Alabama 2022 Regular Session

Alabama Senate Bill SB331 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 SB331
2		-	2 219306-3
	2	+	2 219306-1
3	3		3 By Senator Orr
4	4		4 RFD: Finance and Taxation Education
5	5		5 First Read: 29-MAR-22
6	6
7		-	Page 0 SB331
8		-	1 SB331
9		-	2
10		-	3
11		-	4 ENROLLED, An Act,
12		-	5 To amend Sections 29-9-2, 29-9-3, 29-9-4, as last
13		-	6 amended by Act 2022-139 of the 2022 Regular Session, and
14		-	7 29-9-6, Code of Alabama 1975, relating to the Education Trust
15		-	8 Fund Rolling Reserve Act, to clarify current practices for the
16		-	9 calculation of the annual appropriation cap for the
17		-	10 disposition of revenues in excess of the cap, and for the
18		-	11 appropriation of funds in the Education Trust Fund Advancement
19		-	12 and Technology Fund; to delete certain obsolete provisions;
20		-	13 and to modify certain transfer dates to improve cash flow for
21		-	14 the Education Trust Fund.
22		-	15 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
23		-	16 Section 1. Sections 29-9-2, 29-9-3, 29-9-4, as last
24		-	17 amended by Act 2022-139 of the 2022 Regular Session, and
25		-	18 29-9-6, Code of Alabama 1975, are amended to read as follows:
26		-	19 "§29-9-2.
27		-	20 "For the purposes of this chapter, the following
28		-	21 terms shall have the following meanings:
29		-	22 "(1) ALABAMA TRUST FUND. The Alabama Trust Fund
30		-	23 created by Amendment No. 450 to the Constitution of Alabama of
31		-	24 1901.
32		-	Page 1 SB331
33		-	1 "(2) EDUCATION TRUST FUND. An account in the State
34		-	2 Treasury into which are deposited certain revenues paid to the
35		-	3 State of Alabama that are earmarked or set aside for
36		-	4 appropriation for public educational purposes.
37		-	5 "(3) EDUCATION TRUST FUND RAINY DAY ACCOUNT. The
38		-	6 special account created within the Alabama Trust Fund by
39		-	7 Amendment No. 803 to the Constitution of Alabama of 1901.
40		-	8 "(4) FISCAL YEAR. The fiscal year of the State of
41		-	9 Alabama that begins on October 1 and ends on September 30.
42		-	10 "(5) FISCAL YEAR APPROPRIATION CAP. The maximum
43		-	11 amount of appropriations that may be made from the Education
44		-	12 Trust Fund for any fiscal year pursuant to this chapter.
45		-	13 "(6) NEW RECURRING REVENUE. Revenue of any kind or
46		-	14 type constituting a new annual source of money that has been
47		-	15 enacted, established, or provided for prior to the first day
48		-	16 of the fiscal year of which it is to first be included in the
49		-	17 calculation of the Fiscal Year Appropriation Cap for the
50		-	18 Education Trust Fund.
51		-	19 "(7) NONRECURRING REVENUE. Revenue of any kind or
52		-	20 type that is deposited into or causes one-time abnormal
53		-	21 revenue impacts on the Education Trust Fund and that is not
54		-	22 recurring revenue, including one-time enhancements to revenues
55		-	23 resulting from one-time assistance to individuals or
56		-	24 businesses provided by the federal government. Any balance
57		-	25 remaining in the Education Trust Fund at the end of any fiscal
58		-	Page 2 SB331
59		-	1 year, and transfers from the Education Trust Fund Proration
60		-	2 Prevention Account, the Education Trust Fund Rainy Day
61		-	3 Account, and the Education Trust Fund Budget Stabilization
62		-	4 Fund shall be nonrecurring revenue.
