HB560 Alabama 2012 Session

Summary

Primary Sponsor

Jim Barton

Republican

Session

Regular Session 2012

Title

Children First Trust Fund, allocation of to State Board of Education changed to General Fund, Department of Human Resources to administer percent of fund allocated to the Children's Trust Fund and the State Multiple Needs Children's Fund, funding to Juvenile Probation Services Fund, Department of Forensic Sciences, increased, allocation to Department of Youth Services, ABC Board, and Department of Rehabilitation Services deleted, Secs. 41-10-638, 41-15B-2.2 am'd

Summary

HB560 changes how tobacco settlement funds and the Children First Trust Fund are distributed in Alabama, directing money to many state programs and requiring safeguards to grow overall funding without reducing existing support.

What This Bill Does

It amends two code sections to rewrite the allocation of tobacco settlement funds and Children First Trust Fund money. It sets specific annual transfer amounts to the Children First Trust Fund, directs large portions of the funds to education, child welfare, health, and juvenile services, and establishes safeguards that funds will increase rather than replace current support. It also creates administration rules, designates university funding, and requires annual reporting on how the funds are used, with immediate effect once enacted.

Who It Affects

• State agencies and the Administrative Office of Courts that will receive defined percentages of tobacco settlement funds to support programs in health, education, child welfare, juvenile services, mental health, and related areas (e.g., Department of Public Health; State Board of Education; Department of Human Resources; Alabama Medicaid Agency; Department of Mental Health and Mental Retardation; Department of Youth Services; Juvenile Probation Services Fund; Department of Forensic Sciences; Department of Rehabilitation Services; Alcoholic Beverage Control Board).
• Children, youths, and families in Alabama who rely on these services, including health programs, educational programs (alternative schools and school safety), foster care and child care services, juvenile justice programs, and mental health and protective services.

Key Provisions

• Amends 41-10-638 to allocate tobacco revenues to the Children First Trust Fund with annual caps (up to $60,000,000 in 2000, up to $65,000,000 in 2001, up to $70,000,000 in 2002 and thereafter); sets aside $2,000,000 to the Alabama Senior Services Trust Fund; and directs the remainder to the State General Fund with specified distributions to Medicaid and related programs, plus a safeguard to ensure new money does not replace existing support.
• For fiscal years after the required allocations, the first $38,800,000 of tobacco revenues shall be split 50% to the Alabama Medicaid Agency and 50% to the State General Fund; in 2000-2001 up to $40,000,000 to Medicaid (with up to $3,000,000 for the Medicaid Waiver Program) and in 2002 and thereafter up to $45,000,000 to Medicaid (with up to $3,000,000 for the Medicaid Waiver Program).
• Amends 41-15B-2.2 to designate administration of the fund: up to $225,000 per year (or an equivalent percentage) for administration by the council and the Commissioner of Children's Affairs; from 2012 through 2020, $1,000,000 per year designated for the University of South Alabama.
• Allocates remaining fund percentages to specific programs: 22% to the State Board of Education (education programs including alternative schools and the School Safety Enhancement Program with local match, evaluation, and reporting requirements); 20% to the Department of Human Resources (foster care, child care management agencies, adoptions, shelter/residential services, child advocacy centers, and other children’s services); 5% to the Children’s Trust Fund (community-based prevention, at-risk youth, gang prevention, and related services); 5% to the State Multiple Needs Children's Fund (county distributions and statewide facilitation for multiple-needs children); 5% to the Department of Mental Health and Mental Retardation (community-based services and intensive programs, including treatment for gang or drug-related problems); 10% to the Juvenile Probation Services Fund (to unify and upgrade juvenile justice services and support county-level probation officer funding and positions); 17% to the Department of Youth Services (facilities, aftercare, and intensive programs including wilderness programs and sex offender treatment, with annual accounting and safeguards); 3.5% to the Alabama Medicaid Agency; 1% to the Alcoholic Beverage Control Board; 1% to the Department of Forensic Sciences; and 0.5% to the Department of Rehabilitation Services.
• Additional program details include: SBOE funds may support alternative schools and the School Safety Enhancement Program with criteria such as local matching funds, program evaluation, parental involvement, and annual reporting; DHR funds cover foster care and child care management and ensure specific subgroups receive defined shares; DYS funds support secure beds, graduated release facilities, regional detention subsidies, and other youth services with accountability reporting; Mental Health funds support community-based services and treatment programs for youths with behavioral or addiction issues; and the rest of the funds fund various child welfare, health, and protection initiatives with safeguards to prevent substitution of existing funding.

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

Subjects

Children First Trust Fund