HB 37

Currently, some Alabama tax and revenue statutes dedicate specific state tax receipts to be expended for specific entities for specific purposes. Excluding State General Fund and Education Trust Fund appropriations, state tax receipts that are unexpended at the conclusion of a fiscal year are generally retained by the specific entities and do not revert to the State General Fund

This bill will provide for the use of a portion of the unexpended state tax receipts as defined herein for employee bonuses and transfer remaining amounts to the State General Fund

To define state tax receipts for the purpose of this act; and to provide for the distribution and use of unexpended state tax receipts at the conclusion of each state fiscal year.

Section 1

For purposes of this act, the term "state tax receipts" shall mean any tax, fee, license or other source of revenue received by a state entity pursuant to statute, rule or any other means. This definition shall in no way include: (1) appropriations from the State General Fund and the Education Trust Fund; (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) funds designated by the federal government or State or Federal court order; (5) to Medicaid provider taxes from hospitals, nursing homes and pharmacies and Medicaid intergovernmental transfers from public hospitals and public nursing homes; or (6) portions or a state-levied tax that are distributed directly to counties.

Section 2

Any other law or laws to the contrary notwithstanding, beginning with the fiscal year that concludes on September 30, 2019 a state entity that receives state tax receipts which are designated for a particular purpose may retain ten percent of any unexpended balance of the state tax receipts at the end of each fiscal year to be used exclusively to provide bonuses to the employees of the entity. The bonuses shall be provided on an equal basis to all employees of the entity notwithstanding the job classification of the employee. Any remaining unexpended balance of state tax receipts shall be transferred to the State General Fund.

Section 3

Each state entity shall be responsible for ensuring compliance with the provisions of Section 2.

Section 4

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