63		-	5 "(8) RECURRING REVENUE. Any permanent and continuing
64		-	6 source of revenue of any kind or type that has been enacted,
65		-	7 established, or provided for in fiscal years prior to the
66		-	8 fiscal year for which it is to be included in the calculation
67		-	9 of the fiscal year appropriation cap for the Education Trust
68		-	10 Fund. Recurring revenue shall not include any balance
69		-	11 remaining in the Education Trust Fund at the end of any fiscal
70		-	12 year. Once a new recurring revenue produces a source of
71		-	13 revenue for one complete fiscal year, it becomes a recurring
72		-	14 revenue.
73		-	15 "§29-9-3.
74		-	16 "(a) Notwithstanding any other provision of law to
75		-	17 the contrary, beginning with appropriations made for the
76		-	18 fiscal year ending September 30, 2013, appropriations from the
77		-	19 Education Trust Fund shall not exceed the fiscal year
78		-	20 appropriation cap.
79		-	21 "(b) The fiscal year appropriation cap for the
80		-	22 Education Trust Fund shall be equal to the sum of all of the
81		-	23 following:
82		-	24 "(1) The total of recurring revenues deposited into
83		-	25 the Education Trust Fund in the last completed fiscal year
84		-	Page 3 SB331
85		-	1 preceding the date on which the fiscal year appropriation cap
86		-	2 is calculated.
87		-	3 "(2) An amount equal to the amount in subdivision
88		-	4 (1) multiplied by the average annual percent of change in the
89		-	5 recurring revenues deposited into the Education Trust Fund for
90		-	6 the 14 highest of the 15 completed fiscal years preceding the
91		-	7 date on which the fiscal year appropriation cap is calculated.
92		-	8 "(3) If new recurring revenue measures are enacted
93		-	9 that will be deposited into the Education Trust Fund, or if
94		-	10 existing revenue sources are amended to increase the amount of
95		-	11 money deposited into the Education Trust Fund, for the first
96		-	12 time during the year for which the fiscal year appropriation
97		-	13 cap is being calculated, then 95 percent of the amount
98		-	14 projected in the enacted fiscal note accompanying the
99		-	15 legislative act creating the new recurring revenue shall be
100		-	16 added or subtracted as a part of the fiscal year appropriation
101		-	17 cap. If a recurring revenue source is removed from to the
102		-	18 Education Trust Fund is removed or reduced during the year for
103		-	19 which the fiscal year appropriation cap is being calculated,
104		-	20 the negative impact, based on the enacted fiscal note, of the
105		-	21 removal or reduction of the recurring revenue shall be
106		-	22 included in the calculation of the fiscal year appropriation
107		-	23 cap. Any new recurring revenue measures and any changes in the
108		-	24 distribution of Education Trust Fund recurring revenues
109		-	25 enacted during the First or Second Special Session of 2015
110		-	Page 4 SB331
111		-	1 shall not require any addition or reduction in the fiscal year
112		-	2 appropriation cap for the fiscal year ending September 30,
113		-	3 2016.
114		-	4 "(4) Nonrecurring revenue shall be added or
115		-	5 subtracted as a part of the fiscal year appropriation cap for
116		-	6 the fiscal year in which the nonrecurring revenue is deposited
117		-	7 into the Education Trust Fund.
118		-	8 "(5) The amount required to be appropriated from the
119		-	9 Education Trust Fund to the Prepaid Affordable College Tuition
120		-	10 Trust Fund pursuant to Section 16-33C-16, Code of Alabama
121		-	11 1975.
122		-	12 "(c) The Director of Finance and the Director of the
123		-	13 Fiscal Office Legislative Fiscal Officer shall certify their
124		-	14 computation of the fiscal year appropriation cap at the same
125		-	15 time as the certification required by Amendment No. 803 to the
126		-	16 Constitution of Alabama of 1901. If the computation results in
127		-	17 a fiscal year appropriation cap that is less than the total
128		-	18 appropriations from the Education Trust Fund for the fiscal
129		-	19 year immediately preceding the fiscal year for which the
130		-	20 fiscal year appropriation cap is being calculated, the
131		-	21 Legislature may appropriate from the Education Trust Fund
132		-	22 Budget Stabilization Fund created in this chapter an amount
133		-	23 equal to the difference between the preceding fiscal year's
134		-	24 total appropriations from the Education Trust Fund and the
135		-	25 fiscal year appropriation cap, provided that any such amount
136		-	Page 5 SB331
137		-	1 shall be in the determination of the Legislature not to
138		-	2 compromise the fiscal integrity of the fund to offset any
139		-	3 future proration of the Education Trust Fund.
