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 insertion is the increase in the percentage allocated to the Department of Human Resources for the statewide food stamp program, raising it from five percent to seven and one-half percent of the value of food stamp benefits issued statewide beyond what recipients pay. This change aims to bolster funding for the administration of the food stamp program, ensuring compliance with federal and state regulations. The bill also details the distribution of remaining tax collections, allocating $378,000 to the 67 counties for health services and agricultural extension services, and $1,322,000 to the Department of Human Resources for general welfare purposes. Furthermore, it 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.

Additionally, the bill modifies tax distribution laws concerning the Education Trust Fund and the General Fund. It specifies that after covering administrative expenses and replacing amounts lost due to homestead exemptions, remaining tax proceeds will primarily go to the Education Trust Fund, except for taxes on consumable vapor products, which 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 any remaining amounts divided 47% to the Education Trust Fund and 53% to the General Fund. Notably, the bill deletes the requirement for an annual distribution to fund 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