HB177 Alabama 2013 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2013

Title

Alabama Trust Fund, transfer of amount from, to State General Fund as pursuant to const. amend., increase on cigarettes, proceeds used to repay funds, appropriation, const. amend.

Summary

HB177 would require repayment with interest of funds moved from the Alabama Trust Fund to the General Fund under Amendment 856, funded by a new 50-mill cigarette tax, with cigarette tax proceeds used to repay and then directed to Medicaid afterward.

What This Bill Does

Proposes a constitutional amendment requiring repayment with interest of the funds transferred from the Alabama Trust Fund within six years after the 2015 fiscal year. It sets a repayment schedule (50 million in 2017-2018, 100 million in 2019-2020, 150 million in 2021, and the remaining balance in 2022) and imposes an additional 50-mill cigarette tax whose proceeds will be used to repay the transferred funds; after full repayment, cigarette tax revenue would go to the Alabama Medicaid Agency. If repayment is not complete by 2022, any unpaid amount would be appropriated from the State General Fund in that year.

Who It Affects

• Alabama Trust Fund and State General Fund, as repayments will be required and may involve General Fund appropriations if shortfalls occur.
• Cigarette purchasers in Alabama, who would pay an added 50-mill tax to fund the repayment.
• Alabama Medicaid Agency, which would receive cigarette tax proceeds after full repayment is achieved.
• State government overall, which would be affected by the transfer terms and potential General Fund support if repayment timing slips.

Key Provisions

• Funds transferred from the Alabama Trust Fund under Amendment 856 must be repaid with interest within six years after the fiscal year ending September 30, 2015.
• Repayment schedule: $50,000,000 in fiscal years 2017 and 2018; $100,000,000 in fiscal years 2019 and 2020; $150,000,000 in fiscal year 2021; remaining balance in fiscal year 2022.
• Imposes an additional 50-mill cigarette tax; proceeds used to repay the transferred funds; after full repayment, cigarette tax proceeds go to the Alabama Medicaid Agency.
• If full repayment is not complete by fiscal year 2022, any unpaid amount will be appropriated from the State General Fund for that year.
• Election to approve the constitutional amendment would be held as described in the bill.

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

Subjects

Appropriations