HB781 Alabama 2012 Session

Summary

Primary Sponsor

Artis McCampbellRepresentative

Democrat

Co-Sponsors

John W. RogersElaine BeechRod ScottLawrence McAdoryNapoleon BracyDarrio MeltonGreg BurdineDexter GrimsleyJoe HubbardCraig FordJohn RobinsonRalph HowardChris EnglandYvonne KennedyMarcel BlackThomas JacksonJames E. BuskeyMary MooreMerika ColemanJuandalynn Givan

Session

Regular Session 2012

Title

Education Trust Fund (ETF), transfer of certain funds to State General Fund and to provide for repayment to the ETF, Sec. 29-9-2, 29-9-3 am'd

Summary

This bill changes how excess Education Trust Fund revenues are handled by diverting some to the State General Fund, creates new mechanisms to repay ETF and restore funds, and revises the ETF appropriation cap calculation.

What This Bill Does

It establishes an in lieu of payment based on amounts exceeding ETF appropriations to be paid to the State General Fund instead of the Education Rainy Day Account. It would allow excess ETF revenues to be transferred to the General Fund and provide a source to repay the Education Trust Fund. It restores to the ETF an amount up to the appropriation level under Act 2007-361. It adds a new section to allow transfers of excess ETF revenues to the General Fund, while giving the ETF priority on Gulf oil spill funds transferred to the General Fund.

Who It Affects

• Education Trust Fund (ETF) — potential changes to its annual cap, possible restoration of funds up to Act 2007-361, and new repayment mechanisms.
• State General Fund — may receive a portion of ETF revenues when they exceed the cap or in lieu of repayment to the ETF.
• Education Rainy Day Account — would be funded through an in lieu of payment arrangement that benefits the General Fund; repayment sources may be impacted.
• Education Trust Fund Budget Stabilization Fund and related ETF funds — affected by cap calculations and potential transfers to the General Fund.
• Gulf oil spill funds (federal/settlement money) — ETF has priority on transfers to the General Fund from these funds.
• Department of Finance and Fiscal Office (and the Legislature) — responsible for certifying cap calculations and deciding on transfers or appropriations from Stabilization funds.

Key Provisions

• Amends Sections 29-9-2 and 29-9-3 to create an alternative payment schedule and establish an in lieu of payment to the State General Fund for amounts that exceed ETF appropriations from the Rainy Day Account.
• Allows restoration to the Education Trust Fund of an amount up to the appropriation level as defined under Act 2007-361.
• Adds Section 29-9-4.1 authorizing the Legislature to transfer excess ETF revenues to the General Fund and states ETF has priority on funds received from Gulf oil spill litigation transfers to the General Fund.
• Provides a detailed formula and rules for calculating the fiscal year appropriation cap, including components based on recurring and nonrecurring revenues, year-over-year changes, and adjustments for new or removed recurring revenue.
• Imposes a cap-related constraint: if annual repayment to the Rainy Day Account or in lieu of repayment would exceed $100 million beginning in fiscal year 2013, ETF appropriations cannot exceed the cap.
• Allows the Legislature to appropriate from the ETF Budget Stabilization Fund to cover the difference if the cap would otherwise be lower than the prior year’s total ETF appropriations.
• Effective date: immediate upon passage and approval.

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

Subjects

Education Trust Fund