HB127 Alabama 2011 Session

Summary

Primary Sponsor

Joseph C. Mitchell

Democrat

Co-Sponsors

Dan WilliamsApril WeaverEd HenryWes LongRichard BaughnBecky NordgrenMac ButtramKurt WallaceJohn MerrillWayne JohnsonMike JonesPaul BeckmanMark TuggleAllen FarleyLynn GreerWilliam RobertsDemetrius C. NewtonOliver RobinsonJohn RobinsonElwyn ThomasMac McCutcheonJoe HubbardSteve McMillanJim McClendonMicky HammonAllen TreadawayJohn W. RogersLawrence McAdoryKerry RichTerri CollinsDexter Grimsley

Session

Regular Session 2011

Title

Coal, excise and privilege tax, termination date extended, tax proceeds further distributed, Sec. 40-13-6, 40-13-8 am'd. (2011-20623)

Summary

HB127 would extend the coal tax to Oct 1, 2016 (unless the Legislature extends it) and change how coal tax receipts are distributed to state funds, local governments, and development programs, including miners’ retraining.

What This Bill Does

Extends the coal excise and privilege tax termination date to October 1, 2016 unless extended by the Legislature. It rewrites how severance tax receipts are distributed from the Alabama State Docks Bulk Handling Facility Trust Fund, prioritizing bond and reserve payments, then transferring remaining funds to the State General Fund or keeping funds in the trust if a projected deficiency is reported; allocates specific amounts to the Alabama Mining Academy, certain county and local funds, libraries, and development authorities, with prorating if funds are insufficient. It adds ongoing distribution to various community development foundations and economic development associations with annual audits, and requires a portion of mining academy funds to retrain laid-off coal miners.

Who It Affects

• Coal industry and coal tax payers in Alabama: the coal excise and privilege tax would continue only through Oct 1, 2016 unless extended.
• Alabama State Docks Department and its Bulk Handling Facility Trust Fund: new rules determine when and how remaining severance tax receipts are moved to the General Fund or retained to cover deficiencies, and when transfers to the Department occur.
• Local governments and public entities receiving funds: Tuscaloosa County General Fund, Jefferson County General Fund, Walker County Economic and Industrial Development Authority, and towns like Vance and Brookwood, plus Tuscaloosa County Public Library and Tuscaloosa County Board of Education, receive designated annual allocations.
• Alabama Mining Academy and coal miners: a portion of mining academy funds is designated for retraining miners who have lost their jobs.
• Economic and community development groups across several counties: foundations and development associations receive annual distributions (e.g., Winston County, Cullman County, Marion County, Jackson County, Fayette County, West Alabama groups) and must be audited.
• All recipients: distributions may be prorated if coal tax revenue is not enough to cover all allocated amounts.

Key Provisions

• Extension of the coal excise and privilege tax termination date to October 1, 2016 unless extended by the Legislature.
• Amendments to Section 40-13-6 establish the distribution flow of severance tax proceeds: after bond/reserve requirements, remaining receipts typically go to the State General Fund; if a projected deficiency is reported, funds stay in the Alabama State Docks Bulk Handling Facility Trust Fund and may be transferred to the Alabama State Docks Department up to the deficiency amount; then specific allocations are made to the Alabama Mining Academy and designated local funds.
• Explicit, recurring allocations to local governments, libraries, and development authorities, plus a mechanism to prorate if funds are insufficient and a priority rule if Tuscaloosa County allocations dip below certain thresholds.
• Amendments to Section 40-13-8 extend the coal tax termination date to October 1, 2016 (and clarifies the general rule that the tax terminates unless extended).
• Section 2 requires prorating of distributions among recipients if coal tax revenue does not generate enough to cover the planned amounts.
• Section 1(c) directs that a portion of Alabama Mining Academy funds be used to retrain coal miners who have lost their jobs.
• All foundations and associations receiving funds under this act must be annually audited, with audits submitted to the Legislature.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation