SB 323

To amend Sections 29-9-4 and 29-9-5, Code of Alabama 1975, relating to the Education Trust Fund Rolling Reserve Act to allow the Education Trust Fund Budget Stabilization Fund to be used to provide temporary emergency assistance funding to the public schools and institutions of higher education to repair damages resulting from a natural disaster declared by the Governor and to allow funds in the Education Trust Fund Advancement and Technology Fund to be used for school security

Section 1

Section 29-9-4 and Section 29-9-5, Code of Alabama 1975, are amended to read as follows: "§29-9-4. "There is hereby created in the State Treasury an Education Trust Fund Budget Stabilization Fund and an Education Trust Fund Advancement and Technology Fund. Any monetary interest which accrues in the Education Trust Fund Budget Stabilization Fund shall be retained in the fund from year to year and shall be subject only to the provisions of this chapter. On or before November 15 of each fiscal year, if the total revenues deposited into the Education Trust Fund SB323 during the immediately preceding fiscal year exceed the fiscal year appropriation cap for the immediately preceding fiscal year, the excess shall be transferred to the Education Trust Fund Rainy Day Account until the account has been repaid in full. If the account has been repaid in full, any excess remaining shall be transferred to the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Advancement and Technology Fund created in this chapter. The transfers to the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Advancement and Technology Fund shall be made annually as follows: "(a) Any excess remaining for the fiscal year ending September 30, 2015, up to two percent of the previous year's Education Trust Fund appropriations, shall be transferred to the Education Trust Fund Budget Stabilization Fund. Thereafter, an amount up to one percent of the previous year's Education Trust Fund appropriations shall be transferred to the Education Trust Fund Budget Stabilization Fund annually until the Fund reaches seven and one-half percent of the previous year's appropriations from the Education Trust Fund. "(b) Funds in excess of those transferred in subsection (a) shall be transferred to the Education Trust Fund Advancement and Technology Fund each year. Amounts in the Education Trust Fund Advancement and Technology Fund shall be appropriated by and through an independent supplemental SB323 appropriation bill for the following nonrecurring expenses: repairs or deferred maintenance of facilities for public education purposes in the state, for classroom instructional support as provided in Section 16-13-231(b)(2)c. and Section 16-13-231.3, for insuring facilities, for transportation as provided in Section 16-13-233, for school security measures, and for the acquisition or purchase of education technology and equipment, or both. These funds, however, shall not be used as a pledge for the issuance or payment of debt service. No funds shall be appropriated until the balance of the Education Trust Fund Advancement and Technology Fund at the end of the previous fiscal year equals or exceeds $10 million. Amounts in the Education Trust Fund Advancement and Technology Fund shall be budgeted and allotted in accordance with Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12, but shall not be limited by the fiscal year appropriation cap. "(c) The annual appropriation of these funds shall be divided between the public schools and institutions of higher education in the state in accordance with the percentage split between these two sectors of education as certified by the Legislative Fiscal Office at the end of the preceding fiscal year. Public schools shall be interpreted to include the Alabama School of Math and Science, the Alabama School of Fine Arts, the portion of the Alabama Institute for SB323 Deaf and Blind providing appropriate Elementary/Secondary instruction, and may include the Department of Youth Services School District." "§29-9-5. "(a) Except as provided in Section 29-9-3, and in subdivision (b) below, amounts in the Education Trust Fund Budget Stabilization Fund may be withdrawn only to prevent proration in the Education Trust Fund. The Governor must certify to the state Comptroller and notify the Legislature that proration would occur in the Education Trust Fund before funds may be withdrawn to prevent proration. Following the certification and notification by the Governor, withdrawals may be made from the Education Trust Fund Budget Stabilization Fund to prevent proration; however, the withdrawals shall be limited to the amount of the anticipated proration and funds allotted only to the extent necessary to avoid proration of appropriations from the Education Trust Fund. Any funds withdrawn from the Budget Stabilization Fund in excess of the amount necessary to avoid proration shall be transferred back to the Budget Stabilization Fund within 30 days after the end of the fiscal year in which withdrawals are made. "(b)Amounts in the Education Trust Fund Budget Stabilization Fund may be withdrawn upon certification by the Governor that a natural disaster for which the Governor declared a state of emergency caused damage to public schools SB323 and/or institutions of higher education and funds are needed to provide emergency temporary funding for repairs of the damages. The Governor must certify to the state comptroller and notify the Legislature the amount of funds needed for emergency repairs before funds may be withdrawn and distributed to the impacted public school or institution of higher education. In certifying the amount of funds needed for emergency repairs, the Governor shall take into account any emergency funding provided to the impacted public school or institution of higher education by an insurance provider, including, but not limited to, the State Insurance Fund. Following the certification and notification by the Governor, withdrawals may be made from the Education Trust Fund Budget Stabilization Fund; however, withdrawals shall be limited to the amount necessary to provide emergency repairs and shall not exceed a total of ten percent (10%) of the current balance of the fund, and at no time shall more than ten percent (10%) of the total cumulative amount of revenues distributed to the Budget Stabilization Fund be outstanding. Any funds withdrawn from the Budget Stabilization Fund pursuant to this subdivision must be repaid by the public school or institution of higher education receiving the funds as expeditiously as possible, but no later than the conclusion of the second fiscal year of the state following withdrawal. The repayment shall be made from the first insurance settlement proceeds SB323 received by the public school or institution of higher education; provided, however, that if the insurance settlement proceeds received are less than the emergency repair funding received by the public school or institution of higher education, then the remaining repayment shall be made from any other funds available to the public school or institution of higher education. Any public school or institution of higher education that receives emergency repair funding pursuant to this subdivision and fails to repay the amount received within the two-year period shall be ineligible to receive any additional emergency repair funding pursuant to this subdivision or any appropriations from the Education Trust Fund Advancement and Technology Fund until such time as the funds are repaid. Any amount not repaid within the two-year period referenced above shall accrue interest at the rate of percent annually until the total amount, including accrued interest, is fully repaid."

Section 2

This act shall become effective immediately upon its passage and approval by the Governor, or its otherwise becoming law. SB323 President and Presiding Officer of the Senate Speaker of the House of Representatives Senate 13-MAR-18. I hereby certify that the within Act originated in and passed the Senate. Senate 28-MAR-18 I hereby certify that the within Act originated in and passed the Senate, as amended by Executive Amendment. Patrick Harris, Secretary. House of Representatives Amended and Passed: 22-MAR-18 House of Representatives Passed: 29-MAR-18, as amended by Executive Amendment. By: Senator Pittman