HB389 Alabama 2022 Session

Updated May 16, 2022

Summary

Primary Sponsor: Louise Alexander
Democrat
Session: Regular Session 2022
Title: Municipal courts, traffic tickets, fines and penalties, municipalities limited in the amount of money a municipality may retain, transfer of excess to State Finance Department for further distribution
Summary: HB389 would cap how much a municipality can keep from traffic-ticket fines at 10% of its general operating budget and require any excess to be sent to state funds.
What This Bill Does
If passed, municipalities may only retain 10% of their general operating budget from traffic fines and penalties. Any amount above that cap would be transferred to the Department of Finance for equal distribution to the Crime Victims' Compensation Fund and the Fair Trial Tax Fund. The calculation uses the most recently completed year's budget, and the law would take effect on the first day of the third month after passage and governor approval.

Who It Affects
Municipalities in Alabama, whose traffic-ticket fine revenue would be limited to 10% of their general operating budget.
The Crime Victims' Compensation Fund and the Fair Trial Tax Fund, which would receive excess funds above the 10% cap in equal amounts from the Department of Finance.

Key Provisions
A municipality may only retain 10 percent of its total general operating budget collected from fines and penalties generated from traffic tickets.
Any amount above the 10 percent cap shall be transferred to the Department of Finance for allocation in equal amounts to the Crime Victims' Compensation Fund and the Fair Trial Tax Fund.
The total general operating budget used for calculating the cap is based on the most recently completed year's budget.
The act becomes effective on the first day of the third month following its passage and governor approval.

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