HB619 Alabama 2013 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2013

Title

Taxation, reallocation of a portion of the tax proceeds of a county sales tax which is earmarked for indigent care

Summary

HB619 would reallocate the portion of the county sales tax earmarked for indigent care for counties that have filed Chapter 9 bankruptcy, and end that reallocation when specified bankruptcy events occur.

What This Bill Does

For counties that have filed for Chapter 9 and have an Order for Relief, the bill changes how the indigent care portion of the county sales tax is used: 25% goes to the county general fund, 15% goes to programs for indigent families (housing, transportation, or food), and 60% goes to indigent health care. The reallocation ends as soon as any of these happen: the court vacates the Order for Relief; the bankruptcy case is dismissed; or a plan to adjust the county's debts is confirmed. The act would take effect on the first day of the third month after passage and governor's approval, or become law otherwise.

Who It Affects

• Counties in Alabama that have filed for Chapter 9 bankruptcy and have an Order for Relief; their funding allocations for the indigent care portion would be redistributed according to the new split.
• Residents within those counties who rely on indigent health care, housing, transportation, or food assistance may see changes in how funds are allocated to those services.

Key Provisions

• Allocates the indigent care portion of the county sales tax from affected counties into three categories: 25% to the county general fund, 15% to indigent family housing/transportation/food programs, 60% to indigent health care.
• Applies only to counties that filed Chapter 9 bankruptcy and have an Order for Relief under Section 921(d) of the Bankruptcy Code.
• Termination triggers: the earliest of (1) vacating the Order for Relief, (2) dismissal of the Chapter 9 case, or (3) confirmation of a plan for the adjustment of debts.
• Effective date: the first day of the third month following passage and governor approval, or upon becoming law if not requiring 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

Taxation