HB217 Alabama 2024 Session

Summary

Primary Sponsor

Pebblin W. WarrenRepresentative

Democrat

Session

Regular Session 2024

Title

FY25 Children's First Trust Fund

Summary

The bill would fund Alabama's Children First Trust Fund from tobacco settlements, creating a new set of annual appropriations and governance rules for FY2025.

What This Bill Does

It would appropriate 39,531,128 from the Children First Trust Fund for the fiscal year ending September 30, 2025 to various state agencies and programs listed in Section 41-15B-2.2. It would deposit tobacco settlement revenues into the fund, require quarterly allocations to agencies, notify agencies of expected amounts, and condition allocations on the receipt of tobacco funds, while transferring the portion of receipts currently used by the State Board of Education to the State General Fund in FY2025. It would also appropriate 49,596,888 from other tobacco settlement funds for FY2025 to several programs, and allow additional tobacco revenue to be appropriated or allocated if approved by the Director of Finance, the relevant committee chairs, and the Governor.

Who It Affects

• State agencies and programs that would receive funded amounts from the Children First Trust Fund in FY2025 (e.g., Alcoholic Beverage Control Board; Department of Human Resources; Juvenile Probation Services Fund; Alabama Medicaid Agency; Department of Public Health; Department of Mental Health; Department of Youth Services; State Multiple Needs Children's Fund; among others) with quarterly, planned allocations.
• State fiscal governance and oversight entities (Department of Finance, Department of Early Childhood Education, Governor, House Ways and Means General Fund Committee, Senate Finance and Taxation-General Fund Committee) and legislators who must be notified or involved in approval and oversight of the funding and plans.

Key Provisions

• Section 1(a): Appropriation of 39,531,128 from the Children First Trust Fund for FY ending 9/30/2025 to the designated agencies per the plan in Section 41-15B-2.2.
• Section 1(b)(1)-(4): Deposits tobacco settlement revenues into the Children First Trust Fund; require written notice to each agency of anticipated allocations; allocate quarterly while ensuring funds are available; allocations conditioned on receipt of tobacco revenues; transfer the portion currently allocated to the State Board of Education to the State General Fund in FY2025; and remaining funds stay in the fund if not yet spent.
• Section 3: Appropriation of 49,596,888 from other tobacco settlement funds for FY ending 9/30/2025 to Early Childhood Education, 21st Century Debt Service, Senior Services Trust Fund, Alabama Medicaid Agency, and Senior Services Medicaid Waiver.
• Section 4: Any additional tobacco revenues available for FY2025 may be appropriated or allocated upon recommendation by the Director of Finance and the two committee chairs, with Governor’s approval.
• Section 5: Funds from the Children First Trust Fund may be allotted 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; notify legislators 10 days before funds reach the recipient agency; the plan format and reporting requirements are set by the Secretary.
• Section 6: The Secretary must report approved plans to the Joint Interim Legislative Oversight Committee and the Alabama Children's Policy Council and may approve adjusted plans upon request; funds should be directed to the most immediate needs of children.
• Section 8: The act becomes effective immediately upon passage and approval by the Governor.

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

Subjects

Appropriations