HB13 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Will AinsworthLt. Governor

Republican

Session

First Special Session 2015

Title

Alabama Recurring Revenue Fund, established, to receive certain percentages of recurring revenue sources of the Education Trust Fund and the State General Fund

Summary

HB13 creates the Alabama Recurring Revenue Fund to collect recurring revenues for the Education Trust Fund and the State General Fund and distribute 80% to ETF and 20% to SGF each month, starting October 1, 2016.

What This Bill Does

It establishes the Alabama Recurring Revenue Fund as a separate fund in the state treasury and initially deposits recurring revenues dedicated for the Education Trust Fund and the State General Fund into it. Each month, the ARRF balance is distributed 80% to the Education Trust Fund and 20% to the State General Fund. The Department of Revenue must certify that the monthly distributions to the Education Trust Fund are at least equal to the income tax receipts that would have been deposited into the ETF before the bill. The act clarifies that distributions counted under this bill for ETF are considered ETF recurring revenue for the purposes of the Education Trust Fund Rolling Reserve Act, and it becomes effective October 1, 2016.

Who It Affects

• Education Trust Fund: will receive 80% of monthly recurring revenue distributions from the Alabama Recurring Revenue Fund and has a target to receive at least the amount of income tax receipts that would have gone to ETF prior to enactment.
• State General Fund: will receive 20% of monthly recurring revenue distributions from the Alabama Recurring Revenue Fund.

Key Provisions

• Establishes the Alabama Recurring Revenue Fund as a separate fund in the State Treasury, distinct from the Education Trust Fund and the State General Fund.
• Requires that recurring revenues dedicated for the ETF and SGF be deposited into the Alabama Recurring Revenue Fund initially.
• Provides a monthly distribution from the ARRF: 80 percent to the Education Trust Fund and 20 percent to the State General Fund.
• Requires the Department of Revenue to certify that the ETF monthly distributions are sufficient to equal the prior year’s income tax receipts that would have been deposited into the ETF.
• States that ARRF distributions to the ETF are to be treated as the ETF’s recurring revenues for the purposes of the Education Trust Fund Rolling Reserve Act’s appropriation cap.
• Repeals conflicting laws and makes the act effective October 1, 2016.

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