140		-	4 "(d) Amendment No. 803 to the Constitution of 1901,
141		-	5 requires an estimate of available revenue for the Education
142		-	6 Trust Fund which is to be certified by the Finance Director
143		-	7 and the Legislative Fiscal Officer prior to the third
144		-	8 legislative day of each regular session. If, however, the
145		-	9 average of the estimated available revenue is less than the
146		-	10 fiscal year appropriation cap calculated in subsection (b),
147		-	11 the Legislature shall appropriate no more than the lesser
148		-	12 amount of the average of the estimated available revenue or
149		-	13 the fiscal year appropriation cap as required to be determined
150		-	14 by this section.
151		-	15 "§29-9-4.
152		-	16 "There is hereby created in the State Treasury an
153		-	17 Education Trust Fund Budget Stabilization Fund and an
154		-	18 Education Trust Fund Advancement and Technology Fund. Any
155		-	19 monetary interest which accrues in the Education Trust Fund
156		-	20 Budget Stabilization Fund shall be retained in the fund from
157		-	21 year to year and shall be subject only to the provisions of
158		-	22 this chapter. If total revenues deposited into the Education
159		-	23 Trust Fund during the immediately preceding fiscal year exceed
160		-	24 the fiscal year appropriation cap for the immediately
161		-	25 preceding fiscal year, and total Education Trust Fund
162		-	Page 6 SB331
163		-	1 appropriations for the immediately preceding fiscal year are
164		-	2 less than the fiscal year appropriation cap for the
165		-	3 immediately preceding fiscal year, the excess revenues shall
166		-	4 remain in the Education Trust Fund as nonrecurring revenue. On
167		-	5 or before November 15 May 31 of each fiscal year, if the total
168		-	6 revenues deposited into the Education Trust Fund during the
169		-	7 immediately preceding fiscal year exceed the fiscal year
170		-	8 appropriation cap for the immediately preceding fiscal year,
171		-	9 and Education Trust Fund appropriations for the immediately
172		-	10 preceding fiscal year were equal to the fiscal year
173		-	11 appropriation cap, the excess revenues shall be transferred to
174		-	12 the Education Trust Fund Rainy Day Account until the account
175		-	13 has been repaid in full. If the account has been repaid in
176		-	14 full, any excess revenues remaining shall be transferred to
177		-	15 the Education Trust Fund Budget Stabilization Fund and the
178		-	16 Education Trust Fund Advancement and Technology Fund created
179		-	17 in this chapter. The transfers to the Education Trust Fund
180		-	18 Budget Stabilization Fund and the Education Trust Fund
181		-	19 Advancement and Technology Fund shall be made annually as
182		-	20 follows:
183		-	21 "(a)(1) Any excess revenues remaining for the any
184		-	22 fiscal year ending September 30, 2015, up to two percent of
185		-	23 the previous year's Education Trust Fund appropriations, shall
186		-	24 be transferred to the Education Trust Fund Budget
187		-	25 Stabilization Fund. Thereafter, in an amount up to one percent
188		-	Page 7 SB331
189		-	1 of the previous year's Education Trust Fund appropriations
190		-	2 shall be transferred to the Education Trust Fund Budget
191		-	3 Stabilization Fund annually until the fund reaches seven and
192		-	4 one-half percent of the previous year's appropriations from
193		-	5 the Education Trust Fund.
