SB424 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

SB424 creates the Alabama Recurring Revenue Fund to hold recurring revenues for the Education Trust Fund and the State General Fund, and starts monthly 80%/20% distributions from that fund to ETF and SGF starting in 2015.

What This Bill Does

It establishes a separate Alabama Recurring Revenue Fund in the state treasury and deposits recurring revenues dedicated for the Education Trust Fund and the State General Fund into this new fund. Each month, the balance of that fund is distributed: 80% to the Education Trust Fund and 20% to the State General Fund. The Department of Revenue must certify that the ETF receives at least the amount of income tax receipts it would have received before this bill. The act does not change the Education Trust Fund Rolling Reserve Act’s rules for its appropriation cap, and it repeals conflicting laws. The law takes effect October 1, 2015.

Who It Affects

• Education Trust Fund (ETF): will receive 80% of the monthly distributions from the new Recurring Revenue Fund, with a requirement that the total ETF revenue kept up to at least what would have been received as income tax receipts prior to enactment.
• State General Fund (SGF): will receive 20% of the monthly distributions from the new Recurring Revenue Fund to support state operating needs.

Key Provisions

• Establishes the Alabama Recurring Revenue Fund as a separate fund in the state treasury, distinct from the ETF and SGF.
• Initial deposits consist of all recurring revenues dedicated for the Education Trust Fund and the State General Fund into the new fund.
• Monthly distributions from the Recurring Revenue Fund are allocated as 80% to the Education Trust Fund and 20% to the State General Fund.
• The Department of Revenue must certify that the ETF’s monthly distribution ensures total ETF revenue equals at least the income tax receipts that would have been deposited into ETF prior to enactment.
• The act does not affect the Education Trust Fund Rolling Reserve Act’s fiscal year cap; distributions to ETF under this act are treated as ETF recurring revenues for that purpose.
• Laws or parts of laws that conflict with this act are repealed.
• The act becomes effective 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