SB375 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: Regular Session 2015
Title: Taxation, receipts, state entities, authority to unearmark and use for other areas where funding has been reduced
Summary: Allows Alabama state entities to redirect state tax receipts designated for a specific purpose to other internal uses to offset funding reductions, with protections for certain funds.
What This Bill Does
If enacted, state agencies that receive state tax receipts can spend those funds on other functions within the same agency to offset yearly funding reductions. This flexibility does not apply to constitutionally dedicated funds, Medicaid provider taxes from hospitals, nursing homes, and pharmacies, Medicaid intergovernmental transfers from public hospitals and nursing homes, funds designated by the federal government or court orders, or portions of taxes distributed directly to counties. It also clarifies that appropriations from the State General Fund and the Education Trust Fund are not covered by these provisions.

Who It Affects
State agencies and other state entities that receive state tax receipts, who could reallocate those funds to offset funding reductions within the entity.
Funds and programs that are constitutionally dedicated or restricted (such as Medicaid related funds, intergovernmental transfers, federal or court-ordered funds, and county-distributed portions) which are protected from reallocation.

Key Provisions
Defines state tax receipt as any tax, fee, license or other revenue received by a state entity, excluding specific appropriations from the State General Fund and the Education Trust Fund.
Authorizes state entities receiving designated state tax receipts to expend those funds for other functions within the entity to offset reductions in funding, with exclusions for certain protected funds.
Excludes constitutionally dedicated funds, Medicaid provider taxes from hospitals, nursing homes and pharmacies, Medicaid intergovernmental transfers from public hospitals and public nursing homes, funds designated by federal government or court orders, and certain county-distributed funds from reallocation.
Prohibits automatic fee increases to replenish funds and prevents any fund from being depleted by this act.
Requires each state entity to ensure compliance with the new provisions.
Includes severability clause and immediate effectiveness after the governor signs the act.

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