HB 133

The State of Alabama currently earmarks by statutory or constitutional requirements more of its state revenues than any other state. This earmarking makes it difficult for the Governor and the Legislature to adequately address funding issues that occur when deducted revenue sources decline or are no longer available

This bill would require all state taxes or fees that are not distributed to the Education Trust Fund or State General Fund or constitutionally distributed to a specific fund or for a specific purpose to be deposited into the State General Fund and appropriated as the Legislature may deem appropriate for the expenditures of the state

To define state taxes or fees for the purpose of this act; and to require all state taxes or fees that are not distributed to the Education Trust Fund or State General Fund or constitutionally distributed to a specific fund or for a specific purpose to be deposited into the State General Fund and appropriated as the Legislature may deem appropriate for the expenditures of the state.

Section 1

For purposes of this act, the term "state taxes or fees" shall mean any tax, fee, license or other source of revenue received by the state pursuant to statute, rule or any other means. This definition shall in no way include: (1) state funds distributed to the Education Trust Fund or State General Fund on the effective date of this act; (2) state funds which are constitutionally dedicated for a specific purpose; (3) state funds which are dedicated to the payment of debt service on outstanding state bonded indebtedness; (4) state funds designated by the federal government or State or Federal court order; (5) Medicaid provider taxes from hospitals, nursing homes, and pharmacies and Medicaid intergovernmental transfers from public hospitals and public nursing homes; (6) state funds used entirely for the purpose of matching available federal funds; or (7) portions of a state-levied tax that are distributed directly to counties.

Section 2

Notwithstanding any other provision of law to the contrary, beginning October 1, 2019, any and all taxes or fees levied by the State of Alabama, its agencies, or instrumentalities, which are not required to be distributed to a specific fund or used for a specific purpose pursuant to the Constitution of Alabama of 1901, as amended, shall be deposited into the State General Fund.

Section 3

Pursuant to the provisions of Amendment 448 to the Constitution of Alabama of 1901, now appearing as Section 71.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, the Legislature shall make appropriation from the State General Fund annually, as the Legislature may deem appropriate for the expenditures by the state during the ensuing budget period for the executive, legislative, and judicial departments of the state, for the payment of public debt, and for education. In addition, the Legislature shall continue to make appropriations of funds not impacted by the provisions of this act.

Section 4

All references to a fund or entity other than the State General Fund contained in any provision of the Code of Alabama 1975, which distributes a state tax or fee, as defined herein, are changed to the State General Fund. All other laws, rules, regulations and legal references of any kind providing for the distribution of a state tax or fee, as defined herein, to a fund or entity other than the State General Fund shall be changed to the State General Fund when the Code of Alabama 1975 is next reprinted and as other laws, rules, regulations and legal references are appropriate, timely and economically feasible.

Section 5

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.