HB420 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2019
Title: Taxation, require Dept. of Revenue to enter into agreements with financial institutions to develop a financial institution data match program, Sec. 40-29-23.1 added.
Summary: HB 420 lets Alabama's Department of Revenue partner with financial institutions to create a Financial Institution Data Match program to help collect delinquent state taxes.
What This Bill Does
It authorizes the Department to enter voluntary agreements with financial institutions to develop and operate an automated data-match program that compares delinquent taxpayers' records with account-holder records. The program would share identifying information (name, address, SSN, FEIN, and other IDs) for delinquent taxpayers who have accounts, on a calendar quarter basis. Financial institutions that choose not to participate face no penalties, the Department may pay reasonable matching fees, and all information is kept confidential; the first data exchange cannot occur before January 1, 2020, and the Department will adopt implementing rules.

Who It Affects
Delinquent taxpayers with unpaid final assessments who maintain accounts at financial institutions in Alabama (their information may be matched to their accounts).
Financial institutions doing business in Alabama (and their designated data processing agents) (they may participate in the FIDM program, share data, be paid reasonable fees, and are protected by confidentiality and good-faith liability limits).
Account holders/depositors at participating institutions (they may be informed that the Department can request certain identifying information under the FIDM program; specific data shared are confidential).
Alabama Department of Revenue (it will administer, fund, and regulate the program and adopt rules).

Key Provisions
Adds 40-29-23.1 authorizing the Department of Revenue to enter into agreements with financial institutions to develop and operate an FIDM program.
Defines terms including account, account holder, delinquent taxpayer, designated data processing agent, financial institution, and other related terms.
Requires the Department and participating institutions to exchange specified identifying information (name, address, SSN, FEIN, other IDs) for delinquent taxpayers who hold accounts, on a quarterly basis.
No penalties for financial institutions that choose not to participate; the Department may pay a reasonable fee to participating institutions for data matching.
Maintains confidentiality of all information and restricts its use to proper administration; limits on disclosure to account holders; first data exchange no earlier than 1/1/2020; Department to adopt implementing rules.
Garnishment procedures and due process protections are not altered by this act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation