SB16 By Senator Sanford RFD Finance and Taxation Education Rd 1 02-FEB-16

SYNOPSIS: This bill provides for the establishment of the Alabama Shared Revenue Fund and provides for the distribution of the proceeds of the shared revenue sources of the Education Trust Fund and the State General Fund initially into this fund to be allocated to the Education Trust Fund and the State General Fund based upon the percentages established in this bill.

A BILL TO BE ENTITLED AN ACT

To establish the Alabama Shared Revenue Fund as a separate fund within the State Treasury, the balance of which shall be distributed to the Education Trust Fund and the State General Fund.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. For the purposes of this act, the following words shall have the following meanings:

(1) EDUCATION TRUST FUND. An account created in the State Treasury by Act 1927-163 and referenced in Section 16-13-16 of the Code of Alabama 1975, into which are deposited certain revenues paid to the State of Alabama for appropriation for educational purposes.

(2) FISCAL YEAR. The fiscal year of the State of Alabama that begins on October 1 and ends on September 30.

(3) SHARED REVENUE. Any source of revenue to the Education Trust Fund or the State General Fund of any kind or type that has been enacted, established, or provided for in fiscal years prior to the current fiscal year and any new revenue source for the current and/or future fiscal year. This definition does not include transfers to the Education Trust Fund or the State General Fund from agencies provided for in any appropriations act.

(4) STATE GENERAL FUND. An account in the State Treasury into which are deposited certain revenues paid to the State of Alabama for appropriation for any lawful purpose including but not limited to state government operating purposes.

Section 2. (a) There is hereby established in the State Treasury a separate fund known as the Alabama Shared Revenue Fund, into which shall be initially deposited all shared revenues dedicated by statute or otherwise for the Education Trust Fund and the State General Fund. This provision shall in no way apply to any direct distribution of revenues or receipts to any state agency or instrumentalities thereof or funds which are otherwise earmarked for specific purposes and are not funds which constitute a receipt to the State General Fund or Education Trust Fund. The Alabama Shared Revenue Fund shall be separate from the Education Trust Fund and the State General Fund.

(b) Notwithstanding any other provision of law to the contrary, the amounts standing in the Alabama Shared Revenue Fund on the last day of each month shall be distributed to the Education Trust Fund and the State General Fund based on the following percentages:

(i) Education Trust Fund -- seventy-eight percent (78%)

(ii) State General Fund -- twenty-two percent (22%)

(c) The Department of Revenue shall review and certify that the monthly distribution to the Education Trust Fund is sufficient to ensure that the Education Trust Fund receives a total amount of revenue which is at least equal to the amount of income tax receipts that would have been deposited into the Education Trust Fund prior to the enactment of this bill.

(d) The Executive Budget Office shall review and certify the monthly distributions to the Education Trust Fund and the State General Fund are sufficient to ensure that the Education Trust Fund and the State General Fund receive a total amount of revenue at least equal to the constitutionally earmarked revenues or receipts that would have been deposited into the Funds prior to enactment of this bill.

Section 3. The provisions of this bill shall not affect the Education Trust Fund Rolling Reserve Cap for fiscal year 2017 under the Rolling Reserve Act. For the purposes of determining the fiscal year appropriation cap under that act in subsequent fiscal years, the amounts, excluding any non-recurring revenue as defined in Section 29-9-2, Code of Alabama, 1975, that would have been deposited into the Education Trust Fund prior to the enactment of this bill, distributed to the Education Trust Fund pursuant to this act shall be interpreted to be the recurring revenues of the Education Trust Fund.

Section 4. Notwithstanding any prior provision of law to the contrary, the provisions of this bill shall only affect distributions of revenues or receipts directly to the State General Fund and the Education Trust Fund and in no way shall affect any direct distribution of similar revenues or receipts to any state agency or instrumentalities thereof or funds which are otherwise earmarked for specific purposes and are not funds which constitute a receipt to the State General Fund or Education Trust Fund.

Section 5. This act shall become effective October 1, 2016, following its passage and approval by the Governor, or its otherwise becoming law.

Appropriations

Shared Revenue Fund

State Funds

Education Trust Fund

General Fund