194		-	6 "(b)(2) Funds Revenues in excess of those
195		-	7 transferred in subsection subdivision (a) (1) shall be
196		-	8 transferred to the Education Trust Fund Advancement and
197		-	9 Technology Fund each year. Amounts Any amount of the available
198		-	10 balance in the Education Trust Fund Advancement and Technology
199		-	11 Fund shall may be appropriated available for appropriation
200		-	12 only by and through an independent supplemental appropriation
201		-	13 bill for the following nonrecurring expenses: repairs or
202		-	14 deferred maintenance of facilities for public education
203		-	15 purposes in the state, capital outlay, for classroom
204		-	16 instructional support as provided in Section 16-13-231(b)(2)c.
205		-	17 and Section 16-13-231.3, for insuring facilities, for
206		-	18 transportation as provided in Section 16-13-233, for school
207		-	19 security measures, and for the acquisition or purchase of
208		-	20 education technology and equipment, or both. These funds,
209		-	21 however, shall not be used as a pledge for the issuance or
210		-	22 payment of debt service. No funds shall be appropriated until
211		-	23 in years when the balance of the Education Trust Fund
212		-	24 Advancement and Technology Fund at the end of the previous
213		-	25 fiscal year equals or exceeds is less than ten million dollars
214		-	Page 8 SB331
215		-	1 ($10,000,000) $10 million. Amounts in the Education Trust Fund
216		-	2 Advancement and Technology Fund shall be budgeted and allotted
217		-	3 in accordance with Sections 41-4-80 through 41-4-96 and
218		-	4 Sections 41-19-1 through 41-19-12, but shall not be limited by
219		-	5 the fiscal year appropriation cap.
220		-	6 "(c)(3) The annual appropriation of these funds
221		-	7 shall be divided between the public schools and institutions
222		-	8 of higher education in the state in accordance with the
223		-	9 percentage split, based on the fiscal year in which an
224		-	10 appropriation is made, between these two sectors of education
225		-	11 as certified by the Legislative Services Agency, Fiscal
226		-	12 Division, Legislative Fiscal Officer at the end of the
227		-	13 preceding fiscal year. Public schools shall be interpreted to
228		-	14 include any school in operation for the current fiscal year,
229		-	15 the Alabama School of Math and Science, the Alabama School of
230		-	16 Fine Arts, the Alabama School of Cyber Technology and
231		-	17 Engineering, the portion of the Alabama Institute for Deaf and
232		-	18 Blind providing appropriate elementary/secondary instruction,
233		-	19 and may include the Department of Youth Services School
234		-	20 District.
235		-	21 "§29-9-6.
236		-	22 "During the first six months of a fiscal year, the
237		-	23 Director of Finance may temporarily transfer available funds
238		-	24 in the Budget Stabilization Fund into the Education Trust Fund
239		-	25 as necessary to alleviate cash flow problems in the Education
240		-	Page 9 SB331
241		-	1 Trust Fund. Any funds temporarily transferred shall be repaid
242		-	2 to the Budget Stabilization Fund from funds in the Education
243		-	3 Trust Fund within 90 days following the date the funds are
244		-	4 transferred by September 30 of the fiscal year in which the
245		-	5 transfer was made."
246		-	6 Section 2. This act shall become effective
247		-	7 immediately following its passage and approval by the
248		-	8 Governor, or its otherwise becoming law.
249		-	Page 10 SB331
250		-	1
	7	+	Page 0 1 219306-1:n:03/25/2022:KF/cmg LSA2022-174F
251	8		2
252	9		3
253	10		4
254		-	President and Presiding Officer of the Senate
255		-
256	11		5
257		-	6 Speaker of the House of Representatives
258		-	SB3317
259		-	8 Senate 31-MAR-22
260		-	9 I hereby certify that the within Act originated in and passed
261		-	10 the Senate.
262		-	11
263		-	12 Patrick Harris,
264		-	13 Secretary.
