SB12 Alabama 2015 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular 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

SB12 creates the Alabama Recurring Revenue Fund to hold recurring revenues for the Education Trust Fund and the State General Fund and directs monthly distributions of 78% to ETF and 22% to SGF.

What This Bill Does

It establishes a separate Alabama Recurring Revenue Fund in the state treasury and initially deposits recurring revenues designated for the Education Trust Fund and the State General Fund into this new fund. Each month, the fund distributes money to ETF and SGF in a 78% to 22% split. The Department of Revenue must certify that the ETF’s monthly distribution is enough to match the income tax receipts that would have gone to ETF before the bill, and the measure notes it does not affect the Education Trust Fund Rolling Reserve Act; distributions under this act are considered recurring revenues for ETF. The act also repeals laws that conflict with it and takes effect on October 1, 2015.

Who It Affects

• Education Trust Fund (ETF): receives 78% of recurring revenues each month and is protected to receive at least the amount of income tax receipts that would have been deposited into ETF prior to enactment.
• State General Fund (SGF): receives 22% of recurring revenues each month.
• Department of Revenue: responsible for reviewing and certifying that ETF’s monthly distribution meets the specified funding level.
• State Treasury/Financial management: administers the new Alabama Recurring Revenue Fund and handles deposits and monthly distributions.

Key Provisions

• Establishment of the Alabama Recurring Revenue Fund as a separate fund in the State Treasury, initially receiving all recurring revenues dedicated for the Education Trust Fund and the State General Fund.
• A monthly distribution rule that, on the last day of each month, allocates funds from the Recurring Revenue Fund to ETF (78%) and SGF (22%).
• A certification requirement by the Department of Revenue ensuring ETF receives at least the amount of income tax receipts that would have been deposited into ETF prior to enactment.
• Clarification that distributions under this act count as the recurring revenues for ETF under the Education Trust Fund Rolling Reserve Act, and that the act does not alter that existing act.
• Repeal of conflicting laws and an effective date of October 1, 2015.

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