HB682 Alabama 2013 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2013

Title

Alabama Trust Fund, transfer of amount from pursuant to const. amend., repayment of transfer, increased tax on cigarettes, proceeds used to repayment and for other specified purposes relating to Medicaid, Medicaid Trust Fund created, const. amend.

Summary

HB682 would require repayment of funds transferred from the Alabama Trust Fund, raise cigarette taxes by 5 cents per cigarette, and create a Medicaid Trust Fund to support Medicaid-related spending.

What This Bill Does

It requires that the funds transferred from the Alabama Trust Fund under Amendment 856 be repaid within five years after the 2015 fiscal year. It also increases the cigarette tax by five cents per cigarette starting October 1, 2015, with proceeds first used to repay the transferred funds and then directed toward Medicaid purposes; after full repayment, the extra tax funds would go to the Medicaid Agency. The bill creates a Medicaid Trust Fund within the State Treasury, administered by the Medicaid Agency, to support regional care organizations and to cover certain unfunded liabilities, with specific reserve requirements. The repayment and fund allocations are laid out in a phased schedule through fiscal year 2020, and the Medicaid Trust Fund’s creation would take effect when regional care organization legislation is enacted.

Who It Affects

• Cigarette buyers in Alabama: will pay an additional five-cent tax per cigarette starting 10/1/2015, increasing the cost of cigarettes.
• State Medicaid program and related financial structures (Medicaid Agency, Alabama Trust Fund, Medicaid Trust Fund, and regional care organizations): funds will be redirected to repay the transferred funds and to support Medicaid roles and regional care delivery, with new reserve requirements and administration.

Key Provisions

• Repayment of funds transferred from the Alabama Trust Fund under Amendment 856 must occur within five years following the fiscal year ending 9/30/2015, with a specific schedule of how proceeds are allocated each year.
• In fiscal years 2016-2020, cigarette tax proceeds are divided between the Medicaid Trust Fund, the Alabama Trust Fund, and the Medicaid Agency according to a detailed annual plan; 2016–2019 schedules specify amounts to the Medicaid Trust Fund or Alabama Trust Fund and the remainder to the Medicaid Agency.
• Beginning 10/1/2015, there is an additional $0.05 tax on each cigarette; proceeds are used to repay transferred funds and for other specified uses; after repayment, the additional tax goes to the Medicaid Agency.
• Medicaid Trust Fund is created within the State Treasury, administered by the Medicaid Agency, to support regional care organizations and maintain a reserve equal to either $250,000 or 25% of an organization’s monthly expenditures, whichever is greater; remaining funds may cover unfunded liabilities of regional care organizations.
• Subsection (e) takes effect when legislation creating regional care organizations is passed, linking the Medicaid Trust Fund to the new regional care delivery framework.
• The overall proposal requires voter approval as a constitutional amendment via a ballot description and election.

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