265		-	14
266		-	15
267		-	16
268		-	17 House of Representatives
269		-	18 Passed: 07-APR-22
270		-	19
271		-	20
272		-	21 By: Senator Orr
273		-	Page 11
	12	+	6
	13	+	7
	14	+	8 SYNOPSIS: This bill amends the Education Trust Fund
	15	+	9 Rolling Reserve Act of 2011 to clarify current
	16	+	10 practices for the determination of the annual
	17	+	11 appropriation cap, for the disposition of revenues
	18	+	12 received in excess of the cap, and for the
	19	+	13 appropriation of funds in the Education Trust Fund
	20	+	14 Advancement and Technology Fund.
	21	+	15 This bill also deletes certain obsolete
	22	+	16 provisions and modifies certain transfer dates to
	23	+	17 improve cash flow for the Education Trust Fund.
	24	+	18
	25	+	19 A BILL
	26	+	20 TO BE ENTITLED
	27	+	21 AN ACT
	28	+	22
	29	+	23 To amend Sections 29-9-2, 29-9-3, 29-9-4, as last
	30	+	24 amended by Act 2022-139 of the 2022 Regular Session, and
	31	+	25 29-9-6, Code of Alabama 1975, relating to the Education Trust
	32	+	26 Fund Rolling Reserve Act, to clarify current practices for the
	33	+	27 calculation of the annual appropriation cap for the
	34	+	Page 1 1 disposition of revenues in excess of the cap, and for the
	35	+	2 appropriation of funds in the Education Trust Fund Advancement
	36	+	3 and Technology Fund; to delete certain obsolete provisions;
	37	+	4 and to modify certain transfer dates to improve cash flow for
	38	+	5 the Education Trust Fund.
	39	+	6 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	40	+	7 Section 1. Sections 29-9-2, 29-9-3, 29-9-4, as last
	41	+	8 amended by Act 2022-139 of the 2022 Regular Session, and
	42	+	9 29-9-6, Code of Alabama 1975, are amended to read as follows:
	43	+	10 "§29-9-2.
	44	+	11 "For the purposes of this chapter, the following
	45	+	12 terms shall have the following meanings:
	46	+	13 "(1) ALABAMA TRUST FUND. The Alabama Trust Fund
	47	+	14 created by Amendment No. 450 to the Constitution of Alabama of
	48	+	15 1901.
	49	+	16 "(2) EDUCATION TRUST FUND. An account in the State
	50	+	17 Treasury into which are deposited certain revenues paid to the
	51	+	18 State of Alabama that are earmarked or set aside for
	52	+	19 appropriation for public educational purposes.
	53	+	20 "(3) EDUCATION TRUST FUND RAINY DAY ACCOUNT. The
	54	+	21 special account created within the Alabama Trust Fund by
	55	+	22 Amendment No. 803 to the Constitution of Alabama of 1901.
	56	+	23 "(4) FISCAL YEAR. The fiscal year of the State of
	57	+	24 Alabama that begins on October 1 and ends on September 30.
	58	+	25 "(5) FISCAL YEAR APPROPRIATION CAP. The maximum
	59	+	26 amount of appropriations that may be made from the Education
	60	+	27 Trust Fund for any fiscal year pursuant to this chapter.
	61	+	Page 2 1 "(6) NEW RECURRING REVENUE. Revenue of any kind or
	62	+	2 type constituting a new annual source of money that has been
	63	+	3 enacted, established, or provided for prior to the first day
	64	+	4 of the fiscal year of which it is to first be included in the
	65	+	5 calculation of the Fiscal Year Appropriation Cap for the
	66	+	6 Education Trust Fund.
	67	+	7 "(7) NONRECURRING REVENUE. Revenue of any kind or
	68	+	8 type that is deposited into or causes one-time abnormal
	69	+	9 revenue impacts on the Education Trust Fund and that is not
	70	+	10 recurring revenue, including one-time enhancements to revenues
	71	+	11 resulting from one-time assistance to individuals or
	72	+	12 businesses provided by the federal government. Any balance
	73	+	13 remaining in the Education Trust Fund at the end of any fiscal
	74	+	14 year, and transfers from the Education Trust Fund Proration
	75	+	15 Prevention Account, the Education Trust Fund Rainy Day
	76	+	16 Account, and the Education Trust Fund Budget Stabilization
	77	+	17 Fund shall be nonrecurring revenue.
