of investments resulting in the receipt of an amount greater than the purchase price thereof, less (i) any negative audit adjustments to income and any losses with respect to investments which are required to be charged against the income of the trust fund for such period pursuant to the provisions of subsection (d) of this section, (ii) any accrued interest paid as part of the purchase price of investments acquired during such period, and (iii) all expenses of selling and disposing of investments during such period such as brokerage commissions, legal expenses referable to a particular transaction, transfer taxes and other customary transactional expenses. For purposes of determining the amount of the trust capital at any time held in the trust fund, any investment acquired for a purchase price reflecting a discount below its face or par amount shall, at all times prior to its payment, sale, liquidation or other disposition, be valued at its original purchase price. If any investment is acquired for a purchase price reflecting a premium above its face or par amount, then, for purposes of calculating trust income, the cumulative interest or other income theretofore received from such investment as of any time shall be reduced by the then applicable amortized premium of such investment. For purposes of determining the amount of trust capital at any time held in the trust fund, any investment acquired for a purchase price reflecting a premium above its face or par amount shall, at all times prior to its payment, sale, liquidation or other disposition, be valued at its original purchase price less its then applicable amortized premium.
(d) The trust income shall be adjusted in accordance with the succeeding provisions of this subsection if the application of generally accepted accounting principles in connection with the annual audit of the trust fund requires any negative adjustment of income, including the recognition of any reduction in value or write off of investments for reasons relating to the probability of their payment or collectibility, or if any loss is realized upon any payment, sale, liquidation or other disposition of any investment resulting in the receipt of any amount less than the value thereof determined in accordance with the provisions of this amendment; provided, however, that no reduction in value of any investment shall be made because the rate of interest or other yield thereon has fallen below the market rates then applicable to comparable investments. Any audit adjustment resulting in a charge against income or any loss realized from the payment, sale, liquidation or other disposition of investments, as the case may be, shall be charged first against any trust income which, as of the time such adjustment is made or such loss is realized, has accumulated in the trust fund and is then available for withdrawal, whether or not theretofore appropriated, and if the amount to be so charged is greater than the amount of accumulated trust income subject to withdrawal, such amount shall be charged against trust income thereafter received in the current and succeeding fiscal years until the full amount of such audit adjustment or loss, as the case may be, has been recovered or made good out of the investment income of the trust fund, and from and after the time that such audit adjustment is made or such loss is realized, as the case may be, no income of the trust fund shall be considered trust income for purposes of this amendment until the full amount of such adjustment or loss shall have been so recovered or made good. In the event that, as a result of any audit adjustment or any realized loss, the aggregate amount of income appropriated and withdrawn from the trust fund as of any time during or at the end of any fiscal year exceeds the aggregate trust income which, taking into account such adjustment or loss, should have been available for withdrawal at or before such time, then, and in such event, the excess amount so withdrawn need not be returned to the trust fund from the general fund of the state or from any other source of funds available to the state, but the amount of such excess withdrawal shall be recovered through charges against future income of the trust fund as above provided.
(e) To the extent appropriate and not at the time prohibited by law, the board shall use the facilities of the state treasurer in the administration of the trust fund, including, but without limitation thereto, the keeping of records, the management of bank accounts, the transfer of funds and the safekeeping of securities evidencing investments.
(f) The board shall cause an annual audit of the trust fund to be performed for each fiscal year by the state auditor or, in the discretion of the board, by an independent accounting firm and shall cause a report of such audit to be prepared in accordance with applicable accounting principles and made public within ninety (90) days following the end of the fiscal year covered thereby. The board shall cause to be prepared and publicized such financial and other information concerning the trust fund as may from time to time be provided by law duly enacted by the legislature, but in the absence of any law directing the preparation and publication of different reports, the board shall cause to be prepared and made public, within thirty (30) days after the end of each quarterly period in each fiscal year, a report containing (i) a statement of the trust capital then held in the trust fund showing any changes thereto since the last quarterly report, (ii) a statement of the trust income then held in the trust fund showing receipts and withdrawals therefrom during the quarterly period in question and further showing the portion thereof previously appropriated and the portion thereof subject to appropriation but not then appropriated, (iii) a statement of the investments then held in the trust fund including descriptions thereof and the respective values thereof, (iv) a statement of the trust income received to date during the current fiscal year, (v) if such report covers the first, second or third quarterly period, an estimate of the trust income anticipated for the entire current fiscal year and for each of the remaining quarterly periods thereof, and (vi) an estimate of the trust income anticipated for the next succeeding fiscal year and in each of the quarterly periods thereof.
Section 6. Alternative Disposition of Certain Trust Fund Moneys. (a) By any duly enacted law or laws, whether becoming effective before or after the effective date of this amendment, the legislature may appropriate moneys constituting trust capital or trust income or a combination of both for the use or benefit of the Alabama Housing Finance Authority in such aggregate amount as, when added to any amount excluded from the initial trust capital pursuant to clause (3) of the first sentence of Section 4 of this amendment, shall not exceed the sum of $19,500,000. All or any part of the moneys so appropriated may be held in the trust fund until disbursed for the purpose for which appropriated, or all or any part of such moneys may be immediately withdrawn from the trust fund and transferred to the Alabama Housing Finance Authority for the use thereof or, alternatively, transferred to the state and held by it until used to pay expenses for and on behalf of such authority, all in accordance with such law or laws as may from time to time be enacted by the legislature.
