HB398 Alabama 2021 Session

Summary

Primary Sponsor

Howard Sanderford

Republican

Session

Regular Session 2021

Title

State General Fund, requirement for annual transfers from State Licensing Board for General Contractors, the Alabama Onsite Wastewater Board, the Alabama State Board of Respiratory Therapy, and the Alabama Board of Electrical Contractors removed, Secs. 34-8-25, 34-21A-6, 34-27B-6, 34-36-17 am'd.

Summary

HB398 would stop requiring certain state licensing boards to send their unspent funds to the State General Fund each year.

What This Bill Does

It removes the annual transfer requirement to the State General Fund for four boards: General Contractors, Onsite Wastewater, Respiratory Therapy, and Electrical Contractors. Funds would stay in the boards’ own dedicated state funds instead of being automatically transferred to the General Fund at year end, subject to existing budgeting and appropriation rules. The bill would also eliminate or modify existing rules that previously triggered transfers of unspent funds (such as emergency reserves or thresholds like $100,000) to the General Fund.

Who It Affects

• State Licensing Board for General Contractors: would retain funds in its own fund rather than sending them to the General Fund, with up to 33% of the prior year's budget allowed for emergencies.
• Alabama Onsite Wastewater Board: would retain funds in its own dedicated fund rather than transferring unspent amounts to the General Fund, subject to budget rules.
• Alabama State Board of Respiratory Therapy: would retain funds in its own dedicated fund rather than transferring unspent amounts to the General Fund, subject to budget rules.
• Alabama Board of Electrical Contractors: would retain funds in its own dedicated fund rather than transferring unspent amounts to the General Fund, with applicable budgeting and appropriation controls—and the specific provision that previously required transfers above certain thresholds (like $100,000) would be removed or changed.

Key Provisions

• Amends Sections 34-8-25, 34-21A-6, 34-27B-6, and 34-36-17 to remove the requirement that monies in these funds are annually transferred to the State General Fund.
• Keeps the boards’ funds as separate special funds in the State Treasury but removes mandatory year-end transfers to the General Fund.
• Retains, for the General Contractors Board, the ability to retain up to 33% of the prior year's budget for emergencies; other boards’ retention and distribution rules would be governed by general appropriation and budgeting processes.
• Overall effect: reduces General Fund revenue from these boards and increases the boards’ discretion over their own funds within existing budgetary controls.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

General Fund