	78	+	18 "(8) RECURRING REVENUE. Any permanent and continuing
	79	+	19 source of revenue of any kind or type that has been enacted,
	80	+	20 established, or provided for in fiscal years prior to the
	81	+	21 fiscal year for which it is to be included in the calculation
	82	+	22 of the fiscal year appropriation cap for the Education Trust
	83	+	23 Fund. Recurring revenue shall not include any balance
	84	+	24 remaining in the Education Trust Fund at the end of any fiscal
	85	+	25 year. Once a new recurring revenue produces a source of
	86	+	26 revenue for one complete fiscal year, it becomes a recurring
	87	+	27 revenue.
	88	+	Page 3 1 "§29-9-3.
	89	+	2 "(a) Notwithstanding any other provision of law to
	90	+	3 the contrary, beginning with appropriations made for the
	91	+	4 fiscal year ending September 30, 2013, appropriations from the
	92	+	5 Education Trust Fund shall not exceed the fiscal year
	93	+	6 appropriation cap.
	94	+	7 "(b) The fiscal year appropriation cap for the
	95	+	8 Education Trust Fund shall be equal to the sum of all of the
	96	+	9 following:
	97	+	10 "(1) The total of recurring revenues deposited into
	98	+	11 the Education Trust Fund in the last completed fiscal year
	99	+	12 preceding the date on which the fiscal year appropriation cap
	100	+	13 is calculated.
	101	+	14 "(2) An amount equal to the amount in subdivision
	102	+	15 (1) multiplied by the average annual percent of change in the
	103	+	16 recurring revenues deposited into the Education Trust Fund for
	104	+	17 the 14 highest of the 15 completed fiscal years preceding the
	105	+	18 date on which the fiscal year appropriation cap is calculated.
	106	+	19 "(3) If new recurring revenue measures are enacted
	107	+	20 that will be deposited into the Education Trust Fund, or if
	108	+	21 existing revenue sources are amended to increase the amount of
	109	+	22 money deposited into the Education Trust Fund, for the first
	110	+	23 time during the year for which the fiscal year appropriation
	111	+	24 cap is being calculated, then 95 percent of the amount
	112	+	25 projected in the enacted fiscal note accompanying the
	113	+	26 legislative act creating the new recurring revenue shall be
	114	+	27 added or subtracted as a part of the fiscal year appropriation
	115	+	Page 4 1 cap. If a recurring revenue source is removed from to the
	116	+	2 Education Trust Fund is removed or reduced during the year for
	117	+	3 which the fiscal year appropriation cap is being calculated,
	118	+	4 the negative impact, based on the enacted fiscal note, of the
	119	+	5 removal or reduction of the recurring revenue shall be
	120	+	6 included in the calculation of the fiscal year appropriation
	121	+	7 cap. Any new recurring revenue measures and any changes in the
	122	+	8 distribution of Education Trust Fund recurring revenues
	123	+	9 enacted during the First or Second Special Session of 2015
	124	+	10 shall not require any addition or reduction in the fiscal year
	125	+	11 appropriation cap for the fiscal year ending September 30,
	126	+	12 2016.
	127	+	13 "(4) Nonrecurring revenue shall be added or
	128	+	14 subtracted as a part of the fiscal year appropriation cap for
	129	+	15 the fiscal year in which the nonrecurring revenue is deposited
	130	+	16 into the Education Trust Fund.
	131	+	17 "(5) The amount required to be appropriated from the
	132	+	18 Education Trust Fund to the Prepaid Affordable College Tuition
	133	+	19 Trust Fund pursuant to Section 16-33C-16, Code of Alabama
	134	+	20 1975.
