The bill amends Section 41-4-97 of the Code of Alabama 1975 to exempt the Alabama Community College System from federal fund reporting requirements, effectively removing the language that previously mandated its inclusion. Additionally, it introduces a new Section 41-4-98, which requires each public institution of higher education in Alabama to submit an annual report detailing state and federal fund receipts and expenditures. This report must also include contingency plans for operating the institution in the event of funding reductions, specifically if state or federal receipts decrease by 5% or more, or 20% or more, respectively.

The bill also makes technical revisions to update existing code language and clarifies the definitions of terms such as "federal receipts" and "public institutions of higher education." The Executive Budget Office is tasked with compiling and summarizing the reports from public institutions and submitting them to the Legislature by January 1 each year. The House Ways and Means Education Committee and the Senate Finance and Taxation Education Committee will conduct hearings on these reports every even-numbered year as part of their budget considerations. The act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 41-4-97, 41-4-98
Engrossed: 41-4-97, 41-4-98