HB 296

Under present law, the fiscal year of the state begins on October 1 and ends on September 30

This bill would change the beginning of the fiscal year for the State of Alabama and instrumentalities of the state to July 1 of each year, starting with the 2022 fiscal year which is to begin July 1, 2021

This bill would provide for the definition of the fiscal year for the state; change the date of the fiscal year; provide for a nine-month implementation fiscal year from October 1, 2020 through June 30, 2021; and authorize the Governor to promulgate procedures necessary to implement this act

This bill would provide that all appropriations made for the term that is the current lawful fiscal year 2021 would be allotted to conform with the nine-month implementation fiscal year and the first quarter of the 2022 fiscal year; provide that all sum certain distributions of tax revenue shall be made at 75 percent (made at the nine months of estimated monthly revenue) of the sum certain amounts during the implementation fiscal year; and authorize conformity of dates with the new fiscal year as provided herein with the Code of Alabama 1975

To amend Sections 1-3-4, 11-8-1, 11-43A-29, 11-43A-94, 11-43C-41, 11-44C-41, 11-44E-110 and 16-13-1 Code of Alabama 1975, to change the date of the fiscal year and to provide for the implementation of the new fiscal year period.

Section 1

Sections 1-3-4, 11-8-1, 16-13-1, 11-43A-29, 11-43A-94, 11-43C-41, 11-44C-41, and 11-44E-110 Code of Alabama 1975, are hereby amended to read as follows:

§1-3-4. The fiscal year of the government shall commence on the first day of October and end on the thirtieth day of September. This fiscal year shall be used for purposes of making appropriations and of financial reporting and shall be uniformly adopted by all departments, institutions, bureaus, boards, commissions and other state agencies.

(b) Beginning July 1, 2021, the fiscal year of the government shall commence on the first day of July and end on the thirtieth day of June. This fiscal year shall be used for purposes of making appropriations and of financial reporting and shall be uniformly adopted by all departments, institutions, bureaus, boards, commissions and other state agencies, county governments, and city and county boards of education.

§11-8-1.

For the purposes of this chapter the fiscal year shall begin October 1 and shall end September 30 following on the dates as provided for state government in Section 1-3-4.

§11-43A-29.

The fiscal year of the municipality shall begin on the first day of each October in each year and shall end on the last day of each September on the dates as provided for state government in Section 1-3-4. Such fiscal year shall also constitute the budget and accounting year. As used in this article the term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.

The city manager, at least 45 days prior to the beginning of each budget year, shall submit to the council a budget proposal, with explanations. The council shall adopt a budget, by ordinance, prior to the beginning of each fiscal year. The budget so adopted shall be a public record and shall be available for inspection by the general public. Any changes in the budget, during the course of the budget year, shall be done by ordinance.

§11-43A-94.

(a) The fiscal year of the municipality shall begin on the first day of each October in each year and shall end on the last day of September on the dates as provided for state government in Section 1-3-4. Such fiscal year shall also constitute the budget and accounting year. As used in this article, the term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.

(b) The city manager, at least 45 days prior to the beginning of each budget year, shall submit to the council a budget proposal with explanations. The council shall adopt a budget, by ordinance, prior to the beginning of each fiscal year. The budget so adopted shall be a public record and shall be available for inspection by the general public. Any changes in the budget during the course of the budget year shall be made by ordinance.

§11-43C-41.

The fiscal year of the city government shall end on the last day of September of each calendar year begin and shall end on the dates as provided for state government in Section 1-3-4. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term

budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.

§11-44C-41.

The fiscal year of the city government shall end on the last day of September of each calendar year begin and shall end on the dates as provided for state government in Section 1-3-4. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term

budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.

§11-44E-110.

The fiscal year of the city government shall begin on the first day of October and shall end on the last day of September of each calendar year on the dates as provided for state government in Section 1-3-4. Such fiscal year shall also constitute the budget and accounting year. As used in this chapter, the term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.

§16-13-1.

The fiscal year of every board of education shall begin October 1 and end September 30 on the dates as provided for state government in Section 1-3-4."

Section 2

The Governor of Alabama shall promulgate procedures deemed necessary to affect the orderly implementation of the change in the fiscal year as required by this act.

Section 3

Fiscal year 2021, which begins October 1, 2020 shall, upon passage of this act, become a nine-month implementation fiscal year which ends June 30, 2021. All appropriations made for the term that is the current lawful fiscal year 2021 shall be valid for the period October 1, 2020 through September 30, 2021, but shall be for the nine-month implementation fiscal year and 25 percent of the appropriations shall be for the first quarter (July 1 through September 30, 2021) for the new fiscal year 2022.

Section 4

In those instances where the law provides for a sum certain of tax revenue to be distributed in the fiscal year, a total of 75 percent of such sum certain amounts of tax revenue shall be distributed for the nine-month implementation fiscal year only. Such sum certain amounts of tax revenue shall be distributed as provided by law for the new fiscal year 2022 and thereafter.

Section 5

All references made to the fiscal year of the state within the Code of Alabama 1975 shall be restated to conform to the newly adopted July 1 through June 30 fiscal year, beginning with the fiscal year 2022.

Section 6

It is the intention of the act, in changing the date of the fiscal year, to allow the same number of advance days to all state agencies, departments, boards, commissions, institutions, or districts to do any act required of them by statue or regulation which was previously measured by the October 1 fiscal year. Therefore any such agency, department, board, commission, institution, or district is authorized to compute time limitation requirements imposed on them in accordance with the nine-month implementation fiscal year and the new July 1 fiscal year whether or not such time limitations are referred to in the Code of Alabama 1975, by a specific date or by a set number of days.

Section 7

The Code Commissioner is directed to replace all fiscal year begin and end date references in the Code of Alabama 1975, to reflect the beginning date of the first day of July and end with the thirtieth day of June, inclusive, each year. No statute or resolution shall be deemed invalid due to the change in fiscal year implemented under the provisions of this act.

Section 8

This act shall become effective immediately upon its passage and approval, by the Governor, or on its otherwise becoming law.