	135	+	21 "(c) The Director of Finance and the Director of the
	136	+	22 Fiscal Office Legislative Fiscal Officer shall certify their
	137	+	23 computation of the fiscal year appropriation cap at the same
	138	+	24 time as the certification required by Amendment No. 803 to the
	139	+	25 Constitution of Alabama of 1901. If the computation results in
	140	+	26 a fiscal year appropriation cap that is less than the total
	141	+	27 appropriations from the Education Trust Fund for the fiscal
	142	+	Page 5 1 year immediately preceding the fiscal year for which the
	143	+	2 fiscal year appropriation cap is being calculated, the
	144	+	3 Legislature may appropriate from the Education Trust Fund
	145	+	4 Budget Stabilization Fund created in this chapter an amount
	146	+	5 equal to the difference between the preceding fiscal year's
	147	+	6 total appropriations from the Education Trust Fund and the
	148	+	7 fiscal year appropriation cap, provided that any such amount
	149	+	8 shall be in the determination of the Legislature not to
	150	+	9 compromise the fiscal integrity of the fund to offset any
	151	+	10 future proration of the Education Trust Fund.
	152	+	11 "(d) Amendment No. 803 to the Constitution of 1901,
	153	+	12 requires an estimate of available revenue for the Education
	154	+	13 Trust Fund which is to be certified by the Finance Director
	155	+	14 and the Legislative Fiscal Officer prior to the third
	156	+	15 legislative day of each regular session. If, however, the
	157	+	16 average of the estimated available revenue is less than the
	158	+	17 fiscal year appropriation cap calculated in subsection (b),
	159	+	18 the Legislature shall appropriate no more than the lesser
	160	+	19 amount of the average of the estimated available revenue or
	161	+	20 the fiscal year appropriation cap as required to be determined
	162	+	21 by this section.
	163	+	22 "§29-9-4.
	164	+	23 "There is hereby created in the State Treasury an
	165	+	24 Education Trust Fund Budget Stabilization Fund and an
	166	+	25 Education Trust Fund Advancement and Technology Fund. Any
	167	+	26 monetary interest which accrues in the Education Trust Fund
	168	+	27 Budget Stabilization Fund shall be retained in the fund from
	169	+	Page 6 1 year to year and shall be subject only to the provisions of
	170	+	2 this chapter. If total revenues deposited into the Education
	171	+	3 Trust Fund during the immediately preceding fiscal year exceed
	172	+	4 the fiscal year appropriation cap for the immediately
	173	+	5 preceding fiscal year, and total Education Trust Fund
	174	+	6 appropriations for the immediately preceding fiscal year are
	175	+	7 less than the fiscal year appropriation cap for the
	176	+	8 immediately preceding fiscal year, the excess revenues shall
	177	+	9 remain in the Education Trust Fund as nonrecurring revenue. On
	178	+	10 or before November 15 May 31 of each fiscal year, if the total
	179	+	11 revenues deposited into the Education Trust Fund during the
	180	+	12 immediately preceding fiscal year exceed the fiscal year
	181	+	13 appropriation cap for the immediately preceding fiscal year,
	182	+	14 and Education Trust Fund appropriations for the immediately
	183	+	15 preceding fiscal year were equal to the fiscal year
	184	+	16 appropriation cap, the excess revenues shall be transferred to
	185	+	17 the Education Trust Fund Rainy Day Account until the account
	186	+	18 has been repaid in full. If the account has been repaid in
	187	+	19 full, any excess revenues remaining shall be transferred to
	188	+	20 the Education Trust Fund Budget Stabilization Fund and the
	189	+	21 Education Trust Fund Advancement and Technology Fund created
	190	+	22 in this chapter. The transfers to the Education Trust Fund
	191	+	23 Budget Stabilization Fund and the Education Trust Fund
	192	+	24 Advancement and Technology Fund shall be made annually as
	193	+	25 follows:
	194	+	26 "(a)(1) Any excess revenues remaining for the any
	195	+	27 fiscal year ending September 30, 2015, up to two percent of
	196	+	Page 7 1 the previous year's Education Trust Fund appropriations, shall
	197	+	2 be transferred to the Education Trust Fund Budget
	198	+	3 Stabilization Fund. Thereafter, in an amount up to one percent
	199	+	4 of the previous year's Education Trust Fund appropriations
	200	+	5 shall be transferred to the Education Trust Fund Budget
	201	+	6 Stabilization Fund annually until the fund reaches seven and
	202	+	7 one-half percent of the previous year's appropriations from
	203	+	8 the Education Trust Fund.
