The bill amends Sections 40-23-35 and 40-23-85 of the Code of Alabama 1975 to enhance the distribution of sales and use tax funds. A key change includes increasing the percentage allocated to the Department of Human Resources for the statewide food stamp program from five percent to seven and one-half percent of the value of food stamp benefits issued statewide. This adjustment aims to provide additional funding for the administration of the food stamp program, ensuring compliance with federal regulations and state mandates. Additionally, the bill specifies that $378,000 will be allocated to the 67 counties for health services and agricultural extension services, and the Department of Human Resources will receive $1,322,000 for general welfare purposes. It also establishes a minimum annual allocation of $7 million to the Department of Conservation and Natural Resources for state parks maintenance, with future adjustments based on the Consumer Price Index.

Furthermore, the bill modifies the distribution of tax proceeds collected under Section 40-23-61, directing remaining funds to the Education Trust Fund after covering administrative expenses and replacing funds lost due to homestead exemptions. Notably, taxes collected on consumable vapor products will be allocated to the State General Fund starting January 1, 2016. The bill also changes the distribution of remote use tax amounts, allocating 75% to the General Fund and 25% to the Education Trust Fund, with remaining amounts divided as 47% to the Education Trust Fund and 53% to the General Fund. Importantly, the bill removes the previous requirement for annual funding for the Children's Health Insurance Program (CHIP) as a first charge against General Fund allocations, indicating a shift in funding priorities. The bill is set to take effect on September 1, 2026.

Statutes affected:
Introduced: 40-23-35, 40-23-85, 40-23-35
Enrolled: 40-23-35, 40-23-85, 40-23-35