AMENDMENT 536 RATIFIED

Distribution of Oil and Gas Revenues by Escambia County Commission.

A. The Escambia County commission shall distribute oil and gas revenues as provided in this amendment.

1. The Escambia County Oil and Gas Severance Trust, established by Act No. 84-576, H. 664 of the 1984 Regular Session (Acts 1984, p. 1198), its corpus and income shall be continued as provided by Sections 1 and 2 of that act.

2. The members of the Escambia County commission, or their successors in office, shall constitute the trustees of the trust. Provided, however, the members of the Escambia County commission, or their successors in office, may in their discretion, appoint one or more trustees or escrow agents for the trust which trustees or escrow agents shall be trust companies or national or state banks having powers of a trust company within or without the State of Alabama. The trustees shall invest the corpus of the trust only in direct general obligations of, or obligations the payment of the principal of and interest on which are conditionally and irrevocably guaranteed by the United States of America. Provided, however, that, notwithstanding any legal limitation that might otherwise be applicable, the trustees shall further have the authority in their discretion to invest such trust fund in certificates of deposit of any savings and loan associations or banks whether federally or state chartered whose principal office is located in the state, provided that such funds so invested are fully secured by pledge of eligible United States treasury securities.

3. Commencing with the 1984-1985 fiscal year, up to eighty percent (80%) of the net income from the investments authorized in Section A2 of this amendment shall be distributed quarterly, semiannually or annually, as designated by the trustees, to the general fund of the county.

4. The provisions of A1, A2, and A3 of this amendment shall not terminate at the end of twenty years, unless a majority of the qualified electors of the county vote to terminate the provisions by a constitutional amendment duly proposed by the Alabama legislature.

B. Excluding the revenues and income from Section A1, A2 and A3 of this amendment, one-third (1/3) of all net funds when received pursuant to Sections 40-20-8(c)(3) and 40-20-8(c)(4), Code of Alabama 1975, as amended, by Escambia County from the severance tax levied, pursuant to Section 40-20-2, Code of Alabama 1975, as amended, shall be paid to the Escambia County board of education, to be used for educational purposes and to be distributed as follows:

Each public board of education now in existence or hereafter created in Escambia County shall receive a pro rata share of said monies based upon the relation its average enrollment in its schools during the preceding school year bears to the average enrollment of all public schools in Escambia County.

1. The funds received by Escambia County prior to the effective date of this amendatory act from severance tax or privilege tax on oil and gas under any general law, including Sections 40-20-1 through 40-20-13, Code of Alabama 1975, as amended, or any local law whatsoever, and deposited in the county treasury designated as the “Escambia County courthouse and county jail trust fund,” shall be distributed as follows:

(1) All the interest from such investment shall be deposited in the county general fund;

(2) Up to $500,000.00 of the principal shall be deposited in the county general fund; and

(3) The remaining principal shall be deposited as principal into the “Escambia County oil and gas severance trust” as established in Act No. 84-576, H. 664, 1984 Regular Session (Acts 1984, p. 1198), as amended. The earned interest that is generated by this transfer of principal shall be expended according to the provisions of the said Act No. 84-576, as amended, and by Sections A1, A2 and A3 of this amendment.

2. An amount equal to one-tenth of the net funds received by Escambia County pursuant to Sections 40-20-1 through 40-20-13 of the Code of Alabama 1975, as amended, for the general fund of the county or one hundred thousand dollars ($100,000.00) of such funds, whichever is the lesser, shall be appropriated by the Escambia County commission from the county general fund to the Escambia County Industrial Development Authority, created by Act No. 894, S. 773, of the 1978 Regular Session (Acts 1978, p. 1330). Futhermore, the governing body of Escambia County is hereby authorized to deposit directly into an account authorized by the Escambia County Industrial Development Authority on a monthly installment basis. Said development authority shall have the authority to contract with any municipality in Escambia County for services it deems appropriate out of the funds allocated by this section. Any such monies which are not expended by the said authority by September 20, 1982, and each September 30 thereafter, shall at the request of the Escambia County commission be returned to the general fund of the county.

The provisions of this subsection shall become effective immediately upon the first receipt of funds by Escambia County pursuant to Act No. 79-434, H. 148 of the 1979 Regular Session (Acts 1979, p. 687), as amended.

3. An amount equal to ten percent of the total of all net funds received by Escambia County after the effective date of this act, and distribution of funds as provided in Section B1 hereof, from a severance tax or privilege tax on oil and gas under any general law, including Sections 40-20-1 through 40-20-13, Code of Alabama 1975, as amended, or any local law whatsoever, or not otherwise herein allocated, distributed or designated, shall be deposited in the Escambia County general fund.

The provisions of this subsection B3 become effective immediately upon the first receipt of funds by Escambia County pursuant to Act No. 79-434, H. 148, 1979 Regular Session (Acts 1979, p. 687), as amended.