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, while also making technical revisions to update existing code language. Additionally, it introduces a new Section 41-4-98, which mandates that each public institution of higher education in Alabama submit an annual report detailing state and federal fund receipts and expenditures. This report must include plans for operating the institution in the event of funding reductions, specifically if there is a decrease of 5% or more in state or federal receipts, or a reduction of 20% or more in the same.

The bill specifies that the annual reports from public institutions of higher education must be submitted to the Executive Budget Office by October 31 each year. The Executive Budget Office is then required to compile these reports and submit a summary to the Legislature by January 1. The bill also outlines the definitions of federal receipts, public institutions of higher education, and state receipts, while ensuring that the Alabama Community College System provides information for its supervised institutions. 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