HB127 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Pebblin W. WarrenRepresentative
Democrat
Session: Regular Session 2023
Title: To make an appropriation of $39,097,848 from the Children First Trust Fund for the fiscal year ending September 30, 2024, to the entities and for the purposes designated in Section 41-15B-2.2, Code of Alabama 1975; to provide for the deposit of tobacco settlement revenues into the Children First Trust Fund; to require written notification of anticipated agency allocations by the State Director of Finance; to require quarterly allocations; to condition allocations on receipt of tobacco revenues; to provide for the transfer to the State General Fund during fiscal year 2024 that portion of Children First Trust Fund receipts currently allocated for the State Board of Education; to make an appropriation of $50,511,261 from other tobacco settlement funds for the fiscal year ending September 30, 2024; and to make a conditional appropriation and allocation of additional tobacco revenues upon the recommendation of the Director of Finance, the Chairman of the House Ways and Means General Fund Committee and the Chairman of the Senate Finance and Taxation-General Fund Committee, and the approval of the Governor.
Summary: HB127 reallocates and administers tobacco settlement funds to the Children First Trust Fund for FY2024, with new rules for deposits, allocations, and oversight, and adds additional tobacco funds to specific programs.
What This Bill Does
It appropriates 39,097,848 from the Children First Trust Fund for FY2024 to designated agencies; it deposits tobacco settlement revenues into the CF Fund and requires written notices and quarterly allocations that depend on tobacco revenues; it transfers the portion of CF Fund receipts currently allocated to the State Board of Education to the State General Fund in FY2024; it appropriates 50,511,261 from other tobacco settlement funds for FY2024 to specific programs; and it creates conditions for any extra tobacco revenues to be allocated only with recommendations from finance and committee leaders and Governor. It also requires investment plans with quality assurance measures, supervision by the Department of Early Childhood Education, and notification to legislators before funds reach recipients, plus oversight reporting and potential adjusted plans if needed.

Who It Affects
State agencies receiving the Children First Trust Fund appropriations for FY2024 (including Alcoholic Beverage Control Board, Children's Trust Fund, Department of Forensic Sciences, Department of Human Resources, Juvenile Probation Services Fund, Alabama Medicaid Agency, Department of Mental Health, State Multiple Needs Children's Fund, Department of Public Health, Department of Rehabilitation Services, and Department of Youth Services) and their program plans which must follow the new investment plan and quarterly allocation requirements.
State fiscal and oversight entities (State Director of Finance, Department of Early Childhood Education, Executive Budget Office, Joint Interim Legislative Oversight Committee, Alabama Children's Policy Council, and Governor) with responsibilities for notifying agencies, approving plans, coordinating allocations, and overseeing compliance and reporting; plus the transfer of SBOE funds to the General Fund in FY2024.

Key Provisions
There is an appropriation of 39,097,848 from the Children First Trust Fund for FY2024 to the listed agencies and for the purposes designated in Section 41-15B-2.2, Code of Alabama 1975, according to an approved per-agency investment plan.
All tobacco revenues designated for the Children First Trust Fund shall be deposited into the fund within 30 days of receipt, and the Director of Finance must notify each agency of anticipated allocations, with quarterly allocations tied to tobacco revenue availability and funds shall be expended only as designated by 41-15B-2.2.
During FY2024, the portion of Children First Trust Fund receipts currently allocated for the State Board of Education shall be transferred to the State General Fund.
An appropriation of 50,511,261 from other tobacco settlement funds is made for FY2024 to specific entities: Department of Early Childhood Education (500,000), 21st Century Debt Service (16,000,000), Senior Services Trust Fund (1,536,309), Alabama Medicaid Agency (30,482,005), and Department of Senior Services - Medicaid Waiver (1,992,947).
Any additional tobacco revenues available for FY2024 may be appropriated only upon the Director of Finance’s recommendation, a recommendation from the specified committee chairs, and Governor approval, with a conditional appropriation.
The Executive Budget Office and Director of Finance shall allot CF Fund appropriations only after the Secretary of the Department of Early Childhood Education certifies an approved plan of investment for each agency; the plan must include at least four quality assurance items and be auditable, with reporting and measures of intent to avoid unproductive expenditures or duplication.
The Secretary of the Department of Early Childhood Education must notify legislators representing areas receiving grants ten days before funds reach the recipient agency and must provide a standard of measurement for fund outcomes.
The Secretary shall report each approved plan of investment to the Joint Interim Legislative Oversight Committee and the Alabama Children's Policy Council; adjustments to plans may be approved; funds are intended to meet immediate needs of children as conditions change.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: FY24 Children's First Trust Fund Appropriation Bill