	204	+	9 "(b)(2) Funds Revenues in excess of those
	205	+	10 transferred in subsection subdivision (a) (1) shall be
	206	+	11 transferred to the Education Trust Fund Advancement and
	207	+	12 Technology Fund each year. Amounts Any amount of the available
	208	+	13 balance in the Education Trust Fund Advancement and Technology
	209	+	14 Fund shall may be appropriated available for appropriation
	210	+	15 only by and through an independent supplemental appropriation
	211	+	16 bill for the following nonrecurring expenses: repairs or
	212	+	17 deferred maintenance of facilities for public education
	213	+	18 purposes in the state, capital outlay, for classroom
	214	+	19 instructional support as provided in Section 16-13-231(b)(2)c.
	215	+	20 and Section 16-13-231.3, for insuring facilities, for
	216	+	21 transportation as provided in Section 16-13-233, for school
	217	+	22 security measures, and for the acquisition or purchase of
	218	+	23 education technology and equipment, or both. These funds,
	219	+	24 however, shall not be used as a pledge for the issuance or
	220	+	25 payment of debt service. No funds shall be appropriated until
	221	+	26 in years when the balance of the Education Trust Fund
	222	+	27 Advancement and Technology Fund at the end of the previous
	223	+	Page 8 1 fiscal year equals or exceeds is less than ten million dollars
	224	+	2 ($10,000,000) $10 million. Amounts in the Education Trust Fund
	225	+	3 Advancement and Technology Fund shall be budgeted and allotted
	226	+	4 in accordance with Sections 41-4-80 through 41-4-96 and
	227	+	5 Sections 41-19-1 through 41-19-12, but shall not be limited by
	228	+	6 the fiscal year appropriation cap.
	229	+	7 "(c)(3) The annual appropriation of these funds
	230	+	8 shall be divided between the public schools and institutions
	231	+	9 of higher education in the state in accordance with the
	232	+	10 percentage split, based on the fiscal year in which an
	233	+	11 appropriation is made, between these two sectors of education
	234	+	12 as certified by the Legislative Services Agency, Fiscal
	235	+	13 Division, Legislative Fiscal Officer at the end of the
	236	+	14 preceding fiscal year. Public schools shall be interpreted to
	237	+	15 include any school in operation for the current fiscal year,
	238	+	16 the Alabama School of Math and Science, the Alabama School of
	239	+	17 Fine Arts, the Alabama School of Cyber Technology and
	240	+	18 Engineering, the portion of the Alabama Institute for Deaf and
	241	+	19 Blind providing appropriate elementary/secondary instruction,
	242	+	20 and may include the Department of Youth Services School
	243	+	21 District.
	244	+	22 "§29-9-6.
	245	+	23 "During the first six months of a fiscal year, the
	246	+	24 Director of Finance may temporarily transfer available funds
	247	+	25 in the Budget Stabilization Fund into the Education Trust Fund
	248	+	26 as necessary to alleviate cash flow problems in the Education
	249	+	27 Trust Fund. Any funds temporarily transferred shall be repaid
	250	+	Page 9 1 to the Budget Stabilization Fund from funds in the Education
	251	+	2 Trust Fund within 90 days following the date the funds are
	252	+	3 transferred by September 30 of the fiscal year in which the
	253	+	4 transfer was made."
	254	+	5 Section 2. This act shall become effective
	255	+	6 immediately following its passage and approval by the
	256	+	7 Governor, or its otherwise becoming law.
	257	+	Page 10