(b) In order to provide an alternative source for the moneys appropriated for the use of the board of corrections pursuant to the provisions of Act No. 81-764 enacted at the 1981 Regular Session of the legislature, the legislature may, by any duly enacted law or laws, whether becoming effective before or after the effective date of this amendment, appropriate moneys constituting trust capital or trust income or a combination of both for the use of the board of corrections in making capital expenditures; provided, however, that the aggregate amount so appropriated for the use of the board of corrections and withdrawn from the trust fund shall not exceed an amount computed as the difference between $45,000,000 and the sum of (i) the amount excluded from the initial trust capital pursuant to clause (1) of the first sentence of Section 4 of this amendment and (ii) all other amounts at any time appropriated by the legislature from the proceeds of bonds of the state or other sources for the use of the board of corrections in substitution for or replacement of all or any part of the moneys appropriated pursuant to said Act No. 81-764.
(c) In order to provide an alternative source for the moneys appropriated for the use of the department of mental health pursuant to the provisions of Act No. 81-770 enacted at the 1981 Regular Session of the legislature, the legislature may, by any duly enacted law or laws, whether or not becoming effective before or after the effective date of this amendment, appropriate moneys constituting trust capital or trust income or a combination of both for the use of the department of mental health in making capital expenditures; provided, however, that the aggregate amount so appropriated for the use of the department of mental health and withdrawn from the trust fund shall not exceed an amount computed as the difference between $65,000,000 and the sum of (i) the amount excluded from the initial trust capital pursuant to clause (2) of the first sentence of Section 4 of this amendment and (ii) all other amounts at any time appropriated by the legislature from the proceeds of bonds of the state or other sources for the use of the department of mental health in substitution for or replacement of all or any part of the moneys appropriated pursuant to said Act No. 81-770.
Section 7. Limitation of Personal Liability of Trustees. An individual trustee shall not in any way be personally liable for any liability, loss or expense suffered by the trust fund unless such liability, loss or expense arises out of or results from the willful misconduct or wrongdoing of such trustee.
Section 8. Legislative Oversight Commission. (a) There is hereby created the Alabama Heritage Trust Fund Legislative Oversight Commission to consist of the lieutenant governor, the speaker of the house, and five members each from the house of representatives and the senate to be appointed by the speaker of the house and the lieutenant governor, respectively. If the legislature is in regular session at the time this amendment shall become effective, the original members of the commission shall be appointed at such regular session, and if the legislature is not in regular session at the time this amendment shall become effective, the members of the commission shall be appointed at the next regular session of the legislature. The original members of the commission shall serve for the remainder of their elected terms of office as members of the legislature, and the terms of office of members of the commission shall thereafter correspond to the full four-year terms for which members of the legislature are elected. If at any time there shall be a vacancy among the appointed members of the commission, a successor shall be appointed from the same body of the legislature as that to which the previous incumbent belonged, and such successor shall serve for the remainder of the unexpired term of such previous incumbent.
(b) The commission shall hold an organizational meeting at the state capitol within ten (10) days after the appointment of the original members thereof, and shall elect a chairman and vice chairman from among its members. Thereafter, the commission shall meet, from time to time, at the call of the chairman or vice chairman or upon the request of seven or more members, with such notice and in accordance with such procedure as shall be prescribed by the rules of the commission.
(c) The commission shall adopt its own rules of procedure for the transaction of business, except as otherwise provided in this amendment. A majority of the members of the commission shall constitute a quorum for the purpose of transacting any business or performing any authorized duties. All members of the commission, including both those who serve ex officio and those who are appointed, shall have an equal vote. The commission shall keep full and complete minutes in writing of its proceedings, and every action taken shall be authorized by duly adopted resolution recorded in such minutes.
(d) Each member of the commission shall be entitled to his or her regular legislative compensation and per diem and travel expenses for each day he or she attends a meeting or conducts business of the commission, and such compensation and expenses shall be paid as provided by law out of the funds from time to time appropriated by the legislature to pay the expenses of administering the trust fund.
(e) The commission shall monitor and evaluate the management of the trust fund by the board, shall report to the legislature on both the present and future availability of trust income for appropriation by the legislature, and shall recommend to the legislature the enactment of such laws respecting the trust fund as the commission shall deem desirable; provided, however, that nothing contained in this amendment respecting the commission shall be construed to authorize the legislature to enact laws inconsistent with the express provisions of this amendment.
Section 9. Amendment Self-Executing. This amendment shall be self-executing, but the legislature shall have the right and power to enact laws supplemental to this amendment and in furtherance of the purposes and objectives thereof, provided that such laws are not inconsistent with the express provisions of this amendment.
