SB152 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Children's Health Insurance Program and Department of Human Resources, tax funds distributed

Summary

SB152 would fund Alabama's Children's Health Insurance Program by making CHIP a first charge on General Fund sales/use tax allocations and lay out how remaining tax proceeds are distributed.

What This Bill Does

It amends sales and use tax distribution rules to prioritize CHIP funding as a first charge on General Fund allocations. It specifies annual amounts to be distributed to the Department of Human Resources ($1,322,000) and to the 67 counties ($378,000), with additional provisions for state parks funding and related park-related receipts. After these distributions, the remaining tax proceeds are split between the General Fund and the Education Trust Fund (with 75%/25% for remote use tax and 47%/53% for the remaining balance), while CHIP funding remains the first charge. The act takes effect September 1, 2026.

Who It Affects

• Children eligible for and enrolled in the Children's Health Insurance Program (CHIP) who will receive dedicated funding.
• Department of Human Resources, which administers CHIP and receives a dedicated annual appropriation ($1,322,000).
• The General Fund and the Education Trust Fund, which will receive the remaining tax distributions after CHIP is funded as a first charge.
• The 67 Alabama counties, which receive a total of $378,000 to be distributed for health and extension services.
• The Department of Conservation and Natural Resources, which may receive funds for state parks capital outlay, repairs, and maintenance under the new distributions.

Key Provisions

• CHIP funding is established as a first charge against the amounts allocated to the General Fund from the sales/use tax proceeds, ensuring CHIP is funded before other allocations.
• Specific annual allocations are set: $1,322,000 to the Department of Human Resources and $378,000 to the 67 counties, with distributions to be used for local health services, extension services, and related purposes.
• Provisions create and/or modify funding streams for the Department of Conservation and Natural Resources to support state parks capital outlay, repairs, and maintenance, with amounts tied to changes in discount caps and CPI-based adjustments over time.
• After these distributions, remaining tax proceeds are allocated between the General Fund and the Education Trust Fund (75% to General Fund and 25% to Education Trust Fund for remote use tax; 47% to Education Trust Fund and 53% to General Fund for other receipts), with an amount sufficient to fund CHIP treated as a first charge.
• The act becomes effective September 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 2, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue