Alabama House Bill HB276

Alabama 2022 Regular Session

• Introduced: 2/8/22
• Refer: 2/8/22

Caption

Municipalities, audits, calculation of revenue from traffic violations required, threshold established, surplus to be remitted for education

Impact

The passage of HB276 is expected to have a significant impact on how municipalities handle their traffic violation revenues. By imposing a threshold of 30%, the bill aims to discourage municipalities from relying heavily on these fines as a source of income, thereby promoting more responsible financial practices. Additionally, the bill is anticipated to redirect funds to the education sector, which could support local schools and educational programs, diminishing the potential financial incentive for municipalities to over-enforce traffic laws primarily for revenue generation.

Summary

House Bill 276 seeks to address the financial practices of municipalities concerning the revenue derived from traffic ordinance violations. Currently, there are no limits on how much revenue municipalities may collect from these violations. This bill introduces a requirement that municipalities must include in their financial audits a calculation of the percentage of annual operating revenue coming from fines and fees related to municipal traffic violations or non-moving traffic violations. Should the revenue from these sources exceed 30% of their operating revenue, the municipalities are mandated to remit the excess to the state Department of Finance for distribution to local educational boards within the county.

Contention

There may be points of contention surrounding HB276, particularly among municipalities that depend on this form of revenue. Critics could argue that the bill could limit financial flexibility and penalize municipalities for their traffic management strategies. Supporters, on the other hand, may advocate that the bill is crucial for ensuring that municipalities do not exploit traffic fines as a major revenue source, thereby protecting citizens from excessive fines and contributing positively to public education funding.